Business And Marketing Plan For A Italian Restaurant Marketing Essay

Business And Marketing Plan For A Italian Restaurant Marketing Essay The location is very good as the CITYPRIDE multiplex is situated in KOTHRUD which is the fastest developed suburb in Pune.It is located close to the market area with Proximity to a number of colleges,schools and IT business establishments.CITYPRIDE is the only multiplex in the area.It also has a mall which leads to high footfalls on A daily basis.With this concentration of customers.there are no Italian restaurants that offer Pizzas and Pastas in Kothrud and a tremendous need for an upscale family restaurant that offers these items for both the adults and children. The turnkey operation seats 150 customers and is the perfect size for an Italian Restaurant.With the current lease and the fitout time of three months it will be very easy to procure all the required equipments and commence operations at the earliest.The growth in the number of high income families in the KOTHRUD area is also projected.ITALIA would be a perfect neighborhood restaurant in the perfect Neighborhood. Introduction- Company Description-PEEGEE Co,a Pune based company, will operate ITALIA, a single unit, medium-size restaurant serving healthy, contemporary style food. The restaurant will be located at shop No;4,CITYPRIDE MULTIPLEX,KOTHRUD,PUNE-411038 Mission Statement-The companys goal is that of a multi-faceted success. Their first responsibility should be to the financial well-being of the restaurant. They must meet this goal while trying to consider; 1) the effect of their products on the health and well being of their customers (and their staff), 2) the impact that their business practices and choices will have on the environment, and 3) the high quality 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 their basic financial goals. Development Status The company was incorporated in December 2010. The founders are Pravin Malhotra and Vikas Malhotra. Both are the managing partners of the co. They have put Rs 10,00,000/- each towards the initial investment for research and start-up costs.The remaining will be funded by the banks. A suitable site for the first restaurant was found last month and lease negotiations are in the final stages. The location will be in CITYPRIDE MULTIPLEX,in Kothrud which is biggest and the fastest developing suburb in Pune. When 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. With that phase completed, ITALIA Restaurant can then open and the operations phase of the project can begin. Future Plans If the business is meeting its projections by month nine, they will start scouting for a second location and develop plans for the next unit. Their five year goal is to have 3 restaurants in the PUNE area with a combined annual profit of between RS 50 LAKHS To Rs 100 Lakhs. The SWOT Analysis Strength-The strength of the company lies in the fact that Mr Pravin Malhotra the managing director of the company is a graduate from the Institute of Hotel Managent, Aurangabad.He is very honest and hardworking and has worked with the Le Meridien group of hotels as a F B manager for the last three years.His experience in the hotel industry would be very helpful in the day to day running of the restaurant.In addition the fact that both the directors are putting in Rs 10 lakhs each from their own savings is also very helpful.The need for additional capital will not be very much and it Could be procured from the banks easily. WeaknessThe fact that the promoters have no previous business experience could be a major drawback for the them.This weakness can be overcome by meticulate planning and Execution. OpportunityThis business plan reflects the opportunity on the part of the promoters to lease the premises offered by the owners of the CITYPRIDE multiplex.They had put up an advertisement in the local newspaper seeking persons interested in running a restaurant at their famous multiplex.The promoters took this opportunity and immediately approached the owners.They were the first ones to do so .They liked the premises instantly since it was located right at the entrance of the multiplex .The promoters immediately took a descision and signed the lease by giving a suitable deposit to the owners of the multiplex.. The promoters saw huge opportunity in opening up an Italian restaurant in the place. This was due to the fact that there was not a single Italian restaurant in the entire suburb of Kothrud which is the largest and the fastest growing suburb of the Pune city.Pune has itself grown into a very large metropolitan city in the past five years with the advent and growth of the IT sect or,In addition Pune has always been an educational hub since the last twenty years boasting of a large number of schools ,colleges and post-graduate management and other institutes.No wonder it is called the OXFORD of the east. Threats-There are a couple of renowned food chains within close range of the CITYPRIDE multiplex.These include the McDonalds restaurant which is located around a Kilo Meter from the place and the SUBWAY which is a mere half KM away from us.These could Provide us with stiff competition and could be a threat to the growth of the restaurant.In additions threat may also be posed by someone who might opt to open another Italian Restaurant in the vicinity. THE PEST ANALYSIS The Political AnalysisThe political environment in the country is very much stable and is conducive to the growth of the industry in general and the hotel industry in particular.The Indian government is taking huge steps to promote local as well as international tourism in the country. The Economical AnalysisThe total investment required for this project is 57,80,000/-. For deposit to the owner of the premises, advance rent of one month, as well as kitchen equipment, for interiors and also starting salary to the staff. The company promoters have pooled in Rs 20,00,000/- from their personal Savings ,The remaining amount of Rs 37,80,000/- will be raised by securing a loan from any of the nationalised banks.The promoters shall mortgage one of their personal property for the same. Social AnalysisAlthough 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 cook for themselves. Trends are very important and ITALIA is well positioned for the current interest in lighter, healthier foods at moderate to low prices. The food service business is the third largest industry in the country. The average PUNEITE spends 15% 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 reasons given are 1) lifestyle changes, 2) economic climate, and 3) increase of product variety. There are new restaurants opening every month and more needed to keep pace with increasing demand. The predicated growth trend is very positive both in short and long-term projections. As modern living creates more demands, people will be compelled to eat more meals away from home. Estimates are as high as 30% over the next five years. It is understood that: Consumers will spend a greater proportion of their food Rupee away from home. Independent operators and entrepreneurs will be the main source of new restaurant concepts. Nutritional concerns will be critical at all types of foodservice operations, and food flavors will be important. Environmental concerns will receive increased attention. Technological analysis ITALIA will be 150 seat restaurant.It will cater to the students as well as the business establishments and families of the area.It will require to adopt latest technological equipments to help serve the customers better.The seating arrangement and the chairs and tables must be of high quality and great care must be taken in designing and furnishing the interiors. PRODUCT AND SERVICE PLAN IMPLIMENTATIONS-ITALIA Restaurant 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, take-out from the restaurant, and delivery to home or office. The Menu The ITALIA menu (see appendices) is moderate sized, and moderate-low priced offering a collection of Italian items with a common theme healthy (low-fat, low cholesterol, natural ingredients), flavorful, and familiar. Their goal is to create the image of light satisfying and still nutritious food. Production Food production and assembly will take place in the kitchen of the restaurant. Fresh vegetables, meat and dairy products will be used to crate most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. Service There will be three ways a customer can purchase food. They may sit down at one of the 150 seats in the dining room and get full service from a steward. A separate take-out counter will service those who wish to pick up their food. Future Opportunities There is a market segment that prefers to eat this type of cooking at home although they do not have the time to cook. There are already caterers and even mail order companies that provide individuals and families with up to a months supply of pre-prepared meals. This opportunity will be researched and developed on a trial basis. If successful, it could become a major new source of income without creating the need for additional staff or production space. The Target Market The market for ITALIA 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 frequented by CINEGOERS. It is also an area known for and catering to the demographic group they are targeting. Market Location Customers -The CITYPRIDE MULTIPLEX is the best multiplex in the area.It is one of the most desirable retail locations hosting an independent Mall.In addition it is close to Colleges and universities. The customer base will come from 3 major segments; Local population the city of PUNE with a year-round population of 45 lakhs is centrally located in the Maharashtra state and is within 15 minutes drive of 8 major suburbs. Colleges and Universities PUNE alone has 6 different schools within walking distance of Citypride. In addition 5 more colleges near the square have large student bodies. Tourism à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ There are number of tourists coming to Pune all the year long. Local businesses à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Kothrud is a very big suburb of Pune boasting of a huge number of business establishments. The food concept and product image of ITALIA will attract 3 different customer profiles; The student more and more young people have developed healthy eating habits. Some also go through a health food phase while in college. The health conscious person of any age or sex this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet. Curious and open-minded if you try it, you will like it. Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that nutritious food can be tasty, fun, convenient, and inexpensive. Market Trends The Future The population and demographics of PUNE have grown tremendously in the last 15 years.Pune which is called the Oxford of the east is famous for its educational institutes.In addition the economy of Pune has grown leaps and bounds with the Booming of the IT sector.With more and more families becoming nuclear and both the spouses working the people no longer have time to cook at home.Hence the lifestyles of people have changed. The idea of a health consciousness through nutritional awareness and dietary change has been slowly building for the last 5 years. The extensive government studies and new Food Guide Pyramid have given everyone a new definition of a balanced, healthy diet. This is not a fad but a true dietary trend backed by the scientific and medical community, the media, the government, and endorsed by the big food manufacturers. As people want to stay home more and cook less our strategy of delivering prepared meals on a weekly or monthly arrangement may be a widespread accept ed new way of eating The CompetitionThere are over two dozen restaurants in the KOTHRUD area that sell food at similar prices. Although there is no exclusive Italian restaurant this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. ITALIA will make a successful entry based on an innovative concept or novelty. ITALIA will offer an innovative product in a familiar style at a competitive price. The co must make aggressive plans of take-out and delivery that will also give them an advantage to create a good market share before the competition can adjust or similar concepts appear. Competitors Profile Competing with ITALIA for the target market are these categories of food providers: Independent table service restaurants. Chain restaurants like McDonalds and SUBWAY, Commercial foodservice companies serving students directly. Independent operators include FIVE SEASONS RESTAURANT, MCDONALDS, and The SUBWAY. There are couple of companies which sell food directly to the students as well. Competitive Strategy-There are three major ways in which they must create an advantage over their competitors; product identity, quality, and novelty, high employee motivation and good sales attitude, innovative and aggressive service options. ITALIA will be the only restaurant among all the competition which focuses the entire menu on Italian food. Pizzas and Pastas are a major hit amongst the students as well as the IT public in Pune.Each of the competitors offers only one or two Italian dishes on their menu.ITALIA will be the exclusive Italian restaurant in the entire suburb of Kothrud. Once they have tried the restaurant, their experience will be reinforced by friendly, efficient, knowledgeable service. Return and repeat business will be facilitated by accessible take-out and delivery options. Marketing Plan Sales Strategy Market Penetration Entry into the market 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 fixed preferences. In addition, Rs 1 lakh has been budgeted for a pre-opening advertising and public relations campaign. Marketing Strategy Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketing vehicles must be created to convey their presence, their image, and their message. Print media local newspapers, magazines and student publications, Broadcast media local programming and special interest shows, Hotel guides, concierge relations, Chamber of Commerce brochures, Direct mail subscriber lists, offices for delivery Misc. 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 marketing effort will be split into 3 phases; Opening An advanced notice (press packet) sent out by the PR firm to all media and printed announcement ads in key places. Future plans and Strategic Opportunities Catering 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 market our products for daily delivery or catered functions. Operations Facilities Offices The restaurant at CITYPRIDE MULTIPLEX is a 2400 Square foot space. It was formerly a restaurant and needs on minor structural modifications. The licenses and codes issues are all in order. New equipment and dining room furnishings will be purchased and installed by the general contractor. Offices of the corporation are presently at MR PRAVIN MALHOTRAS home but will be moved to the restaurant after opening. Hours of Operation The restaurant will be open for lunch and dinner 7 days a week. Service will begin at 11:00 AM and end at 11:00 PM. Employee Training Education Employees will be trained not only in their specific operational duties but in the philosophy and applications of our concept. They will receive extensive information from the chef and be kept informed of the latest information on healthy eating. Systems Controls A big emphasis should be placed on extensive research into the quality and integrity of their products. They will constantly be tested for their own high standards of freshness and purity. Food costs and inventory control will be handled by their computer system and checked daily by management. Food Production Most food will be prepared on the premises. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Food will be made mostly to order and stored in large coolers in the basement. Delivery Catering Food for delivery may be similar to take-out (prepared to order) or it may be prepared earlier and stocked. Catering will be treated as deliveries. Management Organization-Key Employees Principals-PRAVIN MALHOTRA AND VIKAS MALHOTRAS are the managing partners of the company.They will initially look after the setting up of the restaurant.The restaurant will have a cashier,a FB manager and a team of stewards and waiters to look after the customers. Compensation Incentives ITALIA will offer competitive wages and salaries to all employees with benefit packages available to key personnel only. Management to be Added They must search for a general manager and executive chef. These key employees must be well chosen and given incentives for performance and growth. Management Structure Style Mr Pravin Malhotra will be the Chief Operating Officer. 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. Long-Term Development Exit Plan-Goals-ITALIA is an innovative concept that targets a new, growing market. We assume that the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality, consistency and security (safety of food) that will make us the leader of a new style of dining. Strategies-The marketing efforts must be concentrated on take-out and delivery, the areas of most promising growth. As the market changes, new products may be added to maintain sales.-Milestones-After the restaurant opens, they must keep a close eye on sales and profit. If they are on target at the end of year 1, they will look to expand to a second unit. Risk Evaluation-With any new venture, there is risk involved. The success of the project hinges on the strength and acceptance of a fairly new market. After year 1, we expect some copycat competition in the form of other independent units. Chain competition will be much later. Exit Plan-Ideally, ITALIA will expand to five units in the next 10 years. At that time, we will entertain the possibility of a buy-out by a larger restaurant concern or actively seek to sell to a new owner. CONCLUSION- From the above mentioned analysis and the plans formulated therein we can come to the Conclusion that: Pune is the most favoured destination for IT companies,students and the business community.The economy of Pune has grown with leaps and bounds in the last decade. The popularity of The Italian foods like pasta and pizza have grown with the students and the families. Kothrud is the fastest developing suburb in the Pune city.It does not have an Italian restaurant.Hence there is a tremendous scope for the setting up of an exclusive Italian restaurant which will cater to the student and the IT community. The premises chosen by the company is very good and it attracts a large number of footfalls daily. The footfalls increase dramatically during the weekends. The owner Mr Pravin Malhotra being a hotel management graduate and having a work experience of a fb manager at a reputed hotel is well versed with the job of running a restaurant.Altough he has no business experience ,his work experience may see him through. The owners of the company have a strong financial base and have invested about 20 lakh rupees for setting up the restaurant. In addition they have a personal property that can be mortgaged to the bank for a loan. Although there is a presence of other food chains like the McDonalds and Subway the project may still be a huge success because of the fact that there is not a single restaurant serving a complete Italian menu. With a proper marketing plan and strategy adopted by the company the project is bound to succeed. The owners have also hired quality chefs and managers who in turn will hire quality service staff which will provide healthy and nutritious food to the people.