Income Statements , cash flow and Balance Sheet

Running head: QUALITY FOODS RESTAURANT 1

QUALITY FOODS RESTAURANT 15

Quality Foods Restaurant Business Plan

Cintia Rocha Pereira

Southern States University

Dear Dr. Taylor

Quality Foods Restaurant Business Plan

Products Description

The Quality Foods Restaurant shall be opened in San Diego in partnership with a gym. The restaurant shall serve a variety of foods and protein shakes that are low in cholesterol and sugar as its primary target is to provide healthy yet delicious meals to the residents of San Diego. The starting up of the restaurant is informed by the consistent increase in the obesity cases in the city, an aspect that is attributed to the types of food that the people eat mainly in the restaurants (Steele et al., 2016). Research shows that eating healthy foods and low in calories makes a person happy. The study also indicates that 75% of Americans prefer to eat healthy foods. All the foods shall be low in calories with the aim maintaining the health of consumers (Bridges, 2019). In addition to providing a serene environment for the customers, the restaurant shall also be focused on ensuring that all the people eat the foods that help their bodies to keep fit. The foods in the restaurant shall also be of high quality and delicious. To enhance the experience of the customers and also to improve the competitive advantage of the business, a nutritionist shall be employed by the management to provide the necessary information to the customers on the healthy foods they should eat to overcome lifestyle diseases that are mainly brought about by consumption of junk foods .

At Quality Foods Restaurant, customer's experience shall be the first priority as it is a factor that shall consistently lead to an increase in the loyalty of the clients and an increase in the market base mainly due to referrals. Every activity by the workers in all departments shall be aimed towards ensuring there is the best experience on the customer (Bridges, 2019). Quality foods shall, therefore, be cooked with the application of innovative skills that are essential towards maintaining the taste of the food. Most people have a negative notion that most of the foods that are described to be healthy by nutritionists are never delicious. The production of delicious foods in the restaurant shall also aim towards adjusting the mindset of the people. The healthy foods that are mainly low in cholesterol are important towards protecting the consumers from disastrous lifestyle diseases and conditions that are associated with consistently eating foods that are high in carbohydrates. The nutritionists shall also undertake the responsibility of providing a well-outlined program to the customers on the best diet they should undertake when they need to reduce weight. To compete with other Restaurants in the location, a marketing strategy applied shall be based on positioning of the foods and services as the best in the industry.

a) Mission

The mission of the Quality Food Restaurant is to provide healthy and delicious food, with quality and speed with competitive prices.

b) Vision

Become a renowned company in the city of San Diego, with excellent profitability and offer quality services.

c) Goal

Business objective is to grow by 3% year.

Target Market

The restaurant business is considered to be highly lucrative in the United States and globally. There are more than a million restaurants in the US, with their returns making major contributions to the country's GDP. The trends show there is a consistent increase in the amounts spent in the restaurant. It is the primary factor that has led to an increase in the number of restaurants (Dong, 2019). The innovativeness of the management is the primary aspects that make major contributions to the success of every established restaurant. It is, therefore, important to also identify the specific market target for the services and products when setting up a new restaurant based on the uniqueness of the products and services. Quality Foods Restaurants shall take the factors into consideration by ensuring that its target market is well defined and the specific core competencies described as an assurance that the people understand the purpose of its existence.

There is an available market for the products and services offered by the restaurant in San Diego. There is a high increase rate of obesity in the city, and people are consistently adjusting to foods that are low on cholesterol as a means of controlling the condition (Steele et al., 2016). Various global organizations that outline the right actions that should be undertaken towards ensuring healthy nations are consistently advocating for the consumption of healthy foods as a means of reducing lifestyle disease. The World Health Organization stated that the consumption of junk foods is the major contribution of obesity (WHO, 2018). The organization also indicated that obesity cases have doubled in the last two decades across the world. The increased consumption of high cholesterol foods is the major factor that leads to an increase in the cases reported across the world. Most people prefer tasty foods at the expense of their health, an aspect that increases their risk of contracting lifestyle conditions.

Quality foods will be seen as a place where people feel comfortable and eat well, with pleasure and fast.

The restaurant will develop marketing initiatives encouraging people to make a habit of frequenting the establishment through with the gym loyalty policy.

One of the actions applied will be the delivery of cards called loyalty card, on the day of your first consultation with the nutritionist. At each visit, the customer will receive a stamp on their restaurant and gym loyalty card. He will have a free meal when he reaches the number of ten stamps on the card.

The company will be starting its advertising investment 15 days before the restaurant opens in strategic locations such as universities, business centers, offices and gyms.

Product

· Product quality assortment

· Low calorie products approved by nutritionist

· Relationship marketing, and loyalty program.

Price

In determining the selling price of products, consideration shall be given to the cost of the raw material and the prices charged by competitors.

· Stamps for the loyalty program

· Birthdays don't pay as long as they bring four companions

· Advertising campaign in partnership with the academy to raise awareness of the general population, to consume natural foods as a source of health and well-being for all age groups.

Operational Plan

Quality foods restaurant will be housed inside a gym in the downtown area of San Diego, in an area of 30m2.

Office hours are Monday to Sunday from 7:30 AM to 10:00 PM, divided into two business shifts.

As the restaurant will serve natural foods it is important for customers to know where they come from , to this end, the feeds will be exposed to the clients appreciation so that there is no doubt about their quality. Another point to be highlighted is the hygiene of food and the cleanliness of employees wearing gloves and caps when handling the products.

Customer service will be:

1. Preparing personalized meals with a nutritionist.

By entering your physical information and fitness goal, we separate and select a source of ingredients.

2. Our team of culinary professionals develop fresh seasonal recipes and fully prepare your meals for you to enjoy.

3.Weekly rotating menu

We change your menu every week so you can have a variety of new meals week by week.

4. We provide cardiovascular and weight training plans in sync with your meal plan and fitness goals, included in your gym student package.

5.Save time, money

Save up to 10 hours and $ 60 a week by removing groceries, cooking, cleaning, thus increasing your productivity.

To better serve our customers in addition to being able to eat at our establishment we will also have the option of ordering.

Industry

The industry is growing at a very high rate due to the increase in the varieties in the services offered by the various restaurants. There is, however, a high competition rate in the industry, mainly due to the limitations of the services and an increased number of restaurants in the town. The establishment of a restaurant is mainly focused on a specific theme and culture towards the delivery of the services to its clients. Currently, the industry is ranked amongst the fastest growing, mainly due to the application of e-commerce in the industry. In the United States, it is estimated that more than 60% of the foods are ordered online (Ert & Fleischer, 2016). It is expected that there shall be consistent growth in the industry as more innovative methods are being applied by the upcoming restaurants.

There is an increase in the investment in research and design by the various restaurants across the world as a means of ensuring an increase in offering quality foods. With consistent investment in the research and development, it is expected that in the future, their performance of the restaurants shall exceed the expectation of the customers by mainly making quality foods and offering the best services. The investment in the industry is also increasing at a very high rate by external investment as they understand that with the current trend, the industry will continue to grow. Due to the adjustments in the economy, most people do not get an opportunity to prepare food at home, mainly due to the busy schedules leading to an increase in the number of customers to the restaurants (Sheel, 2017). Stiff competition is an aspect that has led to the maturity of the industry as every stakeholder must undertake their activities with a high level of responsibility to ensure they remain effective.

There is an increase in the need for healthy foods for people to remain fit and overcome diet-related conditions. Most people in America have consistently shifted to eating healthy foods with the aim of ensuring they improve the quality of their life (Hua, and Templeton, 2010). The constant factors that mainly control the industry are on the preferences of the customers and also their demand. The corporations that adopt the necessary changes in the industry are, therefore, expected to be the main beneficiaries. Despite the high regulation by the government, the new entrants should perform better mainly if they invest in research and development. Another advantage for the industry is that it can only reduce but cannot collapse as people will always in need of healthy foods.

The US economy is anticipated to continue growing, and it shall translate to the growth of the industry. There are, however, factors that have a negative impact in the industry. The cost of labor is very high in the United States and hence increases the costs of production and the delivery of services. The industry is also highly regulated by the government to ensure that all the entrants provide standard services and products. The restaurants are expected to pay high rates to the regulation authority, an aspect that further increases the cost of production and the delivery of services. The regulation is, however, important towards ensuring that the public receives the best services from the restaurants. It is also an aspect that ensures that all the activities undertaken by the restaurants in the industry are controlled and aimed towards improving the quality of life for the customers.

The services and products offered by Quality Foods Restaurant are viable in the industry despite the high competition rate. The specific factors that increase the viability of the restaurant are the investment in research and design. The utilization of the services of the lifestyle advisor is also important towards ensuring that there are extension services in the restaurant with the aim of ensuring that the people identify the specific foods they should take for them to keep fit. The overall aim is to ensure the reduction of the lifestyle condition and maintaining the best flavor on the foods. It is an idea that is unique, and its application makes the restaurant to be more viable and hence, a successful endeavor.

Competitive Analysis

The competition is very high in the industry from established restaurants globally, such as Starbucks and McDonalds. The two brands are well established in the City and they pose the greatest threats to the entrants of new Restaurants and restaurants in the industry. Competition is also high from the local restaurants that have well established and elaborate services to the customers. Tocaya organica and Tender Greens are well developed in San Diego and have also focused in the production of healthy foods to their clients and also the service delivery in the market. The multinational corporations in the industry have the highest market share, while the new entrants such as Quality Foods Restaurant are gaining the market share slowly. Due to the high intensity of competition in the industry, individual corporations are coming with aspects that are meant to increase their competitive advantage. The understanding of the market is an essential factor that leads to the amount of market share for every corporation. Another factor that controls the market share is the application of the right marketing strategy. There is a consistent growth in sales for the companies, an indication that the industry is growing at a high rate. The understanding of the trends in the market is important for Quality Foods Restaurant, mainly in ensuring that it remains competitive ad also makes the profits in every decision they undertake for future advancements.

To maintain the Sustainable Competitive advantage, Quality Foods Restaurant must undertake the activities that are aimed towards ensuring that the services are of high quality as compared to that of its competitors. The understanding of the immediate competitors is also essential towards undertaking the activities that are more competitive and attractive to the clients (Della Corte & Aria, 2016). The overall aim of the business is to provide the people of San Diego with healthy foods as compared to their competitors, an aspect that should be upheld to ensure that they do not lose focus and affect their market share. Brand loyalty is an essential aspect that must be taken into consideration towards ensuring that the company remains relevant in the delivery of healthy foods. The Food and Drug Administration policies must also be maintained to avoid the revoking of the license, which usually leads to loss of customers and in severe cases, the collapse of the company. Some of the factors as indicated that the restaurant must undertake to retain a high number of clients are on Client Satisfaction, the professionalism of all the employees, and product differentiation.

The analysis of the financial reports of its competitor shows a consistent growth of revenue, which translates to the growth of the industry. Quality Foods Restaurant should remain focused in the delivery of healthy foods and the best services to its customers for it to remain relevant and competitive in the industry.

SWOT analysis

To start a business, it is essential to do a market research, with a macro environment analysis, so that the entrepreneur is prepared with the possible threats, opportunities, strengths and weaknesses that the company may suffer.

Next you can see the SWOT matrix of the quality restaurant:

STRENGHTS	WEAKNESSES
Different environment	High turn over from professionals
Quality service	Lack of know-how of entrepreneurs
Practicality
Balanced low calorie enhancements
Accompanying a Nutritionist
OPPORTUNITIES	THREATS
Bull Market	Lack of quality workmanship
Reconcile need with pleasure	Strong competition
People most concerned about quality of life	Find products always with the same quality
People looking for places with reduced meal time

Financial Plan

This topic is intended for the presentation of the Quality Food restaurant financial plan, which will be presented in the form of financial spreadsheets made in Microsoft Office Excel, thus facilitating the visualization of data.

To open the restaurant the company will start with a cash balance of $ 320,000.00, which will be used in the initial investment $ 260,000.00, broken down as follows: civil works, equipment, machinery, furniture and utensils and pre-operating expenses.

References

(2019). Retrieved 23 October 2019, from http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_MCD_2018.pdf

Bridges, F. (2019). Healthy Food Makes You Happy: Research Shows A Healthy Diet Improves Your Mental Health. [online] Forbes.com. Available at: https://www.forbes.com/sites/francesbridges/2019/01/26/food-makes-you-happy-a-healthy-diet-improves-mental-health/#13aeb08326f8 [Accessed 11 Nov. 2019].

Della Corte, V., & Aria, M. (2016). Coopetition and sustainable competitive advantage. The case of tourist destinations. Tourism Management, 54, 524-540.

Dong, L., Ratti, C., & Zheng, S. (2019). Predicting neighborhoods’ socioeconomic attributes using restaurant data. Proceedings of the National Academy of Sciences, 116(31), 15447-15452.

Ert, E., & Fleischer, A. (2016). Mere position effect in booking Restaurants online. Journal of Travel Research, 55(3), 311-321.

Hua, N., & Templeton, A.(2010). Forces driving growth of the restaurant industry in the USA. International journal of contemporary hospitality management, 22(1), 56-68. Retrieved from, https://www.emeraldinsight.com/doi/abs/10.1108/09596111011013471.

James, W. P. T. (2009). WHO recognition of the global obesity epidemic. International journal of obesity, 32(S7), S120.

Luu, T. (2014). Knowledge sharing and competitive intelligence. Marketing Intelligence & Planning, 32(3), 269-292. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/MIP-05-2013-0077/full/html.

s, C. B., Thomas, C. C., Henley, S. J., Massetti, G. M., Galuska, D. A., Agurs-Collins, T., ... & Richardson, L. C. (2017). Vital signs: trends in incidence of cancers associated with overweight and obesity—United States, 2005–2014. MMWR. Morbidity and mortality weekly report, 66(39), 1052.

Sheel, A. (2017). 2016–2017 Restaurant Industry Performance and the JHFM Index.

Starbucks Corporation - Financial Data - Annual Reports. (2019). Retrieved 23 October 2019, from https://investor.starbucks.com/financial-data/annual-reports/default.aspx

US second-quarter GDP growth revised to 2.0%. (2019). Retrieved 23 October 2019, from https://www.cnbc.com/2019/08/29/us-gdp-q2-second-reading-up-2point0percent-in-line-with-expectations.html

World Health Organization. (2018). World report on ageing and health. World Health Organization.

Appendices

Competitors Financial Statement

Figure 1 Starbuck's Balance Sheet

Figure 2 Star Bucks Income Statements

Figure 3 McDonald's Balance Sheet

Figure 4 McDonald’s Income Statement