FOOD INDUSTRY: PREMUIM FOOD SERVICE

EXECUTIVE SUMMARY

We all know that food is the basic requirement of the human being. It would be fulfilled by them in any circumstances. And hence a business plan of food business would be beneficial for starting a new business. We have decided to prepare a business plan on food business in London’s Marylebone High Street. The company which we would be establishing will be named Premium Food Service. Our target audiences are the office going people and people who are staying around the street.The company Premium Food Service has decided to include a range of foods which are demanded by the consumers in its menu card. Customer satisfaction and service quality is the first priority of the company. To fulfill the demand of the customers company has decided to higher some officials for the administration of the day to day business of Premium Food Service. All the marketing plan, organizational plan and operational plan of the company are discussed in the report further. With these plans we believe that we would be able to achieve our vision and mission (Master Plans 2012).

VISION: Our vision is to cover entire London with our best quality of food and services. We believe in triple bottom line philosophy: promoting sustainability, supporting farmers and delivering profits.

MISSION: Our mission is to give customers a better experience when they have food in Premium Food Service. Customer’s satisfaction is the first priority of Premium Food Service which will be achieved by delivering the demanded food within time and of best quality.

London is a perfect location for setting up a food business. There are several companies which are providing food services to the people of London as people in London are economically capable of paying prices for their demanded food as well as they love the delicious food. Examples of these food businesses are Ben and Jacobs of Oxfordshire, Tiger foods limited, Bespoke food, Frosty bites, Bmac Food processing limited, Polish food products limited etc (Yell 2012).     

COMPANY INTRODUCTION

Premium food service is a company in food business having vision of providing better quality foods to its target audience. The aim of premium food services is to encourage the development of local food economy so that the customers can get the benefit of locally produced better food. The company is governed by the members who have equal share in it. Each member of the company has one vote. Members of the company have been involved in the food business since several years and they have now decided to run their business as a company. In this manner the company Premium Food Service comes into existence (Real Food Exeter 2010).

Company has decided to open its food center in Marylebone High Street, London. Members of the company served for many years and got praised by the customers and then decided to go for a big success in the food industry in London.

Products and Services

The members of Premium Food Service have developed several recipes while working as a non organized company. These recipes are definitely going to help the company in deciding its products. The company has decided to divide its business in two categories: first production of the foods and second sales of these produced foods directly to the customers. Premium Food Service has approximately every food available in its menu which demanded by the common consumers of the Marylebone street. The menu will range from food to drinks and desserts (Real Food Exeter 2010). The main components of Premium Food Service to deliver its product and services are given below:

Shop: There will be retail outlets of the company which will take care of sales of food products.

Bakery: Bakery would be producing breads for sales in the shop every day.

Café: There will be catering outlets; which would be using the produced breads in the bakery as well as selling it directly to the customers.

Restaurant: Restaurant will be there for the customers to sit and have their foods.

Learning Spaces: There will also be learning spaces so that the company can train its employees according to the demand of customers and market competition.

Shop of Premium Food Service will be in approximately 800 square feet in Marylebone Street which will include tills and service areas. The main units of the shop are Foods and Vegetables, Bakery Goods, Delicatessen, Meat cabinet, Drinks, and Household Basics like toiletries etc. The production area off the company would cover around 300 square feet. Similarly café will cover around 800 square feet which will include counters, kitchen, and seating areas (Real Food Exeter 2010).

TARGET MARKET

Although the retail sector was declining by 0.6%, according to a survey the food sector in UK was expected to grow by 3.1% in 2009. The reason for this growth is increasing inflation in UK as well as in the world. Foods are the basic requirements of human beings and they will purchase it even at the higher prices. In this scenario fast food business gets the maximum benefits and that is why Premium Food Service has included fast food and bakery in its menu card. There is a big scope of growth in the local food as well. A survey done on the 1501 shoppers found that the local food business has almost doubled in last three years. The market for locally produced foods is three times big than the market for organic fast food (B Plans 2012).

Our target customers are those people who are facing difficulties in purchasing locally produced food around Marylebone Street. Obviously we would be targeting every customer as we are in food business and food is consumed by every human being whether the consumer is male or female, children or young. Also Premium Food Service would be attracting the customers from outside the city who come to the city for job. Our target customers will be those people who believe in purchasing products from a trusted store and know about the different food products. Also we would be targeting those customers who cannot go to supermarkets due to high prices but they expect the value to be provided equally as in super market. As a result these customers agree to pay premium prices for the value that they will get. In short we can say that the customers of Premium Food Service are those people who live in the locality of Marylebone Street as well as that official who live outside but come into the city for their works. Age and gender of the target customer is very flexible as food can be consumed by every age group (B Plans 2012).

MARKETING PLAN

Marketing plan of Premium Food Service will include following points:

Branding: Making Premium Food Service a well known brand is the first priority of the company. For making a brand image obviously company will be required to have a logo and a tagline. The tagline and logo which could be beneficial for the branding of the company are given below:A Healthy Mind in a Healthy Body

This logo and tagline will appear on the menu card, staff uniform, publications etc. The aim of branding is communicating the ethical purpose of the food business (Lorette, K 2012).

Social Networks: As we have already described that the target consumers of Premium Food Service are well educated and informed consumers. They have knowledge of local food and quality. These consumers are already linked with social networks and communicating with them through these social networks would be very easy. Making a social network is very essential for the company if it wants to create awareness among the target consumers.

Suppliers Networks: Premium food service would also be establishing a network of suppliers. With this network reaching to the target consumers would become easy. In this manner we will have a team of suppliers who will be delivering orders at the required places (Hammersmith & Fulham Council 2012).

Events and Courses: Aim of Premium Food Services is to make this organization more than a shop and cafeteria. Premium Food Service would be involved in education and health related programs. It will accomplish the corporate social responsibility of the company as well as make a good image of the company into the mind of the consumers.

Public Relations: Public Relation is the most essential thing for the success of any business. Premium Food Service will be able to make its public relations easily as it is involved in many other activities like educational and health programs and hence it will be able to capture the attraction of media easily (Duct Tape 2008).

Internet: Premium Food Service is planning to create its own websites and it will provide links of the other websites related to the activities of the company. With the help of website consumer will be able to access the information about product and services of the company easily.

Publications: To promote the company we can use print media. Some posters of the logo and tagline of the company will be helpful in creating awareness among the target audience. A4 size posters and A5 size fliers could be distributed around the city to promote the company.

Advertising: The activities mentioned above would be enough for the marketing of the organization as it is a new company and cannot spend too much amount of money on marketing. Obviously company would allocate certain percentage of its fund for marketing efforts but that would be used only if the circumstances will require that (Lorette, K 2012).

A successful example of marketing plan in food business is Nick Barnard from Rude Health. He says that we taste our food daily which is essential for learning. It was beneficial for Rude Health after having a long chain of distributors and suppliers. They did it with the help of brand building, design and communication. Obviously premium food service also needs to follow the route of Rude Health, which is mentioned in the above theories (Pigott, S 2012).

ORGANIZATIONAL PLAN

Premium Food Services will be a community based organization. We will try to provide as many benefits as possible to the community within the organization as well as outside of the organization. This will help the company in achieving the sustainable operations of the business. The profit which Premium Food Service will earn will be allocated for the development of the organization. It will re – invest the profits into public welfare activities as well (Celentano, D 2011).

To govern the business a board of directors is required and members of the organization will appoint a managing director who will take care of the business activities and strategic objectives of the company. Board of directors will call a meeting monthly and will discuss the performance of the company. A performance standard will be set by the top management of the company which would be necessary to follow by the staff of the company. The staff and their work are described below in brief:General Manager: A general manager will be appointed who will take care of the all the business activities of the Premium Food Service. The responsibilities of the general manager will include management of financial resources and investment, quality control, compliance with the legal requirements, appointment of the staff and management of supply chain. General Manager will work as a public face for the company.

Assistance Manager: Assistant manager will be appointed to look the organizational activities if the general manager is not present. When General Manager is present Assistant Manager will work in the cafeteria or shop according to the requirement of the company.

Administration Assistance: Responsibilities of the administration assistant will be to make a long term relationship with our suppliers. He/ She will take care of the payments due of the company as well as of the customers i.e. suppliers. Also administration assistance will be responsible for the raw material management (Celentano, D 2011).

Apart from above top management general staff will be required who will be taking care of the production and delivery of the food at the café and restaurants. For example cooks, waters etc. These staff member will be working on hourly basis and will get paid accordingly. While recruiting the general staff General Manager will ensure that the staff are able to work according to the quality standard of the company or not.

OPERATIONAL PLAN

Operational plan of a food company includes mainly three parts, first arrangement of raw material, second, conversion of the raw material into product and third delivery of the produced product to the consumers. For Premium Food Service raw material will be vegetables and fruits which it can buy from the formers near Marylebone High Street. While purchasing the raw material that is vegetables and other things from the farmers the company will make sure that it is making a long term relationship with raw material suppliers (Weese, J et al. 2007). Similarly in production of food Premium Food Service will take care that it is ensuring the health priorities of the consumers. Premium Food Service will prefer the foods which are healthy as well as tasty. Also a variety of flavors will be available in the menu card so that the consumers can choose according to their demand. After preparation of food another most important part of the food business is serving. While serving food to the consumers a person represents the culture of the company. People who will be serving the food will be trained properly according to the company’s culture. Premium Food Service’s aim is to give such a feeling or experience to the consumer so that he will come to the Premium Food Service again and again.For production of healthy and tasty food company will be in the need of many types of equipment like mixture which have the capacity to mix the required material in large quantity, tanks in which the prepared food can be kept and the most important thing a big freezer. All these things are required to keep the food healthy and tasty. The company will prepare plans so that it can get the orders of the consumers and cook the food in time. The time between the order placed and delivery of food plays a big role in the customer satisfaction. If consumers will have to wait for a long time they will get dissatisfied and will stop coming to the Premium Food Service again. Hence, in short we can say that operational plan of the company is to ensure that the consumers are getting their demanded food within time and are gaining a better experience (Pigott, S 2012).

The most important thing in our operational plan is ensuring the safety while eating the food. There are many risk associated to the preparation of food for example sometimes wrong combination of vegetables make the food poisonous. We will take care of all these risks. There are also rules and regulations made by the regulatory authority to write down the safety management system for food business so that the food company can prevent the problems of safety besides on reacting to the problems after the incident has taken place. There are many examples of unsafe food like food affected by bacteria. This problem is known as ‘hazards’ in food business. Similarly, preventing food from being contaminated by separating them from raw food is another example of food prevention which is known as ‘control’. The other examples of operational plan are ‘good hygiene practice’. Premium food service will practice all these theories in its operational plan and hence it will follow the rules and regulations as well as provide a safe food to its clients (Croydon 2012).

FINANCIAL PLAN

Financial projections of the company are given below. These projections are based on the estimated business of the company. The company officials have already been in the business of food and they have historical data available to them. Based on those historical data some financial projections are done which are explained below:

PREMIUM FOOD SERVICE: Pro Forma Income Statement (All figure in GBP)

Assumptions:

1. Net Sales is based on the assumed sales and prices of the foods. It is assumed that the company will be able to capture at least one percent market share of the food business in Marylebone Street in its initial year. Suppose if company sold 10000 units of a particular food product which is priced at GBP 3. Therefore, the revenue earned from this unit is GBP 30000. Similarly the other revenues are calculated.

2. Cost of goods sold includes the expenses like packaging, ingredients, leveling, serving etc.

3. In the first year the owners of the company will not draw any money from the profits and all the money will be reinvested for the future growth and production purposes.

4. Income tax is considered as 30 % of the total income (Restaurant Owner 2012).

Premium Food Service: Pro Forma Cash Flow Statement

Premium Food Service: Pro Forma Balance Sheet (All figures in GBP)

 NOTE: The balance sheet, cash flow statement and income statement of the company is based on the estimated business of the Premium Food Service in first year. Similarly, the balance sheet and other financial statements can be shown for next two or three years.

Also the company can use several techniques of financial evaluation to evaluate the performance of the business for the very first year. But since the figures are estimation based it will not provide a proper analysis of the company. Yes the techniques like ratio analysis and net present value can give a better idea about the growth of the business (Restaurant Owner 2012).CONCLUSION

Food business is a very profitable business and that is why we have selected to prepare a business plan on food business. Food is the basic necessity of the people and they spend on it according to their requirement and demand. We have selected Marylebone High Street for our company as our target audiences are the people who go to offices as well as the local people around high street. We have made our vision to cover entire London within three to five years of our business. And for that we need to establish a good organizational team which delivers its services keeping the quality of the services in mind (Smith, C 2012).

With our marketing plan we have decided to create awareness among the target audience and then organizational plan has been made for the day to day activities of the food business. A general manager, an assistant manager, an administrative staff and other staff will be recruited to perform the organizational activities. We are sure that our organizational members will be committed to their works and with their hard work and commitment we would be able to achieve our targets easily (Smith, C 2012).

Not only profit is our main aim but also we will take care of other responsibilities like corporate social responsibilities in which we can involve ourselves in social events so that we can make a good image of our company into the mind of the consumers. We will also ensure that our operations are sustainable and for that we will take care of all the aspects of sustainability i.e. environment, social and economic. We believe that our triple bottom line philosophy of promoting sustainability, supporting farmers and delivering profits will make us capable of achieving our vision.

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