Business Plan Part 1

Executive Summary

Business Plan for Thuchi Lounge and Restaurant

Business Plan for Thuchi Lounge and Restaurant

The 100-seat dining restaurant comprising of a 30-seat lounge aims to focus on preparing New American-Swedish dishes with a small touch some Asian meals. Thuchi Lounge and Restaurant will be located in rapidly expanding regions of Washington and Virginia. Arguably, the outlook of Thuchi Lounge and Restaurant is very promising with the developers creating a more than 150 million dollars first-class resort project. The commercial space will occupy 100,000 square feet; also, part of the company is 800 residential units with townhouses and condo ranging between $200,000 and $500,000; a two-tier garage and rentals between $1000 to 2,500 a month. The corporation believes that these elements will be a significant contributor to the economy of the surrounding communities and the city and country at large.

The location area chosen comprises of a warm, friendly environment with a variety of foods. Notably, this is a hotel where customers know they will get the best when it comes to meals. Thuchi Lounge and Restaurant plans to feature an elegant lounge and a cozy dining room; and conformable décor and furnishings with smooth, warm tones. The place is perfect for meals with family and friends, as well as small business meetings. As a way of promoting extra comfort and attracting more clients, the restaurant will be involved in making up hours d' oeuvre platters for the clientele.

When it comes to the menu, it is inspired from specialties from diverse countries which can appeal to different clientele. In this hotel, customers can get Swedish specialties such as herring, meatball, and gravlax. On international foods, clients can choose Asian grilled shrimp and spinach, curry chicken and basmati rice, and black bean sauce with tofu. Special dishes will include pasta dish entrée and the all-American meal including baked beans and barbecue beef ribs. The restaurant will offer all meals at a competitive price with other upscale hotels in the area. With that said, though, Thuchi Lounge and Restaurant will create strategies to give a high-value perception that if the competitors, through its entertainment, food, and services.

In addition to operating seven days a week, the restaurant aims at offering special theme nights as a way of attracting new customers. Fresh flowers, soft music, artwork from local artists, and candles are all geared towards creating a satisfactory environment for the customers. By utilizing artwork from local artists, the company will be a way of promoting upcoming individuals with talents by giving them a chance to showcase their work to both domestic and international visitors. Besides, the hotel will engage in philanthropy work. According to Kotler and Lee (2008), philanthropy is beneficial to an organization as it builds respect as well as a good reputation in the community. The relationships resulting from interactions between prominent community members and the customers can provide various benefits to a company with time. Summer months are usually busy, the management at Thuchi Lounge and Restaurant knows this, and this is why will create a patio so that clients can relax outside and have special summer meals comprising of alcoholic and non-alcoholic beverages.

By hiring the best staff available, motivating, encouraging and training them, Matlay (2008) believes that this is a way to create a pool of efficient, hardworking staff committed to achieving organizational goals as a group. When it comes to the management team, it will be a composition of an individual with more than ten years' experience in food, hotel, restaurant, marketing, finance, art and motion pictures, management and catering. Each official will see smooth running of a particular department, for instance, the departmental managers will collaborate with his team of marketers to promote the restaurant in the local markets and overseas so that international visors can choose this hotel in time of say in the country. When it comes to the finance manager, he or she will solicit funds for the business and is responsible for preparing monthly and annual financial reports.

Start-up capital amounts to 400, 000 U.S. dollars and the company expects to generate close to 1, 085, 465 dollars in sales by the end of the second-year operation and provide significant profit by the end of the third year. Of the capital, 200,000 dollars will come from an SBA 7(A) loan with a 7 percent interest rate with the owners investing 60,000 dollars from their personal savings plus a 125,000 dollars investors’ capital. The instrument of preference is five-year subordinated notes comprising of an attractive coupon rate of not less than 12 percent in the very first two years of operation and 15 percent for the other three years. With investors’ notes maturing after five years, the restaurant will provide them with the final interest payment, a 2 percent premium plus their original principal. Restaurant start-ups, according to Stutely (2012), are speculative; in this case, Thuchi Lounge and Restaurant is committed to paying investors a predictable rate of return on their investment while taking stringent measures not to interfere with operational cash flow. The company plans to increase returns on capital as business operations gain efficiency and the firm becomes well-established.

Objectives

Thuchi Lounge and Restaurant’s for the first five years of operations are as follows:

· To keep food cost under 30 percent of revenue

· To grow market share by 6 percent in the first year, 7 percent for the second, and 11 percent in the third, fourth and fifth year of operation.

· To maintain average sales between 1,500,000 and 2,000,000 per year.

· To expand our advertising and marketing in Washington and Virginia

· To achieve 11 percent return on capital to investors for the first twelve monts, 13 percent for the next 24 months and 15 percent for the next three years of operation.

Mission

Thuchi is an excellent place to eat, considering the serene environment and high-quality variety foods to cater for all customers from different cultures. The mission of Thuchi Lounge and Restaurant is to have great tasting food as a well as a friendly and efficient customer service aimed at retaining or attracting new clients. We intend to be the restaurant choice for people of all ages and families of different incomes. The enterprise is committed to providing the best welfare for the employees. Lee, Hallak, and Sardeshmukh (2016) explain that workers are the most valuable asset and an organization must company the members of staff accordingly. Thuchi Lounge and Restaurant believes in treating employees fairly with respect while providing them with the environment to grow their careers. The company aims to make the employees of Thuchi Lounge and Restaurant feel part of the success of the organization. Combining menu variety, ambiance, atmosphere, friendly staff, and special theme nights, Thuchi Lounge and Restaurant will create a perfect place to reach the goal of over all value when it comes to entertainment and dining experience. The company strives to make a fair profit for the owners while creating a rewarding place for the members of staff.

Keys to Success

· On product quality, the restaurant will provide great food, an excellent service and atmosphere. Also, the company must control costs without exception.

· The creation of an innovative, unique dining atmosphere aimed at differentiating the restaurant from the competition. Unique décor, design as well, will help stand out from other eateries in the area.

· Special theme nights will include restaurant nights, Easter dinners, openings for local artists and Swedish Midsummer party. Others include Labor Day weekend, regular special ethnic food nights, wine tasting dinners as well as Swedish smorgasbord. Notably, all these are intended to attract a large pool of clientele to Thuchi Lounge and Restaurant.

· The menu is prepared to appeal to various customers, in both local and international markets.

Stevenson and Jarillo (2007) emphasize that intense competition in the restaurant industry requires restaurateurs to look for the best ways to differentiate their business place as a way of helping achieve and maintain a competitive advantage. In this line, the founders of Thuchi Lounge and Restaurant realize this and will develop key strategies aimed at gaining a competitive edge. The development of this restaurant requires a place that fits with the new trends in the business environment as well as the community as a whole. Since other hotels with this atmosphere and concept are limited in Thuchi Lounge and Restaurant’s area of operation, this will provide an opportunity to join a profitable niche in the market.

References

Kotler, P., & Lee, N. (2008). Corporate social responsibility: Doing the most good for your company and your cause. John Wiley & Sons.

Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and restaurant performance: a higher-order structural model. Tourism Management, 53, 215-228.

Matlay, H. (2008). The impact of entrepreneurship education on entrepreneurial outcomes. Journal of small business and enterprise development, 15(2), 382-396.

Stevenson, H. H., & Jarillo, J. C. (2007). A paradigm of entrepreneurship: Entrepreneurial management. Entrepreneurship: Concepts, theory, and perspective, 155-170.

Stutely, R. (2012). The definitive business plan: the fast track to intelligent planning for executives and entrepreneurs. Pearson UK.