Ali Hussnain Sajid

Roll.no 18052
Semester: 4th
Subject: Marketing and Agri-business
Submitted to: Arslan Bukhari
Department: Food science and Technology
Topic: Developing a Restaurant
Planning:
One main role of a manager is creating a plan to meet company goals and objectives. This
involves allocating employee resources and delegating responsibilities, as well as setting realistic
timelines and standards for completion. Planning requires those in management roles to
continuously check on team progress in order to make small adjustments when necessary, while
still maintaining a clear picture of a company's larger aims and goals.

Much of one's planning function consists of working independently to determine what

responsibilities must be given to which employees, setting priority levels for certain tasks, and
creating timelines. However, communication also plays an important role. For example,
managers deal with planning when they meet with company leadership to discuss short and long-
term goals, and when they communicate the specifics of a new project to their team or check-in
periodically to ensure individual objectives are being met on time.

Organizing:
Along with planning, a manager's organizational skills can help to ensure a company or
departmental unit runs smoothly. From establishing internal processes and structures to knowing
which employees or teams are best suited for specific tasks, keeping everyone and everything
organized throughout daily operations are important functions of management.

Organization isn't just about delegating tasks efficiently and making sure employees have what
they need to accomplish their tasks, however. Managers also need to be able to reorganize in
response to new challenges. This could come into practice in the form of slightly adjusting the
timeline for a project or re-allocating tasks from one team to another. Or, it could mean
significantly altering a team's internal structure and roles in response to company growth.

Directions:

Managers should be comfortable and confident commanding their team members’ daily tasks as
well as during periods of significant change or challenge. This involves projecting a strong sense
of direction and leadership when setting goals and communicating new processes, products and
services, or internal policy.

Leadership can manifest itself in a number of ways, including recognizing when employees need
an extra boost of reinforcement and praise to handling conflicts between team members fairly
and decisively. Often, managers may function as leaders even during small personal interactions
by modeling supportive, encouraging, and motivational qualities.

Controlling:
To ensure all of the above functions are working toward the success of a company, managers
should consistently monitor employee performance, quality of work, and the efficiency and
reliability of completed projects. Control (and quality control) in management is about making
sure the ultimate goals of the business are being adequately met, as well as making any necessary
changes when they aren't.

Implementation these steps in developing a restaurtant:

Planning:
Which means that there will be a large demand for new restaurants.

If you are passionate about food and people, opening up your own restaurant may be something
that you are well-suited for.

However, despite your passion (which is a very important element for success), you need more
than passion in order to succeed.

The restaurant industry is very competitive. No matter what type of establishment you wish to
open, you are sure to be up against competition. In order to stand up against this competition and
succeed, it is essential that you have a solid business plan. This plan will serve as the blueprints,
so-to-speak, of your restaurant. It will allow you to paint a clear picture of what you wish to
achieve with your restaurant and it acts as a reference point during its creation. It also serves as a
selling point to any investors that you are trying to enlist to fund the opening of your
establishment.

There are certain elements that need to be included in a successful business plan. If you have
never created one before, you are probably wondering how you go about developing a successful
plan. Doing so is actually quite simple, as long as you remember to adhere to some basic
principles.

Develop a Description:
The first step in creating a business plan for your restaurant is to create a description. The very
first thing you should do in this step of the business plan development process is to think of a
name for your restaurant. The name should be catchy, descriptive and it should relate to the type
of establishment you wish to open. Once you’ve come up with a name, you can proceed to create
a more detailed description of your restaurant, including the type of food you want to serve, the
atmosphere you wish to create and the type of customers you hope to attract.

The more detailed your description is, the more you stand to grab the attention of and impress a
potential investor.

Analyze the Market:

Marketing is vital for any business, especially a restaurant.

In order to get an idea of how you will be able to attract your targeted demographic, it is
important that you analyze the market. There are three separate parts of this step:

Industry – Determine what type of audience you are aiming to attract. Are you trying to appeal
to a young business crowd? Is your targeted audience young families? Once you determine who
your customer base is, you are going to want to come up with an explanation as to why they will
be attracted to your restaurant instead of your competitors’ restaurants.

Competition – Figure out exactly who your competition is. Find out as much as you can about
your competition and pinpoint what it is that makes them successful (their menu, the prices, their
hours of operation, their ambiance, etc). Once you figure this out, you should explain how your
restaurant will stand above the competition.

Marketing – This is the final stage of this step. How are you going to market your business?
What methods are you going to use to draw in a crowd? Will you advertise on radio or in
newspaper? Will you offer a free dessert? Perhaps discounts on certain appetizers and drinks?

Here are some articles to get you started with marketing:

Operations of Your Business:

You need to let your investors know about your hours of operation, your employees and any
benefits you plan to offer. You also need to let your investors know how you plan to benefit your
customer base – Does your restaurant have a convenient location, or does it offer something
unique or useful, You might also want to mention how you plan to get your supplies, including
food, beverages and the like.

Restaurant Business Plan (Step by Step)

Restaurant Business Plan Important

Many new restauranteurs fail to put together a well-thought-out restaurant business

plan because the process can be a bit difficult and time-consuming. But without a
proper restaurant business plan, you're shooting in the dark without an aim. It's
unlikely that you would be able to secure an investor to help fund your restaurant
dream without a proper plan. And even if you do, the lack of proper planning,
regulations, and forecasts will set your restaurant up for failure.

Your restaurant business plan is what is going to map out how you plan on turning a
profit from your business as well as where your restaurant fits into the saturated
market and how you plan on standing out.
 A little time and pain early on are worth the reward of a successful restaurant in the
long run.

Depending on who you are presenting your business plan to, you can change the order
of the sections to reflect priority.

Here are the main components of a restaurant

business plan

1. Executive Summary

2. Company Description

3. Market Analysis

4. Menu

5. Employees

6. Restaurant Design

7. Location

8. Market Overview

9. Marketing

10.External help

11.Financial Analysis

1. Executive Summary
 A restaurant business plan should always begin with an executive summary. An
executive summary not only acts as the introduction to your business plan but also a
summary of the entire idea.
The main aim of an executive summary is to draw the reader (oftentimes an investor)
into the rest of your business plan.
Common elements of an executive summary include:

 Mission statement (learn more about how to write a good mission statement here)

 Proposed concept

 Execution

 A brief look at potential costs

 Expected return on investments

An executive summary is imperative for those looking to get investors to fund their
projects. Instead of having to comb through the entire restaurant business plan to get
all the information, they can instead just look through the executive summary.

2. Company Description

This is the part of the restaurant business plan where you fully introduce the company.
Start this section with the name of the restaurant you are opening along with the
location, contacts, and other relevant information. Also include the owner’s details
and a brief description of their experience.

The second part of the company description should highlight the legal standing of the
restaurant and outline the restaurant’s short and long-term goals. Provide a brief
market study showing that you understand the trends in the regional food industry and
why the restaurant will succeed in this market.

3. Market Analysis

The market analysis portion of the restaurant business plan is typically divided into
three parts.

3.1 Industry Analysis

What is your target market? What demographics will your restaurant cater to? This
section aims to explain your target market to investors and why you believe guests
will choose your restaurant over others.

3.2 Competition Analysis

It's easy to assume that everyone will visit your restaurant, so it is important to
research your competition to make this a reality. What restaurants have already
established a customer base in the area? Take note of everything from their prices,
hours, and menu design to the restaurant interior. Then explain to your investors how
your restaurant will be different.

3.3 Marketing Analysis

Your investors are going to want to know how you plan to market your restaurant.
How will your marketing campaigns differ from what is already being done by
others? How do you plan on securing your target market? What kind of offers will
you provide your guests? Make sure to list everything.
5. Employees
The company description section of the restaurant business plan briefly introduces the
owners of the restaurant with some information about each. This section should fully
flesh out the restaurant management team.

The investors don’t expect you to have your entire team selected at this point, but you
should at least have a couple of people on board. Use the talent you have chosen thus
far to highlight the combined work experience everyone is bringing to the table.
Free Restaurant Business Plan TemplateThe only business plan you'll ever
need.Download now

6. Restaurant Design

The design portion of your restaurant business plan is where you can really show off
your thoughts and ideas to the investors. If you don’t have professional mock-ups of
your restaurant rendered, that’s fine. Instead, put together a mood board to get your
vision across. Find pictures of a similar aesthetic to what you are looking for in your
restaurant.

The restaurant design extends beyond aesthetics alone and should include everything
from restaurant software to kitchen equipment.

7. Location
The location you end up choosing for your restaurant should definitely be in line with
your target market. At this point, you might not have a precise location set aside, but
you should have a few to choose from.

When describing potential locations to your investors, you want to include as much
information as possible about each one and why it would be perfect for your
restaurant. Mention everything from square footage to typical demographics.

8. Market Overview

The market overview section is heavily related to the market analysis portion of the
restaurant business plan. In this section, go into detail about both the micro and macro
conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant
difficult, and how you aim to counteract that. Mention all the restaurants that could
prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know
how you will get word of your restaurant to the world. The marketing and publicity
section should go into detail on how you plan to market your restaurant before and
after opening. As well as any plans you may have to bring a PR company on board to
help spread the word.
10. External Help

To make your restaurant a reality, you are going to need a lot of help. List any
external companies or software you plan on hiring to get your restaurant up and
running. This includes everything from accountants and designers to suppliers that
help your restaurant perform better, like POS systems and restaurant reservation
systems. Explain to your investors the importance of each and what they will be doing
for your restaurant.

11. Financial Analysis

The most important part of your restaurant business plan is the financial section. We
would recommend hiring professional help for this given its importance. Hiring a
trained accountant will not only help you get your financial estimates in order but also
give you a realistic insight into owning a restaurant.
You should have some information prepared to make this step easier on the
accountant. He/she will want to know how many seats your restaurant has, what the
check average per table will be, and how many guests you plan on seating per day.
In addition to this, doing rough food cost calculations for various menu items can help
estimate your profit margin per dish. This can be achieved easily with a free food cost
calculator.

Controlling:

Useful Tips to Control Your Restaurant Costs

Here are five mantras to keep a check on restaurant costs and help in cutting food costs in restaurants.

1. Manage your Food Costs

Use these tips for cutting food costs in restaurants.

 Set a Budget: Before you set out to buy raw materials for your inventory, make sure that
you are well-informed of recent rates of the food to avoid being duped or exorbitantly
charged by the vendor. Set a budget and do thorough market research beforehand – make
sure you stick to it, apart from an occasional minor deviation for some exotic ingredients.
 Recipe Costing: Recipe costing helps you keep track of the incurred cost while preparing
a particular item. It is essentially calculating the exact amount of raw materials required
for preparing according to the recipe and the cost of each item. Find out how to do recipe
costing the right way here.
 Engineer your Menu Carefully: Try to utilize all of your raw materials so that none
would get wasted. Design your menu cleverly so that high-profit items are highlighted.
 Manage Portion Size: Another method to curb costs is to manage the portion size of your
servings. While too small portions would lead to customer dissatisfaction and negative
reviews, too big meals would lead to escalating food costs. Use a portion control tool to
maintain consistency in the size of portions, or you can just decide on the number
of spoon servings per item. Planning portions and orders help avoid overproduction of
items, which either leads to increased food costs or wasted food items. In the next step,
we have described how to reduce wastage in restaurants.

Organizing:
7 Tips for Restaurant Organization
Restaurants that want to improve their organizational methods should implement these best practices.

1. Utilize the First In, First Out Rule

Also known as FIFO, the first in and first out rule ensures that perishable ingredients are used before they
expire.

According to FIFO, when new deliveries of supplies are received, they must be placed behind the existing
stock. This makes the older ingredients easier to retrieve and guarantees that they are all used before the new
stock.

This rule enables restaurants to reduce their food waste and helps staff effectively organize stock based on
dates of expiration.

2. Establish a Standardized Labeling System

All ingredients and supplies should be correctly labeled so that employees can quickly find exactly what they
need in the storeroom.

Shelves and storage spaces should also be labeled to ensure that goods are placed in the appropriate areas. This
will not only help with locating products, but it can allow kitchen managers to easily identify whether or not
ingredients are running low.

3. Install Shelves in the Storeroom

Storerooms and kitchen spaces can be maximized with the installation of shelves. Restaurant owners should
look into durable and heavy-duty shelves that can be easily cleaned and can hold large-volumes of food
supplies.

4. Organize Goods Based on Category

To make sure that restaurant staff can locate the ingredients and supplies they need, management should
organize these products based on categories. Goods can be separated by ingredient type, tool usage, or recipe.

For example, a shelf can be dedicated for dry products, like flour and sugar, while another shelf can be used for
liquids, like syrups and alcohol.

This can eliminate instances of cross-contamination, which is the transfer of contaminants or bacteria from one
product to another.

5. Map the Floor Plan of the Storeroom

Restaurant owners should plan and organize their overall back of house layout to optimize the flow and
accessibility of the space.

An eatery, for instance, can place its shelves in a way where staff members can easily access the front and back
of it. This will simplify the FIFO process since employees can effortlessly stock new products to the back of
the shelf.

Additionally, certain ingredients and kitchen equipment that are most frequently used should be placed near
the front of the storeroom. Prioritizing these supplies and putting them closer to kitchen staff will save time
and ensure the necessary products can be accessed quickly.

Once a floor plan is established, management teams should create a detailed map and display it clearly for
kitchen staff. Employees will then be able to guide themselves throughout the space and can consult the map
whenever they need it.

6. Comprehensively Train All Employees

Almost all kitchen staff will have to navigate through the storeroom to find ingredients and items to prepare
customer orders. Therefore, they should all be trained on inventory management practices and storage room
regulations.

For example, staff should be taught how to receive new deliveries of goods. Doing so will ensure that products
are correctly counted and processed, and properly organized from the beginning.

7. Control the Storeroom’s Internal Environment

The internal conditions in a kitchen's storeroom can greatly impact the quality of goods. When organizing the
restaurant space, management should focus on its temperature, lighting, and moisture levels.

 Temperature

When storing dry foods, like pasta, rice, or flour, in a room, the temperature should be kept between 60-70F. If
it is any hotter, the products can quickly become spoiled and inedible.

On the other hand, freezer temperatures should always be at 0F, while refrigerators should be set at 40F or
below.

It is recommended that restaurant managers keep a thermometer in the storeroom to monitor the space's
temperature.

 Lighting

The storeroom should be dark and free of windows to prevent food products from being exposed to light.
Bright lighting can impact internal temperatures and can also oxidize foods, which is a chemical reaction in
ingredients when it is exposed to oxygen.

Oxidation can degrade an ingredient's nutritional value and will cause its natural color to fade or appear grey.
This is apparent when the inside of an apple or banana turns dark brown due to being left outside.
Preferably, the storeroom should have artificial lights that turned on only when kitchen staff enters the space.

 Moisture

When there is moisture in the storeroom, mold and bacteria can easily grow and spread. This is harmful to food
products and kitchen supplies, in which ingredients will become unusable and shelves can rust. Therefore,
practices must be put in place to keep moisture levels at a minimum.

Restaurants can invest in a dehumidifying system to remove any moisture from the air and control the
storeroom's humidity.

Direction:

Managers should be comfortable and confident commanding their team members’ daily tasks as
well as during periods of significant change or challenge. This involves projecting a strong sense
of direction and leadership when setting goals and communicating new processes, products and
services, or internal policy.

Leadership can manifest itself in a number of ways, including recognizing when employees need
an extra boost of reinforcement and praise to handling conflicts between team members fairly
and decisively. Often, managers may function as leaders even during small personal interactions
by modeling supportive, encouraging, and motivational qualities.