Business Plan for CINNAMON SPICE Restaurant Limited
2007 - 2009
TABLE OF CONTENTS
EXECUTIVE SUMMARY
BUSINESS MISSION
COMPANY OWNERSHIP/ LOCATION
EXTERNAL ANALYSIS
The economy & business environment
The market place
Target Customers/ market dynamics
Competition
SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats
OBJECTIVES
Objective 1: To develop restaurant certified to serve diners
Objective 2: Recruit and train staff
Objective 3: Develop menus
Objective 5 : Marketing plan
KEY ACTIONS PLANNED FOR THE NEXT 12 MONTHS
MANAGEMENT TEAM/ HR
FULL FINANCIAL STATEMENTS
Year 1 sales forecast
Year 1 – costs forecast
Year 1 cashflow
Year 1 balance sheet
EXECUTIVE SUMMARY
Summary
Cinnamon spice Limited is a new company who are planning to open a new restaurant in the centre of a local village. Cinnamon spice Limited is founded by three entrepreneurs who have 18 years restaurant experience between them.
The market and business
The main market sectors Cinnamon spice will penetrate are couples between the ages of 25 to 55 and business people in the local area and within a radius of 10 miles. We wish to become a recognised national name in the next year but this is our starting point.
Cinnamon spice will concentrate on bringing as much local produce from the local area into the restaurant and link the menus to the requirements of the target market.
Core product offerings
The restaurant will be a fine dining establishment offering three types of menus:
- Lunchtime menu for business people
- Al a carte for evenings
- Set menus for weekends and special events
Revenues and profitability
Revenues forecasting for the first year of operation are £1.8m with this increasing by 8-9% for the subsequent two years. Net profits are forecast to be 30% before the salaries of the directors and before tax and interest.
Management team
ABC limited is a new company set up and run by Tim more, Jamie and Michal who have 18 years experience in the restaurant business.
The directors will invest £400,000 into the business at the beginning and repay these loans by the end of the first year. The property, worth £500,000, has been secured by a 25-year mortgage.
BUSINESS MISSION
Cinnamon spice mission is to become a leading well known fine dining restaurant in the local area and be first choice for lunch meetings
COMPANY OWNERSHIP/ LOCATION
Cinnamon spices Limited started trading in 2006 and is jointly owned by Tim More, Michal and Mr Jamie and Rashid are trading as a limited company.
ABC Limited is based at their premises at:
Address...
..........
..........
United Kingdom
Telephone
EXTERNAL ANALYSIS
The economy & business environment
The UK economy has steady growth and the outlook is for this to continue.
More and more people are eating out and business meetings are still common place.
External Research
Consumers spent £13.25bn on sit-down meals in restaurants in 2005, a market growth of 19% since 2001. Although this figure excludes any spending on alcoholic drinks to accompany meals, it represents around a third of the total consumer catering market (which also includes takeaway food and canteens).
Choice is characteristically broad in the UK, owing to the willingness of the British to adapt to new styles of eating and drinking from all over the world. Portuguese chicken, Japanese sushi and Spanish tapas have joined the more traditional curry houses and French or Italian restaurants found in most British towns. However, the most traditional British venue — the local pub or hotel — still has the highest sector share of formal, sit-down restaurant meals (excluding fast food such as burgers and fried chicken), while other distinct concepts include pizza, curry and roadside restaurants.
Ownership of most restaurants is still fragmented across individuals and families, and there is growing consumer distaste for the more obvious `chains'. However, the market does boast some successful multiples, led by the US-based fast-food giants (McDonald's, Burger King and Yum! Brands — owner of Pizza Hut and KFC), and some outstanding UK groups, including Whitbread Group (Brewers Fayre pub-restaurants), The Restaurant Group (Frankie & Benny's), Gondola Group (Pizza Express) and Nando's. Private equity has been heavily invested in restaurant groups in this decade.
The latest consumer research for Key Note shows that Pizza Hut is the most widely used non-fast-food restaurant chain (by 32% of adults), but most of the branded chains have been losing customers. In July 2006, the international owner of Pizza Hut, Yum! Brands Inc, announced it is buying back the 50% share in the UK business held by Whitbread.
The market will continue to grow even if the economy slows down later in the decade. This is because eating out has become a major element in the lifestyles of younger generations, and the older `baby boomer' generation has been brought up with an expectation of eating out regularly. Problems and challenges for restaurants in the future will include the demand for healthier eating, labour shortages and a torrent of red tape from both UK and EU governments.
