This restaurant will have a moderate price with 86 seats that allow for the service of many customers including families. The restaurant will specialize in Indian dishes. The restaurant will offer special servings of all the dishes but in considerable portions for kids. It will lease a piece of land 3400 square feet located in Dubai city near industrial area. This area has been well established and most of the businesses have recorded high success in the area. The location will require high-class furniture, equipment and fixtures to make it more attractive to potential customers.
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The projections of sales indicate that there will be 1700 customers every week visiting the AlJawhar Indian Dishes restaurant. This big number will lead to the attainment of high profits for the restaurant. For instance, the sales will range between $19,777 and $1,028,000 in a year. The business will need about 363,000 US dollars to start its operations. Out of this amount, $174,000 will come from the business owners while the rest will be obtained from a bank loan.
These are the long-term gains that the company will aim at attaining within a specified period.
- To be the Dubai City Industrial Area leading restaurant.
- To offer quality food at pocket-friendly prices with high quality customer service.
- To retain the ratios of prime cost at a lower percentage of 65.
This is the guiding principle on what the restaurant should do to attain its set vision statement. It aims at improving service provision for unique customer experiences. This goal will be attained through the provision of items that will incorporate affordable prices of quality ingredients. In addition, the service providers will ensure customer satisfaction while the management will focus on employee satisfaction. If the employees are treated with high-level respect and dignity, they will reciprocate through giving the same care to the customers, leading to customer loyalty.
Some of the principles that will guide the operations of AlJawhar Indian Dishes are;
- Minding about customers-the restaurant will focus on improving interpersonal relations with both the staff and the customers.
- Gratitude-AlJawhar Indian Dishes will focus on showing gratitude to vendors, employees and customers. This is because they are the most important composition for the success of the organization since they help it through providing their time, service input, and labor without which the restaurant cannot operate.
- Service provision- AlJawhar Indian Dishes focus on providing friendly and warm services that the customers have ever wished for so that it can retain them for long.
Key to Success
Location: Convenience is highly valued by customers. As a result, the business will be strategically located near the industrial area so that it can easily be accessed by many customers.
Repeat business: This focuses on making first-time customers come back again and again (Denton 2010).
Hire highly qualified chefs and train them to provide the best services and foods in the city. These people can also be encouraged if they are given the highest level of wages according to the ability of the restaurant.
AlJawhar Indian Dishes restaurant will offer a variety of dishes in its menu. These foods will thus be offered at reasonable prices for the establishment of credibility that will be limited not to scare away some customers.
The AlJawhar Indian Dishes will be located in Dubai City near industrial area. It will be fully operated by a well-qualified team of managers with the leadership of Nasreen Fadil. It will serve various Indian dishes according to the needs and preferences of customers. It will be operated seven days a week as indicated below;
|Sunday||12:00 pm-5:00 pm|
The restaurant will be owned and operated by Nasreen Fadil. He began his career when he was young and has a vast knowledge in hospitality and management and catering. He also has the experience of working in this industry as he was employed in a restaurant. He will thus be the CEO with his qualified staff members working under him. Due to the high employee turnover that is experienced in most start-up companies, he will supplement that by using some of his friends and family members.
AlJawhar Indian Dishes will be a sole proprietorship since it will be fully owned and operated through the skills of Nasreen Fadil. It will be registered under the regulations of Dubai City.
A review of Start-Up operations
The business will need starting capital of $363,000. To ensure cost savings, Nasreen Fadil can enter into renovation contracts with the employees.
Some of the initial cost will be raised by the business owners while the rest will be borrowed from a bank. Nasreen Fadil will raise the funds from marketable securities and liquid assets.
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Location and Facilities
The restaurant will start operating in the 34,000 square feet that is located in Dubai city near industrial area. The area is rich in traffic that will attract various customers to contribute towards the growth and profitability of the restaurant.
Dubai has a total population 2.46 million people according to the census report given by the US in 2010 (Vardhan & Hameed 2012).
AlJawhar Indian Dishes plans to operate seven days a week offering both dinner and lunch to its customers. Based on the objectives of the restaurant, the schedules of the operations will be prepared in line with the needs and demands of the customers. However, consideration will be made to lower the hourly labor where needed.
Techniques for rotation, as well as labeling will be adopted in the daily management of the restaurant to provide products that are customer-tailored (Yang 2014).
The food and beverage industry in UAE is growing at a faster rate, with recent statistics showing that there is an increase in number of people who eat in restaurants, which has significantly increased the number of restaurants in UAE. There are numerous restaurants in Dubai City, such as 1762 The Gourmet Deli Co, Al Bahou, Anatolia Tirkish Grill, Baker & More Coffee Lounge, and Divaz among others. Such a high number of restaurants in this region have increased the level of competition, making it hard for any in-coming restaurant to survive in the market.
There are so many suppliers of food and beverages in Dubai City. For this reason, the AlJawhar Indian Dishes will make use of such opportunity to develop long lasting relationships with reliable suppliers for the purpose of ensuring that the restaurant’s supply is replenished without delay whenever needed. Due to the high number of suppliers, the bargaining power of suppliers is low in this region and hence it will be an advantage to the restaurant.
Management control is very important for any business. In the case of AlJawhar Indian Dishes, Nasreen Fadil along with the restaurant’s assistant will make use of sound management strategies to ensure that the costs are controlled, quality of the products is ensured, as well as ensures the provision of quality and friendly customer service. To achieve such objectives, AlJawhar Indian Dishes Restaurant will rely on order guide, weekly inventory, and daily inventory tracking systems to track the use of all items, to evaluate the profitability of the restaurant, as well as to ensure that daily records of all items are recorded alongside sales and purchase records.
System of administration
The fact that AlJawhar Indian Dishes is a sole proprietorship business that has limited number of employees will force the Fadil to be present at the premises all the time in order ensure that the operations of the restaurant proceed as expected. In addition, the presence of Fadil in the business will be an advantage especially in tracking the cash flows of the business. In order to help in effective management of sales as well as the administration of daily activities, AlJawhar Indian Dishes will buy a Point of Sale system (POS).
Any receipt from sales as recorded by the point of sales system will be used to compare the amount of cash available, as well as any deposits made using credit card each day. If there will be any form of discrepancies, the management will be prompted to audit the account of the business in order to establish the source of the difference between actual sales and cash available. Profit and Loss statements will be prepared each month and the total amount of money received in each month compared with the entries in the statements for purpose of maintaining accuracy in the business.
Secondly, AlJawhar Indian Dishes will make use of weekly prime cost report. Fadil will take the responsibility of preparing all weekly reports to show the weekly progress of the business’s sales. This will be carried out as a means to examine the costs incurred in the business, and the sales received every week. It is projected that the prime cost of AlJawhar Indian Dishes will range between 60% and 65%.
Thirdly, the restaurant will employ a bookkeeper to ensure that there are effective records every day for all the restaurants’ transactions. Such report will include all forms of expenditure in terms of cash and check deposits, as well as any other cash payable transactions.
In the future, AlJawhar Indian Dishes projects to start catering services to meet the rising demand of such services in Dubai. This is attributed to the fact that wedding and other related events are common in Dubai City and hence the restaurant is likely to make a lot of sales from the catering services. After operating for 2 years, AlJawhar Indian Dishes will employ two sales agents for the sole role of marketing the products of the restaurant on daily basis.
The food and beverage industry in Dubai is large. With the increase in the number of people eating from restaurants, the revenue from the industry is likely to grow rapidly. It is expected that the sales will be $ 600 billion by 2017, which is an estimated increase of about 2.4% based on 2015 estimates (Rab 2011). In Dubai, revenue from food and beverage accounts for more than 40% of the total retail sales in Dubai. According to current trends, it is expected that the revenue from the food and beverage industry will rise significantly in the next 10 years due to the growth and development in the region.
The retail sector in Dubai has been experiencing a rapid growth in the recent years. It has been named as one of the fastest growing industries in the country, contributing significantly to the gross domestic product of the country. In terms of attractiveness, Dubai is number four in the global market. The population of Dubai is large (2.3 million), which makes its suitable for any business given that the purchasing power of citizens in Dubai is very high.
The high growth and development in Dubai has increased the level of competition in all sectors of the economy. As such, businesses have to be positioned well for a chance to remain competitive in all sectors. For the case of the food and beverage industry, citizens in Dubai have the habit of eating in restaurants, a factor that has led to increased demand for more restaurants in Dubai. For this reason, many hotels and restaurants are available in Dubai. According to the market trends, it is expected that the number of restaurants and hotels will continue to increase in the future given that there is a high demand for such facilities in Dubai.
Some of the significant competitors in Dubai City include The1762 The Gourmet Deli Co, Al Bahou, Anatolia Tirkish Grill, Baker & More Coffee Lounge and Divaz.
The restaurant targets a wide range of consumers in Dubai. Due to its strategic position, AlJawhar Indian Dishes will focus on providing lunch and dinner to people from the industrial in Dubai City, as well as residential areas around. The target market segment involves individuals of all classes, including a section of high end middle customers. The restaurant will position itself as affordable restaurant with high standard of quality services. The catered services to be provided will be based on the tastes and preference of the locals.
To achieve the target market, the restaurant will engage in thorough marketing and promotions. The table below shows the marketing and promotion strategy that the restaurant will use to reach the targeted market.
|Brochures||Employees in the industrial area||1000||Restaurant assistant||USD 500|
|Stickers in vehicles||Passengers and other Motorists||1000||Restaurant assistant||USD 300|
|Sign board||Public in the vicinity||1||Restaurant assistant||USD 8000|
|Newspaper||Public||3||Across Dubai||USD 12000|
|Daily Arabic language newspapers||public||3||Across Dubai||USD12000|
|Periodic magazines||public||3||Across Dubai||USD 8000|
|Local radio stations||public||2||Across UAE||3000|
|15 second length video ad on 2 Arabic and 2 English local TV stations||public||2||Across the UAE||6000|
|Restaurant’s website (in both English and Arabic)||public||1||The world wide web||15000|
Target Market Segment Strategy
Nasreen Fadil chose the location of the Dubai City due to its strategic position and business attractiveness. It is located next to the busy industrial area and hence will be in a position to tap most of the citizens’ needs for lunch and dinner.
Market Strategy and Implementation
AlJawhar Indian Dishes will strategically position itself at a place that is easily accessible by various customers from different destinations. It will provide home-style dishes that will help in the attraction of families to enjoy the quality meals. It will also ensure a relaxed atmosphere as well as good customer relations that make them feel more of a home than a restaurant (Jassawalla & Sashittal 2010). The menu will be drafted in such a way that it attracts customers from its appearance and the pricing. As a result, employees will be encouraged to work full-time so that they can grow together with the restaurant.
At AlJawhar Indian Dishes, there will be provision of job opportunities for fresh graduates and other experienced workers. The owner will thus use employee retention strategies such as allowing flexible working hours and conducting constant performance evaluations so that unskilled employees can be trained. This strategy motivates staff when they develop a sense of belonging to the organization. It is will also be significant for the employees to be trained on improving their service to customers.
Most of the Hotels and Restaurants around do not provide Indian Dishes. As a result, AlJawhar Indian Dishes will take care of Indian food needs around the area. It will motivate its staff so that they can be good ambassadors and provide positive information about it so that the public image can improve. To further improve service provision which is the main goal of the restaurant, it will hire highly qualified team members.
Organization and Management
AlJawhar Indian Dishes restaurant will hire 10 members of staff. Nasreen Fadil will personally conduct the interviews that will lead to the selection of each and every member of staff. On the other hand, he can use the services of a consultant so that the restaurant can have the most qualified people in the area. There will be evaluation and ratings of individual applicants before they are approved to join the working team. As background checks are important, they will be used to assist in the recruitment and selection process.
The sole owner of the restaurant will be Nasreen Fadil. He will thus work with his assistant to ensure a smooth operation of the restaurant. He began his career when he was young and has a vast knowledge in hospitality and management and catering. He also has the experience of working in this industry as he was employed in a restaurant. He will thus be the CEO with his qualified staff members working under him.
Gaps in the Management
Nasreen Fadil will hire more qualified people even if on part-time basis so that the operations can be the best. Such people may include kitchen managers, a general manager and sales director. To ensure that there are no challenges the financial sector of the restaurant, the point of sale system will be useful. According to Vernet and Opsahl (2014), this system can improve on the savings of the restaurant since it can perform other tasks like bookkeeping and preparing profit and loss statements.
|Forecast of yearly sales||First Year||Second Year||Third Year|
|Owner of the business||–||–||–|
|Asst. Manager/Cashier||$ 25,000||$ 26,000||$ 27,000|
|Line Cooks||$ 38,000||$ 39,000||$ 40,000|
|Servers/Cashiers||$ 46,000||$ 48,000||$ 49,000|
|Dishwashers||$ 24,000||$ 24,700||$ 25,000|
|Sales Agent||$ 0||$ 20,000||$ 20,600|
|Catering Employees||$ 0||$ 18,000||$ 23,000|
|Total||$ 133,000||$ 175,700||$ 184,600|
|Graphic Logo and Name Creation||$ 1,000|
|Permits + Lease Deposits||$ 1,200|
|Outdoor Sign||$ 3,000|
|Building Improvements||$ 50,000|
|Working Capital||$ 172,500|
|Pre-Opening Expenses||$ 14,800|
|Total Start-Up Expenses||$ 252,500|
|Walk in Cooler||$8,000|
|Commercial Dishwasher with Sink in Table||$7,000|
|Reach in Stainless Steel Freezers (2)||$6,000|
|Stainless Steel Cold Station||$3,000|
|20 quart food processor/blender||$900|
|Ice maker Storage Bin||$4,000|
|Stainless Steel Hood with Exhaust||$11,000|
|3 Door Reach in Beverage Cooler W/Glass door||$3,500|
|Sandwich Prep Reach Ins (2)||$5,600|
|Kitchen Small wares||$1,500|
|Six Burner Restaurant Range (2)||$3,600|
|Chrome Shelving Systems (6)||$500|
|Reach In Coolers (4)||$7,200|
|Stainless Steel Work Tables (3)||$1,200|
|Hutch for Stainless Steel Table (2)||$800|
|Liquid Fire Protection System||$4,000|
|Stainless Steel 3 bowl sink||$1,500|
|20 wood round/oval tables||$20,000|
|86 bleached wood café chairs||$5,000|
|20 track lighting||$1,000|
|Table cloths, napkins||$1,200|
|Cash register + POS System||$4,000|
|Total Start-Up Assets||$110,000|
|Total Required Start-Up Costs||$363,000|
Source and Use of Funds
The total cost of starting the restaurant is estimated at $363,000. A big percentage of this cost will be used to purchase furniture, inventory and other equipment. The cost will also be used to update plumbing system that will create more space for use. Nasreen Fadil will contribute the initial $174,000 while the balance of $189,000 he will take a bank loan.
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Vernet, A & Opsahl, T 2014, Tripping yourself up? Team Formation and Effective Teams, Academy of Management Proceedings, vol. 2014, no. 1, pp.15371-15371.
Yang, I 2014, What makes an effective team? The role of trust (dis)confirmation in team development, European Management Journal, vol. 32, no. 6, pp.858-869.