Background Information of the Business
Saudi All Seasons Restaurant is a business that will be located in Saudi. The restaurant will be launched on 1st April 1440 H, which will start as a startup business (TIMES, G.) I will be the manager of my business, and I will manage most of the business activities. At least ten individuals will run it. Saudi All Seasons Restaurant will sell food and drinks; the business will be growing exogenously depending on the number of customers and the industry rate.
The restaurant’s main goals and objectives will include:
- Attracting many potential and lasting customers.
- Providing quality food and drinks to customers.
- Making a higher profit margin of about 40% per year.
- Expanding the business to another outlet with the same and other products.
- Creating employment opportunities for the community.
Most of the business financial grounds will be my efforts. Therefore profits will become the most important thing for me as well as quality. Making improvements will never exist, honesty and hard work will go hand in hand, and other people will never sidetrack me.
Saudi All Seasons Restaurant will mainly market the food and drinks to travellers and university students (Yousaf, S.(2018). This is because most travellers need fast food and most university students like ready-made foods and beverages.
Since it’s a restaurant dealing with food and drinks, it will be under the hotel industry. The increase in the number of universities in Saudi and infrastructure development will boost my business because there will be an increase in students and travellers (Tchamyou, V (2017).
A business must have some strengths and weaknesses. My business strength will be that I have enough knowledge in the industry with knowledgeable and committed employees. Its liability will include that it’s a startup business hence new in the market. My competitor’s strength will consist of that they existed for long in the market with ready customers. As for competition purposes, I will make more friendships with students to attract them and bring new foods and drinks are in the place.
I will solely own the business (sole proprietorship) with personal savings and borrowings from financial institutions to start and run it. This is because only a proprietorship business is easy to start and run, and I will oversee every activity as the manager. The profits made at the end of the year will also be solely mine.
Products and Services
Saudi All Season Restaurant will deal with ready-made foods and drinks. The food sold will include pilau, chips, chicken, beef, biriani, and all types of snacks. It will, however, exempt itself from selling haram food, including pork and poisonous foods. The food will be served in the restaurant in clean utensils or packed in recommended packets for takeaways. The food will be of the best quality since it will be done fresh from cooking.
Since the restaurant will also sell drinks, it will deal with processed and freshly made drinks. The glasses will include water, milk, soda, yoghurt, processed juices, and freshly blended fruit juice. All beverages will be non-alcoholic, and any alcoholic drinks such as beers, wines, and spirits will not be sold or allowed to be drunk from the restaurant. All the drinks will be served in the restaurant in clean glasses or bottled in clean bottles and packets for the customers who wish for the takeaways. The restaurant will not sell any expiry or poisoned drinks (Brady, M. (2017).
Competitive Advantage and Disadvantages
The following competitive advantages will give my business more gains over the competitor’s business. I will first ensure that many of my business raw materials come from local farmers who sell at relatively low prices, such as fruits and quality rice. These will reduce the cost used in food production. Accessing the most effective and promising distribution channel will also be a competitive business advantage. I will also ensure that my products are significantly differentiated from the competitors, such as blending new spiced juice. The fact that the business is solely mine is a competitive advantage since all the profits at the end of the period are mine.
As for the competitive disadvantages, it will be good t my competitor’s prosperity. The following will give my competitors advantages such that my competitors may be selling all foods, including pork and all drinks, including alcoholic beverages. These will make all kinds of customers buy from their restaurants, including those who use my business’s exemptable products. Also, most of my competitors will be running partnerships and corporations. It may be a competitive disadvantage to my business since my business will be competing with more prominent restaurants.
The main reasons for conducting market research for my business know my target market, customers and getting their opinions on their preferential products. I will mainly use primary data by conducting customers interview, direct observations, and creating a simple user persona. Direct observation of about 4 out of 5 customers and consultations of about 3 out of 4 customers will give me an explicit knowledge of my customers.
Industry and Product
The hotel industry in Saudi is a more significant industry with many hotels and restaurants. However, the demand in the hotel industry is high due to many people, especially university students. However, some business trends include increasing and decreasing customers, customers preferring high quality and tasty food and drinks. My business, however small, can manage to grow since it will provide customer satisfaction. Saudi restaurants will experience entry barriers, such as obtaining a license clearance before operating and strong brand identity (Alshehri, (2019). Therefore, it will have to get a license before entry and build its name and brand as fast as possible. The increase in technology will help my customers place their orders online and view our available products.
The restaurant will mainly sell foods and drinks. They will be of high quality and meet the customer’s specifications. The products will offer a healthy advantage to the customers and save time, most travellers and students.
Customer and Competition
The restaurant’s primary customers will be non-alcoholic users, mostly travellers and university students who need first food and drinks. The customer will be of all ages since no alcohol will be sold.
My business will compete with bars and other restaurants which sell pork and alcoholic drinks. It will, however, make sure that food and beverages are of quality and tasty for competitive advantage.
Strategy, Promotion, Prices and Distributions
Frequently customer networking will be the business strategy. Product promotion will be done through menus and the internet, while credit and discount policy will be given to customers. The prices will be according to the quality of the products and some factors such as inflation. The intended customers will make their purchase decision according to product quality. The restaurant will be at a permanent point; however, some door delivery can be made.
The business will acquire a license before starting. Healthy food and drinks will be sold. Cleanness and health will be the business’s core vision, and no alcoholic beverage will be taken from the restaurant. The employees will have medical cover in case of an injury in the workplace.
Personnel, Inventory and Supplier
The business will employ ten individuals. A supervisor, a cashier, two cooks, three waiters, two cleaners, and a manager(I). The supervisor will plan activities and should have at least a certificate in H.R. earning 150 USD Monthly. The cashier will receive money, keep records, and have a Financial diploma relating to a course earning 130 USD Monthly. The cooks will do the cooking and will make 110 USD Monthly. The waiters will serve food and drinks, earning 100 USD, while the cleaners will ensure cleanness and earn 85 USD Monthly.
The restaurant will keep raw materials such as uncooked rice and fruits, supplies such as milk, and finished goods, including soft drinks. There will be seasonal buildups in times of admission of new students. The ordering intervals will depend on the raw materials, supplies, and finished goods.
The leading suppliers will be soft drink companies (CocaCola) and local farmers. The business will make credit agreements with its suppliers, and the supplies will be delivered to the restaurant.
A 12-Month Profit and Loss Projection
This projection will depend on the cost of the materials needed to start and run the business; if the price is higher than the available finances, a profit may be experienced. It will also depend on customer behaviour and the rate of demand for food and drinks. An increase in the restaurant’s food and beverages will increase the profit margins, and a decrease in the request will result in a loss.
A Cash Flow Projection
The Saudi All Season Restaurant will be operating daily from 6 am to 10 pm, with an exemption of Fridays where it will be closed for 4 hours from 11 am to 3 pm, and Sundays, it will be opened at 1 pm. Every employee must report to work as early as the restaurant’s opening hours unless with an early apology. Negligence to timekeeping by the employees may result in salary deduction respective to the number of days missed. Any unintended injury or sickness got from the production activities will be guaranteed medical cover.
The business cash flow will include all the items needed to start it, raw materials, labour required, and other costs. The salaries set aside for the employees will also be included. The supervisor will be 150 USD,
Casher will receive 130 USD, Cooks will get 110 USD, Waiters will earn 100 USD, and the cleaners 85 USD Monthly.
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A Projected Balance Sheet
The business will include all the items described in the cash flow with their totals. The balance sheet will show the total amount which will be used in the operations.
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Sources of Finance
The Saudi All Seasons Restaurant will require at least 1991 USD to start. This amount will not be enough to run the business but only for opening it. For instance, I will need to make frequent purchases of the food materials, drinks, monthly payments of the employees, and the electricity and water services will need to be paid every six months. I have 1000 USD for the business from my savings and am looking forward to getting the remaining 991 USD from financial institutions and relatives.
This business plan will be a long-term plan sting to the business’s primary goals and objectives stated. The existence of worthwhile and potential customers will significantly help in the success of this business plan. The importance of the business, such as making fast foods and drinks readily available, fill the market gap, and creating employment opportunities for the community, will make it a success.
The plan’s competitive advantage should also be put into practice, such as absenteeism experienced by other hotel industry businesses. A good management plan should also be executed such that the manager (owner) should organize well the business activities and get the necessary resources to run them, the supervisor should be self-responsible and should be able to make others responsible, the cashier should be conversant with money records and be a person of money discipline, the cooks should be clean individuals, the waiters should be friendly and be able to portray self-confidence among a crowd, and the cleaners should be able to practice the values of cleanness around the work environment.
All business profits which will be received should not be used for personal use and pleasure. It should expand the business and maybe think of another profitable business idea outside the food industry. In case that the company experiences losses, it will not be the end of everything, and the owner should think of how to uplift it again (Mullins, J. (2017). A failure or loss does not kill everything. Proper market research and increasing customer connectivity can help the business from incurring losses.
The most crucial way of succeeding in a business is by having a good business plan and sticking to it. All the activities appearing in a business plan should be achievable by the owner, especially the expected business’s financial plan. Each activity planned should also be done up to its completion.
- TIMES, G. Trade ministers, without US and China, call for urgent WTO reforms Yousaf, S., & Xiucheng, F. (2018). Halal culinary and tourism marketing strategies on government websites: A preliminary analysis. Tourism Management, 68, 423-443.
- Tchamyou, V. S. (2017). The role of knowledge economy in African business. Journal of the Knowledge Economy, 8(4), 1189-1228
- Alshehri, F. A. D. (2019). Is Saudi Arabia’s Business Environment Conducive to Attracting Foreign Direct Investment in Non-Oil Sectors? Challenges and Implications (Doctoral dissertation, Victoria University).
- Brady, M. (2017). Teaching ‘Proper’Drinking?: Clubs and pubs in Indigenous Australia. ANU Press.
- Mullins, J. (2017). The new business road test: what entrepreneurs and investors should do before launching a lean start-up. Pearson UK.