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Organic Food Restaurant Business Plan

Executive Summary

The business plan is designed for a restaurant that deals in organic food items such as salads and health juices. The business has been named as ChopChop. Target market zone for ChopChop has been selected as Doha, Qatar. Based on the market analysis, it was observed that the majority of Qatar’s population is expatriates, increasing the scope among the target customers for continental food flavours. A primary analysis performed among the target market customers showed a tendency towards consuming healthy food in comparison to fast-food items. Price is not a significant issue for the customers of the selected region. The services of Chopchop will be designed only wherein the customers can choose the ingredients to be put in their salads from a large variety of vegetables in the store. Also, wraps can be served along with the salads with meat, beef and shrimp. The strategic aim of ChopChop is to capture the target market with a differentiation focus. The initial launch of ChopChop will be performed with a single store only to understand the actual market scenario and business performance. The structure of the company will be flat hierarchical to facilitate effective communication. The pricing of the products will be designed with a price skimming strategy for increasing product life in the market. The finanical calculations showed that ChopChop could achieve its breakeven point by the end of 7 months of its initiation. The cash-flow statement also highlighted probable loss during the first year of operations but a steady profit and increase in revenues during the subsequent years. It was proposed that online activities such as website creation should be reduced within the first year and supplemented by providing with two stores to launch ChopChop. The future strategy of the company will be focused on the identification and penetration of other potential Middle Eastern markets.            

Table of Contents

Business Plan for Start-Up Restaurant: ChopChop

  • 1.0 Introduction
  • 2.0 Thesis Statement
  • 3.0 Market Analysis
    • 3.1 Description of Qatari Market
    • 3.2 Description of Target Market
    • 3.2.1 Sizing of the Target Market
    • 3.2.2 Trends in the Target Market
    • 3.3 Target Audience Validation for Proposed Services
    • 3.3.1 Results of Primary Research Surveys
    • 3.3.2 Inferences from Primary Findings
  • 4.0 Strategic Analysis
    • 4.1 Purpose and context of the Strategy
    • 4.2 Objective and Outcome of the Strategy
    • 4.3 Portfolio of Services and Eco-System
    • 4.4 Stakeholder Analysis
    • 4.5 Assessment of Current Scenario
    • 4.6 SWOT Analysis
    • 4.7 Gap Analysis
  • 5.0 Commercial Analysis
    • 5.1 Detailed Description of Services
    • 5.2 Offering Schedule
    • 5.3 Intellectual Property
    • 5.4 Partnership Plan
    • 5.4.1 Strategic Partnerships
    • 5.4.2 Operational Partnerships
  • 6.0 Sales Analysis
    • 6.1 Sales Plan
    • 6.2 Pricing Plan
    • 6.3 Advertising and Media Plan
    • 6.4 Web Presence Plan
  • 7.0 Operational Plan
    • 7.1 Design, Capacity, Location and Development Plans
    • 7.2 Staffing Plan
    • 7.3 Performance Measurement Plan
  • 8.0 Governance Approach
    • 8.1 Ownership Structure
    • 8.2 Owner’s Rights and Responsibilities
    • 8.3 Organizational Structure
    • 8.4 Operational Roles and Responsibilities
  • 9.0 Business Case
    • 9.1 Business Case Assumption
    • 9.2 Funding Plan
    • 9.3 Breakeven Analysis
    • 9.4 Cash flow Analysis
    • 9.5 Financial Analysis
  • 10.0 Recommendations
  • 11.0 Future Strategy and Actions
  • Works Cited
  • Bibliography

Business Plan for Start-Up Restaurant: ChopChop

1.0 Introduction

Business initiation process includes effective strategy formulation and decision making that will help the organization in designing its contemporary and future actions (Honig and Karlsson 34). According to Delmar and Shane (1169), a start-up business should always focus on creating a transparent and accurate objective in order to design its organizational culture and structure. The international market place is becoming increasingly competitive and technologically advanced, and hence every business is trying to expand its business into new markets. Castrogiovanni (807) noted that new entrants are receiving a favourable market condition based on the influence of concepts such as globalization and foreign direct investment. In this case, the researcher has considered a start-up restaurant to be launched in Qatar. The business plan will be created with realistic market data and the environment of the concerned market. The study will include separate segments based on the functional departments of the restaurant.

2.0 Thesis Statement

Thesis statement of the plan is to initiate a restaurant in Qatar’s market. The business plan will highlight the basic needs for developing business in Qatar based on the legal and ownership requirements. The business structure and culture will be designed following the aims and objectives of the company. The business plan will include all the activities necessary for instigation of the business along with the resources and ability of the firm. The business planning process will be aligned with the business objectives with the help of exhaustive internal and external analysis of the firm (Sahlman 12).


3.0 Market Analysis

Cholla and Raith (392) noted that market nature and behaviour influence the operations of a firm based on its response to market trends. The analysis and identification of appropriate market indicate the probability of successful business development. Kraus and Schwarz (4) stated that market factors, such as customer behaviour and competition status, are crucial factors that influence business growth. A business firm needs to know and understand its target customers and their requirements to develop suitable business strategies. The following section of the report is focused on a market analysis of Qatar in the context of the start-up restaurant’s business plan.

3.1 Description of Qatari Market

Qatar, in the contemporary scenario, is facing rapid growth in its tourism and hospitality sectors courtesy the impending Fifa World Cup 2022. Leading market analysts such as Reuters and Mintel have forecasted that the revenue of the hospitality and tourism sector of Qatar is expected to increase by 4% during the event (Hill 32). This can be considered as a significant factor for attracting trade and commerce into the country. Still, some scholars such as Davila and Foster (909) have questioned the sustainability of the market boost. Based on this prediction, Qatar’s restaurant industry is expected to take help because of the increase in tourism.  Concentrating on the existing national population of Qatar, around 70% of the total population of the country consists of expatriates from other nations. This has increased the cultural diversity in the community and also allowed the hospitality industry to create diverse service platform.  The performance of the restaurant industry has also experienced a rise since 2012, and the trend is still ongoing. According to the report of Euromonitor International, the restaurant industry of Qatar can expect a rapid increase in the number of new entrants which is estimated to be somewhere between 120-150 by the end of 2020. Another crucial factor in the economic growth of Qatar is the opening of the new Hamad International Airport that has boosted the tourism industry and also urged the government to make further investments for improving the national infrastructure. Farrell (264) mentioned that changes in the economic condition of a country also influence the outlook of the population. In Qatar, the healthcare expenditure and focus of the people are increasing continuously. In 2012, the total healthcare expenditure in Qatar was 2.16% of the total GDP, which increased to 2.19% in 2013. These facts highlight the positive potential for ChopChop in the Qatari market.


Figure 1: Foreign Tourist Arrivals in Qatar, 2008-2013

(Source: Farrell, 264)

The above-given figure highlights the increase in the number of foreign tourists in Qatar within the period of 2008-2013. This increase mainly took place as a result of the diversification focus on the Qatari government to reduce their dependency on energy segment. The primary focus on Qatar is to boost its tourism and leisure market by developing the hospitality sector and also to participate in organizing global sports events. In the context of the hospitality industry, majority customers for Qatar belong to European and American countries.

Figure 2: Hospitality Source Markets, Doha 2012

(Source: Farrell, 264)

         This figure highlights the segmentation of the customer base for the hospitality sector of Qatar. As the majority of the Qatari population are expatriates, the consumer base of the country is also influenced by the international community. It can be seen the European and American customers are the majority, followed by Asia and Arab. This also presents a boost for ChopChop because the nature of services of the restaurant can adhere to the Western culture instead and still identify customer segments relevant to their service profile.

3.2 Description of Target Market

The concerned business is named as ChopChop, which is primarily a salad themed restaurant. The core products of the restaurants can be placed within a healthy food and beverage segment, and based on this categorization, the target market for ChopChop will be selected. It was previously noted that Qatar is trying to indulge in the expansion of its tourism industry and hence developing their infrastructure and hospitality segments. The core strategy adopted by Qatar is to participate in events presentation. As per the report of Deloitte 2014, Qatar has acquired presentation rights for nine significant sports to be held in between 2014 and 2022.

Figure 3: List of International Events being and to be held in Qatar

Business Plan for Start-Up Restaurant: CHOPCHOP(Source: Farrell, 264)

These facts signify the increase in tourism activities of Qatar. Still, it also brings into limelight the growing need for healthy diets and meals among the sports groups that are expected to grow with the exposure they can derive from these events. Thus, the target customers for ChopChop will be primarily the sportsperson and the expatriate communities of Qatar.

  • 3.2.1 Sizing of the Target Market

The target market, as identified from the contemporary scenario of Qatar, will be the sportspersons and the expatriates. The sizing of the target market is based on the segmentation of the customers and the compatibility of the product or service base of a company (Guffey and Loewy 42). In the case of ChopChop, the primary factors that will influence the sizing of the target market are the affordability of customers, their diet composition and the potential increase in consumption of target customers. The sizing will be performed in four steps, namely, total available market, overall served market, total target market and finally the sized market. As per the analysis of Qatari market in the previous section, the demand for hotel industry has increased at an average of 11% from 2008 to 2013 and is expected to grow at a higher rate since 2014 because of the global events that are supposed to take place.

The first market to be focused upon by ChopChop will be the country capital Doha. The firm plans to create brand awareness among the customers by opening multiple stores in different locations such as near auditoriums, sports hall, gyms, business centres, etc. Existing multinational brands mostly dominate the restaurant market structure of Qatar. The local businesses are primarily associated with the supply network or the distribution channel. The local connection of the multinational brands already operating in the Qatari market helps them in connecting with the local customers. Considering these facts, ChopChop’s market size will primarily be the Doha food and beverage industry.

  • 3.2.2 Trends in the Target Market

Healthy dieting is current among the current trend being followed by the international population (Grönroos 101). As per the studies performed by Lynch and De Chernatony (407), fast food and organic food industry are growing in a competitive manner where the sustainability factor of nuclear factor is creating the scope of long-term business. In Doha also, the market trends have reflected a high and increasing consumption of green food which shows that the business process of the company can be directed towards the growth and development of the firm. Based on this statement, the service structure of ChopChop can be considered adequate for the target market. Apart from this, another trend in the Qatari hospitality and hotel segment is the increased support of the government towards public health. As noted previously, there had been an increase of 1.83% in the public health expenditure in the year 2013 in comparison to 1.18% in the year 2012. ChopChop being a restaurant mainly serving organic food products can be used for gaining subsidies from the government and also establish a healthy relationship with the regulatory authorizes of the nation. About the increasing sports events being organized by Qatar, the health consciousness among the population has increased rapidly and can also boost the target customer base of ChopChop.

3.3 Target Audience Validation for Proposed Services

The target audience validation process is based on the ability of a company to understand and assess the market conditions for the planned product or service. The validation process for the target audience is directed towards the compatibility of the service with the behaviour of the customer and the market nature of the target market. The market validation process of ChopChop will be performed with the help of Likert Scale Survey, and multiple-choice questions wherein the target customers for the validation process is 1000 who will be selected randomly from the food and beverage market of Doha. The survey process will be performed with online platforms.

  • 3.3.1 Results of Primary Research Surveys

Following are the results of the survey process performed for market validation of ChopChop. Although the target audience considered was 1000, but only 750 results were deemed to be based on the completeness of the answers provided by the respondents.

Likert Scale Survey

Green Foods Such as Salad are Better than Junk Food

Table 1: Green food comparison with junk food: Health

 Options Responses Total Percentage
Strongly Agree 215 750 29
Agree 364 750 48
Neutral 86 750 11
Disagree 75 750 10
Strongly Disagree 10 750 1


Figure 4: Green Food Comparison with junk food: Health

As per the responses of the participants, the majority of them supported the given notion that green food or organic food is better in comparison to junk food. It can be noted that around 76% of the total respondents agreed to the given notion, whereas 11% stayed neutral, and the remaining were not supportive of the statement.

Green Food is Tastier than Junk Food

Table 2: Green food comparison with junk food: Taste

 Options Responses Total Percentage
Strongly Agree 68 750 9
Agree 259 750 34
Neutral 236 750 31
Disagree 136 750 18
Strongly Disagree 51 750 7


Figure 5: Green food comparison with junk food: Taste

In this question, the taste aspect of green food was compared with junk food. It was noted that although the majority of the respondents agreed to this statement, there were high numbers of neutral and disagreed options also. Against 9% selection of strongly agree, 18% selected disagree option. 31% of the respondents were n neutral, which can be a significant factor in customer behaviour. The deviation of the neutral responses will be the deciding factor in the context of taste and its influence on customer purchase.

Green Food is Cheaper in Comparison to Junk Food


Table 3: Green food comparison with junk food: Cost

Options Responses Total Percentage
Strongly Agree 79 750 10
Agree 219 750 29
Neutral 197 750 26
Disagree 136 750 18
Strongly Disagree 119 750 16


Figure 6: Green food comparison with junk food: Cost

Similar to the previous question, the responses for the participants in the context of the price of the green food products also signified a high number of neutral and disagreements. Total of 34% responses was disagreed and strongly disagreed with options whereas the overall of agreeing and strongly agree is around 40% approx. The neural responses were about 26%. The price of the green products has been considered to be lower than the junk food by the majority of the participants, but the difference between the agreements and disagreements is marginal.

When you are Considering a Meal, Nutrition comes before Taste


Table 4: Nutrition comes before Taste

Options Responses Total Percentage
Strongly Agree 116 750 15
Agree 316 750 42
Neutral 196 750 26
Disagree 96 750 13
Strongly Disagree 26 750 3


Figure 7: Nutrition comes before Taste

Business Plan for Start-Up Restaurant: CHOPCHOP

The responses gathered shows that most of the target market consumers agree to the given notion that nutrition is more important than taste. 15% strongly agreed to the idea, and 42% admitted to it. 26% preferred to remain neutral, whereas the remaining responses were segregated between disagreeing and strongly disagreed in 13% and 3% respectively.

Multiple Choice Questions:

What Factors are Most Influencing while Selecting a Restaurant?


Table 5: Factors Influencing Selection of a Restaurant

Options Responses Total Percentage
Hygiene 189 750 25
Customer Service 189 750 25
Price 92 750 12
Nutrition 169 750 22
Taste 111 750 14


Figure 8: Factors Influencing Selection of a Restaurant

In the context of the given question, the respondents provided a mixed response that shows that individual preferences of customers that influence their selection of a restaurant. It was noted that 25% each were focused on hygiene and customer service, whereas only 12% expressed price as a critical factor. Around 23% considered nutrition to be a prime factor, and the remaining 14% selected taste.

How do you Gather Information About a Restaurant?


Table 6: Information Collection for a Restaurant

Options Responses Total Percentage
Internet 192 750 25
Recommendations from friends 329 750 44
Leaflets 106 750 14
Kiosks 96 750 13
Others 27 750 3


Figure 9: Information collection for a Restaurant

How do you Prefer your Food to be Served?


Table 7: Food Serving Preference

Options Responses Total Percentage
Customized 261 750 35
As per Chef 219 750 29
As given in Menu 177 750 24
Others 93 750 12


Figure 10: Food Serving Preference

It can be noted that around 35% of the respondents want to have their food with their inputs and as per their likings. 29% prefer to go by the suggestion of the chef and another 24% simply focus on the details given in the menu. The remaining 12% mostly stated that recommendations from friends or as per the advice of their physician.

3.3.2 Inferences from Primary Findings

In the previous section, the questionnaire designed for the primary data collection was presented along with the responses gathered from the participants. It can be noted that the poll was segmented into two parts, namely the Likert Scale and Multiple Choice Questions. The number of completed surveys received (750) was also less in comparison to the initially set sample size of 1000, which can influence the output of the primary data analysis. Following are the interpretation from the primary data collection process:

Likert Scale Survey

Green Foods Such as Salad are Better than Junk Food

The first question of the questionnaire was aimed at evaluating the consideration of the target market in terms of health consciousness while selecting their food items or restaurant. It was observed that majority of the respondents agreed that green food such as salad, soups or juices were healthier in comparison to the junk food. This is a positive sign for ChopChop and also signifies the compatibility of the service structure of the firm with the market preferences. However, there were also some disagreements among the population, which highlights the demand and need for fast-food or ready to serve food in the present day scenario. According to Kaufman (19), the fast-food industry is mainly growing based on the accelerated lifestyle of the people, and this has also urged the customers to tend towards a ready-to-eat meal.

Green Food is Tastier than Junk Food

In the context of taste, the target customers selected organic food items such as salads and juices to be tastier in comparison to that of the fast food. However, the market trends regarding the growth of ready-to-eat food segment in the Middle Eastern market suggests otherwise. Ansoff (4) mentioned that the increase in the tourism activities and globalization of multinational fast food retailers such as McDonald’s or Pizzahut or Yum brand’s KFC had found strong markets in countries such as the United Arab Emirates. On the other hand, Qatar’s tourism is mostly dependent on the global sports events that are being held or will be held in the country in the coming years. This can initiate a healthy diet trend in the customer base and hence signifies the alignment of the gathered responses with the future potential of the Qatari market for ChopChop.

Green Food is Cheaper in Comparison to Junk Food

In the context of the price of green food and ready-to-eat food, the responses reflected a balanced tendency among the customers. An almost similar percentage of responses supported ready-to-eat food and green food items considering their price. The number of neutral responses, however, was highest, which suggests confusion among the respondents. According to Morris, Schindehutte and Allen (728), the value of a product or service can influence the cost incurred by the customers for the concerned product or service. Based on this statement, responses can be considered favourable for organic food stores. However, Nash, Sabin and Kornbluth (39) argued that the monetary value of a product or service could limit the consumer engagement based on the affordability of the target customers. Considering both these notions, pricing will be a significant factor for ChopChop in deciding business success in the target market.

When you are Considering a Meal, Nutrition comes before Taste

There was clear support for nutrition by the customers in comparison to taste in this question. As observed by Simerson (79), the tendency of the global population towards a healthy diet and nutritious food is increasing, and this has also influenced the market trends of the food and beverage industry. A similar element in the customer decision making was noticed among the sample population, which can be supportive of the concerned business house. On the other hand, Zimmerer, Scarborough and Wilson (66) noted that food habits of people change based on their ethnic, demographic and geographic locations and thus needs variety. Concerns about the health and wellbeing of the customers should be reflected in the services of an eatery. ChopChop, in this regard, needs to generate and develop their service base and customer offerings not only considering the need of the customers but also should include variety for providing out of the box service structure.

Multiple Choice Questions:

What Factors are Most Influencing While Selecting a Restaurant?

The multiple-choice questions were developed mainly to analyze the specific elements that will help the concerned business in designing their service structure. This question was regarding the most needed and appreciated service aspect of a restaurant by the target customers. As per the results gathered, it can be seen that price has been ranked as the lowest influencing variable for selection of an eatery. In contrast, hygiene and customer service are the most crucial variables. Other than these, nutrition is also essential for customers. Relating this response with the previous analysis of the Qatari market, it can be seen that health and hygiene are imperative factors for the target population. Hence, the scope of business development for ChopChop is also definite.

How do you Gather Information About a Restaurant?

Despite strong growth and an increase in the use of social media and other internet-based information systems, the influence of word-of-mouth remains significant among the target customers. The responses gathered shows that recommendations from friends and families are the most preferred source of information for the sample population, which is followed by internet sources. The medium of data to be selected by the respondents also depends on the existing communication infrastructure of Qatar. Business activities such as e-mail marketing, social media marketing, search engine optimization, etc. are also useful in spreading brand awareness. Apart from this, traditional sources of communication and marketing such as newspapers, leaflets, television ads are also helpful for brand awareness of the restaurant among the target customers.

How do you Prefer your Food to be Served?

The need for individual focus on the needs of the customers is stressing in case of the food and beverage industry. The fact that majority of the respondents want to add a customized flavour in their desired item shows that restaurants should keep provision for making suitable changes in their menu as per the customer requirements. On the other hand, the knowledge of the chef and staff of the restaurant are also necessary for assisting the customers in selecting the services. ChopChop’s primary products are salads and juices that can be made from various ingredients, and hence the restaurant has a natural alignment with the customer needs. However, the existing stock of the stores should be varied in nature for complementing the customer expectations and needs.


4.0 Strategic Analysis

The strategic analysis of the restraint will involve the planning process and the designing of the operational and organizational culture of ChopChop. As noted in the previous segment that the market conditions and the target customer needs are suitable for the particular business plan and hence can be further pursued for ensuring sustainable business growth. The strategic analysis will mainly involve examination of the organizational contexts such as objectives, internal and external environment, stakeholders analysis, business service structure, etc.

4.1 Purpose and Context of the Strategy

ChopChop’s core strategy will be to ensure a sustainable service structure that can help the restaurant in generating a competitive advantage. The competitive advantage for ChopChop will mainly be directed towards differentiation based on the factors that are primarily considered by the customers. As per the contemporary condition of the Qatari food and beverage industry, the demand for healthy and nutritious food is growing, which will help the firm in spreading brand awareness and engagement among the customers. Considering all these aspects for business set-up, the positioning will play a key role for ChopChop. The purpose of the strategy will be to position ChopChop as a friendly restaurant that keeps in mind the needs of the customers while encouraging its stakeholders to maintain the natural environment.

Figure 10: Porter’s Generic Strategy Model for ChopChop

(Source: Farrell, 264)

The above-given model of generic strategies shows that the differentiation focus will reduce the scope of competitive for ChopChop but will ensure a secure element for customer awareness and attraction. Also, the aspect of positioning the brand can be developed with a firm foothold among the customers wherein the competitiveness of brand image of existing restaurants will not hamper the business scope of ChopChop. A similar concept can also be explained with the help of the Ansoff Matrix wherein product/market diversification will be the relevant quadrant for ChopChop concerning the business plan.

Figure 11: Ansoff Matrix for ChopChop

Business Plan for Start-Up Restaurant: CHOPCHOP(Source: Farrell, 264)

The given model conforms to the situation of ChopChop, wherein both market and product are new for the company. Hence, product/market diversification is the appropriate strategy to be pursued.

4.2 Objective and Outcome of the Strategy

The objective of the strategy selected will be to help ChopChop in establishing a favourable brand position in the customer decision making process with the help of a differentiation focus. As reflected above, the strategy will be pursued as per the models of Porter’s generic strategy and the Ansoff Matrix. The implication of the selected policy is expected to generate brand awareness among the customers and help in building a positive customer-seller relationship. Furthermore, as was noted in primary data collection that word-of-mouth is the prevalent form of communication, brand awareness among customers is expected to increase customer footfall in ChopChop during the global sports events.

4.3 Portfolio of Services and Eco-System

The service structure of ChopChop is based on providing their customers individual focus for meeting their needs and requirements. The core products of ChopChop are salads, health drinks and dressings. At any given moment, the stores need to have a minimum amount of vegetables and fruits to attain the majority of the customer order. The meat will be outsourced daily from local suppliers and will be fried; this reduces the cooking expenses of the store. With more than 30 different sorts of vegetables and 15 types of toppings, ChopChop has enlarged its service portfolio. The customers will be allowed to select each of the ingredients of their salads, wraps or health drinks which will be processed by the store executives and served to the customers. The primary concerns regarding eco-system sustainability are to manage the drainage and wastage disposal, along with the water management process. The storage of the food items will be maintained with highly efficient cooling systems, and the service staff will handle all the things while warning gloves and headbands. All the elements will be served on disposal plates which can be recycled and reused. This will further reduce water usage and help in increasing the environmental sustainability of ChopChop.

4.4 Stakeholder Analysis

In the words of (), stakeholder relationship and management form the framework for the service structure and organizational activities of a business. It is essential to identify the stakeholders of a company to develop the corporate objectives fruitfully. On the other hand, Farrell (264) mentioned that the positioning of the stakeholders helps an organization in effectively designing their service structure. In the case of ChopChop, the stakeholder mapping and analysis models will be used for improving the service structure of the company

Figure 12: Stakeholder Analysis Model

(Source:  Farrell, 264)

The analysis of stakeholders will be performed per the four quadrants given in the above model. Based on the criteria given, the mapping of the stakeholders will be shown. The stakeholders for ChopChop as per the target market will be customers, regulatory authorities, promotional firms, suppliers, competitors, employees, store manager and the managerial body of the business.

Figure 13: Stakeholder Mapping for ChopChop

Business Plan for Start-Up Restaurant: CHOPCHOP(Source: Created by Author)

The position of the stakeholders in the given matrix highlights the focus of ChopChop for handling all the stakeholder needs and expectations. Customers, employees and suppliers the primary stakeholders based on whom the service efficiency and business growth can be assessed. The store manager and the managerial body of the business have the highest interest and power and thus needs to be kept informed. In contrast, the regulatory authorities and the competitors will be monitored closely for assessing the changes in the market trends and the regulatory processes.

4.5 Assessment of Current Scenario

The present scenario of the Qatari food and beverage industry presents suitable condition for ChopChop mainly because of the increasing global engagement of the country and the culturally diverse national population. It was observed that Qatar is expected to host numerous global events in the coming 6-7 years, which is expected to boost the economic as well as social development of the Qatari population. Multinational fast-food chains are presently dominating the food and beverage industry of Qatar with the support of local suppliers. However, the growing health consciousness among the local population has generated a tendency to go for organic food items such as salads, health juices, etc. Apart from this, the fact that the majority of the national population consists of expatriates from other countries, there exists a broad range of variety in the food selection and preferences of the people.

Based on the factors mentioned above, the core product base of ChopChop (salads and juices) is flexible. ChopChop has designed an elaborate service development strategy with over 30 types of vegetables and 15 dressings to be stored at any given moment. This will provide variety and choice for the customers to design their salads and wraps. ChopChop has refrained from selling cooked food and in the process have reduced their cost of operations. The meat sold will be outsourced directly in a roasted manner which can be heated and served to the customers as per their likings.

4.6 SWOT Analysis

The SWOT analysis for ChopChop will be performed in relation to the existing condition of the Qatari market:

Table 8: SWOT Analysis for ChopChop

Strengths Weaknesses
Healthy and Nutritious product base

Large range of products to be served

Adaptive product range

Customizable service structure

Minimum operational cost

Limited experience in foreign market operations

Market penetration planned with single store

Financial stability yet to be attained

Opportunities Threats
Growing health conscious among local people

Increased cultural diversity increases scope of sales

Growing global reputation can increase the market size

Sports event organizing will increase consumption of healthy and nutritious food

Climatic condition of Qatar may create problems for storage of organic food items

Procurement of organic food will be costly

Existing competition in the market from local retailers as well as multinational food and beverage firms

4.7 Gap Analysis

Farrell (264) defined gap analysis as the assessment of the actual performance of a company with its desired performance. The aim of performing a gap analysis is to ensure that a firm is utilizing its resources to their optimal level to reduce the cost of business and increase the value of the business outcome. The framework for performing a gap analysis is based on standard performance as per the industry criteria (Farrell, 264). Farrell (264) further stated that gap analysis could be performed in several directions such as business performance, human resource or any other functional departments of a company relevant to the business process of a firm.

Table 9: GAP Analysis for ChopChop

Strategic Objectives Current Standings Deficiency Action Plan
To lay down a sustainable brand position among the target customers. Designing brand profile such as tagline, logo, store design. So far, ChopChop has not progressed in terms of acquiring intellectual property rights from the local regulatory authorities which can damage the brand reputation of the firm. Acquiring knowledge regarding the legal proceedings for gaining intellectual property rights and also other legal formalities needed for operating in the target market.
To develop an efficient supplier network in Qatar.  Recognizing potential supplier channels across market area. A quality plan for measuring supplier suitability for ChopChop is missing; also there needs to be a standard contract for supplier relationship and terms of business. To create a criteria sheet that will be used for measuring the quality of the raw materials being procured from the suppliers and also develop a contract stating the guidelines of trade.
To identify the needs and design the service structure as per the target customer expectations. Performing market analysis in terms of the demographic, cultural, geographical and economic consideration of the target market. The customer profile is varied into several cultural groups because of large number of expatriates visiting the nation. The target customer group for ChopChop is yet to be identified in appropriate manner. To ascertain the eating habits of the target customers and also measure their affordability and engagement towards healthy lifestyle.
To employ and train skilled workers who can meet the customer needs effectively. Recruitment and selection process is being performed while the training module is prepared. Majority of the skilled workforce of Qatar are expatriates and the local population is engaged in business activities. ChopChop has to ensure that their staff can effectively communicate with their customers and also handle the store requirements sufficiently. The training module of ChopChop will be prepared and implemented by a third party human resource firm in order to ascertain adequate and accurate skill development among the employees.
To acquire state of the art equipments for storage and maintenance of food items. Identifying the best possible equipments for food storage and also considering the cost of implementation including the depreciation and useful life of the equipments. The store design and layout of ChopChop can be a problem for accommodating the cooling system. The cooling system needs to be integrated with the food storage and showcase area this will reduce the space taken.

5.0 Commercial Analysis

The economic analysis of ChopChop will mainly present the information associated with the business development process and the associated service structure of the company. The method of setting up the basic layout of the company will be analyzed and implemented in this section concerning the market and customer information evaluated in the previous segments of the plan.

5.1 Detailed Description of Services

The service structure of ChopChop is based on its product nature. The store will remain open from 9.00 am till 6.30 pm. ChopChop is more of a salad and juice store rather than a restaurant. All the items to be sold in the store are fresh and uncooked, except the meat and shrimp which will be used for wraps. The store will keep all the food in clean containers covered with glass so that customers can view and select the ingredients to be put in their salad as per their likings. ChopChop will provide eat on the spot, takeaway and online order delivery systems. The customers can view and order their salad online by checking the available items that will be updated on the company website regularly. There will be four employees overall in the store except for the store manager. Two employees will serve the takeaway customers and in-store customers while the other two will be responsible for online order delivery. The store manager will monitor the activities of the employees, handle the cash counter and also book the online orders. The store manager will also be responsible for updating the company website as per the availability of the food items.

5.2 Offering Schedule

The offering schedule includes the facilities provided by the store to its customers. The in-store facilities of ChopChop will mainly focus on customizing the orders under the needs of the customers. ChopChop will also keep the provision for unique add-ons in the salads to increase customer attraction. Customers ordering online will be given particular loyalty points on orders above QR14 (Qatari Riyal). Apart from these special discounts during events and occasions will be given for boosting the sales of the stores. ChopChop also has planned to initiate environment-friendly campaigns with their customers where the customers will be provided tickets to sports events on completion on environmental activities such as donating to NGOs or planting trees ( as designed by the management of the store). These activities will create a platform for ChopChop to connect with the neighbouring communities and also develop the brand image by positioning it in the customers’ perception in a favourable manner. The offers and discount plans for ChopChop will also be designed in a customized way. Customers purchasing from the store over a certain amount, such as QR28 will be allowed to pick any other salad within QR5. This will help in pushing off the existing inventory of the store. Furthermore, to reduce wastage, the company can also launch exclusive offers during the closing hours of the store.

5.3 Intellectual Property

Intellectual properties represent the identity of a business as well as the most valuable aspects associated with a firm (“Alcohol and Liquor Licences in Qatar”). The intellectual properties of an organization highlight the authenticity of the company in their respective markets and help the firm in gaining customer acceptance. The intellectual property of ChopChop is its logo, tagline and the brand kiosk. The brand kiosk and logo will be framed within the same design, whereas the slogan will directly highlight the service structure of the store.

Figure 14: Brand Kiosk, Tagline and Logo for ChopChop

Organic Food Restaurant Business Plan

(Source: “Alcohol and Liquor Licences in Qatar”)

The store kiosk will represent the brand logo as well as the tagline, both of which will be the primary intellectual properties of the company. Apart from this, the website and online domain of ChopChop will also be included in the intellectual properties of the company. Based on the success of the store and their dishes, ChopChop can also copyright some of their most preferred dishes. These will be the first elements of intellectual property for ChopChop.

5.4 Partnership Plan

Operating in foreign markets require exhaustive market information and networks to align the service structure of a firm with the market nature. This brings in the aspect of creating business relationships with domestic stakeholders and hence improves the conditions for business operations. In the case of ChopChop, the firm will not indulge in any type of direct partnerships. Still, it will create business relationships to successfully implement their strategy in the target market and the development of the desired platform for their service structure. Suppliers will be the primary parties for forming business relationships and will be performed via contracts. Apart from them, ChopChop will also create business relationships with advertising and promotional groups to develop the brand image and brand equity of the company.

5.4.1 Strategic Partnerships

The strategic partnerships of a company reflect the relationships that help the company in achieving its long-term visions and goals. Strategic partnerships take place mainly between the internal and the external stakeholders of a company. The strategic alliances to be designed for ChopChop will be based upon their strategic objectives and the requirement of the company for generating foreign aid. The performance of ChopChop in the Qatari market mainly depends on its ability to derive and serve the best food in the market in terms of price and quality. This requires the firm to ascertain its supplier network and its contribution to organizational growth and development. A thorough analysis of supplier standards and their service policies will help ChopChop in deciding upon the most suitable suppliers for the company. Another strategic partnership essential for ChopChop will be with their promotional and marketing team that will also be designated to a local marketing firm. Brand development is a critical task while operating in a new and unknown market. Although Qatar presents an untapped market for taking and also hints towards the upcoming transformations in the industry, ChopChop needs to generate customer awareness and position the brand accordingly for ensuring complete transactions. Thus, the marketing team and the supplier network will be the primary strategic partnerships for ChopChop.

5.4.2 Operational Partnerships

The operational partnerships have been termed by Farrell (264) as the relationships between the fictional departments of a company and can also be attached to external parties supporting business growth. The performance of the operational processes of a company ensures that strategic planning is being implemented to satisfy the strategic objectives of the firm. The role of the operational partners is to help a firm in adapting to the changes in the functions of the business and also improve its performance gradually along with the modifications in market and business structure. For ChopChop, the operational partnerships of the company will be among the internal stakeholders only. Employees will be the primary operational partners, along with the store manager. The code of conduct and letter of employment will be the significant contracts enforcing the operational partnerships with the concerned groups of stakeholders.

6.0 Sales Analysis

Sales analysis for a budding business highlights the target desired by the company to achieve. These potential sales can be made from the market and the actual transactions taking place in the market. All these components are compared together to form the sales analyses and set the objectives regarding the profit or breakeven of the firm (“Alcohol and Liquor Licences in Qatar”). (“Alcohol and Liquor Licences in Qatar”) added that sales analysis also helps a company in understanding the fluctuations and behaviours of demand and supply in the target market. The following section of the business plan will analyze the sales plan and other associated variables with the sales process of ChopChop.

6.1 Sales Plan

The sales plan for ChopChop will be performed in three different segments, namely, in-store sales, takeaway and online orders. The in-store purchases will include all the auctions where the consumers are placing the order within the store and consuming it there, in case of takeaway the orders will be placed within the store or by phone but will be consumed outside the store. Finally, in case of online delivery, the rules can be set from anywhere within a radius of 10kms around the store of ChopChop. During the initial stages of business operations, the in-store and takeaway sales will be the prime focus of ChopChop. However, the cost of sales for both these aspects will be higher in comparison to the cost of online transactions. Furthermore, location, pricing, brand awareness and engagement can also contribute towards increasing sales.

6.2 Pricing Plan

Pricing of the dishes will be one of the most critical factors signifying the sales ability of ChopChop. The price for each type of salad will differ based on the ingredients selected by the customers, for instance, if a customer selects Amercing Lettuce instead of local lettuce, the price of the salad will increase. Similarly, the addition of ingredients will set the price of the end products and service for ChopChop. Because of its unit measurement system, ChopChop needs to ensure that the cost of the final product does not cross the affordable limit of the customers. Furthermore, the price will have to be measured in comparison with that of the fast-food stores located nearby.

Previously in the primary data analysis process, it was noted that price was not a significant element in customer decisions in the target market. Furthermore, the nature of services and products of ChopChop is new in the market which gives it the benefit of diversification and hence the store can set its price at a higher mark to cover up the initial investments and also highlight the quality of the services being provided to the customers (“Alcohol and Liquor Licences in Qatar”) mentioned that price of a product helps it in enhancing the product life in the market. Considering these factors, the pricing strategy for ChopChop will be designed with price skimming.

Figure 15: Price influence on Product Life Cycle

(Source: Farrell, 264)

           In the above-given model of the product life cycle, the product life cycle curve has been extended from the maturity stage to elongate the market life of the products and services. This has been performed with the help of the pricing techniques wherein on entering the maturity stage, service or product will experience a change in its value with strategies such as discounts or other offers that will keep the customers attracted to the products and services.

6.3 Advertising and Media Plan

The advertising and media activities of a company are the basis of befriending an unknown market (Der Foo, Wong and Ong 385-402). In the case of ChopChop, it was noted that similar to most of the significant international market places in the world, Qatari customers also prefer to consider word-of-mouth or recommendations suggested by friends and associates. Based on this, public relations will play a crucial part in the business development process of ChopChop. The primary objective of the marketing activities will be to create customer awareness about the brand. The traditional means of marketing will be distributions of leaflets, print advertisements in leading local dailies and the kiosk of the store. Apart from this, monthly social activities such as organizing small events for spreading environmental concerns etc. Will help ChopChop in maintaining and building a customer-friendly brand perception. The initiation of the company website will further promote the marketing activities as ChopChop can engage in both social media and search engine optimization enlarging their field of operations. The online marketing activities of ChopChop are expected to enhance the market scope for ChopChop in other nearby locations such as Ar Rayyan. The marketing and public relations activities of ChopChop will be performed by a third party firm which will reduce the cost of operations and also increase the potential of marketing considering the local market knowledge of the concerned party.

6.4 Web Presence Plan

The web presence plan for ChopChop during the initial six months of their operations will mainly restrict to creating customer awareness about the brand. In this process, the primary activity will be to launch the online store, create social media profiles, provide online advertisements on various platforms such as Google Adwords, etc. These processes will be performed under the scope of search engine optimization and social media optimization. The social media accounts of ChopChop will help it to identify potential target markets and also communicate with their customers directly via chatting or e-mails. ChopChop can perform further promotion by creating online public relations processes via Twitter and Facebook. The company can also post their social and community-related activities on YouTube to highlight their brand value and core beliefs. Once the offline sales stabilize, ChopChop will integrate a payment gateway such as PayPal or American Express with their website and also begin the process of taking online orders and deliveries.

7.0 Operational Plan

As mentioned by Der Foo, Wong and Ong (385-402), the operational planning process of a firm highlights the daily needs and activities that are needed to be performed to attain the strategic objectives of a firm. This statement shows the connection between the operational activities and the business objectives of a company. The operational plan of a firm needs to be aligned with the organizational culture and work structure of the firm to ensure effective management and performance monitoring process (Der Foo, Wong and Ong 385-402). In the case of ChopChop, the operational activities of the stores can be segmented as per their sales plan, their strategic objectives and their organizational capability in terms of financial, infrastructural and human resource.

7.1 Design, Capacity, Location and Development Plans

The store design will be compact and straightforward, which will allow the manager to reduce the space needed for operations. A sample preview of the store can be gathered from the below-given image:

Figure 16: Store Design for ChopChop

Organic Food Restaurant Business Plan(Source: Created by Author)

          The above-given design shows the front space of the ChopChop store. The manager and the store executive can be seen in their appropriate positions in the store alongside the cash counter and the product shelves. There will also be a backend space in the store for managing the online order delivery and company website. Meanwhile, the sitting arrangements will be improved by placing wall-side eating racks. The storage capacity will be 20 customers at any given point of time. The location of the store will be in Al Matar Street, Doha which near to the Qatar Business Directory and Crown Plaza Business Parks. This location will ensure a steady inflow of customers. The expansion plan of ChopChop will be focused on opening new stores across the sports centres of the city and other significant business or market hubs.

7.2 Staffing Plan

Recruitment and selection process of a company is based on the criteria of performance and operational requirements (Der Foo, Wong and Ong 385-402). The recruitment and selection activities of a company should highlight the specific talents and skills that are required to fulfil the organizational goals. In the case of ChopChop, the recruitment and selection process will be outsourced to a local human resource organization or consultant. ChopChop must have employees who can conform to the needs of the local customers as well as the expatriates. Thus, the recruitment needs to be performed by a professional. The final selection of the employees will, however, be completed by the managerial body of the company. The recruitment advertisements will be given via online and print media sources, and the expenses will be included in the payment of the third party consultant.

7.3 Performance Measurement Plan

The performance measurement plan of a business can monitor the contribution of its resources towards the organizational objectives (Der Foo, Wong and Ong 385-402). Performance measurement or monitoring techniques are implemented in an organization in alignment with the work structure and the organizational culture of the firm. The performance measurement process for Chopchop will initially perform with the help of Quarterly Performance Review, the changes in the performance of the company will be measured about the contribution of the human resource of the company. As a result, the firm can monitor its overall growth as well as its productivity under the changes in the market trends and business activities. The QPR can be a demanding and strict monitoring system, but it also creates a sense of competitiveness among the employees and improves their productivity. One of the significant factors that help in associating the business performance about its human resource performance is the motivation and engagement of the employees (Der Foo, Wong and Ong 385-402). In the case of ChopChop, the manager will design incentives and reward structures about the performance of the company.


8.0 Governance Approach

Corporate governance is defined as the process of understanding and managing the functions of business about its organizational objectives (Der Foo, Wong and Ong 385-402). Der Foo, Wong and Ong (385-402) further added that corporate governance of a firm focuses on the mutual development of the business along with its stakeholders and also brings in the aspect of ethical and judicial norms associated with the company. ChopChop will be launched in Qatar as a single store with an expansion plan of being a chain restaurant serving organic food. As the initial store launch will be limited 1, the corporate governance activities for ChopChop will be mostly responsible for ensuring effective managerial planning and decision making for promoting the brand value of the company. On the other hand, to enhance customer interaction and identify their needs, ChopChop will utilize feedback forms for gathering customer information. Apart from this, the employee management system will be participative, considering the small size of the organist ion during its initial stage.

8.1 Ownership Structure

The ownership structure of a firm highlights the top management and the related stakeholders. They have high interest and power in the context of managing the business (Der Foo, Wong and Ong 385-402). Being a single store, the ownership structure of ChopChop will be simple and flat hierarchical. The business structure of the company will not only highlight effective communication among all the employees and the managers but also facilitate knowledge sharing and participative decision-making processes. Ownership structure, on the other hand, in the initial stage of business development for ChopChop, will be that of a sole trader. The owner will not consider a partnership before experiencing the market structure, trends and the performance of the business in both actual and potential terms. Based on these factors, the owner will consider selecting a partnership for ChopChop. However, there will be third party associates such as the legal and accounting groups, website development or market analysts. They will actively participate in business development but will not be authorized to share the profit of the company.

8.2 Owner’s Rights and Responsibilities

The entrepreneurial rights abide by an individual not only by authorities but also by responsibilities. As per this statement, an owner is responsible for business growth as well as holds the right to implement changes in the business. The owner of the company will also design the performance of ChopChop as per the business idea and the future strategy of the company. As the company has decided to launch a single store and gain in the market based on its success, ChopChop’s owner will be authorized to the entire profit made by the store after paying off all the due liabilities. The owner’s decision will highlight the reserves and the pay structure of the company. Furthermore, the owner will also be responsible for fulfilling all the legal and judicial formalities as needed by the local authorities and the Government of Qatar.

8.3 Organizational Structure

The organizational structure of ChopChop will be designed as per the needs of the company in the contemporary situation. As noted previously, the company has a single ownership structure and is considering the launch of an only store in the primary stages; the structure will be that of a flat hierarchy. The structure will also include the third parties as well as direct employees of the company for reflecting the full extent of the structure.

Figure 17: Ownership Structure of ChopChop

(Source: Created by Author)

The above-given structure of the company highlights all the associated members who will play a crucial role in developing the business of ChopcChop. The owner will be controlling all the outsourced activities directly to reduce the pressure on the store manager. The store manager will be responsible for sales and revenue generation from the store and all other aspects, such as supplier relationships and employee management.

8.4 Operational Roles and Responsibilities

The operational roles and responsibilities of a firm are decided based on the strategic and operational objectives of a company (Der Foo, Wong and Ong 385-402). As noted by (Der Foo, Wong and Ong 385-402), the alignment between the strategic objectives and the operational capabilities of a firm highlights the functional roles and responsibilities of the company. In the case of ChopChop, the executive functions and obligations of the firm will be mainly handled by the store manager. The store manager will design the work structure as per the instructions and the target given by the owner of the firm. The operational roles for the store manager will be to handle the inventory, sales, cash counter and employee performance.

On the other hand, the store executive will be responsible for customer handling as well as serving. The delivery person will also assist in the store management and will be responsible for the inbound as well as outbound logistics monitoring and control. The website maintenance team will focus on the nature of the performance of the growth and development of the company.


9.0 Business Case

The business case of ChopChop highlights the process of launching an organic food restaurant in a developing nation and untapped market based on the transformational process of the food and beverage industry. The demand for the selected business has been decided as Doha, capital of Qatar. The core product and service base of the company revolve around selling green salads and health drinks that can be customized as per the taste and needs of the customers. The market of Doha is at present getting familiar with the trend of healthy diet wherein green food is a primary choice of the customers. Furthermore, the majority of the Qatari population is formed by expatriates and thus can be considered to be potential customers where continental food flavours can be offered.

9.1 Business Case Assumption

The assumptions made for the business case of ChopChop are mainly associated with the internal practices of the firm. It can be noted that the ownership structure has been limited to single ownership, and the organizational structure is that of a flat hierarchy. Furthermore, the regulatory roles and responsibilities have also been assumed and have been amalgamated with the possible scope of outsourcing. Apart from this, the operational tasks, the marketing strategies are also based on assumption and the analysis of the market structure of Qatar. In the context of the financial sources and requirements for establishing ChopChop, the initial investment has been assumed to be of $45000. The sum will be provided by the owner and a partial loan from friends. Other financial estimates presented and analyzed in the succeeding sections have been assumed based on the market analysis.

9.2 Funding Plan

The funding plan for ChopChop, as mentioned above, is divided between the owner and loan. The owner of the company will provide an initial investment of $25000. This sum will be utilized mainly for setting up the store and other set-up expenses. On the other hand, a loan of $20000 has been arranged by the owner from his friends and family. This fund will be mainly used for fulfilling all the paper works and the formalities needed for business development in Qatar. The loan amount will also be used for connecting with the third party associates of ChopChop.

9.3 Breakeven Analysis

The breakeven analysis of ChopChop has been performed on the basis of their fixed costs, the total operating costs and the sales revenues. The assumptions made for the breakeven analysis are as follows:

Total Fixed Costs: $1500

Variable Cost Per Unit: $2.5

Sales Price Per Unit: $6

Table 10: Breakeven Data Chart for ChopChop

Units Sold Sales Revenues Variable Costs Fixed Costs Operating Profit
0 $0 $0 $1,800 ($1,800)
128 771 321 1,800 -1,350
257 1,543 643 1,800 -900
385 2,314 964 1,800 -450
514 3,086 1,286 1,800 0
642 3,857 1,607 1,800 450
771 4,629 1,929 1,800 900
900 5,400 2,250 1,800 1,350
1028 6,171 2,571 1,800 1,800
1157 6,943 2,893 1,800 2,250

(Source: Created by Author)


Figure 18: Breakeven Chart for ChopChop

Business Plan for Start-Up Restaurant: CHOPCHOP(Source: Created by Author)

It can be gathered from the above graph that the business performance of ChopChop will achieve breakeven after selling 514 units of their products or generating revenue of $3086. As per the product base and the market condition of the target market, the expected time frame for achieving the breakeven has been kept at seven months.

9.4 Cashflow Analysis

The cash flow statement for ChopChop has been prepared to assume the operations for the first five years.

Table 11: Cash Flow Statement for ChopChop

Cash Received Year 1 Year 2 Year 3 Year 4 Year 5
Cash from Operations
Cash Sales $33,769 $45,000 $60,000 $75,000 $100,000
SUBTOTAL CASH FROM OPERATIONS $33,769 $45,000 $60,000 $75,000 $100,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
SUBTOTAL CASH RECEIVED $1,073,769 $1,211,088 $1,279,204 $1,341,260 $1,406,670
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from Operations
Cash Spending $23,560 $28,000 $35,000 $35,000 $32,000
Bill Payments $6,936 $7,500 $8,000 $8,500 $8,500
SUBTOTAL SPENT ON OPERATIONS $30,496 $35,500 $43,000 $43,500 $40,500
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $7,500 $7,500 $7,500 $7,500 $7,500
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
SUBTOTAL CASH SPENT $37,996 $43,000 $50,500 $51,000 $48,000
Net Cash Flow -$4,227 $2,000 $9,500 $24,000 $52,000


9.5 Financial Analysis

The given cash flow statement and the breakeven analysis of the company highlight the performance of Chopchop as per the estimated income and expenses for the first five years. It can be seen that the breakeven analysis reflected a time of 7 months or sales of 514 units of products to achieve the breakeven (estimated). The cash flow statement, however, showed that the total expenses of ChopChop would be more in the first year in comparison to their income, the tax and the interest on the loans payable are the primary factors that have resulted in negative figures during the first year of operations.

10.0 Recommendations

The given business report is mainly focused on the needs for start-up and the condition of the target market. As the initial set-up has been designed around a single store, ChopChop may not be able to capture the full market potential and lose out on potential customer bases. Thus, the first recommendation will be to set-up a minimum of two stores in different locations to assess the potentiality of the target customer base. This will increase the expense of the business launch but will help ChopChop in saucing a better market space for the future. Another recommendation for ChopChop will be to reduce their costs in the online website development at the current condition and redirect it towards the set-up of another store. The offline awareness among the customers will help in establishing brand awareness and can be banked upon from the second or third year of the business.

11.0 Future Strategy and Actions

Future strategy for ChopChop will be to capture the major cities of Qatar and move on to other potential Middle Eastern markets. The services of ChopChop are uncommon and can be utilized for capturing untapped market zones. Based on this, the existing market resources need to be used optimally and hence should also be related to the process of business development and growth. Creating an online presence will also be a significant strategy of ChopChop for improving their performance in the existing as well as the future target market zones.

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