BBQ Restaurant in Montgomery, AL: Business Plan Presentation

Decision-Making Activities

• Determining funding and legal structure of the business:
  • Limited liability corporation (LLC);
  • Use credit lines to expand operations and open another location;
• Operational decisions
  • Maintain use of fresh ingredients or switch to much cheaper suppliers;
  • Use of delivery services for distribution;
• Strategic and marketing objectives
  • Demographic to target via marketing;
  • Joint venture with a brewery next to the restaurant;
  • Attempt to expand and franchise;
• Employment decisions and personnel recruitment;
• Evaluation criteria and quality control.

These are some of the most critical decisions that a small-business owner will have to face. Funding and legal structure are essential to determine how the business operates and who is legally liable. Small businesses usually choose to identify as an LLC since they have a flexible and straightforward structure without any liability to personal assets of the owner in case of bankruptcy. Many of the other decisions have long-term impacts on the restaurant performance as a business since they impact customer satisfaction and service, which reflect on revenue (Marquez-Oldham, 2017).

Key Participants and Decision-Makers

• Restaurant Owner – strategic management, critical decisions;
• General Manager – day to day operations, staff hiring and management, inventory, marketing;
• Financial Manager – payroll, revenue, accounting duties;
• Community Stakeholders – investors interested in the success of the restaurant. Offer input on any major decisions;
• City of Montgomery – regulatory controls of the restaurant (particularly sanitation and business license). Offers tax incentives for local businesses.

Even in a small business such as a restaurant, there are a number of key decision-makers. Each maintains their own input and responsibilities. The restaurant owner will have the final say on any major decision; the managers are faced with implementing any strategic decisions while maintaining stable operations of every facet of the business. Meanwhile, stakeholders or the government may also impact the business through respective roles, which should be respected despite their indirect involvement in operations.

Key Performance Indicator (KPI)

• Desired Outcome: Increase visitation traffic by 30%. Modest revenue gains of 15%.
• Purpose: Establish the restaurant as a regional dining attraction which can serve tourists and local families on a continuous basis.
• Measuring Progress: Visitation traffic will be accounted for by people dining at the restaurant. Revenue measured in dollars spent on products.
• Plans to Achieve: Aggressive marketing approach. Participate in local food festivals and community events to spread awareness. Offer various in-restaurant promotions.
• Outcome Achieved: Foot traffic is 30% more and revenue gains are at least 15% over a similar point the previous year.
• Progress Reviewed: The statistics will be reviewed each month and compared to the restaurant performance the previous year and month over month increase.

A KPI is essentially a measure of the business performance against certain established objectives (Klipfolio, n.d.). The above KPI is an approximately formulated objective for an emerging small restaurant attempting to grow its visitation rates, and consequently revenue. By offering promotions and focusing on specific demographics, the restaurant can achieve its goal.

Key Resources

• Physical Resources:
  • Restaurant building located downtown nearby the business district.
  • Premium kitchen equipment and a high-quality BBQ smoker.
  • Stable supply of fresh ingredients and premium meat from local producers.
• Intellectual Resources:
  • Well-known brand often labeled as the best BBQ in Alabama.
  • Close relationship with local corporate offices choosing the restaurant for their events.
  • Specially developed recipe for the BBQ ribs.
• Human Resources:
  • Tightly-knit staff which is dependable and supportive of each other.
  • Locally known specialty chef.
  • Competent general manager with a strong background in restaurant marketing.
• Financial Resources:
  • Moderate cash savings to back business operations.
  • Part of the business is offered to community stakeholders.
  • Available lines of credit from local credit unions.

A business uses physical resources for the creation of value proposition. These usually include equipment, facilities, inventory, and distribution networks. Meanwhile, intellectual resources consist of non-physical resources, usually revolving around information or intangible resources such as a brand that is recognized, therefore bringing monetary value (Anastasia, 2015).

Key resources are divided into these four categories and are both necessary for the operation and what makes this restaurant unique (Anastasia, 2015). It outlines various perspectives which can be used to make strategic business decisions and expand the operations.

Events and Products

• Events:
  • Annual food festivals and county fairs.
  • 25% discount on a whole meal every 7 visits.
  • Monday Night Football.
  • Kids eat free Tuesdays.
• Products:
  • Traditional Southern breakfast offerings.
  • Popular pulled pork BBQ lunch sandwich.
  • Famous BBQ ribs which have been featured on national television.
  • Merchandise.

These events and products are all the aspects of operation and marketing in which the restaurant would participate. The restaurant attempts to feature its products at food festivals and county fairs in order to gain awareness of its brand and attempt to reach out to as many people as possible since such events allow to do so in a traditional “country” setting without large marketing costs. The 25% discount for a meal every seven visits promotion is an attempt to encourage repeat visitation from patrons. This may be particularly relevant to those favoring the restaurant for lunch breaks in the nearby corporate center. Monday Night Football and Kids eat free Tuesdays are also promotional events to attract customers during the “slow” days of the week, appealing to local families. The breakfast offering product is the attempt for the restaurant to stay unique and appeal to its cultural roots. Since many restaurants usually do not open until lunchtime, it presents an opportunity for this facility to stand out. The BBQ sandwich is a quick to-go meal, once again appealing to the lunch crowd and can be advertised as a cheap meal. The BBQ ribs are a feature of the restaurant, using its specially developed recipe and premium equipment. It is supposed to stand out as the cornerstone meal which attracts tourists and food lovers, giving the restaurant advertisement and publicity. Finally, building on its reputation for its food and local popularity, the restaurant offers small merchandise that can be bought as a souvenir. However, it indirectly helps advertise the restaurant and provides a small stream of revenue.

Budget Request Justification Requirements

• Personnel Costs:
  • Salaries.
  • Health Benefits offered by the business.
  • Injury protection insurance costs.
• Equipment Costs:
  • Equipment upkeep and repair.
  • Purchase of small kitchen equipment.
• Operational Costs:
  • Rent.
  • Facility operation bills.
  • Phone and internet.
• Supply Costs:
  • Purchase of ingredients and delivery.
  • Kitchen and cooking supplies.
  • Office supplies.
• Marketing Costs:
  • Media advertising expenses.
  • Independent consultant and advertisement creator fees.
  • Expenses accumulated for various promotions and free food.
• Other Costs:
  • Travel expenses for owner and general manager for business trips.
  • Computer services.

References

Anastasia. (2015). Key resources building block in business model canvas. Web.

Klipfolio. (n.d.). What is a KPI? Web.

Marquez-Oldham, T. (2017). 6 decisions every new restaurant owner has to make, and how to make. Web.