1.1Description of Business
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The restaurant business strategy will be an open disclosure of Yummies business proposal. The intention will be to establish practical business expectations, as well as to eradicate uncertainties regarding the profitability of the project. Entrepreneurs often optimistically forecast their restaurant business plan, underlining the benefits and disguising the potential risks. Business owners display a vested interest and economic dedication towards the business’ success. Our aim is to construct a definitive business, financial and marketing plan to satisfy all capital financing requirements, and can be implemented every day. Every precaution has been taken to validate the business and economic models, with a particular aim towards realistic expectations, with the use of market research and existing business theories.
?55,000 will be the total amount of capital that will be needed to commence with the Yummies business. ?50,000 of this will be start-up capital with the remaining money used for a reserve on business operations. This strategy will be submitted so that a ?25000 business loan can be attained. This will be utilised for Equipment purchases, as well as Design, Construction, and Operational Start-Up expenses. Mr. Ajayi and Mr. Sangosanya, the owners, will be supplying ?24,000 of personal capital. Part owners have a non-managerial focus and other Private Investors will supply ?6,000.
The owner’s responsibility is the personal liability for financial debt. Crucial precautions have been established to make sure the business can be completely capitalised. These will address the economic faults, and guarantee the business’ start-up to be successful.
The plan appropriates “variety”, “ambiance”, “entertainment” and “efficient staff” to form feelings of “place”, as recommended by Lynn (2009). This will help us to fulfil our targets of overall value within the restaurant market. By generating fair profits for owners and investors, we will also create a rewarding working environment for the workforce.
The model and values that we will use for the business operations are:
“Unique, Innovative & Contemporary”: Establishing an original fine dining experience to separate our business from competitors. Our business aims to be individual and different to other local restaurants, primarily experienced through our innovative design and “electric” decor.
“Product quality”: providing excellent service, food, and ambience.
“Spice of Life” Menu: Our chose of foods is aimed to appeal to a variety of clients. The diverse menu will offer African regional specialties, from: Fried Meat with Potato Balls, Jollof Rice, Fried Rice, Eba, Amala. Pounded Yam, Cow Beef, Goat Beef etc.
“Employee Retention Focus”: Retaining the workforce and establishing programs of development is a main aim, and model for a successful business (Napier, 2006). Using these, the business can employee highly skilled and trained professionals and establish a committed workforce. The business has accounted for a stock option program, to implement for Chef and Management roles. This will subsidise the lesser salary base and reduce initial overheads. It will also invite skilled employees, as recommended by Williams (2010).
“Cost Control Focus”: Expenses will be constantly managed, and without exception. “Cost Control” will become integrated to the running of the business. It is a function that looks at handling numbers, assessing the figures that affect the bottom line (Williams, 2010). 80% of a restaurant’s success is determined before the business is even running (Lynn, 2009). The aim of our business will be to lessen cost of goods sold to satisfy the profit margin targets. This will be achieved by balancing these vital cost factors: “Purchasing”, “Receiving”, “Storage”, “Issuing Inventory”, “Rough Preparation”, “Service Preparation”, “Portioning”, “Order Taking”, “Cash Receipts”, “Bank Deposits” and “Accounts Payable.” The business will deploy the restaurant business plan to trace the actual expenses against the forecasted expenses.
Restaurateurs are always on the lookout for innovative methods to separate their restaurant from the competition (Zapoli, 2005). This will give them the competitive advantage over rival businesses. We have identified a gap in the market within the West Midlands for an African Restaurant which delivers quality food to the right target market of African students, entrepreneurs and adults; something that is contemporary and entertaining. We believe that Yummies satisfies these criteria.
As mentioned, entrepreneurs are renowned for creating optimistic restaurant business plans; looking at potential benefits and overlooking dangers or risks (Reuvid and Millar, 2003), and according to Zapoli (2005), business owners display a vested interest and economic dedication towards the business’ success. Our aim is to construct a definitive business, and a financial and marketing plan that can satisfy the capital financing requirements, and can be implemented every day. Every precaution has been taken to validate the business and economic models, with a particular aim towards realistic expectations. These have been accomplished by:
A financial model that is built on industry statistics and not optimistic predictions. Expenses are based upon our experience of industry and practical situations with other businesses. This will be validated by the National Restaurant industry cost averages (National Statistics, 2010), as well as the assessment of West Midlands’ market averages. Collective statistics are considered to produce solid business predictions (Zapoli, 2005).
The business concept derives from in depth Market Analyses. Rather than building a business based around a preconceived idea, we examined market research to construct a concept that is based around clients. The business looks to appeal to an unmet client “want.”
A buffered financial strategy that provides suitable capitalization. A contingency buffer will be part of the initial expenses to makes sure the restaurant is suitably financed. This will offer the restaurant suitable funds to maintain the business for the initial six months in the restaurant’s life-time. Our current business knowledge confirms that there are prolonged “ramp-up” stages for restaurants, compared to retail or service based businesses (Mintel, 2009). New entrepreneurs sometimes make the mistake of not addressing this issue within their business plan.
Effective Risk Mitigation Plan. By assessing the traditional and non-traditional dangers that are linked to restaurant failure, we have accounted for such risks within the business plan. Rather than dismiss such dangers, we located valid mitigation strategies.
Deep Management Experience. We believe that it is important that our management team has more than fifteen years combined experience, contacts in more than eighty restaurant openings, and, importantly, are heavily active in the Barking & Dagenham restaurant industry.
2The Company and its Industry
2.1Purpose of the Company
Yummies aims to be an innovative restaurant, which fuses a diverse menu with an engaging ambience. We aim to provide high quality food and services, with the client’s satisfaction a top priority. We anticipate that the typical type of customer for Yummies will be men and women, old and young individuals, as well as couples and singles.
Yummies’s targets for the initial 5 operating years are:
Maintaining food expenses to be less than 35% of revenue.
Develop the Gross Margin from 65.41% to 67.10% by the second year. This is a realistic target; the “stretch” will be to get 70.73% by the third year.
Maintaining labour cost is between 25% and 27% of the total sales.
Stay an innovative restaurant with excellent food and service.
Averaging sales between ?525000 to ?630000 per annum.
Developing the Yummies business as an innovative Midtown restaurant.
Increasing the marketing and advertising within West Midlands. This will also include nearby regions to expand customer base.
Attaining profitable investment return for investors from the second year to the sixth.
2.2Company founders and Skills sets
This business will begin as Yummies Limited, owned by General Manager and Executive Chef, Paul Sangosanyaa, and Managing Partner Ajetunmobi Ajayi.
Mr. Ajayi and Mr. Sangosanya both have experience within the restaurant industry, which is based on their experiences in Nigeria. Mr. Sangosanya, a proficient restaurateur, owned many full-service restaurants. Mr. Sangosanya currently owns Currys Restaurant in Ijebu-Ode, and Mr Biggs in Lagos. He is the international Restaurant Consultant for Chicken Republic and Pizza hut.
Mr. Ajayi is qualified in Restaurant and Hotel Management and has experience in International Business Management. He also helped Mcdonalds fast-food chain to become a major London restaurant. This branch was identified as a top 10 restaurant during his management between the years 2002 and 2010.
“Unique, Innovative & Contemporary”: Forming a unique, innovative and high quality dining experience to separate our restaurant from our competitors. We will achieve this through our innovative design and decor. Also, the restaurant will provide a high quality dining atmosphere.
“Product quality”: excellent food, service, ambience.
“Employee Retention Focus”: Retaining the workforce and establishing programs of development is a main aim, and model for a successful business. Using these, the business can employee highly skilled and trained professionals and establish a committed workforce. The business has budgeted for a stock option program, for Chef and Management positions. This will subsidize the lower salary base and reduce the initial overhead and also invite skilled employees.
3PRODUCTS AND SERVICES
Yummies food will set out to be that which blends the best of all African cuisines from all parts of Africa. The menu is intended to have a range of varieties, which will change every 6 months, but still have traditional specials.
Our kitchen staffs and main house staffs will be well trained in food preparation, presentation and their approach to customers thereby providing a high quality service. We will ensure that all customers will also be provided with a nice environment that is comfortable, relaxing an appealing thereby giving them a unique restaurant experience.
Our menu would offer several different courses, which will come with choices for a fixed price. This will include starters and appetizers, main course deserts and African cocktail drinks.
Our starters and Appetizers menu will include:
Suya with pepper sauce or Goat cheese dip
Pepper soup which can be served either goat meat, cow leg or cat fish
Fried meat with potato balls
Our main dish menu will include:
Jollof rice, which can be served with a side order of either chicken, beef or fish
White rice, which can be served with a side order of either chicken stew, beef stew or fish stew
Fried rice, which can be served with a side order of either chicken, beef or fish
Coconut rice, which can be served with a side order of either chicken stew, beef stew or fish stew
Eba (cassava puree), which can be served with any of the soup and stew side orders
Amala, which can be served with any of the soup and stew side orders
Iyan, which can be served with any of the soup and stew side orders
Semovita, which can be served with any of the soup and stew side orders
Fufu, which can be served with any of the soup and stew side orders
Ewa Dodo (black eyed peas with plantain)
Our side order menu will include:
Stew and Soup
Efo (also known as vegetable soup)
Obe ata (also known as bell pepper soup)
Obe Eja tutu (also known as fish and pepper stew)
Ogbhona soup (this is stew that is thickened with Obghona nut)
Vegetables and Beans
Moin Moin ( also known as steamed Beans pudding)
Obe Ila (also known as stewed Okra)
Obe Ewedu (also known as simmered mellow greens)
Dodo (fried plantain)
Poultry, Beef and Seafood
Our drinks, cocktails and beverages menu will include:
Traditional African Palm wine
Our Desert menu will include:
Coconut ice cream in strawberry or cinnamon
Coconut swirl ice cream with pineapple sauce
Orange chocolate Parfait ‘la’ Afrique
Accra banana peanut cake
Congo sweet oranges
After conducting a market research, it was found that most traditional African restaurant businesses are not set on customer satisfaction, rather they emphasize more on the culture (Mintel, 2009). Furthermore, it was found that customers are particular about pricing, the restaurant experience and the variety of the menu (Mintel, 2009).
Also, in light of the recent financial crisis, most customers would be very particular about the quality of the service they receive in relation to the price they are charged, especially now that most people would be more conscious of the amount they have saved. Yummies restaurant is priced very reasonably with a maximum main menu price of 12 pounds. The appeal and structure of the restaurant i.e. decoration, bar, waiting time, and service are also factors that are mostly considered by customers as they also contribute to the overall experience.
In the West Midlands, ethnic restaurants are increasing due to the continuous introduction of international cookbooks, recipes and the massive in flow of imported food stock (National Statistics, 2010). This has created a window of opportunities for various ethnic restaurant establishments, an opportunity that Yummies intends to take up. As a result of this market analysis, it is Yummies’ plan to give customers a very good price for a good experience in the restaurant and a find food choice to choose from.
Yummies restaurants aims to cater to different segments of the market, and this includes tourists during the summer period. Yummies restaurant is guaranteed to be a destination, as it will have the necessary attractions, environment and our variety of African cuisine. A vast amount of the tourists are singles, open to new experiences and looking to be well entertained, especially with the upcoming 2012 Olympics.
Our target market is ranged between the ages of 25-45. This is because they are set within the working class and the upper class BC1 income bracket according to the social stratification meaning they have more disposable income and are likely to spend more (Mintel, 2009). We will also be attracting the business class as our contemporary setting and atmosphere will be perfect for business meetings and the overnight business lodger.
Our restaurant service is also not limited to the West Midlands, but aims to draw attention from other parts of the UK. These are the destination customers that seek a different environment or couples on a date night who want time alone and are open to try out something new rather than what they are normally used to.
4.3SERVICE BUSINESS ANALYSIS
The restaurant industry is very competitive at every market segment demands experience. Majority of new restaurants tend to struggle or collapse due to inexperience and bad management. However, the successful ones are those which a concrete knowledge of the market requirements (Zapoli, 2005).
Restaurants and successful businesses generally make good profit by making use of economies of scale for instance, the use of inexpensive ingredients (lower cost price) to make creative cuisines at an increased selling price (Jorgensen, 2003). We intend to incorporate this at Yummies by using cost effective ingredients, but not compromising on the quality. We would source lasting products such as bags of rice and beans in wholesale, so we can get a cheaper price for them, whilst also sourcing diminishable products like Pepper and Tomatoes from local producers, so they are always fresh.
4.4STATEGIES AND IMPLEMENTATION
Yummies restaurant’s approach is straightforward. Our proposed success is to be achieved through an addition of excellent service and finest cuisine in an atmosphere that is welcoming to a wide range of customers. Our main forte is customer satisfaction and creating brand awareness in the Midland area, which will later expand to other parts of the UK. We intend to be well detailed in explaining who we are, the standards we stand for and what our goals are to our customers in order to build a reputation that can easily be spread across.
We would be approaching an existing market of customers, with existing products, as we expect that there are already competitors within the West Midlands area that provide the same sort of services we do. Therefore our main strategy, as represented in the Ansoff Matrix (Ansoff, 1957), would be to penetrate the market and establish our base. We intend to achieve this feat by differentiating our services based on quality, thus adopting a value differentiation focus (Porter, 1985), as opposed to one that was based solely on price or quantity.
By focusing on differentiation in order to penetrate the existing market, Yummies would be distinguishing itself from competitors by selling itself as the prime place to be, a restaurant that values the quality of its services and food, and would always be happy to leave every customer happy. Also, this strategy has been chosen as opposed to a broad based value strategy based of the capital investment required to target a larger audience in the West Midlands. Such a capital investment would typically involve having a larger restaurant, or launching several restaurants, both of which are not immediately financially viable. Furthermore, adopting a cost focus strategy is not financially viable, due to the emphasis Yummies aims to place on the quality of food sold within its restaurants. In order to deliver quality, we can not do so as a start up restaurant. Furthermore, as argued by Grant (2000), the cost focus strategy is usually more ideal for established businesses, as smaller businesses cannot necessarily compete with larger competitors based solely on price.
The major competitors will be Debulge, Somaga and The Den restaurants as they have been in prior existence. Debulge restaurant is the only one that attracts a reasonable amount of customers, but has a location disadvantage, comfortable atmosphere and an overall minimal size. This can be said for the other two competitors as well. The advantage that Yummies will have over the known competition will mainly be its location as its going to be set in an area where there is a large mixture of both local and international individuals, hence promising a diverse demographic. This location area is a popular tourist attraction area, thereby making Yummies an obvious choice.
Even though the competitiveness of Yummies Restaurant is not totally dependent on the location advantage, we believe that it gives us a suitable platform to launch ourselves, as it also offers free marketing. Tourists and Passerbys would have a look at the display boards and immediately know it is an African restaurant, and for those that are hungry, or just crave something to eat at that point in time, we would be an ideal location to visit. Furthermore, the ambience and service delivery, along with the food quality they experience whilst at the restaurant would give them enough incentive to return and refer us to friends and family. This is the free sort of marketing and service delivery that Binks and Ennew (1997) recommends for small businesses that are just starting up, as it gives them the chance to built a market following easily and rapidly.
5Marketing, PROMOTION AND SALES
5.1Building and Signage
The fundamental marketing tool that we will deploy will be the design and signage at the exterior of the building. Also, restaurant’s sign would include adequate information about the name of the restaurant and the services we provide. We also intend to invest in substantial renovation work and decor to produce an innovative aesthetic style for Yummies.
Based on market research, and the owners’ previous experience in the restaurant industry, customer service is a considerable factor in influencing the popularity, and success of top restaurants. The quality of the food and ambience is over-shadowed by excellent customer service. It is this kind of approach that ensures our client’s continuously return.
Wait-staff will be trained by the management to offer a high standard of service, to ensure that our clients are happy and enjoy their experience at our restaurant. These wait-staff must be skilled and well-trained. Every ninety days the wait-staff will have to undergo a performance appraisal; as outlined in the Employee and Operational Manuals, and recommended by Zapoli (2005).
5.3Advertising and Promotion:
The Advertising strategy and media schedule will utilise newspapers and other local publications to target various customer groups, such as singles, couples, and destination customers.
Management acknowledges that extensive media promotion is significant to a restaurant’s immediate success. However, this should be an aggressive campaign to complete the service targets. A suitable budget will be allocated for the initial year. A large section of this will be allocated for media promotion, and to build a “customer buzz” in the thirty days before the restaurant opens. This will be maintained for three months after the opening day.
5.4Media Objectives and Strategy:
Formulating an image as: “a unique Midtown restaurant with great service, value, and great food, served in an eclectic atmosphere.” Efficiency will be maximised through the selection and scheduling of promotion by:
Choosing popular business publications that have large specific market penetration; this will get our business out to the entire target demographic.
Scheduling a suitable occurrence of adverts to affect the market using items from the menu as well as promotions.
Place adverts around entertainment and food editorial publications.
Attracting clients to the business using our restaurant website, encouraging clients to sign up for future functions, V.I.P lists, reservations, as well as flash media promotions.
Maximizing advertisement life-p through publications that are published every week and month.
Maintain a consistent reach and frequency across the year; we will aim certain customer segments within a five-mile radius, and new “suburbanites”, who enjoy high quality, in-town dining.
An efficient manner in which potential clients can be reached is to create an effective advertising campaign. We will look to promote our restaurant using the concept of “Spice of Life.” Additionally, the business will earn recognition from the local press, and public announcements. The website will be used as an incentive to get clients to sign up or to come to the restaurant. The website will use flash media which underlines the business, recent events, future events, and our diverse menu.
Assessments of the periodic customer surveys and weekly menu item sales helps to comprehend the forms of advertisements which are being successful, and those which are failing. This will also give us an idea of the customers that we are reaching with our advertising campaign. The primary objective is to comprehend the client and to study the levels of success that our direct marketing and media activities have generated. This will also aid us in effectively redirecting our campaign.
5.5.1 Publicity Strategy:
These are the publicity strategies deployed by Yummies:
Create and maintain public relations, with contact with editors and personnel at local restaurant publications.
Establish constant and consistent package update program for the primary objective media, making sure that editors are side by side with the business promotions.
Build relationships with editorial staff of such press, so our advertisements and business can be promoted in local “round-ups,” as well as offering product comparisons for restaurant publications and local newspapers.
Create a Yummies record, with a menu that can be implemented as a main device to improve PR, and will be part of the press kits.
5.5.2 Press Release/Grand Opening:
A number of press releases will be given during the “Grand Opening” of Yummies Restaurant:
“Editorial Visitation”: Prior to the restaurant’s opening, and during the initial six months of operations, the restaurant will send out invitations to significant editors and journalists from the local press so that they can come to the restaurant and experience our high quality food, service and atmosphere first-hand.
“Publicity Revenues”: It is forecasted that about 10% of the yearly sales will come from the restaurant’s publicity: a complete media kit will go to the local press, as will updates on menu items, which will be issued every month.
“Community”: Yummies aims to work with the local community development organisations. Also, we will contact radio stations so that we can have another medium in which to interface with potential clients. There will be a constant effort made to find local community programs that the business can participate. We believe that it is healthy policy to “give something back.”
“Marketing Program”: The restaurant will operate three marketing strategies to advance the public’s awareness of Yummies: In-Restaurant, Public Relations, and Media Marketing. A significant strategy will be the “word-of-mouth/in-restaurant” marketing; an affordable and effective marketing programs.
“Restaurant Night”: We will organise a certain night for local restaurant owners, chefs and staff to talk about the contemporary market patterns restaurant people. This will be held on the first Monday of the quarter. We will look to invest in a co-operative effort to promote the Barking Town Centre; whilst it seems that there would be a conflict of interest here, this is an attempt to develop the patronage of the town.
“Monthly Dating Connection”: As the online world continues to grow, Internet and speed dating has become a popular function and the business will run monthly “date nights.” Data packages will be sold in an auction alongside the normal range of food and drinks.
“Wait Area Marketing”: Wait-staff serve appetizers to clients on the wait list.
Live Entertainment parties
Seasonal Holidays: Valentine’s Day, New year’s Eve, Mother’s Day etc.
Yummies Halloween Masquerade party
Wine tasting weekend
5.6Public Relations Marketing
Barking Hospitality & Tourism V.I.P. Party:
The restaurant intends to stage a “V.I.P. Dinner” prior to its “Grand Opening.” The dinner should help to train staff and will also introduce the new restaurant to the community. We will use the Chamber of Commerce, West Midlands Hospitality & Tourism, and Midlands Town centre Development group to draw up an invitation list for the “Grand Opening.” If we secure the favour of these people, it will surely benefit the restaurant to gain popularity.
Before the “Grand Opening”, two parties, designed to accommodate the Media and the Critics community, will be asked to come and to provide an assessment of our service, food and ambiance. This is a preliminary review, as constructive criticism is considered to help make improvements and other revisions before we have the “true Grand Opening.” The results of these reviews from critics and the media commentary will influence the success of Yummies and towards the penultimate design.
Produced for in-town hotels, business establishments etc. This will be given to to guests and staff, and will display images of the restaurant’s interior, as well as display the menu and prices.
Government offices within the West Midlands region will be contacted about catering for their company’s lunch services, as well as for private functions. This strategy will give the restaurant a greater “visibility” and potentially ensure us with future work. It will also improve the rate of “Word-of-mouth” referrals, which, as mentioned, are influential methods of increasing popularity, especially in the business community.
As above, we will look to target businesses so that we can provide them with lunch services, dinner entertaining, and private functions.
A large part of our media campaign is for the restaurant to be published in the Entertainment and Dining columns in the local press. Additionally, updates of live entertainment events and other special events can be displayed on the newspaper’s calendar.
Restaurant and Special Events Website:
This is an important marketing tool. Therefore we have employed a local designer to produce a top-quality, easily navigated and well-maintained website.
Thirty days prior to the “Grand Opening”, innovative billboard adverts are to be hosted; these will publicise the launch of Yummies.
Inner & Outer City Marketing: The restaurant is budgeted to appeal to potential clients from the suburbs.
Customers are provided selections of innovative, high quality foods, within a comfortable atmosphere with top-rate service. This experience will be maintained every day, so that the customers enjoy this experience every time.
The restaurant’s marketing strategy invites local critics and clients through the doors. The sales strategy motivates clients to become come again and, more importantly, to improve the “word of mouth” about Yummies, as they inform their friends and family about the high quality dining experience they had at our restaurant.
However, young restaurants generally succumb to two key errors: one is when a restaurant is unprepared for the “Grand Opening”, and the clients endure slow service or low quality food. This will inevitably discourage them from coming again. The other mistake is if the restaurant invests too much into the “Opening”; in these circumstances, the restaurant often finds that it is hard to maintain the levels of quality that the customers who attended the “Grand Opening” expects to receive on return visits. Like the first mistake this results in a decrease in “word of mouth advertising”, and, therefore, generates unsatisfactory income.
Yummies’s sales strategy is to provide top standard food, service, and ambience. This is be achieved through:
The employment of top quality staff, who enjoy working at the restaurant and value the benefits of working for Yummies.
Evaluating and assessing the standard of what is mentioned above, and, therefore, dealing with any issues that are identified.
Communicating with customers in a personal manner; this makes them feel that their comments and opinions are listened to and are not dismissed.
Assessing popular food choices and maintain the most popular ones on the menu, despite rotating seasonal foods and specials Sales Forecast.
These marketing strategies are based on recommendations adopted from Williams (2010); Zapoli (2005); and Mason and Stark (2004), on effective ways of marketing start-up restaurants, especially new restaurants in existing areas where competition is meant to abound. By approaching and adopting these methods, we aim to have built a reasonable customer base within the first 3 months of opening the restaurant. Both owners would be in charge of putting these strategies into motion, and ensuring that there is a wide enough audience for the restaurant, in such a manner that it promotes sales and sustainability, without necessarily spending too much of the budget on marketing.
6.1Web Plan Summary
Yummies has a dedicated website that will act as “virtual business card” for the restaurant. The design is simplistic, yet modern. The website displays the Yummies menu, prices, as well as any articles, reviews or latest events associated with the restaurant. It is planned that there will be a “Paparazzi Review” to be published every month, and this will cover that month’s events and the strategies that the business employed to invite new customers into the restaurant.
The site will also promote special offers, and there will be an online order feature for the “Sunday Market Brunch.” Should this feature prove to be successful, then there is the potential for further expansion. The website will offer customers the chance to place an order and pay using their credit card. The range of food that will be available for order will be selected from the pre-packaged meals that will be made available as part of the “Sunday Market Brunch.” We have also considered potential catering jobs.
The Yummies site will have e-mail features which will permit the customer to make online reservations, or book dates for special events.
7Management and Operations
The highly skilled Yummies management team will help make the restaurant successful. The team comprises a number of individuals who have adopted various disciplines, and have professional skills and understanding in the restaurant business; such as marketing and restaurant management.
As mentioned, Mr. Ajayi and Mr. Sangosanya both have a wealth of knowledge and experience of the restaurant industry.
In the second year, Yummies plans to recruit a General Manager to deal with everyday Restaurant management and will help the development of the business.
It is well known that investor confidence cannot be created from optimistic predictions; it has to built on actual success. The Yummies team have a lot of experience with the restaurant industry, and between them, have enough knowledge and practical experience to help ensure the restaurant is successful.
7.1.1 Management Team
Yummies values the significance of a strong core management group and has over forty-eight years of experience between its main officers; this is because a successful business is founded in such a group.
Everyday operational management is to be run by Mr. Ajayi and Mr. Sangosanya; they will have the support of the Advisory Board.
7.1.2 Ownership & Management
Together, Mr. Ajayi and Mr. Sangosanya have more than twenty years of restaurant experience.
Ajetunmobi Ajayi: Managing Director
Ajayi displays an accomplished history in the restaurant business. He displays outstanding business acumen as well as an intense enthusiasm for restaurants. With more than seventeen years business management within the I.T industry, Mr. Ajayi has seen success by exploiting popular patterns with constant evaluation of quality assessment. Yummies anticipates Mr. Ajayi’s knowledge of everyday “cash-flow” planning and staff management to be a great asset for the business.
Co-owner, Mr. Ajayi has experience in International Business Management and Business Start-ups. Qualified in Restaurant and Hotel Management, he is also accountable for Yummies’s route and the operational management of the restaurant. Ajayi has been proven to be effective at strategic planning. He is to be the management lead for all public relations, financial and investor services.
Paul Sangosanya: Executive Director
Having owned many full-service restaurants in the past, Mr. Sangosanya is a proficient restaurateur. Accountable for everyday operations management, managing the annual sales targets of ?5 million, Mr. Sangosanya owns the Bauhaus Bar and Nightclub, and used to own the Myth Restaurant, Ouzeri, and Kapilyo Restaurant. Every one of these restaurants were financial and critical successes. Sangosanya’s is an international restaurant consultant for important international organizations, he is a responsible individual. He take contracting responsibilities for Yummies. His role will include: “logistics, Site and Lease Negotiations, Concept Definition, Start-Up and Financial forecast, Menu and Operations Management, as well as Implementation and Launch Management.”
Mr. Sangosanya has an Economics degree. He will be charged with planning the Restaurant Operations, Staff Selection, Menu Definition and Training initiatives.
7.2Managing Partner Responsibilities
Both managers will handle the development of the menu as well as the certification of the Yummie’s economic responsibilities. The managers will co-ordinate, develop, and act out the customer service policies. They will also plan and enforce an “Employee’s manual” for workforce-related policies. Grant (2000) states that the owners and managers of any startup are largely responsible for setting up guidelines and procedures through which the organisation would run and remain functional, which is a function both founding partners at Yummies restaurant have taken ownership for.
The operations managers are tasked with recruitment duties and the decisions regarding employment will be made between them.
The Personnel Plan is believed to be in “good proportion” in relation the size of Yummies and the anticipated revenues. It is believed that the staff will comprise five full-time and two part-time employees. They have to work for two hundred and fifty man-hours per week. This will produce an average monthly gross range of ?9180 – ?12,720 for Year 1. Anticipated gross yearly payroll of ?135,280 is a quarter of the entire sales figures.
The wages of the service personnel does not account for tips.
The Executive Chef and an Assistant Chef, Prep cooks/dishwasher, People cleaning the restaurant.
Mr. Ajayi is responsible for handling Financial Management, Bookkeeping, PR/Media Advertising, Investor Services and daily Restaurant Operations.
Mr. Sangosanya, the Restaurant Manager, will be in charge of everyday Restaurant Operations and is the Executive Chef, who co-ordinates with the Head Chef. He will also be in charge of the Wait and Bar Staff.
Mr. Sangosanya will be aided by servers/apprentices who are responsible for service and will maintain the upkeep of the restaurant.
Servers that work as apprentice (2)
Full-time apprentice bartender(1).
Part-time bartender (1)
Full-time apprentice busboy (2).
Yummies is to be situated in the West Midlands. Here it will service lunch, dinner, and after-hours dining seven days a week. Yummies will function at the peak service times. This is to profit from street traffic, as well as the after-hour patronage provided by the local entertainment facilities. Service will be available at:
Lunch:Monday to Saturday, 11 a.m. – 2:30 p.m.
Dinner: Monday to Saturday, 5:30 p.m. – 12 midnights
Sundays – Market brunch takeout only.
The financial plan is dependent upon significant assumptions: many of these are indicated within the following financial statements. Yummies is wary about their projections, and look to include mitigation of the manageable risks. Here are the primary underlying assumptions:
“Slow Economic Recovery”: It is predicted that the recovery from the economic recession will be slow.
7.5.2 Business Growth
“Annual Growth Rate Percentage”: It is predicted that the restaurant will see modest growth within the initial years of operation, and these have been calculated as 10% annually over the first five years, owing mostly to increasing popularity and a possible expansion into other regions.
Adequate launch period and capital
The restaurant’s financial plan is budgeted to accommodate the “Worst-Case business scenario.” We dealt with the financial risks by:
Considering the monthly break-even.
Calculating “worst-case” monthly financial shortfall, as given by the ramp-up sales percentages that is given by the financial assumptions.
Budgeted the operational shortfall within an operational contingency budget that will be implemented when the situation demands it.
Gaps in Resources and Knowledge of Industry
The owners, Mr. Ajayi and Mr. Sangosanya, have more than twenty years of combined Restaurant Management, Operations and Business Management Experience.
Yummies is looking to employ a seasoned chef to fit in with the restaurant’s image. The restaurant will offer an equity interest to our select Chef to maintain the industry knowledge.
An accounting service will be contracted to a firm specialising in Restaurant accounting.
The initial plan was to create a restaurant that was almost double the size of what the current one is. However, because of the economic recession, we had to reduce our business overhead, start-up requirements, and business operating capital. Additional risk mitigation strategies were implemented and this has been our general business concept. The restaurant’s menu is deliberately priced at a “mid-tier” level to allow people to eat at a high quality restaurant on a lower budget.
Site selection was based on space, visibility, and functionality; the city grant award confirmed our decision. The Consulting group’s experience of site selection and lease negotiation will be of great use. Whilst the location is not guaranteed, the restaurant took an objective approach towards the concept. Rather than progressing with a predefined business concept, the requirements were defined through market analysis. Yummies’s concept was created based on this, and was tailored to suit Barking Town Centre.
Restaurant Design Fees & Consultancy 10,000
Restaurant Equipments 10,000
Chairs, Tables, Cutlery and Uniforms 3,000
POS Terminals 1,000
Information Technology and Consulting Fees3,000
Permit Fees and Business License2,700
Liquor Licenses 600
Utilities, Disposal, Tax & Insurance250
Initial Lease and Security Deposits 1,800
Web Site Construction1,000
Marketing, Staff Training and PR2,500
Start-Up Salary for Staff and Chefs4,000
Staff Recruitment 800
Cleaning and Clearing Services400
Inventory Cost 2,100
Total Assets 55,000
Liabilities and Capital
Capital Investments Required
Mr Sangosanya 12,000
Investor 1 6,000
Capital and Liabilities55,000
Gross Funding 55,000
9 FINANCIAL FORECAST
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