Business Plan Of Rooftop Cafe

Business Structure

The business idea which has been adopted in the present case is of the hospitality industry that is the café named as Rooftop Cafe. The café has not yet been registered thus proposed name of the business has been provided. Café will be opened next year near Christmas in Melbourne.

The business will be initiated through two partners. Thus the partnership business structure will be followed in order to operate the transactions of business. The partners of “Rooftop Café” are Mr Adam and Mr Smith. Both the partners are having appropriate experience in the hospitality industry as they have been part of this industry from the last ten years. Both the partners have worked in different know cafés of Australia. Mr Adam is known for his management skills,and on the other hand,Mr Smith is known for being a master of tasting and cooking. Even Mr Smith has also been awarded as best chef in the restaurant in which he worked previously.

Figure 1: Organization Chart of Roof Top Cafe

The key personnel of the café will be the two partners, general manager and assistant managers. The strategies and policies will be developed by the partners. Further, they will be discussed with managers and changes will be made accordingly. The staff which will be part of the café will be as follows:

Executives	Quantum
Chief Executives (GM)	1
Subordinate managers	2
Kitchen manager	1
Bartenders	1
Servers	5
Bar Backs	1
Chef and helpers	3
Prep	2
Dishwashers	2

Appropriate guidance will be provided to employees who will comprise the manner of dealing with issues relating to consumers, welcoming customers and providing other services. Meetings will be conducted at reasonable periods in order to discuss the issues faced by management.

The following products and services will be provided by Rooftop Café:

Products:

• Mains: Rooftop Café Breakky (a speciality of the cafe), Seafood Platter, Chicken Parmigiana etc.
• Starter: Garlic Bread, Natural Oysters, Tomato Salad.
• Wraps: Smoked Salmon, Falafel
• Burger: Grilled vegetarian Burger, Chicken Burger, Beef Burger.
• Pizza: Margherita, Garlic Prawn, BBQ Chicken
• Pasta: Risoto, Spaghetti Marinara, etc.
• Salad: Moroccan Lamb Salad, Chick Quinoa Salad
• Beverages:
  • Cold Drinks: All flavour
  • Wine: White wine and Red Wine.
  • Cocktails: Mojito, Dalquiri, Aperol Spritz.
  •  
  • Tea and Coffee.
• Desserts

Services: Roof Top Café will also provide services relating to the organization of small gatherings, parties and events. Special offers will be provided along with the additional order in order to provide an enhanced level of customer level satisfaction. It will also provide growth to the business.

Roof Top Café will indulge innovative concepts in the product as well as services. For instance, the products provided by the café will be transformed in accordance with the choice of the customer. Additional flavours will be provided so that customer can have drinks and other eatables of their choice. Moreover, customized toppings option will also be available so that customer has a feeling that they are prioritized and satisfied to a significant extent. While organizing small gatherings and parties also management will assure that  

Products and Services

With accordance to Wolke(2017), it plays a very important role in the survival of the business,especially for restaurants and cafes. The reason behind same is that there are chances of catching fire in the kitchen. For the same common safety measures will be developed in Roof Top Café; which are introducing sprinkler systems and monitored fire direction alarms. Further, checking fire extinguishers on a regular basis will be done along with providing training to employees relating to the manner of utilizing fire extinguisher. Along with this, there is automatic temperature fitting cut-out switches to stop deep fryer appliances from overheating. In order to do the same, deep fryers are fixed with separate exterior cut-out switch which is non-adjustable along with apparatus which can be returned manually. Moreover, the cut-out switches detach the deep fryer from energy supply when cooking oil or fat arrives at the maximum temperature fixed.  Fryers are checked monthly by an expert in order to avoid accidents in the cafe.

Legal considerations of Rooftop cafe are zoning regulations which define the kind of business that an owner can have in a specific location. Further, Cramer (2017) specifies that zoning potential for a property comprises residential, industrial, leisure, manufacturing and agricultural. Moreover, the type of business structure is also important for opening a new business since it influences the constituents for example financial responsibilities are allocated, comprising taxes and debt(Glassie, 2016). It is significant for the cafe to be licensed by controlling jurisdictions, whether it is in the city, nation or state.  Thus same will be compiled by the café. Further, all the regulations and laws will comply in order to avoid fines and other penalties relating with same.

It is stated by Gordon and Brezinski(2016),that, the sustainability plan of an organization comprises the development of strategies in order to sustain for a longer period. The sustainability plan of Rooftop cafe mainly emphasizes planning relating to the availability of types of product and services. Thus, the focus will be made on cooking the food items according to the type of season, for example, offering more types of soups in the winter season. Preparing the menu according is significant to attract the consumers. Further, Morden(2016) asserts that sustainability does not end with the menu. So, required training will be provided to the employees regarding the manner of treating the consumers. Since the finest way of transferring information to consumers is through employees. Along with this, the cafe will break the objectives in two main parts that are which are to be achievable in short period of time and which are to be achievable in future so that it becomes easy to attain pre-determined objectives.

Risk Management

Market Research

Market research has been accomplished by Roof Top Café in order to assess the existing size and latest trends and practices in the hospitality industry. Further, the target customer (or target groups of customers) has been analyzed for ascertaining their choice and taste. Even the extent of  the competitiveness and future threats have been assessed so that planning or strategy can be developed in order to reduced the negative impact of expected threat.

The main market target is Melbourne which is the hub of cafes and restaurants. Further, the customer target group of Rooftop Cafe is the individuals of age between 25-30. The reason behind the same is since people of this age group are very busy in their work. Thus they are usually outside and not at homes. Further, as per the study of Jeston (2014), this type of food is liked by youth generation mostly. Thus, the same have been targeted significantly. Moreover, the main competitors of Rooftop Cafe are Kinfolk, Axil Coffee Roasters, Seven Seeds and Frankie Walter Peta. In order to attract the consumers, it is very important to assess the services provided by competitors so that the business can give more superior services.

PESTEL Analysis

The PESTEL analysis tool is used by an organization to analyze the macro – environment factors which provide the necessary information in order to ascertain the areas which are required to be focused in an essential manner:

Political	· Government Regulations relating to restaurant business are to comply on a mandatory basis. · Main emphasis should be made on assessing the approval relating to serving alcohol.
Economical	· Inflation · Volatility in currency rate.
Social	· Current Trends of Hospitality Industry · Changing choice of the taste of people. · Significance of culture.
Technological	· Indulging of innovative ideas in operations of the business. · Acknowledging orders through an online portal.
Environmental	· Provision and regulations related to environmental law (Bell, Bryman and Harley, 2018). · Adopting Recycling procedure to the extent possible.
Legal	· Compliance with Licensing requirement. · Regulations relating to serving alcohol.

Strengths The best quality of food Best service Awesome Top View

Weakness · Recruiting and Retaining good staff. · Management of financial resources at the initial stage.

Opportunities · The opportunities accessible under the hospitality industry are infinite (Clegg, Kornberger and Pitsis 2015). · It can add to catering services to its business.

Threats · One of the most important threats that every industry faces are their competitor. In the same way, this diligence have the big threat of their established restaurants which serve transnational food and apart from this, it can be seen that regularly there are new industrialists who are interested in this industry. · The next threat which is likely to face is government policies; particularly the difficulty comes when they want to import the raw ingredients which are not accessible in Australia (Bullet al., 2016).

The threat to entrants – The threat of entry in this industry is high as initiating a restaurant business does not require too high financial resources. Moreover, one gets appropriate chance to present its potential in business through this. However, the advantage available to Roof Top Café is its ambience and view at the top. Thus, appropriate chances exist for the restaurant to sustain for a longer period.

Threat relating to substitutes – The threat of substitute in café is available at an extensive level. The reason behind same is varieties of alternatives are available to the customers as many other restaurants and cafés are available easily.

Power of buyers –With accordance to Hill, Jones and Schilling (2014), bargaining power of buyers is strong as substitutes are available in a significant manner. Moreover, café can decide price in accordance with the quality provided by them. Thus, higher charges can be demand if the appropriate level of service is provided.

 Power of suppliers – Roof Top Café management requires maintaining a healthy relationship with a supplier in order to receive supplies within time as well as for getting information relating to competitors. Thus, moderate bargaining power towards supplier exists in case of Roof Top Café.

Legal Considerations

The rivalry between competitors – A great extent of rivalry exist between competitors, thus due to same reason  a variety of issues are to be faced at the initial stage of business by café.

With accordance to Moriarty, et al.(2014), advertising refers to the broadcasting of information by the non-personal method through paid media where the resource is sponsoring company. Furthermore, to promote the cafe advertising is done on television, magazine and newspapers. Effective advertising and marketing strategies will lead to an increase in sales. People nowadays are more attracted through with social media so the online platform will also be utilized in order to provide information relating to café.

Vision statement

Roof Top Café is committed to uniting to provide fresh and delicious food and beverages, as we believe sustainability is not a lofty idea but a basic requirement.

The company will provide the preeminent service and taste in food to the customers, so that prefer coming back.  The product used for food will be of top quality as well as fresh. Further emphasis will be made on hygiene as the organization is concerned towards the health of customers.  All the customers will be treated in an equal manner and products will be provided at fair prices.

The main objectives for the business are –

Customer Satisfaction – The utmost important objective of the company is customer satisfaction. The reason behind same is that business can make a profit only in case the customer is satisfied with the service and taste of a restaurant. In order to attain the same  best training to staff will be provided.

Profit – The main objective of Roof Top Café is to make a profit. As one entity can move forward and operate is a function with a smoothness only when it is running a profitable business.

Pricing Policies –The third main objective is to provide the product at appropriate rates in the menu to satisfy the target market.

The quality of management will be build up by supervising them on a regular basis in order to assess that whether they are operating efficiently or not. Proper training will be provided by employees according to their type of work so that they can perform effectively. Changes will be made with according to the current trends of market and requirements of consumers.

An appropriate information system will be developed in order to conduct all the operations in a smooth manner in the following way:

ACTIVITY	DESCRIPTION	MANAGED BY
Generating information sharing system	The largest cost of elevated worker turnover rate is thrashing of vital information(Petty et al., 2015). Information sharing system assists in evading that expense to a significant extent. It will also provide great assistance to employees who are new to the organization. We can have a mentorship program, uniting qualified workers with those who are recently appointed. A teaching program template will be developed, which they must pursue, providing them with sufficient space so as to analyze their own training techniques. Further, a timeframe, a range of goals of the company will be provided to them,and they will be allowed for making a connection on their own. All these measures will assist in enhancing the efficiency of employees.	Chief Executive Officer
Persuade information sharing in an innovative manner	Senior executives are oftentimes remote with their own venture and their own room; they have no information what the rest of the organization is undertaking (Moutinho, and Phillips, 2018).  In order to reduce the threats of turning in uninteresting, compulsory two-hour conference, make it enjoyable and innovative. For instance, this month’s name is Mafia movies,and the trade panel makes a decision to present its modernized in a Godfather-like way. It is essential for every organization to keep in mind that innovation is very significant for them.	Manager
Creating faith in organizational leadership	It is stated by Nagle and Müller (2017), that, employees expect lucidity and sincerity from leaders. Regrettably, companies leaders keep on continue to face matters of faith. An attempt will be made by Roof Top Café management that employees are able to have faith in the decision of managers.As in case directors extricate or decline to allocate their own partial learning journeys how they can imagine their people to follow their passionately? It’s the old saying of lead by exemplary. If managers desire workers to connect in learning and enhancement, then they necessitate demonstrating that they are vigorously practising their own individual learning journeys too. Thus, attempts will be made to develop trust for managers as well as other senior executives.	Chief Financial Officer

Sustainability Plan

Key objectives & financial review

The main objective of the Rooftop cafe is to increase the percentage of sales by 10% every year and to finance the growth fundamentally from cash flow. It will assure that the food inventory turnover continues at approximately four turns per month and the risk rate of spoilage is decreased to a significant extent.

• Appropriate growth is assumed in sales.
• The assumption has been made that slow-growth will exist in the economy without a major recession.
• Unforeseen changes are assumed in technology in order to make a decision relating to equipment.
• Equity capital and financing is assumed sufficient for operating business in a smooth manner as provided in the tables.

For initiating the café, the owner will require approximately $350,000. Both the partners will provide total funds of $ 250,000, in equal proportionate.  Further, the remaining quantum of funds, i.e. $100,000 is borrowed from the bank on interest, and in case any other amount will be required than same will be financed from friends and family. Also looking for investors who are happy to invest in the business to grow fast and do a successful business.

Startup expenses
Insurance premiums	$4800
Beginning inventory	$6000
Legal and accounting fees	$
Rent deposits	3075
Utility deposits	$-
Supplies	$5000
Advertising and promotions	$4000
Licenses	$10000
Other initial costs	$8000
Working capital
Total start-up expenses	$40875
Start-up assets
Real estate
Buildings
Lease improvements	$71725
Utensils	$10000
Furniture and fixture	$20000
Vehicles	$10000
Total startup access	$111725
Total required tostart-up costs	152,600

Balance Sheet	Year 1	Year 2	Year 3
Particular
Assets
Lease improvements	71725.00	80000.00	80000.00
Equipment	10000.00	15000.00	25000.00
Furniture and fixtures	20000.00	25000.00	30000.00
Vehicles	10000.00	10000.00	25000.00
Cash	39689.00	50000.00	65000.00
Bank	200000.00	300000.00	450000.00
Stock	25000.00	30000.00	35000.00
Debtors	745584.00	590640.00	302820.00
Total Assets	1121998.00	1100640.00	1012820.00
Liabilities and Equity
Liabilities
Loan	100000.00	100000.00	85000.00
Creditors	45000.00	55000.00	65000.00
Total	145000.00	155000.00	150000.00
Equity	250000.00	250000.00	350000.00
Profit and Loss A/c	726998.00	695640.00	512820.00
Total	976998.00	945640.00	862820.00
Equity & Liabilities	1121998.00	1100640.00	1012820.00

Profit and loss forecast	Year 1	Year 2	Year 3
Sales
Cost of goods sold	$1920,326	$1820,726	$1624,820
Gross profit	$1920,326	$1820,726	$1624,820
Expenses
Accounting fee	$1200	$1250	$1300
Advertising fee	$10050	$10000	$9000
Bank fee	$2650	$2250	$2000
Bank interest	$12000	–	–
Credit card fee	$2400	$2500	$2600
Utilities	$83500	$80000	$78000
Telephone	$3150	$3400	$3500
Loan payments	–	–	–
Rent	$71736	$72736	$72900
Vehicle expenses	$7600	$7900	$8000
Stationary	$1600	$1650	$1600
Insurance	$4800	$5000	$5000
Superannuation	$19682	$19800	$19900
Income tax	$349653	$300000	$289600
Wages	$374200	$380000	$380900
purchases	$224900	$225900	$226900
Solicitors fee	$2600	$2700	$2800
Maintenance	$11600	$10000	$8000
more
Total expenses	$1193328	$1125086	$1112000
Net profit	$726998	$695640	$512820

MONTH	JAN	FEB	MARCH	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC
Cash incoming	$184,000	$148,600	$170,190	$160,650	$188046	$180900	$256680	$171585	$176850	$178560	$178200	$97650
Sale	–	–	–	–	–	–	–	–	–	–	–	–
Asset sale	–	–	–	–	–	–	–	–	–	–	–	–
Debt	–	–	–	–	–	–	–	–	–	–	–	–
Other income	–	–	–	–	–	–	–	–	–	–	–	–
Total income	$184,000	$148,600	$170,190	$160,650	$188046	$180900	$256680	$171585	$176850	$178560	$178200	$97650
Cash outgoing
Purchases	$20000	$1500	$17000	$18000	$20500	$21000	$25000	$17500	$18000	$19000	$18900	$15000
Accountant fee	$100	$100	$100	$100	$100	$100	$1000	$1000	$1000	$100	$100	$100
Solicitor fee	$250	$250	$200	$200	$200	$200	$200	$250	$300	$200	$200	$150
Advertising	$1000	$800	$900	$800	$800	$850	$900	$800	$900	$100	$800	$500
Bank fee	$250	$200	$200	$250	$250	$200	$200	$200	$250	$200	$250	$200
Interest paid	$1000	$1000	$1000	$1000	$1000	$1000	$1000	$1000	$1000	$1000	$1000	$100
Credit card fee	$250	$200	$200	$100	$150	$200	$250	$200	$250	$2000	$2000	$250
Utilities	$7500	$6500	$6000	$7000	$7500	$6500	$7000	$6500	$7500	$8000	$7000	$6500
Telephone	$300	$200	$200	$350	$300	$300	$250	$200	$300	$250	$300	$200
Loan payments	–	–	–	–	–	–	–	–	–	–	–	–
Rent	$5978	$5978	$5978	$5978	$5978	$5978	$5978	$5978	$5978	$5978	$5978	$5978
Vehicle expenses	$600	$500	$650	$700	$700	$600	$650	$600	$700	$600	$650	$650
Maintenance	$2500	$1500	$1000	$800	$1000	$800	$700	$1000	$800	$700	$800	$500
Stationary	$150	$100	$150	$100	$150	$100	$150	$250	$150	$100	$150	$100
Membership fee	–	–	–	–	–	–	–	–	–	–	–	–
Licensing	$833	$833	$833	$833	$833	$833	$833	$833	$833	$833	$833	$833
Insurance	$400	$400	$400	$400	$400	$400	$400	$400	$400	$400	$400	$400
Superannuation	$1500	$1576	$1586	$1597	$1600	$1650	$1700	$1800	$1500	$2576	$1597	$1000
Income tax	$31303	$28800	$30000	$29800	$32000	$29000	$35000	$27600	$27800	$27950	$27900	$22500
Wages	$30000	$31000	$31580	$32580	$32600	$3000	$31000	$31580	$32600	$30000	$31260	$30000
More
Total outgoing	$103914	$94988	$114927	$100588	$106061	$116071	$128706	$98726	$99276	$99587	$99697	$57961
Monthly cash balance	$80226	$53692	$55263	$60062	$81985	$64829	$127974	$72859	$77574	$78973	$78503	$39689
Closing balance	$80226	$53692	$55263	$60062	$81985	$64829	$127974	$72859	$77574	$78973	$78503	$39689

Statement presenting   fixed cost of Roof Top Cafe
			(Amount in $)
Particular	Year 1	Year 2	Year 3
Rent	71736	72736	72900
Wages and Salaries	374200	380000	380900
Insurance	4800	5000	5000
Other Fixed Expenses	5000	5000	5000
Total Fixed Expenses	455736.00	462736.00	463800.00

(Amount in $)

Particular	Year 1	Year 2	Year 3
Contribution	1920326	1820726	1624820
Sales	3000000	4500000	5000000
Contribution Margin	64.01%	40.46%	32.50%
(Total Contribution / Sales)(Noreen,Brewer and Garrison, 2014)

Break Even Sales
Particular	Year 1	Year 2	Year 3
Break Even Sales	711966.614	1143671.261	1427235.017
(Total Fixed Cost /Contribution %) (Marti and Scherer, 2016)

Above sales represent the figure which is required to attain by café in order to sustain in no loss and no profit zone. Thus, the specified quantum of sales is necessarily required to be maintained by the café.

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