010-11-22 Pizza Palace - Summary Business Plan - PDF

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Simple business Plan of a new Pizzeria.
Simple business Plan of a new Pizzeria.

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NameLokesh TullooStudent ID
1014560
Module
GEM MGT 2251Y: ENTREPRENEURSHIP/LEADERSHIP/INNOVATION
Tutor
Mrs. Dimple Seewoogobin
Course
Computer Science
Date
22 November 2010

BUSINESS PLAN
Pizza Palace
2 |P a g e
Contents
1.0 Executive
summary ................................................................................................................................. 42.0 The
Business ............................................................................................................................................ 42.1
The Opportunity ..................................................................................................................................
42.2 Vision, Mission and
Objectives ........................................................................................................... 52.3 Keys to
Success ................................................................................................................................... 5
2.3
Description of Business Model ...........................................................................................................
63.0 Management
Team ................................................................................................................................. 73.1
Management Team .............................................................................................................................
73.2 Board of
Directors ............................................................................................................................... 83.3 Other
Stakeholders ............................................................................................................................. 84.0
Organisation Structure, Ownership and Intellectual Property
.......................................................... 84.1 Organisation
Structure ........................................................................................................................ 85.0 Industry
Analysis ..................................................................................................................................... 95.1
Industry Description ............................................................................................................................
95.2 Target Market ...................................................................................................................................
105.3 Competitor
Analysis .......................................................................................................................... 106.0 Marketing
Plan ...................................................................................................................................... 106.1
Product Strategy ...............................................................................................................................
106.2 Pricing
Strategy ................................................................................................................................. 116.3
Marketing and Communication Strategy ..........................................................................................
116.4 Promotion
Strategy ........................................................................................................................... 11

Pizza Palace
3 |P a g e 7.0 Operation
Plan ...................................................................................................................................... 128.0
Financial Plan ........................................................................................................................................
138.1 Sources of
funds ................................................................................................................................ 138.2
Budget ............................................................................................................................................... 149.0
Critical Risk Factors ...............................................................................................................................
1410.0
Conclusion ...........................................................................................................................................
1511.0
Appendix .............................................................................................................................................
1611.1 Pizza Palace
Menu ........................................................................................................................... 16

Pizza Palace
4 |P a g e
1.0 Executive summary
Pizza palace is a new player in the restaurant industry of Saint-Pierre. Bolstered by
the need for morechoices in family-oriented dining experiences, combined with
the option for home-delivery, therestaurant 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 preferredpizza provider to the area.
We believe a locally-owned restaurant is the best option to serve the
rapidlygrowing population with a fresh, unique menu.This business plan calls for
an exciting, profitable start-up year ahead with future forecasted growth aswe
meet the demands of the community. In all, this plan describes a healthy
company with goodgrowth 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 particularlyPizza is much appreciated by Mauritians of all age
groups. It can be noted that branches of Pizzahut andDebonairs, 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 orrather 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
greatit would be to have a pizzeria providing nice pizzas in the locality- the genesis
of my decision to open apizzeria 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.

Pizza Palace
5 |P a g e Pizza palace will cater for the needs of different customer
segments, by providing a wide range of pizzasat affordable prices together with a
friendly atmosphere that will lead to delightful moments spent withfamily 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 alsoaim
to provide the best possible value to our customers who desire great tasting
pizza. Our customersare 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 whichour employees are fairly compensated and encouraged to
respect the customer and the quality of theproduct 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. Thereis 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.

Pizza Palace
6 |P a g e


To establish the market presence in the locality .



To reach healthy monthly sales by the end of the year, and average monthly sales
increasingmodestly 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 andpromotion 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 tasteof 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 pizzaat 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 inthe center of
Saint-Pierre.Pizza Palace specializes in making superior Pizzas. The restaurant
combines hand-tossed dough, alongwith a secret sauce, that entices customers to
return. The restaurant offers a wide menu selection toappeal to many different
customer preferences.As more people are beginning to eat healthy, whole wheat
options are available for pizza crusts andbreadsticks.

Pizza Palace
7 |P a g e
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 strongmanagers make friendly strong crew people.
From that crew comes the next generation of managersand a quality
operation.Mr. Jacques Desiré , currently the front desk manager of Sunshine
Resort. He has extensive experiencesin management and has a degree in
database administration. His background is perfect for PizzeriaPalace.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 inbusiness studies. Her
marketing abilities and leadership skills will be very helpful to make our company
aflourishing 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 inimprovement of working conditions for restaurant staff

Pizza Palace
8 |P a g e
3.2 Board of Directors
I, the promoter of the Pizza Palace, will also be the director. With a degree in
marketing and previousexperience in restaurant management, I believe this is a
wonderful opportunity to put my skills intopractice.
3.3 Other Stakeholders
Our banker will be the most fallible one, the Mauritius Commercial Bank which is
deemed to be apt inmaking this project a successful one.We are also thinking of
insuring us to the British American Insurance which offers lots of
interestingschemes 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
ManagerSupervisorsW a i t e r s C h
e f s Back OfficeManager
Pizza Palace
9 |P a g e
5.0 Industry Analysis
5.1 Industry Description
The industry analysis has been done to analyze the strengths and weaknesses of
Pizza Palace, and, totake advantages of opportunities, as well as, to minimize the
impact of threats. Thus, a SWOT analysishas 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 slowdown its business.

High cost of some ingredients.Opportunities:

Pizza Palace can expand its business activities by locating in other regions in
Mauritius, forexample in the East.Threats:

Competitive actions.

New Pizzerias opening in Saint-Pierre.
Pizza Palace
10 |P a g e
5.2 Target Market
We want the adolescents, happy couples, high-end singles, and families, wealthy
image seekers andcompulsive spenders. We focus on these specific groups
because these are the types of people whofrequent other restaurants and snacks
in the area. They are the ones that are willing to spend theirmoney on good
dining and service at a value price. We generally know the characteristics of
ourclientele with the available demographics.In the pizza delivery business,
aggressive marketing is the key. Typically, having a pizza delivered to yourhome is
an impulse purchase. This requires a strong advertising campaign including direct
mailers andcoupons placed in newspapers.Additionally, Pizza Palace will develop
strategic marketing campaigns to target adolescents andemployees from nearby
offices.
5.3 Competitor Analysis
The success or failure of any retail organisation depends on the ability to provide
greater customer valueand 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 forcomparisons 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-marginpizzas will be highlighted on the menu. Additionally,
breadsticks, beer, and soda will be included in theinitial menu offerings.Our menu
will be reviewed regularly in order to reflect the ever changing taste of customers.

Pizza Palace
11 |P a g e
6.2 Pricing Strategy
Competitive pricing strategy will be most suitable in our business. We also have to
consider thedistinctiveness of our product.it is the strategy of Pizza Palace to give
a perception of higher value than its competitors, through itsfood, 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 prod
uct, 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 stimulateinterest 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.

Pizza Palace
12 |P a g e
7.0 Operation Plan
The business strategy will revolve around providing a high quality,distinctive and
unforgettableexperience at affortable prices.
Pizza Palace’s
competitive priorities are quality, speed, cost anddependability. To support the
business strategy, the operation strategy uses an array of measures asshown
below.
Pizza Palace
’s operational plan
CompetitivePriorities
Quality, Speed and Cost
Volume
Low to high depending upon demand
Variety
High level of customisation
ProcessTechnology
Use of latest and sophisticated kitchen appliances to increase speed,hence
reducing running costs
Capacity Planning& Control
FlexibleHiring of additional staff during peak periods
Human Resource
Continuous training
Supply ChainManagement
Close alliance with suppliers to benefit from competitive prices.
Quality
Quality-driven and customer-oriented
Innovation
Customer surveys to be carried out regularly to identify customerdemands
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 spaceand efficient
flow of people.
Pizza Palace
13 |P a g e
8.0 Financial Plan
8.1 Sources of funds
As seen in the figure above, capital investment will be derived from own funds
and loan from bank in anequal 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.
0100,000200,000300,000400,000500,000O w n F u n d s ( 5 0 % ) L o a n f r o m
Bank (50%)
Rs
Pizza Palace
14 |P a g e
8.2 Budget
The proposed budget for the years ending 30
th
December 2011 and 30
th
December 2012 are tabledbelow.
Pizza PalaceCash Flow statement for theyears ended:30
th
December 2011 30
th
December 2012Inflows
Rs’000
Rs’000
Sales turnover
1,000 1,200Outflows
Advertising and MarketingExpenses100 110Purchases 200 250Electricity and
water 50 55Wages and salaries 200 225Transport 90 100Repairs and Maintenance
60 75Interests 90 90
690 705Net 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.
Pizza Palace
15 |P a g e 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, localingredients 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 smoothrunning 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 helpto establish a reputation for itself. It is
firmly believed that Pizza palace will be a huge success, wherebythere will be
more potential growth in the coming years.

Pizza Palace
16 |P a g e
11.0 Appendix
11.1 Pizza Palace Menu
Our menu will include 4 sizes of pizzas with various combinations of toppings.
Predefined, high-marginpizzas will be highlighted on the menu. Additionally,
breadsticks, beer, and soda will be included in theinitial 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 andparmesan.
BBQ Chicken
Put on your bib and light up the grill! Free range chicken covered in our delicious
BBQ sauce, roasted redonion, 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 withtomato sauce, mozzarella, provolone, and
parmesan.
Greek
Kalamata olives, sliced roma tomatoes, tomato sauce, feta cheese, mozzarella,
provolone, parmesanand parsley. Zeus would approve.
Sausage & Tricolor Peppers
Sweet Italian sausage, roasted tricolor peppers, tomato sauce, mozzarella,
provolone, parmesan, andchili flakes.

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