Business Plan

May 2, 2022

For
HAPPY BELLY

C Tower, UDIC Complex, Hoang Dao Thuy Street, Trung Hoa Ward,
Cau Giay District, Hanoi
(033) 456 7890
happybelly@gmail.com
www.happybelly.com
 TABLE OF CONTENT

EXECUTIVE SUMMARY........................................................................................................................... 1

INDUSTRY ANALYSIS............................................................................................................................... 2

COMPANY DESCRIPTION.......................................................................................................................5

MARKETING PLAN................................................................................................................................... 8

OPERATIONS PLAN............................................................................................................................... 13

FINANCIAL PLAN................................................................................................................................... 15

APPENDIX................................................................................................................................................. 17
 EXECUTIVE SUMMARY

Happy Belly is a small online restaurant providing breakfast service with a brand-
new model that first appeared in Hanoi, Vietnam. Understanding that the morning’s
positive spirit and emotions are the most important, our breakfast service not only
gives nutritious and delicious breakfasts but also brings surprise and happiness to
the customers.

Since people nowadays do not have enough time to prepare their own meals, door-
to-door food delivery is an emerging trend. Besides, the Home Delivery Restaurant
industry is predicted to increasingly develop in the future likewise. Therefore, this is
a potential and worth investing industry. 

Happy Belly will offer handmade breakfasts cooked in-house with eye-catching
decorations in order to bring happiness to customers. Our most unique service is the
surprisingly selected dishes each morning according to that day's weather and
temperature. Thus, our customers will be served the most suitable foods and
services. 

Regarding marketing, in this technology era, we decide to majorly utilize social

media platforms along with other marketing strategies such as word-of-mouth
marketing, user-generated content and customer loyalty programs as an effective
tool in turning first-time visitors into consistent regulars.

Our current structure of restaurant only has four managers undertaking four main
positions with outsourced shippers and web developers. However, in the future, our
company structure will develop as it grows. 

The Covid-19 epidemic has caused an increasing number of business bankruptcies

as there are not enough resources to get through this period. Observing these
difficulties, our restaurant is always cautious in all decisions. With an initial capital

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of 100 million VND, we have made a detailed and meticulous plan to use this in the
most effective way.

Being a fledgling business in this industry, acquiring market share is critical. Happy
Belly with the tagline "Don't get mad, get Happy Belly" hopes that we can create
precious value by providing the customers with a joyful and happy breakfast to start
an energetic day.

INDUSTRY ANALYSIS

1. The size of the industry

The Home Delivery Restaurant industry is segmented by the Foodservice industry

based on the type (including Full-service Restaurants, Self-service Restaurants,
Cafes and Bars, etc). From 2021 to 2026, the Vietnam Foodservice industry is
predicted to develop at a CAGR of 4.1 per cent, bringing the total industry size to
$853 million (Industryarc.com, 2021). The increase in the adoption of home delivery
restaurants is one of the factors that are expected to boost the growth of the
Vietnam Foodservice industry for the period 2021 to 2026. 

2. Growth rate:

The compounded annual growth rate (CAGR) of the Home Delivery Restaurants
industry is estimated to reach 4.4% over the period 2021 to 2026 (Statista, 2021).
This growth is owing to factors such as the increasing demand for convenience foods
and the rise in investment by the key players in-home delivery restaurants in the
country.

3. Promising areas

Healthier food: The Covid-19 pandemic has been a wake-up call for Vietnamese
customers to adopt a healthier lifestyle as well as consume healthy and nutritious
products, even in the post-Covid-19 era.
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Prepared breakfast delivery: As people’s lives become more hectic, people do not
have enough time for preparing breakfast on their own. They, therefore, need the
most important meal of the day delivered right to their door to be able to sleep or do
personal stuff a little long.

4. Points of vulnerability

Soggy meals: Hot foods that are not properly packaged might cause condensation to
form in their containers, leaving your customer's meals soggy.

Home delivery foods are not hot: During the delivery process, prepared meals can
not be kept as hot as being served in the restaurants, which reduces food quality and
the customers’ satisfaction.

Shipping and delivery inaccuracy: Failed deliveries occur when the shipping
address is incorrect or the driver fails to arrive within the specified time frame.
Every unsuccessful delivery necessitates the shipper to return at a later time,
resulting in higher fuel expenses and longer working hours.

Ghost buyers: If an order is delivered to a ghost buyer, the company will have to
incur additional operational costs regarding manufacturing and shipping costs.

5. The industry structure

The home delivery restaurant industry is fragmented with a large number of small
and medium-sized companies and not dominated by any firms. It has low entry
barriers, so it will be receptive to new entrants.

6. A feel for the nature of the participants in the industry

Younger individuals are faster at responding when a business is disrupted by an

unexpected incident (ScienceDaily, 2022). In the Vietnam Home Delivery Restaurant
industry, the participants are young, innovative and sensitive to environmental
changes (the Covid-19 outbreak). 

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 7. Key success factors

High food quality and safety: The Vietnamese people are interested in and willing
to pay for healthy and high-quality products so ensuring the high food quality and
safety will increase consumer trust and loyalty, which makes the business
successful.

Shipping and delivery accuracy: On-time delivery had a positive effect on

customer satisfaction and loyalty.

Effective capitalization: Opening a virtual restaurant decreases the cost of renting

a large space, purchasing furniture and hiring on-site workers. 

Private recipe: The unique cooking method leaves an unforgettable impression on

customers and differentiates the business from the competitors. A competitive
advantage can be created since the secret formula is challenging to imitate in the
future. 

8. Industry trends

Environmental trends: 

Online ordering: COVID-19 waves have brought about major changes in customers’
behaviour and shaped a new trend “Online ordering”. Vietnam consumers are
increasingly shifting towards home delivery restaurants owing to social distancing
and cost-effectiveness. Even if the pandemic comes to an end, online ordering will
continue to thrive further as it has become a habit of consumers.

Health consciousness: Due to the impact of the epidemic, people in Vietnam are
becoming more concerned about health, hygiene, and food safety. 76% of
Vietnamese consumers want to know everything that goes into their food, while
89% are willing to pay more for foods that claim health benefits (Figlobal.com,

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2020). As a result, Vietnamese attempt to eat healthier and want nutritious meals on
a regular basis.

The Rise in the Demand for the Fast-Food Sector: For the busy essence of work and
the rise in the disposable income of young individuals, Vietnamese customers
incline towards convenience foods.

Business trends: Input material costs increase. According to a survey at some

traditional markets, prices of many essential goods such as food are increasing
slightly (thoibaotaichinhvietnam.vn, 2022).

Currently, the consumption habits, as well as the eating habits of many Vietnamese
people, are oriented towards the door-to-door delivery solution, focusing on
convenience and quick response to the needs. Therefore, we identify that the Home
Delivery Restaurant industry is a potential and worth investing area, and its long
term prospects remain positive with increasing industry size. 

COMPANY DESCRIPTION

1. General description

The hustle and bustle of life leaves us no time to prepare a decent breakfast for
ourselves and our families. Getting up with a hungry stomach but do not have
enough time for cooking, having breakfast outside will be the choice. Yet in the
restaurants, there are plenty of familiar dishes with industrial taste, so people's
quality of life decreases accordingly. Understanding that pain, we desire to bring
customers a completely new home delivery breakfast service. These breakfasts,
made with fresh ingredients, especially no flavorings and MSG, will be one of the
most nutritious and healthy meals. In addition, the menu is daily varied to surprise
customers every morning. With our catchy tagline "Don't get mad, get Happy Belly",

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Happy Belly not only serves breakfast, but we also "serve" a feeling of joy and energy
every morning when the customer receives the food.

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Production

Every early morning, raw materials, which are newly bought at wholesale markets in
Hanoi, will be directly transported to the kitchen. Subsequently, these ingredients
will be cleaned and cooked according to carefully researched recipes. In detail, the
dishes will intertwine both local Vietnamese and foreign cuisine, so the recipes have
been researched and modified to be suitable for Vietnamese preferences. After
finishing, our delivery staff take the breakfasts and ship them to customers as soon
as possible to maintain the freshness and heat.

In terms of packaging, well-packaged products are our priority. They are made from
bagasse material, which is both hygienic and environmentally friendly.

Service 

Pieces of notes regarding food allergies and special requirements of the customers
are attached to their orders for us to pay attention to. The selected dish of that day is
cooked, and some adjustments may be added to suit each guest. The surprising
breakfast will be immediately delivered by our well-trained shippers, which can
bring joy and satisfaction to the customers.

Mechanism of action to choose dishes

At 9 PM every day, we summarize orders through social media platforms and our
website to precisely estimate the number of ingredients to purchase. Afterwards,
weather forecast checking is indispensable. The following day's dishes, fruits, juices
and smoothies are selected according to the weather and temperature that day to
ensure that customers have a good experience regardless of the weather changes.
Basically, there is a list of dishes, curated and sorted by season and the festival, for us
to choose one that suits the weather, climate, and temperature that morning.

We offer 3 packages: Classic package (39.000 VND), Signature package (69.000

VND) and Special package (89.000 VND) for the customers to choose from according

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to their preferences. All the dishes are guaranteed in terms of both quality
(nutrition, hygiene) and quantity (energy, the number of calories).

R&D

To stay ahead of the competitors, Research and Development activities should be

conducted. One of the most obvious projects in R&D is developing new dishes with
unique recipes for our menu. Our business spends time refining different recipe
formulations and experimenting with existent equipment. The R&D department also
devises ways to cut costs without reducing product quality. Another project is
modifying food packaging to guarantee that the quality of the dishes is not
compromised throughout the delivery process. Ultimately, regarding environmental
issues, coming up with innovative ways to deal with scrap, spoilage and waste are
necessary likewise. 

2. Explanation of the product or service and its positioning

Its uniquenesses

 Including both traditional and foreign dishes but adjustments are made to create
healthier recipes and fit Vietnamese people’s specific tastes.
 Bringing value and joy to customers by offering dishes with surprising
decorations every morning.

There are three tempting breakfast packages to choose which consist of Classic,
Signature and Special (See the sample menu in Appendix 1).

Positioning

Happy Belly positions products as healthy and high quality. These products provide
the target market with both energy and nourishment. They are also associated with
delivering delight to the consumers by offering surprising dishes every morning.

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 MARKETING PLAN

1. Market analysis

Geography

Happy Belly will serve in the Hanoi city center, specifically Thanh Xuan, Cau Giay
District - a densely populated area. Local residents, who live within a fifteen-minute
drive to the restaurant, will be targeted in order to ensure the food quality during
the delivery process.

Demographic variables

We target people of all genders and segment the market based on age (22 to 40
years old) as well as income (middle to high).

Psychographic variables

The restaurant’s psychographic segmentation includes individuals who are too lazy
to prepare their own breakfasts. Besides, workaholics are our target customers
likewise as they work very hard and find it difficult to spend time doing other things
- cooking breakfast in this circumstance. Thus, these people are likely to lead a night
owl and busy lifestyle. Yet, they are simultaneously health-conscious customers who
always want to have nutritious breakfasts. 

Moreover, we focus on people who have a habit of surfing social networks. They are
fond of ready-to-serve foods and ordering food online with websites or applications
instead of wasting time in a restaurant.

2. Consumer behavior

Our target customers are willing to pay a higher price for high-quality and healthful
food. They are good at money management and know where the budget's limits are.
When they find out their favorite stuff, though, price and quality become secondary

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considerations. They are not a brand-loyal group. Switching brands, in all likelihood,
happens only to satisfy their curiosity and excitement.

3. Competitor analysis

Threat of new entrants

New entrants to the home delivery restaurant industry pose a high threat to us.
First, the entry barriers are low since the rent payment, salaries and other facilities
costs of opening an online restaurant are not as much as opening a traditional one,
which means there are low capital requirements. The other reason for low entry
barriers is that online restaurants in Vietnam do not need to apply for a license.

Second, when new companies enter the industry, existing competitors do not react
strongly and obviously to those firms. Companies in this industry mainly focus on
themselves, specifically investing in the taste, the new dishes, and the food
transportation methods to keep the original taste when delivered to consumers.

Threat of substitute products

The low switching cost and various entities in the home delivery restaurant industry
make it easier for the customers to shift their loyalty from one restaurant to another
when there are more attractive promotions. 

However, in this industry, price is often linked to quality. As a result, if a firm has an
affordable price to entice customers but the cuisine is of poor quality, for example,
the ingredients are not fresh, people will try it once and then return to their favorite
eateries. 

Overall, the threat of substitute products in this industry is moderate.

Rivalry among existing competitors

The rivalry among existing competitors is strong. With our restaurant’s geographical
location in the bordering area between Thanh Xuan and Cau Giay districts, which is
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the place with the highest population density in Hanoi, there are hundreds of food
and drink shops in this area. Additionally, the home delivery industry has numerous
fast-food franchises and small scale establishments. Thus, the competition in this
industry is fierce.

Bargaining power of buyers

Customers in the home delivery restaurant industry are picky and hard to satisfy
because they want value for their spending. As a result, virtual restaurants must
impress them with excellent services, high-quality products and fast delivery speed.
Based on this analysis, buyers have the ability to influence the changes in prices, the
food quality, the restaurant’s service, etc. Therefore, their bargaining power is high.

Bargaining power of suppliers

To ensure raw ingredients' quality always meets quality standards (fresh)

businesses choose wholesale markets as their main suppliers. Currently, as there are
many wholesale markets in Hanoi with the same quality of goods and market shares,
the power of the supplier is quite low. Besides, the size of a restaurant is also a
significant element. Because of the limited orders that small scale restaurants may
generate, suppliers have more negotiation power, whereas suppliers have a weaker
negotiating position with large scale restaurants. However, at present, many large
restaurants and eateries tend to acquire and control suppliers of input materials
that can ensure the quality of the supply, so the power of fresh food suppliers is
increasingly limited.

4. Marketing strategy

Price

Being a value-driven business and targeting customers who care for the quality of
foods, we choose the value-based strategy, which means our pricing is based on how
much the customer believes a product is worth. 
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With this pricing strategy, we focus on the wonderful experience with delectable,
nutritious breakfasts made of meticulously selected fresh ingredients and the
additional services (well-trained delivery staff and surprising dishes). Happy Belly
confidently offers unique and highly valuable products and features that are better
positioned in the market.

Next, we use a bundle pricing strategy by pairing different products into combos
with a slightly lower price than when purchased individually. We will encourage
clients to buy additional things by presenting numerous combo offers and giving
them the ability to customize the combo according to their preferences.

Place

Happy Belly will be located in Thanh Xuan, Cau Giay District (Hanoi), which is a
densely inhabited neighborhood. Ensuring that the food quality is maintained
during the delivery procedure, residents within a fifteen-minute drive of the
restaurant will be targeted.

As a home delivery restaurant, we use mostly online channels to reach the target
customers: 

Our website (created and maintained by an outsourcing web developer): provide

visual menus for customers to easily choose and order appropriate packages. The
website’s link will be attached to our social media platforms.

Social media platforms: attract customers with product pictures and this is our
main channel to interact with customers.

Besides, Happy Belly also serves through an offline channel by taking advantage of
relationships with our relatives, who are company owners and have a great impact
on others.

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Promotion

Social media strategy

Since this is a home delivery restaurant, running advertisements on social media

platforms plays a pivotal role in turning first-time visitors into consistent regulars.
In detail, we will share our food images, cooking procedure videos as well as menus
visually online to provide useful information and open communication with
customers, thus adding professionalism and reliability to our restaurant. Our
messages and posts’ design will target precisely the audience segment.

Word-of-mouth marketing (WOMM)

Understanding that whenever a person decides to purchase any kind of food, most of
the time they solicit the advice of friends and family for recommendations (whether
positive or negative), Happy Belly will always serve the best possible quality dishes
to gain customer trust and loyalty.

User-generated content (UGC)

User-generated content is simultaneously used to promote our sales and reputation.

It is possibly one of the most valuable types of advertising that leverages word-of-
mouth recommendations. When the customers share beautiful pictures of our
delectable breakfasts on their social media channels, our restaurant gains instant
advertising. Exclusive features of the customers will be added to our product in
order to stimulate them to post it and tag us on social media. Afterwards, the posts
will be reshared as reliable feedback. This is also an effective way to keep the lines of
communication open between the restaurant and the guests.

Customer loyalty program

We devise a tiered loyalty program in which customers receive different rewards

according to their rank. This program will not only give them a goal to upgrade their

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level to get more perks but also boost their loyalty (See the detailed customer
program in Appendix 2).

OPERATIONS PLAN

1. Geographic location of business

As a home delivery restaurant, we will utilize one of the founders’ homes as the
geographic location of our business. It is in the bordering area between the Thanh
Xuan and Cau Giay districts of Hanoi.

Because this is an apartment complex, the neighbourhood around our restaurant,

which is only a 15-minute drive away, is densely populated by people who belong to
the market segment we target. As a result, we can more readily offer high-quality
meals to our target customers.

2. Firm’s facilities and equipments

To ensure the quality of the dishes as well as to optimize the working capacity for
about 50 to 70 orders in the kitchen every morning, the kitchen is designed to be an
airy and commodious space. Moreover, regarding the essential equipment, we take
into consideration its quality, price, the ease in using and cleaning before making the
final purchase decision. Its periodic maintenance is also always concerned to ensure
operational efficiency, labor safety and food hygiene. 

3. Structure of company

Chart 2.1: Current company structure

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Currently, Happy Belly is a relatively small restaurant. Therefore, under the
executive manager, there are just three main positions: Sales and Marketing,
Production and Logistics, and Finance manager. The web developers are managed by
the Sales and Marketing manager and the logistics manager is responsible for our
delivery staff.

Executive Manager: define the organization's goals and manage the operating
activities of the entire restaurant.

Sales and Marketing Manager: do market research, develop and implement

marketing campaigns or promotions, and develop new sales strategies in order to
attract new customers. After selling, this manager takes care of consumers and
promptly receives and responds to their feedback.

Web Developer: be outsourced to design and develop our website.

Production and Logistics Manager: control ingredients input, conduct each step of
the cooking process and the dish quality during the delivery.

Shipper: be outsourced to deliver food directly to our customers.

Finance Manager: create financial forecasts, make a budget plan, and a financial
risk management strategy.

Chart 2.2: Future company structure

Since our restaurant will grow in the future, it will be restructured by adding more
departments. Overall, there will be seven major departments, including
Administration, Human Resources, Sales and Marketing, Production, Logistics,
Finance and IT departments. The three extra departments will be Administration,

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HR and IT. Specifically, the administration department is in charge of managing and
storing paper and digital information on customers and enterprises. They also make
transactions, keep track of the number of orders, and schedule time rotation of our
menu to serve consumers every week. The Human Resources department is
responsible for attracting and recruiting talent to our organization and training
them. Ultimately, the IT department develops and creates our website with
appropriate themes to attract target customers. 

FINANCIAL PLAN

Business level assumptions

1. It will take our business 3 months to reach the break-even point.
2. The sales cycle is 28 days/months.
3. Our business will burn through 60 million VND before we turn a profit in the
third month.
Revenue (or Sales) assumptions
1. We will sell 370 classic packages, 640 signature packages and 37 special
packages by the third month.
2. Each month the restaurant's sales will grow by approximately 23%.
3. The restaurant will attract 20 more customers each month.

Assets assumptions
1. Commercial kitchen equipment and facilities such as industrial gas stoves,
commercial ovens, etc need to be purchased to start our online restaurant.
2. The total expense to buy new kitchen equipment is 30 million VND.
3. The estimated life for assets is 5 years.
Funding (or Financing) assumptions: The 100 million VND in startup money
needed to start and grow our online restaurant will come from personal funds and
equity investors. 
Operating Expense assumptions
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 1. My business will have monthly expenses of 23 million VND for the first three
months.
2. Expenses will increase each year by 5% based on sales growth.
Personnel Expense assumptions
1. My business will have 4 employees for the first three months.
2. Employees will be paid 2 million per month for the first three months, and
each year their wages will increase based on total revenue. I will be paid 15%
of the revenue each month.
Direct Costs (Cost of sales) assumptions
1. Every 3 million VND spent on marketing will produce 7 new customers for
the first three months.
2. The cost of the materials I use to create each unit of my product costs 25% of
the selling price.
3. The costs to acquire a new customer will be 400,000 VND for the first three
months.
Accounts Receivable assumptions: Customers will be billed on a one-time basis.
Taxes assumptions
1. Taxes will be 8% of my revenue.
2. Taxes will be paid every month.

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 APPENDIX

Appendix 1: Sample menu

HAPPY BELLY
Classic package 39.000 VND
Single item (foods, juices, and smoothies)
Food of the day Beef noodle soup
Juice of the day Orange juice
Smoothie of the day Mango orange smoothie

Signature package 69.000 VND

Food and drink bundle

Food + Fruit Beef noodle soup + Orange
Food + Juice Beef noodle soup + Orange juice
Food + Smoothie Beef noodle soup + Mango orange smoothie

Special package 89.000 VND

Classic/Signature package + gift for birthdays and special occasions
Bonus gift Chocolate cake

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Appendix 2: Customer loyalty program

Level 1 Level 2 Level 3

Rewards Silver
Gold Diamond
1.5 million
4 million VND 10 million VND
VND

2 samples of 3 samples of
Free private-recipe
1 sample different sauce different sauce
sauce samples (20g)
types types

Birthday gift (value is

✔ ✔ ✔
equivalent to level)

Free drinks 1 drink 3 drinks

10% discount for 3 30% discount for 5

Shipping benefit
first km first km

Take-out cutlery ✔

Food container ✔

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Appendix 3: Assumption sheet
Assumption
SALE
Classic Package
Signature Package
Special Package
OPERATING EXPENSES (MONTHLY)
Facilities and equipment
depreciation expenses
Packaging expenses
Tax
Creat and develop website
Marketing
Utility costs
Input/Ingredients
Staff
Research & Development
Cost incurred
I hereby, group 4, declare that I have neither copied and pasted any particular
business plan whatsoever from a website nor committed plagiarism of any kind in
completing the Business Plan assignment.
Anticipated impact during this planning period
100 packages in the first month
120 packages in the second month
150 packages in the third month
170 packages in the first month
210 packages in the second month
260 packages in the third month
10 packages in the first month
12 packages in the second month
15 packages in the third month
500.00 VND
3% of revenue
8% of revenue
1.000.000 VND
15% of revenue
2.000.000 VND
25% of revenue
10% of revenue
5.000.000 VND
10% of total expenses
Hanoi, May 2, 2022
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