Kings Throne Restaurant and Lounge
Address: TBD
Business Plan
Company Management:
Owner: Marques Lanard Bronner
Company: C and M Entertainment, LLC, dba Kings Throne Restaurant and Lounge
Industry:
Restaurant
Number of Employees:
10
Amount of Financing Requested:
$100,000
The owner can invest $15,000 into the business.
Use of Funds:
The funds will be used for the following:
· $10,000 for supplies
· $20,000 for equipment
· $20,000 for the building
· $50,000 startup working capital
Mission:
Our mission is to provide high quality food at competitive prices. We will bring the best food, authenticity, experience and service to all of our guests. We are committed to using only fresh and quality ingredients ensuring our customers are getting only the very best.
Executive Summary:
The Single Location Full-Service Restaurants industry has bounced back over the past five years after a slowdown due to the recession. Since 2010 the improving economy and rising consumer spending have led to consistent growth in restaurant spending. The fine dining segment has done particularly well over the past five years due to the quick recovery in the income levels of affluent consumers. On the other hand, those restaurants at the lower end of the market have struggled with low growth as consumers have traded down to innovative products served by a growing number of new fast casual chains. Over the five years to 2014, IBISWorld estimates industry revenue will grow at an average annual rate of 2.6% to $141.4 billion. Revenue is expected to continue its upward trajectory in 2014, growing an estimated 1.7%.
The industry competes in the broader food service sector and consists of owner-operated restaurants that are independent of chain or franchised networks. The majority of operators are small, family-run businesses, causing the industry to be highly fragmented and competitive. Single locations restaurants face heavy competition from other food service providers, with chain restaurants, fast food restaurants, hotels and other coffee and snack stores all in direct competition. For this reason, profit margins are generally low across the industry and operators rely on high product turnover to turn a profit. The average industry profit margin has increased over the past five years, along with demand.
The industry's steady rebound is expected to continue over the next five years as the economy improves and consumer spending grows. Consumer spending is expected to increase 3.0% per year on average over the five years to 2019, benefiting the industry. Despite the optimistic operating conditions, operators will need to monitor and adjust to shifting consumer preferences. Rising health consciousness and ethical consumerism will present industry operators with ongoing opportunities to reach niche markets with premium products, in order to increase profitability and revenue. The industry will also likely benefit from population and immigration growth, as well as a greater number of people living in urban areas where restaurants are highly concentrated. In the five years to 2019, industry revenue is forecast to grow at an average annual rate of 2.5% to $160.3 billion.
Business Description:
The business will provide a variety of menu items such as Southern style food and Italian foods. Customers will also be able to come in and enjoy a live band a certain times of the week. We will also have an area set up where customers can enjoy watching sports.
Industry experts have identified the following keys to success which we will incorporate into our business model:
1. Access to multi-skilled and flexible workforce: Access to suitably skilled and trained staff on hourly rates is required to meet peak customer demand periods.
2. Ability to quickly adopt new technology: Owners need to adopt new employee training and kitchen and customer-related technology to increase productivity and lower labor costs.
3. Attractive product presentation: Restaurant atmosphere and ambiance are important to attract and retain guests.
4. Proximity to key markets: It is important to be in a good, easily accessible location that is close to target markets.
5. Ability to control stock on hand: Controlling orders, stock and food waste, which are major cost areas, can reduce unnecessary expenses.
6. Ensuring pricing policy is appropriate: To maintain costs and profit margins on meals, owners must ensure that menu pricing/portion control process is undertaken thoroughly.
Company Background:
The owner, Marques Bronner, has experience in cooking and has acquired management skills in the U.S Navy where he had over 40 people who reported to him. Mr. Bronner is determined and has always been ambitious. His father also has been in business for 25 years so he has first-hand guidance and experience in maintaining a business.
Products/Services:
We will service Southern style food and Italian foods. Customers in our market are looking for a restaurant that offers a variety of menu options and affordable pricing. They are also looking for someone who can provide something different like live entertainment and a different taste to this area.
Technology:
The systems used will be point-of-sale, inventory and recipe management. Both systems are PC based and have become industry standards.
Markets:
We are targeting the older age crowd as far as the live band is concerned. As far as the dining experience it will be for all ages and great for everyone to enjoy with family. The major markets for the Single Location Full-Service Restaurants industry can be segmented based on a number of factors including income, age, geographic location and family structure. Given the discretionary nature of the industry, an indication of major markets can be inferred on the basis of annual expenditure on food and beverages consumed outside the home. According to the US Census Bureau, the average consumer spends about 5.3% of their annual expenditure on food and beverages consumed outside the home.
An estimated 39.0% of industry demand comes from consumers in the nation's highest income quintile. In 2011 (the latest available data), the average consumer in the highest income bracket spent $5,163 on food and beverages consumed outside the home, according to the US Census Bureau. On the other hand, those in the lowest income quintiles often need to make significant sacrifices in order to afford meals away from home. The average consumer in the lowest income quintile spent $1,099 on out-of-home food consumption in 2011. The three middle-income quintiles represent more than 50.0% of industry demand, showing how important the middle-class consumer is to the industry's performance. While these consumers do not typically spend big on luxury food items, they contribute to steady demand for middle-of-the-range chain restaurants.
The industry's major markets distribution has not changed dramatically over time as spending patterns within income brackets are relatively established. There was some tightening of budgets during the recession, but this occurred across all demographics, so it did not influence the industry's major markets distribution.
Marketing:
The most powerful and effective means of generating new business is word-of-mouth. People turn to trusted friends or colleagues for recommendations regarding restaurants. Because word-of-mouth referrals are free, you can’t beat the return on investment that a positive referral can generate. To stimulate word of mouth, we will actively ask customers for referrals and recommendations. The driving force behind consumers’ desire to share positive stories about organizations is the trust they have in the products, services and people associated with those entities. We will strive to build that trust with every interaction we have with a customer.
We will also use an internet based strategy. This is very important as many people seeking local services now use the Internet to conduct their preliminary searches. We will register with online portals so that potential customers can easily reach the business. The Company will also have its own online website showcasing the Company’s services, preliminary pricing information, and relevant contact information.
Additional marketing tactics we will use are the following:
· Coupons--They are an excellent way to get new customers and to reward old ones.
· Contest--We will host a contest online or offline to draw in new customers.
· Giveaways--Giving away free stuff is a great way to grab attention and to draw in new customers.
· In-store events--People love free stuff and people love to be social. We will use any excuse possible to have an in store event. We will draw people in with free stuff and spend some time getting to know them while they are there.
· Online events--Week long online events have been proven to increase in store activity and to introduce new customers to our store.
· Write and Review--We will write articles about our business, publish them online or in local papers for free advertising.
· Sponsor--It gets our name out in the public space and enhances our brand recognition.
Competition:
Our competitors would be a place called Comfort Zone, but on the side of town we are considering there is currently no one offering the type of services that we will have an there is no one around that does live entertainment. Although price-based competition is prevalent within this industry, restaurants also compete on the basis of location, food quality, style and presentation, food range and variety, ambiance and hospitality and service. Restaurants are involved in marketing the meal experience, so it is important that the owner-operator understands a restaurant's positioning in the marketplace, the clientele they are attracting or want to attract and the meal experience. Most importantly, a restaurant must consistently deliver on the customers' expectations.
Research by the National Restaurant Association indicates that choice of portion size and the availability of to-go boxes are important factors. A high proportion of the younger generation order larger portion sizes and request a to-go box, to use the excess for another meal. Varying portion size also meets the value-for-money criteria sought by many customers. Currently, there is high demand for the ability to customize orders, choose the type of sauce on the side, and have the food prepared with cooking oil, margarine, butter or no salt.
Competition to this industry arises from other food service providers, including limited-service restaurants and chains and franchised full-service restaurants. The latter has a far greater market awareness and presence, but offering a standardized menu. Competition from limited-service restaurants is also subject to the population's awareness of the benefits in maintaining a healthy diet with low fat, sugar and salt content. Other competitors include households that prepare their own meals at home or purchase pre-packaged meals at supermarkets to consume at home.
Financial Projections:
Expenses per month:
Conclusion:
C and M Entertainment seeks a relationship with a lender who can help us carefully grow our business in a manner which will continue to provide needed services to our market. We appreciate your consideration of our request and are confident we can enjoy a fine working relationship for many years to come.