Smart Food Business Plan

Student’s Name

University Name
 Smart Food

Executive Summary

Anne, Abigale, and Keith have been involved with the food industry for over 5 years and opened

the restaurant in Hawaii in 2017. The company is praised for having quality food on their menus

which have attained special notoriety for their desserts. After receiving numerous requirements

from the customer they decided to develop a new pizza to serve special clients and marketing the

products separately from the restaurant. Anne and Abigael developed several recipes for the

flavored whipped cuisine. The various issues include the dessert and are used in setting two

restaurants in the last four years which produced the larger quantities.

The estimated product required a refrigeration temperature of up to six months frozen. The beans

will be required to develop the market for the product (Abrams, 2013). The company was also

required to pressurize the cans. Special attention has been used to attract and label the specialty

nature of the products. The beans have required to have an established name and reputation. The

financial analysis represents the company to have a positive cash flow and profit in the first year.

This means that the expected equity for the project is estimated to be 10 percent

Background History

Anne, Abigael, and Keith will be used to assess the food industry for several periods. The

company and opened the restaurant in Hawaii in 2017. The company is praised for having

quality food on their menus which have attained special notoriety for their desserts. The

company has earned credit from the customers by offering quality food and menus that will

assist in marketing the product to a wider geographical market segment

Market Description
The company markets the product into two distinct categories such as the specialty food and

pizza. The plan will delve into various aspects which influence the overall consumption of

specialty food and others(Abrams, 2013). This has seen an increase in the food preparation due

to the market of the guest that attended the annual events. The specialty product has offered a

new market for the product in the last three years. The domestic food industry has tremendously

grown over time with an estimated over 39 billion but dropped in 2020 due to the covid 19

outbreak. The demographic information shows that the industry market is higher in the

metropolitan areas and also shows the potential opportunities for the smaller and medium market

Objectives

 To attract the minimum customers of 200 customers per day for the food and pizza

delivery during the first year of operation of the business.

 Offer our customer quality food and pizza services at an affordable price and also offer

an adequate customer experience to improve the sales revenue by 10 percent

 Enhance customer efficiency by reducing the number of complaints to one percent

annually

 Generate positive cash flows from the operation by an approximate value of 20 percent

profit margin

Mission

Smart Food's mission is to offer the customer food product and services in the area. The

company offers quality food which meets the customers’ expectations. This means that the

company will use the strategy to provide the customer best experience in service product and

product delivery which will exceed the customers’ expectation

Vision
The vision is to be the leading company in the production of quality food and service delivery

across the major segment to the various stakeholders and the community in the business is

established

Core values

The core values are key ingredient to the success of the business since it lays the foundation for

the quality food and service delivery to the customers(Abrams, 2013).

 Performance excellence : being responsible owners and provide food and service that

exceeds the customer’s expectations

 Team work: We are working as a team and dedicated towards ensuring the customer

loyalty and trust is attained

 Integrity: our stakeholders are treated with utmost respect and dignity. This include

being honest and apply the standard ethical behavior which are key ingredient to the

business conduct

Operations

In the fifth year, we intend to offer an expansion program to serve a large number of clients in

the food industry. Additionally, the location will be strategic to appeal to the various market

based on the quality of the food we offer to our customers(Abrams, 2013).. To make the goal

realistic we plan to recruit the team leader to assist in conducting the various operations and

efficiency of the company. Lastly, we plan to have an online food service delivery to the clients

who are in far places by able to make delivery to their doorstep by connecting them to the mobile

apps that allow the customer to communicate to the owners as well as the employees in

delivering the food, placing orders and other key operations b(Nikolskaya, et. al 2018). This
move will increase the client base to more than 20 percent of the expectation or organizational

goals.

Competition

There exist numerous food and pizza brands that are available in various retail outlets and

grocery stores. This means that the need to support future advancement will require one to select

the best interest of the organization (Nikolskaya, et. al 2018). This means that create various food

store outlets and dry mixes which are not direct competition for the company. The estimated

value of the sales figure for the food stores accounts for 35 percent of the national brand.

However, the strength of the product will improve the market share and also create effective

distribution channels.

Apart from the physical stores, will have a virtual food website that allows the customers to

serve the market segment. In terms of the pricing, our strategy is to sell the product from $10-

$25 depending on the nature of the product the customer has ordered or served. Apart from that,

the company is also proposing to have weekly offers and discounts to attract customers and

ensure customer loyalty is achieved in buying the food product of the company.

Market Strategies

The distribution of the food will enhance the reputation of the product. The managers are

proposing various marketing strategies that will be implemented (Nikolskaya, et. al 2018). Some

of the main concerns to be used include offering standard items pricing that will be crucial

towards attaining the key goals and market.

The program such as building a website and mobile app that allows the customer to order the

food product in the market will be instrumental to increase the larger client base. The food chain

outlet will also be able to target another client in towns and major cities by ensuring that our
company offers them food delivery. Lastly, offer attractive discounts and offers of the food

product sold to be able to attract and retain the customers and build a greater market share. Brand

the product with proper and attractive packages to the customers to provide the competitors.

Manufacturing Plans

Because operates the two restaurant and facilities which offers substantial amount for the

production. This means that the company will have various facilities that will manufacture the

food available to the retail sales and restaurant. The company has a high-speed mixer with a

pressurized tank that assists in the production and store of frozen items. Additionally, the

availability of various machines will be crucial towards the improvement of production in the

market. As an effective approach to improving the quality of food production, the company plans

to buy new machines specializing in food products like food processing

Key to Success

 Excellent product and services that will enhance the customer loyalty

 Strategic location that attracts numerous customers

 Proven level of expertise by management to successfully run small business

 Continuous improvement in the total quality

Strategy and Implementation Summary

The strategy is based on the creation of a strong customer value proposition that will create the

market niche. This means that we are looking for insight on offering various food cuisine

alternatives and customer’s preferences. This means that the company is creating a marketing

infrastructure that will reach more customers and food. The basis of providing the option will be

to satisfy the needs of the lower to middle-class residents. The basis of creating market
communication will provide the most convenient way to reach the target market and create

awareness of the food-related product. Furthermore, provide an effective advertising tool that

will promote the product. Additionally, we plan to hire the expertise that will promote and

market the company in various print and electronic media. Adequate funding will be considered

in the projection of the promotion expenses which will take a considerable huge amount of

money most effectively.

SWOT Analysis

The SWOT analysis provides an insight that will examine the internal strengths and weaknesses

of the company(Bondarenko, Efremenko,., & Larionov, 2019)... This will allow to narrow down

on the external opportunities in the existing business environment and other potential threats that

will focus on the external opportunities as well as the strengths

Strengths

 Strategic location

 Excellent food production and delivery(Bondarenko, Efremenko,., & Larionov, 2019)..

 Proven management experience and training

 Efficient food preparation and technology

Weaknesses

 Cost factor

 Startup challenges

 Limited operating capacity especially during the peak period

Opportunity

 Increasing in the population

  No competition from the surrounding businesses

Threats

 Competition from established businesses

 Covid 19 restriction is becoming a problem

Financial Projection

The information provides the crucial financial projections of the income, cash flow statement,

and balance sheet as well as their respective financial ratios(Aleksandrova Georgieva, 2017)..

The financial projections are aimed to ensure the growth and estimated projection will improve

the performance in the long run. The historical financial information of the company is available

upon request (Bondarenko, Efremenko, & Larionov, 2019).. The company expects to be

profitable in the year of the first year of operation and the next five years. This is due to the

strong clientele base. However, the main thorny issue is the sufficiency of adequate cash flow

need that will meet the current payment obligations and unexpected cash flow needs.

The conservative projection shows that the business will generate the cash flow which can

support the deficient cash flow needs and meet the obligation of the company (Aleksandrova

Georgieva, 2017).. The projection indicates that the business will be able to attain huge cash flow

projections. Furthermore, the financial position remains strong based on the assessment of the

key performance metrics such as liquidity, solvency, and cash flow adequacy (Hasyim, et.al

2020).. The company profitability is excellent and projected to increase in the next five-seven

years.

Exhibit 1: Income statement

 SMART FOOD LIMITED

Income statement

2020

Net sales 300,000.00

Less Cost of Sales (100,000.00)

Gross Profit 200,000.00

Operating Expenses

Utilities 10,000.00

Rent 15,000.00

Wages 20,000.00

Repairs 5,000.00

Miscellaneous 10,000.00

Total Expense 60,000.00

EBIT 140,000.00

Interest Expenses (10,000.00)

EBT 130,000.00

Tax 39,000.00

EAT 91,000.00

Exhibit 2: Balance Sheet

SMART FOOD LIMITED
 Balance Sheet

2020

Non-Current Assets cost Acc. Dep Net Book Value

Plant Property and 300,000.0 20,000 280,000.00

Equipment 0 .00

Motor Vehicle 150,000.0 20,000 130,000.00

0 .00

Land 550,000.0 550,000.00

Total Non-Current Asset 960,000.00

Current Assets

Cash 100,000.0

Inventory 85,000.0

Accounts Receivable 40,000.0

225,000

.00

Current Liabilities

Account Payable 85,000

 .00

Working Capital 140,000.00

Capital Employed 1,100,000.00

Financed

Long Term Debt 400,000.00

Share Capital 609,000

Net Profit 91,000.00

Total Shareholder's Equity 1,100,000.00

Reporting package and Key Performance Indicators

The evaluation of the reporting package presents an option to assess the performance of the

company based on the key parameters and performance indicators. Some of the key reporting

package is outlined below:

 Rising the sales revenue by 10,000 monthly with a monthly profit of 3000

 Efficiently finding the cheapest cost from the various suppliers

 Improving the liquidity levels of the firms.

In order to provide the appropriate information regarding the key issues raised, the performance

indicator will confirm the tremendous progress in performance

 Increase in the inventory Turn Over from 5X to 7.5 times will be used to assess the

number of sales increase (Nikolskaya, et. al 2018)

 Increase in the Food production is a test of improved number of customers

 Increase in the number of orders placed at any given time

 New retail outlets that are formed for the purpose of ensuring quality sales.

Minutes of the meeting Held at Company’s Board Room on 31st December,2020 at 9.00am
Members Present

1. Anne

2. Abigale

3. Keith

4. Andrew

5. Job

Absent with Apology

1. Tom

Min 12/1/20 : Preliminary

The meeting started at 9.00 am with a prayer from Abigael. The chairman welcome the

members to the end year meeting

Min 12/2/20 : Agenda

The key agenda for the meeting was

1. Company performance

2. Plan of Action

3. A.O.B

Min 12/3/2020: Company Performance and KPI

The board agreed that the company needed to adjust some of the key aspect for effective

performance. As an effective measure of improving performance, some of the recommendation

was to improve the current sales by 50 percent in the next quarter. Additionally, re-brand the
product to attract the customers to make prompt purchases.in placing their orders. Additionally,

improve the profitability of the company by 10 percent in the next quarter despite a good profit.

Min 12/4/2020: Plan of Action

The board proposed various initiatives that will improve the performance

 Install latest technology and other latest advancement to improve the quality and food

delivery

 Hire expertise that will improve the departmental performance as well as enhance

efficiency

Min 12/5/2020 : AOB

In driving the company performance, the company is proposing to have an internal control

department that gauges the key performance and minimize the risks.

Min 12/6/2020 : Adjournment

There being any other business, the meeting ended at 12.00pm

Prepared By: confirmed by

Sign ………………… sign …………………….

Secretary chairman
 References

Abrams, R. M. (2013). The successful business plan: secrets & strategies. The Planning Shop.

Aleksandrova Georgieva, A. (2017). Digital marketing plan: Ecoral Hotel.

Bondarenko, V. A., Efremenko, I. N., & Larionov, V. A. (2019). Marketing strategy for hotel

and tourist complex companies.

Hasyim, L. C., Syah, T. Y. R., Indradewa, R., & Pusaka, S. (2020). Five Success Stages in

Human Capital Planning Over LH Hotel Business. Journal of Multidisciplinary

Academic, 3(5), 171-176.

Nikolskaya, E. Y., Kovaleva, N. I., Uspenskaya, M. E., Makshakova, N. I., Lysoivanenko, E. N.,

& Lebedev, K. A. (2018). Innovative quality improvements in hotel services.

Sampaio, C. A., Rodrigues, R. G., & Hernández-Mogollón, J. M. (2021). Price Strategy, Market

Orientation, and Business Performance in the Hotel Industry. Journal of Global

Information Management (JGIM), 29(1), 85-102.

Turner, M. J., Way, S. A., Hodari, D., & Witteman, W. (2017). Hotel property performance: The

role of strategic management accounting. International Journal of Hospitality

Management, 63, 33-43.