Business Plan
Business summary
Reem Cuisine is a commercial catering business that will be introduced to offer traditional Arabic foods. Reem Zumrawi, the owner of this company, was brought up in the Middle East and moved to the UK 12 years ago. She is a qualified cook and has a degree in Culinary Arts and Food (Adrian, 2010). Reem has brought her expertise and love of her culture’s cuisine to the UK, her passion of herbs and spices means that she creates both traditional and exciting new dishes with a Middle Eastern twist. The service offers home delivery to customers and caters for larger functions such as: parties, weddings, family events and outdoor events (Abi, 2018). The food will be prepared and cooked to order using local Arabic suppliers. It will be a located owned outlet for fast foods. The goal of the founders is to position the restaurant as a global franchise. The owners intend to achieve this goal through the application of their creative style to the image of the company as well as a detail presentation (Frechette, 2015). Reem cuisine will focus on the provision of excellent dishes at value pricing. They will also combine such a service with an excellent atmosphere and fun packaging. The business’s major priority will be to implement an outlet within a crowded mall. This will be preferably in one of the most protuberant shopping with in the UK.
1.2 Business aim
The aim of the business is to sell traditional family Arabic and Mediterranean food in the UK market. Working from small local premises Reem Cuisine aims to make nutritional, natural home cooked food that tastes fresh, healthy and delicious, building a strong customer base in the Brighton market. In addition to advertising the business will grow by word of mouth recommendation.
1.3 Financial summary
Cost of rent, a new fridge, electricity, gas, water and council tax, advertising, wifi, telephone (mobile), web page, employee, packaging, suppliers
Startup cost of the business is £10000 to make proper kitchen at property that have all kinds of facility and can attract the customer of the market. For the designing purpose, the kitchen would expanse £5000 because it has an effective impact in order to attract the customers in the market place (Remar, et al., 2016). The financial allocation provides sustainability to manage terms and conditions of the business area.
1.4 Business name
The business is about traditional freshly cooked food. The name of the business incorporates the owner’s name, the nature of the business and it rhymes so it is easily remembered.
1.5 Strapline:
The Strapline has been set in the Arabic Cuisine in order to attract both Arabic and local customers in the business market. Reem Cuisine’s Strapline is “ A Homely Feel Abroad”. This strapline written in Arabic will give customers an idea of cultural back ground of this food
1.6 Elevator pitch:
In Brighton there are not many traditional Middle Eastern takeaway establishments that provides healthy “home cooked food” (Remar, et al., 2016). This Reem Cuisine is bridging that gap by providing nutritional food cooked. High and low, market share capture plan has been determined in this process (McGinnis, et al., 2006). The Arabic Cuisine has taken the initiative of making strong customer background in the market. Arabic people in the UK market are primary target of this company.
1.7.Strategy for Target market segment
The bulk of Arab individuals, youngsters, teenagers, national and international students will be catered for in the United Kingdom by Reem Cuisine. Teenagers, youngsters, Arab people, national and international students have been chosen for a number of reasons which include among others; the need for the restaurant to be exceptional fast food in the entire area and also the thinking that is supported by research that branding building efforts can effectively take place at the primary age of fifteen to twenty five years. The restaurants secondary market will consist of individuals aged between twenty five and thirty seven. These age brackets are assumed to more flexible in spending. A dual purpose lunch strategy will be utilized by dine and save restaurant. The restaurant intends to introduce Arabic food to supplement and fill the craving food for the United Kingdom. Reem Cuisine intends to execute a better pricing strategy convenient both to the restaurant and customer.
1.8 Competitive analysis
The main competitors of Reem Cuisine restaurant will lie in 300 metres off the location where the restaurant will situated. In the location where the business will undertake its overall operations there are the following competitors; cook the company which is involved in the of sell family container. Medatrain food, Spanish and Italy food, the other is Turkish fast food (kebab, chicken, grill and fried). Another competitor is Arabic restaurant. The above companies are located in Hove and Brighton. Cook is engaged in the sale of sore frozen food and has a strong reputation in the market. Simplicity for Quick lunch franchiser is offered by Cook .The other is competitor is Turkish sell fast food. It is considered as one of the best restaurants with in the vicinity. Therefore it is one of popular threats that may affect Reem Cuisine restaurant. The restaurant offers delivery services to various apartments and offices. The third competitor Arabic restaurant, it should be noted that the Arabic restaurant does not offer majority of the products offered by reem Cuisine restaurant
1.9 People to work with
The restaurant will be operated as a sole proprietorship business with one employee in the initial stages. The restaurant intends to effectively expand its overall workforce as its profitability and sale revenue increases in the long run.
Section Two:
2.1 Why do you want to run your own business?
Main initiative of making own business is to provide cozy and homely feeling in the new market. In UK, or Brighton the number of Middle East restaurant is very less therefore; the people of Meddle East and Saudi Arab living in UK are not been able to get homely food in the market. To effectively achieve the goals and objectives of the Business proper management and experience are fundamentally important, therefore it is upon this background that the business will operated as a sole proprietorship to help in avoiding management issues that may affect the success of the restaurant? Given the fact that owner is a qualified cook and has a degree in Culinary Arts and Food, expertise and love of her culture’s cuisine to the UK the business will effectively be run as sole proprietor. Further the food will be prepared using local dishes and hence knowledge of somebody with passion of herbs and spices will be vital towards the business overall success. Hence the ability to create both traditional and exciting new dishes with a Middle Eastern twist will be vital in the business for purposes of outcompeting the current restaurants and gaining a larger market share thus making Reem as the suitable person to own and at the same time operate the business.
2.2 Previous work experience:
Previous work experience as a manager in the restaurant helps to make business plan and the process of making strong customer base. The management experience has the determination of making effective business plan. The management experience helps to determine the key important area of financial allocation. The other experiences in traditional and exciting new dishes with a Middle Eastern twist made at home and parties will be critically significant towards the success of the business. More knowledge and exposure attained while producing traditional dishes with a Middle Eastern twist will be of relevance towards the success of the restaurant (Richard, 2011)
2.3 Qualifications and education:
The educational qualification I Achieved level 2 and level 3 professional cookery and I study last year in culinary Arts and Food. is needed in the process of managing the business. Staffs should be recruited as per their verbal and non verbal skills improvement process. The non-verbal skills have the effectiveness in the process of managing business intensity. The degree in culinary arts and food provides a firm foundation on the basics of restaurant management. The knowledge and skills obtained in that discipline will play an essential role in improving efficiency and effective in the completion of various tasks related important for the success of the business.
2.4 Training:
Employee’s that works with me need proper training and development that helps to manage key initiative of the company. Through the training and development process the management can be able to deal with the customer base in the company. For the business to effectively succeed more training on customer relations and attraction will have to be undertaken in order to attract clients from different diversities to try the food. Furthermore training on proper safety and handling of power gadgets and instruments used in the preparation of food will also be carried out (Pankaj, 2002).
2.5 Details of future training courses you want to complete:
The training and development plan has the effectiveness that helps to determine key objective of the business. Through the training and development, the staff of the business can be able to have good decision making skills that are needed in this process.
2.6 Hobbies and interests:
The main interest is lay out in making the customer happy in the market. The Meddle East Food can have environmental suitability that can attract large share of the customers in the market. This interest is very needful in making business improvement process. Opening a business to give the people of England a taste of the Arabic cooking, further the interest in proper customer satisfaction through the provision of better food dishes that benefits both their health and emotional wellbeing is among the drivers for the establishment of the restaurant
2.7 Additional information:
The Meddle East Food is involved in the process of producing Turkish food. This interest has the strong determination in the business management initiative of the market.
SECTION THREE:
3.1 Product and service:
Traditional Arabic foods will be provided by Reem Cuisine for purposes of satisfying the market with a new and innovative product
3.2. Basic product and service:
The Meddle East Food is involved with the activity of selling different types of foods and service such as meddle east traditional food, sandwich like Falafel, Foul, liver with Tahini souse or salad and chili souse and koushry(Scott e t al, 2007)..
3.3. Different product and service
The Arabic Restaurant is involved in the process of selling different of food in Arabic style. Furthermore, the restaurant authority in the market also provides Pasta and Irish food.
3.4 Start of selling
The dishes of the Arabic restaurant would start selling after the market research. The market research process has the acceptability that can determine key need of the customers. Through the market research product and service related sustainability can be measured. The project will start on 1st June 2018 (Laszlo e t al, 2011)
3.5 Additional information
The customer of the Arabic Restaurant has the suitability to make effective business management process. The customers are provided cozy and homely feeling which entering in the restaurant.
SECTION FOUR:
4.1 Customer
The bulk of Arab individuals, youngsters, teenagers, national and international students will be catered for in the United Kingdom by Reem Cuisine. Therefore Teenagers, youngsters, Arab people, national and international students will be the main customers of the business
4.2 Typical customer:
The customers of UK are considered very typical to handle. It can be possible for the managers to attract the customers of Arabic origin. Therefore the company’s typical customers will be Saudi Arabian working class and students plus other Arab populations living within the United Kingdom (Armstrong, 2008).
4.3 Customer base
The customers are based in the UK that has sustainability in the management and operational success of the market. The people of Saud Arab who are living in UK are the main customer in the market.
4.4 Prompts to the customers:
The customers of the market can be prompts through the product and service related sustainability. Food quality and efficiency of the food in the market has effectiveness that can helps to determine key objective of the company.
4.5. Helpful factors:
The idea of providing Arabic food in UK market is very effective to attract the customers. Furthermore, the idea of giving homely experience is another important process of management and operation of the company (Dibrell et al. 2014).
4.6. Existing customers:
NO
4.7. Waiting customers:
The Meddle East Restaurant has some waiting customers who are likely to have the experience of homely food in abroad. The customers are likely to select restaurant to this kind of foods.
4.8. Additional information:
The Meddle East Restaurant provides “Halal” and-vegetarian items that can be acceptable by the customers of UK. The Arabic customers are likely to have this food and the homely essence in abroad. Discount would be given to them in some continental dishes ( Paliwoda e t al, 2008).
SECTION FIVE:
5.1 Key findings:
From the market research, it has been analyzed that market management initiative has been determined through the initiative of making research. The market research helps to determine key demand of the customer from the foods. Desk research provide the initiative that would be taken by the management authority of the Arabic Restaurant (Kapuge, 2016). The research undertaken in the area of Brighton clearly reveals that there exists a large number of Saudi Arabian and other Arab people that can effectively provide a strong market base for the company. Further, the current restaurants like Arabic restaurant, cook and Turkish restaurants cannot effectively satisfy the market demands being brought about by the increase in the number Saudi Arabian residents in the area of Brighton. Therefore such loop holes can effectively be exploited by the business to gain a larger market share and revenues
5.2. Customer questionnaires:
Q1. Are you missing the taste of Arabic dishes in abroad?
Q2. How long time you have not been tested the food of your own country?
Q3. How long time you are staying in this country?
The above questions will be targeting Arab populations living in the area of Brighton
5.3. Key findings from the field research:
From the field research, it has been analyzed that customers are likely to have Arabic food in the new market. The field research shows the business has a window of opportunity it can exploit. There is a growing increase of arab people both students and working class with in the UK that can be exploited. Further, traditional arab food is on high demand in the UK. Competitors like Arabic restaurant have not identified the potential of traditional Arab foods. Hence the above opportunities are the key market findings that favor the operations of the business that the restaurant has the business opportunity in the market.
5.4. Additional information:
The Arabic Restaurant would flourish in the market through the product and service related sustainability. The market management initiative of the restaurant would be specific for the target customers. Internal infrastructural design should follow Arabic style to make the customers happy (Alviniussen & Jankensgard, 2015). The restaurant authority should follow healthy and hygienic food production process that has effective impact in the process of management and operation (Miller, 2005).
6.0 Marketing strategy
Reem Cuisine strategy will be to effectively serve the UK market in an efficient and effective manner. The business intends to introduce its products to test the market. This market tester will become a role model while undertaking expansion strategies in future. Focus will be put on establishing a relatively reputable identity in the domestic market and at the same maintain high quality production. On each and every location local store together with local media combinations will be affectively used. Important to note is that there is a high level of effectiveness registered when dealing with local marketing compared to print Ad that comes in the second place (Matt,2016).
Broader media will be effectively be explored following the establishment of a concentration of stores. Reem Cuisine restaurant will take the United Kingdom market by surprise through using buzz advertising. This will enable the restaurant to effectively provide an energetic and fun environment with an outstanding product of high quality and favorable price (Nikolova and Inman, 2015). Concept execution will be the most important element of the business. By selling supporting materials, Reem Cuisine intends to effectively build its overall brand by focusing on the sale of support items like promotion and merchandise (Linda, 2004).
To increase customer awareness about Reem Cuisine, three tactics and strategies will be undertaken. Most critical ones will be in-store marketing and word of mouth. Therefore due to the current higher levels of traffic in the areas targeted by the restaurant business, under local store marketing strategy local budget plans will be developed to help in creating awareness in the areas of operations of Reem Cuisine (Laurent, 2012). Lastly, local media will be the last marketing effort which will be utilized. In store marketing will involve among others merchandising items, wall posters, party catering, and promotion of grand opening, designing of the concept and wall posters. Free occasional t-shirts at various events of local stores and brochures will be undertaken under local store marketing. Lastly, local magazines targeting Reem Cuisine core customer, direct mail, piece and newspaper campaign will also be carried out under local store marketing.
6.1 OPERATIONS AND LOGISTICS
Production
Production will include all services related to product development. Specialization and process will be emphasized
Delivery
Foods will be delivered by use of delivery vans to the customers. Some will be served at the premises of the restaurant (Adeigbe, et al., 2015).
Payment methods and terms
Payments will be done in cash and on credit.
6.2 PESTLE ANALYSIS
Political:
The restaurant is expected to thrive since there is a favorable government tax policy in regard to small start-ups. It is expected that the restaurant will benefit from the government’s policy relating to tax exemption for small business start-ups. The government’s political structure is also stable enough not disrupt the restaurant’s expected progress (Cairns, et al., 2013).
Economic:
The economy has a stable inflation rate. The restaurant doesn’t expect to suffer from instability in price changes. This favorable economic atmosphere will ensure continued business growth.
Social:
Most of the people surrounding the restaurant location are youth and young families. These will hugely enhance the restaurant’s growth in sales. Trends in the restaurant’s location suggest a high demand for the restaurant’s products specifically Koushry and chicken.
Technological:
The business is strategically positioned to take advantage of the continuous advances in technology. The current rise in importance of social media including Facebook and what sup among others present excellent promotional mediums.
Legal: The country’s consumer laws are favorable and business has positioned its self in such a manner that it will take advantage of favorable consumer laws (David, et al., 2015). Moreover, the restaurant’s internal policy is consistent with government policy on health and legality (Frechette, 2015).
Environmental: The country has a favorable agricultural climate. This ensures that there is constant supply of raw materials.
7.0 Break-even Analysis
Reem Cuisine’s break even analysis has its basis on the average of the first-year calculations for the gross sales by units as well as the operational expenses. These are offered as the per-unit revenue, the per-unit cost as well as the fixed costs (Sahay, et al., 2006). Such conservative assumptions do make for a more precise approximation of genuine risk. The company should be able to break even by the 4th months of operation as it progressively increases its sales increases its sales
| BREAK-EVEN ANALYSIS | |||||
| quarterly Units Break-even | £ 17,255.00 | ||||
| quarterly Revenue Break-even | £ 38,336.00 | ||||
| Assumptions: | |||||
| the Average Per-Unit sales | £ 2.22 | ||||
| the anticipated Per-Unit Variable Cost | £ 0.35 | ||||
| the anticipated Monthly Fixed Cost | £ 32,343.00 | ||||
| LINK Excel.Sheet.12 “C:\\Users\\sam\\Documents\\reem.xlsx” “Sheet2!R2C1:R17C4” \a \f 4 \h \* MERGEFORMATXPricing strategy and menu the items | |||||
| items | Family | One person | |||
| 1 | Koushry | £ 12.00 | £ 3.50 | ||
| 2 | 16 pace of chicken | £ 20.00 | |||
| 3 | 4 pace chicken with rice | £ 10.00 | |||
| 4 | Meat stew with vegetable | £ 20.00 | |||
| 5 | Beef stek with rice and vegetable | £ 10.00 | |||
| 6 | Flafel rape with salat and Tahini | £ 3.50 | |||
| 7 | Lever sandwich with Tahini | £ 3.50 | |||
| 8 | Mandie ( steam rice with herbs and meat or chicken ) | £ 20.00 | |||
| 9 | Staffing grab leaves | £ 15.00 | |||
| 10 | Couscous stew with vegetarians, meat and chicken | £ 20.00 | |||
| 11 | Desert : Basbosa | £ 10.00 | |||
| 12 | Konafa try | £ 15.00 | |||
| 13 | Baklava try | £ 15.00 | |||
| 14 | Zalbia box for up to 5 | £ 1.00 | |||
Wage structure
One employee will be employed and paid a total of £10 per hour worked.
7.1 IMPLEMENTATION STRATEGY
The restaurant’s implementation strategy is drawn to follow the following schedule
Sells volume and revenue
The restaurant’s sales revenue is projected to be £30,000.
Reem Cuisine Statement of Financial Position (Balance Sheet).
| Reem Cuisine Statement of financial position (balance sheet) | |||
| As of 1st /01/2018 | |||
| Non-current assets | Cost of asset | Accumulated deprecation | Book value |
| Delivery van | £ 60,000.00 | £ 48,000.00 | £ 12,000.00 |
| Freezer | £ 735.00 | ||
| Fridges | £ 595.00 | ||
| Stove | £ 950.00 | ||
| Non-current assets | £ 14,280.00 | ||
| Current assets | |||
| cash | £ 75,000.00 | ||
| stock (cash and credit) | £ 39,000.00 | ||
| Receivables | £ 293,220.00 | ||
| Total current assets | £ 407,220.00 | ||
| Total Assets | £ 421,500.00 | ||
| liabilities | |||
| Accrued wages | £ 2,175.00 | ||
| Payables | £ 404,325.00 | ||
| owners’ equity | £ 15,000.00 | ||
| Total liabilities and equity | £ 421,500.00 | ||
STATEMENT OF CASH FLOWS
| Reem Cuisine | |
| Statement of cash flows | |
| Cash received from Operations | |
| Accounts payable | -404,325.00 |
| Accounts receivable | 293,220.00 |
| Net income | 4,755.72 |
| Cash from operations | -106,349.28 |
| Cash flows from Investing activities. | |
| Delivery van | -12,000.00 |
| Freezer | -735 |
| Fridges | -595 |
| Stove | -950 |
| Total cash flow from investing activities | -14,280.00 |
| Owners’ equity | 15,000.00 |
| Net cash flows | -509,954.28 |
Profit And Loss Account (Income and Expenditure Account)
| Reem Cuisine | ||
| Profit and Loss Account (Income and Expenditure Account) | ||
| Sales | £ 30,000.00 | |
| Less: Purchases/Cost of Sales | £ 20,000.00 | |
| Gross Profit | £ 10,000.00 | |
| Less: Expenses | ||
| Rent | £ 800.00 | |
| Council tax | £ 80.00 | |
| Postage & Stationery | £ 50.00 | |
| Advertising | £ 50.00 | |
| Salaries & Wages | £ 13.28 | |
| Gas | £ 320.00 | |
| Water | £ 50.00 | |
| Electricity | £ 80.00 | |
| Insurance | £ 209.00 | |
| insurance for vehicle | £ 150.00 | |
| petrol- vehicle | £ 60.00 | |
| new phone mobile | £ 30.00 | |
| phone line | £ 15.00 | |
| Wi-Fi | £ 15.00 | |
| Ingredients & packaging | £ 2.00 | |
| Training | £ 85.00 | |
| Cost any special license | £ 200.00 | |
| Cost of utensil ( equipment) | £ 3,035.00 | |
| Total expenses | £ 5,244.28 | |
| Net Profit | £ 4,755.72 |
8.0 Backup plan
Development of a flexible Menu
8.1 Short term plan
The dishes will be more broadly written. This will help the business to take advantage of the fluctuations in seasonality as well as supply.
8.2. Long term plan
Development of overseas partners to provide continuous supplies and continuous investment in research.
This plan should also include development partnerships with other companies locally to offer sufficient supply in the event of extreme demand.
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