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Hanover Restaurant Business Plan

○ Executive summary - vision, mission and values......................................................2

○    Introduction................................................................................................................2
○    Description of the business (background).................................................................3
○    Business products and services................................................................................3
○    Marketing activity – the market..................................................................................3
○    Business operations:.................................................................................................4
–    productivity and performance targets for key result areas (in consultation with key
stakeholders)
–    include financial and non-financial performance measures
–    detail resource requirements, including human resources, capital equipment and
other resources required to achieve business goals
○    Management and organisational structure................................................................5
○    Proposal....................................................................................................................6
○    Financial background................................................................................................7
–    trading to date
–    forecasts
○    Risks (risk analysis)...................................................................................................9
–    include a section on how you will ensure skilled labour is available to implement the
plan, such as a recruitment or training strategy
o   Licensing....................................................................................................................9
–    include any permits or licences required
○    Conclusion...............................................................................................................10
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○ Executive summary include vision, mission and values

This restaurant business plan is for Hanover, a new medium-sized restaurant located in
a trendy Melbourne neighborhood. Hanover's emphasis will be on organic and creative
ethnic foods. An emphasis on organic ingredients is based on Hanover's dedication to
sustainable development. In addition, the restaurant purchases local food whenever
possible, reducing its dependence on fossil fuels used in transportation.
Mission
Hanover is a great place to eat, combining an intriguing atmosphere with excellent and
interesting food, which is also very good for people who eat there. We want fair profit
for owners and a rewarding place to work for employees.
Visson
To be a company recognized as a reference within Australian natural gastronomy.
Seeking quality in service and maintaining a good relationship with customers,
employees and suppliers.
Always valuing a good coexistence between restaurant and customers, in a cozy space
in a cool environment.

Values

 Healthy food to contribute to a change in lifestyle.

 Nutrition to promote health and good quality of life
 Flavors to provide the pleasure of eating well.
 Variety to offer quality options for all tastes.
 Service with excellence to present gastronomic solutions.
 Fast and practical service, to adapt to the lifestyle of those who do not come,
you have time to lose.
 Differentiated service, always looking for the best option for the well-being of
our customers.
 Handled food, with all hygiene guarantee.
 Social responsibilities, ethical relationships, commitment respecting the region's
environmental and cultural resources.
 Quality, to add all our values and result in the satisfaction of our customers.

○ Introduction
The popularity of organic foods and the restaurants that serve them has skyrocketed in
recent years. A once niche market is now a burgeoning billion-dollar industry. Though
demand is growing, running an organic restaurant is not easy. Organic foods are
intrinsically more expensive than processed foods, driving up a restaurateur's costs.
Organic foods are also often in short supply. Still it is possible to succeed in the
marketplace if several rules are taken under consideration.
What we want to achieve at Hanover:

 Sales of $350K the first year, more than half a million the second.
 Personnel costs less than $300K the first year, less than $400K the second
year.
 Profitable in year two, better than 7.5% profits on sales by year three.
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○ Description of the business (background)

Hanover is a medium-sized, single-unit restaurant. We focus on organic and creative
foods. The restaurant will be located in an upscale Melbourne neighborhood. The most
important thing for us is our financial success, but we believe that this will be achieved
by offering high quality services and extremely clean and non-greasy food, with
interesting twists.
Company ownership
The restaurant will start as a simple exclusive property, owned by its founders.
Startup Summary
The founders of the company are Anna and her partner Chris. Anna focuses on
financial matters and Chris on personnel matters.
○ Business products and services
The menu
The menu will be extremely simple, but will change every day. We will keep a small
group of constants on the menu and present a chef's recommendation that we plan to
make 85% of the ordered meals. This will help us to reduce waste and plan ingredients
and purchases.
Organic ingredients
The organic ingredient element will allow us to assess the prices of extremely wealthy
Internet entrepreneurs who want to spend an exorbitant amount of money to have the
peace of mind that their money is still coming back to you. We will also be extremely
ecologically aware and spread this throughout our literature.
Ethnic Recipes and Ingredients
Our chef will have great freedom to design and produce menu offerings from different
cultures around the world. We will do our best to get all the traditional and authentic
ingredients needed to stay true to these varied and interesting cultural recipes.
○ Marketing activity – the market
Due to the connections of the founders in the very trendy area of Melbourne, we have a
great feeling for the area and its core group of customers. Everyone will share
something similar, which is the feeling of being in the "crowd" and having "achieved" in
life. Although the team is different and does not connect to each segment, each
segment is complementary to the others. We plan to increase menu fees as the
restaurant gets more and more crowded and to ensure that we are charging a premium
for the feeling of being in the "crowd".
Market segmentation
The lonely rich
Today, most of the wealthy lonely people work with technology and most of them work
with the Internet. Their lives became the website server and the code they write, and
the people who help them make decisions in that world. They go out together, but
desperately want to get away and use the money they are accumulating. Since this
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wealth came easily to them, it is particularly easy to separate them from the money
again - they spend more on drinks, snacks and tips.
Happy young couples
The restaurant will have an atmosphere that encourages people to bring dates and the
arrival of couples. It won't be strange for others, and Hannover wants to be a social
place where people meet and develop a network. These young couples are often very
successful, but well-balanced and don't spend as much on drinks.
The rich hippies
Melbourne's wealthy hippies are a huge group, with tremendous influence over the
city's government and private enterprise. They wear ties, but they drive BMWs and
crave the feeling of being in a social circle that is changing the world - even if in
different ways than in the glory days. We will support their ecological ideology and
contribute to charities to help them participate with more of their money.
Women on a diet
The organic food menu will always have a line of extremely delicious and low-fat
meals. Hanover will have tables of women who come together to discuss all kinds of
issues, while feeling good about the food they eat.

○ Business operations:
– productivity and performance targets for key result areas (in consultation with
key stakeholders)
– include financial and non-financial performance measures
– detail resource requirements, including human resources, capital equipment
and other resources required to achieve business goals
Our strategy is simple, we intend to succeed by giving people a combination of
great,healthy, interesting food, and an environment that attracts "trendy" people like a
magnet. Implementation isn't simple, but that's in the doing of it, not in the plan.
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Competitive Edge
Our competitive edge is the menu, the chef, the environment, and the tie-in to what's
trendy.
Sales Strategy
As the table shows, we intend to deliver sales of about $350K in the first year, and to
double that by the third year of the plan.

○ Management and organisational structure

Chris has great experience in managing people and we are very confident in his ability
to find the best team possible. Our chef, Hugo, is already on board and has a published
cookbook that will add prestige to the restaurant right away. We will try to find a young
and ultra modern team to ensure that we add the advantage that makes Hanover so
modern.
Staff Plan
As the personnel plan shows, we hope to invest in a good team, well compensated. We
think that the planned team is in good proportion to the size of the restaurant and the
projected recipes.
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○ Proposal
Services
Hanover offers Melbourne people a modern and fun place to enjoy good food in a
social setting. Chef Hugo has a large repertoire of ingredients and ethnic recipes. The
restaurant predicts that most purchases will be made based on the chef's
recommendations. Ethnic recipes will be used to provide customers with a diverse and
unusual menu. The chef will also emphasize healthy dishes, recognizing the restaurant
industry's trend towards demand for healthy cuisine.
Customers
Hanover believes that the market can be segmented into four distinct groups that it
aims to target. The first group is the wealthy loner. The second group to be targeted
are young satisfied customers, who grow at an annual rate of 8%. The third group are
wealthy hippies, who naturally crave organic food and ethnic cuisine. The last group
that is particularly interested in the healthy offerings on the menu is dieting women.
Management
Hanover has assembled a strong management team. Chris will be the general
manager. Chris has extensive experience in managing organizations ranging from six
to 45 people. Anna will be responsible for all financial and accounting functions. Anna's
financial control skills will be invaluable in keeping Hanover on track and profitable.

The most important for the establishment is the financial success that will be achieved
through strict financial controls. In addition, success will be guaranteed, offering high
quality service and extremely clean and non-greasy food, with interesting twists.
Hanover plans to increase menu fees as the restaurant gets more and more crowded
and to ensure that they are charging a premium for the feeling of being in the "crowd".
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○ Financial background
– trading to date
– forecasts

Financial Plan
We expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteed by
the SBA as a 10-year loan. This provides the bulk of the start-up financing required.
Break-even Analysis
Our break-even analysis is based on the average of the first-year numbers for total
sales by meal served, total cost of sales, and all operating expenses. These are
presented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is not
really the same as fixed cost, but these conservative assumptions make for a better
estimate of real risk.
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Projected Profit and Loss

As the profit and loss table shows, we expect to become barely profitable in the second
year of business, and to make an acceptable profit in the third year.

Projected Cash Flow

The cash flow projection shows that starting cost and provisions for ongoing expenses
are adequate to meet our needs until the business itself generates its own cash flow
sufficient to support operations.
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○ Risks (risk analysis) – include a section on how you will ensure skilled labour
is available to implement the plan, such as a recruitment or training strategy
Risks

 Organic products are more expensive due to their production process, which
makes meals in the restaurant also more expensive, since we must pass the
price on to customers so that we can make a profit.
 The culture of organic food is still not so rooted in the Australian community,
which makes some people still afraid to go to restaurants with organic foods
and always prefer to go to their already known restaurants.
Staff
Our employees must understand how their actions affect others in order to help create
a culture of unity, respect and appreciation. We must remember that new hires come
with their own experience and level of knowledge; so we have to outline our specific
goals and expectations and take the time to answer questions in order to improve our
service even more. In addition, we want not only our customers, but our employees to
also feel happy in their workplace, that way they will provide a better service which will
make us meet our goals.

Some of the aspects that our employees should be familiar with are:

 Mission of the establishment

 Customer Experience
 Dress code
 How to behave in difficult situations
 Establishment Procedures and Policies

And this will be done through training when hiring employees.

o Licensing – include any permits or licences required

Business License
This license is what gives you the authorization to operate within a particular
geographic jurisdiction. Getting a business license usually involves filling out some
paperwork (i.e. registering your business name) and paying an application fee.

Employer Identification Number (EIN)

An EIN number is what tells the federal government that you are an employer. It is
essentially a tax identification number, and you obtain it by visiting the IRS website,
filling out a form and paying a fee. You can also apply by mail or by phone. Your EIN is
the number under which you file your business taxes each year.

Certificate of Occupancy
A new restaurant must have a certificate of occupancy to show that the building it
is safe for employees and customers. The town or city that your restaurant resides
issues the certificate and usually requires a building inspection by local authorities.
Most restaurants must have a certificate of occupancy before opening their doors to the
public.
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Food Service License

No restaurant can operate without a food service license. This license usually involves
and on site visit by city or county health department officials and ensures that your
restaurant meets all food preparation, food storage and food safety regulations and
laws. In some cases, employees must complete a food safety training program and
have a food handler’s permit.

Liquor License
Liquor laws vary from state to state and sometimes from city to city. Local authorities
do not want just anyone selling liquor, so most liquor laws are fairly strict and regulate
everything from when and where to serve liquor to how much it costs. Depending on
your restaurant’s location, you might need both a beer and wine license and a liquor
license.

○ Conclusion
Hanover has great chances of becoming a very well attended place due to its proposal,
its location, the training of the team and the quality it seeks to offer its customers as
well as diversity and health.