Analysis And Formulation Of Business Plan For Burger And Fries Fast Food Restaurant In United Kingdom

Mission and Vision

The main purpose of this assignment is to analyze and formulate a proper business plan for opening a fast food restaurant in United Kingdom (Lang and Heasman 2015).  The business plan will be containing an overview of the company and different areas of the business such as operational, marketing and financial aspects.

The restaurant for which a business plan is being prepared is Burger and Fries. Burger and Fries is going to be a fast food restaurant which will be established next year which will specialize in selling burgers, fries and other fast food products which are popular among the present generations. Burger and Fries will be opening sometime next year and as it is going to be newly established restaurant and thus it needs to have a proper strategic plan in order to face their competitors. Burger and Fries will provide good quality food at a reasonable price and the locations where the shops will be established are densely populated.

In today’s competitive environment, there is intense competition between different fast food chains. Every fast food restaurant is trying to differentiate their product and improve the quality of product or add more value to the product in order to acquire as much market share as possible (Nestle 2013). The plan of the restaurant business is to open a store in crowded areas such as malls in order to attract customers. The restaurant’s business model aims at attracting younger generations with their variety of product along with the highest level of quality at a reasonable price Fraser et al. 2012).

The objectives of the restaurants which the business will be following are given below:

1. To establish a local fast food restaurant and gain customer loyalty.
2. To provide highest level of food quality to its customers and ensure that a wide variety of products are available to its customers.
3. To expand its business by opening new outlets in local area and develop the brand name of the restaurant once the restaurant is established with stability.

Mission and Vision

The mission of the restaurant will be to provide best services to its customers and also provide best quality of food to its customers (Williams Jr, Morrell and Mullane 2014). The main goal of the company is to become a leading fast food restaurant in the country. The vision of the company is to acquire maximum market share and become the leading brand of fast food chain industry in the company.

Burger and Fries locations

The projected locations of the restaurants will be in locations where there is a tourist attraction or where the place is crowded like malls, amusement parks or important monument sites. The location of the company will also be determined by the availability of resources such as ingredients used in the foods, market access. The management of the company is planning to open medium sized restaurant in a local crowded area of London.

Burger and Fries locations

Products on Offer

The restaurant will mainly focus on providing fast food items like burgers, fries, beverages which are popular among the teenagers. The restaurant will be focusing on food products without compromising health standard. The restaurant’s menu will include salads and vegetable combo dishes for those sections of people who are more health conscious. The company has hired best chefs who have planned to prepare a special kind of chilli sauce which will be popular among consumers.

Nowadays the market for business in Fast food chain industry in United Kingdom has increased tremendously. The younger generations prefer fast food products more than healthier food products (McKeever, M., 2016). The market for fast food stuffs is favourable for products like burgers, fries, pizzas as these products are popular among the consumers. The target consumers of the Burger and Fries will be basically younger generations like kids, teenagers. The company has considered the following aspects of the demographic of United Kingdom and selected the target group of consumers which are younger generation. The restaurant will be preparing its menu card considering the needs of all the generation of peoples. The company is planning to open its shops in a crowded area where people will be coming for lunch or quick food bites. As there is a craze for soft drinks in summer season as refreshments, the restaurant will be keeping five or six brands of soft drinks in the restaurant.

Competitors

The restaurant needs to identify all its potential competitors and analyze what are the threats which they create for the company. The potential competitors of the restaurant will be Mcdonalds, Burger King, Pret A Manger. The competitors of Burger and Fries are already established in the business and therefore the restaurant needs to formulate a strategy which can give their products an edge over the products of their competitors. The restaurant plans to adjust the costs of its products in order to become competitive in the intensely competitive market of fast food Industry.

Market Entry Strategies

The management of Burger and Fries’s focus will be on establishing the restaurant with stability in the market and acquire recognition of the customer as soon as possible. Market entry strategies can be defined as the process of producing and selling of good in a new market considering a new group of target customers (Laufs and Schwens 2014). The restaurant will be trying to make its products popular from the start in the markets across United Kingdom. The market entry strategy of Burger and Fries will include a detail analysis of the market in which the company is deciding to open a store. Burger and Fries‘s management then have to identify the taste and preferences, culture of the market as well as who will be the dominant competitor in this new market. The company core policy is to provide the highest quality of food products at a reasonable price. The management of Burger and Fries will also be identifying the core strength of its rival companies in order to come up with a way to tackle the situation. The restaurant will be incorporating strategies like free lunch for a day and acquire feedbacks from the customers about quality, environment, ratings in order to create a buzz and positive image of the restaurant. Any customer who is not pleased with the services of the company will be refunded in full and will be provided with free delivery in order to display that the restaurant always focuses on quality and customer services.

Products on Offer

Swot analysis identifies the strength, weakness, opportunities and threats of a business. Basically SWOT analysis is an internal and external analysis which brings out what are the strengths and opportunities of the business and it also brings out the weaknesses and possible threats of the business (Bull et al. 2016). SWOT analysis is useful in identifying the weaknesses and overcoming the threats of the business and identifying the opportunities of the businesses and taking advantage of the same. The SWOT analysis of Burger and Fries restaurant reveals that follow as giving below:

1. Strengths: The major strength of Burger and Fries will be the quality of products it offers and the variety of products the company can to offer. The company will initially started its operations by just focusing on proper quality of food products and cost reduction (Bohari, Hin and Fuad 2017). Another strength of the company lies in its variety of products and different combos which will be available to its consumers once the company starts operating.
2. Weakness: The basic weakness which can be identified with Burger and Fries will be the prices of its products will be more or less high. As the restaurant core policy is to provide best quality of food to its customers, naturally better quality always comes with high prices. In order to tackle this weakness the restaurant will be introducing certain economical combos which are reasonably cheap and therefore the company can patronize all section of income group of people.
3. Opportunity: The business of Burger and Fries has a definite scope of expansion once it settles down. This is due to the fact that fast food chains nowadays are in constant demand and most of the fast food chains are expanding their business. Due to rapid expansion not just in London but other countries like United States and other countries most of the fast food chains are acquiring more and more market share. There is an opportunity for the management of the Burger and Fries to expand and penetrate in new markets once the company opens up and settle down in this industry (Galizzi and Venturini 2012).
4. Threats: The threat that Burger and Fries will be facing is by its competitors. Even in United Kingdom Burger and Fries will faces intense competition from brands like Mcdonalds, Burger King, Subway, Pret A Manger. For example in US the dominance of subway is more than any other brands. Likewise other local brands of London can dominate the restaurant as it will be newly established.

The operations of the restaurant will be managed by the manager who will be placed in restaurant who will be also known as store managers (Kopanos, Puigjaner and Georgiadis 2012). There will be a supervisor who will look into the day to day business management of the business like stock of food items used for cooking like vegetables, meat, appearance of the shop, hygiene conditions in the shop. The supervisor will also be interacting with the customers in order to get their feedbacks on the quality of the food products and general feedback as well. The supervisor will be operating and working under the manager. The top level of management that is owners and other key personnel will be on the decision making process. The employees of the company will be advised to treat and behave with their customers in a friendly manner. The main concern of the Burger and Fries will be to make their products as unique as possible in order to gain competitive edge over their rivals. The factors which provide competitive edge to the business of Burger and Fries are given in the point form below:

1. The unique sauce which is as planned to be prepared by the restaurant blends with the changing environment preferences and the sauce will be design in such a way that it becomes popular among the youngsters and will act as a signature part of fast food recipes.
2. The quality of the food products will be of best quality which will attract a lot of loyal customers.
3. Innovative advertisement and promotion activities will ensure that the company will be earning a brand name sooner than later.

The strategy of the restaurant will be to serve the customers as well as possible. Burger and Fries will open a temporary small stall which will test the market and see how well the market and people are responding to the products of the restaurant. The concentration will be on establishing an identity and keep the cost as low as possible (Schlosser 2012). The quality of the Burger and Fries will be high as it form part of the core functions of the business. The most crucial part of marketing will be the locations of the store and the advertisement campaign that the company will employ. In order to analyse the marketing conditions the business considers the Seven P’s of Marketing which are explained in details below:

1. Product: The product should be such that it satisfies the needs of the consumers. The products which are offered by Burger and Fries restaurant will be the major attractions for business as they will be of best quality at an affordable price. The product should be such that it exactly what the consumer expect from the product and company (Khan 2014). This is very important constituent which can boost the reputation of the company.
2. Place: The product which is produced by the company needs to have a place where the product can be stored and also a place where the product can be sold. This place can be market, warehouse, shopping mall. There is wide market where the products can be sold. This market has even further widen with the introduction of virtual media. People nowadays order food online.
3. Price: The price of the product should be such that the value of the product matches its price. Burger and Fries has planned to regulate its budgeted prices and is planning to introduced new combo meals which are economical and such that everyone can enjoy them.
4. Promotion: These activities mainly include advertisement and promotion activities. Such activities include door to door sales, retail sales and sale promotion activities. These promotion activities of Burger and Fries will include free products distribution in order to create a buzz among the consumers, advertisement in newspapers and television.
5. People: The newly added element is people. Every organisation is managed by different groups of people whether it is production, marketing or sales department. A success of a business largely depends on the workforce of the business. The management of the Burger and Fries will be run by employees and supervisors in an efficient manner.
6. Processes: These include the services which are provided during the delivery of the product or after sales services (Huang and Sarigöllü 2014). Burger and Fries will incorporate the policy of acquiring feedbacks from the customers in order to improve the products or the environment.
7. Physical Evidence: The last introduced element in marketing mix is physical evidence. Every services include some physical factor which also needs to be considered. The physical factors of Burger and Fries will be the store environment, locations.

Competitors

The company will be financial operated and maintained by the owners of the company. The start up funding of the business is being handled by the owners of the company. The owners of the company are four partners who are from areas of United Kingdom. Burger and Fries’s Management has also applied for a loan from the bank which will make the capital structure in a 60:40 ratio. The 60% share of capital will be provided by the owners of the business contributed equally and the remaining 40% of the capital is to be provided from the debt taken from the bank of England.  The analysis below show budgeted Cash flow of Eat Fresh business on the basis of fictitious customers

MONTH	1	2	3	4	5	6	7	8	9	10	11	12	TOTAL
CASH IN                           Cash from customers
Cash reveived from customers	25000	35000	45000	47500	22500	32500	31000	35500	25500	30000	25000	32500	387000
													0
													0
													0
													0
													0
													0
TOTALS	25000	35000	45000	47500	22500	32500	31000	35500	25500	30000	25000	32500	387000
CASH OUT Materials
Wages/NIC       (employees only)	2500	2500	2500	2500	2500	2500	2500	2500	2500	2500	2500	2500	30000
Drawings inc. NIC													0
Rent/rates	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	14400
Heat/light	1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	12000
PR/advertising	750	750	750	750	750	750	750	750	750	750	750	750	9000
Telephone/fax	800	800	800	800	800	800	800	800	800	800	800	800	9600
Postage/stationary	450	450	450	450	450	450	450	450	450	450	450	450	5400
Insurance	500	500	500	500	500	500	500	500	500	500	500	500	6000
Repairs/maintenance	750	750	750	750	750	750	750	750	750	750	750	750	9000
Transport/travelling	600	600	600	600	600	600	600	600	600	600	600	600	7200
Capital expenditure	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000	60000
Loan repayments	3000	3000	3000	3000	3000	3000	3000	3000	3000	3000	3000	3000	36000
Professional fees	1250	1250	1250	1250	1250	1250	1250	1250	1250	1250	1250	1250	15000
VAT	1500	1500	1500	1500	1500	1500	1500	1500	1500	1500	1500	1500	18000
Stock	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000	60000
TOTAL CASH OUT	24300	24300	24300	24300	24300	24300	24300	24300	24300	24300	24300	24300	291600
Net cashflow IN/OUT		10700	20700	23200	-1800	8200	6700	11200	1200	5700	700	8200
opening balance /(deficit)		700	11400	32100	55300	53500	61700	68400	79600	80800	86500	87200	95400
Closing balance /(deficit)	700	11400	32100	55300	53500	61700	68400	79600	80800	86500	87200	95400	95400

The prices of the product will start at £15 to £ 20 for a meal which will be containing a burger, fries and beverages and the customer will have an option of desert as well. the restaurant will try to keep the prices of the food products as low as possible.

Figure 1: Chart showing Projected Cash Flows

Source: (Author Made)

Key Partners · The key partners of the business are Jeff Archer, Chris Pratt, Leonardo Wells, Stanley Brown. · The Key suppliers of the business are Stuart Bricks, who will supply food products like vegetables, meat, Pattric Matthew, who will provide spices, chilis. · The key ingredients are chilies, meat, vegetables, bread, sauces and beverages.	Key Activities · The key activities include cooking the products and maintaining its quality. · The products will be cooked and then distributed by trucks to various stores.	Value Proposition · The restaurant will be delivering best quality of food products to its customers at a reasonable price. · The restaurant will try to solve the customers issue over prices by introducing a new product which is affordable by the customers. · The restaurant will try to look after the needs of all customers. The restaurant will look to ensure that the restaurant satisfies the needs of all customers.	Customer Relationships · The restaurant tries to maintain good customer relationship with its customers. · Burger and Fries plans to create an environment where the customers are greeted as they order food and are always treated with friendliness.	Customer Segments · Burger and Fries will try to achieve as much market shares. The restaurant will target the younger generation of the populations such as kids, teenagers, college students and high school students. The restaurant will also be introducing new combo meals for family units and working class of people.
Key Resources · The company key resource will come from the local market such as vegetables, meat, beverages. · Eat fresh ensures that proper relations are maintained with all the customers and the employees behave in friendly manner with all the customers.	Channels · There are various channels that Burger and Fries services will offer one will be booking of tables or walk in for services. Another will be online ordering and another will be telephone ordering. The online ordering of food by various applications is becoming popular in current scenario.
Cost Structure · The restaurant is trying to reduce its budgeted cost in order to attract more customers and have more profits. · The most important resources are meat and vegetables which have a significant cost in business. · The most costly activity will be advertisement and promotion of the of the brand name of the restaurant as the restaurant is new.	Revenue Streams · The customers are more than willing to pay for the meals which are of superior quality. · However the customers will always try to appeal  that food products are still expensive

Reference

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