2010-11-22 Pizza Palace - Summary Business Plan - PDF

BUSINESS PLAN

Name

Lokesh Tulloo

Student ID

1014560

Module

GEM MGT 2251Y: ENTREPRENE ENTREPRENEURSHIP/LEADERS URSHIP/LEADERSHIP/INNOVATION HIP/INNOVATION

Tutor

Mrs. Dimple Seewoogobin

Course

Computer Science

Date

22 November 2010

Pizza Palace

Contents 1.0 Executive summary ................................................................................................................................. 4 2.0 The Business ............................................................................................................................................ 4 2.1 The Opportunity .................................................................................................................................. 4 2.2 Vision, Mission and Objectives ........................................................................................................... 5 2.3 Keys to Success ................................................................................................................................... 5 2.3

Description of Business Model ........................................................................................................... 6

3.0 Management Team ................................................................................................................................. 7 3.1 Management Team ............................................................................................................................. 7 3.2 Board of Directors ............................................................................................................................... 8 3.3 Other Stakeholders ............................................................................................................................. 8 4.0 Organisation Structure, Structure, Ownership and Intellectual Property .......................................................... 8 4.1 Organisation Structure ........................................................................................................................ 8 5.0 Industry Analysis ..................................................................................................................................... 9 5.1 Industry Description ............................................................................................................................ 9 5.2 Target Market ................................................................................................................................... 10 5.3 Competitor Analysis .......................................................................................................................... 10 6.0 Marketing Plan ...................................................................................................................................... 10 6.1 Product Strategy ............................................................................................................................... 10 6.2 Pricing Strategy ................................................................................................................................. 11 6.3 Marketing and Communication Strategy .......................................................................................... 11 6.4 Promotion Strategy ........................................................................................................................... 11

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Pizza Palace

7.0 Operation Plan ...................................................................................................................................... 12 8.0 Financial Plan ........................................................................................................................................ 13 8.1 Sources of funds ................................................................................................................................ 13 8.2 Budget ............................................................................................................................................... 14 9.0 Critical Risk Factors ............................................................................................................................... 14 10.0 Conclusion ........................................................................................................................................... 15 11.0 Appendix ............................................................................................................................................. 16 11.1 Pizza Palace Menu ........................................................................................................................... 16

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Pizza Palace

1.0 Executive summary Pizza palace is a new player in the restaurant industry of Saint-Pierre. Bolstered by the need for more choices in family-oriented dining experiences, combined with w ith the option for home-delivery, the restaurant is positioned to take advantage of the market need and serve the people of Saint-Pierre. It is Pizza Palace’s strategy to exploit the first -mover opportunity and establish itself as the preferred

pizza provider to the area. We believe a locally-owned restaurant is the best option to serve the rapidly growing population with a fresh, unique menu. This business plan calls for an exciting, profitable start-up year ahead with future forecasted growth as we meet the demands of the community. In all, this plan describes a healthy company with good growth prospects, looking to manage its orderly growth in the near future.

2.0 The Business 2.1 The Opportunity Mauritius being a multicultural country is open to all types of cuisine. Italian cuisine, most particularly Pizza is much appreciated by Mauritians of all age groups. It can be noted that branches of Pizzahut and Debonairs, the most popular pizzerias in Mauritius, are found in urban areas and in some rural areas. Hence for one living in an area where no such pizzeria is available, one has to travel to urban areas or rather long distances in order to eat a slice of Pizza. Saint-Pierre is such one example. The pizza lovers of Saint-Pierre have always been wondering how great it would be to have a pizzeria providing nice pizzas in the locality- the genesis of my decision to open a pizzeria in Saint-Pierre, “Pizza Palace”. Being the first and only pizzeria in Saint- Pierre, this business is bound to benefit from first mover’s advantages and its potential for growth is almost certain.

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Pizza Palace

Pizza palace will cater for the needs of different customer segments, by providing a wide range of pizzas at affordable prices together with a friendly atmosphere that will lead to delightful moments spent with family and friends.

2.2 Vision, Mission and Objectives Our vision is to be the best providers of Pizza in the district of Moka . Pizza Palace’s mission is to create a friendly and pleasing atmosphere for customers and staffs. We also

aim to provide the best possible value to our customers who desire great tasting pizza. Our customers are our neighbors as we are residents of our market area. We will also create and nurture a healthy, creative, respectful, and fun working environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce.

2.3 Keys to Success 

Delivering the customer value proposition.

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Marketing: promoting a new company, product, and delivery channels to a rural community.

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Product quality and consistency.

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Pricing effectively with respect to t he project quality and customer v alue proposition.

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Family-oriented atmosphere with occasional nights of family entertainment.

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Management: products delivered delivered on time, costs controlled, marketing marketing budgets managed. There is a temptation to fixate on growth at t he expense of profits.

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Reporting and controls in place for inventory and financials.

The objectives for Pizza Palace are:

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To satisfy our o ur client’s demands.

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Pizza Palace 

To establish the market presence in the locality .

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To reach healthy monthly sales by the end of the year, and average monthly sales increasing modestly by steadily through Year 3.

2.3

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To achieve double digit profit margins.

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To develop top-rated relationships with 2-4 well-respected, all encompassing distributors .

Description of Business Model

Initially, the business model will be based on word to mouth awareness. Thereafter advertising and promotion will be used. Different customer segments will be targeted such as adolescents. Our unique expertise will rest upon the skills of three chefs that have previously worked in famous Italians’ Pizzerias for about 10 years. High quality ingredients will be used to enhance the look and taste

of our Pizzas. Our proposed Menu will offer a variety of unique Pizzas for both Vegetarians and Nonvegetarians in different sizes at reasonable prices. To cater the needs for wish to enjoy a delicious pizza at home in fro nt of the television, home delivery service will be offered within certain boundaries. Furthermore, Pizza palace will be located in a readily accessible area with adequate parking facilities in the center of Saint-Pierre. Pizza Palace specializes in making superior P izzas. The restaurant combines hand-tossed dough, along with a secret sauce, that entices customers to return. The restaurant offers a wide menu selection to appeal to many different customer preferences. As more people are beginning to eat healthy, whole wheat options are available for pizza crusts and breadsticks.

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3.0 Management Team 3.1 Management Team We value the managers and staff as the single most important element in running a quality operation; the managers need to be all on the same page of operations. We have found that friendly strong managers make friendly strong crew people. From that crew comes the next generation of managers and a quality operation. Mr. Jacques Desiré , currently the front desk manager of Sunshine Resort. He has extensive extensive experiences in management and has a degree in database administration. His background is perfect for Pizzeria Palace. His duties will be as follows: 

Directed general restaurant operations.

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Monitored food quality during preparation

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Ensured a positive dining experience for every guest was maintained.

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Evaluated staffing requirements.

Mrs. Sophia Désiré, a 1991 graduate at the University of Mauritius with high honors and distinctions in business studies. Her marketing abilities and leadership skills will be very helpful to make our company a flourishing one. Her duties will be as follows:

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Balanced accounts at the end of every working day

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Provided restaurant owner with a financial report at the end of every two months

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Provided restaurant owner with proposals for the improvement of the restaurant and in improvement of working conditions for restaurant staff 

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Pizza Palace

3.2 Board of Directors I, the promoter of the Pizza Palace, will also be the director. With a degree in marketing and previous experience in restaurant management, I believe this is a wonderful opportunity to put my skills into practice.

3.3 Other Stakeholders Our banker will be the most fallible one, the Mauritius Commercial Bank which is deemed to be apt in making this project a successful one. We are also thinking of insuring us to the British American Insurance which offers lots of interesting schemes for small enterprises.

4.0 Organisation Structure, Ownership and Intellectual Property 4.1 Organisation Structure The proposed organisation structure will be as follows:

Director Front Desk Manager

Back Office Manager

Supervisors

Waiters

Chefs

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Pizza Palace

5.0 Industry Analysis 5.1 Industry Description The industry analysis has been done to analyze the strengths and weaknesses of Pizza Palace, and, to take advantages of opportunities, as well as, to minimize the impact of threats. Thus, a SWOT analysis has been carried out. Strengths: 

Its emphasis on customer satisfaction.

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First mover advantage.

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Unique expertise.

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Healthy menu options.

Weaknesses: 

It focuses mainly on imported goods (50% imported) and any delay in supply from Italy can slow down its business.

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High cost of some ingredients.

Opportunities: 

Pizza Palace can expand its business activities by locating in other regions in Mauritius, for example in the East.

Threats:

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Competitive actions.

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New Pizzerias opening in Saint-Pierre.

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5.2 Target Market  We want the adolescents, happy couples, high-end singles, and families, wealthy image seekers and compulsive spenders. We focus on these specific groups because these are the types of people who frequent other restaurants and snacks in the area. They are the ones that are willing to spend their money on good dining and service at a value price. We generally know the characteristics of our clientele with the available demographics. In the pizza delivery business, aggressive marketing is the key. Typically, having a pizza delivered to your home is an impulse purchase. This requires a strong advertising campaign including direct mailers and coupons placed in newspapers. Additionally, Pizza Palace will develop strategic marketing campaigns to target adolescents and employees from nearby offices.

5.3 Competitor Analysis The success or failure of any retail organisation depends on the ability to provide greater customer value and satisfaction than competitors. The competitors of Pizza palace are mainly Pizza Hut and Debonairs. offerings will be gathered to be able to use use these for information about the competitors’ price and offerings comparisons when deciding on their marketing strategies.

6.0 Marketing Plan 6.1 Product Strategy Our menu will include 4 sizes of pizzas with various combinations combinations of toppings. Predefined, high-margin pizzas will be highlighted on the menu. Additionally, breadsticks, beer, and soda soda will be included in the initial menu offerings. Our menu will be reviewed regularly in order to reflect the ever changing taste of customers.

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6.2 Pricing Strategy Competitive pricing strategy will be most suitable in our business. We also have to consider the distinctiveness of our product. it is the strategy of Pizza Palace to give a perception of higher value than its competitors, through its food, service and entertainment.

6.3 Marketing and Communication Strategy The following mediums of communications will be used: 

Press

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Radio and Television

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Word of Mouth

6.4 Promotion Strategy A “pull” promotional strategy will be used to create consumer demands for our prod uct, for example,

advertising, fidelity cards, and techniques like buy o ne get one free. This strategy targets its marketing efforts directly on the consumers with the hope that it will stimulate interest and demand for the product. Other promotional strategies would be: 

Birthday celebration of friends, relatives and birthday parties discount.

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Hot line number for ordering Pizza

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VIP club for regular customers.

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Possible implementation of an online or dering system.

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Sponsorship of local sports teams and events will also be used to broaden reach.

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7.0 Operation Plan The business strategy will revolve around providing a high quality,distinctive and unforgettable experience at affortable prices. Pizza Palace’s competitive priorities are quality, speed, cost and dependability. To support the business strategy, the operation strategy uses an array of measures as shown below.

Pizza Palace’s Palace’s operational plan Competitive

Quality, Speed and Cost

Priorities Volume

Low to high depending upon demand

Variety

High level of customisation

Process

Use of latest and sophisticated kitchen appliances to increase speed,

Technology

hence reducing running costs

Capacity Planning

Flexible

& Control

Hiring of additional staff during peak periods

Human Resource

Continuous training

Supply Chain

Close alliance with suppliers to benefit from competitive prices.

Management Quality

Quality-driven and customer-oriented

Innovation

Customer surveys to be carried out regularly to identify customer demands

Location

Strategic plot of land identified in the heart of Saint Pierre

Layout

Space audit to be carried out so as to make economical use of space and efficient flow of people.

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Pizza Palace

8.0 Financial Plan 8.1 Sources of funds

500,000 400,000 300,000 Rs

200,000 100,000 0 Own Own Fun Funds ds (50% (50%))

Loan Loan from from Bank Bank (50% (50%))

As seen in the figure above, capital investment will be derived from own funds and loan from bank in an equal percentage. Funds will be used primarily for construction of building, kitchen equipment, dining room décor, advertising expenses, as well as initial inventory. Remaining funds will be used as operating capital.

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8.2 Budget  th

th

The proposed budget for the years ending 30 December 2011 and 30 December 2012 are tabled below. Pizza Palace Cash Flow statement for the

th

th

30 December 2011

30 December 2012

Inflows

Rs’000

Rs’000

Sales turnover

1,000

1,200

100

110

Purchases

200

250

Electricity and water

50

55

Wages and salaries

200

225

Transport

90

100

Repairs and Maintenance

60

75

Interests

90

90

690

705

310

495

years ended:

Outflows

Advertising and Marketing Expenses

Net Cash Inflow

9.0 Critical Risk Factors New competitors setting up in Saint-Pierre will create a negative pressure on current market share. Our aim will be to advertise the distinctiveness distinctiveness of Pizza Palace’s food.

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To avoid break down in key equipment, regular maintenance will operate every months. Should any one chef fall sick, this might cause disruptions in the normal kitchen activities. To avoid this, a working plan should be organized. Troubles in the importation of the ingredients would affect the sales of our pizza. In this case, local ingredients of high quality will be used. Some local suppliers have already been identified. An ongoing review of the risk factors will be undertaken in order to be able to ensure the smooth running of the business.

10.0 Conclusion This business plan has provided a summary of our proposed strategies for running a pizzeria in SaintPierre, which will in fact, be the first one in the area. This will inevitably distinguish Pizza Palace and help to establish a reputation for itself. It is firmly believed that Pizza palace will be a huge success, whereby there will be more potential growth in the coming years.

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11.0 Appendix 11.1 Pizza Palace Menu Our menu will include 4 sizes of pizzas pizzas with various combinations of toppings. toppings. Predefined, high-margin pizzas will be highlighted on the menu. Additionally, breadsticks, beer, and soda will be included in the initial menu offerings. Bruschetta

Freshly chopped tomatoes, red onions, basil, balsamic vinegar and roasted garlic, with mozzarella, provolone and parmesan.

Four Cheese & Sundried Tomato

Sundried tomatoes, basil, roasted garlic, t omato sauce, goat cheese, mozzarella, provolone and parmesan.

BBQ Chicken

Put on your bib and light up the grill! Fr ee range chicken covered in our delicious BBQ sauce, roasted red onion, fresh garlic, basil, mozzarella, provolone and parmesan.

Farmers Market A farmer’s medley of roasted artichoke hearts, red onion, roasted zucch ini and roasted portobello with

tomato sauce, mozzarella, provolone, and parmesan.

Greek

Kalamata olives, sliced roma tomatoes, tomato sauce, feta cheese, mozzarella, provolone, parmesan and parsley. Zeus would approve.

Sausage & Tricolor Peppers

Sweet Italian sausage, roasted tricolor tr icolor peppers, tomato sauce, mozzarella, provolone, parmesan, and chili flakes.

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The Founder's Pie

Free range chicken, kalamata olives, roasted red onion, tomato sauce, par mesan, mozzarella, provolone and gorgonzola. Vaughan and Mike love it on multigrain crust.

Spinach and Artichoke

Sauteed spinach, artichoke hearts, roasted garlic, tomato sauce, mozzarella, provolone and parmesan.

Big Kahuna

Hawaiian style pizza with bacon, sweet organic pineapple, red onion, tomato sauce, mo zzarella, provolone, and parmesan.

Pizza Toppings Vegetables

Beetroot, Black beans, broccoli, carrot, eggplant, lettuce, mushroom, olives, spinach. Herbs and Spices

Cardamon, chili dried, coriander, garlic, parley, pepper, rosemary, bay leaf. Sea food

Prawn, Lobster, Oysters, Salmon, Squid, and Tuna. Cheese

Camember, Chedar, Gorgonzola, Mozzarella, provolone, ricotta. Meats

Bacon, BBQ Chicken, Beef, Chicken, Ham, Salami, Sausage

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