BHF Restaurant Business Plan

Paper Type:  Business plan
Pages:  7
Wordcount:  1777 Words
Date:  2022-04-04

Introduction

Executive StatementThe proposed business enterprise of BHF is to fill a gap in the ever developing fast food market with legitimately healthy food, provided instantly at a low price. The fast food industry is inundated with unhealthy easy options for food choices but there is no company offering the same convenience but with access to nutritious food that actually tastes good. The projected sales for HALE are extremely profitable, due to the mark up on food pricing, for year one the sales revenue is expected to be in the region of $144,920.00 with a net profit of $26,239.23. Profit in the first year of business is usually unlikely but due to shrewd investment and expenditure and a scaling on initial outlays this is possible, e.g. leasing the freehold instead of purchasing.

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The start-up is already assisted with $30,000 personal investment however requires another initial investment of $15,000.00 is vital to cover the negative net cash flow in the opening months, this is to be paid back to investors in full by year two, the budgetary allocation allows for the purchase of necessary equipment, marketing and a store fit-out.

The company is currently listed as a sole trader which means liability is transparent to the owner and his assets, as the company grows and expands the ownership will change accordingly as well as featuring limited liability. The owner is an entrepreneur with a large portfolio of successful investments and is now commandeering his next venture, the firm will be drawn up and investors finalized with a store opening deadline date of May 2018. According to the nature of the food industry patents are unobtainable, however by differentiating from competition and setting a standard for healthy fast food before anyone else any imitations will be rendered as unoriginal.

Vision statement

Our vision is to be best food company in offering quality food to customers

Mission statement

Our mission is to make healthy food accessible, offering a service that no competitor harnesses and provision of faster food without compromise on health and quality, putting the customers' wellbeing at the forefront of our ethos

Business objectives

First year objectives

  • All outstanding debt payment
  • Turn a at least 20% profit by the second year
  • Repeat customers will be contributing more than 80% of our overall business by the end of the first year
  • Obtain a 20% market share of fast food business within a radius of 20km

Second year objectives

  • Registration as a private limited company
  • No outstanding long term liabilities
  • Gross profit of at least 60%
  • Obtain 50% market share within a radius of 30 km
  • Staff employment to double by the end of second year

Five and above year objectives

  • Register as a franchisor
  • Employ over 150 employees
  • Stock market floatation

Industry Analysis

An analysis of fast food industry analysis shows that, the market is dominated by a few industry leaders such as McDonalds, Subway, Burger King and many others. The current leaders McDonalds had18,710 restaurants world wide by 2015 representing 15% market share. The health food industry is expected to reach PS800 billion by 2019. A survey carried out in 2007 revealed that 28% of people especially the elderly who were admitted to hospital and care homes in the UK were malnourished . 88% of the people polled were willing to pay more for healthier food.

Marketing Plan

Research Methodology and Findings

It was mandatory to perform a thorough analysis of the selected demographic segment so as to gain reliable qualitative and quantitative data. In order to achieve this, a questionnaire was formulated on the 30th October 2017 and implement on 15th of the following month. It consisted of twenty questions that were used to inform the survey on market preferences and different consumer needs. Distributed among sixty local people of Evansville, Indiana, the survey was very resourceful since it allowed for quick entry of the results and provided insights on the demographics of the local people. When combined with the secondary research, these results provide vital market intelligence of the beverage industry. This effectively provides further insight on different unfulfilled customer needs and gaps in the market.

Below is a selection of some of the findings from the market research:

  • There was a near exact balance between male and female respondents.
  • There was a near exact balance between male and female respondents.
  • The age ranges of the constituents of Evansville are evenly distributed.
  • The age ranges of the constituents of Evansville are evenly distributed.

Market Segmentation

Demography

The data retrieved from both primary and secondary research provides a wide range age group throughout Evansville and the surrounding cities, with a peculiarly big number of 25-60 year olds hence occupying such a large demographic is important. There are no limits to whatever nationality, sex or religion regarding our food choices but the livelihood of the customers seemed quite busy and time conscious millennial generation who were looking for a swift fixes without the harmful feature of fast food products.

Geographical Perspective

BHF plans to educate and implement an easy transition to a healthier lifestyle to the people of Evansville primarily and later in the surrounding areas of in order to expand our market share and return on investments. The climatic conditions will effect seasonal menu's and meet people's needs with lighter options during summer and warmer heartier but still healthy meals during the winter in order to meet the constantly changing seasons of Indiana State.

Behavioural

Research shows that there are many mothers in the area with school children, not only do they want the healthiest options for themselves but for their children too, it would be ideal to roll out brand loyalty schemes to such consumers in order to ensure their commerce again. The regularity of purchases averaged at 3 times a week for people currently buying fast food in the area, this information means that the people have a keen interest in fast food and this focus area can be expanded on.

Sociographic Strategy

Penetrate social media outlets with our ethos and grow online customer base/reputation, this will target a younger demographic of internet users covering a wider spectrum of people overall.

Psychographic Plan

Due to the nature of the busy millennials who were questioned the best from of contact would be via email, as they will be in regular contact using email and flyers will seem outdated to the consumer. The fact that household incomes are high in this area also means that they are generally for the most part high achieving individuals which mean they will be expecting a high standard service, which we will provide

Competitor Analysis

The main competitors that BHF will be taking on head on all pose a different set of unique threats to the business, from existing healthy food by TISKIN and market domination of McDonalds, it is the results of this process that will allow for a niche to be assessed and proposed in order to differentiate BHF from the current existing brands.

SWOT Analysis

Strengths

  • Optimizing on increasing healthy food industry growth
  • Low risk as tried and tested competitors already exist
  • High gross margins from stock price to sale price, maximised by large quantity buying
  • Strong branding that differentiates itself from competitors
  • Occupy millennials' niche market

Weaknesses

  • New sub category in an existing market that may not stand the test of time / may be a trend of the moment.
  • Meals cannot be patented, if successful competitors can steal and replicate food choices
  • High level of food safety standards

Opportunities

  • Expansion, if successful fast food store reputations expand quickly and easily
  • Fast food culture in the UK is on the rise as people have less and less time
  • Ability to capitalise on diversity by offering a range of different products to cover all cultural demographics

Threats

  • Pricing strategies of larger corporations are highly competitive, they can use their economies of scale to keep sale prices low
  • Market saturation, many new brands are benefiting from the health food trend thus making it more difficult for the consumer to choose between so many outlets.
  • Competitors of the existing market currently monopolise against small start-ups and sole traders
  • Government regulation towards food and health food standards

Marketing Mix

The variety of products that will be offered to the customers will constitute of a variety of healthy and conscious, meeting many apparent needs of a healthy society. This will include high quality and healthy foods such as Vegan, Wheat free, Gluten Free, Vegetarian healthy but still indulgent, with a design of package that is simple but highly effective. BHF will have low affordable pricing strategy to undercut the main competitors, which is ideal for the target market of middle class families and young adults.

Our business name is BHF and this means 'Best Healthy Foods' which is exactly what our company and products are promoting. Our logo is green which scientific studies show connotes health and wellbeing especially a lighter shade which also promotes calm and serenity. The first physical store will be tactfully based on the Hiskins lower street which is Zone 3 of the Evansville's transport links, this allows for minimal overheads compared to Indiana prices whilst still attracting high earning and frequent clientele.

We have chosen to sell directly to consumers without any intermediary using an in house sales forces, this allows for full control of pricing and running of the business regarding how the product is sold therefore eliminating channel margins. As time goes by we intend to become a franchise and then increasing of the distribution channels will be necessary but as a sole trader we will only be customer centric. Our web presence will be prioritized but as a research tool, customers will be able to see the most recent products and menu whilst also getting access to the information behind our unique food and the benefits that a healthy lifestyle provides.

As a fast food company we will initially adopt a market penetration strategy, this will lure customers away from competitors and to us as we are not only offering a quality services but at lower prices. Once a loyal customer base has been established then a price adjustment will be made, however to avoid aggravating customers our intentions will be promoted as 'opening and start up deals'.

Financial PlanCash Flow StatementThe cash flow statement depicts a realistic prediction to what BHF will be earning and spending from May to August of 2018, the chart shows a minus opening balance for the first 4 months which is to be expected with any new business. The initial cost when creating a fast food restaurant is high due to equipment, branding and decorating, however accounting for this in the early stages of the process means there shall be no repercussions, by August of 2018 we expect to have our thir...

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BHF Restaurant Business Plan. (2022, Apr 04). Retrieved from https://proessays.net/essays/bhf-restaurant-business-plan

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