Advanced Diploma of Hospitality Management
COURSE NAME
Develop and implement a business plan
COURSE CODE: THHGLE19B
Linda Mayasari
Student ID: C05556
Business Profile to include,
The Odin Restaurant was established in the year 1997. It is located in the Spencer Street which is a busy business area in the Melbourne CBD. The Odin restaurant is a four star restaurant. Its area is 1200 sq feet and holds a seating capacity of 120 people. We believe that in this rapidly changing environment, a truly customer focused company has to offer the value of product offer, faster response times in terms of customer service, sampling and production lead times. As the restaurant is located in the most prestigious part of Melbourne CBD and business zone, the customer’s expectations would be high. They would want the best service money can buy.
The restaurant would be specialises in Italian Cuisines its aim is to provide traditional homely food of best quality. The Restaurant will also provide some popular Asian and Mediterian cuisine.
Ownership Structure
The Odin Restaurant’s ownership structure is partnership based of two people Mr. James Winner and Mr. Gary Lee.
Among the partners Mr. James Winner worked as a chef in an Italian restaurant for about five (5) years and has much experience in cooking, stock taking, ordering. And the other partner Mr. Z worked as a assistant manager in a very busy restaurant in Lygon Street, for about four (4) years. Where he achieved much knowledge in controlling staff, making roster, customer service, solving customer queries and complains, and different managerial duties.
The reasons why we choose to make the restaurant in partnership are,
- The partners share the profit and loss. In a debt situation both the partners will share the loss equally.
- In some case if a partner is sick or inactive the other can still run the business. Take care of the investment, the profit or loss.
- In partnership they can employ experience people to help with the business.
- It’s easy to set up a partnership as it can be formed either verbally or writing. Though it is wise for partnership to be in writing in case of a conflict situation, the details how the conflict will be resolved will be outlined in the agreement.
- All partners will be legally responsible for each partner’s actions. If they set a same goal achieve, it will be easy for they supervise and counsel themselves.
- In partner the liability is unlimited as they will be responsible for the debts of the business.
- As there are more than one decision maker it some time difficult to make decision quickly.
- In a partnership the expertise is not limited as two or more people can have better view and the scope for its expand and provide a better and wider range of services.
- To be successful each partner should have to act honestly with each other and in the partnership’s best interest. All partners who are part of the business must ensure that they keep other partners in business informed of their activities. Each partner should act in a way that causes no harm to the partnership.
- In a partnership the capital is limited too, but two or mare partner can provide more capital than one single entity.
All Business are regulated by a wide range of government rules and regulations that are created and administered by government department such as police, the licensing Board, ant The Australian Taxation Office. These regulation are also referred as Legal requirements of business
Ø All Business must register under the PAYG system with Australian taxation office ,
Ø Business name legislation applies in each state to regulate the use of business names.
Ø Development approval for using the premises from the local council;
Ø Health clearance permit from the local council about its safety;
Ø External advertising sign permit from the local council;
Ø Outdoor use permit (for tables and chairs)from the local council;
Ø Registration for GST with the Australian taxation office;
Ø Employer registration with the Australian taxation office;
Ø Compulsory workers compensation insurance(for employees) with insurer;
The Legal requirements have to be met before the business can run or provide any services.
Business Objectives
Each and every business starts with investing capital in return of profit. To get the profit and to maintain it, there should be some achievement to fulfil. These achievements can be met by some activities. These activities can be categorized into business aims and business objective. The primary target for the Odin restaurant is increasing the awareness of your product among your target audience. High-quality food offerings that exceed competitor’s offerings in quality, presentation, and price. Increases sales opportunities in take outbusiness. Offering a place to dine in with lots of varieties available.
Also include the time frame for achieving your business objectives.
The Odin Restaurant’s objectives for the first three years of operation include:
· Keeping food costs at less than 35% of revenue.
· Improving our Gross Margin from 65.41% in Year 1 to 67.10 in Year 2. These are attainable targets; our stretch is to attain 70.73% by Year 3.
· Keeping employee labour cost between 37-39% of total sales.
· A unique restaurant with eclectic food and service.
· Averaging sales between $7,500,000 - 8,200,000 per year.
· Promoting and expanding the Odin restaurant concept as unique businessmen, corporate and tourist destination restaurant.
· Expanding our marketing and advertising in the Melbourne CBD and in the neighbouring suburbs to increase our customer base.
· Achieving a profitable investment return for investors for Years 2 - 6.
A business objective is a detailed picture of a step you plan to take in order to achieve a stated aim. These need to be SMART in order for the business to know what progress it has made towards achieving the objective. SMART objectives are developed in the theory section 'Setting aims and Production aims for a company like Pepsi-Cola or Toyota will focus on quality and meeting particular targets and standards.
Marketing aims for a company like Nestlé or Kraft will focus on identifying and meeting the needs of consumers.
Customer service aims for organizations like the Optus or Telstra will focus on delighting customers.
Business objectives and functional objectives make it possible to set targets. These targets then create a direction for activities. The key objectives of the business for the next three years are summarised as follows:
Sales turnover / $3145 / $3250 / $3450
Purchasing
Average gross profit margin / 65% / 70% / 80%
Personnel
Labour productivity ratio / $41.84:$5 / $43.46:$5 / $44.73:$5
Number of personnel / 30 / 40 / 55
Financial
Net profit / $280,000.00 / $310,000 / $350,000
Net cash flow / $95,000.00 / $28,000.00 / $42,000.00
Debt ratio / 69% / 47% / $34%
Mission Statement
· The Odin Restaurant will be an inspiring restaurant, combining an eclectic atmosphere with excellent and interesting food. The mission is to have not only a great food selection, but also efficient and superior service - customer satisfaction is our paramount objective. The Odin will be the restaurant of choice for a mature and adult crowd, couples, young and old, male or female.
· Employee welfare, participation, and training are equally important to our success. Everyone is treated fairly and with the utmost respect. Our employees will feel a part of the success of The Odin Restaurant.
· Our concept combines variety, ambiance, entertainment and a superior staff to create a sense of 'place' in order to reach our goal of overall value in the dining/entertainment experience. We offer fair profits for the owners and investors, and a rewarding place to work for the employees.
Unique, Innovative & Contemporary:
The creation of a unique and innovative fine dining atmosphere will differentiate us from the competition. The restaurant will stand out from the other restaurants in the area because of the unique design and decor. We will offer a fine dining experience in an electric atmosphere.
Product quality: great food, great service and atmosphere.
Spice of Life Menu: The menu will appeal to a wide and varied clientele. Our eclectic menu features regional specialties around the globe, from Italian pasta, to Thai and Indian curries, to local crab-cakes.
Employee Retention Focus:
Employee retention and development programs will be a primary focus and success platform for this business. Through these programs, we will be able to draw seasoned and elite professionals and build a committed work force. We have budgeted for a stock option program for Chef and Management positions to subsidize a lower salary base. This lowers our immediate overhead and attracts quality staff.
Cost Control Focus:
We will control costs at all times, without exception. Cost Control will be an integrated function of the restaurant from the onset. Cost control is about managing the numbers - interpreting and comparing the numbers that impact the bottom line. 80 percent of the success of a restaurant is determined before it opens. Our focus is to reduce the cost of goods sold to meet our profit margin goals by managing the following crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory, Rough Preparation, Service Preparation, Portioning, Order Taking, Cash Receipts, Bank Deposits and Accounts Payable.
Due to intense competition, restaurants must look for ways to differentiate their business to achieve and maintain a competitive advantage. The Odin Restaurant in Melbourne CBD redevelopment requires a place that will fit into the 'new look' of the community, one that is contemporary and entertaining. The Odin Restaurant will fill that niche.
Location :
The Odin restaurant will locate on the corner of Spencer Street and Flinders Street, in Melbourne CBD. The Central Business District (CBD) is Melbourne’s business and financial centre.
The CBD is a complex mixed-use area with many diverse uses and functions operating 24 hours a day and serving a wide variety of residents, workers and visitors. Most passerines are office employees, local residents and the shoppers from the community of CBD. These Officials are likely to be employed full time in the professional or in the managerial positions, comprising 31% of the CBD workforce. Many of them not necessarily married, therefore has a high spending capabilities. They are socially active and are well known to get attracted to a locations, new bars, and new restaurants.
Melbourne CBD has a variety of shopping options with department stores like Myers, David Jones, both in Bourke street mall, which attract the high society people along with the tourists. DFO in the Southern Cross Station Mall, along with the small shops and boutiques lined along Bourke street and Lonsdale street can be a choice of the tourists and local young professionals. Also many boutiques along Collins street home to many leading international fashion labels like FCUK, Nike, Guess, Armani, Lacoste, Chanel, Hermes, Gucci, Rolex etc. attracts customers seeking these international fashion labels.
The Odin Restaurant is connected to two of Melbourne’s most busies and important roads, The Spencer Street and the Flinders Street. The Transport facilities here is excellent, Two Railway station Southern Cross on Spencer Street and Finder’s Station on Flinders Street are very near, both has tram connection from in front of The Grand Hotel. There are lots of parking spaces and taxi stand is also nearby.
Products & Services :
The Odin restaurant we will provide varieties of cuisine especially Italian ones. There will be meals that suit senior’s, children coming with families and patrons that are looking for healthy meals. Our new restaurant will also provide vegetarian and halal foods for different believes of people.
The beverage area will be somewhat similar color woody surrounding, but it’s many parts will be made of glass to give a different effect. And it the bar area will be in the middle of the dinning room. So, from any table it will be visible. The menu of the Odin restaurant is attached,
Atmosphere of Odin:
The main aim of furnishing our Odin restaurant is to give a new looks for our customers and their taste. We will have wooden floor made from pure Mahogany wood, which will be dark brown. The walls will be decorated by glass, particle wood. In the corners we will have live plants. The main aim is to give a lavish look of the place. As it’s will be part of a four (4) Star hotel.
Staff Uniform:
Waiter and waitress uniform is white full shirt with black pant and black necktie. The waiter and waitress will have black shoes.
Lighting:
In the dining place the lighting will be cozy and little dim, as it’s mainly an Italian restaurant. For couples there will be candle lit dinner.
Music:
As Odin will be the dining place of sophisticated and high-class people of the society, it will have classical music and jazz music on for its patrons.
Our aim to design and furnished our dining area such a way to make it as airy, welcoming. And to encourage patrons to enjoy the dining experience and make them believes that they are part of the posh group of the society.