Business Plan of Freshain Fast Food Restaurant

Business Plan of Freshain Fast Food Restaurant

Introduction

This paper aims at finalizing the business plan of Freshain Fast Food Restaurant by including business description and marketing, management, and financial plans in part I. In section two, a memo will be created that will introduce the business plan to a prospective and give the intended audience reasons for taking an interest in the proposed venture.

Part 1 Tasks: Business Plan

Business Description

This company will operate in the competitive fast-food service industry by offering food products such as pitas, chips, fish, fried chicken, hamburgers, pizza, and tacos. Others will include onion rings, sandwiches, hot dogs, chicken nuggets, and ice-creams, among others that will be readily available as will be indicated in the menu. In the effort of reducing overhead costs, this company will develop a unique business model that will involve using a bricks-and-clicks approach hence enabling the company to become increasingly flexible. The business will be strategically located at Washington DC, where it will run its initial operations before it can grow fast enough to open new subsidiaries in other places. In the effort of catering to a broad spectrum of customers in its target market, the company intends to have takeout, dine-in, and delivery systems.

Marketing Plan

Since the company’s intentions are starting its first outlet as a ‘market tester,’ its marketing strategy will be based on serving its customers well and create a broad customer base by using marketing strategies such as local store marketing strategies such as offering local dishes, local brands, and specialty products to attract more clients. Moreover, the company intends to use other marketing strategies such as the company’s website, internet, television, radio, and social media platforms such as Twitter, Facebook, and Snapchat. These marketing approaches are always useful in attracting more customers into purchasing the products offered, thus increasing its sales and enabling it to open new selling points across the country Klassen et al., 2018). Through using this proposed marketing approach, the company projects of making monthly sales as indicated in the attached appendix 1. Variation in sales is expected to be facilitated by the current nature of low, high, and medium peak seasons in the fast foodservice industry. For instance, more sales are projected to be made during October, November, and December due to holiday seasons. The company intends to use a generic pricing strategy to attract more clients.

Management Plan

The company will be run by a manager who will be appointed by the business owner (General Manager). The manager will then be required to put into place an effective hiring and selection process that will enable him or her hire two supervisors, two cashiers, four professional cooks, five waiters, and two security guards. However, more staff will be added depending on how the company will perform its first few months of operations. Each of the staff will have specific roles, but there are those duties that they will share, especially those that do not require professional skills.

Financial Plan

The company estimates using a starting capital of at least $2,800,000 million, which will enable it to hire a store outlet, build other necessary facilities, including installing all the required equipment and making the business fully operational by funding workforce costs, capital expenditures, and marketing expenses among additional costs. Soon after being operational, there are estimations that the company will make revenue amounting to a total of $30,000 in the first two months and at least $1,900,000 at the end of its first financial year. Income statement projections indicate that the company will be profitable by the end of its first fiscal year and then experience significant annual growth in the next five years.

Part 2 Task: Creation of a Memo

Memorandum

Date: Feb. 18, 2020

To: Potential Investors

From: General Manager

Subject: Inviting All Interested Prospects to Come and Invest

As the business owner, I intend to exploit the huge market gap in the fast-food service industry where I have been an active participant in the last fifteen years by opening a fast-food restaurant whose products will customize to meet the local needs of the area of operation. This venture is also expected to capitalize on its human resources to provide high-quality foods and services that will meet the specific needs of the customers. The primary purpose of this business plan in to show you as our crucial prospect that this company will be a worthy business that will guarantee you huge returns on the amount of capital that you will invest in it. As indicated in the above business plan, the company’s long-term sustainability is guaranteed, and there are expectations that the company will outdo most of its competitors in the market who can use the business model and marketing strategies that we intend to use. Some of the plans of this business and which guarantee you of higher returns from your investment in the company include marketing penetration strategy through offering customer loyalty programs to attract as many customers as it can in its initial geographical area of operation. Secondly, in the effort of increasing sales and profits in the next two years, the company intends to use the product expansion strategy by adding new features and expanding its product line, thus broadening its customer base.

Thank You.

Appendix 1: Projected Sales