Custom «Business Plan Report» Essay Paper Sample

Business Plan Report

Company Description

Healthy Foods is a medium sized restaurant that will operate in Massachusetts. The company will concentrate in offering its clients healthy and traditional foods. Additionally, the company will offer traditional African dishes on request as it targets the African population and the population of African dish lovers. The business will be situated in Cambridge, Massachusetts.

Mission Statement

The company aims at achieving comprehensive success in the provision of healthy foods in Massachusetts. The initial role of the company's management will be to achieve the financial stability of the restaurant. The management will endeavor to achieve this goal in conjunction with other four goals: producing foods that promote the health and wellbeing of the clients; undertaking business activities and practices that will promote a sustainable environment; and promoting high quality attitude, generosity, and fairness among the management, employees, clients, and the vendors of the restaurant. The awareness of these factors and the responsible actions undertaken by the management will provide value to the company's efforts and provide meaning that go beyond the fundamental financial goals of the competitors.

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Development and Status

The initial plans indicate that the business will be launched in the mid 2011. Two young entrepreneurs Harry Melton and William Masson will own the company. Melton will be the president of the company while Masson will act as the vice president. Initially, the company intends to issue 12,000 shares. Melton and Masson will own 8,000 of the issued shares while the rest of the shares will be left for future allocation. The company's management will provide an initial startup capital of $125,000. $75,000 of the funds will be used to finance the startup and research costs for the company while the company for financing any other future investments in the business will maintain the remaining capital.

An appropriate location for the business has already been identified and the lease negotiations are in the final stages. The business will operate its business premises under lease agreements due to the high cost of purchasing or constructing a business premise. Additionally, the business suffers from time constraint in that it does not have enough time resource to construct a business premise considering it intends to launch its operations mid next year. The business location in Cambridge was selected due to the dense population of the company's target market in the area. It is anticipated that the lease will have been finalized and signed by the end of February 2011. This will provide the company with three months of undertaking restructuring costs on the building to render it suitable for the restaurant operations.

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If the business is able to meet the anticipated results in the first year of operations, the company owners will start scouting for additional locations to establish the next unit of the restaurant. The company's five-year goal is to have established at least three restaurants in the wider Boston area and to generate an annual profit of between $600,000 and $800,000.

Industry Analysis

The restaurant industry is highly competitive. However, the gradual changes in lifestyle due to modern living have ensured a steady growth in the restaurant industry. An increasing number of people have less time, resources, and capacity to prepare their own foods. Additionally, there is an increasing demand to eat healthy foods. This trend is very critical for Healthy Foods; the company is well prepared to meet the ever-increasing demand for the healthy foods. The company will provide lighter, healthier, and averagely priced foods at the convenience of a significant number of its clients. The company is anticipated to be the pioneer in the provision of the African dishes; thus, it is anticipated that it will enjoy some monopoly in the market before other restaurants venture in the provision of similar foods.

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Future Developments and the Strategic Prospects

The anticipated growth in the industry provides positive prospects for the restaurants in both the shot-run and the long run. The modern living continually creates opportunities for the restaurant industry; t5here is an increasing number of people who are forced to take meals away from home.

Products and Services

Healthy Foods is an averagely sized and moderately low priced restaurant offering an assortment of traditional American and African dishes. The major theme for the restaurant is the provision of healthy, familiar, and flavorful dishes. The aim of the company is to establish an image of a light, satisfying, and nutritious diet. The increasing campaigns by nutritionists on nutritional and healthy eating and the growing number of people demanding healthy and averagely priced foods will maintain the company's market in future.

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All the foods served by the restaurant will be prepared in the restaurant's kitchen. The restaurant will use fresh vegetables and dairy products to prepare most of its dishes from scratch. The chefs and service staff responsible for the food preparation will observe strict sanitation standards, quality production, and presentation and packaging in the kitchen.

The restaurant will provide three ways through which the clients can purchase the foods> they will have the opportunity of sitting in the sixty seats dining area and receive the full service of the restaurant's staff. The restaurant will offer a take-away counter that will serve the clients who wish to pick up their foods. The majority of the take away foods will be prepared on order; the orders may be placed via phone or fax. Lastly, the restaurant will offer delivery services that will be limited to the off-peak times at the restaurant and for limited areas.

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Future Prospects

A large segment of people who wish to eat the type of food prepared by the restaurant; however, they do not have the time to prepare the food. A large number of caterers and mail order companies supply these clients with up to a month's delivery of prepared foods. Initially, the restaurant will research and develop this opportunity on a trial basis. If the strategy is successful, the strategy will create an additional source of massive revenue for the restaurant without creating the need to hire additional staff and lease additional space.

Healthy Foods targets the diverse and densely populated groups. The restaurant will be situated in a business district area; however, locals and tourist frequent this area to eat out. The area is also popular for providing catering services to the demographic groups that the restaurant is targeting.

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The restaurant's customers are categorized into four main groups: local population, college and university students, Tourists, and local businesses. Additionally, the restaurant food concept is developed for three customer profiles: the students; an increasing number of young people are adopting healthy eating habits. The health conscious population, this includes the population with controlled or prescribed eating diets and the people who are committed to consuming healthy diets. Lastly, the restaurant targets the population who would wish to try on the healthy foods. Through publicity, marketing, and word of mouth referrals, people will learn the health value of consuming healthy foods and will seek out new experiences to consume the foods.

A number of restaurants in the area offer foods at similar prices. This provides both a challenge to capture a significant market share and an opportunity due to the established potential in the market. New competitors have been successful in the market due to their innovative and unique concepts. Healthy Foods will offer an innovative product at a highly competitive price. The restaurant's aggressive rollout plans of take-away and delivery will provide a market advantage and snatch a significant market share from the prevailing restaurants.

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The restaurant anticipates stiff competition from three categories of food providers: the independent restaurants that offer similar menus and prices, chain food stores, and commercial food service companies that provide food to the students.

Competitive Strategy

The restaurant will adopt three ways of establishing a competitive edge over its competitors: product, quality, identity, and innovativeness; employee motivation and a first-class sales approach; and an inventive and aggressive service options. Healthy Foods will be the only restaurant in the area that is primarily focused on the provision of healthy foods. The competitors only offer an assortment of healthy foods in their menu among other foods.

Marketing and Sales Strategy

Market Penetration

Healthy Foods will not have difficulties in venturing into the market due to the high visibility of the store and the heavy traffic that is present in the area on a daily basis. Furthermore, the local population and students are always in support of new restaurants that are established in the area, while tourists lack rigid preferences. Additionally, the restaurant has set aside $15,000 in the initial capital as a pre-opening advertising budget and public relations campaign.

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Marketing Strategy

Healthy Foods will focus on the theme "Healthy and Tasty Foods." Additional marketing activities will be undertaken to convey the restaurant's presence, image, and message. The marketing efforts are to be implemented in three phases: opening phase, which will entail a hired PR firm sending out advance notices and placing both media and printed advertisements. Ongoing phase, this will entail a flexible and ongoing campaign. The campaigns will be assessed on a regular basis to establish their effectiveness. The last phase will be the point of sale. This phase appreciates the value of the restaurant's staff in enhancing the clients' experiences. The word of moth referrals will also play a key role in establishing a client base for the restaurant.

Long-Term Growth and Exit Plan











Healthy Foods is an innovative concept and targets the new and emerging markets. The restaurant assumes that the restaurant will grow quickly capturing a significant market share over the next five years. The restaurant's goal is to establish a reputation for its quality, food security, and consistency that will render the restaurant a leader in the new style of dining.

New ventures entail some degree of risk. The restaurant's success is grounded on its acceptance in the new market. The restaurant anticipates imitation competition from other independent restaurants. Competition from the chain stores is anticipated much later.

Healthy Foods anticipates rolling out five units over the next ten years. The restaurant anticipates a buy-out by a large corporation or the restaurant's management seeking to sell it to a different owner.

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