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Acknowledgements

In producing a project of this kind we are very thankful to a number of people who contributed in successfully finishing the project. We are also we thankful to people who took part in the survey and helped us in making important decisions for Sehtak Restaurant. In the end we appreciate all the efforts by our instructor to provide us an opportunity to learn how to make a business plan by taking care of all the business aspects like Marketing, Human Resources and Finance.

Contents

Acknowledgements....................................................................................................................2

Introduction................................................................................................................................6

Details of the Company and Business Goals.............................................................................6 Business Idea & Description..................................................................................................6 Characteristics of product/Service & unique selling point (USP).........................................7 Mission Statement..................................................................................................................7 Goals and Objectives (SMART)............................................................................................7

Specific...............................................................................................................................7

Measurable.........................................................................................................................7

Achievable..........................................................................................................................7

Results-based......................................................................................................................8

Time-specific......................................................................................................................8

Location..................................................................................................................................8

Form of Business Ownership.................................................................................................8 General Operational Resources..............................................................................................8 Environmental Analysis.............................................................................................................9 Macro environmental analysis (PESTEL factors)..................................................................9

Political..............................................................................................................................9

Economic............................................................................................................................9

Social..................................................................................................................................9

Technological...................................................................................................................10

Ecological.........................................................................................................................10

Legal.................................................................................................................................10

SWOT Analysis....................................................................................................................10

Internal Strengths.............................................................................................................10 Internal Weaknesses.........................................................................................................10 External Opportunities.....................................................................................................10 External Threats...............................................................................................................11 Characteristics of Target Market..........................................................................................11 Evidence to determine target market....................................................................................11 Use/Evidence of Market Research.......................................................................................12 Competitor Analysis of two major Competitors..................................................................15

Ginger...............................................................................................................................15

Al Bathna.........................................................................................................................16 Three Risks associated with running the business...............................................................16 Risk 1...............................................................................................................................16 Risk 2...............................................................................................................................16 Risk 3...............................................................................................................................16 Marketing Plan.........................................................................................................................18 Product Positioning..............................................................................................................19 Pricing Strategy....................................................................................................................19 Place/Distribution Strategy..................................................................................................19 Promotion Strategy...............................................................................................................19

Summary..................................................................................................................................19

General Marketing Pan Year 1& 2...........................................................................................20 Organizational Structure, HR Plan and business operations................................................20 Summary of Investors and management team.................................................................20 Organization chart............................................................................................................20

Partners/Directors:............................................................................................................21

General Manager..............................................................................................................21 Chef and Assistants..........................................................................................................21

Sales Manager..................................................................................................................21

Accountant.......................................................................................................................21

RnD (Research and Development)...................................................................................21 Compensation Plan...........................................................................................................22 Financial Projections............................................................................................................23 Start-up costs....................................................................................................................23 Sources of Funding..........................................................................................................23

Break-even.......................................................................................................................23

Profit and Loss Statements or Income Statements...........................................................24 Balance Sheets.................................................................................................................25 Cash Flow for Year 1 & Year 2........................................................................................26 Executive Summary.................................................................................................................27

References................................................................................................................................30

Appendix..................................................................................................................................32

Part 1 – Business Plan Report

Introduction

This business plan outlines the details of our company i.e. “Sehtak Restaurant” and starts by highlight the business goals, followed by the basic business Idea. The report is divided into three parts, which are Part 1 presenting the characteristics of the products offered along with the unique selling point. Environmental Analysis and Marketing plan is also present in Part 1. Part 2 presents the organizational structure, HR plan and business operations followed by the Financial Plan for 2 years and Part 3 presents the executive summary of the project.

Details of the Company and Business Goals

The details regarding “Sehtak Restaurant” are provided below along with mission statement and the goals of the restaurant. The restaurant focuses on providing healthy food for diabetic people.

Business Idea & Description

The business idea is to open a good quality restaurant in Musaffah Sanaiya, Abu Dhabi, the restaurant will serve healthy food free of high levels of cholesterol and sugar content. Sehtak Restaurant will specially cater the needs of diabetic people by providing healthy and organic food, at the same time the restaurant will also focus on providing customer based services for all its customers. The name of the restaurant Sehtak means your health in Arabic. The restaurant will focus on providing cuisines which are good for health instead of focusing on Asian, Arabian, Chinese or other cuisines.

UAE stands among the countries where diabetes is found in earlier ages as compared to the world average (Ismail, 2012). The highest population of diabetic people in UAE falls between the ages of 40 to 44 against the world average of 55 to 59, also UAE now stands at 11 th position globally for diabetes. 19% of the population in UAE are diabetic.

Therefore Sehtak Restaurant will specially cater this market by providing healthy food good for the health of diabetic people to increase the health of diabetic people as shown by the name of the restaurant Sehtak Restaurant.

Characteristics of product/Service & unique selling point (USP)

A unique selling point or proposition (USP) is a unique feature or element of the product (Reid & Bojanic, 2010).The unique selling point of our products is the “healthy food” feature, Sehtak Restaurant provides food which is good for everyone, including diabetic patients, heart patients and other people suffering from illness who cannot eat unhealthy food.

The target market is a fast growing market of UAE, at the moment it is the 11% of the total population in UAE. Therefore to cater the needs of the target market the restaurant plans to provide blood sugar test along with calories count in the menu. People who eat at Sehtak Restaurant will be able to calculate the calories they eat at the restaurant. Along with calculating the calories they can find out the calories present in the blood already with the help of the blood test.

Mission Statement

“To become the market leader in providing healthy and organic food, good for everyone, making the society a better place by improving the health of people living in the society”.

Goals and Objectives (SMART)

The SMART goals are specific, measurable, achievable, results-based and time-specific (Dyck, 2010). The SMART goals of Sehtak Restaurant are listed below:

Specific

The specific goal of Sehtak Restaurant is to take greater shares of the market by providing good food and targeting the competitors market to increase the market share to take hit the target net profit of more than AED 4 million.

Measurable

Our objective of becoming the market leader in providing healthy and organic food will be measured with the help of market share and sales revenue comparison with competitors. The Sehtak Restaurant has a target of making sales revenue of more than AED 4 million.

Achievable

In UAE more and more people are becoming patients of diabetes and obesity is also on a rise in UAE Nationals, consequently more and more people are tuning into healthy food and healthy lifestyle. Therefore our objective of becoming the market leader by providing healthy food is achievable in a market where more and more people are tuning into healthy eating habits. The research revealed that 11% of the population in UAE are affected by diabetes therefore becoming a leader in providing healthy food in UAE is achievable.

Results-based

The research showed that Musaffah Sanaiya is a crowded area with expatriate students and locals and there are only few restaurants in the area and none of them is offering healthy food. The survey revealed that people in the area are already concerned with their diet and they are demanding a need for the restaurant which serves healthy and good quality food. The research revealed that people in Musaffah eat from outside more than 7 times a week. Hence there is a market for a restaurant like Sehtak Restaurant to become the market leader by providing healthy food.

Time-specific

The Sehtak Restaurant will cover its investment within the first year of its operations the details are shown in the financial plan. The total cost of setting up the business is AED 740,000 which is covered by December 2013 with sales revenue of AED 4,800,000.

Location

The restaurant will be located on the main street in Musaffah Sanaiya, Abu Dhabi. The survey revealed that a lot of students visit the area to have food accompanied with the locals who are also health conscious.

Form of Business Ownership

Sehtak Restaurant is a limited liability partnership business, of three partners which are as follows:

Member 1: 25% share capital (AED 100,000) Member 2: 25% share capital (AED 100,000) Member 3: 50% share capital (AED 200,000)

General Operational Resources

The operational resources for Sehtak Restaurant are land & building, machinery & equipment, Furniture & fixtures and employees. The employees of the restaurant will include the Chef, Restaurant Manager and Other Staff.

Environmental Analysis

The socio political environment factors in Abu Dhabi, UAE are very favourable for the business of a restaurant. There are only few restaurants in Musaffah Sanaiya and none of them offers healthy food. The PESTEL factors and SWOT Analysis of the external and internal environment is presented below.

Macro environmental analysis (PESTEL factors)

The changes in macro environment have effects on all the markets in an economy instead of being specific to a single market (Brownhill, 2008). These macro environmental changes could be political, economic, social, technological, ecological and legal

Political

The government policies towards opening a new business in UAE are very favourable especially a restaurant with a logo of healthy food will certainly have no problems in registering and operation from the food inspection authorities.

Economic

The world economy is in a credit crunch following which the prices of land and property has fallen dramatically, which is favourable for new investors looking to start a new business. Consequently the global recession will favour us in acquiring land, building and equipment at low prices.

The UAE is a country where increasing tourism is the target of the government; the hospitality market is likely to reach YSD 7.5bn by 2016 from 4.5 billion in 2011, which was an increase of 11% (Reporter, 2013). The UAE’s tourism sector growth is 6.5% per annum between the year 2011 and 2021. The hotel and tourism industry in UAE are growing at a fast pace.

Social

The population of UAE is increasing at a fast pace and Abu Dhabi is becoming more and more populated increasing the demand for food, housing and basic necessities of life. The

people living in Musaffah Sanaiya, Abu Dhabi are becoming more and more health conscious and students are already given education on health eating habits. The market research evidence section shows the result of the market survey.

Technological

The technologies like ERP Software (Enterprise Resource Planning) will help us to manage the accounts of the restaurant and raw materials it will help to manage the resources more effectively. We will also use barcode scanners and EPOS (Electronic Point of Sale) for keeping all the records for sales.

Ecological

The carbon omissions of our restaurant will be controlled with the help of a chimney by releasing the smoke produced in the kitchen high above in the atmosphere. All other operations of our restaurant are environmentally safe and the food offered by our restaurant is already healthy.

Legal

Employment law in UAE allows us to seek specialized Chef from overseas also it allows us to employ any one as required by the restaurant from anywhere in the world. Our products are safe and have no concerns with healthy and safety authorities.

SWOT Analysis

SWOT Analysis is an important part in organizational planning and must be used to manage internal and external threats and opportunities for the organization (Ferrell & Hartline, 2011). The Sehtak Restaurant’s, weaknesses, opportunities and threats are as follows:

Internal Strengths

Dedication in producing healthy food for all

Commitment to be the leading local healthy food producer

Crafting a distinctive identity in the market by launching healthy and organic food

Internal Weaknesses

Other restaurants with Arabian, Indian or Chinese cuisine.

Restaurants already present in the market with experience.

Competitors offering new promotions and offers.

External Opportunities

None of the restaurants in area offering healthy food.

Niche market for healthy food in Musaffah Sanaiya, Abu Dhabi Exists.

UAE government promoting new business as UAE set to become world’s business hub.

External Threats

World-wide global depression reducing consumer buying power and sales for

restaurant in UAE. Chinese and Indian cuisines are major threats for Sehtak Restaurant.

Competitors running strong advertising campaigns in the area.

Characteristics of Target Market

The target market includes diabetic as well as other people in the Musaffah area who are conscious about eating healthy. The target market in Musaffah Sanaiya is very health conscious as more and more people are becoming diabetic. As more and more studies reveal that fast food is linked with increasing asthma and allergies in children (Carswell, 2013). The target market is very conscious about eating healthy food, and launching a restaurant offering healthy cuisine for all is demanded by the target market as revealed by the survey.

The market survey revealed that more people in UAE eat from restaurants outside and the diabetes is also on a rise reaching as much as 11% of the population. Therefore more and more people are tuning into healthy eating. People of all ages starting from 18 to 50 eat from restaurants outside and are also concerned with healthy eating.

Evidence to determine target market

Determining which market will receive the advertisement messages is very vital for a successful marketing campaign (Shimp, 2010). The target market for Sehtak Restaurant are the people living and working in Musaffah Sanaiya, who are diabetic or health conscious and prefer to eat healthy food. As the Sehtak Restaurant is located in Musaffah Sanaiya and has only one branch. Therefore the target market is all the people living in Musaffah and who are conscious about healthy eating.

The market survey revealed that people of all ages in UAE prefer to eat from outside and there is a market for a restaurant like Sehtak Restaurant to capture greater market share. The market for continental foods is more in the Musaffah Area, revealing the characteristics of the target market.

Use/Evidence of Market Research

The results of graphical analysis of the market research conducted for Sehtak Restaurant are presented below. A closed ended structured questionnaire was provided to 50 respondents on random basis in Musaffah Sanaiya.

  • 1- Do you cook your-self or prefer to eat from any of the restaurants in Musaffah?

Use/Evidence of Market Research The results of graphical analysis of the market research conducted for Sehtak

The chart above shows vital information about the target market based on demographics. The chart shows how many male and females eat from outside also taking into account the ages of the respondents. In the above graph its clear that most of the people who eat from outside are

12

the males in the age group of 42 to 50. This is also the age group when usually UAE nationals get affected by Diabetes. Therefore the demand for healthy food is present in the target market. And people of all ages in the target market eat from outside.

  • 2- How many times you eat from outside in a week?

the males in the age group of 42 to 50. This is also the age group

The graph above reveals that in the target market people who eat more than 7 times a week from outside are the age group of 34 to 41 and they are the male customers. Also in the target market the customers exist who eat from outside more than 7 times a week. Showing the demand for the healthy food of Sehtak Restaurant also exists.

  • 3- Which timings you usually eat from outside?

3- Which timings you usually eat from outside? 4- Which type of cuisine you like to
  • 4- Which type of cuisine you like to eat from outside?

5- Are you concerned with eating only healthy food? 15
  • 5- Are you concerned with eating only healthy food?

The above graphs revealed vital information about the target market showing the type of cuisine most

The above graphs revealed vital information about the target market showing the type of cuisine most liked in Musaffah. This will enable Sehtak Restaurant to come up with food focusing on continental cuisine as it is the most demanded cuisine in the market.

The research also revealed that on average 11percent of the population in UAE are affected by diabetes. Therefore the market for healthy food exists in Musaffah and Sehtak Restaurant.

Competitor Analysis of two major Competitors

There are no major competitors in Musaffah Sanaiya, the closest competitors are in Al Maqtaa, Abu Dhabi which are as follows:

Ginger

The restaurant is situated in Park Rotana offering international cuisine, it also has outdoor seating, the restaurant also serves alcohol and smoking is also permitted (Rotana Hotels and Resorts, n.d.). The restaurant is part of a renowned group Rotana Hotel and Resorts, which runs a strong media and advertisement campaign and also has website with completed details.

Ginger is selling healthy food and also has a reputable market in the area and will be the major competitor of Sehtak Restaurant.

Al Bathna

The restaurant is situated in Armed Forces Officers Club & hotel, Al Muqtaa also offering international cuisine and has outdoor seating. The restaurant offers a buffet which has different cuisines including Omani, Malaysian, Italian, Singaporean and Thai (AFOC, n.d.). The competitive edge of Al Bathna is the experienced staff including experienced chef.

The restaurant is not selling healthy food as Sehtak Restaurant but since it has its name in the restaurant industry and attracts most of the people in the Musaffah who eat outside. Therefore Al Bathna is also a competitor of Sehtak Restaurant.

Three Risks associated with running the business

The following three risks are associated in running the Sehtak Restaurant which are as follows:

Risk 1

The global melt down is still prevailing in the world and inflation is rising across the gulf region (Tom, 2013). Countries like Egypt, Jordan and Saudi Arabia are affected by inflation. Inflation is a main concern for Sehtak Restaurant as it will increase the prices of raw materials used in the production of food eventually increasing the prices of our products. The recession also reduces the buying power of the consumer affecting the sales of the restaurant.

Risk 2

Competitors offering alcohol and outside seating areas, they also have experienced Chef who are renowned in the market for the quality and taste of food they prepare. Consequently Sehtak Restaurant faces fierce competition in the market as a new entry in the market.

Risk 3

Risk of bankruptcy because of low sales is also another factor in running the operations of the restaurant.

To minimize the risks Sehtak Restaurant will also provide outside sitting areas, also the restaurant will provide alternative drinks for people demanding alcoholic drinks, good for health. The restaurant will price its products in a way so people could afford to eat at the restaurant fighting the rising inflation in the country. The risk of bankruptcy is minimized by attracting investments from the owners of the restaurant.

Marketing Plan

Marketing plan is the process of planning the product, pricing, distribution and promotion (McDaniel & Gates, 1998). The following market mix represents the 2 years marketing plan for product, Price, Place and Promotion:

 

Product

Price

 

Healthy Cuisine

Cost plus pricing strategy

International and local flavor

Buy one and get one free

Food good for diabetic, heart patients and others.

promotions

 

All ages people looking for healthy food.

 
     

Promotion

Place

   

Hoardings and teasers for promotion

Online Shopping Malls, Patrol Stations in

Social and Print Media Campaign

Local Abu Dhabi, radio and TV Channels

stores in UAE BTL Vehicles operating in UAE

     

Product Positioning

Sehtak Restaurant will position its products for the customers looking for healthy food as shown in the above picture. The local and international flavours will also be incorporated into our healthy food cuisine. Sehtak Restaurant will offer food good for people suffering from illness or are diabetic as well as ordinary people who are looking for healthy food.

Pricing Strategy

Sehtak Restaurant will use cost plus pricing strategy for product pricing decisions as shown above (Kotler, Bowen, & Makens, 2006). The restaurant will also offer different promotion campaigns like buy one and get one free food dish and other promotional campaigns.

18

Place/Distribution Strategy

For the first two years we will focus only on Musaffah Sanaiya area and then extend our restaurant chain to national level. We will also offer delivery services for Musaffah Sanaiya area only.

Promotion Strategy

As part of the promotion strategy posters and hoardings on and around the area of the restaurant will be displayed on inauguration day of the restaurant. Sehtak Restaurant will also use social media and electronic media for advertisement of the healthy cuisine offered by the Restaurant.

Summary

Summarizing Sehtak Restaurant will spend 10% of its sales revenues on marketing and advertisement campaigns. The restaurant will run a social media campaign as well to draw the youth towards healthy food and healthy eating habits.

Originally we planned to launch a restaurant offering Italian, Arab and Indian cuisine, but the plan was changed when the survey results revealed that the consumers are demanding for healthy food. Following the concerns of the consumers we have decided to offer a healthy cuisine which will be a mix of continental cuisines and other cuisine available by selecting only healthy dishes.

The product will be very successful as more and more people are tuning into healthy eating following the higher rates of diabetes, heart diseases, asthma and allergies.

General Marketing Pan Year 1& 2

The general plan for marketing, HR and business operations are presented below:

Organizational Structure, HR Plan and business operations

The organizational structure of an organization outlines the jobs and responsibilities of the individuals employed in each position and the relationship between them (Madura, 2007). The Organizational Structure of Sehtak Restaurant is presented below:

Summary of Investors and management team

The investments are made by the three partners in the business as follows:

Member 1 (Investor 1): AED 100,000

Member 2 (Investor 2): AED 100,000

Member 3 (Investor 3): AED 200,000

Sehtak restaurant has AED 400,000 share capital. The three members are UAE Nationals of Abu Dhabi.

Organization chart

The organizational chart for the first hear with summarized job descriptions in the end is presented below:

Partners also acting as directors of Sehtak Restaurant

Healthy General Foods RnD Mana er Sales Manager heading 8 waiters Accountant heading an accounts assistant
Healthy
General
Foods RnD
Mana er
Sales Manager
heading 8 waiters
Accountant
heading an
accounts assistant
  • 3 Chef heading

  • 2 Assistants

Partners/Directors:

Job responsibilities include overlooking the business and making sure its going towards fulfilling its goal of providing healthy food.

General Manager

The job responsibility of the General Manager includes taking care of all organization units including Kitchen, Sales and Accounts.

Chef and Assistants

Jo description of Chef and Assistants includes taking care of the Kitchen and preparation of food and making the raw materials available, and keeping stocks for preparation of food.

Sales Manager

Sales Manager takes care of serving the food and sales also home deliveries and hitting the sales target every month.

Accountant

Accountant and his assistant are responsible for maintaining the books for the business and comply with statutory requirements.

RnD (Research and Development)

Research and development is an independent unit of the organization which works in collaboration with other Sehtak Restaurant units. It also engages in active marketing and competitor research to come up with new healthy food products.

Compensation Plan

The compensation plan for the employees of Sehtak Restaurant is presented below:

Sales Manager Sales Manager takes care of serving the food and sales also home deliveries and

Sehtak Restaurant Compensation Plan

 

Numbe

r of

Total

 

Name

Compens

Employ

Compens

Position

s

ation

ees

ation

 

AED/year

AED/year

General

Manager

12,000

1

12,000

Chef

10,000

3

30,000

Chef's

Assistant

7,000

6

42,000

Sales Manager

10,000

1

10,000

Sales Assistant

7,000

8

56,000

RnD Supervisor

12,000

1

12,000

RnD Assistant

7,000

3

21,000

Accountant

10,000

1

10,000

Accounts

Assistant

7,000

1

7,000

Total

Compensatio

n

200,000

Numbe r of Total Name Compens Employ Compens Position s ation ees ation AED/year AED/year General

Financial Projections

The financial plan for two years is presented below for the year 2013 and 2014.

Start-up costs

The start-up costs include the following:

Land & Building: AED 120,000

Machinery and Equipment: AED 60,000

Supplies: AED 30,000

Raw Materials: AED 50,000

Salaries and Wages: AED 200,000

Sources of Funding

The business is solely funded by the three partners as shown above, Sehtak Restaurant has a policy of not taking any loans from banks to safe guard Risk 3. Sehtak Restaurant has a policy of conducting business strictly on cash; consequently the company does not keep accounts receivables or accounts payable.

Break-even

As shown by the accounts the business is profitable as it reaches breakeven in the first year of operation by making a net profit of AED 4,060,000. The details are provided below in the financial statements.

Profit and Loss Statements or Income Statements

The Income Statement for the year ended December 2013 is shown below:

The Company

The Company

The Company

Income Statement

31 December 2013

Income

 

4,800,0

 

Service Revenue

00

 

4,800,0

 

Total Income

00

Cost of Services

 

200,00

 

Salaries Expenses

0

Legal Fees Expense

50,000

 

480,00

 

Advertising Expenses

0

Maintenance & Repair Expense

10,000

 

740,00

 

Total Cost

0

 

4,060,0

 

Operating Profit

00

The Company Income Statement 31 December 2013 Income 4,800,0 Service Revenue 00 4,800,0 Total Income 00
The Company Income Statement 31 December 2013 Income 4,800,0 Service Revenue 00 4,800,0 Total Income 00

Balance Sheets

The balance sheet for Sehtak Restaurant is presented below:

Balance Sheets The balance sheet for Sehtak Restaurant is presented below: Sehtak Restaurant Balance Sheet December

Sehtak Restaurant

Balance Sheet

December 31, 2013

Assets

 

4,320,00

Cash

0

Land

120,000

Supplies

30,000

Raw Materials & Inventory

50,000

Machinery & Equipment

60,000

Accounts Receivables

0

4,580,00

Total Assets

0

Liabilities

Accounts Payable

0

Total Liabilities

0

Owner's Equity

Share Capital

520,000

4,060,00

Retained Earnings

0

4,580,00

Owner's Equity

0

4,580,00

Total Liabilities and Owner's Equity

0

Owner's Equity Share Capital 520,000 4,060,00 Retained Earnings 0 4,580,00 Owner's Equity 0 4,580,00 Total Liabilities
Owner's Equity Share Capital 520,000 4,060,00 Retained Earnings 0 4,580,00 Owner's Equity 0 4,580,00 Total Liabilities

Cash Flow for Year 1 & Year 2

The following Cash Flow Forecast shoes the cash flow for year 1 and year 2.

Sehtak Restaurant Cash Flow Forecast

Cash Flows

2013

2014

 

AED

AED

Opening Cash Balance

400,000

RECEIPTS

Cash Received from Sales

4,800,000

5,280,000

 

TOTAL RECEIPTS

5,200,000

5,280,000

DISBURSEMENTS Land & Building

120,000

Machinery and equipment

60,000

Raw Materials

50,000

50,000

Supplies

30,000

30,000

Utilities

60,000

60,000

Advertising & Promo

480,000

528,000

Maintenance & Repairs

10,000

10,000

Wages & Salaies

200,000

200,000

Professional/Legal Fees

50,000

Total Disbursements

1,060,000

878,000

Surplus Deficit

4,140,000

4,402,000

Part 3 – Executive Summary

Executive Summary

This project begins with an introduction and details the operations of Sehtak Restaurant. The name of the restaurant represents “your health” in Arabic. Therefore the restaurant focuses on providing healthy food which is good for the health of the consumer. The USP of Sehtak Restaurant is also selling healthy food good for all and the products include healthy cuisine good for all. The restaurant will focus on providing healthy food for diabetic, blood pressure etc. patients. The customers of Sehtak Restaurant will also be able to monitor the calories they eat at the restaurant. Also they could check their calories and blood pressure before having food or actually ordering food. This will allow the customers to order food as per the requirement of their body. Therefore every customer at the restaurant will be able to customize the food they eat according to their health.

Sehtak Restaurant was created after a detailed survey of 4 months and results were analysed revealing the need for a restaurant which sells healthy food. As more and more people rely on food from outside in their daily life, research revealed that junk food is the main cause of diseases in children. To meet the market need Sehtak Restaurant was formed to provide healthy and organic food. Enabling the customers to customize the food they eat every time they eat at Sehtak Restaurant.

The mission statement of the restaurant is “To become the market leader in providing healthy and organic food, good for everyone, making the society a better place by improving the health of people living in the society”. Therefore the restaurant industry of Musaffah Sanaiya is targeted in order to become the market leader.

The owners of Sehtak Restaurant are local Emirati’s dedicated to healthy eating and healthy lifestyle. The General Manager of the restaurant is an experienced person with history of working in production of Organic Foods. The Research and Development team at Sehtak Restaurant is continuously researching to collect vital information on competitors and ways of making healthy food. The research team helps to cater the services of the restaurant according to the local needs and wants. With the help of the survey the cuisine to be offered was selected, as originally we planned to offer Italian, Arab and Indian cuisine but later on changed to offering continental cuisine as the graph of question no. 4 i.e. which type of cuisine you like to eat from outside, revealed that most of the customers in Musaffah Sanaiya like to eat continental cuisine. Therefore the Sehtak Restaurant will provide healthy food by focusing on continental cuisine.

Sehtak Restaurant is faced with fierce competition from two restaurants Ginger and Al Bathna, both the restaurants are renowned in the market on the basis of the taste and quality of food they produce but none of them specializes in producing healthy food. They are the competitors of Sehtak Restaurant because they have captured market shares in the restaurant industry of Musaffah Sanaiya.

The Target Market includes the people in Musaffah Sanaiya, Abu Dhabi who are looking for healthy food. As more and more people become diabetic there is a demand for healthy food in Abu Dhabi, Sehtak Restaurant will target all such customers looking for healthy food.

Sehtak Restaurant is a limited liability partnership formed by three partners. The details of the form of business are provided later on. The operational resources include land & building, machinery & equipment, Furniture & fixtures and employees. The SWOT and PESTL analysis are also presented in the main report.

The three risk identified are the global meltdown of the economy, competitors offering high quality food, alcohol and outside seating areas and the risk of bankruptcy were identified after a detailed analysis of the survey. By adopting the strategy of working on cash the restaurant is now able to have zero liabilities which enable Sehtak Restaurant to safeguard bankruptcy risk. To safeguard the effects brought by the global meltdown the Sehtak Restaurant’s zero loan policy will help fight the volatility in the interest rate fluctuations.

The research and development department of Sehtak Restaurant conducts Marketing Research to collect valuable competitor data. The Sehtak Restaurant will use the cost plus pricing strategy for product pricing decisions to take greater market shares in the market. With the help of Cost Plus Pricing Strategy Sehtak restaurant will offer competitive prices. The restaurant also has a promotion strategy of promoting the launch of the restaurant in Abu Dhabi. The restaurant plans to use effective social media campaign to advertise the healthy food offered by Sehtak Restaurant and also introducing the idea of healthy food in the market. The restaurant plans to spend 10 % of its sales revenue on marketing and advertising campaigns.

The competitive edge and unique selling point of the restaurant will be the fact that customers can actually control the calories they eat at the restaurant. Sehtak Restaurant enables every customer to customize their food according to the current requirements of their body.

The three partners of the restaurant are funding AED 400,000 to start the operations of Sehtak Restaurant. The projection of revenues produced by Sehtak Restaurant for 2 years 2013 and 2014 are presented below:

Sehtak Restaurant Cash Flow Forecast

Cash Flows 2013 2014 AED AED Opening Cash Balance 400,000 RECEIPTS Cash Received from Sales 4,800,000
Cash Flows
2013
2014
AED
AED
Opening Cash Balance
400,000
RECEIPTS
Cash Received from Sales
4,800,000
5,280,000

If we compare the costs of opening the restaurant against benefits the figures revealed that with an investment of AED 400,000 a restaurant will start producing sales revenues starting form first year of AED 4,800,000. Therefore it is concluded that Sehtak Restaurant is a very profitable business. The breakeven is reached in the first year of operation. Also because of the unique selling point the restaurant will be able to make more sales than the forecasted 4.8 million AED.

The restaurants maintain a policy of conducting business on cash as part of mitigating bankruptcy risk and taking no loan from banks. The risk of low sales is mitigated by offering a competitive healthy product to the consumers to produce sales throughout the year.

The report also presents environmental analysis, characteristics of target market and the Marketing Plan. In the end a summary and General Marketing plan for year 1 and year 2 of Sehtak Restaurant are presented.

References

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Appendix

Questionnaire “Sehtak Restaurant”

  • 1. Gender

□ Male

□ Female

  • 2. Age

□ 18 to 25 □ 34 to 41

□ 26 to 33 □ 42 to 50

  • 3. Do you cook yourself or prefer to eat from any of the restaurants in Musaffah?

□ Eat from home

□ Eat from outside

□ Both

  • 4. How many times you eat from outside in a week? □ 2 to 3 times per week □ More than 7 times a week

□ 3 to 7 times a week

  • 5. Which timings you usually eat from outside?

□ 7 am to 11 am

□ 11am to 4 pm

□ 4 pm to 12 pm

  • 6. Which type of cuisine you like to eat from outside?

□ Asian

□ Arabian

□ Continental

  • 7. Are you concerned with eating only healthy food? □ Yes

□ No

  • 8. Would you eat from a restaurant which provides only healthy food? □ Yes

□ No