BUSINESS PLAN AND LOAN PROPOSAL

NewSteady Restaurant
Prepared for
Commercial Bank PLC
June 14th 2020

Table of contents

1. Executive summary
2. Business overview
3. New market research & analysid
4. New product development
5. Purpose of requesting funds
6. Breakdown of products
7. Marketing plan
8. Conclusion
9. Appendix

177
Executive summary

Newsteady is a food and beverage restaurant producing food

originated in different regions for both the locals and tourists. Due
to current demographic changes, people's taste has been changed
and they have moved to consume more healthy food. Therefore, the
decision makers have decided to introduce a new product portfolio
containing only healthy/nutritious food for which a particular loan
amount is required for development.

Business overview
“NewSteady” restaurant was founded on 2nd March 2017 by
Ms.Sonia Grace who already had 5 years’ experience in food
science industry and 2 years’ experience as the quality control
manager in several other popular restaurants like “Ginger.B” and
“Felicity” before starting her own company.
Mission
“Our goal is to provide customers with high quality food and
beverages causing zero harm to their health and safety while
pertaining to their wants on taste and diversity. We basically focus
on increasing the utility of the tourists arriving to Sri Lanka in order
for them to have a good impression on Sri Lankan hotel & restaurant
industry, by bringing to light the potential of the local restaurant
employees.”
Vision
“Create a business that provides incredible customer service. We
will work on to persistently delivering value to our customers and,
as a consequence we will grow our business through referrals. Our
initial focus will be on providing quality while considering other
specialties that we can master without sacrificing our core focus and
value addition.”
Having started “NewSteady” which deliver high quality meals for
lunch and dinner (take-away available) along side beverages of
European, Asian and African origins. The restaurant has so far been
concerned of mote tourists than the local community. Even though
the meals and beverages provided are of multiple origins,
“NewSteady” management and the knowledgeable employees from
around the world made sure to purchase highest quality raw
materials and add as less flavours as possible while maintaining
cleanliness to a great deal. However, the kind of food provided
couldn’t be produced with zero flavours.
It’s significant that “Newsteady” has obtained the Food ad beverage
quality standard ISO-9000 and the Food safety standard ISO 22000
which is linked to the presence of food-borne hazards in food at the
point of consumption.

New market research & analysis

As the restaurant “Newsteady” is located in the urban premises, the
demand from the metropolitan areas were quite high until the recent
paradigm shifts that took place leading us to make a change in our
production, based on the details and the statistical figures obtained
from a market research. The figures demonstrated that 70%of the
total population in the metropolitan area is currently undergoing
health issues basically concerned with their food patterns. The
tourists arriving to Sri Lanka too are deemed to have more interest
in healthy Sri Lankan food than spicy and oil rich food.
And such demographic details emphasized the fact that they have
reduced junk food and flavoured food consumption and shifted to
consume more local/nutritious food as basic three meals. Apart from
that, the beverages they currently consume the most have changed
from soft/artificially flavoured drinks to naturally made fruit
juices/soup and porridge.
It showed that the demand for current Newsteady food is drastically
declining which is why changes in products were essential.
A brief SWOT analysis can be done as follows:
Strengths: knowledgeable employee base, reputation, cleanliness
Weaknesses: Having to add up artificial flavours
Opportunities: Ability to enter a new market ie; healthy nutrituous
food market due to the changes in people’s taste
Threats: healthy food manufacturers who already exist in the market
and having the reputation, low pricing strategies followed by the
competitors.

New product development

As a consequence of the demographic and social changes the
requirement of developing a new product portfolio is now
considered important. The portfolio basically contains “meals and
beverages” similarly to how the previous portfolio was carried out.
But the ingredients and the type of meals and beverages produced
will be different. It is important to mention that the new portfolio
will be carried out along with the previous products which means tht
the new set of products is an addition to the previous products.
The new product portfolio contains more healthy food prepared with
Sri Lankan raw materials produced naturally and those which bring
health benefits. It basically contains the traditional Sri Lankan food
which are considered nutritious and contains low sugar and oil. The
new plan is expected to have social benefits by providing the
community with an opportunity to access a healthy balanced diet.
The prices too will be set in a fair way despite the high quality and
the cost of production. As planned, in order to provide these new
products, a separate food court will be opened right next to the
current location of “Newsteady” building and a set of new
employees too have to be hired , who have enough knowledge about
healthy meals and local nutritious food.
Purpose of requesting funds(A rough overview)
The business plan and loan proposal projects a business loan of
3,000,000. The expected loan amount can be divided in to a few
sections based on the purpose as follows.
Around half of the loan is expected to be used on the new building
that is to be built attached to the existing building to carry out the
new product portfolio related operations, as mentioned in the
previous section.
Half of the remainder will be used to purchase new raw materials,
hire and pay new employees in the initial period and on testing
product prototypes prior to official launch.
The remaining amount will be incurred on advertising,
equipment and general purposes.

Breakdown of Products

The existing products:

Lunch time meals:

Section 1 consists of Normal rice(vegetable/chicken/fish), Fried

rice: With chicken, beef, mutton and Gump rice

Section 2 is of European meals

Section 3 focuses on Asian meals

Section 4 focuses on African meals

The new product portfolio

Section 1 consists of rice with vegetables (totally vegetarian).

Section 2 contains String hoppers by wheat flour, Pittu, Kitul
palm flour slices, different soups and porridge.
Section 3 consists of all kinds of grains.
And section 4 contains a mixture of nutritious Indian and Sri
Lankan food.
Services: catering service is already available and will be
applicable to the new product portfolio too.
The suppliers for new product portfolio have been identified:
"Nozara group" which is a group of individuals doing sustainable
home gardening are supposed to provide raw materials for first
two sections.
A "shamara holdings" which carry out grain production in the
agricultural sector will provide for section 3.
The section 4 is expected to be supported by two popular Sri
Lankan and Indian suppliers.

Marketing Plan
Marketing mix aka 4 P’s is consisted of 4 elements named
product, price, place and promotion for the new product can be
analysed as follows.
Product characteristics are considered in this case, such as quality
increment, developing appearance, diversification of the product
ingredients and packaging improvements in case of doing
catering services.
Pricing will be set according to the following strategies.
Initially NewSteady will go for Cost-plus pricing strategy, done
by simply calculating the costs and adding a mark-up.
Secondly, mark-up pricing based on competitive pricing where
they set a price based on what the competition charges.
Finally NewSteady will move to Value-based pricing by setting
a price based on how much the customer believes what the
product is worth.

Then the promotional strategies used will be mass media and

social media advertising. In order to promote better, seasonal
discounts too will be given.

Place is about the distribution channels and the channel to be used

will be manufacturer-to-customer.

A customer review sessions will be conducted online and live

right after releasing prototypes in the initial stage.
The required diversifications to the new product portfolio will be
done following the customer reviews so that the respective
customer expectations could be better targeted.
Following the above action, it is possible to re-segment the
customers based on age, community or the geographical location
which will lead to better repositioning of the products after the
product development.
Conclusion
The above mentioned marketing plan brings to light the existing
products, new product plan as well as well as the reasons for the
new product development explained. The estimated costs and
revenue attached to the appendix below shows the cost and
revenue plan for next 18 months and it is shown for better
 demonstration of the eligibility of NewSteady for a loan, along
with all above details provided.

Appendix

Cost projections
Half yearly:

Estimated Item 31st 30th 31st

Decem December
Revenues June 2021
ber 2021
2020
Section 730,00 740,000 1,000,000
1 of old 0
& new
Section 220,00 640,000 550,000
2 of old 0
& new
Section 150,00 730,000 1,700,000
3 of old 0
& new
 Section 320,00 370,000 580,000
4 of old 0
& new
Total 1,420,0 2,480,000 3,830,000
00
Estimated Section 100,00 700,000 200,000
expenses 1 of new 0
& old
Section 300,00 500,000 300,000
2 of new 0
& old
Section 700,00 550,000 50,000
3 of new 0
& old
Section 550,00 100,000 365,000
4 of new 0
& old
Total 1,650,0 1,850,000 915,000
00
Estimat (230,00 630,000 2,915,000
ed 0)
Profit/lo
ss