TABLE OF CONTENTS
Executive Summary
Mission
Keys to Success
Objectives
Company Summary
The Menu
The Management
Company Ownership
Start-up Summary
Location & Operations
Restaurant Location
Restaurant Design
Operating Criteria
Services
Classic’s Menus
Market Analysis Summary
Market Segmentation
Target Market Segment Strategy
Service Business Analysis
Competition and Buying Patterns
Strategy and Implementation Summary
Competitive Edge
Market Analysis Conclusion:
Marketing Strategy
Marketing Program
Sales Strategy
Sales Forecast
Web Plan Summary
Personnel Plan
Financial Plan
Important Assumptions
Risk Analysis/Mitigation
Profit and Loss Statement
Break-even Analysis
Cash Flow Statement
Balance Sheet Statement
Expansion, Payback & Exit Strategy
Executive Summary
This food restaurant business plan, is a candid disclosure of a business venture to be situated in Nsukka, Enugu State.
Our intent is to set realistic business expectations, and eliminate any
questions about the profitability of this business venture.
Entrepreneurs
have a tendency to paint the restaurant business plan with a very
optimistic brush, highlighting strengths and camouflaging the risks. Our
intent is to have a definitive business, financial, and marketing plan
that not only serves our need for capital financing, but is utilized as
our daily business roadmap. We have taken all precautions to validate
our business and financial models, focusing on realistic projections. We
have accomplished this as follows:
1. Our financial model is rooted in industry facts, not optimism. We
have based costs on a vast industry and practical research with similar
ventures, validation against National Hospitality Industry cost
averages, and analysis against local Nsukka market averages. We have
taken a collective look at all figures to make solid business estimates.
2. Our business concept was derived from detailed Market Analyses. Instead of
building a business around a preconceived concept, we analyzed the
market findings and built a concept around our consumers. In other
words, our business is built to service an unmet consumer 'want'.
3. A buffered financial plan that ensures adequate capitalization. A
contingency buffer is included in the start-up cost to ensure the
business in not under financed, as well as giving the business adequate
funding to sustain it in the first six months of start-up. Industry
experts confirm a longer ramp-up stage for restaurants over other
retail/service businesses. A common mistake for new entrepreneurs, but
fully addressed in this business plan.
4. A solid Risk Mitigation Plan. We
have evaluated traditional and non-traditional risks associated with
Restaurant failure and accounted for them directly in the business plan.
Instead of dismissing the risks, we have identified valid mitigation
strategies for each.
5. Deep Management Experience. Our management team has 20 years combined experience, and deep involvement with the Nsukka restaurant industry.
The
total capital requirement to launch Classic Restaurant & Lounge is
N7, 400, 000.00 of which N6, 430, 000.00 is allocated to start-up
capital, and N970, 000.00 as business operations cash reserve.
Mission
· Classic will
be an inspiring restaurant, combining an eclectic atmosphere with
excellent and interesting food. The mission is to have not only a great
food selection, but also efficient and superior service - customer
satisfaction is our paramount objective. Classic will be the restaurant
of choice for a mature and adult crowd, couples and singles, young and
old, male or female.
· Employee
welfare, participation, and training are equally important to our
success. Everyone is treated fairly and with the utmost respect. Our
employees will feel a part of the success of Classic Restaurant &
Lounge.
· Our
concept combines variety, ambiance, entertainment and a superior staff
to create a sense of 'place' in order to reach our goal of overall value
in the dining/entertainment experience. We offer fair profits for the owners and investors, and a rewarding place to work for the employees.
Keys to Success
1. Unique, Innovative & Contemporary: The
creation of a unique and innovative fine dining atmosphere will
differentiate us from the competition. The restaurant will stand out
from the other restaurants in the area because of the unique design and
decor. We will offer a fine dining experience in an electric atmosphere.
2. Product quality: great food, great service and atmosphere.
3. ‘Spice of Life' Menu: The menu will appeal to a wide and varied clientele. Our eclectic menu features regional specialties around the country.
4. Employee Retention Focus: Employee
retention and development programs will be a primary focus and success
platform for this business. Through these programs, we will be able to
draw seasoned and elite professionals and build a committed work force.
We have budgeted for a stock option program for Chef and Management
positions to subsidize a lower salary base. This lowers our immediate
overhead and attracts quality staff.
5. Cost Control Focus: We
will control costs at all times, without exception. Cost Control will
be an integrated function of the restaurant from the onset. Cost control
is about managing the numbers - interpreting and comparing the numbers
that impact the bottom line. 80 percent of the success of a restaurant
is determined before it opens. Our focus is to reduce the cost of goods
sold to meet our profit margin goals by managing the following crucial
elements of cost: Purchasing, Receiving, Storage, Issuing Inventory,
Rough Preparation, Service Preparation, Portioning, Order Taking, Cash
Receipts, Bank Deposits and Accounts Payable. We will use of this
restaurant food business plan to track actual costs against our
forecasts in managing the business.
Due
to intense competition, restaurateurs must look for ways to
differentiate their business to achieve and maintain a competitive
advantage. Midtown/Downtown Nsukka’s redevelopment requires a place that
will fit into the 'new look' of the community, one that is contemporary
and entertaining. Classic will fill that niche.
Objectives
Classic Restaurant & Lounge's objectives for the first three years of operation include:
· Keeping food costs at less than 35% of revenue.
· Improving
our Gross Margin from 65.41% in Year 1 to 67.10 in Year 2. These are
attainable targets; our ‘stretch' is to attain
70.73% by Year 3.
· Keeping employee labor cost between 37-39% of total sales.
· Remaining a small, unique restaurant with eclectic food and service.
· Averaging sales between N1, 200,000 - 1, 500, 000 per year.
· Promoting and expanding the Classic restaurant concept as a unique Midtown destination restaurant.
· Expanding our marketing and advertising in Nsukka to increase our customer base, since there is a large university community.
· Achieving a profitable investment return for investors for Years 2 - 6.
Company Summary
The Design
Classic Restaurant & Lounge is unique to Midtown Nsukka. The restaurant features 2 venues in one (a concept called ‘Multi-Branding'):
A Lounge, and Full Service Dining. This concept offers customers
variety, offering multiple dining and entertainment options within a
single establishment. The spatial and menu divisions will broaden our
appeal and provide our customers with a different experience on each
visit.
The atmosphere caters to a young but mature adult crowd. This is not a
family dining establishment. Total space requirements are 3,000 square
feet. In total, the restaurant will provide seating for 110 patrons.
Where possible, consideration will be given to incorporate a dining
patio. Parking and accessibility issues will be reviewed as key
criteria. We will draw on our Advisory Board as part of the site
selection and lease negotiation.
The Menu
Classic
is focused on servicing Nsukka's growing demand for an electrifying
eating experience. For lack of a better term we are launching a
‘multi-ethnic' cuisine restaurant - a restaurant concept that responds
to Nsukka's need for selection and choice. Classic is a complimentary mingling of national cuisine on a single menu. The Midtown demographics fit this concept perfectly.
The Management
Our
management team has over 20 years combined experience in food,
restaurant and hotel, business management, finance, and marketing
arenas.
Company Ownership
The restaurant will start out as a private Limited Liability Company, owned by its founders, _________ and __________.
Start-up Summary
We are currently negotiating a restaurant space of 3,000 sq. ft. in Midtown Nsukka, Enugu State, and will open Classic in December of this year.
Our
start-up costs are mostly expensed equipment, furniture, painting,
reconstruction, rent, start-up labor, and legal and consulting costs
associated with opening our restaurant. At the start of business,
$97,000 will be allocated for business operations reserve. This is a
solid start-up forecast based on our market analysis.
We will purchase the following $73,311 worth of current assets during start-up:
· Fixtures and Lighting: $32,250
· Lounge and Dinning Equipment: $26,183
· Sound and Televisions: $8,378
· Office Equipment (2 Computers, Fax, Printer, Safe): $6,500
Long-term Assets in the amount of $65,000 include all kitchen equipment.
We
have budgeted for the services of a premier Restaurant Consultant
familiar with the South-Eastern Market. This is especially key during
the site selection and start-up stage. This company will have an
integral role in validating the final restaurant location and personnel
selection, and participate on the Classic Advisory Board.
Location & Operations
Restaurant Location
Midtown Nsukka is the location selected for the Classic
concept. The outlook for the future of Nsukka's Midtown district is
exceptionally positive and the most progressive development area in the
city. Developers are infusing over 500 million in Commercial,
Residential, and Retail development.
The
market has been carefully selected and tested for the necessary
demographics and retail traffic necessary to meet the goals laid down
for profitability. The busy Midtown commercial/residential location has
been chosen based upon a successful demographic model and a traffic
count of more than 33,000 cars daily.
Restaurant Design
Single-Level Design Concept: The total
space requirement is 3,000 square feet. The restaurant will feature a
comfortable and open concept design. The central dining area will
allocate 88 seats, and the lounge 22 seats. In total, the restaurant
will provide seating for 110 patrons. Where possible, consideration will
be given to incorporate a dining patio. Parking and accessibility
issues will be reviewed as part of this analysis.
Optional Patio: During
the busy summer months customers can also sit outside on our patio and
we will offer a special summer menu, featuring lighter fare, exotic
drinks, as well as non-alcoholic offerings. The patio setting will be a
fun and casual atmosphere for the summer crowd.
Operating Criteria
The
restaurant will be located in Midtown Nsukka. The restaurant will
service brunch, dinner, and after-hours dining during the week and
weekends. The restaurant will operate during peak service time to take
advantage of street traffic, and after-hour patronage from the
entertainment facilities in the area. Service will be available during
the following hours:
Lunch: Monday to Saturday, 9 a.m. - 2:30 p.m.
Dinner: Monday to Saturday, 5:30 p.m. – 8:00pm
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