A business plan is considered as one of the essential strategic tools for the entrepreneur. An effective business plan, not just support entrepreneurs in focusing towards precise steps essential to make the idea succeed, but besides this, it also supports them in attaining long-term as well as short-term objectives (Messmer, 2015). The intent of this report is to present a successful business plan of Fast food restaurant by providing detail information of the business along with its financial requirements. The report will be comprised of marketing and sales information, financial feasibility of the business, operational plan, and action plan.
The key precedence of this business plan is to introduce a single outlet in a busy mall, preferably in one of protruding Singapore’s shopping malls. Later, the efforts of the business will be focused towards developing more outlets of retailing in the nearby place. This business plan is created to attain a location for the early introduction of this concept. Fast Frites will majorly target youngsters to take their relatives and friends in the innovative environment, to tastes delicious Belgian fries, and an assortment of exclusive signature dipping sauces.
Fast Frites will be focused towards vending gourmet fries in a cone with a different variety of sauces. The business makes use of the concept of Belgian Fries in which the fries are cooked with fresh potatoes and are fried two times. The business outlet also offers friendly and excellent services to the customers to support the atmosphere of fun, youthful, and energetic lifestyle.
The business will reproduce effective creations, like Starbucks and Jamba Juice, which are focused towards presenting most of the key target market that is between the age group of 18 to 35 years. The store will represent display cooking of its presented Belgian Fries firm cutting to frying. The customers of the business will be able to read the in-house brochures in order to gain knowledge regarding Belgian Fries and sauces. The store will be presentable with decent decoration with the setting of fast food, like the display menu, and bright counter.
Furthermore, the business will concentrate on selling fries. Alcoholic drinks will be not allowed within the premises as Fast frites encourage positive and healthy Singaporean lifestyle. In its place, the business will provide Italian Soda to pair the fries. Besides this in the future, business is planning to offer value meal to the customers and allow private parties.
Grand Opening
The business has planned a grand opening for its creative fast food outlet in order to attract more and more customers.
In Store Marketing
In this concept, business has planned to allow customers to read in-store brochures containing the detailed concept of the business and philosophy. Besides this, it will make use of wall posters, party catering, in-store presentation of cooking fries, etc.
Local Store Marketing
In this business will print brochures to present itself in front of its customers and will offer free special t-shirts in the event at the local stores.
Local Media
Business will make use of a web page that will be comprised of philosophy, news, and history. Local magazines will be used to target key consumers. Besides this, the business will promote its services by placing huge advertisements in the Newspaper throughout the month in order to brief about the business concept.
Same as restaurants offering full-service, fast food restaurants are facing some of the operational challenges in terms of high labor costs, and rents, though, unlike full-service diners, fast food restaurants are able to answer and familiarize to these increasing challenges. In part, because of the nature of the business, the industry of fast food, restaurants of fast food introduce frequent campaigns and possess lower prices, which makes them attracting options for the customers particularly at the time of economic downturn.
Restaurants of fast food have been very eager and quick to invest in the advanced technologies in order to enhance working competence and decrease the dependence on labor, which is a traditional key driver of cost in their business operations. Advanced technologies have gradually been executed in numerous outlets with fast food brands.
The primary target market of Fast Frites is the young Singaporeans, Orchard Road is the best location considered to hang out and meet with friends. Because of dense extra-curricular actions among the youth of Singapore, it is very general for the high school students to avoid having food at home and go to shopping malls to have lunch. They incline to visit the fast food centers of the shopping malls across Orchard Road.
Furthermore, a second segment of the business is working Singaporeans. There are numerous shopping malls in Singapore but Orchard Road is considered as heaven for the job seekers and shoppers.
Finally, the Orchard Road is considered one of the key places where there are numerous numbers of tourists residing in the zone. The Crown Prince Hotel, the Hilton, Meritus Mandarin, is some of the famous Hotel with major accommodations in Singapore. Tourists in Singapore hunting for the latest fashion trend in Orchard Road, and possess no time to have a full-time meal while shopping. Fast Frites will provide a substitute for the quick bite at the time of shopping.
The distributor will distribute fresh potatoes every week directly from the United States. The business has an agreement with the Company A to prepare signature sauces, and entire merchandise will be produced and printed by the official partner in China.
The Sales strategy of the business is to open new places to increase profit and revenue of the business. However, this business plan will be executed at the time when the first tester in the market will reflect some growth. As every individual setting will endure shaping the native base of the consumer in the operations of first three years, the objective of every store is to reach around S$104,250 in terms of yearly sales, with the unique flagship store anticipated to get almost S$200,000 every year.
The key focus of the business plan in marketing will be to enhance the awareness of the customers in the surrounding society. The business will direct its programs and tactics towards the objective of briefing the idea of business and the offering of the restaurant. The price of the products will be set fairly in order to attract more and more customers in the market. Moreover, because has decided to majorly focus on word of mouth in order to spread the awareness of the restaurant.
Furthermore, the business will influence the visibility of the website of the shopping mall by influencing them to add the link to the fast food restaurant. Besides this, the business will post some of the banners on the official website of Singapore Tourism.
The satisfied customers do the best advertising of the business. The consumers like or dislike the products; they talk about it with other people. This creates word of mouth about the product or service consumed by the customer (Hudson, Roth and Hudson, 2015). Fast Frites will make use of word of mouth as its promotional strategy and key marketing force.
The initial team of management is grounded on the founders, with slight back up. With the development and growth of the business, it will take some help with the experts in the respective area. The business will not add extra overhead until necessary. This reflects that the initial staffs need to put their extra efforts.
Presently, Fast Frites will have four founders of the business. Other people who have put their efforts in the development of the business will be provided some opportunity in the growth of the business.
Mr. Jones will be accountable for business development and accounting at Fast Frites and Mr. Henry will be acting as a Human Resource Department head.
The initial workforce will be comprised of two cooks, and two cashiers, and all of them are obliged to be at the premises during the open hours. It is considered as an ideal personnel number for the outlet of fast food. All the employees need to work for 38-40 hours every week.
Financial feasibility is the level at which a program, project, strategy, or change in the business is financially attractive and possible. It is utilized in evaluating the likelihood and ability to finish a project effectively comprising all the pertinent factors. It should account for elements that influence it like technological, scheduling, economic, and legal factors. The managers of the entire project make use of a feasibility study to define possible positive and negative consequences of a project before investing a substantial amount of money and time into it (Daniilidis, Herber and Vermaas, 2014). (Refer to Appendix 1,2,3,4,5)
Sales Forecasting is the procedure for assessing forthcoming sales. Precise sales forecasts allow businesses to take well-versed business decisions and forecast long-term and short-term performance (Fan, Che and Chen, 2017). Businesses can ground their forecast based on past sales data, and economic trends. It is very simple for major businesses to forecast future sales depending on past data. Newly established businesses need to base their predictions on less-verified information, like competitive intelligence and market research.
Break-even analysis is the method broadly utilized by the management accountants, and production management (Cafferky, 2010). (Refer to Appendix 5)
Fast Frites majorly sells fries and exclusive dipping sauces. Key products sold are Italian sodas, corporate merchandise, and Belgian fries.
Belgian style Fries will be available in large quality, small quantity with extra garlic
The Fast frites will make use of quality potatoes in the production of fries because this it will make use of different spices to prepare sauces.
A value chain is a set of different activities that a business performs to make value for its consumers. Porter planned a general-purpose value chain that businesses can utilize to inspect all the activities and observe their connection with each other. The manner in which activities of the value chain are done regulates costs and touches profits, so this technique can support in understanding the value sources for the business (Business Jargons, 2018).
Primary activities are related to the sales, support, maintenance, and physical creation of the services or product (George, 2014). It is comprised of:
Inbound Logistics – The Fast frites will be producing fries in the store but its key partners considering the quality of all the products will prepare the sauces. The business will maintain strong and long-lasting relationships with its key partners as well as customers. Besides this, the business will offer to take away services also to its customers. Moreover, the manager of the business will be responsible to take account of all the product’s delivery in the store.
Operations – Operations are the activities of transformation that convert the input into the output to sell customers (Bhasin, 2017). The Fast Frites will prepare high-quality fries accompanied by sauces that will be prepared by its key partners. Besides this, the sauces will be prepared with different spices, and essential ingredients and fries will be prepared with quality potatoes.
Outbound Logistics – These activities distribute service and product to the end consumer. It is comprised of storage, distribution, and collection system, and they can be external or internal to the organization (MBA Skool, 2018). Here the Fast frites will be established in the market and will start offering services to different customers in the market such as school students, tourist, and working Singaporeans.
Marketing and Sales – Fast frites will promote its product with the help of diverse channels like a grand opening party, word of mouth, and online promotion. However, major priority will be provided to word of mouth as one of the promotional strategies to target and attract customers.
Service – The Fast Frites will offer the best services to its customers in the store such as welcome greetings. The business will also establish its customer service department in order to support to place orders with ease.
These activities provide the above-mentioned primary activities. In the diagram of the porter value chain, the dotted lines represent every support, or secondary, activity can perform a role in every primary activity (Jurevicius, 2013).
Procurement – At the initial stage, Fast fries will try to make contact with different suppliers of potato and different ingredients to prepare fries and sauces. Besides this, it will offer a range of vouchers in order to maintain effective relations with them.
Technology Development – The Fast Frites will implement different advanced technology to prepare fries and sauces. Besides this, in the future, the business will install the ERP system in order to maintain the information security and quick data transfer.
Human Resource Management – At Fast Frites, Mr. Henry is responsible to manage the human resource department and hire different staff members such as two cooks, and two cashiers.
Infrastructure – The Fast Frites will offer an atmosphere of fun, youthful, and energetic lifestyle that will be liked by most of the youngsters. Considering the organization structure, Fast Fries will be comprised of Mr. Jones who will be accountable for business development and accounting at Fast Frites and Mr. Henry will be acting as a Human Resource Department head.
For every business, whether it is small or large it is very essential to maintain the quality of the products in the market. If the business will not offer good quality products to its customers, it will affect the image and position of the business in the market (Kiran, 2016). In order to maintain the quality of the products, Fast Fries will select only those partners for the business that can offer good quality of potatoes and sauces. Moreover, the floor of the restaurant will be always kept neat and very clean. After every customer visit, the staff will clean all the tables.
An action plan is a paper that includes all the steps that must be considered to attain a particular objective. The drive of an action plan is to elucidate what assets are obligatory to attain the objective, frame a timeline for when precise jobs must be accomplished, and regulate what assets are essential. In project management, a well-planned action plan offers a blueprint for the managers of the project to achieve a big project (Orman, 2010).
|
Milestone |
Start Date |
End Date |
Budget |
Responsible Department |
|
Follow up with business plan developers |
1/1/2019 |
8/9/2019 |
$50 |
Business Development |
|
Presentation Material |
1/1/2019 |
12/3/2019 |
– |
Business Development |
|
Suppliers follow up |
20/1/2019 |
8/9/2019 |
$100 |
Business Development |
|
Communication |
19/2/2019 |
19/6/2019 |
– |
Marketing |
|
Materials of printing |
10/2/2019 |
9/4/2019 |
$800 |
Marketing department |
|
Construction |
20/5/2019 |
2/12/2019 |
– |
Business development department |
|
Recruitment |
15/7/2019 |
17/7/2019 |
$500 |
Human Resource Department |
|
Grand opening party |
5/8/2019 |
5/8/2019 |
– |
Marketing department |
|
Staff Training |
12/9/2019 |
15/9/2019 |
%900 |
Human Resource Department |
Conclusion
The above report has provided a detailed analysis of the Fast Frites Fast food restaurant that will be established in the Singapore market with a unique and different concept for the customers. The restaurant will offer fries and with combination of unique mix of sauces. From the above analysis, it could be concluded that the business plan of Fast frites will be a great success in the market due to its unique concept and market efforts put by the management team. Besides this, this business plan will offer opportunity to the business owner to open more stores at different locations and increase revenue and profits.
Reference
Bhasin, H. (2017) Porter’s Value Chain – Value Chain of Porter [online] Available from: https://www.marketing91.com/value-chain-porter/ [accessed 21 December 2018]
Breakeven Analysis: The Definitive Guide to Cost-Volume-Profit Analysis
Business Jargons. (2018) Value Chain Analysis. [online] Available from: https://businessjargons.com/value-chain-analysis.html [accessed 21 December 2018].
Cafferky, M. (2010) Managerial Accounting Collection 1st ed. U.S: Business Expert Press.
Daniilidis, A., Herber, R., and Vermaas, D.A. (2014) Upscale potential and financial feasibility of a reverse electrodialysis power plant. Applied energy, 119, pp.257-265.
Fan, Z.P., Che, Y.J., and Chen, Z.Y. (2017) Product sales forecasting using online reviews and historical sales data: A method combining the Bass model and sentiment analysis. Journal of Business Research, 74, pp. 90-100.
George, B. (2014) Apple Value Chain analysis 1st ed. Germany: GRIN Verlag.
Hudson, S., Roth, M.S., and Hudson, R. (2015) The effects of social media on emotions, brand relationship quality, and word of mouth: An empirical study of music festival attendees. Tourism Management, 47, pp.68-76.
Jurevicius, O. (2013) Value Chain Analysis [online] Available from: https://www.strategicmanagementinsight.com/tools/value-chain-analysis.html [accessed 21 December 2018]
Kiran, D.R. (2016) Total Quality Management: Key Concepts and Case Studies 1st ed. U.K: Butterworth-Heinemann.
MBA Skool (2018) Value Chain Analysis – Porter’s Value Chain [online] Available from: https://www.mbaknol.com/strategic-management/value-chain-analysis/ [accessed 21 December 2018]
Messmer, R. (2015) 4 reasons why a business plan is important. [online] Available from: https://www.iafrikan.com/2016/06/15/4-reasons-why-a-business-plan-is-important/ [accessed 21 December 2018].
Orman, S. (2010) Suze Orman’s Action Plan: New Rules for New Times 2nd ed. U.S: Random House Publishing Group.
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