For Armani Restaurant - Business Plan Example

Business Plan for Armani Restaurant Name Institution Date Table of Contents Table of Contents 2 Executive Summary 2 Introduction 4 Objectives 4 Mission 5 Keys to success 6 Company summary 6 Company ownership 6 Start-up summary 7 Company locations and Facilities 9 The menu 9 Cultural ingredients and recipes 10 Competitive comparison 10 Sales literature 10 Market analysis summary 10 Marketing programs 11 Conclusion and Recommendation 15 References 16 Executive Summary The restaurant business plan is for Armani restaurant, an international restaurant located in Dubai, Burj Khalifa, within Armani hotel. The restaurant and hotel were established in Dubai in the year 2010 after identifying the opportunity for an Italian restaurant in Dubai. Having operated for only two years, the restaurant has been able to make an impact on the lives of its guests. Armani/Ristorante derives its menu from the Tuscany tradition and others in the Italian region, combining the traditional and the modern recipes for its customers, unlike the Arabic restaurants. It offers a variety of wines with Italian origins hand made by suppliers from Italia. There are other hotels in Dubai with Italian origins, however, Armani is among the most known Italian restaurants known of Italian traditions that also combine the modern features and Arabic definitions. The restaurant considers customers as partners of the company and involves their opinions in decision making through the customer opinion site where the manager, responds to customer opinions. Note This business plan is a presumed plan of Armani restaurant few months after its establishment before it current state (student’s own creation). Introduction Dubai is a growing country and is well known for its productive hospitality industry. The country has a number of restaurants with the Italian origin and facilities. However, due to the continued growth in population, the demand for restaurants and hotels is also increasing. Armani, a new Italian restaurant that targets about 60% of consumer market, comprising of individual guests, a larger number being foreigners from Italy and UAE nationals with an interests in the Italian recipe. It targets 40% business market comprising of business clients for catering services and convention demands. The business needs a plan for the first three years. Objectives The objectives of Armani restaurant include: To attain sales of 500,000 Dhs in the first year and 1,000,000 Dhs and more in the second year To maintain expenditure on human resource at less than 300,000 in first operation year To establish a strong financial control system for the company To attain profitability of more than 10% better in year three than year two To establish and maintain the Italian ethnicity in their menus as well as the Arabic foods Mission Armani restaurant is a great restaurant for meetings and excellent recipes. The restaurant desires to develop a favorable working environment for its staff and adequate profitability for owners and together realize the customer needs and expectations. Customers/guests play a big role in the survival of a business; however, with employees who lack motivation to work, quality services will be jeopardized. If the owner fails to realize profits or incur losses instead of profits, survival is also threatened. The tree stakeholders, apart from third parties therefore need to be considered. This is what the restaurant dedicates its resources to. Keys to success The keys to success of Armani restaurant include: Armani plans to embrace innovativeness and uniqueness in entertainment and delivery to distinguish the restaurant from its rivals. Establishment of a high performing workforce through hiring, performance appraisal and motivation is among the key success factors that the restaurant aims at. Adopting and maintaining the Italian ethnicity in the recipe and interior designing to create the unique nature of the restaurant that creates its identity. The restaurant aims at establishing a strong financial control system by practicing internal controls and external audits. Company summary Armani restaurant is a classic restaurant established within the Armani hotel first based at the Burj Khalifa building. The restaurant focuses on creative foods with combination of Italian and Arabian dishes of different varieties. Financial success is important to the business, and because of this, the company aims at delivering quality, maintaining cleanliness and original foods. The wine section will offer high standard wines with classic interior designs. Since employees are a resource to the business and not tools of performance, the restaurant is dedicated to providing better conditions for their efficiency. Company ownership Armani restaurant is a sole proprietor business that was started by Giorgio Armani, who is the founder. Start-up summary The establishment of Armani restaurant covered a range of expenses including, architectural and kitchen designing, making handbooks, pre-opening an infrastructure. The location was ready and lease at the rate of 2000 Dhs per month acquired to start the business. By the first eleven months, the restaurant will have begun to make profits which will increase by the second year. The owner plans to put in place a 210,000 Dhs capital together with 100,000 Dhs loan since it is equipped for a restaurant. Start-up funding AED Start-up Expenses for funding 50,000 Start-Up assets for funding 300,000 Total funding 450,000 Start–up requirements Start-up Assets Start-up cash requirement 100,000 Start-up Non-cash requirement 100,000 Additional cash 50,000 Cash balance on commencing date 50,000 Total assets 300,000 Start-up Expenses Legal 50,000 Logo, Uniforms and handbooks 10,000 Expenses on staff 10,000 Market plan 10,000 Others 5,000 Total expenses 85,000 Total requirements 385,000 Liabilities and capital Liabilities Long-term liabilities 200,000 Accounts payable (outstanding invoices) 2,000 Total liabilities 102,000 Capital Planned investment Financier 1 103,000 Financier 2 100,000 Investor 3 70,000 Losses at start-up (5000) Total capital 278,000 Total capital and liabilities 385,000 Company locations and Facilities Armani restaurant occupies over 40,000meters square area in the first eight floors and the last two floors of Burj Khalifa building, which provides a clear view of the city. The location and facilities of the restaurant reflect the person Giorgio Armani is. It is constructed with specific features, reflecting the Italian expensive wine shops with foods and facilities that blend modernization and the ancient Italy just like its designer owner. Wine shop in the restaurant represents the original expensive wine shops of Australia, in-house made with its own supplier. The highest floors’ locations allow high visibility of the city from the restaurant and SPAs. The menu The restaurant settles on a flexible menu that allows adjustment but will also adopt a bit of stability of menu items. The chef proposes that an 80% ordering meals will save on wastage and facilitate budgeting. The restaurant will also adopt the proposal. Cultural ingredients and recipes Armani has qualified chefs with the ability to create and blend ethnic foods as ordered. The traditional recipes are maintained for the clients who will like to embrace culture and ensure that they appreciate the money they spend in the services they obtain. The restaurant provides quality in food and other facilities and operates on 24-hour basis. Competitive comparison The restaurant offers facilities that enable it to stand out against its competitors. The speed in servicing customers is one of the strategies to stand out. The restaurant will also offer variety in clear menu boards with no confusions and perform periodic upgrades on the entertainment sector to stand out within its competitors. Sales literature Armani restaurant plans to use table toppers, handouts and mails directly to prospective guests which are cost efficient and are produced within the business. It embraces technology in storage of accounting information and internet accessibility for efficiency, easier accountability and speeds. Market analysis summary Armani’s targeted market segments include individual consumers and business consumers. Family units with children of different ages and white collar workers of different ages are all targets. Middle income earners are also accessible to facilities and upper-grade employees and young professionals with families are the restaurant’s target. Business guests are our targets too especially for lunch-hour meetings and conventions. The restaurant aims at becoming the best serving Italian restaurant in the whole UAE. Marketing programs We plan to carry out our marketing activities through the word of mouth. This is through offering quality services to our guests to the level of their expectations and even more. Guests are the best marketers if they are satisfied with services they receive. Our staff also serves as a means to achieve the word-of-mouth marketing strategy by telling people about the restaurant. Promotional activities such as birthday parties, concerts and celebrity parties are also welcome to market the restaurant. Another marketing strategy includes the participation in charitable activities in schools and the general society. This is also a sensitization strategy. Local market promotion also improves awareness and will increase customer attendance. Lastly is the local and international media marketing. Pricing and Profitability Strategy  Main Course One size STEAK ARMANI $32.90 CHICKEN MUSHROOM $24.90 FISHERMAN’S BASKET $29.90 MIXED GRILL PLATTER $26.90 SCOTCH FILLET $29.90  Salads TABOULI ~ $9.90 FATOUSH $12.90 Desert     OSMALIYE KASHTA PLATE $13.90 ZNOUD EL SET (LADIES ARMS) $13.90  Beverages     SOFT DRINKS & STILL WATER $3.90 SPARKLING WATER $5.90 LEMONADA $6.90 Quantity Revenue Items Price($) Daily Weekly Monthly Yearly Daily Weekly Monthly Yearly STEAK ARMANI 32.90 30 210 840 10080 987 6909 27636 331632 CHICKEN MUSHROOM 24.90 25 175 700 8400 622.5 4357.50 17430 209160 FISHERMAN’S BASKET 29.90 30 210 840 10080 897 6278 25116 301392 MIXED GRILL PLATTER 26.90 15 105 420 5040 403.5 2824.5 11298 135576 SCOTCH FILLET 29.90 25 175 700 8400 747.5 5232.5 20930 251160 TABOULI $9.90 25 175 700 8400 247.5 1732.5 6930 83160 FATOUSH $12.90 30 210 840 10080 387 2709 10836 130032 OSMALIYE KASHTA PLATE $13.90 30 210 840 10080 417 2919 11676 140112 ZNOUD EL SET (LADIES ARMS) $13.90 30 210 840 10080 417 2919 11676 140112 Budgeted income statement Year 1(AED) Year 2(AED) Year 3(AED) Sales 500,000 700,000 1,000,000 Direct cost on sales 50,000 80,000 120,000 Total cost of sales 50,000 80,000 120,000 Gross margin 450,000 620,000 880,000 Expenses Payroll 294,000 360,000 502,000 Sales and marketing 20,000 35,000 70,000 Taxes (payroll) 24,000 50,000 70,000 Others 50,000 55,000 Total operating expenses 388,000 500,000 642,000 EBITDA Interests 12,000 10,000 8,000 Taxes 0 10,000 30,000 Net profit 50,000 100,000 200,000 Budgeted balance sheet Assets Year 1(AED) Year 2(AED) Year 3(AED) Current assets Cash 200,000 260,000 350,000 Others 70,000 90,000 120,000 Total current assets 270,000 350,000 470,000 Non-current assets 0 0 0 Total non-current assets 0 0 0 Total assets 270,000 350,000 470,000 Liabilities and capital Current liabilities Accounts Payable 30,000 40,000 60,000 Long-term liabilities 100,000 80,000 50,000 Total liabilities 130,000 120,000 110,000 Paid-in capital 210,000 210,000 210,000 Retained earnings (20,000) (100,000) (200,000) Earning (50,000 ) 130,000 350,000 Total capital 140,000 210,000 360,000 Total liabilities and capital 270,000 350,000 470,000 Net worth 140,000 210,000 360,000 Conclusion and Recommendation The restaurant needs to consider the culture of the people where it is located other than its Italian originality. It should in involve the Arabic menus in its recipes to attract more customers. It should also set favorable prices affordable to a wider bracket of income earners and also fair to the business. The restaurant should employ more of the locals and keep improving them through trainings and work assignments. There is need for founders of new business to set up strategies and plan for the new business before remitting funds for its effect. Factors like location, size and name of the business need to be established and agreed upon. The initial stages of business operation may involve break evens or losses, however the losses should not be adverse and the period of losses and break-even should not extent for long since it will arm the survival of the business. There must be a plan for initial prices of the business products, and returns and the projected levels. References Cheese, P., Thomas, R. J., & Craig, E. 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