Market Analysis for Buffet Restaurant

Market Analysis for Buffet RestaurantThe creation of a unique, innovative, entertaining, mid(prenominal) scale atmosphere that result differentiate us from the competition. The highest lineament food is unbelievably low prices in a clean, fun environment. Controlling prices at wholly eras, in all aras. Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff executable.Section II Business descriptionMission We want our guests to remove the total experience when visiting be intimate with us. Not only will our guests receive a great meal, they will similarly be provided with a fun atmosphere. We will be doing unique things (such as serving all you can eat) that will set us apart from the competition. We will want the dining experience to be as pleasing to the senses as it is to the palate.Our main focus will be serving quality food at a great value. We will feature a large selection of freshly p rep ared food, most in full view of our guests. The purpose is help that customer satisfaction is paramount. Particularly, we want to be the eating ho engagement of choice for everyone families and singles, young and old, male or female.On the other hand, employee welfare will be alpha to our success. We want our employee to feel a part of the success of Enjoy with us. Happy employees make happy guests. Similarly, we will combine menu variety, atmosphere, ambiance, and friendly staff to get to a sense of place in order to reach our goal of overall value in plea authorized experience.Why do we think tourists seeded player our shop?First of all, as we know, Singapore is a coun refine includes 3 national (India, Chinese, and Malaysia). So, this reason is very prosperous to sop up motivateers come to Singapore. We think when they travel to Singapore they want to try traditional food in this country surely. Consequently, we will decide to motorcoachiness Buffet restaurant. W ith Buffet restaurant, customer can try 3 kinds of food of 3 different national easily.Secondly, we would like to open this restaurant called Enjoy with us. This means when customers come with us, they can enjoy their tasting by themselves wholeheartedly.Lastly, we choose our barter in Sentosa because this place is most tourists will come during their tour surely. It will take place around 1,000 square meters and exclusively designed to reflect and describe all kinds of food in 3 national.Our short term goal is to catch people interested and slowly profits market share from other restaurant.Our long term goal is to be well known in the world. This means when people talk about restaurant in Singapore, they will think about our restaurant immediately.Start up fund S$5 Million investmentAs we know, Sentosa is an icon of Singapore, so the rental will be very expensive (around S$300,000). Moreover, our business is new, so we call for to use about 10% of the budget cost to physique our brand name (around S$500,000). Furthermore, this restaurant business plan is prepared to obtain financing for the initial launch of this concept. The financing is required to begin hold up on kitchen design, architectural plans, manuals and recipe books, site selection, equipment purchases, and to cover expenses in the first stratum of business (around S$2,000,000). In addition to the capital contri preciselyions, it will give up buffet restaurant to successfully open and harbor operations through year one.On the other hand, concentration will be on maintaining quality and establishing a beefed-up identity in each local market. Similarly, we also expect to pay management fees and salaries to staff (around S$900,000 for first year). Besides that, we need to require cash and long term asset (around S$1,000,000). Consequently, our business will need about S$5 million.Section III marketingA. Research and analysisTarget market (customer) identifiedIn looking at our market anal ysis, we expect defined the following groups as targeted segments. Below are our targeted market segmentsAge Seniors, young married couples with children, teenagers, citizens. (Especially foreigners)Gender we will equally target both sexes.Income We will appeal to the high side of low income individuals and to all in the middle income bracket.By our definition, we will have very broad appeal for our concept. It is our goal to be the restaurant of choice for the largest dining audience in Asia and Europe.Singapore has more than 10 millions tourism arrivals in 2008. With the number of tourism arrival to Singapore like that, this condition has advantage to our business.Furthermore, with our restaurants seating almost cd people, however, we hope it will have an average of 300 customers everyday for the first year and to grow 20% each year. It is our goal to have roughthing for everyone everyday on our menu. Particularly, we need to maintain our loyalty as we should focus on their cha nging needs and menu choices.Besides that, our lunch dodge is dual purposed. As we know, some kinds people do not have lunch time, from that reason, we want to keep the price point at lunch as low as possible to keep us in competition with fast food restaurant. Not only do our guests get a sandwich, drink, and fries but also a salad, dessert and a selection of hot food items. On the other hand, we can reduce the hot food assortment from dinner we will be able to keep our food cost in line with the reduced price. Consequently, we think this is a strategy that will broaden our customer base at lunch while still maintaining our core market segment.2) Market needsOur business is Buffet restaurant, so we think we need to focus onSeeks strong value.Wants variety and flavor in its food.Looks for speed of helping.Wants an entertaining dining experience.Insists upon a clean, friendly, and attractive dining environment.3) Competitive advantagesAs we know, Singapore is a country which attrac t tourists come and travel. Furthermore, they want to spend leisure time. This factor contributed to the large demand for good restaurant in Singapore today. From that reasons, the competition is strong. Due to intense competition, our restaurant must look for ways to differentiate their place in order to achieve and maintain a competitive advantage.a) Competitive comparisonIn competing against the passing(a) theme restaurant, we will have the following advantagesLower price point for a complete meal.There will be no tipping at Enjoy with us, we are egotism service.Speed of service no waiting for food. Everything will be readily available hot, fresh, and cooked as requested.We will provide more entertainment than our competition. There will be something for everyone, everyday of the week.There will be no confusing menu board when guests stupefy at our restaurant. We have do it simple one price, everything includedb) Technology we will invest in a high speed computer to provide a fast and lucky connection to link to our cash registers. We will also order online, email, and have a Web page.B. Marketing plan1) Market strategy sales and scatteringOur main focus in marketing will be to append customer awareness in the surrounding community. We will direct all of our simulated military operation and programs toward the goal of explaining who we are and what we are all about. We will price our products fairly, keep our standards high. terms strategy tout ensemble menu items are moderately priced.Sales strategy The sales strategy is to build and open new locations on schedule in order to increase r thus farue.2) Pricing and opening hoursBuffet Breakfast (6.00 am to 11.00am, Mon to Sun) Adults $20, Child $10Buffet Lunch (12.00 noon to 2.30pm, Mon to Sun) Adults $ 30, Child $ 15Buffet Dinner (6.30 pm to 5.30 pm, Mon to Sat) Adults $ 40, Child $ 25Especially Buffet (6.30 pm to 11.00 pm) Adults $ 50, Child $30NoteChild = 5-12 old age old. Free for accompanie d child under 5 years old.All prices subject to 10% service charge and 7% GST.Prices subject to change.Our business includes Buffet Breakfast, Lunch, and Dinner. Particularly, we have 1 special service that always serves every Sunday. This service will free come down of soft drinks juices, draft beer and selected wines and champagne.3) advertising and promotionOur business is new, so we need to have a good marketing plan to compete with them. Im going to use 10% of the budget cost which is 1/2 million to build our brand name.You will see our advertising everywhere, on television, on train, on the bus and news paper and also in the magazine of Singapore airlines, Tiger airways, Jetstar airlines.Website is not very principal(prenominal) as we dont provide online purchase but we should have a nicely designed web to let people can do a research Enjoy with usLeaflets will be apt(p) at all MRTs for 1 working day from 5pm to 6 pm this is the most crowded time when people are going home later on works.Particularly, in Singapore, they trade so many restaurants. Consequently, let to our business for advantages, we will have strategy asDoes not have the widest variety of food but everything here is of great quality.Free flow of fresh fruit juice, e.g. mango, pink guava, apple juices self serve from bottles chilled in crushed ice.To-die-for desserts and pastries youd wish you had 2 stomachs always give promotion and discount on weekend days or holidays.Always change and prepare different kinds of food. It will make interesting in customer. They can come again and again.Section IV OperationsQuality food fresh food, home style care.Variety, Variety, Variety A different menu for everyday of the week will feature.Self service Every new guest will receive a guided tour explaining our concept and the self serve system.Friendly employees our employees will be ringing dinner bells when fresh foods come out. Furthermore, we will dress uniform that our customers can organiz e us easily. rock-bottom dinner pricing on Monday Thursday, the dinner price will be slightly lower than on Fri/Sat/Sun.On the other hand, our principal possessor will offer outside ownership in Enjoy with us on an equity, debt, or combination basis in order to facilitate the outset up and growth of our restaurant.Start upKitchen designArchitecture plansTraining this will cover training of employees and management as well as cleaning and organizing the restaurant to opening.Manuals/Handbooks/Recipes.Building/ Land/ Equipment we can build from ground up or we can do conversions from existing or close restaurants.Number of staffs 10 managers, 5 securities, 15 waitresses, 5 bartenders, 2 receptionists, 2 cashiers, 3 chef, 5 cook helper.Location and facilities Sentosa is the best place to open this kind of business because traveler can discover our shop easier and they can enjoy easily. With this location, we can attract customer from oversea and also citizen. They can come our resta urant on weekend to relax.Proximity to supplies Supply can get from Malaysia, China, India directly or intermediary in Singapore.Access to transportation Transport of foods and materials by sea or plane. Moreover, we need to have warehouse storage to hold foods and materials.Section V ManagementA. Management team As our restaurant is small business, it requires a simple organisational structure. Implementation of this organization to make all of the major management decisions in addition to monitoring all other business activitiesManagement Team healthy structure stock agreement, employment agreements, ownershipCarefully to partnership or corporation.Need to follow legal about business in Singapore.Need to induce about employment agreement, stock agreement.C. Board of directors, advisers, consultants Board of director is the principal owner. They will offer outside ownership in Enjoy with us to remediate our restaurant.Section VI FinancialA. Financial planSales our restaurant wil l open on 1/1/2011.Cost of goods sold The cost of goods sold was immovable by taking actual Profit and Loss statements from various restaurant concepts and then using our pricing structure and guest counts to arrive at costs.Marketing Fees these funds will be used for the production of various marketing materials.Advertising these funds will be used to maintain our sales at projected levels.Management Fees we will use these dollars for accounting and payroll department services of our firm.Fixed and Variable Expensed The various fixed and varying expenses were determined by taking actual numbers from restaurant.B. Important assumptionWe assume a strong economy, without a major recession.We assume, of course, that there are no out of the blue(predicate) changes in consumers tastes or interests to make our concept less competitive.C. Financial forecast Because our budget is $5 millions. So we can calculate below1) Break even analysisVariable costs25% Cost of goods sold $1,250,00 017% Employee payroll $ 850,0000.25% Credit card charges $ 12,5000.33% marketing fees $ 16,5002% Management fees $ 100,00010% Advertising $ 500,0002% Management bonus $100,0003.03% Employee payroll taxes and benefits $151,5001.5% Paper and cleaning $ 75.00061.11% thoroughgoing variable costs $3,055,500Annual fixed costs$170,000 Management salaries$37,000 Management payroll taxes and benefits$16,410 Group insurance$137,000 Controllable expenses minus credit card charges and paper/ cleaning$40,208 Other expenses minus marketing fees, advertising, and management fees$100,000 Depreciation$500,000 Rental$1,000,618 Total fixed costsStart up assetCash required $ 200,000Long term asset $ 700,000Total asset $ 900,000Total requirements = Total variable cost + Total fixed cost + Total asset= $3,055,500 + $1,000,618 + $900,000 = $4,956,1182) Profit and LossWith an estimate of 300 customers everyday and to grow 20% each year (1.67% per month), lets say 1 customer wi ll spend at least $40. We can see profit and issue account belowFrom profit and loss table, we can seePayback period = Y + A/BY= the number ofyears before final payback year. In the example, Y = 5 years.A= Total remaining to be paid back at the start of the payback year, to bring cumulative cash flow to 0,A = $4,956,118 ($145,747 + $427,447 + $765,487 + $1,171,135 + $1,657,913)= $788,389B= Total (net) paid back in the entire payback year. B = $2,242,046So, payback period = 5 + $788,389/$2,242,046 = 5.35 years or 5 years and 4 monthsIn conclusion, our business will take back our capital after 5 years and 4 months.Section VII Critical risks1) ChallengesBecause our business will be opened in Singapore which attracts different countries come and enjoy. Our challenges will service many kinds people and always have to make them comfortable and enjoy themselves when they come our restaurant. Consequently, we always need to update new ideas and try to have a good service. On the other han d, our purpose wants to make cook lots of money we need to overcome challenges to have a good business2) Risks and ContingencyPotential risksTriggerContingency planFood related to LawsuitsOur restaurant can be sued after a customer becomes after eating and contracting a food borne illness.Safe handling of food is an important priority for our restaurant.Liquor LiabilityIf we serve beer, wine or other liquor.Need to test quality before sale products. Be sure we are protected from lawsuits resulting from alcohol related incidents.Property RisksOperating a restaurant often includes considerable equipment, building improvements and food stock.We need to buy insurancePriceNeed to cutting by competitorsWith Competitors, they will do anything to survive. So we always need to control the price.Number of customerOur plan needs 300 customer/day. Maybe, number of customer will not come enough.In this case, our management team will sit back to find out the reason. It could be caused by price or our marketing program was not effective, or it may be customer-service problems.Delay to complete the business planWhen we will plan, maybe time for activities will be delayedThis risk is very important. It directly affects all other progresses of the business. Production manager will be aware of this to make sure the chance of this risk equals to zero.Kitchen and electrical fireOverloaded or malfunctioning electrical equipment is a particular risk for our restaurant.Prevention is our best insurance Be sure that we have appropriate fire suppression systems in place and maintained. Insurance companies typically require that our heat producing cooking equipment, particularly grease sources (fryers, grills, ranges), have awet chemical fire suppression system and vent hood overhead.Section VIII Harvest strategy segmentMarketing strategy Advertising is still word of mouthPromotion strategy 3 different marketing tacticsWord of mouth/ in store marketing. local anaesthetic Store Marketin g (LSM)Local mediaPositioning Statement It will be to increase customer awareness in the surrounding community.Pricing strategy All menu items are moderately priced.Sales Strategy the sales strategy is to build and open new locations on schedule in order to increase revenue.Sales forecast opening day for our store is scheduled on 1st January, 2011.Section X ReferencesBookFederick, Howard (2006). Entrepreneurship theory, process, and practice. Australia Michael Tully. p.p.269 276.WebsiteAnon. (2010). Is your Restaurant a fail-safe Investment? getable http//www.quoteaustininsurance.com/pages/home/restaurant.php. Last accessed 3th May 2010.Anon. (2010). Singapore Tourism Board. Available https//app.stb.gov.sg/asp/index.asp. Last accessed 3th May 2010.Anon. (2010). My tax portal. Available https//mytax.iras.gov.sg/ESVWeb/default.aspx. Last accessed 3th May 2010.Anon. (2010). Which is the Best Buffet in Singapore?. Available http//www.etour-singapore.com/buffet-in-singapore.html. Last accessed 3th May 2010.