Executive SummaryVision
To become the primary destination for European food in the United States
Mission
To provide high-quality food products to our customers to meet their food needs as well as offering satisfactory services.
Goals
• To provide high-quality food product.
• To provide a broad range of catering services to customers.
Ownership
The Small East European Restaurant is a sole proprietorship, owned by Mr. Richard Dawson.
Company Description
Small East European Restaurant is a food outlet that is proposed to operate in Delaware. The organization plans to first operate in Delaware and will serve European food to its customers. Eventually, the company plans to expand and spread its operations to the rest of the United States and also expand the dishes that it serves to its customers to include dishes from around the world.
Management Team
Because of its small size, the restaurant’s management team only comprises of the director and the manager of the restaurant. The director is the founder of the company. However, since the director lacks prior experience as a restaurant manager, he opted to delegate his power to a manager who is responsible for the everyday running of the restaurant. The manager is also responsible for the coordination of different employees of the company and hiring of new team members. On the other hand, the director is responsible for the acquisition process. The director negotiates deals with suppliers to the restaurant. Furthermore, the director will also solicit funding from potential investors to provide funding for the restaurant to grow. Because of the small size of the company, the director will solicit funding from investors under the promise that the investment they make in the company would be converted to shares once the company has achieved substantial growth.
Marketing Plan
The organization plans to operate within the food industry. There are many players present in this industry. The company foresees a presence of intense competition from these already established players. The main competitors to the restaurant include other small restaurants that operate in Delaware. The competition is either direct competition or indirect competition. The direct competition comes from those restaurants that specialize in the sale of European food in Delaware. The indirect competition comes from other restaurants that specialize in the sale of other types of food such as Asian food. Furthermore, indirect competition also comes from other fast food producers such as ice-cream vendors.
The company’s target market is the working class customers. The restaurant plans to open outlets near major working areas where such working class individual frequent. Most of the purchases from the restaurant will occur during the lunch hour as this is the time that most of these workers are available. Furthermore, to attract new customers to the organization and to retain its already existing customers, the restaurant provides a range of services including take-out services. In the take-out services, customers have the option to purchase packaged food eat it at a different place away from the restaurant.
To promote the organization in the market, the restaurant plans to use various strategies. Firstly, the company has plans in place to brand its products. In branding, the restaurant ensures that it produces high-quality products that attract consumers. Secondly, the organization will advertise its products and services through the use flyers, brochures, sales promotions and advertisements in the media. Advertising the restaurant in the social media will be a priority as it gives the company several advantages, for example, mass media advertisements are cheap and reach a wide variety of prospective customers. Additionally, the company will launch its website. Through this website, consumers can find details of the products and services that the organization provides. For example, the consumers can hire catering services from the restaurant through its official website.
Pricing
The restaurant management has put the prices of the products and services that they deal in to lower and affordable levels.
Competitor analysis.
The restaurant expects competition from other dealers of European foods and services but the management has strategies to overcome the competition and put the restaurant in a classic level.
SWOT Analyses
Strengths.
The presence of a highly competent management team with experience in management. The organization will hire highly qualified chefs to promote the production of high-quality goods.
The food products and the restaurant services are of very high quality and their prices are comfortably affordable.
The location of the restaurant is at a place that is open and accessible to people.
Weaknesses.
The restaurant lacks the financial capacity to establish a chain of restaurants during establishment.
Opportunities.
Through growth, the company envisions that it can expand its services to include a wide variety of goods and services. Furthermore, the restaurant envisions that it will expand and become a franchise in the future. As a franchise, it will capture other markets in the US before expanding globally.
Operation Plan
The restaurant purchased land and built its first outlet on this land in Delaware. Owning the premises gives the restaurant the advantage of avoiding paying rental costs on a monthly basis. However, in its subsequent branches, the restaurant will lease the outlets from developers. The opening of the first restaurant outlet will occur in June 2016. The company’s work force will include10 workers during the launch but is expected to expand corresponding to the growth of the restaurant.
The restaurant will be opening business from 5.00 am on Monday- Friday and closing at 10.00 pm while on Saturday the business will start from 6.00 am to 5.00 pm. The restaurant will not be opening on Sundays and public holidays.
Total Funding Needed and Request
Initially, the organization requires a capital investment of approximately $150,000. This initial cost will go towards hiring the workers, purchasing equipment, drawing up contracts and purchase of initial supplies. However, the cost of construction of the first outlet is not included in this initial cost as the founder already incurred this initial cost. Furthermore, to raise these funds, the founder plans to apply for a personal loan from the bank. Furthermore, the organization will raise funds from well wishers and investors who will become shareholders in the organization once it has achieved substantial growth.
High-Level Financial Projections
The restaurant management plans to start with a capital of $150,000 of which $50,000 will be the proprietor’s starting capital and a loan from the MNT bank worth $100,000. By the end of the first business year, which ends on 30th June, the projected revenue should range around $110,000 and the gross sales of foods and services should amount to $15,000. The gross profit therefore will in turn be $95,000.
The expenses from the sales and marketing, research and development of the business, insurance and other legal and professional services, bookkeeping, utilities, maintenance and other fees including the monthly remittance for loan recovery will supposedly sum up to $49,500. Therefore the business is expecting to make a net profit of $45,500 before tax.
