Answer To: SITXHRM003 Learners Assessment Guide Assessment 1 BSBMGT617 Develop and implement a business plan...
Amar answered on Feb 13 2021
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Running Header: Buddha Bowl – Restaurant Business – Business Plan
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Buddha Bowl – Restaurant Business – Business Plan
Buddha Bowl – Restaurant Business – Business Plan
Table of Contents
1. Executive Summary 4
Business Overview 4
Service & Pricing Details 4
Target Market 5
Budget 5
Vision Statement 5
Mission Statement 5
Future Goals & Objectives 5
2. Business Background 6
Business Information 6
Business Opportunity 6
Vision & Mission 6
Goals & Objectives 7
Business Identity 7
Business Nature 8
Registration & Licenses 9
Business Structure & Ownership 9
Organisation Chart 9
Legal Considerations 10
Insurance 10
Risk Assessment & Assumptions 10
Operations & Distribution 10
Suppliers 11
Sustainability Plan 11
3. Market 11
Market Research 11
Target Market 12
SWOT Analysis 12
Competitor Analysis 12
Pricing Strategy 13
Marketing Strategy 13
4. Financial Plan 13
Start-up Costs 13
Balance Sheet Forecast 13
Profit & Loss Statement Forecast 20
Cash Flow Statement Forecast 28
Break-Even Assessment 35
Action Plan & Gantt Chart 37
References 51
Executive Summary
Business Overview
The need for tasty food at the right portion and economically priced option and presented in the right location is an ideal opportunity irrespective of the geographic location and business cycle. In this context, the business opportunity identified is that of catering Asian food as noodle or rice bowls with choice of meat and vegetables. The term “Buddha Bowl” refers to a soupy bowl of vegetables, meat and rice or noodles. This limited and simple offering located around a corporate office shall cater to office goers in the day time and casual consumers in the evening and weekend days.
The nature of the business shall be a restaurant business, specifically, a Quick Service Restaurant, and the same represents a restaurant that offers specific food items which need minimal levels of time for preparation as well as shall be delivered by way of quicker services. In general, these restaurants shall cater for fast food or else limited menu based options as these could be cooked at less time and by way of minimum possible variations. In case of Buddha Bowl, the focus is on limited menu with fast-delivered, simple, and tasty noodle / rice bowls with limited yet customizable options of meat and vegetables.
Service & Pricing Details
The company shall offer affordable, tasty, healthy and high-quality far delivered at the restaurant and the nature of the food delivered, that is, rice / noodle bowls with meat and vegetables.
Target Market
The target market for the company shall be the following consumer groups: [1] working professionals in and near the mall where the restaurant is located, [2] casual consumers who visit malls for recreation purposes, and [3] households which order food.
Budget
As per the business planning and detailed financial assessment undertaken, the cost for business start-up has been finalized at $60,000. Of this, $30,000 shall be infused as promoter equity using own funds. The balance $30,000 shall be raised as a long term period business borrowing from a bank. This equity capital and bank loan shall be utilized to procure materials, arrange restaurant facility lease and fund the operations in the initial stages.
Vision Statement
Feeding people affordable and tasty food
Mission Statement
Buddha Bowl shall at all times strive to offer simple, tasty and high-quality food
Future Goals & Objectives
At the outset, the company’s goals is to deliver high quality service by way of a fast, simple, and taste noodle / rice bowls with limited yet customizable options, and expand its customer base through word-of-mouth and other customer engagement activities to grow and succeed.
The specific objectives of the company include the following –
· Attaining break-even in operations within the first year of its operation
· Sustained growth in customer visit to the restaurant: 25 per cent year on year growth in year 2 and year 3
· Targeted revenue growth of over 30 per cent on an annual basis.
· Setting up additional restaurant outlets across the city of Brisbane after three years of service.
Business Background
Business Information
Business Opportunity
The need for tasty food at the right portion and economically priced option and presented in the right location is an ideal opportunity irrespective of the geographic location and business cycle (Lee et al., 2016; Lee et al., 2019). In this context, the business opportunity identified is that of catering Asian food as noodle or rice bowls with choice of meat and vegetables. The term “Buddha Bowl” refers to a soupy bowl of vegetables, meat and rice or noodles. This limited and simple offering located around a corporate office shall cater to office goers in the day time and casual consumers in the evening and weekend days.
While the opportunity is real and evident, the success of the realizing the opportunity shall depend on effective planning, development and implementation of the business plan (Lee et al., 2016; Lee et al., 2019).
Vision & Mission
The vision of the company is as follows: “Feeding people affordable and tasty food”
The mission of the company is as follows: “Buddha Bowl shall at all times strive to offer simple, tasty and high-quality food”
Goals & Objectives
At the outset, the company’s goals is to deliver high quality service by way of a fast, simple, and taste noodle / rice bowls with limited yet customizable options, and expand its customer base through word-of-mouth and other customer engagement activities to grow and succeed (Keegan, 2017; Deepak & Jeyakumar, 2019).
The specific objectives of the company include the following –
· Attaining break-even in operations within the first year of its operation
· Sustained growth in customer visit to the restaurant: 25 per cent year on year growth in year 2 and year 3
· Targeted revenue growth of over 30 per cent on an annual basis.
· Setting up additional restaurant outlets across the city of Brisbane after three years of service.
Business Identity
The restaurant shall be named as Buddha Bowl and the following image shall act as the company’s brand image –
Figure 1 – Brand Image of Buddha Bowl
The same shall be representative of affordable, tasty, healthy and high-quality far delivered at the restaurant and the nature of the food delivered, that is, rice / noodle bowls with meat and vegetables.
Business Nature
The nature of the business shall be a restaurant business, specifically, a Quick Service Restaurant, and the same represents a restaurant that offers specific food items which need minimal levels of time for preparation as well as shall be delivered by way of quicker services (Lee et al., 2016; Lee et al., 2019). In general, these restaurants shall cater for fast food or else limited menu based options as these could be cooked at less time and by way of minimum possible variations. In case of Buddha Bowl, the focus is on limited menu with fast-delivered, simple, and tasty noodle / rice bowls with limited yet customizable options of meat and vegetables.
Registration & Licenses
The following registrations / licenses shall be applicable for the Buddha Bowl Business (Business Australia, 2019) –
· Application and obtaining the Australian Business Number (“ABN”)
· Registration for the business name as Buddha Bowl
· Registration for taxes and the applicable ones include the Goods & Service Tax and the Pay As You Go (“PAYG”) Tax
· Food Business License from the Brisbane City Council
· All employee, consumer and safety protection compliances shall be applicable.
Business Structure & Ownership
The company shall be structured as a private limited company and shall be owned singly by a single promoter.
Organisation Chart
Legal Considerations
There is no one significant legal issue of concern in this business.
Insurance
All business related insurance policies, both mandated and required, shall be acquired.
Risk Assessment & Assumptions
The key risks identified and its discussion are presented as follows: [1] failure of take-off and expected customer flow and actual customer flows are adversely varied: the same represents a business risk and the same shall be prevented / reduced by way of effective marketing and customer engagement plan and more importantly by serving high quality and tasty food, and [2] The personnel employed fail to deliver competency as needed: the chefs, support staff and servers are all crucial to deliver tasty / high quality food and superior customer service. Any failure in their competency is a serious problem to the business performance. Hence adequate effort and focus shall be taken to ensure that competent, skilled and involved personnel get hired. Apart from these, there are varied potential risks that can affect the business at all times. In order to continually review, manage, monitor and control risks effective risk management policy, procedures and action plans shall be deployed and enforced (Sadgrove, 2016; Hopkin, 2018).
Operations & Distribution
The company shall depend on a single facility, a property leased in a mall, and the overall operations shall be confined to this facility. There are no distribution channel need given the same is a single site operation restaurant service.
Suppliers
The suppliers of the company mainly include the raw food, beverages, condiments, oils, water, etc. used at the restaurant for delivering the food and service. The same are fairly standardized in the restaurant business and suitable high quality and economically priced wholesale vendors / suppliers shall be contracted for the same.
Sustainability Plan
The company shall develop and continuously review and improve its sustainability policy, action plans and overall contingency plans.
Market
Market Research
In assessing the market for the proposed business, that is a quick service restaurant in Brisbane, can be seen as that while need for tasty food at the right portion and economically priced option and presented in the right location is an ideal opportunity irrespective of the geographic location and business cycle is real and evident, the success of the realizing the opportunity shall depend on effective planning, development and implementation of the business plan (Lee et al., 2016; Lee et al., 2019).
Hence, the market is characterized by sustained and growth focussed demand and with immense pressure on consistently delivering high-quality / tasty food and superior customer service.
Target Market
The target market for the company shall be the following consumer groups: [1] working professionals in and near the mall where the restaurant is located, [2] casual consumers who visit malls for recreation purposes, and [3] households which order food (Lee et al., 2016; Lee et al., 2019).
SWOT Analysis
Strengths
· Superior business opportunity
· Skilled personnel
· Strong business case
Weakness
· Start-up business with high competition
· Lack of experience
Opportunities
· High demand market and under catered service niche
· Growth potential by way of expansion across Brisbane
Threats
· Failure to deliver promised service / quality can lead to severe business losses
· Competition can replicate the service / food differentiation
Competitor Analysis
The key competitors for the company shall be other quick service restaurants which view for the same target market and consumer base that Buddha Bowl is targeting. The three key competitors shall include McDonalds, KFC and Burger King. While all of these well-established brands, the competitive advantage of Buddha Bowl shall lie in offering differentiated service in terms of novel food category and fast / superior service to customers who have short term to spend on food.
Pricing Strategy
The pricing of the product is intended to economical and affordable and the average pricing of per bowl is targeted to be at $50 per customer and the pricing will be gradually increased by 10 per cent on annual basis (Keegan, 2017; Deepak & Jeyakumar, 2019).
Marketing Strategy
The company’s marketing efforts shall entail the use of conventional media like magazines, flyers, and newspapers focussed mainly on the local Brisbane population. In addition social media shall be used for engaging with the customers, both targeted and existing ones, for continued brand visibility and for repeated visits (Keegan, 2017; Deepak & Jeyakumar, 2019).
Financial Plan
Start-up Costs
As per the business planning and detailed financial assessment undertaken, the cost for business start-up has been finalized at $60,000. Of this, $30,000 shall be infused as promoter equity using own funds. The balance $30,000 shall be raised as a long term period business borrowing from a bank.
This equity capital and bank loan shall be utilized to procure materials, arrange restaurant facility lease and fund the operations in the initial stages.
Balance Sheet Forecast
The detailed forecast of the balance sheet for a three year period is presented as follows –
Detailed Projection for Balance Sheet
Year 1 M1
Year 1 M2
Year 1 M3
Year 1 M4
Year 1 M5
Year 1 M6
Year 1 M7
Year 1 M8
Assets
Current Assets-
Cash
1,041
2,082
3,122
4,163
5,204
6,245
7,285
8,326
Account Receivables
4,450
8,899
13,349
17,799
22,248
26,698
31,148
35,597
Less- Reserves for bad Debts
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Total Current Assets
4,490
8,981
13,471
17,962
22,452
26,943
31,433
35,923
Fixed Assets-
Building/ Facilities
-
-
-
-
-
-
-
-
Machinery / Equipment
4,167
8,333
12,500
16,667
20,833
25,000
29,167
33,333
Furniture / Fixtures
1,667
3,333
5,000
6,667
8,333
10,000
11,667
13,333
Less- Accumulated Depreciation
(583)
(1,167)
(1,750)
(2,333)
(2,917)
(3,500)
(4,083)
(4,667)
Total Fixed Assets
5,250
10,500
15,750
21,000
26,250
31,500
36,750
42,000
TOTAL ASSETS
9,740
19,481
29,221
38,962
48,702
58,443
68,183
77,923
Liabilities & Capital
Current Liabilities:
Account Payables
2,987
5,974
8,961
11,948
14,935
17,922
20,909
23,896
Income Tax Payables
362
724
1,086
1,448
1,810
2,173
2,535
2,897
Short Term Borrowings
-
-
-
-
-
-
-
-
Accrued Wage Payable
939
1,878
2,816
3,755
4,694
5,633
6,571
7,510
Sales Tax Payables
453
905
1,358
1,811
2,263
2,716
3,169
3,621
Total Current Liabilities
4,740
9,481
14,221
18,962
23,702
28,443
33,183
37,924
Long-term Liabilities
Mortgage on Buildings
-
-
-
-
-
-
-
-
Long Term Business Loans
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
Total Long Term Business Loans
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
Total Liabilities
7,240
14,481
21,721
28,962
36,202
43,443
50,683
57,924
Capital:
Equity capital
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
Earning Capital
-
-
-
-
-
-
-
-
Total Capital
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
TOTAL LIABILITIES & CAPITAL
9,740
19,481
29,221
38,962
48,702
58,443
68,183
77,924
Detailed Projection for Balance Sheet
Year 1 M9
Year 1 M10
Year 1 M11
Year 1 M12
Year 1
Assets
Current Assets-
Cash
9,367
10,408
11,448
12,489
12,489
Account Receivables
40,047
44,497
48,946
53,396
53,396
Less- Reserves for bad Debts
9,000
10,000
11,000
12,000
12,000
Total Current Assets
40,414
44,904
49,395
53,885
53,885
Fixed Assets-
Building/ Facilities
-
-
-
-
-
Machinery / Equipment
37,500
41,667
45,833
50,000
50,000
Furniture / Fixtures
15,000
16,667
18,333
20,000
20,000
Less- Accumulated Depreciation
(5,250)
(5,833)
(6,417)
(7,000)
(7,000)
Total Fixed Assets
47,250
52,500
57,750
63,000
63,000
TOTAL ASSETS
87,664
97,404
1,07,145
1,16,885
1,16,885
Liabilities & Capital
Current Liabilities:
Account Payables
26,883
29,870
32,857
35,843
35,843
Income Tax Payables
3,259
3,621
3,983
4,345
4,345
Short Term Borrowings
-
-
-
-
-
Accrued Wage Payable
8,449
9,388
10,326
11,265
11,265
Sales Tax Payables
4,074
4,527
4,979
5,432
5,432
Total Current Liabilities
42,664
47,405
52,145
56,885
56,885...