Running head: MARKETING PLAN 1

The Red Plate Business and Marketing Plan

Name of Student

Name of the University

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I. Introduction

The U.S restaurant industry has been experiencing exponential growth in the recent past

and experts believe that its future is bright. Bruns-Smith et al. (2015) reveal that the industry

generates sales of up to $800 billion each year and it is among the biggest employers. Currently,

Florida (2014) discloses that the sector has employed more than 15 million people and its

workforce is expected to grow to about 17 million before 2030. The Red Plate is a fast food

restaurant located in Miami, Florida. Founded in 2015, the business operates a single restaurant,

and its primary product offerings include; grilled chicken, salads, fruit juice, tuna subs, grilled

chicken sandwich, vegetable tacos, and wraps. The target audience for The Red Plate is adults

aged between 25 and 40 years who make up a significant population of Miami. These adults

share the following characteristics; they earn a high income, are health conscious and have busy

schedules due to their careers hence are looking for healthy and ready-made food. This is a

business and marketing plan for The Red Plate. It discusses the restaurant's primary purpose,

overall goal, and the activities it is planning to undertake to achieve its objective. Additionally, it

also analyzes the environment the restaurant is operating in.

II. Mission Statement

The Red Plate’s full mission statement is “We take pride in making healthy convenient

food providing friendly and accurate services. We are the employer of choice offering our team

members growth and advancement opportunities in a safe working environment.”

III. Goals

The primary goal of The Red Plate is to maximize the shareholders’ wealth. All of the

restaurant's plans and activities are intended at helping the business remain profitable.
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Additionally, the business is also seeking to protect the employees undertaking the income

generating activities and the environment for future generations.

3.1 Short Term

Within the next two years, the restaurant seeks to achieve the following goals:

 Improve its menu to offer more healthy convenient foods

 Reduce overheads and other operational costs

 Improve its service delivery

 Continue offering high-quality products

3.2 Long Term

In the next five years, The Red Plate seeks to attain the following goals:

 Become the leading healthy fast food restaurant in Miami

 Build a strong and reputable brand

 Double its sales and enhance its profits

 Expand into other locations in America

IV. Environmental Analysis

External factors in the environment greatly affect the performance of a business.

Typically, Florida (2014) argues that a business has no control of these external influences.

Analyzing these forces is critical in assessing the opportunities and threats the environment

presents. A corporation responds by capitalizing on the opportunities while minimizing the

adverse effects of the weaknesses (Bruns-Smith et al., 2015). Below are some of the external

influences that may impact the performance of The Red Plate:

4.1 Competitive Analysis

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Florida’s restaurant industry is very profitable attracting both established and emerging

businesses looking to segment their market share and boost their profits. The sector generates

sales of close to $800 billion annually (Jin, Line & Merkebu, 2015). Some of the established

restaurants operating in Miami include but not limited to; Starbucks, Wendy's. McDonald's,

KFC, Subway, Taco Bell, Pizza Hut, and Burger King (Lee, Dopson & Ko, 2017). These

restaurants offer convenient foods and have included healthy meals in their menus to attract

health-conscious customers. The intensive competition, particularly from established brands,

make it difficult for emerging restaurants such as The Red Plate to attract and retain customers.

Leung at al. (2015) is of the view that a strong brand name is critical for the success of a business

in the restaurant industry. The established restaurants have the experience and capacity to meet

the customers’ needs. Focusing on healthy convenient foods will increase the chances of The

Red Plate standing out in the highly competitive market.

4.2 Economic Analysis

Lee, Dopson and Ko (2017) allude that Florida’s economy is the third-largest in the U.S

valued at over $1 trillion. Secondly, it is a low-tax state; sales tax rate is 6.8% while the income

tax rate is 0.0% as compared to America’s 7.3% and 4.6% respectively (Jin, Line & Merkebu,

2015). Thirdly, the state of Florida leads the nation in job creation. Lee, Dopson and Ko (2017)

reveal that by the end of 2018 the job market had increased by 2.6%. Lastly, the fact that

Florida’s economy is growing stronger and faster than that of the U.S indicates that there is a low

probability of a recession (Bruns-Smith et al., 2015). The economic environment presents

numerous opportunities that The Red Plate can exploit to boost its performance. The lower taxes

will reduce the operational costs leading to more savings. The combination of a strong economy
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and high employment rates will increase the purchasing power parity of the residents leading to

high sales.

4.3 Political and Legal Analysis

The state of Florida is politically stable and its Constitution protects the rights and

freedoms of the citizens (Jin, Line & Merkebu, 2015). Secondly, Florida (2014) postulates that

the state is advancing the well-fare of the employees to improve the social well-being. It attempts

to attain this by implementing employment laws and safety regulations. The employment laws

require employers to pay the employees above the minimum wage. The safety regulations are

intended at providing a safe working environment for the employees. Besides, the state also

implements trade regulations that control the business environment (Bruns-Smith et al., 2015).

These regulations are intended at protecting the consumers, encouraging competition and

restricting illegal businesses. Miami’s political situation creates a peaceful environment that

attracts investors and businesses. These businesses should comply with the regulations to avoid

legal issues.

4.4 Technological Analysis

Advances in technology have revolutionized how restaurants reach out to masses over

wider geographical regions, engage with the public, promote their product/service offerings and

boost their sales (Jin, Line & Merkebu, 2015). The internet, particularly social media, is an

effective communication and marketing tool as it is fast and cheap. Moreover, Florida (2014)

argues that technology has changed the behavior of people. People depend on technology to;

acquire information, communicate, plan their daily activities, search and compare prices for their

desired products/services, and perform business transactions. The Red Plate should capitalize on

the internet to enhance its visibility, create brand awareness, market its healthy convenient foods
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and enhance its sales. This will be attained by boosting the restaurant’s online presence through a

website or social media platforms.

4.5 Sociocultural Forces Analysis

Bruns-Smith et al. (2015) argue that Florida has the seventh fastest-growing states in the

U.S. By the end of 2018, the state had a population of up to 21 million people and about half of it

is comprised of people aged between 25 and 40 years (Bruns-Smith et al., 2015). This is a large

market in terms of the population particularly The Red Plate's target market. Furthermore, adults

in America are increasingly becoming health conscious. The restaurant should exploit the

growing population of health-conscious customers to provide high quality healthy and

convenient foods to increase its sales.

V. SWOT and Needs Analysis

A SWOT analysis is an essential tool for evaluating a company's competitive position. It assesses the

internal elements that a business can regulate and the external forces that it does not have control over.

It evaluates the current and future potential of the company as well as the challenges it might face.

Strengths Weaknesses
 Highly qualified management  Weak brand name
 Original herbs and spices recipe  Low operating capital
 Among the market leaders in offering  Inexperience

healthy fast foods

Opportunities Threats
 Increasing demand for healthy convenient  Intense competition

foods
 Fast growing and a strong economy  Changing consumers’ trends and

preferences
 Advances in technology  Strict employment laws

5.1 Strengths
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 Highly qualified management – Red Plate’s management has the information and skills

required to get things done.

 Original herbs and spices recipe – these herbs and spices are a trade secret and a source

of competitive advantage.

 Among the market leaders in offering healthy fast foods – The Red Plate is among the

pioneers of healthy fast foods in Miami.

5.2 Weaknesses

 Weak brand name – a strong brand name is critical in attracting customers.

 Low operating capital – it inhibits the business from increasing its productivity and

expanding its operations.

 Inexperience – the restaurant has only operated for less than 5 years hence lacks adequate

market intelligence required to meet all the customers’ needs.

5.3 Opportunities

 Increasing demand for healthy convenient foods – increased demand will boost the

restaurant’s sales.

 Fast growing and a strong economy – this reduces the chances of a recession.

 Advances in technology – will reduce the costs associated with marketing the business to

a wider geographical region.

5.4 Threats

 Intense competition – makes it difficult for The Red Plate to attract and retain customers.

 Changing consumers’ trends and preferences – the restaurant struggles in meeting the

ever-changing tastes and preferences.

 Strict employment laws – high minimum wage increases the costs of operation.
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VI. Conclusion

The Red Plate restaurant should capitalize on the opportunities presented by the

environment to boost its sales. At the same time, it should also minimize the adverse effects of

the challenges it may face. Some of the opportunities include but not limited to’ a fast growing

and strong economy, high population of adults aged between 25 and 40 years, growth of the

internet, and increasing consciousness of healthy lifestyles. However, Miami’s restaurant

industry is characterized by intense competition, the restaurant has low operating capital and it

has a weak brand name.

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References

Bruns-Smith, A., Choy, V., Chong, H & Verma, R. (2015). Environmental Sustainability in the

Hospitality Industry: Best Practices, Guest Participation, and Customer Satisfaction.

Center for Hospitality Research Publications, 15(3), 6-16.

Florida, R. (2014). The Creative Class and Economic Development. Economic Development

Quarterly, 28(3), 196-205.

Jin, N., Line, N & Merkebu, J. (2015). Examining the Impact of Consumer Innovativeness and

Innovative Restaurant Image in Upscale Restaurants. Cornell Hospitality Quarterly,

57(3), 268-281.

Lee, M., Dopson, L & Ko, S. (2017). Graduate Study in Hospitality Management in the United

States: Doctoral Programs. Journal of Hospitality & Tourism Education, 29(1), 25-34.

Leung, X., Xue, L & Bai, B. (2015). Internet Marketing Research in Hospitality and Tourism: A

Review and Journal Preferences. International Journal of Contemporary Hospitality

Management, 27(7), 1556-1572.