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buy custom Bedford Restaurant essay For any business entity to succeed in the marketplace, then it should have a feasible business plan. The availability of a business plan enables the owner or owners of the business to ascertain what is needed, what should be done and what is expected. It is through the business plan that entrepreneurs can be able to get funding for the various projects they wish to undertake. It is with this view in mind that Sattam Al Nazi opted to come up with a business plan for the establishment of a restaurant in BedfordCity. 1.0 Executive Summary 1.1 Description of the Company/Background Bedford Restaurant is a fast food restaurant based in BedfordCity, the United Kingdom. The restaurant serves European, Asian and British food, as well special meals, such as seafood and shrimp sandwiches. In addition, the restaurant provides home delivery services whenever special orders are placed by its customers. The food and catering industry has become one of the fastest growing sectors of the economy, and Bedford restaurant intends to capitalize on the industrys success by taking advantage of the catering opportunities in BedfordCity. The restaurant also features a coffee house with a dessert bar and a special section for live musical performances. The restaurant will be owned and operated by Mr. Sattam Al Anazi, a food and beverage expert who has extensive experience in managing various catering and recreational facilities. 1.2 Mission Statement The mission of Bedford Restaurant is to become the best restaurant in BedfordCity by offering delicious and healthy dishes at affordable prices. The restaurant is committed to building long-term relations with its clients through customer support and being recognized as the best destination in BedfordCity in terms of affordability. The major goal of the restaurant is to grow steadily and become profitable by the end of the second year of its operation. 1.3 Financial Forecast It is expected that by providing services on a full-time basis, Bedford Restaurant will be able to increase its client base from 200 to at least 700 in the first year, to 1500 in the second year and to 3000 in the third year. In order to achieve this growth, the management of the restaurant has identified three public relations firms which are known for employing the best advertising strategies of attracting customers. Having a high number of customers will allow the restaurant to cover ongoing expenditure and attain a modest profit. By the second year of the restaurants operation, after-tax profit should be able to reach 350,000 Pounds and increase to 450,000 pounds in the third year (Fullen 2004). 1.4 Sources of Finance Sattam Al Anazi, the owner of the restaurant, plans to use some of the proceeds from other business enterprises to invest in this catering establishment. In addition, the owner will invest another 50,000 pounds which will come from a bank loan that has already been used for the expansion and stocking up on the inventory for the restaurant. Sattam will also borrow 100,000 Pounds from friends and relatives to ensure that the business operates efficiently. The major purpose of this business plan is, therefore, to assure the investors of high profitability of the business and the owners ability to pay off the loans. 2.0 The Key Management Team and Key Personnel at Bedford Restaurant Sattam Al Anazi will be the President and Chief Executive Officer at Bedford Restaurant. The owner holds a Bachelors degree in Food and Beverage Management, and thus possesses skills necessary for the business to be managed well. Sattam Al Anazi has also managed various restaurants and other food establishments in the United Kingdom. Furthermore, he has received a post-graduate diploma in Business Management, which will ensure that the CEOs management skills are well-sharpened. Kim Joe will be the Vice President of the Sales and Marketing Department. Before being invited to join Bedford Restaurant, Kim was working as a marketer for a major food and beverage company in London. Kim holds a bachelors degree in Commerce, Sales and Marketing Option from MakerereUniversity in Uganda. Kims responsibilities will include, among others, directly campaigning and marketing the restaurant, as well as handling all sales-related matters. Bready Richard will be the restaurants Front Office Operator responsible for ensuring the comfort of the hotels clients. Having served as a Customer Care attendant in two of New Yorks major restaurants for 20 years, Richard will be a great asset to the business venture. Mr. Richards expertise in the area of customer care will entice many customers into becoming repeat customers. Pak, Jae is a business consultant whose services will be required on a day-to-day basis. Having worked for many businesses in the hotel industry, Paks guidance and knowledge will be invaluable for the restaurants expansion and continued profitability. Pak holds a PhD from ManchesterUniversity in England. 2.1 Business Objectives/ Business Idea The aim of Bedford Restaurant is to be the best provider of British, European, Asian and Halal meals to its BedfordCity clients and other visitors from all over the world. The restaurant will also specialize in selling sea food and shrimp sandwiches to its potential customers. Apart from this, the restaurant has the following objectives: To have sales that will approach and surpass the 2 million Pounds mark by the end of the first year of its operation. To maintain a net profit of about 16% by the end of the second year. To increase the businesss monthly sales to %u20A4200,000 by the end of the fifth month of operation and to %u20A4270,000 per month by the end of the first year of operation. 2.2 Overview of the Marketplace Despite the fact that the restaurant industry has of late become very competitive, the changes in lifestyle have continued to fuel the industrys steady growth. It is a fact that increasingly more people lack the time, ability and resources to cook meals for themselves. It is such trends that will make Bedford restaurant become better positioned to cater for the current interests at moderately low prices, while offering its clients healthier foods (Garvey, et al 2011). The food service business is known to be the third largest in the country, accounting for approximately %u20A440 billion in annual sales. It is approximated that an average British citizen spends 15% of his/her income on meals which are eaten out. This will provide a good opportunity for Bedford Restaurant to cater for the needs of such individuals through provision of quality and special meals. For the past seven years, this number has continued to grow gradually due to an increase in the variety of food products. Both long-term and short-term predictions have been positive, because as modern living necessitates more demands, most individuals will be forced to take their meals away from home, possibly in restaurants. Findings released by the National Restaurant Association also indicated that consumers will probably spend a larger portion of their food budget away from the comfort of their homes, and that an independent entrepreneur, such as Bedford City Restaurant, will become the major source of concepts in new restaurants. Furthermore, the report indicated that much importance will be attached to the types of operations offered by food catering companies and food flavors. 2.3 Initial Research Bedford Restaurant will be offering European, Asian and British food and beverages with a very distinctive image. In order to purchase the products, three systems will be used, such as table service inside the restaurant, home or office delivery, and takeouts. The restaurant will target both local and out-of-town clients, and the price of food consumed either in the restaurant or taken away will be the same. The Bedford Restaurant menu will, therefore, e moderately priced and moderately-sized, offering a wide range of British, Asian and European American dishes with a common theme, such as healthy (natural ingredients, low fat and low cholesterol) familiar and flavorful. A range of special meals will also be offered for the clients satisfaction. The goal of the restaurant will be to create an image of provider of nutritious, light and satisfying food at affordable prices. 2.4 Food Production Food will be processed and prepared in the restaurants kitchen. Most of the restaurants dishes will be crated from scratch by using fresh meat, vegetables and dairy products. The Chief Chef will ensure that strict standards of quality products, sanitation, packaging and presentation are applied to the kitchen and service staff. 2.5 Service Customers of Bedford Restaurant will be able to purchase meals in three different ways. First, they may opt to sit in one of the many seats located in the restaurants dining room, where full service will be provided by the waiting staff. Alternatively, a separate take out counter will cater for clients wishing to take their meals home. Lastly, take out foods will be prepared either through direct or indirect deliveries made to a limited area at specific times upon placing an order either by fax or telephone. 2.6 The Competitors BedfordCity has in excess of two dozen hotels and restaurants offering identically priced catering services, such as the ones Bedford Restaurant intends to offer. Even though this is obviously a big challenge in terms of the industrys market share, this is also a clear indicator that there is a big potential in the industry. Based on innovative concepts, new competitors have successfully entered new markets. Bedford Restaurant will, therefore, provide innovative products at competitive prices and in familiar styles. In order to secure a good market niche for itself before similar concepts emerge, delivery and take outs plans will be used aggressively. Commercial food service companies that directly serve students, as well as independent table service hotels and restaurants located in BedfordCity, are some of the food providers Bedford Restaurant will have to compete with for the target market. Border Caf and Bombay Club are independent operators that are mostly ethnic-based, and thus capable of carrying only two same menu items at a time. All the businesses are currently doing very well. 2.7 Competitive Strategy In order to gain a strong competitive advantage over its rivals, Bedford Restaurant will be focusing on product quality, identity and novelty, good sales attitude and employee motivation, as well as highly aggressive and innovative service options. Of all the restaurants located in Bedford City, Bedford Restaurant will become the first of its kind to offer a menu based entirely on low-fat and healthy food. The potential market will, therefore, perceive Bedford Restaurant as the best provider of low-fat and healthy British, Asian and European food. Bedford Restaurant will also have a reputation of offering best special meals that are nutritious to its wide range of clients. Once potential customers have tasted food in the restaurant, their general experience and perception will ultimately be reinforced through efficient, friendly and knowledgeable service. Customer retention will be facilitated through accessible delivery and take out options (Mintzer et al, 2011). 2.8 Marketing Strategies, Targets and Goals Entry into a new market in BedfordCity should never be a problem due to the heavy traffic and high visibility. Local residents and students are also known to support new restaurants, and tourists flocking to the city do not normally have fixed preferences as to where to have their meals. In addition to that, %u20A45,000 has been specifically allocated for public relations campaigns and pre-launch advertising. 3.0 Marketing Strategies Basing on the unique aspects of the restaurants product theme - delicious and healthy foods - a mix of marketing strategies will be developed with the aim of establishing the restaurants image, presence and message. These will also include the print media, whereby magazines, local newspapers and student publications will be used for marketing the restaurant to local residents. Broadcast media, which will include special interest shows and local programming, will also be utilized to advertise Bedford Restaurant with a view of creating awareness among potential clients. Brochures from the Chamber of Commerce and concierge relations coupled with charity events and yellow pages will be used to establish contact with potential customers. In order to solicit broadcast and print coverage during the startup period, a public relations company will be retained to ensure this is achieved (Daniels 2002). The marketing strategy will be divided into phases to ensure that there is awareness about the existence of the restaurant. This shall be achieved in a number of geographical locations. The first phase will commence when the public relations firm will send out press packets or advanced tickets to all media outlets together with printed advertisement announcements. Secondly, there will also be an ongoing campaign which shall be monitored regularly for its effectiveness. Well-trained staff will also be used at point of sale terminals to enhance the clients overall experience and increase the average check. In order to build a good customer base, word-of-mouth will be vital for the business enterprise as a referral method (Green 2011). 3.1 Operation of Bedford Restaurant Offices and Facilities The restaurant currently occupies an area of 1400 square foot in a building which formerly housed a restaurant. Therefore, only slight structural modifications will be required. The codes and licenses are all in order, and thus only dining room furniture and new equipment will be purchased and installed later by the General Contractor. After opening, all the offices will be allocated to the relevant personnel. The premises will be insured against the risk of fire to ensure that full compensation can be claimed from the insurance company. Bedford Restaurant will, therefore, be insured against the risk of fire with the local branch of the American Insurance Company. 3.2 Hours of Operation Bedford Restaurant will be open for seven days a week, serving breakfast, lunch and supper from 6:00 am to 11:00 pm. The restaurant will, however, remain closed during the 4th of July, Thanksgiving and Christmas. All employees will, therefore, be required to report to the place of work as early as possible to ensure that the restaurants operations proceed smoothly. 3.3 Employee Education and Training Bedford Restaurants employees will not only be trained in their specific job duties but also in the application and philosophy of the businesss concept. In addition, the employees will also get extensive information from the Chief Chef and be kept updated about the latest or current information on healthy eating and operation of successful restaurants. 3.4 Systems and Controls of Bedford Restaurant A big emphasis will be placed on the extensive research regarding the integrity and quality of Bedford Restaurants food products. The products will, therefore, be tested for purity and freshness. Inventory control and food costs will be handled by the businesss computer system and checked on a daily basis by the management. 3.5 Food Production Most of the restaurants food will be prepared on the premises, and the kitchen will be designed in accordance with high standards of cleanliness and sanitary efficiency. Under normal circumstances, food in the restaurant will be mostly to order and stored in big coolers located in the basement. 3.6 Financial Forecasting During the first year of operation, the restaurants sales ratio will stand at one-to-three. For the reason of the restaurants sales forecast it is assumed that only three out of five enquires will lead to actual sales, and thus this is a conservative estimate. The management of the restaurant expects that there will be a continuous build-up of clients who will be coming to the restaurant to taste British, Asian or European food. The amount of new enquiries made due to the promotion companies is bound to increase during the first year of the restaurants operation, and it is hoped that this trend will continue. Basing on the sales projections below, it is expected that 660 clients will visit the restaurant during the first month of operation, an average total being %u20A43549. Additional service sales will enable the restaurant to generate %u20A4268,783 in profit during the first twelve months of operation. Table 3. Sales Forecast Projection Q1 Q2 Q3 Q4 Year Total Inquiries generated through promotion 200 425 425 750 1800 Restaurant inquiries 300 300 450 450 1500 Total inquiries 500 725 875 1200 3300 Meals bought 100 145 175 240 660 Average cost of meals %u20A43340 %u20A43340 %u20A43758 %u20A43758 %u20A43549 Commission received %u20A433400 %u20A448430 %u20A472331 %u20A498757 %u20A4252918 Commission on insurance other services received %u20A41670 %u20A43340 %u20A45010 %u20A45845 %u20A415865 Total commission fees earned %u20A435070 %u20A455570 %u20A4773241 %u20A4104602 %u20A4268,783 In the second year, the restaurant forecasts a gross profit of approximately %u20A4624,318, while in the third year the business aims to reach a target of %u20A4988,846. 3.7 Cash Flow Projections The Cash Flow projections for the first year, as shown in the second year, indicate that after the proprietor has invested %u20A441,750, the company will require an additional short-term funding of approximately %u20A483,500. During the remaining two months of the business year, it is forecasted that a cumulative positive cash flow will be achieved coupled with an end of year surplus cash of approximately %u20A419,335. As far as cash flow projection is concerned, it is assumed that that the %u20A483,500 required for additional financing will come entirely from a bank credit. 3.8 Risks Associated with the Restaurants Growth There are some risks which will be associated with the restaurants economic growth. These will include, among others: Losing of clients or customers to other providers. Diminished quality of services. Threat from new businesses. Losing touch with the clients. The risks that will face the expansion of Bedford Restaurant can best be summed up in one word: Competition. In order to sustain the restaurants position in the area as the best provider of British, Asian and European food, Bedford Restaurant will have to outshine its competition. This will be done through maintaining its focus on outstanding customer service and superior product knowledge. This will ensure that the business is capable of upholding its positioning in the industry, thus retaining its current customers and attracting new ones (Henkel et al, 2006). Conclusion The application of all the business practices and principles will ensure the success of Bedford City Restaurant and thus invest in long term strategies like for instance establishment of other branches of the same hotel in various cities of the United Kingdom. All the stakeholders of the restaurant will always work with a view of uplifting the standards of the restaurant to make it the best place in the whole of BedfordCity. Buy custom Bedford Restaurant essay