Food And Beverage Management Business Environment: Planning, Concept, SWOT Analysis

Designing the Concept and Theme of the New Restaurant

Question:

Discuss About The Food And Beverage Management Business Environment?

A thorough and careful planning is necessary before establishing a food service business in the competitive business environment. The business plan that has been presented has been designed with the intention to open a new restaurant in the metropolitan area of Auckland. The key areas have been covered in the plan so that the business can be feasible to establish and operate (Agius, 2015). The concept and theme of the new restaurant, a thorough SWOT analysis, sustainable business plan and financial model and service design has been incorporated in this business model.

Since the new restaurant would be located in the vaiduct area of Auckland with people from different cultural backgrounds, a multi-cultural theme would be adopted in the restaurant which could highlight the Kiwis’ culture. The style and design would basically showcase the friendly and welcoming attitude that is the unique element of the nation.This concept has been selected so that the customers could embrace the inviting environment in spite of the difference in ethnicity (Chen, et al., 2015).

The café model would be adopted in the restaurant so that the customers from all age groups could spend quality time in the soothing ambiance.The main focus would be on customers ranging between 18 years to 45 years since the location is always full of students as well as professionals (Davis, et al., 2013).

A bright and lively setting would be created in the restaurant so that the customers could enjoy their time in the restaurant. The design would be kept simple yet sophisticated so that all the detailed aspects of the interior decoration could be observed by a viewer. The best quality furnishing items would be used so that the comfort of customers is not compromised.

Twoof the outer walls of the restaurant would be made of glass so that the customers could get a clear view of the outside. In order to add a personal touch in the environment, the customers would be allowed to bring their personal coffee mugs so that they could be served in them (de Mattos, Pontes & Marietto, 2016)

In order to determine the feasibility of the new restaurant with the refreshing concept, a SWOT analysis has been conducted. The assessment of the strength, weakness, opportunity, threats would help to understand the position of the business in the competitive environment.

SWOT Analysis: A Tool to Determine the Feasibility of the New Restaurant

Strength –

The main differentiating factor of the restaurant would be its multi-cultural ambiance which would focus on positivity and happiness. The location of the place would enhance the visibility of the business in the marketing and thus it could become the new big thing in New Zealand’s restaurant industry (Domingo, 2017).

Weakness –

The main weakness is the humble financial back-up with which the business would be initiated. In the prevailing environment, the finding of right restaurant staff would be a challenge. The restaurant would have to establish a solid reputation as quickly as possible.

Opportunity –

The use of technology is limited in the business plan, but it could play a major role in future. The online presence of the business could open new profitability options for the restaurant business (Duru, Ekwe & Okpe, 2014).

Threat –

There would be threats in various forms including intense competition, government regulations to meet standard quality of food, turnover of the employees, change in taste of the customers, etc.

For the sustainable growth of the business, a regular analysis of the business environment would be necessary (Grekova, et al., 2014).

As per Mo & Chen, the majorareas that must be taken into consideration while devising a business plan includethe business scope, staffing function, marketing and promotion activities. Since there are a large number of entrepreneurs and firms that operate in the restaurant industry, the initial focus of the restaurant could be on offering light snacks like the sandwich, cookies, finger food, etc, and beverages like coffee, tea, juices, soda, cocktails, etc. (Mo & Chen, 2016). The high quality of offering and environment would help to create a strong brand name in the industry. With popularity, it could expand its scope of operations.

The staffing function is a crucial activity since the restaurant staff would directly interact with the customers. The basic educational background, prior experience in the field and personality assessment would play a key role to select right people for the job. Initially, around 10 people could be recruited excluding the cook and the receptionist based on their skills. The number could increase with time (National Restaurant Association. 2016).

The marketing budget would be an integral part of the restaurant plan that would ascertain the business scope and its operations. The budget would be designed after taking into account the advertising, food, beverages, supplies and miscellaneous.The business would be initiated with $ 100,000 to $ 1,20,000. The excel software would be used to handle income and expenses but with time an accounting software would be incorporated into the business model (Silva & Perera, 2016).

Business Scope and Staffing Function

The proper management of the financial aspects of a new business has vital implicationsfor the firm and its existence in the market. The start-up costs of the business would be quite high since a major chunk of money would be spent on the promotional activities, hiring of staff, purchasing of necessary supplies from best suppliers, etc.

Since the restaurant would start from a scratch, various financial hurdles would appear in the path of the business. According to Suli, a significant amount of financial resource would be used for the purchaseof licenses and permits, insurance expenditure, remuneration design of the restaurant staff, purchase of kitchen equipment, furniture costs, and the working capital (Suli, 2016). The annual running cost would also pose challenges at the initial business stage until the restaurant would create a solid brand image.

Start-up Expenses
Legal requirements	$ 10,000
Kitchen equipments	$ 20000
Safety equipments	$ 15,000
Rent advance	$ 20,000
Insurance	$ 10,000
Stationery items	$ 5,000
Decorative items	$ 10,000
Advertising costs	$ 10,000
Brochure	$ 5,000
Cash required	$ 7,000
Others	$ 8,000
Total start-up Expenses	$ 120000
Annual Cost of Running Restaurant Business
Stationery	$40000
Annual treatment of Water and Equipment	$10000
Updating of hazard prevention tools	$2000
Advertising and promotion	$20000
Annual Rent	$80000
Remuneration	$60000
Total	$222000

Choosing the right financing options can help the restaurant business to tackle challenging market conditions and have a sustaining performance.

Owner’s capital –

The restaurant owner could put his personal money into the business if he has the financial backing. This is considered to be a good option only when there is sufficient financial resource available to the entrepreneur. This is not very practical since in case the business fails, the owner would be in a poor financial state (Valta, et al., 2015).

Traditional small business loan –

The acquiring of loan for the new restaurant business would be a smart move. The money could be used for any activity relating to the business. A strong credit score would assist the business to acquire the financial support.

Crowd-funding –

This innovative financial option could be used to establish the restaurant business. This model would use the internet to collect significant amount of finance from a large pool of people. It would also help in the promotion of the new business.

In the initial stage, the food and beverages that would be offered in the restaurant would be kept simple and light. The items would basically comprise of food items like sandwiches, fish and chips, cookies and pastries, finger food, candies, and beverages like coffee, tea, cocktails, etc. The menu has been designed keeping in mind the current ambiance of the restaurant.

The bright and open environment would be complimented by the light and healthy food that would be offered in the restaurant. Gradually the menu would expand based on the feedback of the customers (Duru, Ekwe & Okpe, 2014).

Restaurant Menu
Food	Price	Beverages	Price
Egg salad	xxx	Espresso	xxx
Simple veg Sandwich	xxx	Cappuccino	xxx
Ham Sandwich	xxx	Caffè Latte	xxx
Plain pork Sandwich	xxx	Americano	xxx
Clam roll	xxx	Fresh-squeezed orange juice	xxx
Sweet potato bites	xxx	Apple juice	xxx
Caprese salad	xxx	Cranberry juice	xxx
Pickle chips	xxx	Strawberry juice	xxx
Gingered nuts	xxx	Kiwi Strawberry juice	xxx
Chocolate Chip Cookies	xxx	Lemon tea	xxx
Ginger Cookies	xxx	Herbal Tea	xxx
Oatmeal Cookies	xxx	Green Tea	xxx
Candies	xxx	Limeade Punch	xxx
Vegan pastries	xxx	Cherry Cocktail	xxx
Fish & Chips	xxx	Watermelon Cooler	xxx

Marketing Budget: An Integral Part of the Restaurant Plan

The dining facilities of the restaurant would be kept a bit open so that all the customers would have a sense of privacy. The restaurant layout would include the entrance area, the dining section, restrooms, and a tiny outdoor coffee section. Fresh plants would be decorated in front of the restaurant to create soften the hustle and bustle of outside environment.  The other facilities in the restaurant would include free Wifi internet, free secure parking, etc.The simple restaurant layout would help to highlight the small details of the restaurant such as paintings, decorative pots, and crafts (de Mattos, Pontes & Marietto, 2016).

A large kitchen would be designed so that the food preparation and serving process could be effectively carried out. The storage room would be situated right beside the kitchen for easy access to ingredients.

Since it would be a small start up initially, around 8 to 10 sitting arrangements would be made for the visitors in the inside section. There would be big kitchen section and adjacent to it a storage space would be set. There would be 3 restrooms. There would be separate beverage counter where people could stand and enjoy the outside view. The reception area would be spacious so that the guests could be entertained.

Significant importance would be given to the health and safety aspects while opening the restaurant business. As per Davis, et al, the best quality supplies would be procured so that the customers could enjoy the real worth of their money. The staff members would be educated on updated kitchen safety awareness so that the hygiene of the food and beverages would never be compromised (Davis, et al., 2013).

Understanding the hazards is crucial to prevent any occurrence of accidents. The fire extinguisher equipment would be located near the kitchen so that it could be used in case of fire. A bell would be located in the dining section so that during emergency situations it could be used. The restaurant would have two exit points for easy evacuation purpose.

The diagram below shows that the kitchen model would be aligned with the hazard control model. Any malfunction of the numbered equipments would send a signal to the reception area so that necessary intervention techniques could be adopted to prevent any accidental incidents.

The safety area would be directly linked to the alarm model of the restaurant. It would contain fire extinguishers, masks, first-aid kits, manuals, etc which could be used at the time of emergency. The kitchen would also be equipped with fire extinguishers to put out fire.

Financial Implication of a New Business: Start-up Expenses and Annual Operating Costs

Conclusion

The proper planning of restaurant business is crucial since it has a direct relationship with its success or failure. All the vital areas relating to the business operations and financial aspects have been designed after taking into account the current business environment. The quality of the service, food, and ambiance would play a vital role to create a unique brand name for the business and it would help to expand its presence in Auckland.

References

Agius, R. (2015). Credit management in the Maltese food and beverage distribution industry: an analysis (Master’s thesis, University of Malta).

Chen, E., Flint, S., Perry, P., Perry, M., & Lau, R. (2015). Implementation of non-regulatory food safety management schemes in New Zealand: A survey of the food and beverage industry. Food control, 47, 569-576.

Davis, B., Lockwood, A., Pantelidis, I., & Alcott, P. (2013). Food and beverage management. Routledge.

de Mattos, C. E., Pontes, M. D. M., & Marietto, M. L. (2016). Food and beverage management: indicators for a new field of studies in Brazil. PODIUM: Sport, Leisure and Tourism Review, 5(2), 99-119.

Domingo, D. A. (2017). student expectations of food and beverage management education.

Duru, A. N., Ekwe, M. C., & Okpe, I. I. (2014). Accounts receivable management and corporate performance of companies in the food & beverage industry: evidence from Nigeria. European Journal of Accounting Auditing and Finance Research, 2(10), 34-47.

Grekova, K., Bremmers, H. J., Trienekens, J. H., Kemp, R. G. M., & Omta, S. W. F. (2014). Extending environmental management beyond the firm boundaries: An empirical study of Dutch food and beverage firms. International Journal of Production Economics, 152, 174-187.

Mo, H. E., & Chen, N. Y. (2016). A Study of Learning Motivation and Hindering of Getting Licenses for Vocational High School Students of Food and Beverage Management Department in Taiwan. Applied Science and Management Research, 3(1), 217-224.

National Restaurant Association. (2016). Managefirst+ Exam Prep Access Card: Principles of Food and Beverage Management with Online Test… Voucher. Prentice Hall.

Silva, A. M. P. K., & Perera, H. A. P. L. (2016). Effect of Working Capital Management on the Performance of Listed Food Beverage Companies in Sri Lanka.

Suli, X. I. E. (2016). On the Application of Problem Driven Method in the” Food and Beverage Management” Course. The Guide of Science & Education, 1, 046.

Valta, K., Kosanovic, T., Malamis, D., Moustakas, K., & Loizidou, M. (2015). Overview of water usage and wastewater management in the food and beverage industry. Desalination and Water Treatment, 53(12), 3335-3347.