Business Plan for Lantiguo Restaurante

Executive summary

Lantiguo Restaurante is hospitality and restaurant industry and it provides food specifically Spanish dishes. A website had been developed for interacting with customers for Lantiguo Restaurante. In this paper the mission, vision, objectives, marketing strategy and financial statements have been explained. The products served are variety of Spanish dishes and customers can place order after visiting the restaurant and also in online mode. In a span of two years the management can expect breakeven point. The capital will be raised through various modes with an objective to minimize the cost of capital. Lantiguo Restaurante has its website and customers can register to get updates and they are also given discounts if they place order in online mode.

Business Plan for Lantiguo Restaurante

Lantiguo Restaurante serves popular dishes for breakfast, lunch and dinner. The customers can physically place order for food products both in offline mode and online mode. Lantiguo Restaurantes had adopted expansion strategy because of its success in the present location. As a part of its expansion it had developed a website for its branch in Miami. In future there is also opportunity to expand globally. In the modern world people are showing interest for variety dishes especially Spanish dishes.

Since there is potential demand I have decided to open Lantiguo Restaurante in Miami Florida. Business plans serve as the framework for your company and provide benchmarks (Hull, 2013). Business plan gives route map for management, employees and other stakeholders about the sustainability of business. Strategy means long term plan and it consists of mission, vision, market strategy, financial projections and environmental analysis.

Mission

To provide various Spanish dishes with high quality and at affordable price.

Vision

Lantiguo Restaurante should become synonymous to tasty food and it must have global brand image.

Industry: Hospitality/ Restaurant

Proposed Location: Miami, Florida, United States of America

Objectives of Lantiguo Restaurante

1. To provide high quality food at affordable price.
2. To provide variety of Spanish dishes with traditional taste.
3. Maintaining long term relationship with customers and achieving customer delight.
4. Considering feedback from every customer and implementing ‘continuous improvement’ in business process.
5. To become best choice for customers who like Spanish dishes.

Culture of Miami Florida

Over the last decades, culture has become an essential ingredient in the economic development strategies of many cities. Urban growth had increased dramatically in Miami Florida and disposable income had increased at the same rate. According to Wade et al branding is more important for internalization in restaurant business industry. Customers in Miami Florida have the habit of spending quality time in restaurants. Further there is potential demand from solo diners in Miami and customers visit the hotel for having specific food items.

People in Miami always welcome new and variety dishes and they visit restaurant throughout the week. Due to technological advancements people in Miami are placing online order for food products. In Miami people give priority for food and entertainment in the same ratio therefore potential market would be there for Lantiguo Restaurante. However culture is dynamic and it has both positive impact and negative impact on life style of people. Due to massive urbanization people have less time for cooking and they are looking for delicious items for their breakfast, lunch and dinner. Hence Lantiguo Restaurante can anticipate potential demand from Miami.

However Spanish culture with regard to ambience will be reflected and customers can get experience of having food in Spain. Some of the dishes are also customized for meeting the expectation of customers from diverse background. All the employees especially chefs will be sent for parent company or directly to Spain for updating themselves with innovative dishes.

Company ownership

Lantiguo Restaurante is private limited company. It is established legally through Company Law in United States. It will have approximately 40 employees and the number will grow eventually. The company generates funds through bank loans, from investors and issue of shares. The company will declare financial status from time to time like other private companies. Initially the dividends might be low for first annual year but later shareholders and other investors can anticipate huge profits or dividends. According to Liu et al (2017) the experienced employee with self-efficacy leads to productivity in restaurant business.

SWOT Analysis

The internal environment of an organization is controllable, and it can be analyzed through strengths and weaknesses. The uncontrollable external environment can be analyzed through opportunities and threats of an organization (Hitt, Ireland, & Hoskisson, 2013). The SWOT analysis for Lantiguo Restaurante is explained through Table 1. It is evident from the SWOT analysis that Lantiguo Restaurante is having huge market potential. There is opportunity for further growth of the company. Even though new entrants may enter into restaurant and hospitality there will be always great future for Lantiguo Restaurante.

Table 1: SWOT Analysis

Strengths Weaknesses

• Quality food at competitive price
• Variety of dishes
• Customer online ordering.
• Best chefs with huge experience in preparation of Spanish dishes.
• Potential market for Spanish dishes.
• Availability of resources for food preparation.
• Only Spanish dishes are offered.
• Uneven demands.
• May not fulfill orders during weekends.
• Employee retention.

Opportunities Threats

• Entry into new markets.
• Home delivery of food products.
• Include items in menu.
• Expansion of seating capacity.
• Tough competition from local restaurants.
• New rules for food safety
• Consequences for any mistake while preparation of food.
• Ever changing tastes and preferences of customers.
• Economy cycles like recession and depression.

From SWOT analysis it is evident there is bright future for Lantiguo Restaurante in Miami. Since Miami consists of people from diverse backgrounds there can be potential demand for Lantiguo Restaurante. Even through restaurants operate in competitive environment there would be potential customers because of increasing population in major cities in United States.

Products and services

The products mentioned in Table 2 will be available throughout the day from 10:00 AM to 11:00 PM. Initially Lantiguo Restaurante will run for two shifts. Customer can place an order through online mode and they can also reserve the tables through online. For regular customers membership card will be issued for better customer relationship management. For every three months the menu will be updated with new dishes based on the feedback of customers of Lantiguo Restaurante.

Table 2: List of products

Product Description

Picada It is made with combination of olive oil, roasted bread, garlic and other aromatics.

Pisto It is also known as ratatouille and made up of variety of vegetables.

Spanish omelette Spanish Omellette is made of eggs and other tender ingredients.

Croquette Mashed potatoes along with crumbed bread with béchamel sauce.

Tortilla de Patatas It is prefect food items for breakfast and lunch and it is traditional dish in Spain.

Frittata It is finished of eggs and it comes up with an inventive edition of the tortilla.

Paellaa ala Valenciana It is made of meat, white beans, green beans, rice, snails, saffron and rosemary.

Services of Lantiguo Restaurante

Customers can order the products and delivery is made within fixed distance surrounding the Lantiguo Restaurante. The customers can also reserve the tables and place order online before they arrive at Lantiguo Restaurante. Home delivery is made with support of third party organizations. Whenever customer states that food is not delivered in right time then cash back would be given to customer. Further Lantiguo Restaurante is planning to implement customized order which mean inputs would be taken while preparing the dish with regard to ingredients. In modern world people are having less time therefore they can access the company details through online mode like website and also through mobile phone.

Marketing strategy

Marketing strategy can be referred as a plan for developing mix of product, price, place and promotion to meet target customer expectations. At present the same marketing strategy of Lantiguo Restaurante will be implemented in its new market in Miami also. The culture of parent company will be implemented in all its new branches both at nationwide and global markets.

Marketing plan can be stated as a document about the business process of organization and it includes all the possibilities and challenges while doing business in real time. Customers are centric to Lantiguo Restaurante and their inputs are always taken at regular intervals for betterment of Lantiguo Restaurante.

Product startegy

Food items are primary products of Lantiguo Restaurante. The services like online food ordering, reservation and quality are provided by Lantiguo Restaurante. The core product of Lantiguo Restaurante is food prepared in Spanish style. The target market consists of all the customers who visit restaurants irrespective of their demographic profile. Quality food with hygienic environment is served to customers. The customers can find food description and ingredients through Lantiguo Restaurante website. An exclusive website is designed for Lantiguo Restaurante which gives complete profile of the organization. The customers can contract with the email address provided for any queries before they visit the store.

Price strategy

The cost of breakfast items range from $6 to $9. The lunch cost would be from $7 to $12 and dinner cost would be from $8 to $12. Customers are given discounts during weekends and also during festivals. The customers who have taken membership cards are given minimum ten percent discount on every bill. At Lantiguo Restaurante market penetration strategy would be implemented. The prices of all the items in menu are decided based on competitor pricing strategy.

The pricing will include all the taxes and customers are given an opportunity of free delivery if they make online order. However prices might be little bit high during peak hours and also during weekends only to maintain the additional costs incurred by recruiting more employees in such situations.

Place strategy

Customers visit the store directly at any time from 10:00 AM to 11:00 PM. The food will be served immediately after the order is placed. For some specific dished maximum of fifteen minutes will be waiting period. The customers can place online order through its website. The food is delivered at customer place in maximum one hour time. However customers can reject or get their money back if food is not served as promised by the company. A third party organization will deliver the food products which are ordered in online mode.

Food is perishable item therefore inventory will not be made and Lantiguo Restaurante encourages customers who given enough time for preparation through discounts. For every order the feasibility will be checked before accepting for home delivery. However initially returns will not be encourages unless the products is not delivered as promised at the time of placing an order.

Promotion strategy

Food coupons will be given to potential customers. Customers will be given coupon code when they purchase other items in online mode. The advertisements will sent through personalized SMS like birthday wished, wedding anniversaries and other occasion for all the customers who have taken membership at Lantiguo Restaurante. Among the type of promotions ‘word of mouth’ is more important for restaurant business. Hence customers will be encouraged to promote the restaurant in their networks. Lantiguo Restaurante will also communicate with all the stakeholders through its social networking sites like Facebook and Twitter.

Human resource management at Lantiguo Restaurante

Approximately fifteen employees will be recruited on permanent basis. Recruiting will be done by posting advertisements in employee portals. First priority will be given to employees with having more than ten years in restaurant business. A competitive salary will be paid for attaining employee retention. Later according to the situation employees will be recruited on contractual basis. Part-time employees will be recruited during weekends and help of third party organization would be taken for delivery of food products.

Funding requirements

Approximately $1.5 million would be invested in establishing Lantiguo Restaurante in Miami. The capital required will be procured from various sources. The reason for procuring funds from different sources is to minimize cost of capital and also to reduce risk. Lantiguo Restaurante is a limited company and it can source funds through loans, debentures, equity and through venture capital. The following Table 3 shows the proportion of funding for Lantiguo Restaurante. The funds shown in Table 3 are estimations and may slightly vary according to the market situation. According to Scarborough and Cornwall (2015) entrepreneurs are encoruaged throuhg seed capital but at the same time it may not be for expansion of business. Hence procurement of funds should be done very carefully for Lantiguo Restaurante.

Table 3: Funding for Lantiguo Restaurante

Source Amount (in USD)

Bank loan $400,000

Equity $600,000

Debentures $300,000

Venture Capital $200,000

Total $1,500,000

Financial projections

The breakeven point for Lantiguo Restaurante can be attained within 2 years. The profits each month the profit would be approximately $62,500 after removing taxes, costs and other expenses. In a span of two years all the investment would be back to management for them onwards Lantiguo Restaurante will definitely have tremendous profits. However all these projections are made in pessimistic conditions but if external environment is supportive then within one and half years the breakeven point can be attained.

Possible challenges for Lantiguo Restaurante

Customer tastes and preferences are dynamic and people may like some other food. The economic environment may lead to economic downturns like recession and depression. At present customers are accepting traditional dishes but in future they may like only organic food because of health consciousness. Even the customers with membership may feel boredom with existing menu. The increasing prices of raw material like vegetables, meat and eggs may pose a threat. Employee retention especially chefs would be the biggest challenge in restaurant business. The legal environment is very strict with regard to food safety therefore any small mistake may lead to closure of the business. Modern customers are treating restaurant as a leisure place for example customers can spend lot of time in Startbucks whereas at Lantiguo Restaurante space may not be available for longer period of time.

Conclusion

Lantiguo Restaurante will fill the gap in the restaurant industry in Miami. At present most of the people are not able to access quality food especially Spanish dishes. The customers will be delighted through innovative and delicious dished of Lantiguo Restaurante. Since every individual is customers for food products a huge potential market can be expected for Lantiguo Restaurante.