BUSINESS PLAN

Name Lokesh Tulloo

Student ID 1014560
Module GEM MGT 2251Y: ENTREPRENEURSHIP/LEADERSHIP/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, 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

2|Page
 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

3|Page
 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 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.

4|Page
 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.

 Marketing: promoting a new company, product, and delivery channels to a rural community.
 Product quality and consistency.
 Pricing effectively with respect to the project quality and customer value proposition.
 Family-oriented atmosphere with occasional nights of family entertainment.
 Management: products delivered on time, costs controlled, marketing budgets managed. There
is a temptation to fixate on growth at the expense of profits.
 Reporting and controls in place for inventory and financials.

The objectives for Pizza Palace are:

 To satisfy our client’s demands.

5|Page
 Pizza Palace
 To establish the market presence in the locality .
 To reach healthy monthly sales by the end of the year, and average monthly sales increasing
modestly by steadily through Year 3.
 To achieve double digit profit margins.
 To develop top-rated relationships with 2-4 well-respected, all encompassing distributors.

2.3 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 Non-
vegetarians in different sizes at reasonable prices. To cater the needs for wish to enjoy a delicious pizza
at home in front 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 Pizzas. 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.

6|Page
 Pizza Palace
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 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.

 Monitored food quality during preparation
 Ensured a positive dining experience for every guest was maintained.
 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:

 Balanced accounts at the end of every working day

 Provided restaurant owner with a financial report at the end of every two months
 Provided restaurant owner with proposals for the improvement of the restaurant and in
improvement of working conditions for restaurant staff

7|Page
 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
Back Office
Front Desk Manager
Manager

Supervisors

Waiters Chefs

8|Page
 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.

 First mover advantage.
 Unique expertise.
 Healthy menu options.

Weaknesses:

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

 Competitive actions.
 New Pizzerias opening in Saint-Pierre.

9|Page
 Pizza Palace
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.
information about the competitors’ price and offerings will be gathered to be able to use these for
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 of toppings. Predefined, high-margin
pizzas will be highlighted on the menu. Additionally, breadsticks, beer, and 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.

10 | P a g e
 Pizza Palace
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
 Radio and Television
 Word of Mouth

6.4 Promotion Strategy

A “pull” promotional strategy will be used to create consumer demands for our product, for example,
advertising, fidelity cards, and techniques like buy one 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.

 Hot line number for ordering Pizza
 VIP club for regular customers.
 Possible implementation of an online ordering system.
 Sponsorship of local sports teams and events will also be used to broaden reach.

11 | P a g e
 Pizza Palace
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 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.

12 | P a g e
 Pizza Palace
8.0 Financial Plan

8.1 Sources of funds

500,000

400,000

300,000
Rs
200,000

100,000

0
Own Funds (50%) Loan from Bank (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.

13 | P a g e
 Pizza Palace
8.2 Budget
The proposed budget for the years ending 30th December 2011 and 30th December 2012 are tabled
below.

Pizza Palace

Cash Flow statement for the 30th December 2011 30th December 2012
years ended:
Inflows Rs’000 Rs’000
Sales turnover 1,000 1,200

Outflows
Advertising and Marketing 100 110
Expenses
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

Net Cash Inflow 310 495

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 of Pizza Palace’s food.

14 | P a g e
 Pizza Palace
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 Saint-
Pierre, 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.

15 | P a g e
 Pizza Palace
11.0 Appendix

11.1 Pizza Palace Menu

Our menu will include 4 sizes of pizzas with various combinations of 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, tomato sauce, goat cheese, mozzarella, provolone and
parmesan.

BBQ Chicken
Put on your bib and light up the grill! Free 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 zucchini 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 peppers, tomato sauce, mozzarella, provolone, parmesan, and
chili flakes.

16 | P a g e
 Pizza Palace
The Founder's Pie
Free range chicken, kalamata olives, roasted red onion, tomato sauce, parmesan, 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, mozzarella,
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

17 | P a g e