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Business Plan for the Restaurant

Business Plan Introduction Sample

Many investors view restaurants with Japanese cuisine as a good investment. This is because the initial cost of production is quite low and the selling price, on the contrary, is high enough to ensure good profits. Given the increased demand for Japanese cuisine, these factors provide even more revenue. Profitability varies from a minimum of 20% to 25%, in the case of the successful implementation of the business plan of a Japanese restaurant, and good management can raise it to 60%. The turnover starts to increase from about the fourth month after the opening of the restaurant. The average payback period of the restaurant business is one and a half to two years.



The location of the restaurant predetermines the success of the whole operation. That is why one of the most significant aspects of our business plan was to find a Japanese restaurant space that would provide a minimum of 70-80 seats and will cover an area of about 100 sq.m. Another 50 sq.m. are needed for the kitchen. The optimal area of the restaurant is to be from 250 to 300 sq.m. The exact location for Zen is appropriate, as it is located in one of the central areas in Washington DC. It is surrounded by business buildings and is very close to DuPont Circle, which is a main shopping/dining area.

Firstly, we have to make repairs in the building, to provide the thematic focus of the interior. It is best to entrust this work to a professional designer. To run this item of the Japanese restaurant business plan we need to allocate about $ 70,000. This amount also includes the purchase of furniture. In general, experts consider the cost of preparing the room for the restaurant business based on the sum of $ 1,000 per square meter.

Secondly, it is desirable to purchase imported equipment. Its acquisition costs are is nearly $ 50,000. However, in this aspect of the Japanese restaurant business plan, we cannot save. We need sharp knives, that do not become dull and not oxidized, good boards; sealed refrigerators for high quality prepared food, which is especially important for Japanese food.

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Another step in our plan is connected with the specificity of personnel serf. Japanese food requires a special approach. Here, as in any business, there are subtleties. In particular, this applies to recruitment. A prerequisite to the Japanese restaurant business plan is that employees must be trained to become experienced in this business. As we plan to cover the basic Japanese cooking styles and Teppanyaki, we need people who are real professionals in this business. Japanese restaurant staff in Zen includes the following positions

  • Chef (a monthly salary of $ 500-2000);
  • sushi cooks ($ 100-500);
  • hot chefs ($ 100-600);
  • waiters ($ 100 or 1 % of the order);
  • kitchen workers; administrator ($ 400-600).

The chief specialist is responsible for monitoring the quality and level of dishes, their popularity, and new items. A chief sets the mood of the kitchen and often gains the rest of the staff. That is why we shall use a specialized recruiting agency. In our Japanese restaurant, there must be people with Asian appearance. This will add a certain charm to the restaurant.

One aspect that is more important is the subtleties of production. Sushi, hot dishes and bars bring the main income in the implementation of the business plan of the classical Japanese restaurant. With a budget option income is distributed approximately as follows:

  • 60% of the profits are brought by sushi;
  • 30% - bar products;
  • 10% - other dishes.

Top-rated restaurants offer better income from other dishes besides sushi - is up to 20% that we also will practice in Zen.

The main ingredients of Japanese cuisine are rice and seafood. In this case, seafood is perishable goods, and it must be fresh not even subjected to freezing. In this case, the dishes will be very expensive. Lastly, the price is relatively in our restaurant are to be not very high, so that people could go to The Melting Pot just for a regular dinner. As we mainly focus on sushi, appetizers, soups, salads, desserts, and beverages, the alternative is to use partially frozen food and partially fresh seafood.

First, when choosing a supplier, a special focus must be on the quality of products. CAMAX Investment GroupWholesale is selected as the supplier of retail fish and seafood for the reason that its products are of consistent taste, always fresh and undergo special tests, so we can be sure that our clients will be satisfied. The delivery of products is included in the cost of production that also makes our choice.

All other products we will buy in the Eastern Market that is also known as the oldest market of the U.S. capital. Firstly, the Market is located on 7th Street in the heart of the city that is not very far from the restaurant. That means we can buy fresh products at a reasonable price every day. Eastern Market, as well as many shops in Washington, DC, offers a wide range of goods fragrant and delicious fruits and vegetables, fresh meat, seafood, meats, dairy products, Asian species, juices, sauces, Asian foods. Prices in shops in Washington are about the same as in the market, but the quality of products in the market is much higher, which also determines our choice.

The Main Purpose of Marketing Strategy

The main purpose of our marketing strategy is to attract new segments of visitors by expanding the range courses aimed at different levels of income, expansion of activities and commissioning of additional services (delivery of meals to offices and home organization festivals, corporate parties, etc.). In the future, the company will actively influence the competitors in terms of the implementation of appropriate pricing and assortment policy.

For example, a wide advertising campaign on some exotic dishes those visitors can sample only in a certain season. If a client who tasted this dish expresses the wish to re-order it, then we can offer both exclusive dishes at a price that is higher than regular, but still accessible to a customer. The range will be reviewed monthly. Dishes that do not use demand will be excluded from the menu, including new varieties of dishes.

A pricing strategy is one of the tools to achieve the planned performance of the company. Persistent goals are to:

  1. Maintain a competitive relationship "price-quality" for all types of products.
  2. Stimulate demand.
  3. Increase the cash component of the pay.
  4. Receive the planned volumes of income and profits.

In the initial stage, the enterprise will follow the methods of price competition in order to attract customers. While pursuing measures to accelerate the turnover of goods this does not reduce the average level of gross income but will provide a customer flow. The main factors in pricing will be

  • the level of demand and supply;
  • the elasticity of demand;
  • the possible reaction of consumers
  • the level of price competition.

The restaurant will allocate such methods of pricing as:

  1. Calculation of price of a dish based on the selling price of the supplier with the established limits of the trademark.
  2. Ensuring the cost.
  3. Focusing on demand (the higher the demand is, the higher is the price and vice versa.
  4. Focusing on competitors' prices (it will be cheaper than the price of the leader, but more expensive than other cheap restaurants).

We also plan to use the communications strategy. The company plans to use the funds as direct communication exhibitions, trade fairs, catalogs and global networks (the Internet), e-mail. The main ways of influencing the final customers are extensive (contact directly with the end-user), through partners, the publication of advertisements in the press and specialized publications, participation in exhibitions and fairs, seminars, organization of presentations, conferences, using of Internet, receptions, visits, excursions.

For the realization of the planned marketing strategy, we plan to spend about $1,500 monthly. For outdoor advertising – about $1,300, on advertising in the media and the opening of the restaurant, it is planned to spend $ 2500.

An important part of the marketing strategy is the formation and maintenance of a positive company's image in the external and internal business environment.

Advertising Info Company

Advertising Info Company will be included in electronic databases and catalogs of goods and services, as well as posted on the produced by firms exhibition organizers laser CDs. Print advertising will be carried out by placing advertisements, modules, articles and other publications and information overview and commercials.

Work on placement the information about the restaurant and products in different directories, telephone directories, business directories will be done. We also can place advertisements in the halls and offices of administrative buildings in the area, conduct presentations inviting representatives of enterprises and large firms of the area, etc. Outdoor advertising is to be done in the form of billboards, banners, light signs, brand signs, through the design of the entrance to the restaurant.

Souvenir advertising is a very effective way to fix the image of the company in partners and customers. We will use it in conjunction with other measures on the promotion of products, complementing and reinforcing the impact on customers, as the carrier of a simple advertising message. As a souvenir of advertising, we will use:

  • branded souvenirs with symbols of the firm;
  • serial souvenirs engraved or brand labels, gift items with inscriptions;
  • brand representation folders, etc.;
  • corporate calendars of all kinds;
  • notebooks, books, greeting cards.

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Potential risks are as follows or the main destabilizing factors that could affect the course of implementation of the project are:

  1. Commercial risks.

Related to the product sales (decreasing with the size and capacity of the market, reducing demand, underestimation of the existing competitors). Reduction measures are the more thorough and systematic study of the market situation, the appropriate pricing policy, forced advertising).

  1. Organizational risks.

Caused by breach of contract liabilities, negligence and bad faith partners in the local bureaucracy level. Reduction measures are the creation of an effective management system.

  1. External risks.

Economic instability in the country, imperfect and contradictory legislation, including tax policy.

  1. Risks related to the force majeure.

These are the risks due to unforeseen circumstances. A measure to reduce them is to ensure the restaurant with sufficient financial strength.

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