This business plan gives credible information pertaining to terrace grill food and Beverage Company. It focuses on its planned expansion giving pertinent details on how the institution seeks to mobilize funds and execute its affairs appropriately. It covers the financial plan of the company where sources of finance have been uncovered, projected returns and sales volumes. It also covers the total amount required to aid the expansion that is quoted at $100000, marketing plan, management team, location analysis, and manufacturing plans.
Terrace grill is an upcoming food and beverage providing institution that operates in Michigan State. Two passionate entrepreneurs who are on a mission to revolutionize service delivery in the food and beverage sector founded the company in the year 2009. The main objective of the corporation is to facilitate the provision of affordable food items to the locals in the area. It was set to bridge the gap created by large corporations that are neglecting certain carders of personalities especially the less fortunate. Its target market is the low-income earners who also have a right to enjoy decent meals in hotels (Costello 21). Since its founding, the joint has been recording good performance in terms of revenue and capacity. The performance is attributable to its exemplary management, effective and functional business plan, qualified support staff, and quality services.
The food joint has also developed viable operating strategy and competitive plan purposely to foster its sustainability in the dynamic field. In its menu, the company serves its customers with fresh meals that include local/traditional and modern dishes. The dishes include local vegetables, fish, beef, chicken and various snacks. Tea, coffee, soft drinks, and cocktail drinks also form part of the beverages provided to customers. The corporation has remained steadfast since it has a good financial plan, resource mobilization strategy, marketing plan, management and food processing procedure. These aspects elevate its standards to higher levels of competitiveness.
Management Team of The Company
The restaurant has a vibrant management team that comprise of the general manager, marketing and product managers. The managers’ role in the institution is to formulate operating guidelines and coordinate affairs at all levels of operation in ensuring that target objectives are met. They are the custodian of the business plan as they work towards ensuring its holistic implementation. They set strategies both operational and non-operational; formulate goals, and production systems (Kirzner 36). Below the managers is support staff whose role is to deliver services to customers based on the set procedures. They are to serve or attend to customers, prepare meals and beverages, and enhance hygiene of the vicinity. The institution’s management team and staff structure is provided below.
The restaurant is located in a prime area based on the opportunities available. The location is geographically favorable since the terrain is flat allowing easy movement of vehicles, cyclists among other groups of people. The area also has a large number of populations who act as potential customers. This depicts that the joint is located in an area where potential customers live. The high number of people in the area has been giving the institution lifeline financially and with flow movement of items. As it seeks to expand, the company has set out clear parameters with which the new branches are to be located. The parameters include availability of customers, food items, human resource, good transport system and social amenities. Going forward, this will enable the institution to consolidate its competitive advantage and expand its performance including market share.
Terrace grill restaurant has developed a vibrant and flexible marketing plan that seeks to uphold its competitiveness. The marketing strategy has enabled it to create the awareness of its existence and key services offered to customers. In its plan, the company has resolved to using effective mode of advertisements, and promotional campaigns in driving its expansion agenda. In particular, the restaurant plans to continue using both internet and local media for advertisement campaigns. The channels include social network platforms such as facebook, whatsapp, search engines, radios, and TVs. Flyers, promotional campaigns in churches, seminars and others will also been adopted to steer marketing activities. The channels or methods have been selected due to their capacity of facilitating access to a wider population (Fingas, 16)). They form the major sources of information that the target market uses frequently in the region and beyond. Evidently, the marketing channels have fostered the performance the company has been able to record. The wide acceptance and knowledge about the institution’s services are attributable to the effectiveness of the marketing platforms. The institution budgeted well for the marketing campaign with adequate funds set aside for the course. Over $30000 had been set aside to run marketing activities.
To date, the restaurant has invested heavily in the production section. Relevant machines and other operating equipments necessary for processing of food, cooking and preparation of beverages have been procured. The availability of the equipments is to ensure that the quality of the food items is not compromised at any rate (McGuigan et.al 22). The company through its processing manager has set out a clear procedure of food preparation and standards of hygiene expected. The procedures resonate with diverse types of foods to avoid exposing customers to severe risks. The plan of manufacturing starts in the institution by acquisition of raw food, processing and serving to customers.
The restaurant started operations with a financial base of $200000 that was distributed between various cost centers. The spending of the amount was based on a clear budget drafted by the managers. The distribution of the amount is as shown below
|Cost center||Amount ($)|
|Rent (1 year) |
Currently, the restaurant seeks to raise more capital to fund its expansion plans. It seeks to expand its network to cover various towns and cities. The expansion plan is estimated to cost over $100000 in the current year. This will in turn have an impact on the quality of service delivery, infrastructural growth and marketing. The money is budgeted as shown below
|Cost center||Amount ($)|
|Equipment and furniture |
The initial capital that was used in starting up the business was a consolidated fund generated from personal savings, loan and donations from friends. The business has not suffered immense expenses in terms of interest costs since over $ 130000 of the capital was generated from personal savings, while $50000 and $20000 was generated through bank loan and donations respectively. The money was well spent on major cost centers that have seen the institution grow to greater heights. Currently, the company plans to expand its network to various parts. The expansion budget has been estimated to be $100000 that is to be funded by the reserve amount and company savings and 20% bank loan. The sources are preferred to reduce cost of finance and to enable the institution to maximize on its resources. The money is to be used in launching two new joints within the state to increase the number of the institution’s branches to four. The joints will in turn increase the net worth of the company to a record high of $6560000in the year ending 2015 up from current estimated figure of $430000 in the current year. The sales value, amount of expenditure, customer numbers, assets value among others are also set to increase as it expand. The figures are given in the projected income and cash flow statements for five years.
It is projected that the institution’s sales value will be increasing by 20% every year. This will give arising sales value from $900000 in 2014 to $1866240 in the year 2018. Likewise, the increase will in turn have a great impact on the income levels as shown.
Projected Income Statement
|Net sales |
Cost of sales
The food joint is facing tiff rivalry from other established service providers in the region and globally. For instance, its main rivals are ken chic, Bisto, American spoon, Chendlers, Comack’s dell, and Dripworks coffee. Despite the fierce competition, the institution through its management has formulated effective strategies of dealing with the situation. Firstly, the service provider has resorted to provide superior services at affordable rates. This strategy is working for it as the institution has been able attracts more customers. It is the same strategy that it plans to continue adopting in ensuing increased performance as it expands. The company also plans to roll out intensive marketing campaign to help in creating awareness of its existence and services in various settings.
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- Fingas, Jon. AT&T lowers Next device pricing, just happens to trump Verizon T-Mobile Web. 24th May 2010.
- Kirzner, Israel. Market Theory and the Price System. Auburn, Ala: Ludwig von Mises ALAInstitut, 2007. Print.
- McGuigan, James, Moyer, Ricahrd and Harris, Frederick. Study Guide Managerial
- Economics: Applications, Strategy, and Tactics. United States: South-Western Thkomson Learning, 2002. Print.