Dinner in the Sky: Business Plan - Essay Example

? Dinner in the Sky: Business Plan Executive Summary Dinner in the Sky is a Belgium company and has a unique idea of dining in the open sky with cables suspended via cranes. The company offers an exclusive feast which is meant for anyone who desires to transform an ordinary meal into a thrilling moment that will leave a lasting impression on their guests. Dinner in the Sky is a great place to eat, combining captivating atmosphere with excellent food. The mission is not only to have sumptuous food, but have efficient and friendly services too, because customer satisfaction is of paramount significance to the company (Mills et al, 2003). Dinner in the Sky operates in about more than 15 countries (Dinnerinthesky.com, 2010). Dinner in the Sky will use a crane to elevate the furniture, crew, food and 22 to 350 diners as high as 180 ft up. The company will also built a separately-supported "flying stage" to hold a piano and musicians so the guests can enjoy live entertainment while they eat aloft. The structure of the eatery will be portable and will need a space of almost 1500 sq.ft, hence can be held anywhere (sea side, public place, historical sites and fields etc), (Dinnerinthesky.com, 2010). The company's suspended table measures 26 ft x 19 ft (8m x 6m) and weighs approximately 17,600 (7983.25 kg) lbs fully loaded (11,000 lbs (4989.6kg)unloaded). Eight cables, connected at points on all four sides, bind the table to a crane. The company has planned to work with safety agencies before introducing the concept to the public. During inspection, seats will be overloaded with weights of more than 330 lbs (150 kg) each. Diners will be locked into their chairs by six-point seat belts that operate from the back side of the seat so they cannot disconnect themselves. The company will certify its system for safety by European-based testing agency (Mills et al, 2003). Dinner in the Sky will offer a stupendous New Asian-Swedish menu with a touch of Arabian influence in modish and comfy atmosphere according to the target market of Pakistan. The menu is enthused from different cuisine's specialties and is bound to appeal to a wide and varied clientele. The customers can get Swedish specialties like herring and meatballs, choose a red curry chicken with basmati rice, or an Asian grilled shrimp with spinach, tofu and black bean sauce, a special pasta dish entree every day, plus the 'all American meal' such as barbecue beef ribs and baked beans. The menu will change every 3-4 months, keeping the favorites. All these mouth watering delicacies will be offered at competitive prices. The restaurant will open seven days a week, serving from 6 pm to 2 am. Dinner in the Sky is available for a session of 8 hours. It can be divided or personalized according to the client's wishes. Dinner in the Sky accommodates 27 diners around the table at every session, with a chef, a waiter and an entertainer. Dinner in the Sky’s management team will comprise of personnel holding experience of being associated with restaurant management. The Restaurant Industry of Pakistan is the size of around more than a hundred. The web page of Karachi Snob.com, a famous tourism web site of the city contains comprehensive details of all kinds of restaurants which are spread out through the city (karachisnob.com, 2010). The restaurants are categorized with the type of cuisines which they offer. The customers usually dine out on weekends with their families and prefer to visit those places which offer good food at reasonable prices and a comfortable seating arrangement so as not to cause any inconvenience to the family. The size of the Target Market which the company will be specifically catering to would be the 10% of the population of the city who belong to the Social Economic Class A and B. The lower middle class and the middle class would also be welcomed through trade promotions and discounts to leverage the revenues of its business. The restaurant industry is growing at a steady rate as shown in the “Hotel, Restaurant & Tourism Directory of Pakistan” by Economic Research & Statistics Section Pakistan. Every year, approximately 25 to 30 entrants set up restaurants in the city of Karachi. All of the existing restaurants are more or less on the same format and have somewhat the same menu. The only competitive edge which they have over each other is that of prices and differences in tastes. The company are seeking loan guaranty for $4,000,000 with a 7% interest rate. The company is investing $7,500,000 of its own capital. Its start-up costs come to $11,500,000 which is mostly expensed equipment, furniture, painting, reconstruction, rent, start-up labor, liquor license, six months operating cash, and legal and consulting costs associated with opening its restaurant. According to the financial projection the company will require $11,500,000 as start-up expenditure. The company shall generate Rs. 7, 20, 00,000 in sales by the end of year two and produce net profits by the end of year three. Dinner in the Sky’s objectives for the first three years of operation includes: Keeping food cost below 35% of total revenue. Keeping employee labor cost between 24-29% of revenue. Achieve average sales between Rs\- 60,000,000-90,000,000 per year by the end of fourth year. The company is looking forward to make a difference in the world of eateries by producing customer delight, beyond and above of what they experience on land. “We don’t want satisfied customers, we want delighted ones.” 2 Environmental Analysis Pakistan is a growing economy with a growing middle class. The country has a GDP of approximately $180 billion with per capita income of $2,000 (State Bank of Pakistan, 2011). The economy is experiencing a high inflation rate which is a set back because it is negatively affecting the growth rate of the economy which stands at approximately 2% from 4% of the previous year (Economywatch.Com; Theodora.Com, 2011). However, as a growing economy, Pakistan is quoted to have a growing economy which complements foreign direct investment and most of the country forms virgin markets for new and innovative ideas (Sathar et al 2009; Vaughn, 2010). Besides being the business hub of Pakistan, Karachi houses people coming from various cultures which sometimes cause political unrest in the city. However, elite towns of the city, namely Muhammad Ali Society, Clifton and Tariq Road remain calm (Hashmi, 1965). There are many multinational food chains operating in Karachi namely Pizza Hut, KFC, McDonalds, Mr. Burger, Butler’s Chocolate etc. Besides this, the city also hosts famous international brands for clothing namely Levis, Piere Cardin, Nike, Adidas, Peter Brown etc. All this, along with the market of the city makes good business prospects for launching a venture which is purely new and innovative for the market (Rubina et al, 2004). The restaurants are categorized with the type of cuisines which they offer. The customers usually dine out on weekends with their families and prefer to visit those places which offer good food at reasonable prices and a comfortable seating arrangement so as not to cause any inconvenience to the family (Industry Reports, 2009). The size of the Target Market which the company will be specifically catering to would be the 10% of the population of the city who belong to the Social Economic Class A and B (Saqib, 2007). The lower middle class and the middle class would also be welcomed through trade promotions and discounts to leverage the revenues of its business. The restaurant industry of Pakistan is known to be growing at a steady rate. Studies and research shows that the industry experiences approximately 25 to 30 entrants in the city of Karachi itself. All of the existing restaurants are more or less on the same format and have somewhat the same menu. The only competitive edge which they have over each other is that of prices and differences in tastes (Industry Reports, 2009; Hotel, Restaurant & Tourism Directory Of Pakistan, 2009). 2.1 The Menu: Cultural Barrier Dinner in the Sky Restaurant will be unique to the Sea View area. National and International creative food, and a style of service that will make everyone feel welcome and special. The company’s food products will be of the finest quality and prepared with sensitivity and care. The company will 'go all the way up to the sky to satisfy its guests. The company has to take care specifically of the kind of food it sells as Pakistan being a Muslim country, does not consume pork and certain food. They only consume Halal food which means that the food has to be prepared in a certain way, away from all impurities. Dinner in the Sky can contact local food vendors and hire Pakistani Chefs who could guide the company as to how a certain recipe of the restaurant could be prepared, while being in the boundary of Halal (Pakistan’s Tourism Division, 2006). 2.2 Production Food production and assembly will take place in the kitchen of the restaurant. Fresh vegetables, meat and dairy products will be used to create most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. The kitchen staff will have the best in culinary education and work experience. The company’s creative talents will complement one another. 2.3 Entertainment Facilities Two 19 inch TV sets will be installed in the center of the restaurant and the company will also built a separately-supported "flying stage" to hold a piano and musicians so the guests can enjoy live entertainment while they eat aloft. 2.4 Pricing and Profitability The company anticipates its total sales allocation to be 85% restaurant sales and 15% catering sales. The combined cost of sales will be 40% producing a gross profit of 60% on total sales. Prices will be competitive with other upscale restaurants in the area. However, it is the strategy of Restaurant to give a perception of higher value than its competitors, through its food, service and entertainment. 3 Competitive Analysis Its direct competitors are other local restaurants which are set on a theme. They are Lal Qila (The Red Fortress), Shan-e-Mughlia (The Demeanor of the Mughals), Village Salt and Pepper, Revolving Restaurant and Evolution. These restaurants are premium priced eateries and carry a theme and the consumers mainly visit them to enjoy banquet meals along with their friends and kin. Revolving Restaurant would be the company’s primary competition as the restaurant is at a high rise roof-top location which rotates smoothly giving the guests the whole view of the city. Other medium class restaurants are not as trendy and mainly compete on prices. Moreover, taste is the ultimate factor which hooks the consumers of Karachi. Apart from that, many Karachites also prefer to visit sub-urban restaurants for the peace and tranquility offered there (Hasan, 2002). Moreover, the list of Restaurants enumerated in the web page of Karachi Snob.com give a comprehensive picture of the eateries operative in Karachi (Karachisnob.com, 2010). The company’s competitive edge is the menu, the chef, the environment, the management, the service and its friendly and unique place. The management and head waiters will handle every detail to make customer's exclusive evening extraordinary! So as to ensure their frequent arrivals here to satisfy their taste buds along with a memorable experience. The creation of a unique and innovative fine dining experience will differentiate the company from the competition. The restaurant will stand out from the other restaurants in the area because of the unique design, decor and ambiance. The company will offer a fine dining experience in a cozy atmosphere. Product quality is not only great food but great service and atmosphere. The menu will appeal to a wide and varied clientele. It is International with an interesting twist. Controlling costs at all times without exception (Pakistan’s Tourism Division, 2006). 4 Strategic Plan 4.1 Market Segmentation Dinner in the Sky Restaurant will intend to cater to a wide group of people. The company wants everyone to feel welcomed and relaxed in a cozy atmosphere with a wide and varied menu in an experience which they have never heard of before. It is Dinner and the Sky’s goal to have "something for everyone" on its menu. In looking at its market analysis, the company has defined the following groups as targeted segments (Rubina et al, 2004). Business Officials; Occasions/Events; The Family Families will come for the accommodative menu and friendly service. The excellent value in their meals will keep the restaurant in favor with the customers. 4.2 Marketing Strategy 4.2.1 Price The principal pricing strategy which the company will adopt would be to set market skimming prices. As this service would be entirely new for the market, the company will skim the market with higher prices in order to get the most profit out of the high income earners. With due course of time, the company will reduce its prices in order to cater to the mass markets who will be able to afford its service at least once a month at certain price level. 4.2.2 Place The Sea View area is one of the most desirable retail locations in Karachi. The Chamber of Commerce rates it as the third best retail market in the state. There are more than 400 businesses in a 1/4 square mile area with average sales of $18, 000 per square foot as the data depicts (Industry Reports, 2009). An area of 1500 to 2000 Square Yards will be needed to operate the cranes and elevation of the mobile restaurant. A rent will have to be paid to the authorities to operate in different locations depending on the market the company would wish to cater. After Dinner in the Sky’s stay on the Clifton beach of Karachi, the company may move its facility to open grounds of Gulshan-e-Iqbal and Nazimabad. 4.2.3 Promotion: Focusing on the unique aspect of the theme of the company’s service (healthy, tasty foods along with a memorable experience) a mix of marketing vehicles will be created to convey its presence, its image, and its message. Print media: Local newspapers, magazines and student publications Hotel guides: Chamber of Commerce brochures Direct mail: Subscriber lists, offices for delivery Misc: Yellow pages, sponsoring charity events 4.2.4 Service: Dinner in the Sky service is an offering which creates a gap in the market because there is currently no offering like Dinner in the Sky. The company will commit to provide its consumers with an unforgettable experience. The restaurant’s kitchen will be mobile. The orders will be placed on the ground and while the food is prepared, the facility itself, consisting of 27 seats will be hoisted up to an altitude of a maximum of 180 feet above the ground via cranes with attached eight cables. Meanwhile, their food will be prepared and when it is ready, the diners will be brought down and when the food is served, the facility will again give the customers a ride in the sky (Mills et al, 2003). The Restaurant will initially operate on appointment basis and will be run during teatimes till dinner because of climate constraints. 4.3 Strategy and Implementation Summary Dinner in the Sky’s strategy is simple. The company intends to succeed by giving people a combination of excellent and interesting food in an environment that appeals to a wide and varied group of people. The company will focus on maintaining quality and establishing a strong identity in Pakistan’s community. The company will direct all of its tactics and programs toward the goal of explaining "who the company is and what the company does". The company will keep its standards high and execute the concept so that word-of-mouth will be its main marketing force. The company is not striving to be the lowest-priced restaurant but is aiming to be the value leader. 4.4 Sales Strategy Dinner in the Sky’s sales plan is to establish and maintain position within its local customers. The strategy is to build more customers in order to increase revenue. The company will focus on making all its customers happy with its food, service and entertainment options. The company will train every new employee so they will fit in with Dinner in the Sky's concept, which is "Wonderful food, and knowledgeable service aimed to give its customers an outstanding experience." 5 Operations 5.1 Facilities & Offices The restaurant at Sea View will be at a 1500 Square foot space. The licenses and Codes of Issues will be taken. New equipment will be purchased and installed by the general contractor (Mills et al, 2003). 5.2 Hours of Operation The restaurant will be open for dinner and hi-tea 7 days a week. Service will begin at 05:00 PM and end at 01:00 AM. The restaurant will be closed on public holidays. 5.3 Employee Training & Education Employees will be trained not only in their specific operational duties but in the philosophy and applications of the company’s concept. They will receive extensive information from the chef and be kept informed of the latest information on healthy eating. 5.4 Systems & Controls A big emphasis is being placed on extensive research into the quality and integrity of its products. They will constantly be tested for its own high standards of security, freshness and purity. Food costs and inventory control will be handled by the company’s computer system and checked daily by management. Routine checks on the cranes, cables and the facility itself will be performed so as to provide its customers a safe and secure environment (Mills et al, 2003). 5.5 Food Production Most food will be prepared on a mobile facility. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Food will be made mostly to order and stored in large coolers that will be placed near the crane (Mills et al, 2003). 6 Technical Aspects (Mills et al, 2003) 6.1 Size of the platform in transport Length: 6 meters Width: 2, 5 meters 6.2 Size of the platform built up Length: 9 meters Width: 5 meters 6.3 Weight of the table 7 tones (empty) to 10 tones (full) 6.4 Size of the crane in transport Length: 11 meters Width: 2, 7 meters 6.5 Size of the crane built up Length: 11 meters Width: 8 meters including support legs 7. Conclusion With no competitors of the market offerings of Dinner in the Sky, the business is expected to generate high revenue and provide a swift payback to the investors. Besides this, such an innovation is likely to attract more customers as this is something which the market has not ever seen and for some of the people, not even heard before. As the idea will be very lucrative for the market, the business has the opportunity to skim it with high prices to generate the maximum profit. As the market will start to mature, the company will have to operate on lower margins and reduce its prices to attract the masses. With its immaculate quality food and service which comes along with Dinner in the Sky’s Brand Promise. Besides this, the market of the business compliments its service as the Karachites mostly prefer to dine-in only when they go for outing with their families. Dinner in the Sky being a restaurant which offers the service of literally taking its customers to the sky will be a complete entertainment and dining package for the market. References HOTEL, RESTAURANT & TOURISM DIRECTORY OF PAKISTAN (2009). Islamabad: Economic Research & Statistics Section, Tourism Division, Govt. of Pakistan, 2009. Print. KARACHISNOB.COM (2010). “Restaurants”. Web 26 March 2011 Available at INDUSTRY REPORTS (2009). “Restaurant Industry in Pakistan”. Industry Reports. 2009. Print MILLS, J., CLAY, J. M., PARSA, H. G., & ISMAIL, J. (2003). Restaurants in the Sky. Journal of Foodservice Business Research. 6, 45-65 DINNERINTHESKY.COM (2010). Dinner in the Sky. [Online] Available at: http://dinnerinthesky.com/dits_dinner/dinner.php [Accessed 26 March 2010] STATE BANK OF PAKISTAN, (2011). The State of Pakistan’s Economy. First Quarterly Report 2010 – 2011. 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