Establish Statutory Agreements

7

8.3 - Le Séduire: Restaurant Business Plan

December 05, 2021

Introduction

This is a business plan of a restaurant business, and the plan will address various components of the business and specifically some of the legal requirements for starting up and running the business such as proprietary rights, legal setting of the business and other factors, location requirements among other elements. The restaurant business is a high-end business that sales very exotic meals so as to attract customers from different parts of the world. The business plan’s focus is the legal requirements needed to help kick start the business and as a CEO of the business I am responsible for the preparation of the plan and ensuring that the requirements are met.

The restaurant is offers high end type of services which means that quality is a key factor in the provision of services in the restaurant. The services that are offered in the business include meals, drinks, accommodation, conferencing, halls among other services. The location of the business is in Florida where there are various legislations that govern the operations of restaurants. Additionally, in Florida there are other various restaurants which means that the competition will be stiff for the business.

Legal form of the business

The appropriate form of business that will be used in the startup is a partnership where I and Sally will co-own the business. A partnership is the form of business where the Le Séduire will be owned and managed by Sally and I which means that we will both have the obligation to share in the profits and losses of the entity (Gaille, 2018). This business form will be started without any other external parties and the main reason why it is the appropriate business form is because we intend to maintain control over the business activities in the organization.

The costs which will be incurred in the start of the business operations include the costs of purchasing needed assets and equipment and acquiring the premises where the business will operate. The business is ideal because of the various tax benefits that will be associated with the partnership business. The general partnership is advantageous because the business will not be liable for income tax, but the profits will be shared among the partners, and we will include them when we are filling tax returns.

The business form is ideal as it will help share the costs of starting and running the business between us which means that we will not have to carry the financial burden of paying the expenses of the business. There are various disadvantages associated with the business and one of them is that the personal assets we own personally will not be protected which means that they can be used in settling debts in case of defaults. Also, the business is not treated as a separate legal entity and that is why the personal belongings can be used in settling of the debts.

There are other officers that will be needed in running the business and one of them is a marketing manager who will be required to help in marketing the business and helping increase the sales of the business. A logistics officer is needed to help control the supply chain in the organization and a human resource manager is needed to manage the issues related to the employees such as hiring process, training programs and even the remunerations for the employees. The process of registering the business will involve various steps and the first step is the selection of a partnership name and the filling of a trade name.

The filling costs involved in registering the business in Florida will entail the payment of a $60 dollar fee. After filling for the trade name the next step will be drafting and signing up a partnership agreement. The business will also be needed to obtain the necessary licenses, permits, and Zoning clearance before the startup of the business activities.

Legal setting of the business

There is various state, local and state requirements for the start of the business. One of the requirements for the application of the zoning clearance is that the business will need to be located in an area which is far from any religious center or academic center. The business intends to have various employees to help us with the business operations and as the owners it is our responsibility to ensure that the employees are safe when working in the organization. The employees will be safe when there is needed security protocols such as fire extinguishers and alarms. We will need to ensure that the working environment for the business is safe and there are no harmful components that might threaten the health and the life of the employees.

Location requirements

The specific location of the business was selected because of various strategic reasons that make it the ideal place for the location of the restaurant business. The location has various busy stores in the vicinity and is near very busy streets with a lot of traffic that will help generate sales for the business. The target market for the business is local and international tourists that are willing to try different foods from different regions. The business location will help ensure that more people access it to purchase the delicious foods.

Another factor that was considered in selecting the location of the business was the level of competition in the area. The hotel will be a high-end hotel and there are very minimal number of similar businesses in the region which means that customers will not have so many alternatives to select from. One thing that will help the business stand out is the focus of French cuisine that is not available in other restaurants nearby that mainly focus on selling fast food and American cuisines.

The business location will help set out the tone of the business and since the business is located nearby traffic and busy streets it will be easy to promote the business to the people who will be passing by and this is by offering discounts, free drinks and giving out flyers to the people which will entail various details about the business including the products and services which are sold in the business.

Business License Research and Costs

There are various local, state, and federal licenses which will be needed in running the business. The first business license that will be Florida sales tax permit and the permit will be offered to the business for free. The permit is necessary as it is the license that will grant the business permission to sell the various products and services to the customers. The Food Service license costs $50 and is a requirement for all organizations and businesses that handle food in Florida. The license will also require a liquor license that will cost the business around $10,850 and $300,000 which will be needed to allow the business to sell alcoholic beverages.

The restaurant needs to also apply for an employee health permit that will help certify that the employees have undergone the necessary safety training that is needed for individuals that handle food which is sold to people. The Live Entertainment and Music License costs around $300 to $600 that is required since the restaurant will be playing music for the guests who come to enjoy food sold by the business. The business will need to have locations signs that will make it easier for the first-time customers to locate the business and thus the business will need a sign permit that will cost the business $75.

Insurance Requirements

The business will do everything possible to help ensure that the property and the employees are well covered and avoid any unexpected expenses due to lack of insurance policy. The general liability insurance will cover the business and the owners for any bodily injuries or destruction of property that will result from the core business activities of the restaurant. A product liability insurance will help the organization in case any harm befalls the customers from consumption of products and services which are sold in the organization.

Inventory insurance will also be purchased to help the business offset any losses which result from the stocks of the business such as foodstuffs getting spoiled because of circumstances that are beyond the control of the restaurant (McKeever, 2018). A commercial auto insurance will be required to cover all the vehicles that will be utilized in the business activities of the organization. A surety bond will be needed to cover the business in case any of the partners for one reason or the other is unable to complete a part of their obligations.

Proprietary requirements

The business will have a payment system that can be categorized as an intellectual property. The payment system has been developed by the organization and is made up of patented mobile application that the customers can download from their smartphones and other devices that will help them book a table on their phones (Borders-Hemphill et al., 2018). The application will also be very helpful in scheduling the pickups and orders which are made by the customers to ensure convenience. The logo and the name of the restaurant will be protected under the trademark law and this is to ensure that other similar organizations do not imitate or copy them.

Employment Law and Requirements

From the research there are various legal requirements and laws which the business will need to adhere to in regard to employment of staff. The first legal requirement is that the restaurant will be required by law to abide to the OSHA safety standards which requires the organization to ensure that it offers a safe working environment for employees through provision of protective equipment needed, safety measures such as installation of emergency exist, and fire extinguishers are adhered to.

The business will also be required to be an equal opportunity employer which means that the minority groups will be well represented, and no age, gender, race or ethnicity is given special treatment during the hiring process. The Fair Labor standards act will also regulate the business and requires that there is a minimum wage for the employees in the country and state (Carnevale et al., 2019). The restaurant needs to comply with the necessary minimum wage requirements and ensure that the employees are compensated accordingly for any amount of overtime worked. The business will be needed to report various types of taxes such as Federal employment tax, social security tax and Medicare tax.

The best option for the organization is employees although independent contractors are better when it comes to the liability; independent contractors are liable for their own actions while an organization is liable for some of the employees’ actions especially those done within the context of their duties and responsibilities. Independent contractors are useful in the case of a short-term engagement and the restaurant is to be established as a going concern which means that the organization will need to have employees. Employees are a better option since once they are well trained and have worked for the organization for a long period of time they will be able to guarantee quality. The organization can have independent contractors when it has projects that will run for a short period.

Purchase Orders and Contracts

The business will need to have regular supplies of foodstuffs such as vegetables, seafood, and spices and the restaurant will have a contract with suppliers to have them deliver the various supplies to the business at regular basis. The restaurant is a high-end restaurant which means that there are some exotic food stuffs that are required by the organization. These foodstuffs will have to be imported under special delivery which means that they will not be supplied regularly and this to ensure that items are imported in bulk to minimize the shipping costs.

Some of the drinks will be sourced from the local suppliers but most of the wine will be imported from the French wineries to ensure that our clients enjoy exotic and high-quality wines so that the business stands out from other competitors in the industry. The restaurant will need maintenance and for these contracts with local maintenance companies will be required where the companies will be in charge of keeping all the systems within the restaurant running and also ensuring that the systems that fail are repaired and restored by the organization. A contract with a landscaping entity will also be needed to help ensure that the gardens are very green and the area outside the restaurant is very attractive to help appeal to the customers and the potential customers that walk by the business.

Torts and crimes protection

There are various torts and crimes which our restaurant business will be exposed to that could result into legal consequences in the organization. The restaurant will need to protect itself against three specific types of torts that are strict liability, intentional tort and negligence. Strict liability refers to the liability the business will incur from activities that are not their fault. For instance since the business is selling alcoholic beverages it could find itself in situations where they sell the alcoholic beverages to minors while thinking that they are old enough to be consuming alcohol and this would affect the business very negatively.

Intentional torts refer to any acts that will be conducted by the business or its employees with the intentions of causing harm or inflicting pain. Examples of the intentional torts include batteries and assaults such as situations where an employee beats up or is bitten up by a customer that is an intentional tort. Another tort which the restaurant will need to protect itself from is negligence which is a result of lack of taking appropriate care in the conduct of one’s duties and responsibilities (Epstein & Sharkey, 2020). The employees in the organization shall be given the appropriate training to help ensure that the procedures and policies of the organization are followed. The installation of security cameras is aimed to help prevent crime in the restaurant by having the employees under surveillance 24 hours in a day.

Property and Requirements

We intend that the business becomes a luxurious and high-end restaurant and for that reason there will be a need to invest so much in equipment and property design. We will invest in a garden Terrance which will be ideal for attracting and appealing to the customers. We will also invest in marble tiles for the flooring and ensure that the restaurant has excellent, beautiful finishes and enough storage units. The roofing of the restaurant will be done using latest and unique designs through contractors who will help design the restaurant and all the components of the restaurant.

The fittings and the décor for the restaurant also needs to be very exquisite to match the standards for a high-end restaurant. Furniture is another element which the business will focus so much on and this is to make the restaurant more appealing to the people and ensure that the customers are comfortable and the business is able to host functions and events. The initial costs which are needed for the installation the various equipment will be around $300,000.

UCC Considerations

There are various UCC considerations that will be made in the organization. UCC covers the general sale of merchandise and also regulates the food industry as well. We will ensure that the business is compliant and offers food that is safe to the customers. We will ensured that appropriate measures are implemented to help ensure that the customers and the guests from the organization are well protected from any food poisoning through contaminated food. The employees shall be trained on the necessary FDA requirements to help ensure that they are certified to handle food which is sold to the public.

Other considerations

There are many other considerations that will be made when starting up, running, and closing the business. One consideration is the contribution of the different partners towards the capital of the business. A partner will earn profits and share in the losses based on the capital contribution that we make at the beginning of the business. Another factor that needs to be considered is the environmental regulations and legal requirements.

As a business we will be committed towards ensuring that we have proper waste management and disposal system so that the waste does not contaminate water or land. We also aim to become a sustainable brand that is concerned about the wellbeing of the people and hence will ensure that our operations are environmentally friendly through recycling of plastics and using biodegradable packaging for the products which are sold by the business.

Conclusion

Our business is a high-end restaurant business that will focus more on quality and offering exotic services to the customers. The business will stand out because of its unique menu where we will offer very delicious and healthy foodstuffs to the customers. For the business, a partnership form of ownership will be utilized where Sally and I will share in the profits and losses of the organization and work together in the management of the business. The location is also a driver of success as we have selected a spot that is in a business setting with a wide population so that we have access to a wide market. We intend to comply with the applicable local, state, and federal legal requirements to avoid legal consequences.

References

Borders-Hemphill, V., Chan, I. Z., Brown, K., Rider, B., Taylor, K., & Chai, G. (2018). Use of

Proprietary Names by Prescribers for Generic Products. Therapeutic innovation & regulatory science, 52(2), 256-260.

Carnevale, A. P., Jennings, L. A., & Eisenmann, J. M. (2019). Contingent workers and

employment law. In Contingent Work (pp. 281-305). Cornell University Press.

Epstein, R. A., & Sharkey, C. M. (2020). Cases and materials on torts. Aspen Publishers.

Gaille, B. (2018, August 24). 21 General Partnership Advantages and Disadvantages. Brandon

Gaille

McKeever, M. P. (2018). How to write a business plan. Nolo.