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Business Plan on a Restaurant

Realistic description of business idea and mission statement

This proposal shows a plan for starting a new business idea and the concept is to open a new restaurant in Wellington, New Zealand (NZ). The restaurant will sell high quality of Indian, Chinese and Mexican cuisines at an affordable price which will attract large customer base towards it. The name of the proposed restaurant is 'Welli All You Can Eat'. Further, the major business idea is to render quality of food and services in comfortable as well as pleasant business environment (Patel, Thomson & Wilson, 2013). It will also be easy for the customers to eat these three types of cuisines at a particular price. There will also exist different varieties of dishes in cuisines so mentioned above which will surely attract a large customer base towards it. With this, cited restaurant will be able to get the competitive advantage over the competitors who are working in the same industry.

The business idea of opening a restaurant is a good point because the local citizens were in the need for the same where they can get different types of cuisines at a single point. Providing various varieties in different cuisines will automatically attract the customers to enjoy the meal for once. Further, firm will effectively focus on making a loyal base for customers from the starting time period only. With this, there will ibe increase in organisation revenue as well as productivity. Owner of the restaurant has to develop effective marketing mix for different dishes rendered to clients. This will show the effectiveness as how their product of different cuisines is developed (Altinay, Paraskevas & Jang, 2015).

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'Welli All You Can Eat' restaurant business idea is certainly a unique one where different cuisines namely Indian, Chinese as well as Mexican will be served to the customers. These cuisines will comprise of different types of dishes which will satisfy needs and demands of customers in a clear and effective manner. Further, the meal to the customers will be served in the buffet style. The employees who will be recruited will be multi-skilled and they will work with best of their dedication to meet their own and organisational goals and objectives.

Mission statement of organisation

Mission statement usually motivates the organisation to give their best in the accomplishing their goals and objectives. . Accomplishing the same within the set time frame boosts the company’s morale and employees tends to work with best of their dedication to achieve firm's objectives (Bilton & Cummings, 2010). The mission of 'Welli All You Can Eat' is to provide different types of food, drinks (both alcoholic and non-alcoholic) to the customers. Moreover, mission for the venture is also to satisfy expectations of guests which usually they expect from a hospitality firm. In New Zealand, travellers come from different locations from whole around the globe and it is essential for the firm to render best quality of food as per their taste. With this, they will be able to enhance their revenue as well as goodwill in coming time period.

The food and drinks which will be served should meet the highest standard of superiority as well as freshness. The mission is also linked with providing customers high quality of services in form of warmth, civility, professionalism, etc. Employee’s morale also need to be boosted by giving them friendly, cooperative as well as rewarding environment. This will motivate worker to work with dedication to meet their own as well as organisational goals (Portales, 2015). Further, mission is to understand the employees request so that they can stay for long time period in the organisation. Further, the mission of the cited restaurant also emphasize on contributing their best for the society so that their exist growth and development of the nation.

Vision statement of organisation

The vision statement of 'Welli All You Can Eat' is stated below:

“Restaurant planning is to become the first choice of customers for enjoying different varieties of food in Wellington where they can get all types of food and drinks at a single place”.

Their vision is to expand their chain with the success of current restaurant as with this the organisation will be able to satisfy various needs of customers. This will lead into increase in firm's revenue as well as profitability.

Innovative and unique selling points

The innovation which owner is coming up with is the opening up of a restaurant in the Wellington city of New Zealand. Restaurant firm will be serving various dishes of three different cuisines i.e. Indian, Chinese as well as Mexican. This will give customers broad choice to select their meal and have food. Further, these all dishes will be available to customers with best price and excellent quality (Cummings & et.al., 2013). No doubt that with the taste only they will become the loyal customer of the cited business venture. Further, all the mentioned cuisines will be given to the customers under one roof. However, the concept of 'Welli All You Can Eat' is something new as the cost of meal for lunch is at relative low prices but there exist relative high prices for dinner. It is usually because the dishes in dinner is more.

The unique selling point is that live cooking will be provided and customers will be able to see that how food is prepared and can note down the hygienic factor which chef and cooks usually consider at time of cooking. The owner of restaurant will also focus on increasing family gatherings, corporate event meetings, etc. It will be necessary for the owner to make image of new restaurant in the eyes of customers and for that various promotional techniques will need to be taken into consideration (Poulston & Yiu, 2011). Moreover, one more uniqueness which firm has that there do not exist any this type of restaurant in Wellington. This is a brand new concept where all types of dishes are given to the customers at a single place. However, there are many restaurants within the Wellington which is specialised in offering only one cuisine to the customers and these might be only Indian, Chinese or Mexican, etc. There is not a single restaurant present which offers all mentioned three cuisines under a single roof.

Key transactional relationship, partners and stakeholders

It is necessary for the owner of mentioned restaurant to make effective relationship with different partners as well as stakeholders. Relationship can be in any form and with this, there will be increase in brand image and goodwill for the enterprise. It is because the stakeholders emphasise on giving their best contribution in growth and development of enterprise (Innes & et.al., 2010). Transactional relationship for the owner will play an important role as with this, they will be able to manage and make effective contact with the key stakeholders which will contribute their best in excelling the performance of business venture. For opening of new restaurant, the major requirement is the fund and this can be managed by taking help from various parties.

Mentioned restaurant partner will have stakeholders in different forms and they are employees, suppliers, creditors, customers, government, etc. Manager of the cited venture has to make effective relationship with all parties so that they can stabilise their operations and get competitive advantage over their rival competitors. Relationship with employees will play an important role as they are real asset and firm has to satisfy their needs and demands in an effective manner Wang, Chen & Chen, 2012). Their better performance will lead into good productivity of venture. Owner has to frame policies in such a manner so that the morale of the employees get boosted and they work with better dedication to achieve their own and organisational goals.

Role of suppliers will also play effective role and firm has to identify better suppliers so that they can send quality of raw materials to the organisation. With best quality material, there would bet better quality in food which will maximise the customers’ expectations from the mentioned venture. Firm has to make effective bond with suppliers as well so that at times they can provide them credit facility and no issues should be there when firm is delayed in payment (Galuscak & et.al., 2012). This thing will not hamper the organisation brand image in eyes of other parties. Firm also have to make strong bond with government so that their do not exist any sort of problem in rendering the service. Owner of cited firm should follow all the norms and acts which are prescribed in the New Zealand laws. Some of them which firm has to strictly follow are in form of Food Act 1981, Animal Products Act 1999, Agricultural Compounds and Veterinary Medicines Act 1997, Wine Act 2003, Alcohol Act 2012, etc.

PESTLE analysis of mentioned restaurant venture

Political factors: The operations of any business will be afffected by policies and rules of there government. As the new venture is going to be set up in New Zealand, risk is more because government is not stable and rules use to change there in every three year. So firm has to be aware of these changes and make plans beforehand. Beside this, company needs to invest a substantial amount for start-up as the rate of labour force is high as well. Moreover the lending rate here is also more which will decrease the revenue of venture, as the company will have more tax burden (Eweje & Perry, 2011).

Economic Factors: The economic condition of Newzealand is quite sound as the inflation rate of the country is very low compared to other countries. Country focuses more on tourism industry as it has small manufacturing sectors. This will be a positive point for the firm, because it is going to serve local and foreign customers as well. The purchasing power of the country is good which helps to circulate money all over the country. So the huge investment done by company will be returned with profits over the time by selling its services.

Social Factors: Social and cultural fatcors of the country are favourable for the company. The literacy rate is almost 100% which shows that living standard of people is high, and is beneficial in the sense of having more local customers (Hutt, 2010). Further the government has more focus on tourism industry providing various facilities to tourists. This will obviously increase international customers for restaurant. But the firm has to take care of the preferences of the local and foreign customers needs as they have the different perceptions of taste. Additionally, the moratality rate of the country is low so after retirement people get benefits of pension and gratuity without doing any work. This rule is not beneficial for the organisation and can affect profits.

Technological Factors: Developed technology will always be beneficial for any venture though it needs some large investments. Company has to update its technological facilities to high level so that it can meet the international standard and meet the expectations of customers. Updated technologies will help the restaurant also as keeping track of significant informations will be easier (Freeman, 2010).

Legal factors: Legal factors of the country are very favourable for starting a new business as it provides trade freedom which helps the venture in expanding its operations easily. There are less legal formalities in comparison to other countries and provides a wide scope for expansion of comapny. The fact that has to be considered carefully is unstability of government which results in frequent changes in rules in short time. So manager has to plan strategies infront of changes by making some backup options in advance . Further, manager will have to take care of some basic laws and acts like fair trade practices, employment and labour laws etc. for smooth running of business.

Environmental Factors: The population of country is well educated so they are aware of environmental issues. Country has well developed systems for managing pollution free environment and to deal with probable dangers. The location of restaurant will have great effect on its functioning and investment to manage the pollution free environment. If venture is located nearby any beach, park ar any other similar location then it has to take care of cleanliness of surroundings. If it is located in centre of city then it has to face issues of polluting environment due to release of smoke while cooking or by any other ways Gikonyo, Berndt & Wadawi, 2014). Therefore the operational cost of restaurant may increase in such case.

Identify and describe customers, partners and stakeholders

'Welli All You Can Eat' restaurant will have their stakeholders in different form and they will give their best performance so that the firm can achieve their goals and objectives in clear and specific manner. Mentioned firm will focus on satisfying the needs and demands of various stakeholders so that they can contribute their best. This will give mentioned restaurant firm a competitive edge over their rivals. The stakeholders for the cited venture will be in form of employees, suppliers, customers, creditors, government, etc. Moreover, at the time of opening up of restaurant, if the fund is opted from any personal source i.e. friends or family members, then their contribution will also exist at the time of making effective plans and policies for the enterprise (Maumbe, 2012).

Role of suppliers will be important as they will render the quality of raw material to the hospitality firm. Their performance will play an important role as they ave responsibility of sending quality stuff to the venture. If the raw material would be not of adequate quality then the firm will not be able to give their best and this will hinder their performance badly. Suppliers also need to be efficient at the time of dealing and their price for different raw material should be less as firm will purchase the same in stock. Freshness and hygiene will play an important role herein (Relationship Marketing vs. Transactional Marketing, 2016.

Employees for the cited firm will be in two categories. One is management and the other is back working employees who will be in form of chef's, cook's, etc. Their role in the growth and development of venture will be effective as they have responsibility of preparing best of the food so that the needs and demands of customers get fulfilled. Moreover, management will also emphasise on taking effective feedback from employees so that they can make necessary changes in their food quality as well as in other important elements (Park & Allen, 2013). Moreover, for all the posts, efficient and talented workforce need to be recruited so that they can work with best of their dedication to meet their own and organisational goals and objectives.

Analysis of customers needs, want, preferences and characteristics

Customers needs never get satisfied and they are in need of new things from time to time. Further, the expectations of one individual differ from the another and thus it is important for the owner of cited restaurant firm to give different varieties in cuisines which maximise their demands. Currently, restaurant firm will render various dishes in cuisines like Indian, Chinese and Mexican. Customers will have best of their dining experience with their loved one's as well as family members.

Owner of cited restaurant before launching different meal should take prior concern of customers so that he must come to know as what customers are in need of. There are various restaurants in Wellington who servers these cuisines but developing a unique dish and taking all the three cuisines to a single platform will make functioning of organisation smooth (Hanaysha, 2016). The owner of 'Welli All You Can Eat' knows that they are working in dynamic environment and thus, it is necessary for them to take necessary feedback from employees before implementing their own plan. Relative concern from the customers will help them to grow in effective manner. This will enhance organisation performance upto quite an extent.

Moreover, it is necessary for the manager to decide a target market whom they will initially focus on. Attracting them towards the dishes will make them loyal customers towards the firm. However, the perception of one individual usually differ with the another one and therefore, it is utmost necessary for the owner to make a right tactic so that a large base of customer gets ready to taste something new which is in form of different cuisines.

Sources of finance to commence the business

Finance is most crucial and essential element which is required for starting the venture successfully. The rationale behind this, there are several expenses which business unit has to incur at initial level such as licensing, marketing and other expenses etc (Pearce, 2015). In this regard, business entity can execute the plan if they have enough amount of financial resources. Hence, there are several internal and external sources of finance which are available to the business entity of 'Welli All You Can Eat'. It includes personal savings, sale of property, bank loan, leasing, factoring etc. In order to commence the business of restaurant business entity will undertake both internal and external sources of finance are as follows:

Personal savings: For commencing the business sole trader will use the personal saving of $50000. This internal source of finance offers high level of financial benefits to the business entity. Moreover, in this, business entity is not obliged to make any payment to others. In this way, such source offers freedom to the business entity from the financial burden to the large extent. Now, each person lays emphasis on saving some part of money with the meet the contingent situations. Along with this, for fulfilling the dreams individual focuses on saving aspect. Thus, by using the personal savings business entity can start the restaurant within the expected time frame.

Bank loan: Entrepreneur will take financial assistance from Kiwi to start the new venture in the best possible way. It is one of the most effectual sources of finance which offer high level of tax benefits to the firm. In this way, such sources of finance enhances the profit margin of firm to the large extent (Belich, 2015). Further, in bank loan business entity repays the amount of loan in the fixed monthly instalments. Hence, by considering all such aspect sole trader has taken decision in relation to raise amount of NZ$100000 from Kiwi @ 3.8%. In the present time government supports entrepreneurs who is planning to start their own business by offering loan at concessional rates. Along with this, banks are always ready to give loan on the basis of collaterals which is highly secured as compared to other means. In this, by raising capital from Kiwi sole trader of 'Welli All You Can Eat' can realize the dreams to the large extent. However, in loan, business entity has financial burden in relation to making repayment of loan along with the interest.

Purchasing, stock control and staff issues

Purchasing: In order to operate restaurant business entity requires several raw material such as grains, wheat, vegetables etc. Hence, for this purpose, entrepreneur will make contract with the supermarket such as Big fresh. Moreover, when business entity purchases product from the specific retail store then they discount ((Pearce, 2015)). In this way, such strategy will help sole trader in getting high economies of scale. Thus, by making contract with the supplier business entity would become able to control the cost to the significant level. This in turn helps entrepreneur in enhancing the customer base and maintaining the profit margin to the large extent. The reason behind this customers are highly price conscious in nature and prefer to go to the restaurant which offers high quality product and services at affordable prices. In this regard, by controlling the cost level business entity would become able to serve the customers more effectively.

Stock control: With the motive to control the stock level owner of 'Welli All You Can Eat' will make order for the quantity which is actually required. Moreover, at initial level business entity does not have idea about the order which they need to place (Selvaraj, 2015). Hence, after experiencing some months of performing the activities entrepreneur would become able to make estimation of the inventory which they need to order and maintain within the business unit. Along with this, EOQ method will also be used by the entrepreneur to maintain the proper inventory level. It presents the level to which they need to maintain stock for the smooth functioning of the business activities and functions. Usually, in restaurant customers feel dissatisfied when they do not get the desired level of services and dishes. Thus, sole trader will undertake inventory control technique for ensuring effective management of stock level.

Staff issues: For managing the issues which are facing by the staff business entity will hire the one personnel. Moreover, in restaurant there are several factors which have high level of impact on customer satisfaction (Amsler and Shore, 2015). It includes food services offered, meet & greet, interior, exterior etc. In this, management personnel will provide guidance to the service personnel about the manner in which they need to serve the customers. Moreover, in the hospitality sector, employees play a vital role in evolving high level of satisfaction in the mind of customers. Thus, by resolving the issues and organizing training session sole trader would become able to raise the skills and qualities of personnel.

Projected income statement

Income statement: It presents the revenue which will be generated by the business entity over the expenses. Thus, income statement provides deeper insight to the sole trader about the profit which will be generated by them over the years. Along with this, it also presents the expenses which will be incurred by the business entity to carry out the business operations and functions in a smooth manner (Laswad and Redmayne, 2015). Income statement provides high level of assistance to the entrepreneur in evaluating the feasibility aspect of project by indicating the profit level.

Cash flow statement: This statement renders information about the inflow and outflow of the activities which will be performed by the firm during the year. In this, positive inflow entails that plan is feasible from the financial perspective (Clapham, 2015). Besides this, cash inflow clearly presents the revenue or income will be generated by the sole trader from varied business activities. On the other side, outflow provides information about the expenses will be incurred by the business entity during the year.


This business plan and its monetary aspects are based on the following assumptions. All the below factors are undertaken by making evaluation of the aspects, trends and laws of New Zealand.

Restaurant will offer services to the customers 365 days in a year. Moreover, on weekend, festivals and other special occasions people prefer to visit the restaurant. Along with this, tourism is another main factors due to which owner of 'Welli All You Can Eat' has made decision in relation to opening of restaurant in the whole year.

Sales revenue of 'Welli All You Can Eat' will incline by 20% annually. The rationale behind this, in New Zealand tourism is increased with the very pace. Travel and tourism sector of New Zealand makes 5% contribution in the GDP of respective country. Hence, assumption undertaken by the sole trader are highly realistic in nature.

Salaries of the employees will be increased by 10% in the upcoming year. According to the laws it is the accountability of the employer to raise the salary of personnel. Hence, by considering such aspect and for evolving high level of satisfaction among the employees business entity has taken decision in relation to offering 10% increment to the employees. In the year 2 entrepreneur will hire 1 additional service personnel to deliver high quality services to the customers.

Straight line depreciation policy will be employed by the sole trader of restaurant. On the basis of this aspect 5% depreciation will be charged on fixed assets such as furnitures and fixtures as well as equipment.

In New Zealand, rate of insurance is 2% which will paid by the business entity on fixed assets. The reason behind this, insurance is highly required for coping up with the contingent business situation.

In the first year, operating expenses will be $800. besides this, such amount will be increased by 10% in the near future.

For market research, budget of $2500 has been setting down by the entrepreneur. The rationale behind this, market research is highly required for evaluating the growth and potential aspect. Segmentation, targeting and positioning are the main approaches which are highly relied on the outcome of research activity. Along with this, for evaluating the competitors product and strategy it is highly required for conducting in-depth analysis. In this way, activity of market research is highly required for making competent and strategic policy framework.

Along with this, to get the license in relation to opening of restaurant in New Zealand business entity will incur NZ$6000.

In order to open the restaurant business entity has taken decision in relation to taking area on rent. In the next year rent will be increased by 7% on an annual basis.

Administration expenditure will be 3% on the sales revenue. The reason behind this, interior, exterior and other arrangements have high level of impact on the decision making and satisfaction level of the customers. In the next year business entity will spend NZ$ 9000 to manage all the business activities and functions in the best possible manner.

Marketing expenses will account for the 2% of sales revenue. The reason behind this at initial level business entity has to make high level of expenses in promoting the dinning services to the large extent.

Amount of loan will be repaid by the banking institution in the three equal annual instalments. Further, Kiwi will charge 3.8% interest on the amount of loan taken.

No tax will be paid by the business entity on the profit earned by them. Moreover, according to the tax laws and legislation of Nee Zealand tax liabilities will start from the income which account for the range of NZ$14000. Hence, it can be said that income which will be earned by 'Welli All You Can Eat' in the upcoming two years do not come under the income tax categories.

Identification of risk and strategies to manage these

There are several risks which business entity will face while carry out the business operations and functions.

Changing customer needs and preferences: In the present time, customer needs and preferences are getting changed with the very high rate. In this, if business unit fails to serve food according to the customer's preferences then it may result into the loss of productivity and profitability. Hence, by taking feedback from the customers business entity can provide customers with effectual ambiance, food and other services.

Economic condition: Employment or income level is one of the largest factors which have high level of impact on the decision making aspect of customers. The reason behind this, customers spend on luxury only when they have high level of disposable income. In this, by setting the affordable prices of the services offered business entity can manage the changing situations more effectively.

Legal policies: Changes which take place in the legal framework of New Zealand also have influence on the activities of restaurant. Moreover, licensing, employment hours, wage etc. are highly related with the legislation prevailed in the country. In this, by framing competent and strategic framework owner of the restaurant can cope up with the changing business aspect more efficiently.

Strengths and Weakness of competitors

Restaurant industry in New Zealand is quite strong because it is one of the major country for tourist attractions. There are various restaurants in Wellington which emphasise on giving quality of food to the customers so that they have best of their dining experience (DedeoÄŸlu & Demirer, 2015). Some of the most popular restaurant in Wellington are Tandoori Pakwan, Charley Noble Eatery & Bar,Higher Taste, etc. On witnessing, it is found that the restaurants which are prevailing in Wellington are largely Indian because a large number of population stays of that only. From the three restaurants mentioned above, two of them are is Indian restaurant which serves popular typical Indian food. Some components here which has to be taken into consideration are:

Market share: Market share of the restaurant firm is not relatively high for one particular because there is stiff competition. No restaurant is getting a competitive edge because there exist many rivals in the same field. Further, the three restaurants which has been distinguished above sell only one particular cuisine and thus it is difficult for them to stay in the competitive market.

Profits and revenue: Profits and revenue is one of the important aspect as the restaurant firms whole around the globe are striving for that only. Owner of the firm knows that they are working in dynamic environment and thus it is necessary for them to identify the expectations of customers and bring all those dishes accordingly. Further, the profits earned by these firms are reasonable because after generating the profits, there are many things which needs to be deducted as well in form of expenses. Employees salary, electricity, purchase of raw material, etc. are to be considered by the owner.

Considering these elements, it is found that at the initial phase, firm might face difficulty in running down their operations. However, the concept of the cited firm is relatively new as they are serving three different types of cuisines to maximise the needs and demands of the customers. Owner of the cited firm is bounded to make plans and policies by considering of their competitors so that they can give them stiff competition (Osterwalder & et.al., (2014).

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Marketing strategies developed on these findings and industry wide information

For surviving in competitive market, every firm has to analyse their competencies effectively and efficiently. SWOT analysis can provide opportunity to revise or strengthen their performance for coming time period. This process will also help firm in getting an competitive advantage over the rival competitors who are working in same

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