Synthesis of the business plan
SC Gastronomica SRL. is a company whose main business is in the tertiary sector (services), respectively a restaurant. It wants to be opened in Alba-Iulia city and will offer services of high quality to those of the competing restaurants. At the restaurant’s atmosphere, one of the attractions will compete with the interior design, distinguishing itself by the special furniture and decoration. An editorial over at http://customvmail.com/credit-score-score-the-truth-about-it/
The proposed menu will be varied, including all the dishes offered by the directly competing restaurants.
Prices will be similar to those of competitors. What will distinguish the menu will be “the specialties of the house, generally specific to the French cuisine. They will contain natural ingredients and the best quality.
Customers willing to spend will be the target market and offer a prestigious image to the restaurant.
Another business-specific feature will be the service staff, which is evidenced by behavior, outfit and “label”.
All this will lead to the formation of a positive image about the company’s business, concretizing in winning a loyal, if not frequent, willing to spend to offer a differentiated service.
Attending this distinct restaurant by its atmosphere, menu and staff will give its customers the certainty of a special service.
SC Bucatarul SRL wants to be a company that through the services it will offer to change the image of the restaurants in Alba-Iulia, by the appearance of a “more different” than the others. The main purpose of the business is to succeed in attracting loyal, especially special clients, even if it takes time and high investment.
Foreigners, the “hands-on” clerk, small or large owners, bad entrepreneurs, intellectuals, or cultured people all have to form the clientele of the restaurant. This restaurant should be a select restaurant by itself, selected by what it offers through its atmosphere through its clients.
The capital required to start the business is estimated at 453,000,000 lei (launch costs, the cost of equipment, equipment, furniture and means of transport and the expected expenses to be made in the first month of the activity).
The legal form – SRL – was considered the most suitable for the following reasons:
- limited liability of the associates;
- the company’s share capital is distinct from that of its associates;
- simple formulation forms;
- reduced social capital.
The main disadvantage presented by such a legal form: a limited object of activity does not constitute an impediment to the proposed purpose.
The activity targeted by the establishment of the company is in the tertiary sector respectively services, materialized in the opening of a French restaurant and not only.
The products offered, as specified, will generally have French, but are not exclusive. We will also consider other select kitchen dishes, special in quality, aroma and flavor.
The “La Classe” restaurant, wherever possible, will be located in the center of the city. The quality, the presentation of the dishes, the service and the kindness of the staff and last but not least the location will be the trumps of this restaurant.
As a perspective, in the main cities of the country (Constanta, Bucharest, Brasov), the development of a chain of restaurants. They will have the same exterior facade, the same firm (name, type of writing, color) and interior decorations.
The menu offered will be identical in all cities, with no notable differences. Avoid culinary specialties that do not exist in the production plan of any equivalent provider located in another city. In one word, the menu will be the same for the restaurant intranet, taking into account the tastes of the consumers in each city and trying to satisfy the general requirements regardless of the area of origin.
The development of a chain of restaurants is a policy that is needed to achieve medium and long-term goals (the formation of a loyal, selective, profit-making). This strategy avoids fluctuations in the overall sales level of the company, flattening the minimum and maximum levels generated by the summer periods.
Concluding, in the case of a restaurant in the city of Iasi, the maximum incomes will be recorded in the first quarter (March), II (June) and V (October) of the year; but the highest profits recorded in a restaurant in Constanta will be seen in the third quarter (July-August). This state of affairs is explained by the fluctuation of the population, namely a movement of the consumers in the summer period from the city of Iasi to the Romanian seaside, including Constanta. Analyzing the restaurants in the cities of Timisoara, Brasov, Bucharest will record the highest profit rates throughout the year, without significant fluctuations due to the increase in the western and southern areas, the most dynamic in terms of economic development.
No enlargement possibilities are seen locally and will not be pursued. In Iasi, the company will own one restaurant to ensure the exclusivity and uniqueness of the service. Another reason for this option is the relatively small size of the market segment to which the offer is addressed. They will only try to improve service, menus, new equipment, equipment (new bar annexes) if all these investments lead to higher labor productivity, lower energy consumption and high reliability, resulting in increased profits.
The target business customers are over 18 years of age, with a high share of those aged between 30-40 years. And the 20-30 years form an important part, but especially in the long run they are part of a long- a segment of consumers in training that can become loyal in the future.
Consumers targeted by the business are distinguished by behavior and occupation (business people, intellectuals, clerks). The quality of these potential clients is the date their financial deposits and their willingness to spend to provide a good quality service.
The motivations of buying the product-service offered by Restaurant X could be as follows:
- Spending a pleasant evening in the company of the person / persons accompanying them;
- Serving a good meal in a lively atmosphere;
- Discussions / meetings between business people;
- Offering a romantic evening to your beloved.
Concretely, the product of the business is in the sphere of services, namely public catering service, which satisfies not only vital but also moral necessities.
The points of attraction that can influence the decision of potential clients to buy the service are: the high quality of the dishes, the pleasant and friendly behavior of the staff, the cleanliness, the light and the interior design, the special atmosphere.
The culinary specialties and beverages are individualized by presentation quality. The combination of the service offered with the interior decorations, the atmosphere and the professionalism of the staff constitute a portfolio of advantages over the already existing restaurants.
The target market segment is predominantly located in the city of Iasi. The size of this segment that the business is about to concentrate on is estimated at 15% of the city’s total population.
The trends of the target market show a slight increase. It is predicted that in the next 2-3 years it will be known to have rapid growth rates, being influenced by the economic situation of the area and of Romania.
Besides the optimistic forecasts regarding the development of the target market and the number of consumers considered comfortable enough to be sure that there is an assured market, another reason for opening such a restaurant is the number and size of the competitors.
The main potential competitors are the French, Greek, Chinese and Arabic restaurants. The fact that they already exist (so they are known) have formed a certain reputation (quite good in the absence of anything else), they have a somewhat loyal clientele, there are some of the competitive advantages this business presents.
However, the lack of a stable market segment as well as the quality level of the service that has decreased with time passes into weak points that can and must be attacked by a good marketing strategy.
The business will face a very strong competitor. Even if it is not a direct competitor, the MacDonalds restaurant captures a part of its customers because it has a well-known brand name, which is relatively reasonable in relation to the quality of the products.
However, attracting these customers will not be a blow to the business. For example, during the December-January period, the X restaurant’s clientele is expected to be formed only by those consumers with large financial resources, it will not be directed to a specific, different place that does not correspond to the tastes and culinary habits.
Market share “stolen” by MacDonalds is made up of young people (up to 30 years old) and students with a higher purchasing power than the average. This “loss” is virtually unobservable, which is blunted by the natural growth rate since the beginning of the year.
The positive effect of MacDonald’s business will be to strengthen competition, and as competition stimulates competition, those who will have the most to gain are customers whose final satisfaction is actually pursued. I think the existence of a restaurant with a very high quality service (X) and a strong competitor like MacDonald will in fact lead to the “sharing” of the Iasi consumers between these two businesses. As we have already shown, MacDonald’s and X’s market segment does not coincide entirely but addresses those with higher financial strength and who have bigger tastes and demands on the products and services they buy.
Taking into account some of the aspects involved in this type of business: high-quality product-service, reduced earning in the first year of activity and other factors that can negatively influence the business flow (inflation, interest rate), careful analysis and conceiving a very effective marketing strategy and promotion of the service offered. The company’s marketing and advertising policy will focus on the uniqueness of the service provided. The management team (owners and administrators) must devise a marketing strategy that includes methods and elements specific to each stage of the restaurant’s life.
Thus, on the very day of the opening of the place will be invited public figures of the city of Bucharest, people of culture, successful business people enjoying a good reputation. Advertisements during this period will be well-targeted, tilting the market segment being pursued. This will be achieved through:
- Business cards sent to companies, companies, or public, cultural and educational institutions;
- Dissemination of brochures in the event of the arrival of foreign delegations or conducting scientific conferences or communications;
- An im mediating media environment, the radio will be another way of advertising; but this procedure will only be used for short and intermittent periods;
- Prior to launching the business, to inform potential customers of the intention to open a new restaurant with a specific and differentiated quality;
The date of the inauguration will also be carefully chosen. It is advisable to have a period favorable to such actions and where the volume of household consumption expenditures for long-term or long-term consumer goods is high. This corresponds to the first quarter of the year, end of February and early March. Thanks to the accumulation of traditional holidays (Martisor, March 8), the inauguration of the X restaurant could be received by consumers as a “gift” for these events and the novelty of the offer could be a reason to visit the place.
Regarding the message and the content of the advertisement: whether it is by mail, brochure or radio broadcast, it will focus on the idea of offering a special service.
The central idea that the message has to convey is the existence of a restaurant selected by itself, highlighted mainly by the atmosphere, the interior (furniture, light), the quality of the staff (behavior, tact). the text of the message will notice the menu’s variety, its originality and its quality. Price specifications will be avoided, using fine, subtle allusions about the general dissatisfaction that there are few quality restaurants at a reasonable price.
However, the price of culinary specialties will depend on the prices of the equivalent preparations offered by the competition; in this case the price will be similar. Price differentials will appear at “house specialties”, which provide a higher price to demonstrate the superior quality of products that provide the safety of a service as a single service.
Suppliers of raw materials
The main suppliers of the restaurant are in the immediate vicinity.
Supply will be done with your own means of transport to save time and financial resources.
The inventory management and control of the stocks will be carried out by the owner (s) in collaboration with the company manager.
Ensure, as far as possible, an optimal supply of raw materials and reduce inventories to a level that involves minimal maintenance and inventory costs without adversely affecting the normal course of business. To do this, use the JUST IN TIME process: the inventory arrives at the right time and in the strictly necessary quantities. The introduction of this system will apply from the very beginning of the activity in order not to require major changes in the staff, but especially the suppliers.
Another reason for applying the JUST IN TIME method is given by the nature of stocks formed largely from perishable products that have a 3 to 7 day limited warranty for meat and meat preparations, and a maximum of 24 hours for vegetables and fruits.
For some products (exotic fruits, spices) stocks may be higher. In the case of expensive alcoholic beverages (Romanian and foreign), higher stocks can be made, in order to avoid the phenomenon of increasing prices of these products around the legal and religious holidays.
Organization and management of the firm
The targeted organizational strategy will need to keep the organization active, dynamic and with a high level of competitive force. This strategy will aim to develop its product, or improve its service and menus. Another strategy will be to penetrate into supplying business areas, achieving upstream integration (see Perspective subchapter). At the same time, a product differentiation strategy will be attempted to be perceived as unique.
The differentiation strategy allows, by offering a product of superior quality, the possibility to practice higher prices, achieving higher profits and greater flexibility with suppliers.
The management of the company will be provided by an employee who will manage the firm and who will periodically present an activity report and will be selected in particular according to its “human” features:
- taking responsibility;
- high work power;
- the pleasure of working in the field;
- organizational skill;
- originality in thinking;
- sincerity and loyalty;
- innovative spirit.
For this post, a person aged between 25 and 30 years is the most suitable, dynamic, able to rapidly assimilate knowledge and learn from mistakes; to have an open character, present the spirit and to show, why not, a pleasant look.
Professionally, it is not absolutely necessary to be a graduate of a school, specialized courses or an institution of an economic nature, but it is advisable.
As important, the second manager will be the chef of the restaurant. Experience will be her main feature, which will weigh in making the decision to be hired. He will have to be a graduate of some specialized courses and prove his skill in culinary art.
The post of economist, the third in the hierarchy pyramid, will be occupied by an experienced graduate of Economic Sciences.
The rest of the posts do not require staff with high training, but the cooks and waiters must still be graduates of a high school or of specialized courses. The proposed storage areas of about 3 m2 (refrigerated space) and 7.5 m2 (constant temperature space of 200) are considered to be sufficient for the normal operation of the restaurant.
The service will take place on an area of 122.5 m2, it will contain 15 meals and a maximum of 40 seats, the three waiters and a bartender succeeding, if the locality is occupied 100% to perform their duties effectively.
The production process will take place on an area of 36 m2, the kitchen being equipped with the following equipment: classic oven, microwave oven, kitchen robots, dishwashers, work tables, rashes, dispensers and ice cream machine.
The service and production process will be carried out by a different number of employees according to the daily schedule and the holidays.
Supply will be predicted and will be based on fluctuations and annual differences that occur in consumer preferences. In the first quarter and the fourth quarter, there is a drop in raw materials that are consistent with raw materials. Beginning with the second quarter, preparations will be based on fresh, light ingredients. In terms of value (the price of cheap menus will be most requested in July, August (minimum of cashing) and January.
The reasons are various:
- In the warmer period, the market segment targeted by Restaurant X will shrink by leaving consumers in other parts of the country to spend holidays.
- January is registering a decrease in sales due to the diminishing of the cash availability, which is largely due to the spending of winter holidays.
The production-service process
The production process will vary over time and will use different raw materials to make the final product. In principle, they will be of animal and vegetable origin, except for alcoholic beverages that do not require a production time, but only sales. As time goes, the production process will take 15 minutes (vegetable and fruit salads) and 1h and 45 minutes. for example. steaks). The production process will require different machines and will be done in a room of about 36 m2.
The culinary preparation process will take place in a room with a surface area of 122.5 m2; will have 15 meals and a maximum of 40 seats. The bar will have 7m. length and can simultaneously serve nine customers. The three waiters and a bartender will succeed when the restaurant is busy 100% to meet its responsibilities efficiently.
The business requires 18 employees, of which 3 are non-permanent. As a preparation, they will have knowledge of economics, accounting, specific to each post. Apart from the business initiators, economist (certified accountant or expert), chief chef (graduate of a school or specialized courses), the rest of the employees do not require special training; the driver will have a professional driver’s license.
The necessary staff will be identified and recruited from recruitment-placement agencies, or through low-paying advertisements. In the case of chef and waiter’s help, they will be identified by the best-educated graduates of the economical high schools.
It is necessary to emphasize that the administrator and the economist will be the first employees.
Together with these business initiators, they will be recruiting the chief chef and the chief waiter. The administrator, chef and boss will then resort to the selection of candidates for the other positions: chefs, waiters, bartenders, wardrobe.
Testing applicants will be done to measure the ability of their knowledge by demonstrating in practice the capacity to perform the tasks. In addition to the performance test, candidates will also have to fulfill their behavior, tact, appearance and physical appearance.
Candidates will undergo thorough medical examinations to check if they are fit for the job they are seeking and to ensure the protection of other employees, customers and products made within the restaurant.
Training of admitted personnel, if necessary, will be carried out by each of the “section” officers, respectively the chief chef and the chief waiter.
The duties and responsibilities of each employee will be provided in the job description as follows:
- execute the supply;
- Receives and Receives Goods;
- Set up with the chef-menu plan;
- initiates the introduction of new assortments;
- performs and conducts professional training;
- check out everyday clothing and clothing;
- controls daily home appliances, inventory items;
- maintains discussions with consumers, recommends some preparations;
- ask for their opinion on the quality of the preparations;
- personally serves consumers in some cases.
- guides, supervises and controls all professional activity;
- organizes the culinary production activity on the basis of the culinary production plan;
- is responsible for the quality and quantities prepared;
- oversees the way the dishes are mounted in the serving utensils;
- Check the staff in the production department;
- delivers culinary preparations.
- organizes and responds to the entire activity of the serving process;
- Check the presence and staffing of the staff;
- Check the cleanliness and hygiene of the serving salon;
- check and prepare the menu with the manager and the chef;
- Receives consumers at the entrance to the room and leads them to the table;
- receives the order and serves the most important consumers;
- oversees how waiters and barmen perform their service;
- performs demonstrations of preparation, presentation and serving of different culinary specialties;
- Operationally resolves customer complaints;
- train the staff
- perform the activity of preparing the service salon;
- Check the salon cleaning condition;
- perform arranging tables;
- serve consumers.
- performs customer serving operations with section-specific beverages;
- Check the daily and value management stock;
- is supplied with all kinds of drinks;
- equip with all types of glasses.
Payroll policy will be based on an analysis of the factors that affect wage levels: labor demand and offer, legislation (minimum wage), fluctuation in the cost of living), company payment options, wages granted by the competition.
In order to form a positive image and preserve its prestige, the firm will adopt a high salary policy above the average salary level. The salary fund will not fluctuate depending on the profit obtained and will guarantee a basic salary corrected for inflation, the cost of living, adjusted salary regardless of the company’s income. The salary plan will also include bonuses, incentives, payments more.
Besides the salary level, the motivation of the staff will also be achieved by guaranteeing the job (5-year contracts) and in the future the pleasure to work in a brand-new restaurant.
Economic and financial situation of the firm
The total value of the business is estimated at 100,000 euros, this money totally covering the expenses involved in the launch of the business, the reserves, the costs with the possible remodeling of the spaces for the activity.
Monthly earnings are comparable to those of other businesses in the industry. In the coming years, revenues from these activities will fully cover the expenses generated by the launch of the business at the end of the second year of activity, which is expected to make real profits.
Estimated earnings for the first year amount to about € 20,000 (if no credit is contracted).