Small-Business Management & Entrepreneurship
The fruition of many years of dreaming and planning will be realized through the opening of a restaurant in the Tri Cities area. Opening any business requires serious planning and calculations, yet the special needs of a restaurant are particular to the idea that many restaurants have gradual and long-term returns on investment. Start-up costs are often very significant with hard goods and food costs making up a very large output, not to mention procuring a location and either a purchase or lease and either building or remodeling space to meet the needs of the business and procuring the real estate.
Breaking even is often a guiding light at the end of a very long tunnel, between six months and two years depending on the region, and turning a profit often takes much longer. Another consideration is of coarse that restaurants usually do not provide a sustainable wage for business owners and/or shareholders until more usually two years from the start up date.
Personal sacrifices and planning can often make the difference between the success and the failure of a new restaurant.
Understanding that this is the case for food service establishments makes the planning and development of a sustainable and current business plan paramount to the success of any endeavor in the industry. Any financial contributions and/or procurements must be substantial enough to both establish the business and to provide operating costs for at least a year if not two. Additionally, personal sacrifices and saving must be a part of my own goal set because it is unrealistic to expect a rapid return on the hours I will contribute to the initial development and day-to-day running of the business.
Understanding the niche that will be filled is essential and a long list of corresponding information must be focused and clear. The business chosen for development is a healthy seafood restaurant that will serve a moderately aged crowd of professional restaurant goers.
The environment will be contemporary and display a popular open kitchen environment, where patrons will be able to fully view the preparation of their food.
The location will be chosen based on both suitability of the actual building and on the location in accordance with similar and like minded businesses, preferably not restaurants. Possibly upscale street level specialty shops that maintain business hours that generally end near seven or eight PM and serve patrons similar to the desired patrons of the restaurant, those people in the thirty to demographic.
The following research shows the older half of that demographic and some reasons why they patronize or continue to patronize restaurants.
Baby boomers spend a significant portion of their food budget on food prepared/served away from home — that is, restaurants. Consequently, our interest in this research was also in the reasons baby boomers choose specific restaurants in comparison to seniors.
As Table 2.4 shows, responses by the two groups differ in eleven cases. Three factors stand out. First, seven in ten (70.4%) baby boomers consider
(Moschis, Lee, Mathur & Strautman, 2000, p. 35) the restaurant’s comfort for socializing, compared with about half (49.4%) of the elderly Americans. Seven in ten (70.1%) baby boomers also consider the restaurant’s proximity to their homes or places of work, compared with nearly half of the elderly (47.7%). Finally, recommendation of same-age peers is valued by six in ten (61.8%) baby boomers, compared with four in ten (42.6%) older Americans.
Half (51.5%) of the baby boomers consider the restaurant’s location in relation to other types of retail outlets patronized, compared with one third (33.9%) of the elderly sample. Personnel assistance is more important to baby boomers (34.3% vs. 24.7%). As expected, senior/member discounts are more attractive to older adults because senior discounts are available only to the aged.
(Moschis, Lee, Mathur & Strautman, 2000, p. 36)
All of these factors will become consideration in the planning stages of the business development. Though they are not the only factors they are good starting point for the initial ideas of location, menu, atmosphere and advertising.
A location with an existing restaurant that caters mostly to lunch patrons would be an acceptable. The issue of parking will also be a strong factor in choosing a location. As the primary focus of the business will be evening it may be acceptable to have at least some shared parking with adjacent businesses, yet primary off street parking for at least seventy five percent of the restaurant’s full capacity would be preferred.
The sight will be conveniently located via twenty-minute drive from the city and close to the several local colleges, universities. It will also boast a location close to the airport, which will bring tourism trade and hotel guest trade.
The building itself will be upgraded to meet the needs of the location. The age of the building will be a factor in the choice as well as other factors associated with the open layout and the previous use, which could dictate the infrastructure of the building and its suitability to restaurant use. Due to the fact that some construction must take place funding must include both an amount determined to be an accurate construction estimate and the amount needed to purchase or lease that actual building or land. Equipment and decor, both stationary and movable will be considered in this part of the funding proposal as well.
The menu will consist of a light fresh seafood fare that will be served from four PM to eleven PM daily, excluding Christmas. The sight will also house a comfortable and contemporary bar, serving beer, wine and liquor with a general focus on Asian imports that lend well to a lighter seafood menu.
The dinning atmosphere and menu combination will be somewhere between a classic sushi bar and an Italian bistro. The dress of the establishment will be semi-formal to casual with an emphasis on business casual.
The majority of this body of work will consist of a nine-point comprehensive business plan consisting of mission, industry analysis, supplier information, personnel demographic, financial plan, plans for production and operation, credit policy, legal considerations and a list of critical risks and concerns associated with the potential threat to the success of the business. Through this comprehensive plan the answers to many potential issues of the business will be given substantial forethought.
Point I: Mission & Purpose
To provide healthy dining in a modern relaxed and upscale non-smoking dining environment while exploring the tastes of light and simple seafood dishes through creative preparation and presentation.
Point II: Industry Analysis
Recent trends in culinary arts are highly focused on the issues surrounding the association with health and consumption. In the past restaurant fares have often been associated with the decadence of a rare and special night out, starting with but a few establishments and growing in numbers to over one hundred thousand, in the United States. Recently, there has been a bold increase in the dependence of the consumer public on restaurants, as a major source for the meeting of their daily nutritional needs.
On a typical day in 2003, the restaurant industry should post average sales of nearly $1.2 billion.
More than 54 billion meals will be eaten in restaurants and school and work cafeterias in 2002.
Highest Household Per ://www.restaurant.org/images/research/glance3.gif
Restaurant-industry sales are forecast to advance 4.5% in 2003 and equal 4% of the U.S. gross domestic product.
The restaurant industry provides work for more than 9% of those employed in the United States.
The average annual household expenditure for food away from home in 2000 was $2,137, or $855 per person.
In 2003, the restaurant industry’s food-and-beverage purchases will exceed $150 billion. Between 1970 and 2003, restaurant-industry sales will post a compound annual growth rate of 7.2%.
National Restaurant Association 2003 (http://www.restaurant.org/research/ind_glance.cfm)
The exponential growth of the industry is testament to the level of consumer demand that has developed in the last century.
Due to this and the recent adoption of health conscious consumerism the new focus of the restaurant industry is on the development a higher awareness of both nutrition and decadence. The industry is attempting to meld the concepts of special occasions and the ability for the fare to be nutritionally sound and still very pleasurable and inviting.
The new goal of the restaurant industry and the education system that supports it has become focused on taking healthy and nutritious food and presenting.
Recent trends have also focused on other issues of health in relation to food consumption. Atmosphere has become a focus also. Many municipalities have adopted non-smoking public space ordinances, yet the restaurant industry was a leading factor in that trend as more and more restaurants adopted their own non-smoking or smoke-free spaces earnestly attempting to provide comfort and greater enjoyment for consumers.
Last month, by a two-to-one margin, Florida voters agreed to ban smoking in nearly all indoor workplaces. One of the few exceptions was “stand-alone bars,” meaning bars not located in restaurants. The city of Chicago is currently considering a similar law.
New York City is also considering a smoking ban, but one that would mirror a stricter version that took effect in California back in 1998. The California law bans smoking in all public workplaces, including stand-alone bars. Currently in New York City, a restaurant must set aside 85% of its seating for non-smokers. If Mayor Michael Bloomberg has his way, there will no longer be smoking sections in restaurants and bars. (Sanson, 2002, pg. 8)
There are of coarse a few skeptics who are resistant to the change because of the fear of loss of consumer base and there is also a small population of the smoking public who express feelings of alienation.
The proposal irks famed restaurateur Elaine Kaufman, who expressed her displeasure in a New York Times op-ed piece last month. She says existing laws allowing smoking sections in restaurants are working. If smoking is banned, she wrote, customers will no longer have a choice and it will hurt tourism…Kaufman, who owns the legendary celebrity hangout Elaine’s, says a compromise is needed because restaurateurs want to keep doing business, while the city wants to protect people from second-hand smoke. (Sanson, 2002, pg. 8)
Yet, for the most part the trend has proven both effective and sustainable as even smoking consumers acknowledge the increased comfort of the smoke-free setting and the increased enjoyment of food products without the competing odor and health risks. Of coarse any possible decrease in tourist dollars or domestic customers will be an issue that will require a great deal of future research.
Opportunities in the industry are greatest in the development of establishments associated with healthy eating. Places that take into consideration the presentation of food in an environment that is both pleasing to the eye and comfortable to the consumer. Though there are many restaurants in the regional setting selected for this new establishment it is also clear that the niche of a contemporary higher end restaurant is almost completely unmet as many of the restaurants in the region are chain type restaurants that do not serve an individualized market.
Another concept that is particular to the choice of establishment focus is the growing organic produce market (Duff, 2002, pg.11) and the growing attachment consumers are feeling toward seafood. “Retailers are using health and nutrition messages to promote the value of produce…With consumers interested in acting on nutrition messages, retailers and their suppliers are finding the business of selling produce requires greater thought and effort.” (Duff 2002-page 11)
Though the tradition of the restaurant industry has always been intertwined with the American population diversity and culture and some of the very first recognized permanent restaurant establishments were ethnic establishments, over the last twenty-five or so years the industry has begun to step away from traditional Americanized ethnic fares and begun to embrace honest traditional ethnic cuisine. In this new focus the realization that seafood is a foundational ingredient in countless cultural fares and is in demand as an ingredient much more creatively presented than it has been in the past.
Point III Procurement of Goods and Supplies
The technological developments associated with the past fifty years in regards to rapid supply and transportation is also a factor in the ability of restaurateurs to provide the types of products that consumers are demanding and in turn expose more consumers to the virtues of seafood and other somewhat more exotic cuisine choices. The availability of seafood for next day delivery from nearly all over the United States if not the world enables chefs to provide a product that is superior to anything that was available even ten years ago.
Flash freezing is also a great development but the preference for fresh over flash frozen will be maintained whenever possible. There are hundreds of seafood suppliers in the greater New York area and though price will be a consideration it will not be the paramount concern of the buying team. Quality, freshness and variety will be the keys to procurement.
The personal preference of the chef involved in this project is personal procurement rather than delivery but this will be done as time allows In the greater New York area there are many greenmarkets, open wholesale and retail grocery supply stores and many of them are open year round.
Believe it or not, there are year-round farmer’s markets throughout New York City. These open-air markets offer visitors and residents alike to purchase a variety of products directly from suppliers. Greenmarket has run and managed farmer’s markets throughout Manhattan and the boroughs since 1976. There are 28 individual locations in Manhattan, Brooklyn, Queens, Bronx, and Staten Island. Of these 28, 10 locations operate year-round. During peak season, over 100,000 customers visit the markets every week.
Approximately 200 farmers participate in these markets and include vegetable (both traditional & organic) farmers; orchard growers; meat, dairy, poultry and fish producers; and producers of baked goods, honey, maple syrup, jam, wine and plants.
There is a market open every day of the week, in one of their many locations. You can find a market by day of the week or by location. The largest and most well-known market is the Union Square Farmer’s Market, which operates year-round and is open Monday, Wednesday, Friday and Saturday from 8 a.m. until 6 p.m.
Klein (http://gonyc.about.com/library/bl_greenmarket.htm)
The restaurant’s suix chef will do as much personal procurement as time allows. From visiting some of these local markets it is also clear that some of the retailers also provide bulk and delivery service to local restaurateurs. “In meeting consumer needs, some organics retailers can deliver-literally. Urban Organics is a Brooklyn N.Y. based service that provides a variety of products to doorsteps around the New York City area…Volume helps drive prices down, but delivery makes organic produce more attractive.” (Duff 2002-page 11)
One of the personal goals of my partner and myself has been to obtain as much first hand knowledge of food distributors in the region as possible. One great way of doing this is by personally interviewing local and regional restaurant proprietors and specifically asking questions about suppliers. Some of these questions can weed out those companies that might offer the best bid price but not provide the best product. It is always important to be aware of regional suppliers who may cut corners in supplies.
Additionally it will be the responsibility of the suix chef to personally inspect product as it arrives matching order documents with invoices and most importantly with the product, while keeping a good eye out for the quality of the product as it arrives. This must be a daily task, as each day will have two to three daily specials that might include grocery items that are not necessarily ordered on a regular basis.
The distribution of alcoholic beverages may be at least slightly less difficult management decision as quality is determined outside of the distribution center. Issues of legality become of paramount concern when dealing with alcohol serving and consumption. Careful assessment of local and regional regulations is important.
It may be necessary to determine the pros and cons of beginning the service in the establishment with lower level alcoholic beverages that better match the lightness of the menu. Yet, it is clear that the eventual goal of the establishment would be to provide a full bar, offering the full variety of mixed drinks as well as an Asian flare bar menu with import beers, wines, and sake.’
Yet another question associated with the staging of the restaurant is the procurement of dry goods. The needs of the restaurant must be met through a great deal of research. The style, look and durability of linens, dishes and glassware must be taken equally in consideration when choosing the types of service that is necessary for the establishment.
There are many local and regional restaurant suppliers. The several who will be chosen to provide bids will be chosen based on broad criteria and most importantly on the ability of their staff to develop a comprehensive plan for the needs of the restaurant, which will add to the already well established knowledge of my partner, myself and the chefs.
Ultimately the cost of supplies will be one of several other considerations as it is often the case that quality will save cost in the long run as replacement of goods is required more often when an item is of lesser durability. It is also clear that durability of hard goods make a strong impression on the restaurant customer. The feeling and not only the look of an item will add to or detract from the ambiance of the total restaurant environment.
Point IV Personnel Needs
The staff will take a large part in these choices ads the ergonomics of the wares must be taken into account. Utilizing the services of the sales consultants of at least ten regional restaurant suppliers will be done at least six weeks prior to the grand opening of the restaurant. Delivery must take place in time to allow several run throughs with the staff. It is crucial that the staff feel comfortable with the products and services of the restaurant. It will also be a good opportunity for the chefs to take advantage of their creativity for any last minute menu changes and/or additions.
Staff must be experienced and cohesive. Interview decisions will be based on a broad base of characteristics including appearance, timing, attitude, experience and all potential wait staff will be expected to demonstrate their ability to both quickly learn the menu and navigate the area with a service in a dry run serving test.
Potential staff will be required to provide three personal references specific to the restaurant industry as well as prove their employment history of at least three years in one or two positions similar to the type they will wish to fill at this establishment.
With a seating capacity of one hundred and thirty, the demand for wait staff will be seven per shift. One staff member for each set of five average five top tables and two additional servers to catch overflow, in those cases when there are more two tops and/or someone needs assistance with a larger table or with delivery of the food product. Due to the limited hours of operation the wait staff will consist of a crew of twelve total with the addition of one back up host, who will fill in for my partner or myself when we are unable to host.
The dish and clearing crew will consist of six total staff members, with three per shift one being responsible for clearing and one who will be responsible for washing patron’s dishes with a third who will be responsible for cleaning kitchen dishes. The staff member responsible for kitchen dishes will work earlier hours supporting the kitchen staff’s longer work day and will leave two hours before close unless they are needed to do back up during particularly heavy nights.
The kitchen staff will consist of my business partner who will act as head chef, two grill chefs, and two suix chefs and three to five prep cooks/chefs. Hiring of kitchen staff will occur two weeks prior to the hiring of the wait staff. Due to reduction of costs there may be some acceptance given to kitchen staff who may not have a full academic education but who have the kitchen experience to do the work. The cost cutting will only be accepted if the abilities of the individual staff member meet the criteria of constant quality.
The kitchen staff in a controlled setting will learn the menu, with attention to detail, and prior to the addition of the pressure of a full dining area. It may also be a challenge for the kitchen staff to be exposed to the public area while they are working and this may be a special consideration for hire. Flamboyant and stylized work will be rewarded but not demanded as the product is more important than the delivery but both add to the eating environment. All staff will be responsible for a certain number of stocking and cleaning tasks per shift.
The staff will be attired in white button up long sleeve tuxedo shirts a colorful necktie, which will reflect the contemporary color scheme of the dinning area, black dress pants and a white linen apron. The host will be offset, wearing a black dinner jacket, white suit shirt and similar colorful tie as the wait staff. Chefs will wear a traditional chef’s uniform with a more contemporary low profile hat and an ascot that will also reflect the colors of the rest of the staff’s neckties.
Portions or all position uniforms will be provided by the restaurant for wait staff the shirts and tie, for kitchen staff two full uniforms and for the dish and clearing staff over shirts and ties. Each staff member will be expected to keep up his/her personal appearance to a standard that equals his/her appearance upon hire.
Upon hire the staff will be provided with paid training for the particulars of the restaurant, prior to its opening and with each other as they will take turns serving the roles of both customer and server. The staff will then give each other hints and evaluate the abilities of the other staff. This will serve the purpose of attempting to show the initial skills of the staff, to help demonstrate the dynamic of the staff’s ability to work together and to give assistance to the staff that may need some pointers about their style appearance or presentation.
Staffing policies will revolve around a constant theme of staff input. As people are much more comfortable and retention is higher when employees have some say in the major and minor business decisions that affect them and their work place. (Berta 2002, pg. 58) “So, what’s the secret of to retaining good employees…
You just have to treat your employees with respect, ” advised Rains (the owner of a similar sized bistro in Salt Lake City. Utah) who worked as a purveyor. “You can’t be a jerk.” He manages by example and emulates the behavior he expects from his employees…”Their ideas are as important to me as any as anything I can come up with,” Rains said. They are dealing with the customers. If they have ideas on a menu item, I’ll try it as a special. I’ll let them do anything as long as I know about it. They are more important than I am in this business. I am only the owner.” (Berta 2002, pg. 58)
It is also the goal of my partner and myself to provide a retention plan that will offer at least limited benefits including a possible marginal future profit sharing plan that may increase retention during the rough start up period of the business. The company would also like to offer a partial tuition reimbursement plan to staff members if they wish to further their education in the culinary arts industry, either in management or chef education.
Point V Financials
The actual total number of financial need for the establishment of the business will range in difference depending on the real estate procurement. The cost will be in the short-term lower if a lease is established but will be in the long-term lower if a building is purchased. A full building purchase will be the preference though a lease with an option to buy may be the best circumstances available. The decision will be made based on property availability and condition.
Initial start up costs will be broken down into three sources. The total estimated start of cost of the restaurant will be between three hundred and fifty and four hundred and fifty thousand dollars. My business partner and myself will each invest seventy five thousand from personal savings and the remaining will be allocated through Small Business Loans. Each owner also offers equitable capital in personal and business property in excess of three hundred thousand dollars.
The regional Small Business Association is assisting the partnership in location suitable lending partners for our venture. The added bonus of a very low federal interest rates and the national desire for a general increase in the economy, which has been answered by an increase in small business lending will assist the venture greatly.
Additionally, my partner is a woman who will be able to take full advantage of the special access to small business funding that is available through public programs for women owned businesses. In action the business will be a true working partnership the split of ownership will be fifty one percent to her and forty nine percent to myself.
The difference in total cost of one hundred thousand dollars is answered by the difference between leasing and/or buying the space used. Leasing with an option to buy would be the best possible scenario, as establishment of the business will be less strained if the cost is initially lower while the business proves its profitability. With a long-term goal of owning the commercial space the best possible outcome would be a lease that credits some of the monthly lease cost toward the eventual purchase price of the building. This will be a strong consideration in the desired location of the building.
The actual remodel cost could range in accordance with the previous use and condition of the building chosen and some of the initial cost of improvements could be shouldered by the owner if a lease is drawn up. The cost of the building procurement including remodeling and decorating will be approximately two hundred and fifty thousand dollars if a lease agreement is reached and three hundred and fifty thousand dollars if a sale occurs.
In a sale situation approximately three hundred thousand would go toward the sale price and an additional fifty thousand toward the remodeling. In a lease situation approximately one hundred thousand would go toward the lease. A two-year lease would be preferable. Broken down monthly to be approximately eight thousand dollars per month but would be paid in full upon signing and at least twenty five percent of the total would be credited toward a down payment on the property if a lease with option to buy were acceptable terms. The additional fifty thousand would be for remodeling and decorating costs.
The mostly fixed cost of operation capital and hard good procurement would then be two hundred thousand dollars. This will be broken down in hard goods both stationary and movable, totaling approximately seventy five thousand dollars. The remaining operations budget of one hundred and twenty five thousand dollars will cover monthly building overhead, advertising, employee wages and food costs for the initial start up and the first few months of operation. When the restaurant meets the break-even point the operations budget will then be met by the income of the restaurant.
Advertising is one of the only variable factors in the operating budget and may be decreased with time. An advertising plan will consist of print adds in local newspapers, radio advertising and thirty second cable television spots as well as signage advertising the Grand Opening. The restaurant may also garner some success through diligence from restaurant reviews and the like. The determining factor for success of any advertising plan in the long run is to provide unquestionable quality so first time patrons drawn in by ads will become return customers.
Another moderately variable cost is also food acquisition and the proper time and research with considerable checks and balances will be the determining factor of quality as well as cost.
Building Options
Lease / Purchase
Cost
Remodeling Cost
Hard Goods
Operations Budget
Lease Option
Total 550,000.00
Purchase Option
Total 650,000.00 some of the initial remodeling cost could be offset by the building owner if a lease is secured.
Funding will be secured based on these financial charts yet flexibility will be addressed if the experts at the SBA find that these figures do not match similar ventures or if lending institutions do not agree with the funding needs.
Point VI Production and Layout
The building layout was loosely discussed in the introduction and the decor was also briefly described. A professional decorator will not be used but research done by my partner and myself will assist with the project as well as some well-received advice from other regional restaurateurs.
I will be largely responsible for the decoration and lay out of the patron areas. The kitchen will be the domain of my partner.
My experience as a professional server and a restaurant manager will serve well here and her experience as a professional kitchen staff member and educated chef will serve the kitchen well. Decisions will be well thought and possible plans will be practiced through some staging on sight. Additionally, an architect may be consulted for at least minimal instruction to the remodeling work crew who will be specially chosen based on their experience with restaurant remodeling work.
The layout of the kitchen will be paramount and will be addressed by my partner who will be the leader of the kitchen staff as the head chef.
Ergonomics of the kitchen will be important but a second but equal consideration will be the aesthetics of the space as it will be visible to all the patrons from the seating area. The kitchen will also have a prep area, two dish stations as well as a pantry that will not be visible to the customers.
The kitchen will consist of mostly stainless equipment that has adjustable height opportunities. The visible pantry coolers will have glass fronts with stainless borders, to both lighten the space and to help display the colorful and fresh food products. The staff must be diligent in both placement of food items for use and aesthetics.
The patron area will be equally open and airy with high ceilings and a brightly displayed spattering of modern art. The ceilings will boast several large fabric hangings of bright but light silk like or parachute material hung draped to match a sort of loosely associated dragon theme. The walls will serve as a small gallery, which will house mostly watercolor and/or light print two dimensional artwork from local, regional artists and will rotate either quarterly or biannually as demand for wall space permits. There will be fresh flowers on all the tables. Glass tabletop overlays will protect the table linens, which therefore will not require changing between seating. The linen will be eggshell white and the napkins will be a bright color of later choosing.
The floors will be either blond hard wood or rustic lime green stained concrete with no rugs and/or floor coverings that might threaten the safety of the workers or the patrons. The main walkways will be five feet wide and the spaces between tables will be no less than three and a half feet.
Safety will be a major consideration in the development of the floor plan.
The layout of the space will include roughly thirty six tables total, with an even break down of four tops, six tops and two tops all of which will be either square or rectangular and can be combined in the central area to accommodate larger parties. There will also be a row of seating along the window ledge that will accommodate a long modern bench with a long roll cushion back done in a bright silk like solid. Four or five tables will be set up against this line with one of the seats at each table being offered as a bench seat.
The bar area will face the kitchen much like a traditional sushi bar atmosphere and the seating will be burnished stainless with a molded blond wood back and padded seat and will match the chairs at each of the lower tables. Table legs visible under the linens will also be burnished stainless and straight to the floor from the corner position allowing for ample foot room unencumbered by table legs. Banquet and/or meeting space will not be available beyond sixteen to twenty people but a limited catering menu may be available.
The decor and layout will invoke a feeling of contemporary comfort and relaxation to the clientele and ease for the servers as they navigate through the serving areas. The space must be conducive to fluid movement as all areas of service will be visible to the customers at all times. The lightness of the decor with the splashes of color will give the space a clean starched look and help reflect the healthier, lighter and simpler menu available.
Menu prices will range from twenty to forty dollars per plate and beverages will be separate. The higher end offerings plus the contemporary and comfortable environment will be the draw for the moderate to high prices. Creativity with the lighter healthier seafood cuisine will more than make up for any misgivings and quality will produce repeat customers.
The service schedule for the hours between four PM and eleven PM will include an early dinner seating and a later dinner seating reservations will not be required but will be recommended especially on special occasions and peak times and weekends. The service schedule will include for the wait staff a half hour lead-time and at least an hour close time. The kitchen staff will arrive at least one hour before production and the prep staff will arrive four hours before and leave earlier if they are no longer needed to support the chefs. The clearing and dish staff will arrive one hour after opening and leave when the kitchen and dish areas are fully clean for the next day’s service. The owners/manager will be present for extended hours until the system is in place and then hours may be reduced.
Point VII Credit Extension to Customers
The restaurant will accept cash, credit and debit card purchases but will not accept personal checks. Gift Certificates will be available with the above payment methods. Payment will be made to the server and there will be no customer pay station. Larger orders may be filled with company checks.
Point VIII Legal Considerations
State, local, regional and county regulations and laws will be carefully researched and the proper permits for servers and the establishment will be procured through the proper channels. The liquor license is in process and is awaiting the lending guarantees. As the restaurant will offer beer wine and liquor the serving staff will be of legal age to serve and additional training will be provided for both customer service and legal considerations.
The wait staff and the kitchen will also be licensed for safety and handling of food according to local laws and regulations and their licenses and/or training will be updated annually or as needed depending on turn over rates. All licenses will be posted in a visible but tasteful location according to regulations. All necessary employment information will be posted inside the back office, including state regulatory posters and staffing information.
Sales taxes and appropriate payroll taxes will be paid quarterly according to the local and/or state plans. Property tax payment will depend on the ultimate sale or lease question but will be paid annually either by the business or by the owner of the building.
License fees for the liquor license and the food handling licenses will also be paid according to the local or state schedules in some cases annually while in others at three-year intervals.
Liability property insurance will be carried and renewed annually that would in the event of an accident insure the business for one and one half times its value. Additionally, workers compensation insurance will be specific to the needs of the employee base and sensitive to the local and state regulations for restaurant workers.
Point IX Critical Risks and Conclusion
As was stated in the introduction the possibility for the extended investment vs. return that is particular to the restaurant industry must be a serious consideration before any initial output is calculated. Personal and professional sacrifice must be weighed as a guarantee for profitable return can only be a reasonable long-term goal. Potential business owners must weigh the weighty issues of low early personal returns and the high number of dedicated hours that are necessary to determine the success of the establishment.
Both my partner and myself feel confident that our skills and perseverance will be sufficient to stay out the duration of the difficult starting period. For these reason both my partner and myself have chosen to enlist the partnership of each other, because we are both aware of the risks and time commitment. We both will assume a hands on leadership role in the business rather than maintaining the perspective of an outside investor, who may risk looking only at the time table and the bottom line.
A second consideration of risk is the recognition of heavy competition in the regional vicinity of the establishment. The number of restaurants is ever increasing but seems to be heavily in favor of national chain establishments. Filling the niche of a local small business establishment can work in favor of out business. The demographic of our potential clientele, thirty to sixty-year-old professional and former professionals will be such that their discriminating tastes will appreciate the development of an alternative to the standard franchise fare. The higher prices, creative healthy menu, and comfortable contemporary environment will surely help maintain a stronghold on the limited non-franchise market.
A third problem and/or possible concern for the establishment would be to stray to far from our initial goals. The development of the niche of fresh contemporary seafood fare will serve the establishment well and any serious deviation from that goal could cause a possible loss in focus. The particular mission of this business is to establish a restaurant that serves a discriminating upper class population while providing a contemporary and comfortable environment in which to enjoy a healthy and creative seafood meal. Losing sight of this purpose could be detrimental to the success of the business.
Though building a business can sometimes require a flexible plan regarding evaluation of profitable best practices maintaining focus is paramount to future success. As can be seen in this restaurant starting guide one reason for the long-term success of food service establishments has been sighted by successful business owners as keeping their goals and their niche in focus at all times and not risking to far a stray into issues or services that do not meet the goal of the business mission.
Find your niche and stay focused. Jim A. says one of the key things he’s done that has contributed to his success is finding a market niche that no other baker occupies. ‘We’ve positioned ourselves as having a unique product. We don’t have a lot of competitors, and that has allowed us to maintain fairly high wholesale prices.’ Though Rebecca S.’s company provides a wide range of food-related products and services, they are all focused on pasta. ‘We have been asked to do a lot of things that are very far off our path,’ Rebecca says. ‘We think the way to survive is to become an expert in something. We’ve seen places that go too far out on a limb from their core business and get lost, and then they can’t be distinguished from others in the marketplace.’ (Paulo Alto Software Business Planning Tools 2003, (http://www.paloalto.com/ps/bp/ebb_details.cfm?b=1&ac=googleselect, restbind)
Concluding this plan is an argument associated with focus. The necessary focus needed to maintain the structure and integrity of a new business establishment and specifically a restaurant is significant and worthy of much consideration. There is no replacement of the careful consideration of the development of a good business plan in any business but one tailored to the particular needs of a restaurant is of coarse a must in this case. In developing this plan many ideas and factors have come to the forefront of the thinking my partner and myself and will then receive their proper address in the stage of development they are specific to. Careful thought and planning will gather weight for the future success of this business and any we chose to begin in the future.
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