The methodologies and approaches to restaurant design are as varied as the restaurant concepts in existence today. In the United States alone, there are nearly 1,000,000 restaurants; each trying hard to differentiate itself from the next. In this article, we hope to provide you some insight in to the considerations and complexities of restaurant design and provide insights relevant oth for the mom!and!pop start!up as well as to the multi!national mega chains pursing renovations and new growth concepts. 1. Concept Development " The overall process of restaurant design, remodeling, planning, etc is often referred to as the discipline of #restaurant concept development$. If you are creating a new prototype, thin% of it as creating a new concept " concept development. &estaurant concept development involves restaurant design, ut it is a larger circle which encompasses other considerations such as mar%et and competitive research, emerging and fading trends, financial modeling and what!if scenarios, randing and rand evolution, supply chain issues, and potentially even rand portfolio management 'for hospitality enterprises with multiple rands in a family that must articulate(. )hether a restaurant renovation or in developing a completely new prototype, restaurant concept development is and should e involved. *ne cannot loo% at restaurant design in a vacuum or involving strictly the interior designers and architects. 2. Restaurant Design Budgets " Usually one of the first +uestions we,re as%ed y those emar%ing on restaurant design pro-ects relates to udget. .ow much does it cost/ )ell, udgets can swing dramatically from pro-ect to pro-ect, ut here are some rules of thum. 0enerally, restaurants are uilt etween 123 " 1400 a s+uare foot 'some mega pro-ects or ultra!high!end pro-ects have gone for a few thousand a s+uare foot(. The cost for #restaurant design$ and planning is often around 105 of the construction udget 'considering strictly the design phases of the pro-ect, not larger concept development issues involved in large scale development pro-ects(. The type of restaurant you are uilding is certainly a factor " you,ll spend more per s+uare foot for a fine dining restaurant than a fast!casual concept, generally spea%ing. 6lso, you should expect an entirely different financial model in approaching the creation of a new restaurant concept you plan to roll!out nationwide versus a single one!off concept. The former re+uires much more planning and development. 6n average &ed 7oster is elieved to cost around 1180 per s+uare foot and an average Staruc%s around 123 per s+uare foot. .owever, these companies have spent millions and millions in design, randing and purchasing planning9efficiencies, so a start!up shouldn,t expect to e anywhere near these ranges in creating a new concept from scratch. I find it ama:ing how often someone thin%s they will e the next Staruc%s within a 10 year period and with a 1300,000 investment. Staruc%s has spent hundreds of millions of dollars to perfect what we see today in their latest restaurant prototype. It,s more than -ust wishful thin%ing to thin% it can e duplicated as a growth concept within the cost of what they can today uild a single unit they,ve spent so much perfecting. ;ega chains, li%e <arden, can afford seven!figure per year =xecutive >ice ?resident,s and teams of hundreds wor%ing on a new concept. It,s elieved well over 110m '#soft$ costs( was spent developing -ust the prototype plans for their heralded Season,s 38 concept. <arden is the world,s most successful casual dining restaurant chain, so it,s fair to thin% they weren,t -ust urning money with their investment. @an a new prototype e created for less than 110m/ *f course. Ay all means. It,s less li%ely though that the next illion dollar rand can e conceived within less than the cost of opening a single unit though. 6t a minimum, you can expect to spend a lot more in the years to come correcting the mista%es of the under! funded prototype. There,s a saying, #;easure twice and cut once$. 3. Restaurant Design Considerations " There are literally hundreds or thousands of elements to ta%e in to consideration in restaurant design. Today,s successful restaurant concepts are aout more than -ust #good food, good service, good atmosphere$. The elow list is y no means comprehensive, or even in a particular order of priority, ut it does provide you with a sense for how complex these pro-ects can e and why it is common to see experienced outside professional restaurant design consultants intimately involved in ringing to life today,s successful new restaurant concepts. 1. Arand ?ersonality " Arands, li%e people, have personalities. 6 person can ecome %nown for acting9ehaving a certain way. So too should your rand. The personality of your rand should e defined and programmed. This programming should happen efore the first s%etch of the restaurant design is even considered. 8. Arand ?romises " )e would all li%e to thin% we have high integrity. Integrity definedB saying what youre going to do and then doing what you said you would by when you said you would. Cor a rand to have integrity, one must estalish its distinct set of promises that differentiate it and define it. 6 strong rand is when the promises are met with integrity. 4. Arand ?ositioning " There,s a saying that #Dou don,t merely want to e considered the est of the est, you want to e considered the only one who does what you do.$ The idea of #etterness$ 'we have a etter urger, etter restaurant design, etc( is su-ective. )hen you are the #only$ though, you ecome a sole! source provider and can dominate a mar%et. E. Silverware " )e often don,t thin% consciously aout our silverware when eating in a restaurant, ut it can ma%e an impression of the food efore you even ta%e your first ite. 7ight, flimsy and cheap silverware will give an impression of light, flimsy and cheap food. That,s why you will notice that many high!end stea%houses use large and heavy %nives. )hile part of the taleware these things all comine to reflect on the restaurant and are all considerations in the overall restaurant design and concept development. 3. Uniforms " &estaurant uniforms have come a long way since the day of the fine dining #mon%ey suit$. =ven celerity fashion designers are getting in on the action and designing uniforms for restaurants; and why not/ Some chains have tens of thousands of employees and each is an amassador of the rand. The uniform is an extension of the rand and therefore should e viewed through the same lens as your overall restaurant design process. F. >entilation " ;any regions around the world are outlawing smo%ing in pulic places. I,m still ama:ed y how many places don,t. I,m not a smo%er, ut I would imagine not even smo%ers want to wal% out of a restaurant smelling li%e an ashtray. >entilation is aout more than the smells we don,t want to smell 'more elow on #aroma design$(. Cor instance, imagine a restaurant conceived in Clorida eing uilt in ;assachusetts " you have to ta%e an entirely different approach to seasonal temperature fluctuations. 7arge cavernous spaces can e drafty. 6s you can see, ventilation is an important consideration in restaurant design and -ust another example as to why this is aout so much more than -ust good aesthetics and tasteful design selections. G. Aathrooms H Arand Immersion " )e,ve all heard the adage that customers assume that y extension an un%empt athroom must mean a disastrously un%empt %itchen. #If they allow their athrooms " which are in plain sight of customers " to get li%e this, what must the %itchen loo% li%e since it,s out view/$ )e elieve that more than -ust %eeping a athroom clean, the athroom presents an opportunity to further differentiate a restaurant and ma%e an impression. Dou should e ale to put a lindfold on a customer, spin them 10 times, drive them across town, put them in your athroom and ta%e off the lindfold and they should e ale to tell you exactly where they are. That,s great athroom design. <istinctive and communicative of the rand. Staruc%s is a good example of this concept. =ven without seeing the logo, you %now you are in a Staruc%s athroom. The concept can e ta%en much further though. So, is this design or is this mar%eting/ The two are inextricaly intertwined in our opinion. 2. &estaurant <esign for @elerities " These days there seem to e lots of celerities getting in to the restaurant usiness and also a surprising numer of restaurateurs and chefs ecoming celerities for already eing in the restaurant usiness. Sure, there has long een the allure of the usiness " snapping your finger and getting a tale, the misconceptions of a restaurant,s profitaility, and the general sex appeal of eing a restaurateur. .owever, an extra layer has een added to the restaurant usiness for celerities " rand extension. &estaurants, li%e people, have a #rand personality$ and, when properly executed, a restaurant can extend a celerities empire with a wal%!in advertisement. @elerities such as ;agic Iohnson, =va 7ongoria, Iustin Timerla%e, 0loria =stephan and others have not only made successful usinesses with their restaurants, they have extended their rand in to new arenas. Aoth restaurateurs and celerities could learn a thing or two from one another, and it,s certain to me those exchanged tips would have a lot to do with principles of restaurant design and randing. J. <oor Knos @an Spea% " )e,ve all heard the expression #dum as a door%no$. )hile door%nos don,t have an inherent intelligence, they can actually +uite smartly communicate on your ehalf. )e usually don,t pay attention to a door%no; unless, that is, the door%no is out of place. <oor%nos actually spea% on ehalf of your restaurant efore the hostess or greeter staff. The texture, the weight, the materials, the style, the oviousness or understated nature of the door%no all communicate the rand whether y accident or design. 10. &estaurant ;enu <esign " The most important piece of mar%eting collateral for a restaurant is its menu. 6 menu can,t e viewed as simply an inventory listing of items for sale with a corresponding price. It must e viewed as the single most important tool in showcasing your restaurants offerings, culinary philosophy and rand attriutes. The weight, si:e, paper, presentation, fonts and typographies, photos, use of language and more are all important considerations in your restaurant menu. The menu should e viewed as an extension of the restaurant design " fully integrated in the rand personality and positioning. 11. Storage Leeds " <o you plan on receiving lots of small deliveries in the wee% and having a high turnover of inventory, or do you plan to purchase in ul% for savings and store on!site/ )ill your distriutor let you uy in ul% and store in their warehouse without an additional fee/ <o you have a lot of high!value inventory that needs special security measures 'you don,t store &emy ;artin 7ouis >III the same as you store ar nap%ins(. This is an example of operational and functional design considerations, which aren,t part of the typical interior design curriculum. )here design meets function is often a gap for restaurant designers without deep restaurant industry experience. 18. &efrigeration Leeds " )ill you have a lot of perishales on your menu that re+uire refrigeration, or are you ringing in oxes of fro:en wings and Crench fries/ 6 restaurant concept with 80 eers on tap will have dramatically different refrigeration needs than an ice cream store. 14. 7ighting <esign " Dou can easily con-ure in your mind the image of flic%ering florescent lights over a grid of office cuicles and %now it,s not a place you want to e. )e may watch a ug lamp in ama:ement that ugs continuously fly in to the fatal electric shoc%, ut we are doing the same thing in our own world. Cor reasons the layman can,t easily explain, lighting can captivate their mood and their wallets. @andles are romantic. &ed lights ma%e us stop 'and hungry, incidentally(. 7ow lighting can ma%e us relaxed. Staff need tas% lighting. 7ighting is a highly speciali:ed area of design. 6 restaurant without a thoughtfully conceived lighting plan is li%e <isney without firewor%s or salt without pepper. 1E. 6coustical <esign " 6 restaurant engages all of the senses. @ertainly sight, smell, taste and touch considered in restaurant design pro-ects, ut what aout sound/ Des, the restaurant industry and restaurant concept development has ecome so competitive that one must consider acoustical design. Is your restaurant est suited for peace and +uiet or would you e etter suited to have a ar that feels usy and ustling/ *ne restaurant in Spain was dreadfully slow and aout to go out of usiness. The owner pumped the recorded sound of a usy restaurant out on to the sidewal% streets and low!and!ehold the restaurant was pac%ed. 7i%ewise, where we do or don,t hear music and amient noise can ma%e an impact. Cor example, many night clus design areas that ma%e it easy to tal% to someone you met on a dance floor where you couldn,t hear yourself thin%. 6nother example it the athroom " here is an area where you don,t want to hear other people at all; random people noises in a star%ly +uiet athroom can e uncomfortale for all involved. 13. 6roma <esign " Sure, the %itchen emits an aroma which should e pleasant and appealing. This doesn,t happen y accident though. )ithout proper considerations, you may fill your restaurant with wafts of smo%e or unpleasant odors. Dou can also have an aroma pollution where there are too many scents floating aout. Aeyond the aroma of the cuisine though, there are other considerations. *ne restaurant we wor%ed with introduced aromatherapy in a way that stimulated the senses and appetite efore customers were even in the dining room. There,s nothing worse than smelling dirty mop water in the loy or an unpleasant athroom odor. )ithout smell we would not have taste 'for more visit this restaurant consultant log, so clearly this is an important consideration in your restaurant design and shouldn,t e left to chance. 1F. Restaurant Design Process " The steps in the restaurant design process can e expanded or collapsed to suit your tastes for level of detail. There are hundreds of inter!dependent decisions and steps. 0enerally, the timing of these pro-ects can range from several very intense wee%s to potentially a year or more for large!scale development pro-ects moving at a steady pace. 6s restaurant design consultants, our complete process is proprietary. )e will e augmenting this article with a follow up piece on a summary of the process we underta%e, ut one thing we feel cannot e over!emphasi:ed is the importance of starting with a very solid restaurant rand constitution9platform. It,s etter to spend more time in planning and soft costs of development with an experienced pro than to rush in to the design and then try to undo mista%es later. It,s much easier to ma%e a change on a digital file than it is to change a ma-or mista%e on a completed uilding. 1G. Licensed Restaurant Designers & Architects " =ach country, state, county and even city can have dramatically different codes and laws governing design and architecture in that -urisdiction. 6s a result, the permitting process for a new pro-ect can ta%e from a few wee%s to several years. Lavigating through this minefield of ureaucracy can e challenging to say the least. Ultimately, all restaurant design plans must e sumitted to these oards via a licensed architect. They must e #signed and sealed$, meaning a senior licensed architect has reviewed the design, the architecture and the mechanical, electrical and pluming plans 'often referred to as the ;=?(. MNOTE: Aaron Allen does not represent himself as a licensed interior designer or licensed architectural firm. We are restaurant design consultants speciali!ing in o"erall restaurant design strategy# branding# concept de"elopment and comprehensi"e integration of pro$ects as restaurant consultantsN. In the realm of design, a licensed designer may sumit plans that do not call for significant modifications to an existing uilding, such as structural changes. In the hierarchy of licensing, a licensed architect can approve anything a licensed designer can, ut a licensed designer cannot approval all that a licensed architect can. Iust as with conceptual development, design and architectural planning, the location of your selected consultants is less important than speciali:ation. This process can and often is completed at a distance 'i.e. architects in Lew Dor% creating uildings in <uai, or a speciali:ed restaurant designer in *rlando doing a pro-ect in ;exico, or wherever(. That said, it is often advised for complex pro-ects to also retain a local architect that is familiar with the codes in some -urisdictions and has the relationships to physically #wal% the plans through permitting$. Des, although it should e the case, the indigenous consultants can get some special treatment. Camiliari:ation with local codes and officials, however, shouldn,t e more important to you than the ig picture in your selections. )e recommend hiring locals to augment the team on igger pro-ects, not to run them necessarily. )e have several licensed architects we have wor%ed with and can recommend. )e also serve as advisors and pro-ect!lead for restaurant concept development in articulation with your own selected licensed designer or one that we can refer to you. 12. Marketing Dept. and Restaurant Design " There are literally do:ens of speciali:ed disciplines that have to come together to complete a successful new restaurant prototype. )ho should they all report to/ )ho is the +uarterac%/ Des, the owner of the team is still the owner of the team, ut that,s not the person running every call of the game. )e elieve the entire team should report in to the most senior mar%eting strategist, who in turn reports in to the executive team. There are literally thousands of decisions that must e made through the course of a restaurant design pro-ect. 6ll of these decisions should e viewed through the lens of the rand and that is the domain of you most senior mar%eting advisor. I am not a licensed designer or architect, yet I have successfully lead restaurant design pro-ects on six continents representing do:ens of new prototypes. It,s een a very successful approach, and one we pioneered. The aove list of considerations is y no means a complete set, rather it is a cherry!pic%ed list to provide you with an insight as to why great restaurant design can e so involved and expensive to do right. 6s you can see, restaurant design is not -ust aout pic%ing colors and farics. It involves a lot of technical %nowledge of how restaurants wor% and restaurant operational considerations. It,s why we recommend you find a partner with a deep restaurant industry %nowledge; eing a +ualified interior designer or architect is not enough these days to create a truly integrated restaurant !rand. The ottom line " great restaurant design is complicated. Shopping for #cheap$ restaurant design consultants is li%e shopping for a cheap neurosurgeon. Dep, they,re out there. The +uestion you have to as% yourself is " do I want the cheapest neurosurgeon or do I want the est. The est and the cheapest often ta%e very different approaches. Cor more information on how we create new restaurant concepts and new prototypes for growth! minded restaurant chains, contact Kristin Thistle at E0G!FF2!3438 or %thistle O aaronallen.com. Restaurant Sample Business Plan Outline For information on an updated version of this page, click here To download a sample business plan (free) click here... Table of Contents Cover Letter Executive Summary Company Description Industry nalysis Products ! Related Services T"e Tar#et $ar%et T"e Competition $ar%etin# Plan ! Sales Strate#y Operations $ana#ement ! Or#ani&ation Lon#'Term Development ! Exit Plan (inancial Data ! Pro)ections ppendices
Company Description Kundo, Inc., a Massachusetts based company, will operate Abonda, a single unit, medium- size restaurant serving healthy, contemporary style food. The restaurant will be located at !" #eacon $treet in %ambridge, Massachusetts. $ission Statement The company&s goal is that of a multi-faceted success. 'ur first responsibility is to the financial well-being of the restaurant. (e will meet this goal while trying to consider) *+ the effect of our products on the health and well being of our customers ,and our staff+, -+ the impact that our business practices and choices will have on the environment, and .+ the high /uality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our basic financial goals. Development ! Status The company was incorporated in $eptember of *00" and elected sub-chapter $. The founders are 1ac2 Morton and (ilma Mason. 1ac2 is the 3resident and (ilma the 4ice 3resident. There is a total of *5,555 shares of common stoc2 issued. (ilma and 1ac2 each own .,555 and the remainder are retained by the company for future distribution. In addition they have loaned the company 6-",555 of their own money for research and start- up costs. A suitable site for the first restaurant was found last month and lease negotiations are in the final stages. The location will be on #eacon $treet, 7ust outside 8arvard $/uare and close to a dense population of the target mar2et. (hen the lease is signed there will be three months of free rent for construction and in that time the balance of the start-up funds must be raised. (ith that phase completed, Abonda 9estaurant can then open and the operations phase of the pro7ect can begin. (uture Plans If the business is meeting its pro7ections by month nine, we will start scouting for a second location and develop plans for the ne:t unit. 'ur five year goal is to have . restaurants in the greater ;oston area with a combined annual profit of between 6"55,555 and 6*,555,555. Table of %ontents Industry nalysis Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to coo2 for themselves. Trends are very important and Abonda is well positioned for the current interest in lighter, healthier foods at moderate to low prices. T"e Restaurant Industry Today The food service business is the third largest industry in the country. It accounts for over 6-!5 billion annually in sales. The independent restaurant accounts for *"< of that total. The average American spends *"< of his=her income on meals away from home. This number has been increasing for the past seven years. In the past five years the restaurant industry has out-performed the national >?3 by !5<. The reasons given by the @ol2ney 9eport ,?ovember *00!+ are *+ lifestyle changes, -+ economic climate, and .+ increase of product variety. There are 55 new restaurants opening every month and over -55 more needed to 2eep pace with increasing demand. (uture Trends ! Strate#ic Opportunities The predicated growth trend is very positive both in short and long-term pro7ections. @ol2ney states again that as modern living creates more demands, people will be compelled to eat more meals away from home. The #M9 Industrial 9eport ,April *00"+ estimates this as high as .5< over the ne:t five years. In *0AA The ?ational 9estaurant Association released the @oodservice Industry -555 report that forcasted how the industry might loo2 in the year -555. $ome highlights from the panel&s findingsB C%onsumers will spend a greater proportion of their food dollar away from home. Independent operators and entrepreneurs will be the main source of new restaurant concepts. ?utritional concerns will be critical at all types of foodservice operations, and food flavors will be important. Dnvironmental concerns will receive increased attention.C Table of %ontents Products ! Related Services Abonda 9estaurant will be offering a menu of food and beverages with a distinctive image. There will be three ways to purchase these products) table service at the restaurant, ta2e- out from the restaurant, and delivery to home or office. T"e $enu The Abonda menu ,see appendices+ is moderate sized, and moderate-low priced offering a collection of ethnic and American items with a common theme -- healthy ,low-fat, low cholesterol, natural ingredients+, flavorful, and familiar. 'ur goal is to create the image of light satisfying and still nutritious food. There has been an increased awareness of nutritional and health concerns in recent years and a growing mar2et of people who now eat this style of coo2ing regularly. Production @ood production and assembly will ta2e place in the 2itchen of the restaurant. @resh vegetables, meat and dairy products will be used to crate most of the dishes from scratch. The chef will e:ercise strict standards of sanitation, /uality production, and presentation or pac2aging over the 2itchen and service staff. Service There will be three ways a customer can purchase food. They may sit down at one of the "! seats in the dining room and get full service from a waitperson. A separate ta2e-out counter will service those who wish to pic2 up their food. Most ta2e-out food will be prepared to order with orders coming from either the telephone or fa:. #elivery ,an indirect form of ta2e-out+ will be available at certain times and to a limited area. (uture Opportunities There is a mar2et segment that prefers to eat this type of coo2ing at home although they do not have the time to coo2. There are already caterers and even mail order companies that provide individuals and families with up to a month&s supply of pre-prepared meals. This opportunity will be researched and developed on a trial basis. If successful, it could become a ma7or new source of income without creating the need for additional staff or production space. Table of %ontents T"e Tar#et $ar%et The mar2et for Abonda&s products covers a large area of diverse and densely populated groups. Although it will be located in a downtown urban setting, it is an area where people travel to eat out and one that is also fre/uented by tourists. It is also an area 2nown for and catering to the demographic group we are targeting. $ar%et Location ! Customers The 8arvard $/uare area is one of the most desirable retail locations in ?ew Dngland. The Mass. %hamber of %ommerce rates it as the third best retail mar2et in the state. There are more than !55 businesses in a *=! s/uare mile area with average sales of 6..5 per s/uare foot. The customer base will come from . ma7or segments) Local population -- the city of %ambridge with a year-round population of *!",555 is centrally located in the ;oston area and is within *" minutes drive of A ma7or suburbs. Colle#es and *niversities -- 8arvard alone has different schools within wal2ing distance of #eacon $treet and a seasonal population of --,555. In addition " more colleges near the s/uare have large student bodies. Tourism -- between hotels, motels, bed E brea2fast rooms and inns, there are over A,"55 rooms available. Fast year they were at 0-< occupancy. Local businesses -- The %ambridge %hamber of %ommerce lists over 055 businesses with an average of *- employees in the 8arvard s/uare area. The food concept and product image of Abonda will attract . different customer profiles) T"e student -- more and more young people have developed healthy eating habits. $ome also go through a Chealth food phaseC while in college. T"e "ealt" conscious person of any a#e or sex -- this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet. Curious and open'minded -- Cif you try it, you will li2e it.C Through mar2eting, publicity, and word-of-mouth, people will see2 out a new e:perience and learn that nutritious food can be tasty, fun, convenient, and ine:pensive. $ar%et Trends ! T"e (uture The population and demographics of 8arvard s/uare have remained steady for the last *! years. Tourism has increased -!< over the last . years and is predicted to 2eep growing. Focal businesses are increasing at a rate of *A< yearly. The idea of a health consciousness through nutritional awareness and dietary change has been slowly building for the last G years. The e:tensive government studies and new @ood >uide 3yramid have given everyone a new definition of a balanced, healthy diet. This is not a fad but a true dietary trend bac2ed by the scientific and medical community, the media, the government, and endorsed by the big food manufacturers. As the @oodservice -555 report stated, this trend will be even more important by the turn of the century. As people want to stay home more and coo2 less our strategy of delivering prepared meals on a wee2ly or monthly arrangement may be a widespread accepted new way of eating. Table of %ontents
T"e Competition There are over two dozen restaurants in the 8arvard $/uare area that sell food at similar prices. Although this presents an obvious challenge in terms of mar2et share, it also indicates the presence of a large, strong potential. The newest competitors have made their successful entry based on an innovative concept or novelty. Abonda will offer an innovative product in a familiar style at a competitive price. 'ur aggressive plans of ta2e-out and delivery will also give us an advantage to create a good mar2et share before the competition can ad7ust or similar concepts appear. Competitor+s Profile %ompeting with Abonda for the target mar2et are these categories of food providersB Independent table service restaurants of similar menu and price structure. %hain C C C C C %ommercial foodservice companies serving students directly. Independent operators include >rendel&s #en, Ia2o, ;ombay %lub, Iruna, and The ;order %afe. Most are ethnic based and will carry at least two similar menu items. >rendel&s and Iruna are long-standing businesses while the others are fairly new. They all are doing very well. The ma7or chain restaurants are 8ouse of ;lues, %hili&s and ;ertucci&s. All are relatively new but well established and profitable. They have big resources of mar2eting and=or a specialty product or attraction ,8ouse of ;lues is also a live music club+. 'gden @oods and %ysco both service -!,555 8arvard students but their product is not appealing enough to prevent students from eating out " to G meals a wee2. In addition there are two local catering companies that deliver prepared meals daily to offices. Competitive Strate#y There are three ma7or ways in which we will create an advantage over our competitors) product identity, /uality, and novelty high employee motivation and good sales attitude innovative and aggressive service options. Abonda will be the only restaurant among all the competition which focuses the entire menu on healthy, low-fat coo2ing. Dach of the competitors offers at least one ChealthyC selection on their menu. >rendel&s #en even has an entire section called C'n the Fighter $ideC but in all cases they are always seen as alternatives to the main style being offered. The target mar2et will perceive Abonda as the destination location for healthy, low-fat coo2ing. 'nce they have tried the restaurant, their e:perience will be reinforced by friendly, efficient, 2nowledgeable service. 9eturn and repeat business will be facilitated by accessable ta2e-out and delivery options. At the time of this writing all of the competitors offered ta2e-out but only two ,;ertucci&&s E %hili&s+. Table of %ontents $ar%etin# Plan ! Sales Strate#y $ar%et Penetration Dntry into the mar2et should not be a problem. The store has high visibility with heavy foot traffic all day long. The local residents and students always support new restaurants and the tourists do not have fi:ed preferences. In addition, 6*5,555 has been budgeted for a pre- opening advertising and public relations campaign. $ar%etin# Strate#y @ocusing on the uni/ue aspect of the product theme ,healthy, tasty foods+ a mi: of mar2eting vehicles will be created to convey our presence, our image, and our message. Print media -- local newspapers, magazines and student publications Broadcast media -- local programming and special interest shows ,otel #uides, concierge relations, %hamber of %ommerce brochures Direct mail -- subscriber lists, offices for delivery $isc. -- yellow pages, charity events A public relations firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. The mar2eting effort will be split into . phases) *+ Openin# -- An advanced notice ,press pac2et+ sent out by the 39 firm to all media and printed announcement ads in 2ey places. ;udget - 6*5,555 -+ On#oin# -- A fle:ible campaign ,using the above media+, assessed regularly for effectiveness. ;udget - 6*5,555 .+ Point of sale -- A well-trained staff can increase the average chec2 as well as enhancing the customer&s overall e:perience. (ord-of-mouth referral is very important in building a customer base. (uture plans and Strate#ic Opportunities %atering to offices ,even outside of our local area+ may become a large part of gross sales. At that point a sales agent would be hired to directly mar2et our products for daily delivery or catered functions. Table of %ontents Operations (acilities ! Offices The restaurant at !" #eacon $treet is a -!55 $/uare foot space. It was formerly a restaurant and needs on minor structural modifications. The licenses and codes& issues are all in order. ?ew e/uipment and dining room furnishings will be purchased and installed by the general contractor. 'ffices of the corporation are presently at 1ac2 Morton&s home but will be moved to the restaurant after opening. ,ours of Operation The restaurant will be open for lunch and dinner G days a wee2. $ervice will begin at **B55 AM and end at **B55 3M. The restaurant will be closed %hristmas, Than2sgiving, and the @ourth of 1uly. Employee Trainin# ! Education Dmployees will be trained not only in their specific operational duties but in the philosophy and applications of our concept. They will receive e:tensive information from the chef and be 2ept informed of the latest information on healthy eating. Systems ! Controls A big emphasis is being placed on e:tensive research into the /uality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity. @ood costs and inventory control will be handled by our computer system and chec2ed daily by management. (ood Production Most food will be prepared on the premises. The 2itchen will be designed for high standards of sanitary efficiency and cleaned daily. @ood will be made mostly to order and stored in large coolers in the basement. Delivery ! Caterin# @ood for delivery may be similar to ta2e-out ,prepared to order+ or it may be prepared earlier and stoc2ed. %atering will be treated as deliveries. Table of %ontents
$ana#ement ! Or#ani&ation -ey Employees ! Principals 1ac2 Morton, 3resident. 1ac2 Morton is also the owner and manager of >rains E ;eans, a local natural food wholesaler and retail store. $ince *0GG his company has created a high- profile mainstream image for natural foods. In *00- >rains E ;eans opened a small cafe within the retail store that became so popular and profitable, he decided to e:pand the concept into a full service restaurant. 1ac2 brings with him a trac2 record of success in the natural foods industry. 8is management style is innovative and in 2eeping with the corporate style outlined in the mission statement. Compensation ! Incentives Abonda will offer competitive wages and salaries to all employees with benefit pac2ages available to 2ey personnel only. Board of Directors An impressive board of directors has been assembled that represents some top professional from the area. They will be a great asset to the development of the company. Consultants ! Professional Support Resources At the present, no outside consults have been retained, e:cepting the design department at ;est D/uipment. $ana#ement to be dded (e are presently searching for a general manager and e:ecutive chef. These 2ey employees will be well chosen and given incentives for performance and growth. $ana#ement Structure ! Style 1ac2 Morton will be the 3resident and %hief 'perating 'fficer. The general manager and chef will report to him. The assistant manager and sous-chef will report to their respective managers, and all other employees will be subordinate to them. O.ners"ip 1ac2 Morton and the stoc2holders will retain ownership with the possibility of offering stoc2 to 2ey employees if deemed appropriate. Table of %ontents
Lon#'Term Development ! Exit Plan /oals Abonda is an innovative concept that targets a new, growing mar2et. (e assume that the mar2et will respond, and grow /uic2ly in the ne:t " years. 'ur goals are to create a reputation of /uality, consistancy and security ,safety of food+ that will ma2e us the leader of a new style of dining. Strate#ies 'ur mar2eting efforts will be concentrated on ta2e-out and delivery, the areas of most promising growth. As the mar2et changes, new products may be added to maintain sales. $ilestones After the restaurant opens, we will 2eep a close eye on sales and profit. If we are on target at the end of year *, we will loo2 to e:pand to a second unit. Ris% Evaluation (ith any new venture, there is ris2 involved. The success of our pro7ect hinges on the strength and acceptance of a fairly new mar2et. After year *, we e:pect some copycat competition in the form of other independent units. %hain competition will be much later. Exit Plan Ideally, Abonda will e:pand to five units in the ne:t *5 years. At that time, we will entertain the possibility of a buy-out by a larger restaurant concern or actively see2 to sell to a new owner.