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A contingency buffer is included in the start-up cost to ensure the business in not under
financed, as well as giving the business adequate funding to sustain it in the first six
months of start-up. Our industry experience confirms a longer ramp-up stage for
restaurants over other retail/service businesses. A common mistake for new entrepreneurs,
but fully addressed in this business plan.
We have evaluated traditional and non-traditional risks associated with Restaurant failure
and accounted for them directly in the business plan. Instead of dismissing the risks, we
have identified valid mitigation strategies for each.
1.1 Objectives
Dino’s Diner objectives for the first three years of operation include:
1.2 Mission
Employee welfare, participation, and training are equally important to our success.
Everyone is treated fairly and with the utmost respect. Our employees will feel a part of
the success of Dino’s Diner.
Our concept combines variety, atmosphere, entertainment and a superior staff to create a
sense of 'place' in order to reach our goal of overall value in the dining/entertainment
experience. We offer fair profits for the owners and a rewarding place to work for the
employees.
The creation of a unique and innovative fine dining atmosphere will differentiate us from
the competition. The restaurant will stand out from the other restaurants in the area
because of the unique design and decor. We will offer a fine dining experience in an
electric atmosphere.
2. Product quality:
The menu will appeal to a wide and varied customer. Our eclectic menu features
specialties appealing to all kinds of food lovers. Italian pastas, juicy steaks, soups to local
delicacies.
Employee retention and development programs will be a primary focus and success
platform for this business. Through these programs, we will be able to draw seasoned and
elite professionals and build a committed work force. We have budgeted for a stock
option program for Chef and Management positions to subsidize a lower salary base. This
lowers our immediate overhead and attracts quality staff.
We will control costs at all times, without exception. Cost Control will be an integrated
function of the restaurant from the onset. Cost control is about managing the numbers -
interpreting and comparing the numbers that impact the bottom line. 80 percent of the
success of a restaurant is determined before it opens. Our focus is to reduce the cost of
goods sold to meet our profit margin goals by managing the following crucial elements of
cost: Purchasing, Receiving, Storage, Issuing Inventory, Rough Preparation, Service
Preparation, Portioning, Order Taking, Cash Receipts and Bank Deposits.
Items Cost(Rs.)
construction cost 1,307,000
furniture 542,250
machinery 967,000
advance rent 1,200,000
preliminary expenses 50,000
working capital 1,036,000
total 5,102,250
Machinery:
Unit Total
Item Detail Quantity
Price(Rs.) Price(Rs.)
Dining Table – Square (2x2) 25 6,000 150,000
Chairs (Standard 14”) 100 1,500 150,000
Kitchen Cutlery Set 2 2,500 5,000
Dining Cutlery 150 150 22,500
Air Conditioner Split Units (6 Ton) 2 31,000 62,000
Hot Water Geyser Large 1 20,000 20,000
Halogen Lights 25 250 6,250
Wall Lights (Large) 4 1,500 6,000
Portable Emergency Light 4 2,500 10,000
Generator (1.5 KVA) 1 90,000 90,000
Counter Chairs 2 1,500 3,000
Office Table & Chair Set 1 10,000 10,000
Waiting Chairs for Take away
5 1,500 7,500
customer
Total 322 168,400 542,250
Operating Criteria:
The restaurant will be located in Blue Area Islamabad. The restaurant will service lunch,
dinner, and after-hours dining during the week and weekends. The restaurant will operate
during peak service time to take advantage of street traffic, and after-hour patronage from
the entertainment facilities in the area. Service will be available during the following
hours:
Lunch: Monday to Sunday, 11 a.m. - 2:30 p.m.
Dinner: Monday to Sunday, 5:30 p.m. - 12 midnight
3.0 Services
Dino’s Diner will feature international dishes, an eclectic atmosphere, and superior
service. Our food will be of the finest quality and prepared with exotic flare. Customer
satisfaction is the driving force behind our success. We will update our menu every 4
months, but maintain the 'favorites' for loyal Customers. Portions will be modestly sized,
garnished with stunning presentation.
In order to attract more selected customers we are also offering a separate selection of
Sheesha flavors.
The kitchen staff will have the best in cooking education and work experience. Their
creative talents will compliment one another. The lounge and restaurant staff will offer
the finest service in an electric atmosphere and offer customers an extraordinary dining
experience.
3.1 Dino’s Diner Menus
Dino’s Diner varied international menu will feature a starters selection, Italian food, a
selection of steak choices, a seafood selection and for the traditional eaters a selection of
local Pakistani foods selection. The menu flows together to create complementary
elements. The final menu will be defined by the Executive Chef and paired with the
drinks menu. Dino’s Diner marketing will focus on our exotic foods, but our hours, target
market, and location will produce significant juice drinks sales. Tapas, in particular, are
small dishes meant for sharing while smoking sheesha, or other mixed drinks, and the
Tapas menu will play up this idea with drink & sheesha suggestions.
The list below offers a small selection of our opening menu offerings:
Dino’s Diner Tapas
Salads
A complete salad bar with plain and cream salads
Main Course
Steaks: (Chicken & Beef)
3 to 4 types of steaks served with a choice of baked or mashed potatoes or French
fries and choice vegetables
Italian:
Spaghetti
Pasta
Lasagne
Pizzas
Chicken:
Burgers
Deserts
1. Portion Selection:
Nearly 95% of our surveyed focus group endorsed having a choice of different size
portions. Our concept is built to offer different-sized portions. Our customers want the
option to choose what satisfies their appetite.
Customer satisfaction with food and service has been and continues to be of utmost
importance, but our findings indicate that the lighting, atmosphere, and other options to
improve the dining experience are also factors in customer decisions. We take all these
factors in consideration for the design of this cosmopolitan restaurant.
3. Reasonable Prices:
This was no surprise given the economic tide. Although the restaurant industry as a whole
has seen grow, customers are demanding value for their dining. And we have given very
reasonable prices for quality food.
Dino’s Diner intends to cater to a wide customer base. We want everyone to feel
welcome and entertained. We have defined the following groups as targeted segments
that contribute to our growth projections:
These particular market segments are 25-45 years old, have disposable income, and are
seeking upscale, trendy, and comfortable restaurant options. These are the types of people
who frequent other restaurants and lounges in the area. They are likely to spend more on
experiences they perceive as unique, cosmopolitan, and sophisticated. They are also the
most open to trying something new, food wise, and will embrace our international fusion
food.
Dino’s Diner
Inventory and staff have a much higher chance of success, especially when combined
with prior experience in the restaurant industry.
Restaurants make money by taking inexpensive ingredients, combining them in creative
ways, cooking them properly, and selling them at a much higher price. Any ingredients
wasted in the kitchen are money thrown out. Any time wasted in seating customers,
taking orders or preparing food is money walking away. While some entrepreneurs think
that success is as simple as a good location and a trendy concept, we know the truth:
To succeed in the restaurant industry, you need an understanding of the risks and
financial conditions, the ability to handle enormous pressure, and the organizational
skills to bring off what is essentially a giant catered party, two to three times a day.
Management recognizes the key to success at this time of initial opening is extensive
media promotion. This must be done aggressively in order to accomplish our service
goals. A healthy budget is allocated for the first year. A primary part of the budget is
allocated to create the media and customer buzz for the month prior to opening and the
next three months after the grand opening. The full Marketing program is as follows:
Media Objectives and Strategy:
Establish our image as a unique Blue Area restaurant with great service, value, and great
food served in an eclectic atmosphere. We will maximize efficiency in the selection and
scheduling of advertisements by:
Additionally, we will develop a consistent reach and frequency throughout the year,
targeting each specific customer segment within a five-mile radius, and new
'suburbanites,' who still appreciate in-town dining.
Promotional Campaign:
The best way to reach our potential customers is to develop an intense advertising
campaign promoting our Dino’s Diner concept of "Spice of Life." In addition to standard
advertising practices, we will gain considerable recognition through newspapers,
newsletters and public announcements. Consumers will be encouraged to visit our
website to be greeted with a flash media intro that highlights the restaurant, past
happenings, upcoming attractions and our dynamic menu.
Our periodic customer surveys and weekly menu item sales evaluations will help us to
understand what advertising is working and what is not; basically, who we are reaching.
Our goal is to understand our customer, measure the success of our direct marketing and
media activities, and redirect advertising as effectively as possible.
Publicity Strategy:
Dino’s Diner will focus on the following publicity strategies:
Dino’s Diner
Develop a sustained public relations effort, with ongoing contact between key
editors and top-level personnel at local dining publications.
Develop a regular and consistent package update program for the major target
media, keeping key editors abreast of all new promotions, and menu
introductions.
Establish contact with editorial staff for the purpose of being included in
entertainment "round-ups"--product comparisons in dining publications and the
local papers.
Produce a complete Dino’s Diner Restaurant history and menu offering piece to
be used as the primary public relations tool for all target media editorial contact.
This will also be effective for inclusion in press kits.
Every first Monday of the quarter, we will have a special evening for restaurant people. A
perfect night for the local area's restaurant owners, chefs and staff to get together to
discuss the market and food trends, and possible Co-op efforts to promote the Blue Area.
This is not a conflict of interest; it is an effort to increase visibility and patronage across
the Blue Area. We will also invite the Blue Area Alliance committee for their
participation.
Wait staff will service appetizer to customers waiting to be seated or on the wait list.
V.I.P. Party:
We will host a V.I.P. Dinner before the 'Grand Opening.' This will serve the dual purpose
of training our staff and introducing ourselves to the community. The list of individuals
we will invite comes from the Chamber of Commerce and Tourism. We want their full
commitment to the restaurant to draw the tourist dollars.
Critics' Choice:
Prior to the Grand Opening there will be two preliminary parties catering to the Media
and Critics community. We will encourage the media and restaurant critics to meet at the
restaurant and review the decor, service and food. This will be a preliminary review,
where we will consider constructive input to make minor revisions prior to the true Grand
Opening. This initial review and input will give critics and media commenter a stake in
Dino’s Diner success, through their contributions to the final design.
Brochures:
Make a brochure for the in-town hotels and business establishments to provide to their
guests and staff, containing interior pictures of our restaurant, menus and prices.
Dino’s Diner
Private Functions:
Target marketing to businesses for regular business lunch and dinner entertaining, and
private functions.
Newspaper campaign:
A much targeted media campaign to obtain featured articles about the restaurant in their
Living, Entertainment and Dining segments. Notices of all live entertainment segments
and special features will be posted to local newspapers' calendar announcements.
Media Relations:
Several media relations teams will be utilized to market the Restaurant. Ad’s group and
Midas are two media companies we will utilize for media relations. Both companies have
an insightful presence and connection with our target market.
Billboard Advertisement:
One month prior to the opening, distinct billboard ads will advertise the launch of the
Restaurant.
residents. The menu is somewhat formal for this market segment, but the juice corner and
coffee attracts a good crowd. During this study it was evident that some Customers came
exclusively to sit at the juice and coffee counter, without any intent of dining in the
restaurant.
Envoy Continental is more of a formal dining restaurant and meets a certain need within
the community, but I don't see it as a direct competitor of Dino’s Diner. I do feel that it
has some very special elements that have helped it succeed over the past years, which
Dino’s Diner can benefit from.
Market Analysis Conclusion:
At the end of the day, everyone that sells prepared meals in this district is a Dino’s Diner
competitor, because we all compete for the same home meal replacement rupees.
However, there are two segments of the restaurant industry that are our main competition:
the casual dining restaurant and the fine dining value restaurant.
So, if the food and service is better at a fine dining restaurant than a casual restaurant, but
price has become a factor as a result of the economic turns, where is a customer more
likely to go?
There is no absolute answer to the question, but the solution is to deliver the best food at
the best price with the highest level of service in one establishment. This is the very
definition of value and the concept at the heart of Dino’s Diner's business model.
5.2 Sales Strategy
Our strategy is simple: we intend to succeed by giving our customers a combination of
delicious and interesting food in an appealing environment, with excellent customer
service, whether on their first visit or their hundredth.
Our marketing strategies are designed to get critics and initial customers into our doors.
Our sales strategies must take the next step and encourage customers to become repeat
customers, and to tell all their friends and acquaintances about the great experiences they
just had at Dino’s Diner.
New restaurants often make one of two mistakes: they are unprepared or under prepared
for opening, and initial poor service, speed, or quality discourages customers from
returning, or they spend all of their efforts at opening, and are unable to maintain the
initial quality customers expect on return visits, decreasing word of mouth advertising
and leading to poor revenues.
Dino’s Diner sales strategy requires consistently high quality food, service, speed, and
atmosphere. We can accomplish this by:
Hiring employees who genuinely enjoy their jobs and appreciate Dino’s Diner
unique offerings
Continually assessing the quality of all aspects mentioned above, and
immediately addressing any problems
Dino’s Diner
Interacting with our customers personally, so they know that their feedback goes
directly to the owners
Evaluating food choices for popularity, and keeping favorites on the menu as we
rotate seasonal foods and specials
• BBA(in Process)
The Sales are expected to increase by 15% every year while the cost of raw materials is
assumed to increase by 10%. The 15% annual increase in revenue is expected to result
from a part increase in population increase and part increase in product price. The prices
used to calculate the gross revenue earned are based on the billing rate at which we will
charge the customer. The prices are also inclusive of the General Sales Tax.
Rent Cost
The rent for the assumed premises will be Rs. 100,000/- per month. It is assumed that Rs.
1,200,000 will be given in advance before possession of premises. This will include 6
months deposit and 6 month advance rent. The rent would be payable on a monthly basis
and is expected to increase at the rate of 10% per annum for the projected period.
Utilities Requirement
The following table presents the assumed breakup of utilities on a monthly basis:
As depicted above the most of the food machines require considerable gas during the
preparation process. The preheating procedure of the equipment before commencement
of preparation also consumes considerable gas. It is assumed that utilities expenses will
be increased by 10% every year.
The provision for pre operating costs is assumed to be Rs. 50,000 which will be
amortized equally over a 5 year period.
Financial Charges
It is assumed that long-term financing for 5 years will be obtained in order to finance the
fast food setup which would mainly include construction & décor of Building, Purchase
of machinery & equipment, purchase of inventory etc. This facility would be required at a
rate of 15% (including 1% insurance premium) per annum with 60 monthly installments
over a period of five years. The installments are assumed to be paid at the end of every
month.
Dino’s Diner
8.1 Income Statement:
Dino's Diner
Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Financial Charges (15% per annum) 357,889 298,344 229,228 149,001 55,878
Dino's Diner
Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow From Operating Activity
Net Profit 1,097,841 1,700,952 2,418,873 3,272,425 4,285,805
Depreciation Exp. 281,625 253,463 228,116 205,305 184,774
Amortization Exp. 10,000 10,000 10,000 10,000 10,000
Dino's Diner
Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current assets
Fixed Assets
Ratios