Restaurant Concepts and Management: 1403694

Introduction
The purpose of this section of the assessment is to evaluate the role of menu as a strategic tool and develop the menu based on the concept paper identified. It also evaluates the human resource implications and the marketing mix associated with it. Therefore, the marketing aspect of the firm will be clearly outlined in this part of the assignment.
Menu as a strategic tool
Menu is one of the controllable aspect of the strategy and can be considered as the key element used to portray the marketing strategy of organizations in the country. It can helps the consumers to identify the factors satisfying their own needs. The menu list including the prices and products is essential means of communicating the offerings of the restaurant and sets up the expectation of the consumers (Torres, 2016). The intangible factors such as consumer preferences and current food trends have a significant influence on the choice of products among the consumers (Petrc, Mikinac & Edmonds, 2019). The whole point of introducing the menu to the consumers is to inform them regarding the choices available so that they can identify the ones that can fulfil their needs and wants. Moreover, various menus provide information regarding the ingredients used, preparation techniques and nutritional content which significantly influences the value of items offered and helps consumers in weighing each item with one another.
The new menu developed also goes through the product lifecycle phases which includes the introduction, growth, maturity and decline stages. In the introduction stage, the role of the menu is to inform consumers about the restaurant offering and kick start the sales revenue (Maltese, Giachino & Bonadonna, 2016). However, it takes time for the company to gain actual profit margin. In case of the growth stage, the marketing efforts made in the previous stage has significant influences the sales of the company which results in profit generation. However, the profit margin and revenue levels decreases when the menu items reaches the maturity stage and begins to decline at the late maturity stage (Torres, 2016). The competition is significantly high in New Zealand so developing a new concept will have a short term competitive advantage as companies will aim to develop similar items to remain competitive in the market.
Photos, organization, readability, simplicity, colour and information are key factors affecting the success of the menu design (Torres, 2016). The main purpose of the menu is to prioritize the objective of the business as it is relevant to the beverages and food products offered by the company (Narimawati & Pangestu, 2020, July). Therefore, it should include visionary goals followed by tactical goals but should focus on the value of the offerings. Value has been identified as a key factor affecting the sales volume among the organization. For example, simply writing fillets of sole bonne femme would add low value to the consumers when compared to presenting it as fillets of sole bonne femme served in a white sauce with fresh mushrooms and potato borders. The inclusion of words like “and” and “with” adds value to the consumers which makes the dishes more informative and has a better sales appeal (Narimawati & Pangestu, 2020, July). The words like plain, boiled, hashed, minced and mashed should not be used on the menu. Instead of using the word plain, the word natural has a better positive impact on the consumers. The association of few words such as fresh tender, green, young, spring, new, chilled, special, choice are few words enhancing the quality of the food appeal. It makes the food much more attractive for the consumers.
Menu development based on the concept

The menu has been developed based on the objectives and gap identified in the market. The menu has been specially designed to bring out the essence of the north Indian dishes with authentic use of spices.
The menu design also needs to be authentic and represent the value which is being added to the product. The menu design are divided into static menu, A’la Carte Menu, Table d’hote Menu, Du Jour Menu and Cycle Menu. However, in this scenario a static menu will be developed as the items will be segregated effectively into different sections.
A classic design as mentioned above will be used as the design for the menu as it portrays the classy and value offered by the restaurant. The menu holds significant importance for the consumers and it can be used to improve the value offered to the consumers by using effective menu and use of effective words that highlights the value provided.
Human resource implications
The menu developed is quite lengthy and vivid which implies that the restaurant will require adequate amount of staffs to deliver all the dishes on time and prep for them on a daily basis (Hedayati Mehdiabadi & Li 2016). Therefore, the restaurant will hire one head chef, two sous chefs, five station and line chefs, three commis chefs and two kitchen porters. On the other hand, a manager will be appointed to manage the orders and communicate effective with the consumers and the staffs to offer the best quality service. The company will hire a dishwasher, service staffs such as waitresses and waiters. Therefore, in overall the restaurant will be expected to hire to 20 employees for ensuring full functionality of the restaurant.
The menu developed will have a significant impact on the staffs especially the chefs and waiters as they have to be prepared for the variety of orders they cater to and prepare for it from beforehand. The menu consists of 60 items out of which 50 items will require time to prepare and have a distinctive taste so chefs and waiters will be put under pressure at all times. However, the phenomenon will be experienced during the growth and initial part of the maturity phase as it is the time with highest sales volumes and order request. Moreover, the restaurant also offers takeaways so developing products so that the amount of orders to be dealt will be huge based on the expected sales and popularity of the cuisine.
Marketing mix
product The product includes the north Indian dishes which includes entrees, main course, rice, breads, desserts and drinks. The restaurant will include both non vegetarian and vegetarian dishes which brings the essence of North India (Wu, & Li 2018). The portion offered will be considerable with use of authentic Indian spices. The company will also offer takeways with the same menu.
price The prices of the offerings will be moderately prices and the restaurant will use cost leadership pricing strategy and offer products at a low profit margin (Kim & Kim, 2018). The company will also use competitive pricing to ensure that the products are priced at par with the other cuisines especially other Asian cuisines which are popular in New Zealand. The average cost of a meal will be around $25 which is reasonable compared to any classy restaurant.
place The location of the restaurant is a key factor as it helps in attracting more consumers (Othman et al. 2019). The restaurant will be opened close to the Queens Arcade in New Zealand to ensure that larger crowd can be attracted towards the offerings.
Promotion In term of promotion, the restaurant will use both digital and traditional marketing methods to increase their brand awareness in the market. Posters and hoardings will be used in high end streets and busy areas such as malls and airports to increase awareness. Social media platforms will be used to promote the offering and the discounts on the food offered by the company. The company will also form partnership with delivery services to ensure that larger consumers can order takeaway food and penetrate the market effectively. Takeaway is a key aspect of the services to develop partnership with online ordering services is a key to increase the popularity of the takeaways.
process The process will start with receiving orders and move to preparing dishes based on the orders and delivering them. The takeaways will be packed differently in compared to the food served within the restaurant. The chefs will prep ingredients beforehand to ensure that the food can be delivered within 30 minutes of ordering the food.
people The restaurant will hire one head chef, two sous chefs, five station and line chefs, three commis chefs and two kitchen porters. On the other hand, a manager will be appointed to manage the orders and communicate effective with the consumers and the staffs to offer the best quality service. The company will hire a dishwasher, service staffs such as waitresses and waiters. Therefore, in overall the restaurant will be expected to hire to 20 employees for ensuring full functionality of the restaurant.
Physical evidence Physical evidence will include receipts, brochures and discounts coupons shared for promoting the brand.

References
Hedayati Mehdiabadi, A., & Li, J. (2016). Understanding talent development and implications for human resource development: an integrative literature review. Human Resource Development Review, 15(3), 263-294.
Kim, M. S., & Kim, J. (2018). Linking marketing mix elements to passion-driven behavior toward a brand. International Journal of Contemporary Hospitality Management.
Maltese, F., Giachino, C., & Bonadonna, A. (2016). The safeguarding of Italian eno-gastronomic tradition and culture around the world: A strategic tool to enhance the restaurant services. Calitatea, 17(154), 91.
Narimawati, U., & Pangestu, A. (2020, July). Designing Electronic Menu Applications for Restaurant Businesses. In IOP Conference Series: Materials Science and Engineering (Vol. 879, No. 1, p. 012120). IOP Publishing.
Othman, B., Harun, A., Rashid, W., Nazeer, S., Kassim, A., & Kadhim, K. (2019). The influences of service marketing mix on customer loyalty towards Umrah travel agents: Evidence from Malaysia. Management Science Letters, 9(6), 865-876.
Petrc, A. Š., Mikinac, K., & Edmonds, I. (2019). STRATEGIC APPROACHES TO MENU TRANSLATION ANALYSIS. Tourism in South East Europe…, 5, 689-703.
Torres, A. M. (2016). Electronic Menu and Ordering Application System: A Strategic Tool for Customer Satisfaction and Profit Enhancement. International Journal Science and Technology, https://doi. org/10.14257/ijunesst, 4, 401-410.
Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in social commerce. Internet Research.

Start Up Capital

Sources of Capital Startup Expenses
     
Owners’ Investment (name & % ownership)  Buildings / Real Estate 
Your name & % ownership $    100,000 Purchase $   50,000
Venture Capital        500,000 Construction       50,000
Other Investor                     – Remodeling       50,000
Other Investor                     – Other                  –
Total Investment $    600,000 Total Buildings and R / E $ 150,000
     
Bank Loans  Leasehold Improvements 
ANZ bank $    500,000 Plumbing $   10,000
Bank 2                     – Ventilation         9,000
Bank 3                     – Electricity       12,000
Bank 4                     – Cosmetic Upgrades       12,000
Total Bank Loans $    500,000 Total L / H Improvements $   43,000
     
Other Loans  Capital Equipment List 
Source 1 $                  – Furniture $   15,000
Source 2                     – Equipment    100,000
Total Other Loans $                  – Fixtures       10,000
   Machinery       75,000
   Other                  –
Summary Statement Total Capital Equipment $ 200,000
     
Sources of Capital  Location and Admin Expenses 
Owners’ and Other Investments $    600,000 Rental $   35,000
Bank Loans       500,000 Utility Deposits       25,000
Other Loans                     – Legal and Accounting Fees         4,000
Total Source of Funds $ 1,100,000 Prepaid Insurance       35,000
   Pre-opening Salaries    180,000
Startup Expenses  Other                  –
Bldgs / Real Estate $    150,000 Total Location and Admin Expenses $ 279,000
Leasehold Improvements          43,000   
Capital Equipment       200,000 Opening Inventory 
Location / Admin Expenses       279,000 Protein $      5,000
Opening Inventory          15,000 Spices         1,000
Advertising / Promo Expenses          28,000 Vegetables         1,000
Other Expenses       220,000 Cutlery and crockery         3,000
Total Startup Expenses $    935,000 Sweets         5,000
   Total Inventory $   15,000
     
   Advertising and Promotional Expenses 
   Advertising $   20,000
   Signage         3,000
   Printing         2,000
   Travel & Entertainment         2,000
   Other / Additional categories         1,000
   Total Adv and Promo expenses $   28,000
     
   Payroll and payroll taxes 
   Salary for staffs $ 160,000
   Salary for managers       60,000
   Total Payroll and payroll taxes $ 220,000

Profit and Loss Statement

Profit and loss projections      
        
        
Year-by-year profit and loss assumptions
   Year 1Year 2Year 3Year 4Year 5
 Annual cumulative price (revenue) increase2.00%4.00%6.00%8.00%
 Annual cumulative inflation (expense) increase2.00%4.00%6.00%8.00%
 Interest rate on ending cash balance 0.50%0.50%0.50%0.50%0.50%
        
        
   Year 1Year 2Year 3Year 4Year 5
Revenue      
 Gross revenue $925,000$943,500$981,240$1,040,114$1,123,324
 Cost of goods sold $246,250$251,175$261,222$276,895$299,047
 Gross margin $678,750 $692,325 $720,018 $763,219 $824,277
        
 Other revenue [source] $0$0$0$0$0
 Interest income $0$0$0$0$0
 Total revenue $678,750 $692,325 $720,018 $763,219 $824,277
        
Operating expenses      
 Sales and marketing $28,000$28,560$29,702$31,485$34,003
 Payroll and payroll taxes $220,000$224,400$233,376$247,379$267,169
 Depreciation $78,600$80,172$81,744$83,316$84,888
 Maintenance, repair, and overhaul $4,000$4,080$4,160$4,240$4,320
 Total operating expenses $330,600 $337,212 $348,982 $366,419 $390,380
        
Operating income $348,150 $355,113 $371,036 $396,800 $433,896
        
 Interest expense on long-term debt $17,992$14,300$10,459$6,465$2,312
        
Operating income before other items $330,158 $340,813 $360,576 $390,335 $431,585
        
 Loss (gain) on sale of assets $0$0$0$0$0
 Other unusual expenses (income) $0$0$0$0$0
        
Earnings before taxes $330,158 $340,813 $360,576 $390,335 $431,585
        
Taxes on income30%$99,047$102,244$108,173$117,100$129,475
        
Net income (loss) $231,111 $238,569 $252,403 $273,234 $302,109
Cumulative income $231,111 $469,680 $722,083 $995,318 $1,297,427

Breakeven Analysis

Balance Sheet

Balance sheet projections      
        
        
AssetsInitial balanceYear 1Year 2Year 3Year 4Year 5
 Cash and short-term investments$165,000$732,301$850,653$973,443$1,104,336$1,253,864
 Accounts receivable$46,250$47,175$49,062$52,006$56,166$56,166
 Total inventory$18,500.00$18,870.00$19,624.80$20,802.29$22,466.47$22,466
 Prepaid expenses5,0005,0005,0005,0005,000$5,000
 Deferred income tax1,0001,0001,0001,0001,000$1,000
 Other current assets20,00020,00020,00020,00020,000$20,000
 Total current assets$255,750 $824,346 $945,340 $1,072,251 $1,208,969 $1,358,497
        
 Buildings$150,000$150,000$150,000$150,000$150,000$150,000
 Land000000
 Capital improvements $                        43,00043,00043,00043,00043,00043,000
 Machinery and equipment $                     200,000200,000200,000200,000200,000200,000
 Less: Accumulated depreciation expense0 78,600 158,772 240,516 323,832 408,720
 Net property/equipment$393,000 $314,400 $234,228 $152,484 $69,168 ($15,720)
        
 Goodwill$3,000$0$0$0$0$0
 Deferred income tax1,0001,0001,0001,0001,0001,000
 Long-term investments50,00050,00050,00050,00050,00050,000
 Deposits10,00010,00010,00010,00010,00010,000
 Other long-term assets30,00030,00030,00030,00030,00030,000
 Total assets$742,750 $1,229,746 $1,270,568 $1,315,735 $1,369,137 $1,433,777
        
LiabilitiesInitial balanceYear 1Year 2Year 3Year 4Year 5
 Accounts payable$12,313$12,559$13,061$13,845$14,952$14,952
 Accrued expenses6,0006,0006,0006,0006,0006,000
 Notes payable/short-term debt7,0007,0007,0007,0007,0007,000
 Capital leases35,00035,00035,00035,00035,00035,000
 Other current liabilities      
 Total current liabilities$60,313 $60,559 $61,061 $61,845 $62,952 $62,952
        
 Long-term debt from loan payment calculator                          50,000 $407,686 $311,680 $211,834 $107,994 $0
 Other long-term debt$0$0$0$0$0$0
 Total debt$110,313 $468,245 $372,741 $273,679 $170,946 $62,952
        
 Other liabilities0 00000
        
 Total liabilities$110,313 $468,245 $372,741 $273,679 $170,946 $62,952
        
Equity Initial balanceYear 1Year 2Year 3Year 4Year 5
 Owner’s equity (common) $                     600,000$600,000$600,000$600,000$600,000$600,000
 Paid-in capital000000
 Preferred equity000000
 Retained earnings00 0 0 0 0
 Total equity$600,000 $600,000 $600,000 $600,000 $600,000 $600,000
        
 Total liabilities and equity$710,313 $1,068,245 $972,741 $873,679 $770,946 $662,952
        

Cash Flow Statement

Cash flow      
        
        
  Year 1Year 2Year 3Year 4Year 5Total
Operating activities      
 Net income$231,111$238,569$252,403$273,234$302,109$1,297,427
 Depreciation$78,600$80,172$81,744$83,316$84,888$408,720
 Accounts receivable($925)($1,887)($2,944)($4,160)$0($9,916)
 Inventories($370)($755)($1,177)($1,664)$0($3,966)
 Accounts payable$246$502$784$1,108$0$2,640
 Amortization00$0$0$0$0
 Other liabilities00$0$0$0$0
 Other operating cash flow items00$0$0$0$0
 Total operating activities$308,662$316,602$330,810$351,833$386,997$1,694,904
       $0
Investing activities     $0
 Capital expenditures$0$0$0$0$0$0
 Acquisition of business00000$0
 Sale of fixed assets($99,047)($102,244)($108,173)($117,100)($129,475)($556,040)
 Other investing cash flow items00000$0
 Total investing activities($99,047)($102,244)($108,173)($117,100)($129,475)($556,040)
        
Financing activities      
 Long-term debt/financing$357,686($96,006)($99,846)($103,840)($107,994)($50,000)
 Preferred stock000000
 Total cash dividends paid000000
 Common stock000000
 Other financing cash flow items000000
 Total financing activities$357,686($96,006)($99,846)($103,840)($107,994)($50,000)
        
Cumulative cash flow$567,301$118,352$122,791$130,893$149,528$1,088,864
        
Beginning cash balance$165,000$732,301$850,653$973,443$1,104,336 
Ending cash balance$732,301$850,653$973,443$1,104,336$1,253,864 

Return of Investment

Net Income Method   Original Investment Value  $935,000 Net Income  $302,109 ROI  32.3%    Capital Gain Method   Original Share Price  $12.50 Current Share Price  $15.20 ROI  21.6%    Total Return Method   Original Share Price  $12.50 Total Dividends Received  $1.25 Current Share Price  $15.20 ROI  31.6%    Annualized ROI   Original Share Price  $12.50 Sale Share Price  $15.20 Purchase Date  1/1/2021Sale Date  8/24/2021Annualized ROI  35.5%