Market Analysis for Buffet Restaurant

Market Analysis for heel counter RestaurantThe creation of a unique, innovative, entertaining, middle scale atmosphere that ordain contraryiate us from the competition. The lavishlyest quality f are is unbelievably low tolls in a clean, fun environment. Controlling be at entirely times, in all areas. Hiring the best plurality available, dressing, move and encouraging them, and thereby retaining the friendliest, most efficient module possible. department II Business descriptionMission We want our guests to take away the total live when visiting Enjoy with us. Not only pass on our guests receive a great(p) meal, they bequeath also be provided with a fun atmosphere. We ordain be doing unique things (such as serving all you rump eat) that depart set us apart from the competition. We leave behind want the eat dumbfound to be as pleasing to the senses as it is to the palate.Our main focus provide be serving quality forage at a great value. We impart feature a l arge selection of freshly wide-awake feed, most in full view of our guests. The purpose is service that client satisfaction is paramount. Particularly, we want to be the eating house of choice for everyone families and singles, young and old, male person or female.On the former(a) hand, employee welfare allow be crucial to our success. We want our employee to feel a part of the success of Enjoy with us. talented employees throw happy guests. Similarly, we pass on combine computer menu variety, atmosphere, ambiance, and friendly staff to create a sense of place in vow to slip away our goal of overall value in entertainment experience.Why do we think bendists play along our shop?First of all, as we know, Singapore is a country includes 3 national (India, Chinese, and Malaysia). So, this reason is very comfortable to withdraw travelers come to Singapore. We think when they travel to Singapore they want to try traditional food in this country surely. Consequently, we giv e decide to affair thump eatery. With Buffet eating place, client washstand try 3 kinds of food of 3 different national easily.Secondly, we would analogous to open this restaurant called Enjoy with us. This means when customers come with us, they can enjoy their taste by themselves wholeheartedly. pull roundly, we direct our spateiness in Sentosa because this place is most tourists giveing come during their tour surely. It will take place around 1,000 square meters and totally designed to reflect and describe all kinds of food in 3 national.Our improvident term goal is to catch people interested and slowly cause market share from early(a) restaurant.Our long term goal is to be well known in the world. This means when people talk close restaurant in Singapore, they will think ab proscribed our restaurant immediately. crop up up fund S$5 Million investmentAs we know, Sentosa is an icon of Singapore, so the rental will be very over setd (around S$ccc,000). Moreover, our business is bracing, so we demand to use about 10% of the budget monetary value to build our crack name (around S$500,000). Furthermore, this restaurant business envision is prepared to obtain financing for the initial send of this purpose. The financing is required to begin work on kitchen design, architectural plans, manuals and expression books, site selection, equipment purchases, and to cover expenses in the first year of business (around S$2,000,000). In addition to the upper-case letter contrisolelyions, it will allow buffet restaurant to successfully open and maintain operations through year one.On the other hand, concentration will be on maintaining quality and establishing a strong identity in each local market. Similarly, we also contain to pay management fees and salaries to staff (around S$900,000 for first year). Besides that, we motivation to require cash and long term asset (around S$1,000,000). Consequently, our business will need about S$5 million. partin g terzetto MarketingA. Reoceanrch and analysisTarget market (customer) identifiedIn looking at our market analysis, we name defined the following groups as targeted segments. Below are our targeted market segmentsAge Seniors, young married couples with children, teenagers, citizens. (Especially foreigners) sexual urge we will equally target both sexes.Income We will appeal to the high side of low income individuals and to all in the middle income bracket.By our definition, we will have very broad appeal for our concept. It is our goal to be the restaurant of choice for the largest dining audience in Asia and Europe.Singapore has more than 10 millions tourism arrivals in 2008. With the number of tourism arrival to Singapore like that, this condition has advantage to our business.Furthermore, with our restaurants seating almost 400 people, however, we hope it will have an average of 300 customers customary for the first year and to take on 20% each year. It is our goal to have ne arlything for everyone every sidereal daylight on our menu. Particularly, we need to maintain our loyalty as we should focus on their changing of necessity and menu choices.Besides that, our lunch scheme is dual purposed. As we know, some kinds people do non have lunch time, from that reason, we want to confirm the price point at lunch as low as possible to lionise us in competition with fast food restaurant. Not only do our guests get a sandwich, drink, and fries moreover also a salad, dessert and a selection of hot food items. On the other hand, we can reduce the hot food compartmentalisation from dinner we will be able to keep our food damage in line with the reduced price. Consequently, we think this is a strategy that will broaden our customer base at lunch while suave maintaining our core market segment.2) Market needsOur business is Buffet restaurant, so we think we need to focus onSeeks strong value.Wants variety and spirit in its food.Looks for urge of service.W ants an entertaining dining experience.Insists upon a clean, friendly, and imbibeive dining environment.3) Competitive advantagesAs we know, Singapore is a country which attract tourists come and travel. Furthermore, they want to spend leisure time. This factor contributed to the large demand for profound restaurant in Singapore today. From that reasons, the competition is strong. Due to intense competition, our restaurant must look for ways to differentiate their place in order to achieve and maintain a competitive advantage.a) Competitive comparisonIn competing against the casual theme restaurant, we will have the following advantagesLower price point for a complete meal.There will be no tipping at Enjoy with us, we are self service.Speed of service no waiting for food. Everything will be readily available hot, fresh, and scoreed as requested.We will provide more entertainment than our competition. There will be something for everyone, everyday of the week.There will be no conf using menu poster when guests arrive at our restaurant. We have made it simple one price, everything includeb) Technology we will invest in a high speed computer to provide a fast and comfortable connection to affiliation to our cash registers. We will also order online, email, and have a sack page.B. Marketing plan1) Market strategy sales and distributionOur main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactical maneuver and programs toward the goal of explaining who we are and what we are all about. We will price our products fairly, keep our standards high. harm strategy All menu items are moderately priced. gross sales strategy The sales strategy is to build and open new locations on enrolment in order to increase revenue.2) price and opening hoursBuffet Breakfast (6.00 am to 11.00am, Mon to Sun) Adults $20, sister $10Buffet Lunch (12.00 noon to 2.30pm, Mon to Sun) Adults $ 30, Child $ 15Buffet Din ner (6.30 pm to 5.30 pm, Mon to Sat) Adults $ 40, Child $ 25Especially Buffet (6.30 pm to 11.00 pm) Adults $ 50, Child $30NoteChild = 5-12 historic period old. dispatch for accompanied child under 5 long time old.All prices capable to 10% service charge and 7% GST.Prices subject to miscellanea.Our business includes Buffet Breakfast, Lunch, and Dinner. Particularly, we have 1 special service that unceasingly serve wells every Sunday. This service will free flow of soft drinks juices, drawing off beer and selected wines and champagne.3) Advertising and processionOur business is new, so we need to have a good marketing plan to compete with them. Im going to use 10% of the budget cost which is 1/2 million to build our brand name.You will see our advertising everywhere, on television, on train, on the bus and news wallpaper and also in the magazine of Singapore airlines, tiger airways, Jetstar airlines.Website is not very important as we dont provide online purchase but we sho uld have a nicely designed web to let people can do a research Enjoy with usLeaflets will be given at all MRTs for 1 working day from 5pm to 6 pm this is the most crowded time when people are going stem after works.Particularly, in Singapore, they trade so galore(postnominal) restaurants. Consequently, let to our business for advantages, we will have strategy asDoes not have the widest variety of food but everything here is of great quality.Free flow of fresh fruit juice, e.g. mango, pink guava, apple juices self serve from bottles chilled in crushed ice.To-die-for desserts and pastries youd wish you had 2 stomachsAlways give promotion and discount on weekend days or holidays.Always change and prepare different kinds of food. It will make interesting in customer. They can come again and again.Section IV OperationsQuality food fresh food, home style care.Variety, Variety, Variety A different menu for everyday of the week will feature.Self service Every new guest will receive a gu ided tour explaining our concept and the self serve system.Friendly employees our employees will be ringing dinner bells when fresh foods come out. Furthermore, we will dress uniform that our customers can imprint us easily.Reduced dinner pricing on Monday Thursday, the dinner price will be slightly lower than on Fri/Sat/Sun.On the other hand, our principal owner will go outside ownership in Enjoy with us on an equity, debt, or combination behind in order to facilitate the take leave up and prepareth of our restaurant. out upKitchen designArchitecture plansTraining this will cover training of employees and management as well as cleaning and organizing the restaurant to opening.Manuals/Handbooks/Recipes. edifice/ Land/ Equipment we can build from ground up or we can do conversions from existing or close restaurants.Number of staffs 10 managers, 5 securities, 15 waitresses, 5 bartenders, 2 receptionists, 2 cashiers, 3 chef, 5 cook helper.Location and facilities Sentosa is the best place to open this kind of business because traveler can discover our shop easier and they can enjoy easily. With this location, we can attract customer from oversea and also citizen. They can come our restaurant on weekend to relax.Proximity to supplies Supply can get from Malaysia, China, India directly or intermediary in Singapore.Access to transportation Transport of foods and materials by sea or plane. Moreover, we need to have warehouse storage to hold foods and materials.Section V ManagementA. Management team As our restaurant is grim business, it requires a simple organizational structure. Implementation of this organization to make all of the major(ip) management decisions in addition to monitoring all other business activitiesManagement TeamLegal structure stock agreement, avocation agreements, ownershipCarefully to partnership or corporation.Need to follow sanctioned about business in Singapore.Need to clear about use agreement, stock agreement.C. Board of direc tors, advisers, consultants Board of director is the principal owner. They will offer outside ownership in Enjoy with us to improve our restaurant.Section VI FinancialA. Financial planSales our restaurant will open on 1/1/2011.Cost of goods sold The cost of goods sold was determined by taking actual Profit and going away statements from heterogeneous restaurant concepts and then using our pricing structure and guest counts to arrive at costs.Marketing Fees these funds will be use for the production of various marketing materials.Advertising these funds will be used to maintain our sales at projected levels.Management Fees we will use these dollars for accounting and paysheet services of our firm.Fixed and unsettled Expensed The various fixed and changeable expenses were determined by taking actual numbers from restaurant.B. Important assumptionWe assume a strong economy, without a major recession.We assume, of course, that there are no unforeseen changes in consumers tastes or interests to make our concept less competitive.C. Financial forecast Because our budget is $5 millions. So we can calculate below1) Break even analysisVariable costs25% Cost of goods sold $1,250,00017% Employee payroll $ 850,0000.25% trust card charges $ 12,5000.33% marketing fees $ 16,5002% Management fees $ 100,00010% Advertising $ 500,0002% Management bonus $100,0003.03% Employee payroll taxes and benefits $151,5001.5% Paper and cleaning $ 75.00061.11% sum of money variable costs $3,055,500Annual fixed costs$170,000 Management salaries$37,000 Management payroll taxes and benefits$16,410 Group insurance$137,000 Controllable expenses minus credit card charges and paper/ cleaning$40,208 Other expenses minus marketing fees, advertising, and management fees$100,000 Depreciation$500,000 letting$1,000,618 organic fixed costsStart up asset silver required $ 200,000Long term asset $ 700,000Total asset $ 900,000Total requirements = Total variable cost + Total fixed cost + Total asset= $3,055,500 + $1,000,618 + $900,000 = $4,956,1182) Profit and LossWith an estimate of 300 customers everyday and to grow 20% each year (1.67% per month), lets say 1 customer will spend at least $40. We can see profit and red account belowFrom profit and loss table, we can see requital period = Y + A/BY= the number of age before final payback year. In the example, Y = 5 years.A= Total remaining to be paid back at the start of the payback year, to bring cumulative cash flow to 0,A = $4,956,118 ($145,747 + $427,447 + $765,487 + $1,171,135 + $1,657,913)= $788,389B= Total (net) paid back in the entire payback year. B = $2,242,046So, payback period = 5 + $788,389/$2,242,046 = 5.35 years or 5 years and 4 monthsIn conclusion, our business will take back our capital after 5 years and 4 months.Section VII exact seeks1) ChallengesBecause our business will be opened in Singapore which attracts different countries come and enjoy. Our challenges will service man y kinds people and forever and a day have to make them comfortable and enjoy themselves when they come our restaurant. Consequently, we always need to modify new ideas and try to have a good service. On the other hand, our purpose wants to make earn lots of money we need to outdo challenges to have a good business2) Risks and ContingencyPotential risks spark offContingency planFood Related LawsuitsOur restaurant can be sued after a customer becomes after eating and contracting a food borne illness.Safe handling of food is an important priority for our restaurant. pot likker LiabilityIf we serve beer, wine or other liquor.Need to bear witness quality before sale products. Be sure we are defend from lawsuits resulting from alcohol related incidents.Property RisksOperating a restaurant practically includes considerable equipment, building improvements and food stock.We need to buy insurancePriceNeed to cutting by competitorsWith Competitors, they will do anything to survive. So w e always need to control the price.Number of customerOur plan needs 300 customer/day. maybe, number of customer will not come enough.In this case, our management team will sit back to find out the reason. It could be caused by price or our marketing program was not effective, or it may be customer-service problems.Delay to complete the business planWhen we will plan, maybe time for activities will be delayedThis risk is very important. It directly affects all other progresses of the business. Production manager will be aware of this to make sure the chance of this risk equals to zero.Kitchen and galvanising fireOverloaded or malfunctioning electrical equipment is a specific risk for our restaurant.Prevention is our best insurance Be sure that we have appropriate fire suppression systems in place and maintained. Insurance companies typically require that our heat producing cooking equipment, particularly grease sources (fryers, grills, ranges), have awet chemical fire suppression system and vent stumblebum overhead.Section VIII Harvest strategy segmentMarketing strategy Advertising is still word of mouthPromotion strategy 3 different marketing tacticsWord of mouth/ in lay in marketing.Local Store Marketing (LSM)Local mediaPositioning Statement It will be to increase customer awareness in the surrounding community.Pricing strategy All menu items are moderately priced.Sales outline the sales strategy is to build and open new locations on schedule in order to increase revenue.Sales forecast opening day for our store is scheduled on 1st January, 2011.Section X References agreeFederick, Howard (2006). Entrepreneurship theory, process, and practice. Australia Michael Tully. p.p.269 276.WebsiteAnon. (2010). Is your Restaurant a safe Investment? Available http//www.quoteaustininsurance.com/pages/home/restaurant.php. Last accessed 3th May 2010.Anon. (2010). Singapore Tourism Board. Available https//app.stb.gov.sg/asp viper/index.asp. Last accessed 3th May 2010.An on. (2010). My tax portal. Available https//mytax.iras.gov.sg/ESVWeb/default.aspx. Last accessed 3th May 2010.Anon. (2010). Which is the Best Buffet in Singapore?. Available http//www.etour-singapore.com/buffet-in-singapore.html. Last accessed 3th May 2010.