Business Plan Assignment

Executive Summary

The 3-Star-Style Restaurant (“3-SSR”) will be a moderately priced 50 seat restaurant offering family style food and service. Roasted chicken, pot roast, Samosas and Purichole along different Parathas, wraps and generous salads are all on the menu. We will offer specialty selections including lighter options and smaller portions for a children’s menu.

The restaurant will be family owned and operated by Pargatsinghkahlon and Preetosinghwho both have experience of over 15 years in the restaurant and catering industry. Pargat and Preeto will be leasing a 3000 square foot space located on Highway 90 between Sanderson & Alpine, Texas. The site was previously leased as an Italian restaurant. However, the former tenant removed the majority of the furniture, fixtures and equipment which will need to be replaced. The location will also require some additional renovation to update the lavatories and increase table space in the dining area.

The decor will feature wood accented chairs with blue and white checked table cloths. Dinner style tables will be surrounded by wooden chairs with comfortable seating cushions. Sales projections assume 1200 customers per week resulting in weekly sales of just over $14,000 or $728,000 annually. This equates to around $242 per square foot in sales annually which positions 3-SSR as a highly desirable concept for ownership in a table service market where $200 to $325 per square foot is considered moderately profitable and therefore a good investment. Total startup costs will be $320,294, $150,000 of which will be contributed by the owners and the remainder will be secured by a proposed bank loan.

In the analysis of porter’s five forces, lack of barriers to entry in the industry, customers trust than home-made food is healthier than restaurant food, presence of close substitutes firms in the industry and supplier power in provision of natural and quality products are some of the competitive factors that are likely to affect our position but all the same, 3-SSR is prepared in all areas to stand tall in the industry.

The 3-Star -Style Restaurant will be located in Marathon, TX a town of approximately 50,000 people which near major airports which are El Paso International Airport (ELP) and Midland/Odessa International Airport (MAF). The restaurant will be wholly owned and operated by Pargat and Preeto. The restaurant will serve a variety of classic home-style favourites from pot roast and mashed potatoes to patty melt and vanilla ice cream. The restaurant will be open 7 days a week, running from Monday to Saturday from 7:00am -9:00am and on Sunday from 11:00am to 5:00pm. The vision which serves as the purpose statement to the restaurant is “premier home-style dining restaurant in Marathon, TX town offering reasonably priced meals, in a warm, relaxed and comfortable setting.”(Heald, 2017).

The Marathon, TX town area is in great need of a family style restaurant. This section of on Highway 90 between Sanderson & Alpine, Texas is commonly referred to as “fast food alley”. The selection of fast food is vast,however; the area is limited on its family restaurant choices. 3-SSR’s nearest competitor, The AU Bon Restaurant is located over 3 miles away from the location. Further, established in the 2000s the AU Bon Restaurant’s customers are older than the targeted family group 3-SSR focuses on.

Proper labelling and rotation techniques, accompanied by ample storage facilities will ensure that high quality prepared product will be sufficiently available to meet the demands during peak business hours. Replenishment and ongoing preparation will continue during off-peak business hours. The restaurant layout, including the dining room, kitchen and serving line, has been designed for efficiency and flexibility to accommodate the fluctuation in customer traffic and peak meal periods.

Upon arrival, guests will be greeted immediately by either the assistant manager or a server and asked for the seating preference. Drink orders will be taken and guests can munch on our complimentary rolls. Once the customer’s order is taken, the order will automatically be printed to a requisition printer located in the grill area. The grill cook will use the printed ticket to keep track of orders and place the meal under the heating lamps until the order is complete. The kitchen preparation line has been designed to be operated by a minimum staff of 1 line cook and a maximum of 4 cooks. This design allows line staffing to be adjusted to the business volume. Shift changes for all staff will involve cleanup, restocking and preparation. All monies will be settled at the end of each shift. The closing shift will involve designated closing duties that will leave the restaurant clean and fully prepared for the next day (Petzer& Mackay, 2014).

At 3-SSR, we will position ourselves as the premier home-style restaurant by preparing quality home cooked meals with simple wholesome ingredients. Pargat and Preeto will also provide home cooked fare that appeals to the current trends of healthier food and offers menu selections which will appeal to this group.

3-SSR expects to hire 15 employees. Together, Pargat and Preeto will personally select each candidate. They’ve adopted an effective interview process designed to staff the restaurant with highly qualified people for each position. Each applicant will be rated and evaluated according to a pre-defined set of standards designed for each position. Background checks will be utilized for designated positions. Recruiting efforts will always centre on referrals.

The restaurant will be owned by Pargatsingh Kahlo. Pargat began his restaurant career at the age of 20 working in a quick-service foodservice operation and earned his way through college as a server and bartender. After earning his degree, he worked for a regional restaurant chain and an independent fine dining restaurant. In these organizations, he held the positions of Assistant Manager and then General Manager.

Preetosingh received her Culinary Degree from the Art Institute in Dallas. After graduation, she was employed by a local chain restaurant and then at a Five Star Hotel in Dallas. Preeto will initially be employed as the Kitchen Manager.Initially, Jeff and Betty will fill in many of the management gaps. Over time, they have plans to hire a sales director, a general manager, and a kitchen manager.

To meet the gaps associated with payroll, inventory management, and cost accounting, the Pargat and Preetowill purchase POS (point of sale system) that simplifies communications between the kitchen and the wait staff. Orders go through the computer, directly to the kitchen printer. Another benefit of restaurant POS programs is that it can track everything from food usage to the most popular menu items. Because the POS system acts as a time clock, it can also help prepare payroll – which will save some money in the bookkeeping department. Along with the daily operations of running a restaurant, a POS system can organize profit and loss statement and sales tax (Shimoff et al…., 2014).

Our initial marketing campaign will consist of contacting our databases clients and notifying them of our grand opening. We will seek the use of a local mailing service program to assist us in the implementation of the campaign. Ongoing- we will meticulously keep our database current and use the Constant Contact program.

Customer service is of the utmost importance. Customer surveys estimate that only 1 in 20 customers that have a problem in a restaurant will tell management about it. It will be our goal to provide a wonderful home-style meal combined with superior customer service. Training programs will include teaching materials to train our employees about service attitudes, customer perception and how to handle guest complaints. Pargat and Preeto will conduct periodic staff meetings intended to review policy, increase guest satisfaction and to keep a general line of communication between staff and management. All guest complaints will be acknowledged by the staff and referred to management. Programs will be in place for all types of guest complaints. More serious complaints will be documented and kept on file. Customer feedback will be accomplished by customer surveys or the use of mystery shopper (Kotler et al…., 2015).

( Little barrier to entry in industry. )