Executive Summary
The business plan of Wallace Restaurant is a candid disclosure of the business proposal that is directed to the financial lenders and investors. It provides realistic business expectations and answers questions relating to the profitability of the business venture. The business plan highlights the strengths and risks that the Wallace Restaurant is likely to experience in its operations. The restaurant owners have a financial commitment and a vested stake in ensuring the restaurant’s economic success. The restaurant’s primary intent is to have a definitive, marketing, financial and business plan that serves the need for capital financing and guides the firm’s operations daily. The owners of the firm have taken all the precautions and focus all their energy on realistic projections. The firm’s business and financial models are based on the industry’s facts as opposed to optimism. The business concept is derived from detailed market analysis and is built to satisfy unmet consumer wants. The restaurant’s financial plan ensures adequate capitalization and includes a contingency buffer to ensure that the business is not underfinanced. The program also presents a substantial risk mitigation plan based on traditional and contemporary risks associated with restaurant failure. The list does not dismiss the troubles but has identified the right mitigation strategies for restaurant failure risks. The management team has over 15 years of combined experience. They have been involved with several restaurant openings in Florida and other parts of the United States. The restaurant’s launch’s total capital requirement is $650, 000 of which $560, 000 will be used as a start-up capital while $90000 will be used as a business cash reserve.
The Mission of Wallace Restaurant
Wallace intends to become an inspiring restaurant with excellent food and electric atmosphere. The restaurant’s mission is to have superior food selection and exceptional customer service with customer satisfaction being our primary objective. Wallace Restaurant will be of choice to all people, the old, young, couples and singles, and males or females.
The welfare of the employees, training, and participation is equally suitable for our restaurant’s success. The restaurant will create an environment where all employees are treated with the utmost respect and feel like part of its success.
The business concept combines a variety of modalities, including excellent staff, entertainment, and ambience environment. A combination of these only modalities will allow the employees to create a sense of place necessary for enabling us to reach our goal of the dining experience. Wallace Restaurant offers profits for the investors and rewards for the staff.
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Keys to Success
- Product quality comprising of great food, atmosphere, and service
- Focus on employee retention. Employee development and retention will be part of the critical success strategies of the firm. Through these plans, the firm will find it easy to attract seasoned professionals and created a committed workforce.
- Cost control strategies. The firm focuses on cost control at all times. It will be a primary function of the restaurant from the onset. Cost control will include managing the numbers and reducing the firm’s cost to meet the profit margin. Some of the primary elements that the firm will control to meet the profit margin comprise of order taking, positioning, service preparation, purchasing, receiving, storage accounts payable, bank deposits and bank receipts.
- Unique and Innovation. Our primary intention is to create a unique and innovative dining atmosphere that differentiates us from other industry restaurants. The unique design and décor will allow us to stand out among our competitors in the industry. We will focus on an electric atmosphere to offer an excellent dining environment for our customers.
- Menu. Wallace restaurant will offer a menu that appeals to a wide variety of clientele with regional and global specialities.
Objectives
- These objectives reflect the operation of Wallace Restaurant in the next three years. The goals of the restaurant comprise of the following:
- Keeping the cost of food at less than 30% of the total revenue
- Keeping the labour costs between 32% and 35% of the total sales.
- Maintaining the average sales at $1.2 million to $1.5 million per year.
- Expanding our market niche through marketing and advertising strategies to other neighbouring suburbs.
- Improving the gross margin from 63.2% to 66.8% in the first year of operation. The restaurant’s overall target is to reach a gross profit margin of 70.3% by the end of the third year.
Company Summary
The Design
Wallace Restaurant is unique to the town of Orlando. The restaurant features a full-service dining and a cosmopolitan bar. The customers are provided with various offerings, including entertainment and dining options within a single entity. The restaurant menu appeals to a variety of groups, including the old, young, male and female. The facility is also committed to providing customers with a different experience on each visit. The atmosphere can cater to young and adult crowd since it will be situated on 2980 square feet. It will provide seating capacity for 120 patrons. The facility will also incorporate a dining patio, parking, and zoning. The advisory board will play a critical role in deciding lease negotiation and site selection.
The Menu
Wallace Restaurant focuses on the growing population of the state of Florida. It intends to provide a menu that appeals to the diverse group of people that resides in the state. The menu will provide the residents with a selection of food choices to cater to the multi-ethnic communities’ needs. Wallace Restaurant will incorporate international cuisine in a single menu. Wallace menu will be a perfect fit for the Florida residents.
The Management
The management team will comprise experienced personnel with 34 years of combined experience in hotel management. The management team has a vast experience in marketing, business management, marketing, and food and hotel management.
Company Ownership
The restaurant will start as a limited liability corporation. It will be owned by its founders, including James Wanton and Henry Gorbachev. James Wanton will perform as the Chief Executive and Chief Chef. Mr Henry Gorbachev will act as the managing director of the restaurant.
Mr James Wanton has worked in the restaurant industry for an extended period in Washington DC, Toronto, and Canada. He is an accomplished restaurateur and has owned several other full-service restaurants. Currently, Mr James Wanton owns other restaurants such as Birchen Restaurant and Wonders Restaurant. He has also acted as a consultant for international restaurants, and he brings the requisite knowledge that will see the company succeed in the first three years. Mr Henry Gorbachev has a background in global hotel management. Besides, he has completed certified training in hotel and restaurant management. While serving as the Wilson International Restaurant manager, the restaurant emerged number two as the best performing restaurants in the United States and South America.
Location and Operations
Orlando is the ideal location for the Wallace Restaurant. It will be located in Orlando’s midtown district since it is the most progressive city. Developers are infusing large sums of money annually to help develop the city in different sectors, including commercial and residential structures. It will be the ideal place for Wallace Restaurant because of the growing traffic of approximately 25000 daily and the increasing population.
Restaurant Design
The total space required for the restaurant is 2980 square feet. The design will consider both optional patio and single-level design concept. The restaurant’s central dining area will accommodate 81 seats while the dining bar will contain 39 seats. The restaurant intends to 120 patrons in a single moment. The patio will host customers during the deck, and they will not be compelled to sit at such a particular location. Sitting on the deck is optional. Customers can decide to sit on the patio during the busy summer holidays.
Operating Criteria
The restaurant is located in the city centre, and it will serve customers lunch, dinner, and breakfast. It will work both during the week and Saturdays. On Sundays, the company will market brunch takeout only. Besides, the restaurant will remain open during peak hours to take advantage of the traffic. From Monday to Saturday, the restaurant will serve lunch between 11:30 am to 2:30 pm. Dinner will be served from 5 pm to midnight. Furthermore, breakfast will be benefited from 6:00 am to 10:30 am.
Services
Wallace Restaurant will provide both local and international dishes. Besides, it will boast of superior services and electric atmosphere that meets the need of the young, old and men and women. The primary driving force for the success of the restaurant will be customer satisfaction. Additionally, regular patrons will be provided with rewards on their subsequent visits. We will also change our menu every three months to cater to patrons’ needs with changing needs. Portions will be provided in a stunning presentation. The customers will be served in an electric atmosphere. We intend to offer our customers an extraordinary dining experience.
Wallace Menus
Wallace will feature international menus comprising Chinese, African dishes, Spanish, Thai and the local flavours. The primary offerings will consist of Wallace tapas, Wallace appetizers, salads, entrees, desserts and speciality drinks.
Market Analysis
Wallace Restaurant is not built around a preconceived concept but is based on the needs of the customers. The market analysis of Wallace Restaurant identified the following key drivers as the areas of opportunity that should be exploited.
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Menu Variety
Many food restaurants are coming up in Florida. An increasing number of cookbooks, food magazines, and TV cooking shows provide a myriad of ideas for presenting excellent dishes. However, there are no eating outlets that identify as ethnic restaurants. According to research conducted in Florida, there are no eating outlets that identify as Latin Restaurants. Therefore, Wallace Restaurant will incorporate various multi-ethnic dishes where our customers can have a variety to choose from. Thus, the type is an underlying concept that Wallace Restaurant will consider in a great deal.
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Portion Selection
Different customers tend to have varying choices of size portions. This concept is in line with our findings that people don’t take similar amounts of food. Wallace Restaurant intends to offer different parts to its customers in a way that will allow them to satisfy their appetite. According to our studies, our customers will not be satisfied with the same portion because of the different need.
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Reasonable Prices
In most countries, customers are demanding value for every dollar spent on food. This does not surprise because the restaurant industry has been growing at an alarming rate in the last decade. Our menu will be provided at a moderate price with other excellent offerings to attract more customers. The entries will not be served at a price that exceeds $20 while the appetizers and tapas will be priced between $3 and $4.
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Dining Experience
Customer satisfaction is our core business, and it will continue to be of utmost importance for Wallace Restaurant’s success. According to the research carried out by our team, lighting and décor play a significant role in enhancing customer experience. Wallace will take into consideration all the factors that will help in improving the customer dining experience.
Market Segmentation
It is the primary intention of Wallace Restaurant to cater to customers in a broad market niche. The firm wants every customer to have an excellent experience with the services offered. We have identified different groups that are our primary targets, contributing to the business’s success. The targeted segments comprise of tourists, destination customers, couples, singles and business persons. The primary market segment is individuals with disposable income and seeking a trendy, upscale and comfortable restaurant. These characteristics make the customers who frequent restaurants in major cities of Florida and particularly Orlando. These customers consider the value of their money to spend more in restaurants that they perceive as unique, sophisticated, and located within a cosmopolitan area. Wallace Restaurant will be open to trying something new that can appeal to the interest of the customers.
Competition and Buying Patterns
The majority of Florida’s restaurants share three things: reasonably priced dishes, beautiful décor, and specialized menus. However, only two restaurants provide Latin American dishes. Many of the restaurants are located in busy city centres. Many of our competitors are headed in the right direction. Still, Wallace Restaurant is better placed because of its focus on traditional dishes that serve Latin Americans’ needs. Wallace Restaurant thrives in the local market. Florida residents are seeking a variety of dishes with new experiences. Wallace Restaurant provides an electric atmosphere and is distinct from other restaurants that operate in Florida. Our primary marketing strategy is to stand out among our competitors by offering various dishes in a unique and electric atmosphere. Maintaining our edge in the market will play a leading role in establishing a competitive advantage.
Strategy and Implementation
Wallace Restaurant plans to give its customers quality food in an electric environment that appeals to most demographics. The restaurant will focus on increasing customer awareness and establish strong identities in the surrounding areas where the business is going to operate. The managers’ responsibility is to explain to the potential customers the company’s primary objectives and what they intend to achieve within the first three years of operation. The managing director will also explain to the stakeholders how the restaurant will achieve its primary goals and what it will offer in the market that differentiates it from existing competitors. Wallace Restaurant will keep its standards above those of the competitors, execute a flawless concept and use word of mouth as the primary marketing force.
All the menu items that the restaurant provides have moderate prices. Wallace Restaurant will offer quality food at reasonable prices for potential customers with disposable income.
The Competitive Edge of Wallace Restaurant
- Employee training, incentives, and retention programs
- Unique restaurant design
- Menu changes every four months
- Three tired spatial layout
Competitor Analysis
The Turkmens Kitchen
The Turkmens kitchen is a direct competitor to our restaurant. It has been in operation for an extended period and is also located in the midtown district. The restaurant also offers excellent and quality foods but at a higher price than what we intend to provide. Wallace restaurant will keep its menu prices under $20. The Turkmens offer their menu at $22. We believe that our pricing is modest and our electric environment will make it possible to gain a competitive advantage in the industry.
Sweet Delicacy
Sweet Delicacy is our primary competitor. The restaurant has evolved over the years to be great in the city centre of Florida’s significant towns. The restaurant serves smaller portions at a slightly higher price. We intend to use price differentiation as our primary differentiation strategy to outdo this restaurant in the industry.
Marketing Strategy
The marketing strategy of Wallace Restaurant will promote our electric atmosphere, superior service and high-quality foods that meet the needs and demands of both local and international customers. The marketing initiatives will primarily focus on customer service, building and signage, advertising, promotional campaign, and press release.
References;
- Abrams, R. M. (2003). The successful business plan: secrets & strategies. The Planning Shop.
- Alonzo, R. S. (2009). The upstart guide to owning and managing a restaurant. Kaplan Publishing.
- Brooks, J. K., & Stevens, B. A. (1987). How to write a successful business plan. New York: AMACOM.
- Ford, B. R., Bornstein, J. M., & Pruitt, P. T. (2007). The Ernst & Young business plan guide. John Wiley & Sons.
- Shiyo, A., & Keter, N. (2012). Business plan for a restaurant.
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