The present study is based on the evaluation of business plan of Eco STAN by considering financial as well as non-financial factors. Business plan for the restaurant will be developed in well-structured manner by showing its viability in terms of profitability and operational efficiency.
The Eco STAN opportunity lies in creating friendly products and providing experiences on the basis of learning gained through real experiences and school. The business aims to make a contribution towards raising customer awareness, conducting environment-friendly practices and sustainable business. Further, this will create a positive impact on the interpretation and relationship with their offered real food while contributing towards the enthusiasm of regional food community. In order to maintain this, they make use of the regional product and raw material from their own production, with proper recycling. It is considered that none of the restaurants is completely sustainable or organic, but the company in this pathway is not considering itself self-satisfied, they just want to make more sustainable and environmental decisions in the hospitality industry. They concentrate on providing care and special feeling to customers; the company is more focused on actions rather than words. The restaurant based on eco-friendliness will be all about creating sustainable interior design and décor, with considering green spaces by using sustainable materials and techniques which will be less hazardous to the environment and individual’s health.
The restaurant delivers lunch menu and options of taking away from the time period of 12- 3pm and serves the a-la-carte menu till late at night. The restaurant provides dining with a total of 80 seats, with fast delivered lunch menu for officers.
Target Market
The target market of the Eco STAN restaurant will be primarily office people. The location wherein the business will operate as a bulk number of offices around, and the individuals working eat junk food for lunch. The reason behind selecting the area is availability of targeted customer in significant manner. As the customer will be available most of the time, organization will require to make attempt to attract toward themselves.Thus, the restaurant has selected the best of location and target market, while considering the best concept of being sustainable and eco-friendly, which is not considered by any of the restaurant present at that location(Nickerson, Jorgenson and Boley, 2016). Hence, the target market would be office people, regional people, families, tourists and people who are willing to have a new experience in food trend.
The restaurant will start serving itsServices and products from:
11:00am-3:00pm
6:00pm-10:30pm
For starting the restaurant in the given location, the restaurant will initially be required to acquire a business licence which provides them with permission to do legal operations within the particular authority. The restaurant will need this licence is they run a business that delivers food like a restaurant,andtheyintend to provide alcohol. For building the licence, the major business activity should be the meal serving and food preparation for the consumption of the building. It is also important to have a permit of food handler; a significant legal obligation of a new restaurant is not a particular license, but a permit(Jones, Magnusson, Swinburn, Webster, Wood, Sacks and Neal, 2016). If the restaurant intents to play music in their establishment, then they will be required to have a music license to play copyright music.
The USP (Unique selling point) of the restaurant will be its variety of food options from and the restaurant will serve the same at its best. Along with this, the restaurant will offer special offers, coupons and discounts to attract the customer. The restaurant will differentiate itself from competitors by its decoration, which will be inclusive of exceptional interior, soothing ambience and a beautiful small garden(Namkung and Jang, 2017). The restaurant will best differentiate itself by maintaining the sustainability aspectand comply with terms and norms.The restaurant will take the best suitable sustainability aspects into account and make optimum utilization of all available resources(Iraldo, Testa, Lanziniand Battaglia, 2017). The restaurant will serve the finest and freshest quality ingredientsby recruiting the best professional staff and chef to offer the first class customer experience. The competitor differentiated strategy by restaurant would be ensured through the taste quality of offerings by the restaurant. It is essential for the restaurant to differentiate itself through efficient customer service; which will be quick and good. In addition, the customer will be asked to provide feedback and reviews on the services to know the improvement area(Perramon, del Mar Alonso-Almeida, Llachand Bagur-Femenías, 2014). Due to the aspect that, in the selected location there is no restaurant offering the concept of sustainable and green factors, this will act as a great benefit for the restaurant to earn competitive edge, as there is also growing demand for sustainable and healthy foods.
Below is provided with the structure of the organization and the mandatory skills required by the restaurant:
For the ground staff: the restaurant will require better teamwork, RSA card and effective customer service. Thus, preference will be given to experienced employees in order to provide hygienic environment.
For the kitchen staff: the restaurant will require viable cookery certificate, knowledge regarding hospitality and restaurant sector, food safety certificate and teamwork(Tracey, Hinkin, Tran, Emigh, Kingra, Taylor and Thorek, 2015). Further, chefs will be recruited on the basis of their knowledge relating to community food so that they could provide the original flavours which is the base of taste provided to customers.
Management Staff: Manager and other executive staff will be recruited for management of operations. Further, appropriate training will be provided so that they can manage the operation with smoothness and attain the pre-determined objectives.
Provided in the above picture, the proposed restaurant will consider the Eco concept. Further, the décor of the restaurant will be totally based on simplicity and elegance. Most of the interior, facilities and décor items will be made of wood. The restaurant will make use of greenery in every aspect such as small pots of herbs. In addition, the restaurant will also make use of paper materials like taking away or delivery box, cup and tissues(Lloret, A2016). The restaurant will choose the most simple, eco-friendly décor and themes which will consist the natural lightning, the concept of reducing, reuse and recycle, hazard-free materials, plants and eco-packaging.
The location wherein it is planned to open a restaurant which is Waterloo, it is a very renowned place,and the reason of selecting this place is that there is the presence of many offices, and the main target market of the restaurant is also officers and office individuals. Prior to starting the business, it is highly crucial to conduct a feasibility analysis and study, by this restaurant will consider its competitors while allowing the business to know its targeted markets by the operations conducted in the concerned location.
After conducting the market research, it is held by the restaurant that majority of the office people are working across Waterloo, and they prefer eating fast food for long and in the same location there no presence of an eco-friendly and sustainable restaurant, being a great opportunity for Eco STAN. It is realized by the restaurant that office employees do not hesitate in spending money and making the better investment to have a good and healthy meal. In addition, it is also found by a restaurant that office group is willing to have a healthy and nice meal,and they are eager to lose weight and skip to healthy options(Lo, King and Mackenzie, 2017). The location of the restaurant is near to the station, and it is an extremely significant aspect to consider before starting a restaurant. The restaurant’s location will be far from the walking distance, and this an easy and convenient locationfor the customers. Waterloo is present at the core of the city, which converts the restaurant the best place for all type for diners.
Maintaining sustainability by restaurant means a lot, and also a proper planning process s required to maintain the same. This helps in protecting, preserving and restoring the natural environment, while helps in promoting social equity and improvise individual and community life, thereby contributing to economic wealth for stakeholders as well as shareholders. Further, sustainability can also create a key impact on internal as well as external factors by assisting in hiring top talent, increasing employee involvement and reducing turnover(Guo, Chen, Long, Luand Long, 2017). In terms of restaurant, the sustainable practices are very beneficial for the bottom line of business by making a reduction in operating costs too. The restaurant will make appropriate planning on reducing the impact of business on the environment as much as possible by means of reducing waste and saving costs. The presently proposedrestaurant has many opportunities for cost savings by optimal updates in energy efficiencies and making use of renewable energy investments. The restaurant will plan and practice water efficiency, conservation reduces waste and has severe policies on recycling (Jang, Zheng and Bosselman, 2017). The planning structure of the restaurant will also be inclusive of sustainable interior décor, use of energy efficiency, reduction of pollution and going clean green.
The planning process of sustainability will also cover moving toward the zero waste, by decreasing solid waste, and particularly food waste which will be the main opportunity for the restaurant to save costs and promote the public perspective and relationship with society (Martin, 2018). This process will also create an affirmative impact on the supply chain of restaurant. Also, the planning includes purchasing food products and raw materials from local sellers, in bulk. Another significant sustainability aspect for the restaurant is the impact around the whole value chain and the food products type they are buying and delivering to customers (Bristow and Jenkins, 2018). Since, the restaurant proposes to grow vegetables on their own in their garden, which is a great initiative for them to ensure sustainability, fresh and quality food.
|
Key Partners 5 |
Key Activities 6 |
Value Propositions 2 |
Customer Relationship 3 |
Customer Segment 1 |
|
· Staff responsible for availability of raw materials and other products. · Chief Executives. · Chefs. |
· Assuring availability of organic products for preparation of food. · Assuring the availability of original taste of flavours in served dishes. · No usage of hazardous material in any manner. · Application of eco-friendly products in all prospects. |
· Customers (availability of food with organic flavours and providing a feel to be part of eco-friendly organization). · Cook (recognized for the attempt of being eco-friendly and earning appropriate returns.) · Employees (earn money and develop eco-friendly environment) |
· Customer Feedback · Reviews · Brand Image · Availability of organic flavours provided by food community. · Amendments in menu by Chef who have been serving food on a continue basis. |
· Customer who prefer for special dishes. · Customers who prefer food packaging and home deliveries. · People who are interested in having outside dinner rather than home food. |
|
Key Resources 8 |
Channels 4 |
|||
|
· Equity Capital and Bank Loan · Delivery Platform · Kitchen. · Chefs. |
· Social Media · Customer Support · Social Networks |
|||
|
Cost Structure 9 |
Revenue Streams 7 |
|||
|
· Kitchen set up and operating cost. · Décor and other furniture set up cost. · Management Expenses (Salaries and other payments). · Expenses of procuring raw materials |
· Income from sale of food. · Organizing small parties and gatherings. |
Eco Stan will operate six days a week that is from Monday to Saturday with the capacity of 50 people.
Start Up Cost
|
Particular |
Amount |
|
Rent and Advance |
$20000 |
|
Kitchen and Set Up |
$15000 |
|
Décor and other furniture |
$10000 |
|
Other management expenses |
$5000 |
Income of $50 is expected from one customer. Further menu will be reorganized as per the change in trend and taste of customers.
|
Year 1 |
Year 2 |
year 3 |
|
|
Total turnover |
$864,000.00 |
$950,400.00 |
$1,045,440.00 |
|
Total expenses |
$566,400.00 |
$538,080.00 |
$511,176.00 |
|
Net income |
$297,600.00 |
$412,320.00 |
$534,264.00 |
A 50$ income is expected from individual customer. However, menu will be reorganized on the basis of analysis of taste of customers and changes in trend.
With the increasing popularity turnover will be increased by 10% and with increasing efficiency expenses will be reduced by 5% on an annual basis.
|
Year 1 |
Year 2 |
year 3 |
|
|
Cash |
$122,600.00 |
$265,820.00 |
$437,389.00 |
|
Inventory |
$3,000.00 |
$6,500.00 |
$13,000.00 |
|
Debtors |
$11,000.00 |
$17,000.00 |
$20,000.00 |
|
Furniture |
$100,000.00 |
$80,000.00 |
$60,000.00 |
|
Machineries |
$125,000.00 |
$120,000.00 |
$116,000.00 |
|
Total assets |
$361,600.00 |
$489,320.00 |
$646,389.00 |
|
Bank loan |
$40,000.00 |
$30,000.00 |
$20,000.00 |
|
Creditors |
$14,000.00 |
$16,500.00 |
$20,000.00 |
|
Total Liabilities |
$54,000.00 |
$46,500.00 |
$40,000.00 |
|
Capital |
$10,000.00 |
$30,500.00 |
$72,125.00 |
|
Profit |
$297,600.00 |
$412,320.00 |
$534,264.00 |
|
Total Equity |
$307,600.00 |
$442,820.00 |
$606,389.00 |
|
Total liability and equity |
$361,600.00 |
$489,320.00 |
$646,389.00 |
|
Formula |
Workings |
Amount |
|
|
Sales prices |
$50.00 |
||
|
Less: Variable cost |
($16.00) |
||
|
Contribution margin |
$34.00 |
||
|
Fixed cost |
$398400 |
||
|
Breakeven in units |
Fixed cost/ Variable cost per unit |
$398400/14 |
11717 customers |
BuyEcoGreen – Building 5, Suite 5.03, 83 Edith ST PETERS NSW 2044
Eco at Home – 507 Willoughby Road, Sydney
Hospitality Products – QLD
Sydney Timber Supplier – Newtown, Paddington, Sydney CBD, Ultimo, and etc
Foodbyus- Suite 604, 46 Kippax Street, Surry Hills, NSW 2010
Carriageworks – 245 Wilson St Eveleigh (cnr. Codrington St), Redfern NSW 2016
Beverage Supplier
Other Recycling organization
Organization providing eco-friendly products
Product Suppliers
The floor plan of the proposed restaurant will cover a total of 60 seats (100covers for lunch, 70 covers for dinner) and the external interior will cover a small garden, maintained by the restaurant itself. The concept of the restaurant will be completely based on green spaces, which will primarily make use of sustainable materials and tools that provide less damage to one’s health and thenearby surroundings. The restaurant concept lies in providing the best serving styles and will maintain the eye-catching green and soothing décor and ambience.
Conclusion
By considering the present study conclusion can be drawn that developed business plan is viable in terms of financial as well as non-financial factors. Further, by considering the cited strategies business will be able to generate growing returns over the years. Further, the idea applied by the organization relating to application of eco-friendly products and serving organic flavours is acceptable in present scenario to significant extent which enhances the chances of being successful and well as sustain for longer period.
References
Bristow, R.S. and Jenkins, I. (2018). Restaurant assessment of local food and the Global Sustainable Tourism criteria. European Journal of Tourism Research: Volume 18, Year of publication: 2018, 18, pp.120-132.
Guo, D., Chen, H., Long, R., Lu, H. and Long, Q. (2017). A co-word analysis of organizational constraints for maintaining sustainability. Sustainability, 9(10), p.1928.
Iraldo, F., Testa, F., Lanzini, P. and Battaglia, M. (2017). Greening competitiveness for hotels and restaurants. Journal of Small Business and Enterprise Development, 24(3), pp.607-628.
Jang, Y.J., Zheng, T. and Bosselman, R. (2017). Top managers’ environmental values, leadership, and stakeholder engagement in promoting environmental sustainability in the restaurant industry. International Journal of Hospitality Management, 63, pp.101-111.
Jones, A., Magnusson, R., Swinburn, B., Webster, J., Wood, A., Sacks, G. and Neal, B. (2016). Designing a healthy food partnership: lessons from the Australian food and health dialogue. BMC public health, 16(1), p.651.
Lloret, A. (2016). Modeling corporate sustainability strategy. Journal of Business Research, 69(2), pp.418-425.
Lo, A., King, B. and Mackenzie, M. (2017). Restaurant Customers’ Attitude toward Sustainability and Nutritional Menu Labels. Journal of Hospitality Marketing & Management, 26(8), pp.846-867.
Martin, K.B., 2018. Strategies for Sustainability of Nonfranchise Casual Dining Restaurants.
Namkung, Y. and Jang, S. (2017). Are consumers willing to pay more for green practices at restaurants?. Journal of Hospitality & Tourism Research, 41(3), pp.329-356.
Nickerson, N.P., Jorgenson, J. and Boley, B.B. (2016). Are sustainable tourists a higher spending market?. Tourism Management, 54, pp.170-177.
Perramon, J., del Mar Alonso-Almeida, M., Llach, J. and Bagur-Femenías, L. (2014). Green practices in restaurants: Impact on firm performance. Operations Management Research, 7(1-2), pp.2-12.
Tracey, J.B., Hinkin, T.R., Tran, T.L.B., Emigh, T., Kingra, M., Taylor, J. and Thorek, D. (2015). A field study of new employee training programs: industry practices and strategic insights. Cornell Hospitality Quarterly, 56(4), pp.345-354.
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