Keywords: nature of restaurant industry, business proposal example
1.0 EXECUTIVE SUMMARY
This business plan report summarise the nature of our business, the advertising and sales strategy, the monetary background, projected cash flow and income statement. Nevertheless it shows our current position and where we want to be in the future and how we have planned to get there through excellent management. It lays out the route for the future our business and set up standards of success. Hence the business plan will help us in acquiring capital from investors / lenders such financial institutions as they will have clear understanding of the business and willing to invest if the business proposal is persuasive.
Our business proposal is setting up a halal restaurant in Treforest whereby the restaurant will cater healthy meals prepared in Islamic rites. The restaurant will provide a combination of wide varieties of food with excellence in value pricing, fun packaging and atmosphere. In Treforest there are numerous halal takeaways thus this will give us competitive advantage as there is no halal restaurants within the area. Our main target customers are Muslims who are minority from all over the world, who will be easily attracted to a place where they will be enjoying their meals prepared according to their Islamic rites in comfortable environment. Nevertheless despite the fact the food being prepared in Islamic rites, we intend to target majority of the students and the local people as the food offered will be healthy diet and it will cater their needs such as their busy lifestyles.
Our mission is to provide high quality food which adheres to Islamic rites and to provide products which are better, safe and hygienic. Morever we aim to promote customer satisfaction through feedbacks, review of menu and creating friendly relationship with customers.
Halal restaurant will be a privately held company and registered as a Limited private company, with three shareholders with equal number of shares. The restaurant will be a rented property. Six staffs shall be employed who will include two chefs, two waiters and two kitchen porters. As we the shareholders will also be accountable for managerial tasks of the halal restaurant.
Halal industry is growing and expanding at a high rate because of migration of more people into UK specifically in Wales, and we want to have our own shares in Halal food industry. The reason of setting up a halal restaurant in Trefforest is, first there is low degree of halal restaurants within the area as majority are fast foods and takeaways. Thus this will give us a competitive advantage as competition within restaurants will be low. Moreover the restaurant will cater healthy meals and it since the location of the restaurant will be in treforest majority of customers will prefer dining out in our restaurant rather than travelling to Cardiff as they will save their time and money used on transport.
The key to be successful in our restaurant, we will create a unique and innovative atmosphere of dining which will be different from competitors and offer a great fastest service and high quality of food. The employees would be motivated so they can work in comfortable environment and different programs would be enhanced so as to assemble devoted workforce. Furthermore we will focus on cost control so as to meet profit margin by managing bank deposit, accounts payable, issuing inventory, cash receipts, purchasing, order taking, and service preparation. This will help us to track actual expenditure aligned with our forecasts in managing the halal restaurant. Moreover customer satisfaction would be our prominent factor for the success of halal restaurant. This will be done thorough frequent and friendly interaction with customers so as to know their particular needs.
Our restaurant would encourage the two most important values in restaurant business which is brand and image, as these two ingredients are a couple of main drivers in marketing communications
2.0 BUSINESS OBJECTIVES AND STRATEGY
Our halal restaurant objectives for the first year of inception are to make the company’s name as household name, build a solid reputation so as to establish successful halal restaurant and gain a market share in Halal food industry in Wales. We also want to make halal restaurant as the favourite choice for the Muslim people and the rest of the community. We also intend to expand into a number of outlets depending on how the business will operate, through franchising to other cities, such as Liverpool, Manchester and London so as to increase customer base. Nevertheless our main business financial plan is to have sufficient monetary funds to run our restaurant for a maximum of two and a half years without deeping to our profit. This will help us as in the 3rd year in repaying the loan as the profit accumulated will have an interest margin.
Prior to our earlier research we have noted that for us to attain an excellent profit margin for the two and half years that we have earlier mentioned some of the restaurant items such as kitchen refrigerators cookers and any item that maybe of extravagant purchase would be leased. This will enable us to reduce potential costs. Nevertheless we will have a useful administrating system and basic accounting information that will keep update records of each month sales so as to track the profit and loss through out the year.
In order for us to increase our customer base we plan to advertise our business through posters, fliers, mosque, internet in order to uphold customer satisfaction and later through media. With initial launching and advertisement of job opportunities within the halal restaurant, this will help us to advertise more our business as the spread of the new halal restaurant will make people eager to know what kind of services and product that will be offered. Our main goal is to be one of the most successful Halal restaurants in UK, we will strive to be a premier Halal Restaurant brand in the local marketplace. We want our customers to be satisfied when visiting restaurant and website as well as to work on their feedback seriously.
Halal restaurant belongs to the Halal industry which is growing and expanding at a high rate. Many multinational companies are now investing in this industry and there are many others planning to enter the industry. It is widely reported that demand for Halal products is on the increase amongst Britain’s estimated 3 millions Muslims, 95% of which claim to be Halal consumers. The Halal Food Authority estimates that the UK market for Halal food grew 30% in 2006, even though the Muslim population grew just 3% according to Mintel report. Across Europe, where the Muslim population has grown by more than 140% in the last decade, there is a similar picture with 2nd and 3rd generation European Muslims are seeking out convenience and looking for products such as Halal pizzas, lasagne and hot dogs. Estimates can be different, but the organisers of London’s World Food Market exhibition estimate the UK Halal market to be worth £2.8 billion.
3. 0 PRODUCT AND CUSTOMER ANALYSIS.
As earlier mentioned the menu products served in the restaurant will be halal prepared according to Islamic rites. The halal food range from frozen food, ready made meals, canned food, beverages, packed meat, baked goods, dry goods (food ingredients), condiments and snacks (Halal Products, 2010). These products will be used in a halal way to prepare meals. Example of such menus include Chicken Tikka Masala with Rice served with Broccoli and sweet corn and the dessert of Fruit salad yoghurt. However a detailed research would be conducted so as to know the favourite healthy dishes for Muslims. With awareness of reducing obesity and increased healthy eating, such menu people will be attracted to buy a meal as it is healthy and balanced diet as it has all the nutrients need for the body and it has less fat. In as much as the Muslim community will benefit from the healthy meal as it will be prepared and based in their Islamic approach. Furthermore most Muslims will increase their social interaction when having a meal in our restaurant as they will have a more comfortable environment to interact.
Our major target segments customers in Treforest are Muslims who are minority in the area. In the University of Glamorgan the ethnic groups of Asians which include Indian, Pakistan, Bangladeshi, Malaysia and other Asian background account to 5.6% while whites are the majority who account to 82.03%. The blacks and other black background account to 2.8% and other ethnic back ground is 4.2%. Despite of our first priority customers being muslims students, our second target customers are other students from different backgrounds. Halal food is well eaten not only by Muslims but by other nationalities, thus most of the other students will be attracted to buy meals from our restaurant as majority of them do not have sufficient time to prepare a meal due to studying all day long and most of them have passion of trying different kinds of food. Moreover in occasions such as birthdays and graduation ceremonies we will have numerous customers as many of the students and their families will come to our restaurant to celebrate their achievement by purchasing meals. Thereby in such occasions, deals will be promoted so as attract as many customers during such occasions. Our third target customers are the local people within the area such as professionals, families; singles and couples. Due to the busier lifestyles most of them do not have enough time to prepare a meal at home. Most families partners do work full time thus dining out is alternative to home cooking meals.
Our estimate population within treforest is around 30,000 and the percentage of Muslims is around 2.3% including students. This estimate was based on 2006 statistics which showed the total population in treforest was 25,000 and the of which the Muslims accounts to 1.87%. (Rhondda Cynon Report, 2006). Thus the population has grown by 20% to date.
Hence our restaurant will cater their needs by providing good quality food and ensure good customer service has been provided throughout. We will have potential customers from these groups as most of them do prefer to dine out as a luxury treat to their families and themselves. Nevertheless a market plan of survey would be carried out so as to know if our business idea is being welcomed within the area.
3.1 COMPETITORS PROFILE
However our halal restaurant will face competition within the area as the latter is occupied with halal take aways, pubs, Chinese takeaways and sandwich shops. In those halal takeaways most of the food is halal and they do have affordable deals whereby most of the students are attracted to purchase them. Nevertheless in pubs they do serve most of halal dishes such curries, hence there is high probability most of customers to switch to pub menus.
3.2 UNIQUE SELLING POINT
In order to compete with our competitors we have set a unique selling proposition which will set us unique from the market. One of the USP that will entice our customer is, the halal restaurant will offer innovative and fastest service to the customer by putting a time limit guarantee for their meal. This will be done by reducing the steps of getting meals to customers. Moreover customers will have opportunity to evaluate food choices so as to keep the favourites on the menus and frequent interacting with the customers will be enhanced so they feel their feedbacks are being valued.
3.3 PRICING STRATEGIES
3.4 MARKET SHARE
Majority of the time due to the busier lifestyle of the students and the local people most of them prefer to eat out rather than cook because they don’t have time. Based from UK statistics our market share noting we will capture the majority of the Muslims because we will be providing Halal food which is being prepared in accordance to Islamic belief. Nevertheless we have a market share of majority of local people as most of the halal food is healthy and balanced
Market share within restaurant industry.
|Market share (%) before||Market share (%) (after)||In £|
|Quick service (eat-in)||21.6||20.8||91.2|
|Traditional Asian &||13||11||48.2|
Wales GDP – per capita purchasing power parity – $22,800 per annum per week $438.46
Incomplete more elaboration on purchasing capability of a single person.
Initial maximum market share
Total purchasing power(expenditure) of the targeted market
Number of competitor +1 (own business)
438.46 = 73.08
Remember to include the initial market share 9%.
3.5 MARKET TRENDS.
In treforest the population is mostly populated with students so the market trend will be very much be affected by the term time of the university. This means that when the university is opened the sales are high and when the university closes the sales are expected to be low this is because local students tend to travel and some foreigners. However most foreigners’ students they tend to remain in the university closes as most of them prefer working full time; hence this will have an impact in our\restaurant as sales will tend to be stable.
Nevertheless due to awareness of eating healthy diet and busier lifestyles, majority of people will prefer to eat out rather than cooking at home as it save time. This will have an impact in our restaurant as there will be frequent constant flow of customers who their needs will cater for. Thus as our initial market share estimated to 9% we expect growth of market share within the period of 6 to 12 months to be 16.7%.
3.6 SWOT ANALYSIS OF HALAL RESTAURANT
- Availability of Muslim students who prefer halal food due to their Islamic belief.
- Busier lifestyles’ of local people and students who do not have sufficient time to prepare a meal at home.
- British people who are majority in the area are very experimental to different type of food thus our restaurant will cater their needs.
- A lot of monetary funds required to set up the halal restaurant.
- Fluctuation of sales when majority of students are on holidays.
- The long term objective of franchising thorough Wales so as to reach broader market.
- Our restaurant does offer healthy meals thus majority of people will be attracted to buy our meals.
- Within the area there is high competition as there are many competitors such as pubs, Chinese takeaways, halal takeaways, Indian restaurants who offer some of halal meals with affordable deals.
- Implementation of legislations such National Minimum Wage and Tipping legislation which require employers to comply with NMW of £5.90 and paying more in National contributions so as to back up Tipping Legislation. This will increase costs in the restaurant business.
The operational plan of our establishment will take care of matters such as Human resources, location, restaurant hours, suppliers, advertising strategy, registration and certification of the business along with other requirements The operational plan will also be shedding some light on ways of creating a strategic work plan that will formulate ways to achieve targets in the most reasonable amount of time
4.1 HUMAN RESOURCES
We will be hiring two chef’s one sous chef and a commis chef a kitchen porter and last but not the least two plate waiting staff. While recruiting these staff we will be looking for somebody with a reasonable catering industry experience except for the sous chef who has to have a good experience of working at the same designation.
We will be managing the place ourselves with our previous catering, restaurant and hospitality industry experience and our HACCP and food safety qualifications we will be supervising the restaurant and the staff making sure that the customers are satisfied and content by handling all feedbacks and queries promptly and efficiently making sure that the daily book balancing runs smoothly and accurately costing of all the meals, creating promotional deals and strategies for the restaurant dealing with the suppliers and last but not the least running the restaurant according to the hygienic standards of the local authorities.
We will be hiring a sous chef who must have at least 3 years of sous chef experience and be able to prepare dishes under pressure and should be able to work on his own initiative. We would be paying him £19k-£21k depending on his experience his main jobs would be:
- Creating menus
- Preparing and supervising all our main dishes
- Taking care of the stock and stock taking
- Make sure that all the heavy equipment is used in a safe way
- Cleaning all the heavy cooking machinery grinders etc.
- Making sure that the temperature records are up-to-date and hence the food served is hygienically safe.
We will be hiring an enthusiastic commis chef who would be a fresh graduate and should have some experience in cooking, should have a can do attitude and willing to learn. we would be paying him £11k-£13k depending on the experience. His duties would be:
- Pastries and vegetable sauces preparation
- Salad preparation
- Assisting the sous chef in preparing the main meals
- Assisting the chef in stock taking
- Receiving and making sure that the deliveries are the same as invoiced and that their temperature at the delivery time was safe
- Cleaning the kitchen equipment after use
- Making sure that the kitchen is slip and trip free.
We will be hiring a kitchen porter with some experience and we will be paying him £5.80 and his duties will be as follows:
- Washing dishes
- Cleaning the kitchen
- Receiving the deliveries and making sure they are fine and at a safe temperature
- Helping the chef in all other ad hoc duties
We will be hiring two plate waiting staff with at least 1 year of experience, they should be customer friendly, polite and outgoing since they are going to be the first point of contact for all our customers. We will be paying them £6 an hour their main duties would be:
- Meeting and greeting customers showing them to the tables
- Take orders
- Take food to and from the table
- Making sure that the customers are satisfied with their meal by asking them
- Be proactive and offer them with extra desserts and drinks
4. REGISTERING THE BUSINESS
In the Rhonda-Cynon-Taff council where we are intending to open our restaurant we have to register our business with the local authority 28 days before starting the business. We may also be required to get approval from the council due to our use of products of animal origin which in our case would be meat, fish, milk, eggs and any of their by-products and products made from them.
In order to obtain the approval we need to submit an application form to the food team at the council along with a site plan that should reflect the layout of the premises accurately and an evidence of the food safety management systems on HACCP (hazard analysis and critical control point) principles (Food Business, 2010)
On receipt of this application the local authority will arrange a site visit which is equivalent to a food premises inspection. During the inspection if all the requirements for the approval have been met, our premises will be issued with a unique three digit approval number which is part of a standard identification mark and will be used for all documentation.
To register the business for VAT payments the law requires that the turnover of the VAT taxable goods and services supplied for the previous 12 months should be over £68,000 and if it is below that amount then the business could still be registered for VAT voluntarily, and in our case this is what we will be doing we will be registering for VAT voluntarily because in future when the value of the taxable goods and supplies goes above £68,000 and somehow we get busy and forget to register for VAT, we might get charged a penalty. And not just that there are benefits as well for voluntary registration.
We will be registering for VAT online which would be the most convenient way for us in order to do that we will need to register with the HMRC online services first and then we will need to fill in two forms called VAT1 & VAT2 with all our business details (HM Revenue and Custom, 2010).
In our restaurant we will be serving at different times to cater for people from different walks of life in the morning we will be serving a buffet style breakfast to cater for the students and for the people on the way to work, lunch and dinner for the students and general public and for the people who want to have a great time. Our serving hours are going to be
BREAKFAST………..08:00am till 11:00am
LUNCH………………..12:00pm till 03:00pm
DINNER……………….07:00pm till 10:00pm
We have been in contact with different suppliers for our raw materials, crockery silverware, heavy equipment and all the other items that are required for opening a new restaurant. While reviewing these suppliers we need to make sure that the suppliers are of good reputation and hence provide good quality products while not making a huge dent on the business account
We will be ordering our raw halal meat, spices, confectionary and all cooking items from a company called 3663.
We will be ordering our fresh dairy products from a company called fresh fayre.
Our disposable take away containers and the cleaning equipment that includes dishwashing liquid, bleaches sanitizersn degreasers and all kind of other cleaning equipment will be ordered from a company called BUNZL.
Our used oil will be collected by a company called ARROW OIL COLLECTIONS but we have to put the request through our supplier which would be 3663 because they have this condition that they only collect oil if its bought through a certified oil seller.
All our heavy equipment which is our fridges, freezers, fryers, furniture and any other heavy equipment for the restaurant and kitchen will be ordered through a company called LOCK HART on lease as long as we make an order above a £1000 worth.
All these suppliers have been carefully chosen considering their quality, reliability and prices.
ADVERTISING AND PROMOTION
Effective advertising and promotion is a vital supplement for any business and specially if the business is a newborn baby like ours
We will be doing our advertisement through print media avoiding broadcasting it on TV since it does not fulfil our requirement for promoting our restaurant and its really dear as well instead we will be using brochures, posters, flyers and leaflets and specially handing out leaflets outside the university and in the surrounding area and specially outside the mosque.
The halal certification required for the restaurant is going to be provided by the supplier the slaughter house from where the supplier acquires meat is inspected by the halal council and if all the necessary requirements are fulfilled and if the animal is slaughtered in a sharia way then the supplier is given a certificate which proves that the meat is halal and gives the authority to pass on that certificate to its customers and in this case the customer would be us and we will have the right to display that certificate.
All the staff handling the open high risk food are required to have training certificates of handling high risk food and at least one member of staff is required to have adequate knowledge of the HACCP(hazard analysis and critical control point)/ food safety management systems.