Produce a business plan for a hypothetical business you might like to establish. This should be a small
business in scale and should be of your own design. While your business may be similar to other
established businesses it must not be a franchise. For purposes of this assignment the business should
also be a physical one and not purely online.
Your business plan should contain each of the following sections. For an example plan see Chapter 16 of
the textbook “Small Business Management in the 21st Century”.
Part One: Introduction
A: Executive Summary: Create a one page summary for your plan. Appears first but is done last. This is a
very important part of your plan and should include details about marketing, finance and operations.
B: Business Philosophy / Mission Statement: Outline the philosophy of your business and its mission.
C: Product/Service Description: Describe the products and/or services you will be providing. Outline the
customer benefits and why your chosen product/services will be successful. You must also include retail
prices in this section and estimate how many units you will sell for each product on a monthly basis.
D: Self Analysis: Explain why you are a good candidate for starting up your business. Ideas to ponder:
reliability, creativity, teamwork skills, education, list special talents such as computer skills etc
Part Two: Marketing Research
E: Conduct Secondary Research in the following areas:
1) Geographic Data: Population description that tells how many people live in a certain area.
2) Demographic Data: Statistics such as age, gender, income and marital status, family size.
You will want to include the data that will have a direct impact on your business.
F: Primary Research: Explain what methods of marketing research you will be relying on such as surveys,
focus groups or both. Include a copy of your draft marketing research survey questions.
G: Competition: As a new business owner, you must analyse your competition.
1) Direct Competitors: Businesses selling similar products and services
2) Indirect Competitors: Businesses selling different products while fighting for a customer’s
disposable income.
State why/how you will do a better job than your competitors.
H: Market Segment Analysis – Target Customer: Using the secondary data collected previously, help the
reader understand exactly who your target customer is and why this customer would want to purchase
your product/service.
I: Analysis of Potential Location: Please include the following information in narrative form.
1) The location of the business (this may be a town or small city or a neighbourhood/area of a
larger city)
2) Will you rent or buy the property?
3) Are you in a mall, free standing building, home garage etc?
4) What will your hours of operation be?
5) What do the parking facilities for staff and customers look like?
6) What access to mass transit do staff and customers have?
7) Is the area safe?
8) Will you be near one or more complimentary businesses?
Part 3: Organisation and Personnel Plan
J: Ownership Choices: What type of ownership (Sole proprietorship, partnership, corporations etc) have
you selected? Why have you selected this option?
H: Personnel Needs: State who will do what and who will report to whom. Create a simple
organizational charge that will show working relationships.
J: Hiring Strategy: How will you recruit staff members? What salary and conditions do you need to
provide to attract qualified staff?
Part 4: Marketing Plan
K: Proposed Product or Service Plan: Describe your business and your products in detail.
L: Proposed Pricing Policy: Describe your pricing policy
1) Proposed markup to cover costs?
2) Relationship to competitors: below, above, the same
3) Will you do any introductory discounting to attract customers?
4) Are you going to drive profits through volume or are you going for a prestige appeal?
M: Proposed Promotional Plan:
1) Personal promotion: Who will be doing the personal selling?
2) Non-personal promotion: Overall advertising strategy and short term promotional events to
create enthusiasm.
N: Place:
1. Describe your location in detail: What will it look like?
2. Distribution Plan: How will you get your product into your customer’s hands? Will you make and
sell your products on site (direct distribution) or will you include other intermediaries such as
manufacturers or producers (indirect distribution).
Part 5: Financial Plan
O: Income Statement: Produce an income statement based on the projected sales volumes and margins
you have identified in earlier sections. This should include:
1. Gross Revenue less returns/refunds
2. Cost of goods sold
3. Operating expenses (such as rent/mortgage, utilities, taxes, insurance, salaries, advertising &
promotion)
Marking
Each item B-O is work 3 points while section A (Executive summary) is worth 8 points. Points are
allocated as follows:
Section A
• 0 Points – omitted or incorrect
• 1 point – partial response
• 4 points – complete response that adequately covers all requirements
• 8 points – excellent rich response that covers all requirements in depth
Section B-O
• 0 Points – omitted or incorrect
• 1 point – partial response
• 2 points – complete response that adequately covers all requirements
• 3 points – excellent rich response that covers all requirements in depth
Below is a Sample Paper. You Can Order a Custom Essay Written From Scratch From Our Website. Click Here to Order.
Delicious
Cuisine Business Plan
Student’s
Name
Institutional
Affiliation
Delicious
Cuisine Business Plan
Section
A: Executive Summary
Introduction
The Delicious Cuisine is a full-service restaurant located in 36th St New York. The
restaurant has a diverse menu of competitively priced food inspired by the
United States (U.S.) fast food trends. The recipes adopted are the most preferred
in urban areas across the U.S. The restaurant will be serving a wide variety of foods such as chicken, fries,
burger, sandwich, salad, pizza, lemonade, coffee, milkshakes, and soft drinks.
The business plan captures and depicts our vision and strategic focus for
review by financial institutions. It lays down the framework for the business
start-up, achieving sustainable sales volume, gross margin, and profitability.
The
Partnership
The Delicious Cuisine will be owned by two founding
partners, Chef Jill Hopkins and Mr. John Keys. The two have a close friendship
that has flourished since their youthful days. The owners are vastly
experienced in the restaurant business with
respect to management and culinary experience. Chef Jill Hopkins has a culinary
career spanning over 10 years with McDonald’s
fast-food chain as an Executive Chef. Mr.
John Keys is an experienced restaurant manager and has been a branch manager
for over 5 years with McDonald’s as well.
Each partner owns 50% of the business and profits are to be shared equally.
Product
and Services
Delicious Cuisine will offer a wide variety of fast foods
to its customers, all from high quality and fresh supplies. We put paramount
emphasis on serving only fresh foods to our customers. The service delivery by
our staff will be world class with a key focus on customer satisfaction. Our
variations will be influenced by customer preferences, our team’s innovativeness, and fast food trends in
the U.S.
The
Market
Restaurants in New York are pivotal to the city’s economy
because they play a major role in feeding the City’s ‘busy’ population. The
city’s relatively young population prefers to eat in restaurants for purposes
of convenience. The location of the restaurant at a junction where there is a bus station and a busy shopping center
presents the business with a ready customer base. The City also has a vibrant
tourism sector that also offers a considerable customer base. High-quality products, world-class customer services, and competitive pricing will be
instrumental in attracting and retaining a sustainable customer base.
Financial
Considerations
The partners hope to raise $5,000,000 of start-up capital
which will cater for the start-up costs
and run the business until it breaks even. The expected sales during
the first year of operations, 2018, are $19,858,200 and realize a profit of
approximately $7,210,133. The partners do not anticipate any cash flow
challenges.
Section
B: Mission Statement
Delicious Cuisine will offer an ambient, comfortable, and
relaxing setting whereby customers can enjoy their meals. We will offer our
customers an opportunity to relax by offering high quality and friendly
services, high-quality products, and a
convenient joint that is easily accessible. Delicious Cuisine will maintain
highly motivated and satisfied employee to ensure it can grow rapidly and
become a reputable restaurant in New York offering the best services to its
customers and still offer high returns to its founder.
Section
C: Product Description
Delicious Cuisine will be a fast food joint serving
tantalizing and delicious dishes to our customers accompanied by world class
customer service. The joint will tap on the busy New Yorkers as they catch or
alight from a bus by strategically being located at 202 West 36th St
corner 7th Ave New York where there is a busy Bus Station. High
quality and fresh fast food served by customer friendly staff in this location are bound to offer our customers the
convenience they desire as they go about their daily routine and poise the
business for success. We will offer 100% non-alcoholic drinks and fresh sauce
free of preservatives as we strive to
inspire a healthy lifestyle to our customers.
Table 1
Delicious Cuisine Menu
Item
Price
Expected
Unit Sales Per Month
Grilled
Chicken Sandwich
$4.25
18,000
Grilled
Chicken Nuggets
$4.00
20,000
Waffle
Potato Fries
$1.70
10,000
French
Fries Small
$1.30
30,000
French
Fries Medium
$1.70
40,000
French
Fries Large
$1.90
30,000
Sausage
Burrito
$1.25
25,000
Sausage
Muffin
$1.15
25,000
Chicken
Noodle Soup
$4.30
15,000
Spiced
Chicken Sandwich
$4.10
20,000
Sunflower
Multigrain Bagel
$1.55
25,000
Chocolate
Cookie
$1.15
50,000
Dasani
Bottled Water
$1.00
50,000
Coca
Cola Small
$1.38
30,000
Coca
Cola Medium
$1.58
40,000
Coca
Cola Large
$1.88
35,000
Fresh
Lemonade Small
$1.60
15,000
Fresh
Lemonade Medium
$1.85
20,000
Fresh
Lemonade Large
$2.15
15,000
Fresh
Iced Tea Sweetened Small
$1.37
15,000
Fresh
Iced Tea Sweetened Medium
$1.58
15,000
Fresh
Iced Tea Sweetened Large
$1.88
15,000
Frosted
Coffee
$2.85
20,000
Hot
Coffee
$2.10
40,000
Chocolate
Milkshake
$2.80
20,000
Strawberry
Milkshake
$2.80
20,000
Vanilla
Milkshake
$2.80
20,000
Cheese
Burger
$1.00
30,000
Bacon
Burger
$4.40
20,000
Southwest
Salad
$4.60
15,000
Bacon
Ranch Salad
$4.50
15,000
Slice
of Pepperoni Pizza
$2.50
50,000
Section
D: Self Analysis
The partners of the business are Chef Jill Hopkins (I)
and Mr. John Keys. I am a seasoned chef with 10 years of experience having
worked for McDonald’s since I obtained my
Culinary Degree from the State University of New York at Cobleskill. Over the
years, I have gained vast experience in the fast foods business and I am well
positioned to lead a team that can deliver world-class
products and services. My partner Mr. John Keys has a Culinary Management
Degree from the State University of New York and holds a Bachelor’s Degree in
Hotel Management from the New York University Stern School of Business and has
served as a manager at MacDonald’s for over 5 years. Our skills set such as
reliability, creativity, innovation, teamwork, education, market analysis,
forecasting trends and market awareness give us an added advantage as we begin
this business.
Section
E: Secondary Research
Geographic
Analysis
Delicious Cuisine seeks to meet the needs of the daily
commuters who operate around the 202 West 36th St corner 7th Ave New York bus
station, business owners, shoppers, and the workforce operating in the nearby
offices. According to National Restaurant Association (2017), restaurants play
a key role in New York’s economy and account for 4% of the U.S. Gross Domestic
Product (GDP) in sales which stand at $799 billion in 2016 and the projected
sales for 2017 were $43.3 billion. In the U.S., the fast food industry is worth
about $198.9 billion and by 2020 it’s expected to be over $223 billion
(Statista, 2017).
Demographic
Analysis
According to Hartman (2016), a national survey that
featured over 1,800 shoppers showed that millennials prefer fresh, organic and
healthy food that is prepared and portable. About 42.6% of the young American’s
in the age bracket of 25-34 years allocate the greatest percentage of their
food expenditures to eating in restaurants and those below 25 years old
allocate 44.6% of their food expenditures to eating in restaurants (The Food
Institute, 2017, pp. 37-51).
Table 2
Restaurants Food Spending
by Age Group
Age
Average Expenditure
on Food in Restaurants (US$)
Percentage of Food
Expenditures Spend in Restaurants (%)
Below 25
$4,890
48.0%
25-34
$6,636
46.7%
35-44
$8,844
44.1%
45-54
$8,406
43.9%
55-64
$6,992
39.9%
65-74
$6,214
38.8%
75+
$4,561
37.3%
Section
F: Primary Research
We will rely on surveys as our method of conducting
marketing research. According to Zikmund et al., (2013, pp. 185), surveys are
the most popular method of conducting marketing research. We will conduct surveys
using “feedback cards” that will be placed at the tables in the restaurant.
Delicious Cuisine Market Research
Survey
1
Frequency of Visits
1.1
How often do you eat your dinner at Delicious Cuisine in a week?
[ ] Once or never [
] 1-2 Times [ ] 3-4 Times [
] 5-6 Times [ ] Daily
1.2
How often do you order a takeaway meal at Delicious Cuisine in a week?
[
] Once or never [ ] 1-2 Times [
] 3-4 Times [ ] 5-6 Times
[ ] Daily
2
Price
2.1
Are our prices fair and equivalent to
the quality of our products and services?
[ ] Strongly Agree [ ] Agree [ ] No
Opinion [ ] Disagree
[ ] Strongly Disagree
3
Decision Criteria
3.1
My preference for a restaurant is
determined by:
[ ] Cooking Style [ ]
Ingredients [ ] Food Presentation [ ]
Quality of Service
[ ] Profile of Clientele
Others(specify)…………………………………………………………………….
3.2
My preferred atmosphere in a restaurant
is:
[ ]
Casual [ ] Lively
[ ] Décor [ ]
Stylish
Other)specify)………………………………………………
4
Demographics
4.1
Do you reside in New York?
[ ] Yes
[ ] No
4.2
Gender
[ ]
Male [ ]
Female [ ]
Other(specify)……………………………………..
Thank
you for participating in the survey!
Section
G: Competition
Direct
Competition
Delicious Cuisine will be in direct competition with the
Famous Amadeus Pizza located at 840 8th Ave btw 50th St.
& 51st St., Delmonico’s Kitchen located at 207 W 36th
St., and Café Del Sol. To set us apart from this direct competition, we will
offer a wide range of high-quality
products and first-class customer
service. Restaurants use competitive prices in when nearby restaurants offering
similar cuisines change their prices (De Silva, Elliott & Simmons, 2013,
pp. 55). We will design our restaurant to provide a more comfy and ambient
environment to attract customers. Additionally, the direct competition offered
by these restaurants is minimal since they are a number of blocks away from our
location.
Indirect
Competitors
The main indirect competition is posed by Pig ‘N’ Whistle
located at 202 w 36th St which is an Irish pub that also offers some
Irish Cuisines. The competition from this joint is minimal since they offer
products that are quite different from our products and they only target a
specific community, specifically, the Irish Community. Our target market is
quite larger and we offer products that are highly demanded by the greater
percentage of the population operating in the area.
Section
H: Market Segment Analysis
Target
Market
Our target market includes daily commuters, shoppers,
tourists, workers in neighboring offices, business owners, and students who use
or operate around the 202 West 36th St corner 7th Ave New York bus station. The
fast-food industry has experienced
extraordinary growth that has been propelled by fundamental changes in the
American society and now every single day in the U.S., over a quarter of the
adults purchase from a fast food restaurant (Schlosser, 2012, pp.3). The bus
station has a lot of traffic and New York in large is highly populated with
busy people and particularly young people who highly prefer fast foods because
of its convenience. Our products will be of the highest quality and will
include takeaways and deliveries to
ensure our customers who tend to lack sufficient time to catch a meal access it
readily even in their offices or workplaces. Our vast variety of fast foods and
unique recipes will attract fast-food
lovers because we will emphasis on healthy living.
Section
I: Analysis of Potential Location
The Delicious Cuisine will be located at 202 West 36th St
corner 7th Ave New York. It will be next to the bus station and adjacent to Pig
n Whistle Irish Pub. E 36th St & 7th Ave New York, NY
10018 neighborhood is has a lot of traffic since it has many offices, shopping centers, and big businesses and its
coastal setting also attracts a lot of tourists (Neighborhood Scout, 2017). We
will rent out a hall next to Pig n Whistle Irish Pub in a shopping mall. Our
hours of operation will be between 05:00 am
to 10:00 pm every day of the week. The
location of the business is convenient to our customers because it has
sufficient and secure parking space availed by the mall. Our location is next
to bus station meaning out staff and customers have access to public means of
transport by walking to the front of the restaurant. The area is relatively
secure with minimal crime rate because it is mainly inhabited by young
professionals and business owners with high incomes. We will be located next to
other complimentary business such as Pig n Whistle Irish Pub, Union Bay
Sportswear, Greenpac Corporation, Bng
International, and Melina Studio which are all frequented by customers offering
us an opportunity to tap on that readily available market.
Section
J: Ownership Choices
The ownership of the business will be a partnership. The
choice of the partnership is based on the
close relationship of the two founders, Mr. John Keys and I as we go back as
friends since our childhood days and our dream to own a thriving restaurant
business one day and hopefully a franchise in future. A partnership will allow
us to raise the necessary startup capital. It will also give us an opportunity
to combine our specialized skills, knowledge, and experience to run a thriving
restaurant offering world class services to our customers.
Section
K: Personnel Needs
Mr. John Keys will be the overall manager of Delicious
Cuisine because of his vast experience in managing fast food restaurants in the
past. He will be in charge of the business side of the restaurant and will head
the management team. He will also be in charge of service delivery and customer
relations. On the other hand, I will be in charge of the chefs and all kitchen
affairs and will be instrumental in designing innovative recipes for the
restaurant.
Section
L: Hiring Strategy
Recruitment of staff members will mainly entail bringing
together past colleagues whom we have worked with and are certain of their
quality service delivery and dedication to their roles. We will also recruit
interns from neighboring Culinary Colleges and Schools so as to ensure we cut
on employment costs.
Table 3
Delicious Cuisine
Employee Salaries
Position
Salary
General
Manager (Partner)
$40,0000
Executive
Chef (Partner)
$40,0000
Assistant
Chef
$22,0000
Line
Cook
$18,000
Assistant
Manager
$15,000+Tips
4
Servers
$3/hr+Tips
Dishwasher
$6/hr
Section
M: Proposed Product or Service Plan
Delicious Cuisine will offer fresh and high-quality chicken, fries, coffee, fresh
juice, lemonade, burgers, pizzas, nuggets, and sausages in New York. We will
offer a variation of these products ensuring we serve the most sought after
products in the New York. We will be innovative and come up with new product
lines and variations regularly to ensure we maintain a competitive edge over
our competitors and are up to date with fast food trends in the City.
Section
N: Proposed Pricing Policy
The pricing policy for Delicious Cuisine will be competitive
pricing that gives the restaurant an upper hand over neighboring restaurants
and still realizes profits without compromising on the quality of products to
guarantee our consumers the greatest utility. Our markup pricing to ensure the business can
cover costs will be 40%. Competitive pricing can help a business achieve higher
sales volumes and gain favorable market share at the expense of its competitors
(Enz, Canina, & Lomanno, 2009, pp. 334). We target to have frequent repeat
customers and yet still ensure they get a new unique and exciting experience
every time they visit. Our prices will be lower than those of our competitors
yet offer highest quality products possible. During the first month after
opening, we will offer introductory discounts to attract customers because our
business will be based on driving profits through volume sales.
Section
O: Proposed Promotional Plan
Promotional activities can help a business to explain its
existence and sustain a healthy, positive relationship with its customers
(Novak, 2011, pp. 24). We will strive to promote our brand and business more
than our products because the reputation of a brand influences the demand for products. The brand and business will be
promoted through brand integrity, unique and amazing menu list, world class
customer service, and the ambient
environment. We will promote our business mainly through social media platforms
such as Facebook, Twitter, Snapchat, and Instagram.
Section
P: Place
Delicious Cuisine will be designed to reflect the
founders’ emphasis on detail that captures cuisine, design, mood, and settings. The restaurant will be
ultra-modern in its design with elegant yet simple décor that gives an exciting
feeling. The dining room will have a capacity of 40 tables and there is a
private room for 20 guests.
Section
Q: Income Statement
Table 4
Projected income for
the year 2018
2018
Sales
$19,858,200
Direct
Cost of Sales
$8,825,100
Gross Margin
$11,033,100
Expenses
Payroll
$1,723,680
Sales
& Marketing & Related expenses
$80,000
Depreciation
$14,000
Utilities
$30,000
Insurance
$25,000
Payroll
Taxes
$100,000
Other
Taxes
$20,000
Miscellaneous
$10,000
Total Operating Expenses
$2,002,680
Profit Before
Interest and Taxes
$9,030,420
EBITDA
$9,130,420
Interest
Expense
$45,0000
Tax
for the year
$1,820,286
Net Profit
$7,210,133
References
De Silva, D.,
Elliott, C., & Simmons, R. (2013). Restaurant wars: spatial competition in
UK restaurants.
Enz, C. A.,
Canina, L., & Lomanno, M. (2009). Competitive pricing decisions in
uncertain times. Cornell
Hospitality Quarterly, 50(3), 325-341.
Hartman, L.
(2016). What The New Food Demographics Mean for Food and Beverage. Food
Processing. Retrieved 16 January
2018, from https://www.foodprocessing.com/articles/2016/new-food-demographics/?show=all
National
Restaurants Association. (2016). New York: Restaurant Industry at a
Glance. New York. Retrieved
from http://www.restaurant.org/Downloads/PDFs/State- Statistics/2016/NY_Restaurants2016
Neighborhood
Scout. (2017). E 36th St & 1st Ave New York, NY 10016, Neighborhood
Profile – NeighborhoodScout. Neighborhoodscout.com.
Retrieved 16 January 2018, from https://www.neighborhoodscout.com/ny/new-york/36th-st
Novak, D.
(2011). Promotion as instrument of marketing mix. In International
Symposium Engineering
Management and Competitiveness (pp. 24-25).
Schlosser, E.
(2012). Fast food nation: The dark side of the all-American meal.
Houghton Mifflin Harcourt.
Statista.
(2017). Fast food industry. www.statista.com. Retrieved
16 January 2018, from https://www.statista.com/topics/863/fast-food/
The Food
Institute. (2017). Demographics of Consumer Food Spending (2017
Edition). Retrieved from https://foodinstitute.com/catalog_files/products/Demo2017Sample.pdf
Zikmund, W. G.,
Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research
methods. Cengage Learning.
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