Business Plan of a Restaurant for the Wurst Family
Table of Contents
1.0 Executive Summary 3
2.0 Justification of the Restaurant 3
3.0 Non-Financial Analysis of the Restaurant 5
3.1 Products and Services 5
3.2 Market Segmentation 5
3.3 Strategies 7
3.31 Competitive Edge 7
3.32 Promotion Strategy 7
3.33 Management Summary 7
4.0 Financial Analysis of the Restaurant 8
4.1 Breakeven Analysis 8
4.2 Cash Flow Data 9
4.3 Income Statement 10
4.4 Balance Sheet 11
4.5 Taxation 11
5.0 Conclusion 12
6.0 References 13
1.0 Executive Summary
The main purpose of this report is to generate ...view middle of the document...
In accordance with the above, this report will be divided into four major parts. Firstly, the report will identify and analyse the reasons why the restaurant is chosen as the start-up business venture for the Wurst family. Following that, it will make use of the collected information to investigate the restaurant itself and the external environment so as to achieve appropriate business strategies. Subsequently, it will provide the financial budgeting for the restaurant to 30 October 2013 in terms of breakeven analysis, cash flow, income, balance and others. The last part will conclude the report in terms of viability of the restaurant.
2.0 Justification of the Restaurant
After negotiation, Mr. and Mrs. Wurst are advised to establish a restaurant rather than a retail florist shop on Playford Avenue in Whyalla, and the choice is made on the basis of the following reasons. For one thing, it is known to all that catering trade is one of the few industries that are mostly inextricably linked with people’s daily lives, which is therefore quite a stable industry. For instance, in 2009, although economic conditions were extremely tough for Australia by worsening further from the preceding year, consumer food service maintained a growth of 4%, similar to the growth of the last year. The increase was attributed to a big and steady gain of the cheap takeaway or home delivery food choices and slight increases of full-service restaurants. Furthermore, it’s predicted that Australians are expected to continuously dine out as the economy is bettering in spite of rising interest rates and inflation (Euromonitor, 2010). Hence, as a start-up business, the Wursts are advised to take up a venture in an industry that has bigger winning possibilities.
Secondly, according to Maslow’s hierarchy of needs, the five needs of physiology, safety, affection, esteem and self-fulfilment are advancing step by step while people would not have the next need until the preceding one is achieved (Maslow, 1999). As a result, it is logical for people to put food service, which falls into the physiological needs ahead of the florist industry even in peaceful times. On the other hand, assuming inflation continues to weaken Australian people’s living standards, it can be foreseen that citizens would give up their florist hobbies for their catering needs. For this reason, the Wurst family are recommended to start the catering business.
Subsequently, Matt is a professional sales manager for a major restaurant coffee supplier whose skills are adequately versatile to cater for each and every cuisine and food style. As for Lily, she works part time as a shift work nurse while she is very skilful at floristry and botanical arrangement and had much part-time working experience in florist shops. Although both of them are greatly respected in their individual work fields, Matt would appear to have more field experiences and useful contacts when opening a restaurant while what Lily...