Site Loader

Highway Caf?© Table of Contents Table of Contents 2 Executive Summary 3 The Business 5 Industry Analysis 7 The Market 8 The Organization 13 Financial Reports and Calculations 15 Summary 24 Reference List 25 Executive Summary The Highway caf?© will be a full service caf?© located in Brighton Road in Glenleg, South Australia. The cafe features will have a complete menu that will be reasonably priced for all ‘comfort food’ primarily from American and French menus. The sections within the cafe will encompass a coffeehouse, magazine section, dessert bar and live performance area.

The Highway Cafe shall be an LLC managed by Thistle, Kostya, Lotz 60%), a professional accounting practice, and Amin Yak (20%) and Connie Yak (20%). Amin Yak is renowned in the hospitality industry and shall benefit Highway cafe with his expertise in the business. Connie Yak brings rich experience of managing finances in the hospitality industry. The company shall also utilise her for designing the interiors and arranging a good ambience for the cafe. Highway cafe shall provide excellent food and beverages and relaxing ambience at the most competitive prices.

The target customer initially would be residents and tourists flocking in and around he 5 kilometre radius of the cafe. To set itself apart from rest of the cafe in and around Glenleg, Highway cafe will introduce the concept of American Alfresco Dining on the patio space for its customers. It shall honour international recipes and keep them as authentic as possible. Patio dining, relaxing environment and live entertainment should add together as a perfect recipe for relaxation to customers.

As a part of future product expansion plans, Highway cafe shall initially focus on its cafe products and dessert menu. Once it gains recognition for its novel preparations and usiness picks up, Highway Cafe plans to expand into proper lunch and dinner menus. Also, as a part of product expansion, Highway cafe plans to tie up with surrounalng Duslness nouses ana law Tlrms Tor catering opportunltles at t corporate events and providing customised menus for their business meetings as a regular feature.

With a view to pick up cross selling opportunities, Highway Cafe also plans to introduce a section for souvenirs targeted to international tourists The cafe’s value proposal shall be to provide evening entertainment to residents of Glenleg and domestic and international tourists. The paper will lay out a detailed analysis of the market, the customer profiles and the strategic business plan for starting up with Highway cafe. This plan shall include details on the company, the market, and plans of action, product offerings, management, business forecasts and financial plans.

The Business Background and Description of the Business Concept Highway Cafe shall be an ownership of a rented space very close to a new proposed cinema near Brighton Road in Glenleg. It is interesting that the space was initially owned and run previously by a take home cafe that offered take home food service long with a small cafe. Highway cafe shall benefit from an already established client base of the space. Also, the initial hard work of establishment and furnishing has been done; Highway Cafe shall not have to spend much energy in worrying about start up issues (O’Byrne, 2010).

The space is also strategically located close to a beach, reserves and parks. This promises to offer a large tourist count. The initial store hours will be between 10 A. M to 10 P. M. The facility is of 60 seat capacity divided strategically between alfresco dining and dessert bar. Vision Statement Highway cafe shall try to deliver relaxation and comfort along with quick service and a good ambience to its customers. Mission Statement Located near the beach and boat harbour of south Glenleg, Highway cafe has an excellent opportunity to become a cafe of choice for most tourists.

The mission therefore ideally is to become the preferred destination to relax after a good day at the beach. Objectives The primary objective for Highway Cafe will be to establish itself as a cafe and evening entertainment zone that offers international food. The second objective shall be to pitch business with commercial centres in the surrounding areas. The third objective will be to attract tourists with international food menus and persistent exhibition of arts and artefacts (Daniels, 2002).

Industry Analysis Trends and Characteristics South Australia in moving towards creating more and more of evening entertainment options to cater to the increasing demand for relaxing evenings. Such evidence was found in regular features of various local newspapers and magazines. For this, even the restaurant business has started venturing into entertainment zones with eating experience. Gaps in the Market Glenleg attracts a lot of tourism and they come mostly from USA and Europe. The market was In alre need 0T American ana European culslnes; nence Hlgnway care automatically gets a strong advantage over its competitors through its menu.

Most of the prospective customers of Highway Cafe are either international tourists or a highly educated segment of resident population. This calls in for a need to provide fresh and quality food all the time. This is one of the biggest challenges in restaurant operation. Highway cafe has to constantly work towards availability of fresh food with minimum wastes. The said set of target market eats out very frequently, needs a ood ambience and prefers experimenting with different cuisines. Highway Cafe will also have to keep its menu dynamic bringing in some new change regularly to keep the interest of such niche alive.

Also, the entertainment offerings have to be kept fresh, which is a very difficult task. Comfort, affordability, quality and freshness can win repeat customers (Research and Markets, 2012). Highway Cafe’s strategy is founded upon good targeting and excellent service. A typical Australian works hard and loves to spend the weekend in complete relaxation and maintaining a good social life. This leaves them with little time for home cooking. Also, a lot of women have also started moving into the workforce from being home makers.

Thus, there is tremendous demand for eating out of home and a lot of disposable income being spent on it. Many business houses also use cafes and restaurants regularly for the business meeting and client servicing. Glenleg also benefits largely from a lot of domestic tourists. The Market Market Description Casual dining and cafe business is a $100 billion industry in Australia and has a growth of 5% every year (Euromonitor International, 2012). We see more people ating out every day and even more frequently than ever before.

One of the prime reasons behind restaurant spending is women leaving homes and Joining the workforce. With increasing fall in the number of homemakers and rise in workforce, restaurant business has become a very fruitful industry that promises good growth in the coming times. Speciality coffee has grown at a compounded rate. As per latest research, this growth shall not rest for at least another decade (Euromonitor International, 2012). Coffeehouse and restaurant establishment in and around South Glenleg have diverse offerings.

Some offer Domestic and authentic Australian cuisine while others have chosen an international menu, some have chosen an upscale target market while others have gone for affordable food options, but none of these have live entertainment to go with international delicacies and a unique alfresco dining experience (Pinson, 2008). Customer Segmentation South Glenleg is an upscale neighbourhood that attracts a lot of tourists. It also has a lot of commercial property. With such locality to serve, Highway Cafe shall have a bounty of clients to offer.

The target market will include people of all ages and from ll walks of life. Our offerings range from doughnuts for kids to coffee varieties for students and adults. The cafe shall also house diabetic desserts for our aged and diabetic population. There is also a proposed cinema coming up in the same street as Highway Cafe. This shall ensure persistent customer flow at all times of the day. Cross selling opportunities look abundant and very bright. Magazines will also cater to niche demands like design photography, art, home decor, architecture and gardening skills.

The immediate target market will be people within a 5 kilometre ra01us 0T tne care wnlcn can expand wlt time to AOela10e wnlcn Is 10 Kllometres away (Glenleg SA, 2013). Competitor Analysis Highway cafe has 2 main competitors in and around South Glenleg. The closest competitor is Roman Lily, an upscale cafe cum Italian restaurant bar located in Diagonal Road. They are open 5 days a week offering fine dining experience but have limited beverage offerings. Another eatery, Cabbagetown Grill is on Morphet Road near the SA Aquatic and Leisure Centre.

They have similar priced food menu but have limited seat capacity of 25 people. Also they are open for 5 hours on weekdays but remain open for 12 hours on weekends when more people are expected. They serve tradition Australian cuisine only (Realbusiness, 2013). The third restaurant Eureka is another upscale restaurant that specialises in Swedish cuisine. This 100 seat restaurant is split between dining area and the bar. It offers traditional Swedish with Asian influences and is located up north on Hendrie Street. Neither of the restaurants have live entertainment feature nor offer American and French cuisine.

Highway cafe plans to pitch this very unavailable niche in South Glenleg. SWOT Strengths Customers should have a nice time and want to stay longer; such should be the level f service. Highway cafe aims to cater to this with the help of highly experience management and motivated staff. After a hard week at work, people want to relax. Highway Cafe’s evening entertainment plans with comfortable interiors, relaxing music and evening entertainment shall be an ideal place to unwind. Weakness Low domestic population of Glenleg. Lack of complete meals in the menu.

Opportunities In Glenleg, tourism accounts for the highest customer category for restaurateurs. It is a hot tourist destination in the suburbs of South Australia. It is located within 10 miles from Adelaide. Domestic population frequently comes to Glenleg beaches for weekend relaxation. Threat The upcoming cinema proposal might also have eateries that might split customer base. Nearby restaurants also offer international cuisine with a complete meal menu, Highway cafe offers only breakfast and appetizers. Target Market Segmentation Strategy Glenleg has a total population of about 3500 people out of which 60% are working.

The average age of residents here is 42 years. The male-female ratio is 51 :49 per 100 people. Median family income is $1250 per week (QZPM, 2011). Market Analysis Year Year 1 Year 2 Year 3 Year 4 Year 5 Customer Profile Growth Potential Customers Glenleg Area Residents 1,510 1,661 1 ,827 2,010 2,211 Hotel/ConventionNlsitors 42,750 49,163 56,537 65,017 74,770 Downtown Workers 2,200 2,640 3,168 3,802 4,562 Total 15. 00% 1 5,487 17,821 20,511 23,610 27,181 (Source: Tourism Research Australia, 2007) Highway cafe will appeal mostly to tourists and professionals of uptown Glenleg.

It shall attract population that seeks casual yet sophisticated cafe with a relaxing entertainment experience. Residents may flock in for moderately priced international cuisine and a pedestrian friendly snacking experience. Marketing Strategies Products The food menu shall largely be priced sensitively. Highway Cafe shall offer a huge variety of beverages which will include a very interesting coffee menu and smoothies, granite ices and Juices. The dessert bar will serve fresh desserts, baked recipes and breakfast quick bites.

For lunch, French and America specialities, ethnic preparations, country cooking and appetizers will be available. Evenings shall be accommodated a comprehensive dining set up offering live entertainment and exclusive alfresco dining experience. The cafe will also house a huge collection of books, magazines of arious niches and daily newspapers to offer a relaxing time for visitors. We also plan to pitch cross selling opportunities by putting art and artefacts up for sale. Live entertainment will have music combinations from American and French compositions and styles like Latin, Jazz, country music and gospel.

There shall also be enough space for readers, poets and other artists (Abrams, 2003). Price In general, a Daslc DreaKTast would cnarge per person on an average. Place Location of the facility puts them in a strategically advantageous position. It is close to the beach, close to an upcoming cinema, few reserves and commercial centres. The space is also well identified in south Glenleg because it is an acquisition of a fully functional food Joint and take away counter. This facility is exposed to a substantial population and thereby potential customers.

Promotion Highway Cafe shall primarily rely on word of mouth publicity. However, for initial sales, it shall advertise with leading dailies and radio channels of South Australia and establish itself as a weekend haven for professionals and tourists. The Organization Legal and Organizational Structure Ownership and management of Highway Cafe shall be primarily done by Thistle, Kostya, Lotz, a well known accounting practice and Amin Yak, Manager at various renowned hotels and bars and Connie Yak, a financial expert from the hotel industry.

As per ownership, the three owners share in the ration of Highway Cafe hopes to benefit from the rich experience of Amin Yak as the entire operations and management of the cafe shall be handled by him. Connie Yak shall be responsible for sourcing and application of funds in various segments of the business. Thistle, Kostya, Lotz shall look towards regulations and compliance that the cafe needs to adhere to. HRM and Key Personnel As a part of the personnel plan, Highway cafe LLC shall employ 1 chief chef, 1 line chef, 2 bartenders, 2 servers and 2 Janitors.

It is to be noted that Amin Yak shall act as the General Manager while Connie Yak shall take up the role of Finance Manager. The salary breakup of the employees is provided below. Owner/General Manager – $39,000 Owner/ Finance Manager – $29,000 Chef – $28,100 Line cook – $22,800 Bartenders: $7/Hour Servers : $3/Hour Janitor – $6/Hour Key Suppliers Fruits and Vegetable shall be brought from the local market while meat and other poultry products shall be sourced from direct sales relationships with renowned uppliers. Beverage requirements negotiations are still underway from a very well known beverage brand in Australia.

For sale of arts and artefacts, local artisans will be contacted. Such products will feature linen, paintings, wall decor, home decor items, small furniture pieces, dinnerware pieces and sculptures. Direct manufacturing and sales will be beneficial in meeting demand patterns of visitors. Financial Reports and Calculations Highway Cafe targets primarily sales to drive its cash flow. This means that the growth is bound to be slow in the initial years. However, it is more important to focus n the fact that growth does happen. Sales shall primarily be over debit and credit cards, apart from cash sales.

The aim for average collection period is a maximum of 45 days as it might put a lot of pressure on the working capital requirements. Targeted net profit is 14% for the minimum while marketing costs should not go Deyona 3% 0T sales. Hlgnway care also plans to pltcn sales wltn nelgnoourlng business houses in near future. Important Financial Assumptions The assumptions undertaken while preparation of pro forma cash flow statements, income statement and balance sheet include the following: 1. The economic growth in the country is slow and there is no significant recession occurring in the period under study. . It is also assumed that no drastic technological changes have happened during the 3 years of analysis undertaken in preparing the financial statements such that the product manufacturing equipments are made immediately obsolete. 3. It is also believed that the sources of finance and the sources are enough and Justified for the business proposal. Pro forma Cash Flow Statement (First 12 months) The cash flow analysis expects least requirements in additional cash flow for the econd and third year of operations.

Together with this, it also expects that enough sales will be generated to earn healthy net profits that will be diverted to repayment of debts very early in the business (Greenwood, 2002). Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 1 1 Month 12 Cash Received Cash From Operations casn sales $175,642 $175,643 $204,216 Subtotal Cash from Operations Additional Cash Received sales lax, v New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities a eso otner current As Sales of Long-term Assets New Investment Received

Post Author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *