04/25/2016
Project Description
The Events’ project involves the creation of a business of hosting and catering for events of various sorts. In this sense, the enterprise would acquire franchises and even expand its existing restaurants by constructing events halls. These halls would then be rented out to clienteles who wish to hold events of various sorts. Examples of such events would be event management, birthdays, wedding receptions, décor, a variety of cuisines for breakfast, lunches, dinners, appetizers, as well as musicians, DJs, event equipment and other development services family get-togethers(Lock, 2013). Having been established and built on an important foundation, the McDonald’s would exploit its present business facet to win clients for its new business. This business would be a strategy that is targeted at increasing the enterprises’ profitability and ensuring that it outcompetes rivals.
In a sense, it is a strategy that is aimed at providing catering services besides the already existing restaurant business. This project endeavors to expand McDonald’s operation to an entirely different angle. The addition of The McDonald’s Event Services provided by McDonalds restaurant will increase McDonalds gross margins above their previous levels due to the high numbers of rental space provided to various clients(Lock, 2013). Also, both new and existing McDonalds customers will be interested in using the ballroom as well as the catering and other event services rendered by the McDonalds restaurant. The Net profits of the McDonald Restaurant will increase from 2016 to 2018 after the acquisition of a ballroom. (Lock, 2013). The McDonald’s Event Services will utilize the hall for a greater percentage of the days to achieve the desired results.
![C:\Users\layla\Pictures\Macdonalds Sales Profits for three years....png]()
Required resources
The McDonald’s Event Services will require a substantial amount of funding for its expansion primarily for the purchase of the hall.
The necessary funds include:
• The McDonald’s Sumptuous Ballroom requirements- $2 million.
• Renovations of the Hall- $100,000
• Ballroom equipment- $50,000
• Marketing of the McDonald’s Sumptuous Event Services-$82,500
Implementation Summery
The McDonald’sEvent intends to open an events hall, at Illinois. The Hall is currently owned by a retired college lecturer at the Illinois, who previously utilized it as a center for community services. After the renovations, of the premise we shall create a synergy with The McDonald’s Event Service providing a platform for both current and future clients. The McDonald’s Event Services contractor will use the company’s catering and event planning services.
Products and Services
The McDonald’s Event Services will provide services such as,
• Event management services such as restroom attendance, coat check and door check
• Various cuisines for dinners, lunches and breakfast.
• Beverages such as non-alcoholic, beer, wine, and liquor.
• Table waiting services.
Through subcontractors, the McDonald’s Event Services shall offer services such as,
• Cakes
• Ballroom rental services
• Floral design
Through referrals, The McDonald’s Event Services shall offer,
• Valet Services
• Lighting
• Event Security
The plans of the McDonald’s Event Services include the following additions during the opening of the ballroom.
• Facility management services.
• Rentals for the ball for both half a day and full day timespans.
• Rental space without catering fee and rental space with catering and beverage fee.
Project Requirements
The McDonald’s Event Service objectives
• Upgrade and renovate the building interiors
• The hiring of the facility manager for the logistics purposes.
• An actual production of the investment on the ballroom due to the purchase made for the premise in the second year.
• Utilization of the hall for 365 days by the end of year 3.
Project Mission
The McDonald’s Sumptuous Event Services Endeavours to offer a top class event experience with a flawless business execution to both business and private existing and new McDonalds clients(Friedman, & Miles, 2006). The Events Project is a project that is targeted at expanding the enterprise’s business and tapping into the catering business through the hosting and provision of catering services to clients.
Financial plan
The renovation of the McDonald’s Ballroom will be commence from January to February 2016 in the preparation of the opening space on the 15th day of the same year. The largest revenue stream for McDonald restaurant traditionally has been the world largest chains hamburger and fast foods.The F & B for the McDonald’s Sumptuous Event Service has been set up for a separate tracking, to complement McDonald’s ongoing services(Friedman, & Miles, 2006). However, for a typical event service package for food would go for $11,000and beverage for $6,000, whereas for exemplary services at McDonald’s Sumptuous Event Services will incur a basic rental fee of 2,600. With a combination of the McDonald’s Sumptuous Event Services and the offsite operational costs, the food and beverage are at lower rates. Additionally, Ingredients are at wholesale rates in bulk. On the other hand, foods and liquor could have a higher markup price than 15% of sales.
The McDonald’s Sumptuous Event Services sales revenue will increase up sharply during the first year due to better utilization of the space. In both year 2 and three, the growth will level off as clients may consider some of the event dates unfavorable and a majority of the popular dates are booked first(Friedman, & Miles, 2006). The objective of this projection incorporates the use of the ballroom for at least 24 months by the end of the third year.
The McDonald’s Events expects that the existing line of McDonald’s Corporate business continues even upon addition of its space as McDonald’s Sumptuous Ballroom considers space not to be in direct competition but a complementary(Liyanage, 2007). The relationship between McDonalds and the ballroom Hall will allow McDonald’s Event to refer smaller meetings to that space, which will in turn help build the business at a Corporate Hall through new inquiries.
![C:\Users\layla\Pictures\Macdonalds Sales Year 1 Sales Focust....png]()
![C:\Users\layla\Pictures\Macdonalds Sales by year....png]()
Milestones
The following milestones are the vital steps to launching The McDonald’s Sumptuous Ballroom.
• The renovation of the building will be under the supervision of the McDonald’s Sumptuous Ballroom CEO.
• The renovations contractor will supervise the work as well as the subcontractors work such as the painter, electricians, floor specialists, plumber, etc.
• The McDonald Event services Marketing Director will handle the remaining work as well as advertising of the launch. All preparations will be made will the renovation is still in progress until completion.
The McDonald Event Services shall have a reduction of the Introductory rates of about $600into lure new clients into renting the ballroom(Liyanage, 2007).
![C:\Users\layla\Pictures\Milestones....png]()
Break-even Analysis
As shown below, the monthly breakeven cost may by slightly high as a result of the high fixed cost of the venue at approximately nine to ten events at about $11,000 for each(Pizam, 2005). The McDonald’s hall revenue was higher for the ballroom events due to the rental fee and additional services rendered to clients than for off-site development funds.
![C:\Users\layla\Pictures\Breakeven Analysis....png]()
Break-even Analysis
Monthly Breakeven $ 93,200
Average Variable Cost 10%
Monthly Fixed Cost $84,260
References
Lock, D. (2013). Project management.
Friedman, A. L., & Miles, S. (2006). Stakeholders: Theory and practice. Oxford: Oxford University Press.
Liyanage, S. (January 01, 2007). Competency Management Systems and Technologies.
Pizam, A. (2005). International encyclopedia of hospitality management. Amsterdam: Elsevier Butterworth Heinemann.
Brown, D. R. (2003). The restaurant manager's handbook: How to set up, operate, and manage a financially successful food service operation. Ocala, FL: Atlantic Pub. Group.
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