A restaurant is a business establishment where different types of delicacies are prepared and served to customers. Restaurants also sell snacks, alcoholic and non-alcoholic drinks, and of course takeout meals.
The market size of the full-service restaurant sector in the United Kingdom in 2021 was approximately 9495.9 million British pounds. UK Restaurant Technology Statistics reported that the UK restaurant sector is expected to rise by 32.1%, or £11.7 billion, respectively.
Steps to Write a Restaurant Business Plan for Bank Loan
Table of Content
Baroness Anderson® Restaurants, Ltd. is a first-class restaurant that will operate world-class full-service restaurants across major cities in the United Kingdom with its headquarters in the heart of London.
Baroness Anderson® Restaurants, Ltd. is situated in a centrally located facility on a busy street with a capacity to accommodate 50 people per time with enough parking space and valet services. Baroness Anderson is the founder and CEO of Baroness Anderson® Restaurants, Ltd.
a. Our Products and Services
Baroness Anderson® Restaurants, Ltd. will be involved in the sale of;
- UK meals
- Intercontinental meals
- Assorted wines
Our products are designed to give our customers all the satisfactions and fulfillment they need from a restaurant.
b. Nature of the Business
Our restaurants will operate the business-to-consumer model.
c. The Industry
Baroness Anderson® Restaurants, Ltd. will operate in the restaurant industry.
d. Mission Statement
Our mission is to establish a standard and world-class restaurant business that will make available different types of food and drinks in a safe and conducive environment.
e. Vision Statement
Our vision is to establish a restaurant that will become the number one choice for both residents and tourists in and around our restaurant’s locations.
f. Our Tagline (Slogan)
Baroness Anderson® Restaurants, Ltd. – Baroness Anderson® Restaurants, Ltd., We Serve Great Meals!
g. Legal Structure of the Business ((LTD or Ltd), PLC, LLP)
Baroness Anderson® Restaurants, Ltd. will be formed as a Private Limited Company (LTD).
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Human Resources and Admin Manager
- Restaurant Manager
- Chefs (Cooks)
- Security Guard
i. Ownership/Shareholder Structure and Board Members
- Baroness Anderson (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
- Dennis Wembley (Board Member) 18 Percent Shares
- Milner Justin (Board Member) 10 Percent Shares
- Harry Benard (Board Member) 10 Percent Shares
- Kate Nelson (Board Member and Sectary) 10 Percent Shares.
- Ideal location for a restaurant business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Availability of different types of delicacies
- Moderately priced menu
- Availability of table service and counter service
- Full bar, usually separate from the dining room
- Reliable and efficient inventory management system.
- Financial Constraints
- A new business that will be competing with well-established restaurants and other outlets that retail food.
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in the number of people who would want to eat out within our market space
- Online market, new services, new technology, and of course the opening of new markets.
i. How Big is the Industry?
The restaurant industry is a big and thriving industry in the United Kingdom. After a decline in 2009, the number of restaurants in the UK has been steadily increasing. In 2019 there were 88,130 businesses operating in the restaurant and mobile food service industry in the UK.
ii. Is the Industry Growing or Declining?
Restaurant industry revenues were forecast to fall by around 33 percent in 2020, but the outlook suggested a full recovery by 2024. The UK restaurant market is forecast to see a compound annual growth rate (CAGR) of 1% from 2022 F-25F, to see the market recover to £18.3bn.
iii. What are the Future Trends in the Industry?
The future trends when it comes to the restaurant business will revolve around technology. Software that is meant to predict what customers want from a restaurant business, online food ordering, and deliveries will come to the front burner.
iv. Are There Existing Niches in the Industry?
Absolutely, there are niches in the chains restaurant industry. Here are some of them;
- Fine Dining Restaurants
- Casual Dining Restaurants
- Fast Casual Restaurants
- Premium Casual Restaurants
- Family Style Restaurants.
- Fast Food Restaurants
- Ethnic Restaurants
- Vegetarian Restaurant.
Please note that most restaurant classifications are basically of two types: based on the cuisine offered and based on the level of service practiced. In the past, based on food preparation methods, restaurants were classified as burger places, grills, oyster bars, diners, seafood places, coffee houses, and so on.
v. Can You Sell a Franchise of your Business in the Future?
Baroness Anderson® Restaurants, Ltd. has plans to sell franchises in the nearest future and we will target major cities with thriving food and drinks markets in the United Kingdom.
- The arrival of new restaurants business within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses and increasing prices of gas amid the low demand during the pandemic will reduce industry profitability.
- Economic uncertainty
- Liability problems
- The Food Standards Agency (FSA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
i. Who are the Major Competitors?
- Moor Hall, Aughton.
- The Angel at Hetton, Hetton.
- Core by Clare Smyth, London.
- House of Tides, Newcastle.
- L’Enclume, Cartmel.
- Sabor, London.
- Brat, London.
- A Wong, London
- The kitchen at the Chapel, Abergavenny, Monmouthshire
- The Walled Gardens, Manchester
- The Canton Arms, London SW8
- L’Escargot Bleu, Edinburgh
- The Dining Room, Abersoch, Gwynedd
- St Kew Cafe, Bodmin, Cornwall
- The Ledbury
- Inver, Strathlachan, Argyll
- Silk Road, London SE5
- Tá Tá Eatery at Tayēr/Elementary, London EC1
- The Old Stamp House Restaurant, Ambleside
- Core by Clare Smyth.
ii. Is There a Franchise for Restaurant Business?
- Tin Drum Asian Kitchen
- The Great Greek Mediterranean Grill
- Wingers Restaurant & Alehouse
- Le Macaron
- Spitz Mediterranean Street Food
- Slim Chickens
- Perkins Restaurant & Bakery
- Tin Drum Asian Kitchen
- Golden Corral Buffet and Grill.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Restaurant Business?
Yes, there are regulations and zoning laws for restaurants in the United Kingdom. Please note that the Food Standards Agency (FSA) is responsible for food safety and food hygiene in England, Wales, and Northern Ireland. FSA is a non-ministerial department, supported by 7 agencies and public bodies. Under the Food Safety Act, 1990 and the General Food Law Regulation 178/2002, you are responsible for ensuring that the food customers eat is safe and the quality is what they expect. This means you should understand exactly what foods can cause problems.
Generally, food law prohibits the importation and distribution of food products that are adulterated, or have labels that are false or misleading in any context.
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years old who have the finance to purchase food and drinks from us.
ii. Level of Educational
We don’t have any restrictions on the level of education of those that will come to our restaurants.
iii. Income Level
There is no cap on the income level of those that will visit our restaurants.
There is no restriction when it comes to the ethnicity of the people that will visit our restaurants.
There is no restriction when it comes to the language spoken by the people that will visit our restaurants.
vi. Geographical Location
Anybody from any geographical location is free to buy food and drinks from us.
Baroness Anderson® Restaurants, Ltd. will not restrict any customer from purchasing food and drinks from us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand Our Shop.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share our Events in Local Groups and Pages.
- Turn our Social Media Channels into a Resource
- Develop our Business Directory Profiles
- Build Relationships with players in key industries.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (coupon books, billboards), referral (also known as word-of-mouth marketing).
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Baroness Anderson® Restaurants, Ltd. will make sure it covers profits, insurance, premium, license, economy or value, and the full package. All our pricing strategies will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the event and party planning industry, and freelancers to help refer customers to us.
Baroness Anderson® Restaurants, Ltd. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need supplies such as food ingredients and drinks mean that Baroness Anderson® Restaurants, Ltd. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse.
We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business. Baroness Anderson® Restaurants, Ltd. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
c. Payment Options for Customers
Here are the payment options that Baroness Anderson® Restaurants, Ltd. will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Baroness Anderson® Restaurants, Ltd., our customers are our top priority hence if you receive food and drinks that are different from what you paid for, we will sincerely apologize. You can call us as soon as you notice that there was an error in your order and you may come to pick up the correct food and drinks.
For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new items’ price.For cash payments, you will be asked to pay the difference of the balance if the new food and drinks have a greater value than that delivered in error.
In the same way, you will receive the difference of the balance back as credit for the new item if it is less than the one received in error. In some cases, we may offer you store credit.Please, if you have any questions regarding the Return & Refund Policy, you can call our customer care services.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients. It will help us first understand their needs, experiences, and pain points. We will work with effective CRM software to be able to achieve this goal.
On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainers deals that will enable the firm to boost our restaurant’s business sales and support revenue growth.
a. What Happens During a Typical Day at a Restaurant Business?
- The business is open for the day
- The restaurant serving area is cleaned and ready for the day’s business
- Food ingredients and drinks are purchased and prepared for use
- Customer’s orders are taken and they are served or their orders are delivered to them
- Cashier collect’s cash and reconcile account for the day
- Administrative duties are carried out
- The store or warehouse is restocked when required.
- The business is closed for the day.
b. Production Process
The production process of food and drinks involves;
- Getting the supplies ready
- Cooking and preparing different types of food and drinks.
c. Service Procedure
The service procedure for a restaurant’s business starts with a customer requesting food and drinks. Once the request is gotten, it will be processed and the customer will be served or the order delivered to a location as requested.
d. The Supply Chain
Baroness Anderson® Restaurants, Ltd. will rely on key players in the tourism industry and the event and party planning industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale suppliers of food ingredients and drinks et al.
e. Sources of Income
Baroness Anderson® Restaurants, Ltd. make money from the sale of;
- UK meals
- Intercontinental meals
- Assorted wines
- Beverage sales
a. Amount Needed to Start your Restaurants Business?
Baroness Anderson® Restaurants, Ltd. would need an estimate of £175,000 successfully set up our restaurants business in the United Kingdom. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – £12.
- Legal expenses for obtaining licenses and permits – £1,300.
- Marketing, Branding, and Promotions – £1,000.
- Business Consultant Fee – £2,000.
- Insurance – £1,400.
- Rent/Lease – £75,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery (£500), and phone and utility deposits (£1,800).
- Operational Cost (salaries of employees, payments of bills et al) – £30,000
- Start-up Inventory – £7,500
- Store Equipment (cash register, security, ventilation, signage) – £1,750
- Furnishing and Equipping the Shop and Kitchen – £30,000
- Website: £600
- Opening party: £2,000
- Miscellaneous: £1,500
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
Baroness Anderson® Restaurants, Ltd. will not build a new facility for our restaurant business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Restaurant Business?
- Supplies such as food ingredients, drinks et al
- Utility bills (gas, internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
- Equipment maintenance
- Marketing costs
e. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – £45,000 Per Year
- Human Resources and Admin Manager – £32,000 Per Year
- Restaurant Manager – £30,000 Per Year
- Accountant (Cashier) – £28,630,000 Per Year
- Chefs (Cooks) – £27,500,000 Per Year
- Waiters and Waitresses – £22,100 Per Year
- Cleaners – £18,000 Per Year
- Security Guard -£24,000 Per Year
f. How Do You Get Funding to Start a Restaurant Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for your Product/Service?
The price of our food and drinks to a large extent depends on the type of food and drinks we sell, but on average, our prices will be anywhere between £1.50 and £4.
b. Sales Forecast?
- First Fiscal Year (FY1): £260,000
- Second Fiscal Year (FY2): £350,000
- Third Fiscal Year (FY3): £420,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): £65,000
- Second Fiscal Year (FY2) (Profit After Tax): £100,000
- Third Fiscal Year (FY3) (Profit After Tax): £180,000
d. Profit Margin of a Restaurants Business
The ideal profit margin we hope to make at Baroness Anderson® Restaurants, Ltd. will be between 20 and 60 percent, all things being equal.
a. How We Intend to grow and expand?
Baroness Anderson® Restaurants, Ltd. will grow our restaurant business by first opening other outlets in key cities in the United Kingdom within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where We Intend to expand to and why?
Baroness Anderson® Restaurants, Ltd. plans to expand to;
- Auckley, South Yorkshire
- Dorchester, Dorset
- Ammanford, Carmarthenshire
- Prestwich, Manchester
- Bradford, West Yorkshire
- Little Horwood, Buckinghamshire
The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest and most thriving markets for restaurants in the United Kingdom.
The founder of Baroness Anderson® Restaurants, Ltd. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.