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Executive summary
This business plan is based on opening up a restaurant within the region of Bahrain for the purpose of providing good and tasty food items to the people living within the country. The plan reflects that the business will operate as a partnership among 5 partners and the business will follow a legal relationship of partnership. The plan defines that the business will use the penetration marketing strategy for entering in the market but keeping the aspects of cost and quality within mind. The use of competitive pricing will also be used by businesses for making sure that they are sustaining the market competition during the time of economic crunch. The plan contains the financial projections related to costs, income and assets for Aprico.
Company History
The company is going to start their operations in the year 2021 and the journey of the restaurant was simple as it will be started from a small cafe style business but with the popularity it will develop a market reputation and after that the café was converted into a restaurant. During that time, it is also important for the restaurant to have a defined target market and while setting up the menu the business focused over local taste by combining it with the Asian food items. Within Bahrain there are many restaurants that offer Asian food and thus the level of competition was high and thus in order to manage or mitigate the issue it was decided that the quality and cost positions are managed.
Mission
The mission of the Aprico restaurant is to “make their mark within the restaurant business by offering fusion dishes”
Vision
The vision statement related to Aprico restaurant is to “become market leader in a restaurant business”.
Objective statement
For Aprico restaurant following are the objectives that are set:
- To make sure that the quality standards as met
- To analyze the changing needs and demands of customers
- To understand that the differentiation is important for business
Description of Products and Service
The products that are offered by business are meals as within the Aprico restaurant it is important that the flavors of the dishes are maintained as it is important for achieving the business vision. The products are special for business and it is implied that the fresh juices and meals are also offered. In terms of product or services it is important that the tasks will be accomplished by business that will help them in achieving growth. The products and services are as follows:
Products | Description | Price |
 | Cheese Sambosa Fried Sambosa Fried , stuffed with cheese | BHD 2.00 |
 | Mahyawa bread Bahraini traditional bread stuffed with home made Mahyawa and baked | BHD 2.50 |
 | Salad basket This will contain a variety of salads both local and international | BHD 4.50 |
 | Chicken Biryani This is an Asian dish that will have chicken and rice with the local Asian spices | BHD 6.00 |
 | Ghoozi Traditional Saudi Ghoozi With Arabian Meat | BHD 8.00 |
 | Mansaf Jordan Traditional Mansaf with fresh Arabian meet | BHD 9.00 |
 | Luqaimat Fried with honey | BH 2.75 |
 | Soft Drinks | BHD 0.80 |
 | Fresh Juices Our daily Choice of fresh juices servide with size medium | BHD 3.00 |
Services
The services that will be offered by Aprico restaurant are as follows:
- The facility of ordering online
- The reservation of table option
- The facility to order from food app
- Giving free access to wi-fi within the restaurant
Business and industry profile
Company structure
The presence of an effective business strategy is essential as this will look into ways through which the different business policies will be implemented and the individuals that are designing the policies and responsible for implementing it will be highlighted. For Aprico restaurant the company structure is explained as follows:
Fig1: Aprico Restaurant company structure
THE EXTERNAL ENVIRONMENT
It is important to understand that it is to understand that businesses and sectors are growing. The initiatives are taken by the governments in this regard as the restaurant businesses are given flexibility to open their businesses. It is analyzed that the businesses are in the position to make sure that the visible outcomes are witnessed in the countries like Bahrain that will help in its development. It is implied that within the countries it is important that the food and beverage industry or sector should be developed as it is considered to be an important aspect that will help in the development of society as a whole.
The Economy
The analysis of country is important as this will help in managing the way through which different industries and business sectors will show their presence. The economy of the country is not only dependent over oil sector as they are also having strong tourism and financial sector and the country’s economy resumed its upward trend, with an expected real GDP growth rate of 1.8 percent. During 2018, the non-oil, industrial and financial industries achieved a 2.5 percent growth rate (Al-Ezzee, I. 2011).
The government of Bahrain is having the major contribution within the running of the country. The analysis about the ways through which the economic development within a country is managed during the time of pandemic is also a major aspect. For the opening of Aprico restaurant it is becoming important that the decisions in respect of opening in the first quarter of 2021 need to look at the economic issues faced by the country.
Industry Sales Projections
The analysis in respect of the sales projections within the country is important to analyze and they are analyzed as follows:
PERCENT SN | 2021 (5%) | 2022 ( 15% ) | 2023 ( 30% ) | 2024 (40%) | 2025 (60 % ) |
Quarter 3 ( Jul – Sep ) | 9,310 | 14,000 | 24,250 | 48,000 | 60,500 |
Quarter 4 ( Oct – Dec ) | 11,000 | 18,000 | 38,250 | 50,500 | 65,000 |
Total BHD ( BEP ) | 29,250 | 63,600 | 104,500 | 165,400 | 224,200 |
Competitor analysis
Performing competitor analysis is an essential aspect for the business plan as for Aprico it will be used for making the business aware about the competitors that are present within the environment of Bahrain and along with that the role played by the environment in helping business in achieving competitiveness within the society. For the Aprico business the competitor analysis is given as follows:
Factors | Aprico business | Weaknesses | Strengths | Opportunities | Threats | Aprico Factory | Cairo restaurant |
Price | Cost-leadership | One revenue stream only | Competitive | Complementary pricing can be used | Taxation rigidity | Low | High |
Product | Taste of dishes | Limited menu items | Increased quality and variety of ingredients used | Diversification in dishes | Competitive businesses having similar menu items | High | High |
Service | Excellent | Slow working of staff | Effective | Businesses attract foreign customers | Stealing of ideas | Average | Low |
Location | Easily accessible | Less parking area available | Easy to access | More locations can be selected | More competition in the region | High | Low |
When the market competition is analyze for Aprico it is important to understand that Cairo restaurant is present in the area of Adliya and is also giving the tough competition to business.
Market entry strategy
For businesses having an appropriate marking strategy is essential and it is witnessed that use of social media marketing is a common approach in Aprico. This explains that for the products offered by business it is kept in mind that the consumers will be made immediately available about the dishes, their presentation and the raw materials that will go into the making of the product. This will also highlight that for the businesses like Aprico the social media marketing will also be based on low-cost strategy and it is implied that this strategy will look into different business factors like maintaining online presence and bad publicity as well. The marketing strategy will be to have online official pages in place that will be used for attracting consumers to visit the restaurant. The major apps that will be used for marketing are as follows:
- Snap chat
- Official facebook pages
- Youtube
By using these apps the management of Aprico will help in managing their online presence. This will also explain that the analysis about the dishes introduced will also be used for making sure that the websites will be having the information of dishes that will be used for targeting the market. The online presence will be maintained by engaging within the influencers as they will review the food items and dishes offered by business. The detailed analysis of dishes offered and along with that the stories including the preparation of dishes or the tour of kitchen must also be used as this will help in improving customer engagement within the business.
Marketing strategy
Price
For the business choosing an appropriate pricing strategy is important and initially in Aprico restaurant the focus will be over managing the cost-leadership pricing so that the consumers will be attracted. This will also define that the use of complementary pricing for dishes will also help the customers in trying various items offered by restaurant. In keeping any of the pricing strategy it is important that the quality standards should be maintained as this will help in managing the working conditions appropriately. The items prices will range from BHD 500 to the maximum of BHD 1000 for attracting the consumer market
Promotional mix
The promotional mix will be simple for Aprico as the trade discounts of 20% will be provided to the customers. Apart from this on weekends the Buffet will be provided to them as part of the promotional strategy so that the business will develop its market. Lastly, use of coupons will also add value to the promotional mix of restaurant
Entrepreneurs and Manager’s roles
The table given below will also mention the detail about the different roles of people working within an organization:
No | Description | Position | Salary (BHD) |
1 | The CEO and managing director will look into the different activities taking place within the Aprico restaurant. He will be the sole person responsible for taking decisions as well | CEO / Managing director | 50,000 |
2 | He will look into different operations that will take place within the restaurant | Operations manager | 25,000 |
3 | The financial reporting responsibility along with the way through which the financial dimensions are set for the business will be highlighted in this role | Finance manager | 25,000 |
4 | The recoding of day to day transactions is essential | Cashier | 10,000 |
5 | Setting up the menu and bringing innovation in dishes will be the responsibility | Chefs | 15,000 |
6 | Responsible for presentation of dishes and managing working activities in the kitchen | Kitchen staff | 5,000 |
7 | Take requests and the clients orders will be taken | Waiters | 2,500 |
8 | Ensure that the restaurant is kept clean | Cleaners | 1,500 |
Plan of operations
The plan of operations of Aprico is based on making sure that the initiatives will be started from online home deliveries across Bahrain. Opening up a kitchen for traditional food will make it easy for business to establish their market and once this will be done the proper restaurant with the eating space will be started in the last quarter of 2021.
Projected financial statements
FINANCIAL PROJECTION
Sources and uses of funds statement
For Aprico, the sources and financial projections are as follows
Startup Expenses list Jan, 2021 | ||
For Aprico | ||
Owners Investment |
|
|
Partner A | 30,000 | |
Partner B | 30,000 | |
Partner C | 30,000 | |
Partner D | 30,000 | |
Partner E | 30,000 | |
Total Investment |
| 150,000 BHD |
Startup Expenses | ||
Leasehold Improvements | ||
Extra electrical works | 500 | |
Extra external decoration | 500 | |
Internal decoration | 1,000 | |
Total leasehold improvements |
| 148,000 BHD |
Capital Equipment’s list | ||
Furniture | 7,000 | |
Dining-in equipment’s | 500 | |
Take-away equipment’s | 2500 | |
Kitchen equipment’s | 2500 | |
Cleaning materials | 500 | |
Other office equipment’s | 1000 | |
Total Capital Equipment list |
| 12,000 BHD |
Location and Admin Expenses |
|
|
Salaries | 30,000 |
|
Rent | 5,000 |
|
Electricity | 6,000 |
|
Water | 4,000 |
|
Internet connection | 500 |
|
Staff Insurance | 500 |
|
License and commercial | 1,000 |
|
GOSI (General Organization for Social Insurance) | 500 |
|
Total Location and Admin Expenses | 47,500 BHD | |
Advertising and Promotional Expenses |
| |
Social Media advertising | 1,000 |
|
Publications | 500 |
|
Online Advertising | 2,000 |
|
Total Advertising and Promotional Expenses | 3,500 BHD | |
Summary Statements |
| |
Source of Capital |
| |
Owners | 150,000 |
|
Loan | 50,000 |
|
Total Source of Capital |
| 200,000 BHD |
Startup Expenses |
|
|
Total Leasehold Expenses | 6,000 |
|
Total Capital Equipment | 11,000 |
|
Total Location and Admin fee | 50,000 |
|
Total Advertising and Promotional Expenses | 3,000 |
|
Total Startup Expenses |
| 70,000 BHD |
Note:
2021, 15%
2022, 33%
2023, 45%
Aprico | |||||||||
Balance Sheet | |||||||||
2021 (000) | 2022 (000) | 2023 (000) | |||||||
Assets | |||||||||
Current Assets | |||||||||
Cash in bank | 67.5 | 90 | 90.8 | ||||||
Total Current Assets | 67.5 | 90 | 90.8 | ||||||
Noncurrent Assets | |||||||||
Capital Equipment | 1000 | 1000 | 1000 | ||||||
Leasehold Improvements | 20 | 50 | 45 | ||||||
Salaries | 25 | 25 | 25 | ||||||
Rent | 15 | 15 | 15 | ||||||
Electricity | 0.5 | 0.5 | 0.5 | ||||||
Water | 0.5 | 0.5 | 0.5 | ||||||
Internet connection | 1 | 1 | 1 | ||||||
Staff Insurance | 2 |
| 2 |
| 2 |
| |||
License and commercial | 1 | 1 | 1 | ||||||
GOSI (General Organization for Social Insurance) | 0.5 | 0.5 | 0.5 | ||||||
Advertising and Promotional Expenses | 0.5 | 0.5 | 0.5 | ||||||
Total fixed assets | 1096 | 1096 | 1091 | ||||||
Total Assets | 1163.5 | 1186 | 1181.8 | ||||||
| |||||||||
Liabilities and Equity | |||||||||
Owner Equity | |||||||||
Invested Capital | 150 | 0 | 0 | ||||||
Beginning Retained Earning | 10 | 21 | 28 | ||||||
Ending Retained Earning | 30 | 45 | 91 | ||||||
Total Owner Equity | 190 | 66 | 119 |
| |||||
Non-current liabilities | 973.5 | 1120 | 1062.8 | ||||||
Total Liabilities and Equity | 1163.5 | 1186 |
| 1181.8 | |||||
Aprico | ||||||
Income Statement for the year ended | ||||||
2021 (000) | 2022 (000) | 2023 (000) | ||||
Sales Revenue | 100 | 150 | 200 | |||
Less: Cost of Goods Sold | (55) | (70) | (80) | |||
Gross Profit | 45 | 80 | 120 | |||
Operating Expenses | ||||||
Capital Equipment | 1000 | 1000 | 1000 | |||
Leasehold Improvements | 20 | 50 | 45 | |||
Salaries | 25 | 25 | 25 | |||
Rent | 15 | 15 | 15 | |||
Electricity | 0.5 | 0.5 | 0.5 | |||
Water | 0.5 | 0.5 | 0.5 | |||
Internet connection | 1 | 1 | 1 | |||
Staff Insurance | 2 | 2 | 2 | |||
License and commercial | 1 | 1 | 1 | |||
GOSI (General Organization for Social Insurance) | 0.5 | 0.5 | 0.5 | |||
Advertising and Promotional Expenses | 0.5 | 0.5 | 0.5 | |||
Total Operation Expenses | 1066 | 1096 | 1091 | |||
Net Income |
| |||||