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Restaurant Business Plan
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CONTENTS
45671011131416
202125262731353840434445
Executive Summary
Our Group
Strenghs, Weaknesses, Opportunitiesand Threats
Customer Relationship Management
Brand Positioning
Marketing Communications PlanIMC Plan, Media Calendar
Operation PlanFacilities, Hours of Operation, Employee Training & Education, Food Production, System, Organizing & Staffing, Cost, Floor Plan
Organization Structure
Financial BudgetTangible Assets, Breakeven Analysis, Profit & Loss, Breakeven Point, Return of Investment
Milestones
Contingency Plan
Appendices
Why Fruits in Food?
Product & Services
Market Analysis
Competitors Analysis
Market Research
Organization BackgroundVision, Mission, Values, Company / Working Culture, Business Model
Marketing StrategyTAPP, UVP, Differentiation, Product, Pricing, Promotion, Place
Market PositioningMarket Positioning Statement, Marlet Positioning Map
Industry AnalysisPorter’s 5 Forces, PEST Analysis
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Melts will be a restaurant for health conscious people serving delicious western foods within an affordable price range. This restaurant will be located in Bugis, the central area of Singapore. Many educational institutes like Singapore Management University, Nanyang Academy of Fine Arts , Lasalle are located in this area. The main targeted customers are the students from these institutes.
Melts will offer a wide range of western foods with a unique combination of fresh fruits for flavorings. The speciality of the food is that fruits are compulsory ingredients in every dish and will be used for extra flavorings and not just for garnishing. Melts claims to offer 100% MSG free food to its customers. In addition, Melts also provides a friendly customer service experience that customer will surely cherish.
EXECUTIVESUMMARY
OUR GROUP
Kresna Florenzo Michael Tina
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Why fruits in food?We eat few times each day. Sometimes we eat when we are hungry and sometimes just because we feel like it! There are so many types of food we can eat and we have to make the right choices to stay well nourished. According to health promotion board, Singaporeans are recommended to eat 2 servings of fruits and vegetables daily. There is no food that can provide all the nutrients for body needs. Hence one needs to eat a wide variety of food, all in moderation and in the right balance. Vegetables are usually eaten as part of the meal in Singapore culture whereas people often have to make a conscious effort to remember to include fruit in their meal. Many people do not have the habit of including a fruit after a meal. The habitual food choices can either promote health or increase the risk for developing chronic lifestyle related diseases such as diabetes, hypertension and high blood cholesterol. Researches have shown that regular intake of fruits and vegetables keep the body healthy and reduce the chances of lifestyle diseases. Although they do not look elegant on the plates, nevertheless their health benefits can’t be ignored.
Melts offers an easier way to have a balance food without compromising on the test. We offer a combination of food and fruits in all our dishes. In addition, our foods are also 100% MSG free; a healthier meal with juicy flavored western food. One can enjoy the fruity flavor in every kind of dish that we serve. Now, why Melts choose fruits for flavoring? Fruits contain a variety flavors such as sweet, sour and bitter. In addition to flavor, they also add color and textures to food. Fruits are also low in fat, calories and cholesterol-free. We believe that by using fruits, we can create fabulous cuisines. Not only the taste but also the nutrients inside the fruit will be good for our customers. It will be a healthy alternative to many who can’t give attention to their diet and health. We believe we can take care of their health and their taste buds equally alike.
VisionRevolutionize how people taste food
MissionTo give 99% customer satisfaction, encouraging customers to cut down on their MSG intake and to educate people that food taste can be enhanced by adding fruits
ValuesThe CustomersWe treat our customer as the top priority and ensuring to serve the best food to every customer
The EmployessWe believe employees are our best assets and each have their own strength so everyone has to respect each other and work as a team.
The PartnersWe treat our partners as friend in doing all the business by giving them the fairest business deal.
ORGANIZATION BACKGROUND
We are starting our restaurant with a brand new concept of a unique blend of western foods with fresh flavor of fruits. Its basically a casual dining restaurant establishing mainly for students like university goers, keeping in mind the affordability. Melts will offer wide range of western foods uniquely blend with fresh fruits, served smoky and fast.
98
Company / Working Culture
We love our business. We do everyting with love. Starting from preparing the food with love and until serving the food to our beloved customer. Everyone in our restaurant love their job and treating each other with love as well.
10 ways to love our business :1. Love what we are doing2. Love our foods3. Love our employees4. Love our partners5. Love our competitors6. Love our vision7. Love our brand8. Love our teamwork9. Love our restaurant10. Love our customer
We believe the chances of being successful are far greater if we love what we do.
Our activity culture :We have monthly dinner eventWe celebrate every staff birthdayWe celebrate every festives season by dressing up and restaurant decoration
Food and Fruit Supplier
Customer
RentSalary
Raw Material (Stock)Utilites
etc.
Customer Management
MeltsRestaurant
RetailRevenue
Franchise Revenue (est.
2015)
Revenue
Partn
ers
Co
st
Business ModelFood and Beverage industry is enduring and continues to bring new colors and flavors. In this vast industry, we put ourselves in the “table-dining” market and categorized as casual dining, which means we are a normal restaurant and can be enjoyed by everyone.
Although the competitors in this industry are numerous, we do have unique characteristics that almost none of them offers anything like us. Our closest competitors are Han’s and Fish & Co., which is the choice of young people to eat and relax. Their restaurants are located near our outlet as well. However we believe that we will be able to attract the health conscious students and those who would like to try out something different.
The concept that we offer to prospective customers is a unique combination of food with fruit devoid of MSG. As it is located at Bugis Junction, it is easier for our target market, the students aged between 17-28 years old, to enjoy our meal in between their shopping. Moreover, we will give special discounts to them to encourage them to come often.
We cooperate with local suppliers to provide fresh meat, vegetableand fruit daily in order to serve perfect food to customers.
The cost required in running this business quite big, the rentalcost per month and renovation inncluding daily stocks of ingredients.
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Our restaurant is assigned a single word “Melts” to refreshment its themes. It is a western name and thus shows that the restaurant primarily serves western food. Although this is a western restaurant, the similarity ends here as we serve dishes, which will not be found in other western restaurants. Using of fruits in our dishes make them healthier and taste different from the rest.
We have a strong emphasis on the taste of the food and we believe that this is the strongest differentiation compared to other competitors. One of our key innovations is the fruit-melt sauce. The sauce can be made up of one fruit or combination of many fruits. With this special recipe MSG can be completely avoided. Our guests not only find the dishes mouth-watering, but they will find it healthier than the food served by our competitors. We believe that the health conscious public will get attracted to our food sooner or later.
Our signature dish is the Honey orange beefsteak. We strive to give our customers the unique yet tasty combination of fruits that suitable to be eaten with the steak and other original western dishes in our restaurant.
Daily fresh ingredients is a must to ensure the quality of food is above our restaurant standard. We hire trained chefs to give the best taste of the food and to avoid unnecessary faults such as burnt, half-done and improper food portion.
Threat of New Entrants Threat of new entrants into the F&B market within Singapore is high as there are few proprietary product differences and the cost to enter the market is relatively low. It is assumed that skilled employees would be bit difficult to get. Numerous strong brand identities restaurants do make it more difficult to enter and succeed within the marketplace, however, We have a specialty that is different from all the restaurants, which is free of MSG, because we use the fruits as flavorings
Bargaining Power of BuyersSingapore consumers is spolit for choice ,they can choose what type of food restaurant they want to go to, from the traditional Chinese food, Malay, Indian, Peranakan, Japanese, Korean and many more. However, location and type of food may reduce this bargaining power. Restaurants most likely would not doing well in remote areas. Hence, our restaurant will be located in crowded area so it is easier to access. As for the food, our restaurant offers MSG-free foods and nowadays, there are a lot of people who start to avoid such unhealthy foods, therefore we have some possibilities to attract this group of people.
Threat of SubstitutesInstead of dining in a restaurant, customers can also choose to dine at home as its more cheaper to cook by themself but the modern lifestyle makes people have less time,resources, and ability to cook for themselves. Bringing food for lunch to school or the workplace is not common in Singapore; hence the chance of eating out is high. At least one meal of a day is eaten outside.
Bargaining Power of SuppliersThere are many suppliers in Singapore. That makes the bargaining power of the suppliers low. Large number of supplier makes none of them can set a higher price. Thus, this large number of suppliers help us to get the supply for our restaurant easier.
Determinants of Rivalry among Existing Competitors The F&B industry within Singapore is growing rapidly, allowing room for competition. The competition among the restaurants in SIngapore are strong. The more specialized the restaurant, the less the threat of competition. While our restaurant specialized on flavoring by using fruits.
The industy of our business is F&B. The F&B industry is growing at an exponential rate. The F&B sector contributed S$1.91 billion or 0.74% to Singapore’s Gross Domestic Product (GDP) in 2008. There are 5,939 establishments in the F&B sector that generate some S$5.56 billion dollars for the economy. In total, they hire 82,551 of Singapore’s workforce. The cosmopolitan environment has also attracted many foreign culinary talents to set up establishments, bringing with them new and interesting F&B concepts. This has contributed to the quality lifestyle that Singapore offers to both locals and visitors also bringing strong competition to the Food and Beverage industry in Singapore. These are research on Porter’s 5 Forces and PEST analysis.
Porter’s 5 Forces
PRODUCTS & SERVICES
Our primary target audience is university or college student. To serve them well, we set a nice colorful ambience yet not too far to avoid kiddy ambience. The main theme of our restaurant is ‘Casual’. We hope our restaurant can be a comfortable and relaxing hang-out place, where students can spend some of their time for having lunch or dinner while reducing their tiredness from studying for several hours at school or institutes.
As we realized that our customer might be tired, we strive to give a good service by having polite waiter/waitress and hygienic dining place. Nevertheless, a quick service is also what we want to give. However, it is not the top priority. Our top priority is to serve customer with smile and politeness without exaggerating it, also to avoid false order and other mistakes that may occur during customer serving. With this quality, we believe our restaurant would grow as a place where people can enjoy every aspect in our dining place.
INDUSTRYANALYSIS
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PoliticSingapore is one of least corrupt countries in the world besides Denmark and New Zealand. Since the day Singapore officially gaining sovereignty on 9 August 1965, its politics has been dominated by the People’s Action Party (PAP). Under the leadership of the PAP, Singapore possesses a distinct political culture such as authoritarian, pragmatic, rational and legalistic. Singapore’s power structure is highly centralized, characterized by a top-down style.
Singapore’s economic growth and political stability were maintained by the paternal guidance of the PAP. Thus, instead of politicians, Singapore is administered by bureaucrats in a meritocracy where power is gained through skill, performance, and loyalty to the nation and its policies.
There is a dominance of government-controlled companies in the local economy. In spite of its powerful position, the Singapore government has maintained a clean and corruption-free image. Moreover, rifts within the leadership in Singapore are rare. The mode of decision making is by consensus and the style of leadership is collective.
EconomySingapore has high GDP in 2009 for $182.23 billion while annual real growth rate was 1.8% in 2008 and -1.3% in 2009. Gross Domestic Product per capita was $36.537 as achieved in 2009. Singapore has no natural resources at all. On the other side, 0,5% of GDP was under agriculture products such as poultry, orchids, vegetables, fruits, and ornamental fish. As for manufacture, this kind of electronic products and its components, petroleum, machinery and metal, chemical and pharmaceutical, etc. took 19.5% of real GDP.
There are some major markets such as Malaysia, Indonesia, Hong Kong, Germany, France, China, United States, and Japan. Singapore imported aircraft, crude oil and petroleum, electronic components, radio and television receivers, motor vehicles, chemicals, food/beverages, irons, and electricity generators worth $245 billion. There are some major suppliers as well such as Germany/France, Malaysia, United States, China and Japan.
SocialAs one of the world’s most densely populated countries, Singapore’s annual population growth rate for 2010 was 1.8%, includes resident foreigners. While having varied language, culture, and religious heritage, Singapore has English as national language and also Chinese, Malay, Tamil as official language. English is the language of administration and also is widely used in the professions, businesses, and schools.
English was mandated by the government as the primary language used at all levels of the school systems. Enrollment at public universities of both full-time and part-time was 72,710 and 80,635 for polytechnics in 2009. While 24,846 students was owned by The Institute of Technical Education for basic technical and commerce skills. Overall, country’s literacy rate is 96.3%.
TechnologyAlmost all of Singaporean possesses mobile phone as a handy communication device. Though one should be enough, it appears that some group of people like businessman or business woman owns 2 mobile phones for their purposes.
The world technology has spread around Singapore and it is unlimited as long as one can buy it. More hardware such as personal computers and laptops is no more a limitation to working people only. Students are now own their laptops; carry it everywhere they want to go. Moreover, internet device also available on a small USB drive called broadband, which lets all people surf internet wherever they are. This technology of communication in Singapore is not something at left behind than other developing and hi-technology countries.
As the conclusion, Singapore has a high rate of income and growth rate per year. On the other side, Singapore is one of least corrupt countries in the world. Many cultures and races such as Chinese, Malay, and Indian, mixed into one society while having English as the national language. Speaking of people of Singapore, Singaporeans are up-to-date in the growing technology. With this analytical statement as our base, we believe that we can open, succeed, and grow our food and beverages business in Singapore.
The 2,106 restaurants in Singapore represent 35.4% of all F&B establishments and a total number of 34,200 workers are hired. Restaurants made the largest contribution to the sector’s value added. Singapore F&B scene has been transforming itself over the years.
The current trend of F&B in Singapore mostly are developing in Tanglin Village, Rochester Park and Sunset Way. These places become new destinations for dining and entertainment in Singapore. Home to upmarket and trendy restaurants, wine bars, clubs, pubs, gourmet shops and other F&B establishments. These new zones are also popular for F&B businesses to develop and launching new concepts in Singapore.
F&B products have short lifespan and the strong competition has made it an imperative for businesses to innovate quickly to cater to changing consumer tastes. Chocolate bars, beer and mussels bistros, hand-pulled noodle restaurants, molecular gastronomy and bistro-bars are just some of the new additions to the food scene.
In recent years, many restaurants emphasise on growing their customer service. Businesses are investing in training and development of their staff, setting service standards and auditing service levels to differentiate themselves from competitors just to keep customers coming back for more. Service quality is proven important for a restaurant to success.
Singapore grown F&B establishments have been more aggressive on exporting their brands abroad through franchising and joint ventures, and even setting up wholly owned outlets in countries like China, Hong Kong, Indonesia, Malaysia, Thailand, Vietnam and even Dubai. Their success is already paving the way for other F&B businesses to make their mark abroad.
We estimated some of the barriers that we will face to enter this market. Customer may need some time to accept our food because it is a new food development. However, we believe that our food won’t be rejected by the market. According to our market research many youngsters like to try new kind of food and there are getting more and more people are aware of the ill-effects of MSG. Getting employees for F&B business is the another barrier that we will face because working in restaurant is considered a tough working job in Singapore.
PEST AnalysisMARKET
ANALYSIS
1514Han’sOpened in 1980 Arcade at Collyer Quay, the Hainanese family-owned business has grown from a small food counter to a profitable 20-outlet chain today. Han’s business is divided into two category, Han’s restaurant and Han’s Cafe 7 Bakery.
Han’s restaurant sells mixture of western and local asian food. The layout of the restaurant is designed like a cafe. Outdoor seats also available in some outlets.
Fish & Co.Fish & Co. began its operation in 1998. It was founded by two partners- Ricky Chew and Lamert Yeo. Fish & Co. is about fish, fish and more fish. They specialize in fresh delicious fish dishes and also dish out delectable seafood goodies like prawns, mussels and oysters.
Fish & Co. developed on two new concept other than their restaurant which is “Fish & Co. Express” and “[F.I.S.H]”. Fish & Co. Express offers seafood fast food and burgers while [F.I.S.H] offers all-you-can-eat salad bar.
The unique way of serving food in a pan was an inspiration drawn from the simple practices of South Africa fisherman; who caught seafood fresh from the seas and cooked them immediately in the pan.
Billy BombersRestaurant with the feel of the 40s-style California diner deco.Serving old American fare such as gourmet burgers with chunky American Fries which are main staple of that era. There is also an Italian corner where they serve diners a wide range of Pasta. Besides the A-la carte menu, they also have daily set meals, Chef’s specials, Happy Hour & Tea time promotions. Billy Bombers is famous for the big portion of serving.
Despite of the strong brand or long history that our competitors have, we have our own way to compete with them. We are using fruits as the replacement of MSG and giving the best warm and friendly service to every customer.
The analysis of competitors is done according to the proposed location. There are lot of restaurants in Bugis area that sell food at similar price. From the products and services that they provide, we choosed three of them as our competitors which is Han’s , Fish & Co. , and Billy Bombers.
Competitors Table Analysis
No Product Strategy Han’s Fish & Co. Billy Bombers
1. Features Mixture of western and local food Fish & Chips“Seafood in a pan” concept
HamburgerAmerican Dining
2. Benefits Comfortable cafe layout Affordable seafood Large portion of serving
3. Package Normal servingComfortable environment
Special serving by using panEnough size of serving
Retro red and blue settingLarge portion of serving
No Pricing Strategy Han’s Fish & Co. Billy Bombers
1. Price Range S10-$15 per personMiddle slightly lower
$20-$30 per personMiddle price range
$25-$30 per personMiddle slightly higher
2. The Offerings Seasonal Promotion Meal Mint sweet freebiesLunch Promotion
Lunch Promotion
3. Customer Perception Normal quality food with value priceBad customer service
Good service and nice foodWill buy again
Satisfy with the large portion
No Place Strategy Han’s Fish & Co. Billy Bombers
1. Location National Library buildingNear Bugis MRT Station More than 20 branches located all around Singapore
Bugis JunctionNear Bugis MRT StationOther 15 branches located all around Singapore
Bugis JunctionNear MRT StationOther 6 braches in Singapore
2. How is it sold Self service Full table service Full table service
No. Promotion Strategy Han’s Fish & Co. Billy Bombers
1. Who are their customer Age range 15-40National Library goersUniversity studentWorking peopleSecondary school student
Age range 21-35Working peopleUnivesity StudentFamily
Age range 21-35Working peopleFamily
2. How they get customer ATLWord of mouth
ATLFacebookMembershipWord of mouth
ATLWord of mouth
3. Promotion mechanics Current Promotion : Seasonal Promotion on Christmas
Current Promotion :Happy Lunching Set Meal
Current Promotion :1 for 1 lunch special
COMPETITORSANALYSIS
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What is your age range ?Are you male or female ?
MaleFemale
below 1717-1920-2223-25above 25
How much is your monthly allowance ?
below $300$300-399$400-499$500-599$600 and above
What type of food do you like ?
WesternChineseJapaneseThaiOthers
How often do you go out for a meal with your friends a week ?
1-2times3-4times5-7times
How much are you willing to spend for a meal in a restaurant?
10below $$11-15$16-20above $20
Do you like to try new kinds of food ?
YesNo
Research done by quantitative method. We get positive result from 9 simple questions. All of the answers are supporting the business that we will set up. Here are the results of the research ( Proof of the survey can refer to appendices on page 81 ) :
Would you want to eat dishes cooked without MSG, but instead of using fruits for flavoring?
YesNoMaybe
Result of the survey is very satisfying and rewarding us in building this restaurant. The survey correspondents mostly are accordance with our target market age, with age from 17-28 years old. Their monthly allowance are enough for them to have a meal in a restaurant, with the result of 23% below $300 and 23% above $600 per month.
Western and Japanese food are the most popular cuisines among all, where each topping the survey with 31% of the votes. With this result, we believe that the popularity of western food will boost our business to success.
Almost all of the response show that they at least eat a meal outside once every week. This results are quite positive for our survey.
Half of them agreed to pay $ 11 - $ 15 for a meal in a restaurant, where this price range is within our restaurant price range also. 95% of them willing to try new foods and 63% of the correspondents are aware of the ill-effects of MS. Again, the results are beneficial for our restaurant.
Eventually, 67% of the result show that they would like to try the food without MSG and cooked by using fruits as the flavoring, which can be interpreted, more than 20 people can be our regular customers and more than 5 people will try the food at our restaurant.
Bad for HealthGood TasteJust FineNevermindOthersSkip
What do you think of the usage of MSG in food ?
MARKETRESEARCH
1918
Bad Effect of MSG
More people are aware of the ill-effects of MSG today. Researches shown that MSG causes a range of dangerous side effects, while nowadays almost every food product in the market contains MSG inside it. MSG is used around the globe in soups and broths, sauces, gravies, and flavoring and spice blends. MSG is also present in a variety of processed foods such as canned and frozen meats, fish, poultry, vegetables, and ready-to-eat food plates, dressings, ketchup, mayonnaise, soy sauce, sausages, snacks, some processed cheeses, soup powders for instant noodles, etc. Although the harmful sill-effects, MSG has become a normal ingredients to enhance food flavor these days.
Some side effects and disorders of consuming MSG are headache, allergies,strokes, brain Tumors, high Blood Pressure, difficulty of breathing, diabetes, chest pain and many more other health problems.
Certain ways to eliminate the intake of MSG such as check a product label to avoid product with MSG in the ingredients, asking restaurants do they serve dishes that contains MSG. However these doesn’t ensure us of not consuming MSG, because some manufactures are trying to hide their usage of MSG with labeling their product “No MSG” or “Healthly Low Fat”.
This result push up the success rate for our restaurant. We offer food with 100% free of MSG. Customer will save up the trouble to check products label or asking. We assure of providing 100% free of MSG food.
Benefits of Eating Fruits
Fruits and vegetables are some of the healthiest and best tasting foods. They are low in sodium and calories, and most are fat free. Reach for blue, purple, green, white, yellow, orange, and red fruits and vegetables for your meals and snacks. They help your body get the vitamins, minerals, fiber, and other natural substances it needs to stay healthy.
In recent years, per capita consumption of vegetables has increased. This shows that more Singaporeans are beginning to adopt healthy lifestyle. Health Promotion Board recommend that, we should eat 2 servings of vegetables and 2 servings of fruit each day. Enjoying a variety of fruit and vegetable gives us unique nutritional and health benefits. Eating a diet rich in fruit and vegetable will give us lower risk of many diseases. Health Promotion Board also encourage people to include fruit and vegetable in their meal by providing several suggestion on how to sneak fruits inside meal such as vary the cooking method, adding fruit to stir fried meat dishes, steam or stew fruits to make a dessert, blend fruit in ice cream or any dessert.
Our business concept is quite similar with the suggestion on vary cooking method. This shows that our cooking method by using fruits as the flavoring is not impossible. We believe that fruits can be the replacement of MSG to enhance food flavor.
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StrengthWe show our love to our restaurant business by executing a good teamwork within our staff as well as having high knowledge of recipes and we are open-minded as we are young and passionate
Weaknesses In this new business, we aware of our limited funds and business experience deficiency
OpportunitiesWe realize that there are more people aware of ill-effects of MSG although younger generation like to spend money and experiencing new foods.
ThreatWe are aware of the increasing operating cost and the difficulties to recruit staff for our F&B business while there are a lot of competitors as well.
S W
O T
We love our business
Good team work
High knowledge of recipes
Young , passionate and open minded
Limited funds
Lack of experience
More people aware of ill-effects of MSG
Younger generation like to spend money
Younger generation like to experience new foods
Operating cost increasing
Difficulties to recruit staff for F&B business
Lot of competitors
Target Audience Personal Profile ( TAPP )Michelle is 21 years old. She is a skinny girl who currently studying Graphic Design in Lasalle. Michelle belongs to a middle class Chinese family. She lives in Toa Payoh HDB flats. She loves to hangout with her friends on weekends around Bugis and Orchard. Michelle never care on what food she eats. She just loves to try different kind of dishes. Food hunting is her must-do activity. Being stylish, trendy, and carrying modern gadget such as iPhone 4 is her lifestyle. She normally read U-weekly magazines. Michelle likes to watch cookery program.
MARKETINGSTRATEGY
STRENGTHS, WEAKNESSES,
OPPORTUNTIES AND THREATS
(SWOT)
Melts is targeting on these customer profile:• The student : more and more youngsters have developed healthy eating
habits. Some also go through a “health food phase” while in college.• The health conscious person of any age or sex : includes anyone on a
restricted or prescribed diet or those who have committed to a healthy diet.• Curious and open-minded : Through marketing and word-of-mouth, people
will seek out a new experience and learn that nutritious food can be tasty, fun, convenient, and inexpensive.
However, the main targeted customer is the student age range from 17-25 years old. Students with high knowledge are more concern about their health condition while they are also curios and open-minded
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Unique Value Propositioning (UVP)We offer the most unique food without MSG by using fruits as the main flavoring, at affordable student price with friendliest services.
Differentiation In creating a new restaurant, we believe that we should have our difference from the existing competitors in the market. Therefore, we have a very clear difference in the products that we sell to consumers and we also provide a better service, and also in other matters.
In terms of food quality, Fish & Co. quality is fine but they are still using MSG in their food, while Han’s quality is not that good and they use a lot of unhealthy flavoring ingredients. Therefore, we provide western food that is cooked without the usage of MSG but we are using fruits as the flavoring instead. We intend to provide a more natural flavor food.
Other things, related to the quality of food. We ensure that all foods are clean and fresh. We definitely will not use fruit, meat or other ingredients that are not good or fresh.
In terms of customer convenience, our competitors have more priority to the capacity of the restaurant, in another sense, they don’t consider about the comfort and privacy of consumers by providing a little distance between the table. Meanwhile, we provide the level of comfort and privacy of customer better than our competitors with a wider distance between the table, although it will reduce the capacity of our restaurant, but we believe that consumers comfort is one of the most important thing that a restaurant should provide.
Another difference of our restaurant is related to the service that we provide to consumers. All things, from coming to the restaurant, served by staff, placement of seating, food ordering, until payment is all done in the consumer table, so there is no self service program. In this industry, indeed not a few restaurant provide this kind of service, but we realize that most of restaurant that implement this kind of service are classy restaurant, while Han’s, one of our competitors still provide “self-service” in their restaurant.
Our restaurant manager is ready to serve any customer at any time, because, our restaurant manager not just sitting back inside the office. Thus, any customers who would like to express their complaints, our restaurant manager will be available.
PlaceBugis Junction200 Victoria StreetSingapore 188021Owned by CapitaLand
We choose this place because this are is high crowded. According to the CapitaLand website, Bugis Junction annual shopper traffic in 2009 reached 36.4 million. Below are list of some reasons why this place is choosen
1. Located in the downtown core of Singapore with direct access from the Basement level to the Bugis MRT Station. Bugis MRT station will also be the interchange to the Downtown Line in future. This makes the place easier to acces and customers don’t need to walk far to our restaurant.
2. Singapore Management University (SMU) ,Lasalle, NAFA , Raffles Design Institure, and other school located near this area as we are mainly targeting University students who are coming to this area for school.
3. Bugis Street, Bugis Village and Iluma located opposite the street. Many of shopping places located in this area which will attrcat more crowd.
4. National Library located across the street. Most of our targeted customer, university student, always go to library to do research for their school projects.
5. Many shopping places, restaurants and food courts are available in this area.
Pricing We set our meal price from $10-$15. Medium price range which is affordable for student.
Promotion Promotion / marketing communication of this restaurant will be conducted throughout the year 2011 and it is divided into 3 phases (per 4 months). The funds budgeted approximately $ 200,000 is taken from the initial capital, the details that associated with the promotion or marketing communication can be found on “Marketing Communication Plan” on page 31.
ProductThe food product we are selling is western food. Our exclusive signature dish specially created by the chefs is “Honey Orange Beef Steak”.
Main DishBeef, Chicken, and Fish Steak ( Served with different kind of fruit sauce )PastaBaked RiceBaked SpaghettiFish & ChipsPizzaBeef, Chicken, and Fish Burger
Starter Soup & SaladGarlic Bread Soup of the dayChicken Wing SaladFrench FriesOnion RingHashbrown
BeverageTea LatteLemon Tea MochaGreen Tea Fruit JuiceFruit Tea SmoothiesCoffee MilkshakesCappuccino Soft DrinkIce Water ( Free Flow )
However these are just the menu range on the starting of the business, as the business goes on, our chefs will develop more interesting dishes.
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BugisJunction
BugisJunction
Artfriend
RafflesInstitute
NAFA
Lasalle
SMU
MRT
NationalLibrary
NationalLibrary
We manage our relationship with our customer by launching a membership program. The membership is applicable to any customer if they dine above $50. Some benefits for membership :
1. Discount 10% for total bill. Special 15% discount for student.2. Birthday month treat. Vouchers will be given to the customer. Each voucher
is valid for $1. The amount of voucher they will get is the same as their age. Example : 19 years old will get 19 vouchers.
3. 365 days membership discout even it is Public Holiday.
Other than membership program, our outlet manager will be around all the time in the restaurant so that customer able to give any feedback or complain anytime. Feedback, Suggestion and reservation for seat also can be done online.
CUSTOMERRELATIONSHIPMANAGEMENT
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Brand DNA
Category“Melts” is a casual restaurant serving foods in fruity flavor.
Character“Melts” aims to be a unique and friendly restaurant.
BenefitsTasty food and enjoyable experience of our brand new recipes
PromiseOnly we delivers unique food by adding variety of fruits as the main flavoring, that created by our chef and guaranteed with no usage of MSG
CredibilityRecipes are made by our trained chef by using fruits as the flavoring and ensuring there is no MSG inside the food
DifferenceWe create combination of fruits and food
BRANDPOSITIONING
HighQuality
Low Price
MARKETPOSITIONING
Market Positioning StatementWe dedicate to teenagers and young adults who are studying and dare to try something new, as our restaurant offers them the most unique food with natural fruit flavorings that are free of MSG, at affordable student price.
Market Positioning Map
LowQuality
High Price
The price we offer is equivalent to Han’s, which can be categorized as affordable but we provide quality food is better than “Han’s”, while “Fish n ‘Co.” offers a higher price on the menu, but have better quality than “Han’s”.
Our restaurant : Melts
Competitor : Fish & Co.
Competitor : Han’s
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In terms of price, we have positioned our restaurant together with the "Han's", but the portion of food, we give more than "Han's"."Han's" serves food with a small portion, but the price is quite high. "Fish n 'Co." offers a more than adequate, it's just the price is quite expensive.
High Price
Low Price
LargePortion
SmallPortion
High Price
Low Price
HighTouch
LowTouch
In terms of quality of service in the restaurant, we put ourselves as the best of all competitors. We try to provide the best for the customer. Starting from the placement of seating, reservations, until payment is all done at the customer's desks. There is no self service in the presentation. Manager Restaurant also ready to serve customers who may need assistance or complaints anytime.
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Wide Selcetion
Low Selection
Natural Food
MSG
"Han's" and "Fish n 'Co." is not a barrier for us in terms of food choices and the authenticity of the taste of the food itself. We provide a variety of menu choices and provide a sense of natural origin with no MSG in it. While both are still serving food with flavor and have a few menu options.
Our restaurant : Melts
Competitor : Fish & Co.
Competitor : Han’s
MARKETINGCOMMUNICATIONSPLAN(IMC PLAN)
The Marketing Communication Plan design of our restaurant which is divided into 3 phases.
1. The first phase (Jan-Apr 2011)
ObjectiveCreate awareness to let people know about our restaurant and encourage people to try our food
Design MessageUnique Value: No MSG, Food Unique CombinationFeature: Honey Orange Beef Steak
Media Selection• Advertising : Print media ( Magazine : IS Magazine, Catalog, Juice )• Outdoor Media : Bus Stops and MRT ( Bus Stop in Bugis and Orchard area
and MRT door ads on Bugis and City Hall MRT Station )• Brochures / Flyers
BudgetEstimated SGD 100,000
We allocated $ 100.000 for the campaign in this first phase. We aim to introduce this restaurant to the public by introducing the difference of our restaurant, we are selling food that is cooked with fruits as the flavoring and there is no MSG added inside the food. Besides introducing our restaurant, we also presenting our special signature dish, Honey Orange Beef Steak.
MeasurementTargeted 30-50 customers per day on weekdays and 50-70 customers on weekends
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2. The second phase (May-Aug 2011)
ObjectiveEncourage regular customers to come back
Design MessageLaunch loyalty program and a special offer (National Day)
Media Selection• Sales Promotion : coupons for 15% off• Internet : Web site and Facebook fan page• Direct Mail
BudgetEstimated SGD 60,000
The purpose of the second phase is to remind and encourage regular customers to come back often and patronize our restaurant. In addition, this campaign could also attract potential new customers. Funds needed at this stage is lower than the first stage, because we believe our restaurant is getting known in the market. Coupons and direct mailer is the primary campaign in this phase. Website and Fan Page on Facebook (social networking) are also built. The messages in this second stage are offering a loyalty program and special offer on Singapore National Day.
MeasurementEstimated total 100 of customers will sign up in this 3 month time
3. The third phase (Sept-Dec 2011)
ObjectiveTo attract new customers and increase sales
Design MessagesNew dishes and a special offer (halloween and christmas)
Media Selection• Sales Promotion : coupons for 15% off• Advertising : Print Media ( Magazine : IS Magazine, Catalog, Juice )
BudgetEstimated SGD 40,000
Third stage can be considered as an additional campaign, after the two pervious campaign we believe our restaurant is being recognized in the market. On this stage, we are targeting to increase the number of new customers and sales. The budget allocated is slightly decreasing comparing to the last campaign due we are only using coupons and magazines. Messages to be delivered was almost the same with the two previous campaign, special offers and several new menu.
Three stages of this marketing are estimated to increase the popularity of our restaurants, although impressed simple and not too much. Budget prepared is SGD 200,000 for the third-phase campaign in 2011, through advertising, brochures, sales promotion, Internet, and direct mail.
MeasurementTargeted 50-80 customers per day on weekdays and 80-100 customers on weekends
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FacilitiesThe restaurant located inside Bugis Junction. Total amount of space estimated around 185m2.. The reason of choosing the current location because Bugis Junction is located near the train station. Bugis is one of the location that student will go, either its going to school, library, or shopping.
The restaurant renovation will be simple yet colorful. Each color represents for fruits color and our passionate to the business. Total of 40 seats in the restaurant.
Hours of OperationThe restaurant will open daily at 11am to 10pm on weekdays and 10am to 12pm on weekend and public holiday.
Employee Training & EducationEmployee will be trained when they are hired. The training will cover on the operational duties, our restaurant background and the latest information about the restaurant. Food safety training begins the first day an employee arrives for work, with an orientation to our standards.
Food ProductionFood will be prepared only in the kitchen. The kitchen will be cleaned everyday to ensure the high standards of sanitary. The supply of ingredients will be replaced daily and checked by the kitchen staff to ensure the quality and freshness of the ingredients. Companies that supply food products to Melts must have a number of food safety programs in place.
SystemMaintanance of equipments in the restaurant will be done monthly to ensure the safety of every employee.
OPERATIONPLAN
MediaPhase 1 Phase 2 Phase 3
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Magazine ( IS Mag )
Magazine ( Catalog )
Magazine ( JUICE )
Bus Stop Ads
Train Ads
Brochures/Flyers
Sales Promotion ( Coupon )
Website
Facebook Fan Page
Media Calendar
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Organizing and staffingBranch ManagerOpen and close the restaurant, estimate how much food and beverage will be used, place order with suppliers, purchase and track all the inventory and equipment, arrange for maintenance and repair of equipment, oversee the food preparation, checking the quality and size of the servings. Manager resolve customer complaints about food or service. In addition, manager make sure that kitchen and dining areas are cleaned. Manager are responsible for recruiting and hiring new kitchen and serving staff. They train new staffs and oversee their training hours. Manager also schedule staff work hours, making sure that peak dining hours are covered. Managers total cash and charge receipts at the end of each day and they deposit them in the bank account.
Head ChefDirect the preparation, seasoning and the cooking process. Supervise, train, and observe chefs and kitchen staff. Determine how food should be presented, create decorative food displays, instructing chef in preparation, cooking, garnishing, and presentation of food. Head chef responsible for hiring and training new chef. Head chef also create new recipes for menu.
ChefAssist the head chef in preparing food. Check the quality of raw and cooked food products. Involve in developing menu together with head chef.
Kitchen StaffHelping the head chef and chef to prepare ingredients that will be used for cooking, check the deliveries of fresh food and all the ingredients for quality everyday, and ensure the cleanliness of kitchen including all the equipments and utensils.
Cost
Product Items Cost per month
Utilities $ 3.200
Rent $ 18.000
Salary forall staff
$ 23.562
Raw Materials $ 10.000
Advertising $ 5.000
Product items Cost per month
Office Supplies $ 250
Telephone Fee $ 250
Printing $ 200
Internet $ 99
Uniform $ 400
Insurance of Fire $ 300
Halal License $ 975
BartenderPrepare all drinks also develop and create new drinks recipe.
Waiter / WaitressThey serve customer from they come in and leave the restaurant. List the customer orders and deliver the orders to customer. Clean up the table when customer leave. Waiter and waitress greets and serve every customer. They have complete understanding of menu items and explain it to customer if they have any question.
CashierResponsible for taking payments from customers, making change, and giving receipts. They answer telephones and take reservations for seat.
Cleaning Service Responsible for restaurant cleanliness and dishwashing.
Floor Plan
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Chief Executive
Operation
Branch Manager
Chef
KitchenStaff
ServiceStaff
Marketing Manager
Staff
Trainer Accountant
Staff
Human Resources
Finance Manager
R&DManager
Business/Development
ORGANIZATIONAL STRUCTURE
ChiefExecutive
Business/Development
FranchiseManager
Staff Staff Staff
Chef SupervisorTrainingManager Accountant
TrainerService
StaffKitchen
Staff
MarketingManager
BranchManager
HumanResources
Finance Manager
R&DManager
Operation
Organizational chart illustrates the composition department in the next 3-5 years, both in the restaurant business and operations itself. We are starting the business with a simple chart for the operational part. We only have a Branch Manager along with his staffs, Finance and Human Resources. Marketing part was just the standard, to prepare and administer the purposes of advertising for this restaurant.
Along with the development of this restaurant, we will expand by adding more staff and establishing a Research and Development (R & D) department to develop new recipes together with our chefs.
Brand franchising is targeted in 3 to 5 years time. At that time, franchise department will be formed to organize and direct the franchising.
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FINANCIALBUDGET
Tangible Assets
Tangible Assets Cost
Renovation $ 224.500
Equipment and Office Automation
$ 4.650
Kitchen Equipment $ 33.630
2011 IMC Plan $ 200.000
Total $ 462.780
Initial Capital andFixed Assets
$ 650.000
Cost ( $ 462.780 )
Balance WorkingCapital
$ 187.220
Breakeven Analyis
---Jan - Jun
2011Jul - Dec
2011Jan - Jun
2012Jul - Dec
2012Jan - Jun
2013Jul - Dec
2013Total
Sales Turnover $ 211.332 $ 359.264 $ 538.897 $ 808.345 $ 1.050.848 $ 1.261.018 $ 4.229.704
Variable Cost $ 336.541 $ 399.463 $ 455.532 $ 547.594 $ 577.273 $ 681.060 ( $ 2.997.463 )
$ 1.232.241
Profit & Loss
... 2011 2012 2013
Sales Turnover $ 570.596 $ 1.347.242 $ 2.311.866
Variable Cost ( $ 736.004 ) ( $ 1.003.126 ) ( $ 1.258.333 )
Profit ( Loss ) ( $ 165.408 ) $ 344.116 $ 1.053.533
We started up our business with an initial capital of $ 650,000.This money will be spent to cover various initial expenses such as renovation cost of that selected place,buying restaurant equipments etc.Among the whole amount according to our IMC plan we are spending in the first year(2011) $ 200,000 for marketing expenses. The remaining amount of the initial capital i.e $ 187,220 can be used to cover the lack of running business within the first year.
This is the estimated amount of revenue and expenditure in general. After 3 years running our business successfully we will get the desired profit of amount $ 1,232,241.
Although we suffered losses up to $ 165.408 in the very first year, but still the loss amount can be covered with the rest of the initial capital. But starting from the second year (2012), we will started gaining profits from the sales.
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MILESTONES
1st year(2011)
2nd year(2012)
3rd year(2013)
4th year(2014)
5th year - ...(2015 - ... )
Location
Sourcing for supplies• Ingredients for
product• Condiments
Budget/Costing• Finance
Organization Planning
Staff Employment
Developing Food Menu
Investors
Planning for IMC
Franchise• Location• Selling Structure• etc.
Expansion of business (more outlets)
IMC• Promotion• Special event• Brand awareness
Prelauch EstablishingBrand
EstablishingBrand
EstablishingBrand
Expansion
Expansion of Business Department
Expansion of Operations Department
Expansion of business (2nd outlet)
Breakeven Point
2.5 yearsTotal Sales Turnover
$ 2.968.686
2.5 yearsTotal Variable Cost
( $ 2.316.403 )
Initial Capital $ 650.000
Breakeven $ 2.283
After 2.5 years our total sales turnover is estimated $ 2,968,686. After 2.5 years of running business the estimated total variable cost will be $ 2,316,403. We will get our expected gross profit after subtracting the total variable cost from the amount of total sales turnover $ 652,283. If we again subtract the gross profit amount from the initial capital $ 650,000 we can able to get our break even amount $ 2,283.
Return On Investment
... 2011 2012 2013
Initial Capital $ 650.000
Profit ( Loss ) ( $ 165.408 ) $ 344.116 $ 1.053.533
ROI - 47% 62%
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Losing Against Neighbour CompetitorsWhen it comes to this matter, action that should be done before too late is to change restaurant location where there are fewer competitors.
AccidentFollowing are nasty accidents that may take casualties, caused by human negligence:
• Gas tank explosion• Short-circuit• Burning building caused by external factors
In this case, company should close for some time while repairing the building and refurnish it. As this takes a lot of company budget, if the fund is really low, company may like to open in other place in a smaller building to re-gain the loss.
Internal Problem : Corrupt EmployeeExpel will be applied to any rank of employer in the restaurant company that shows incompetency in the workplace. The instant punishment includes this kind of incompetency:
• Time corruption (up to 10 times)• Company Financial corruption• Bribes (giving and receiving)• Harassment towards other employee• Threatening other employee
Lack of Income / Target Audience Doesn’t Being AttractedIn case of having financial loss in the first weeks or month, CEO should take responsibility whether to hire a new manager for a better store management, use last finance to spread out brochures, start some discount or promotion coupons, or ‘re-face’ the restaurant image (logo, building color, or dishes) to get more attraction as the last resort.
Negative Customer Feedbacks (Food or services)When food matter becomes the main point of the negative customer feedback, CEO should take decision to:
• Get a new recipe or new concept of food, if taste of the restaurant speciality itself is the negative part
• Hire new chefs, if food quality is the negative part (e.g. inconsistency in food proportion, dishes not well-done cooked, foul-taste (too salty, too sour, too sweet, etc)
• Get new food suppliers, if ingredients quality is the negative part (tough-meat, reek meat, unpleasant taste of meat or veggies)
When Service matter becomes the main point of the negative customer feedback, CEO should take decision to:
• Fire unmannered waiter/waitress, if they are impolite to customers, to show strictness of restaurant rules to the rest of the worker and hire the new one
• Re-train waiter/waitress, if they get too much errors in taking order • Swap cashier person with someone who is better in math, if there are always
false count of money• Fire lazy waiter/waitress who don’t want to serve customer who just come
in to the restaurant or behave improperly in front of customers while taking orders or on standby.
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