Introduction
Blossom Restaurant is an innovative and sustainable contemporary restaurant type that incorporates healthy ingredients in its dishes. This enables it to offer its clients a relaxing and brilliant atmosphere. Several key core points will back the business idea for its success. This will include ensuring long-term relationships are built with its suppliers.
More so, robust advertisement campaigns will ensure the brand and its products are widely known. It will also endeavor to employ and train workers who meet international standards. In later stages, the restaurant aims to have an expansion strategy targeting building branch restaurants nationwide.
The intention is to open the first Blossom restaurant in Abu Dhabi. This is because Abu Dhabi is the UAE’s capital city, and it experiences a high influx of people and thus has the potential to offer a huge client base (Government of Abu Dhabi, 2023). As an initial step, the company also aims to embark on robust promotions, make quality dishes, keenly listen to clients’ feedback, and adjust accordingly.
Feasibility Study
Buying Intention Survey
The aim is to determine the viability of opening a restaurant that offers healthy dishes in Abu Dhabi. Data will be collected through observation, surveys of potential clients, and interviews with food experts. The buying intention survey will entail two main questions, as Appendix A illustrates. The market area will be in a mall in the streets of Abu Dhabi, as most of the restaurant’s target clients will be shopping mall clients (Government of Abu Dhabi, 2023). The location was appropriate after determining the household average income, population size, and spending patterns through the surveys.
Expert Interview
Expert interviews were conducted among food scientists and marketing experts. The aim was to determine the right healthy ingredients to incorporate into the food and whether the location was okay, as exemplified in Appendix B below. From the marketing expert’s point of view, locating the business in the city was appropriate as it would target clients who have a busy schedule and are not always able to go for hospital checkups. Thus, the beneficial properties in the dishes will help them stay healthy.
Marketing Study
The Value Proposition
Description of the Service and Product
- Healthy food: The restaurant will use healthy plant extracts, including ginger, scallions, tomato peppers, sprouts, microgreens, cereals, grains, and other whole starches, including brown rice, oats, popcorn, wheat, and quinoa. These will be used as part of the recipes to ensure healthy dishes.
- Porridge: The restaurant will imitate local porridge recipes and add healthy cereals, including oats.
- Snack: It will be a characteristic of the restaurant that a snack must accompany each meal or drink.
- Drinks: There will be a variety of healthy drinks, including fruit juices.
Create Value for Customers
The restaurant will combine its food offering with people’s way of life to create value for its clients while ensuring sustainability. It will also offer an elegant environment, quality services, and exceptional food. Ingredients chosen will have medicinal value to improve their clients’ psychological functions, prolong life, enhance health, and prevent lifestyle illnesses (Government of Abu Dhabi, 2023). The restaurant will promote the country’s culture by offering cultural dishes (Raevskikh et al., 2022). Educating persons regarding the restaurant’s health-based catering will be a priority to make the industry boom.
Market Analysis
Describing Customer Segment
Abu Dhabi is one of the leading tourism destinations globally. In addition, statistics indicate that it has a population of 1.45 million (Government of Abu Dhabi, 2023). This indicates a substantial potential market for the restaurant.
It has divided its client segment into five: The first is business people, people who need high-class restaurants to discuss business issues. Blossom restaurant will offer unique, high-class food in exquisite environments. White Collars: This group tends to be characterized by high stress levels and needs a place to enjoy with their friends and families. Exceptional stress-relieving food in a suitable environment will be offered (Raevskikh et al., 2022).
College students: Abu Dhabi has many higher education institutions, and Blossom Restaurant will leverage them (Taha, 2020). There will be new and interesting dishes that will suit their preferences. Tourists: Healthy local dishes will help tourists experience a healthy Abu Dhabi culture.
How to Charm Customers
Blossom Restaurant will charm its clients by offering unique services and products. The restaurant will seek to know the client’s needs and appropriately differentiate the market. It will also ensure that service and product improvements are made for each market class to increase client loyalty.
Pricing
Blossom Restaurant wants its product prices to send its clients a message of understanding and familiarity. During the introductory phase, it will use the markup price strategy. As the restaurant expands, it will increase its product price and adopt the skimming price strategy.
Marketing Budget
Initially, the company will allot a flat rate on its marketing budget, aiming at its five target clients. Marketing will be done through online and offline channels, which will entail running ads on social media and erecting billboards. About $2000 to $ 3000 will be set initially for the marketing budget. After the restaurant starts recording significant sales, 3 to 6% of the restaurant’s total monthly sales will be allocated for advertising.
Distribution Channels
The main distribution channel for the business will be through its restaurant locations. It will also have a website where clients throughout the city can order, and their orders can be delivered in the comfort of their offices and homes.
Human Capital
Required Skills and Competencies
Blossom Restaurant will have three central departments: the delivery staff, the kitchen staff, and the managerial staff. The delivery staff will serve as ambassadors in the clients’ homes, offices, and across the streets. The restaurant will focus on having delivery staff with good backgrounds and verified driving licenses. The Kitchen staff is key to the restaurant and quality meals. Various levels of kitchen staff will be restricted, including sous chef, head chef, and helper. A degree in food science will be a requirement for kitchen staff.
Entrepreneurial team
The company’s directors, who will double as the CEO and CFO, have entrepreneurial backgrounds. They both have a masters in human resource management and vast experience in businesses, having held managerial positions in other businesses.
Financial Study
Costs
Initial Cost
To set up Blossom restaurant, an initial cost of $134,000 will be needed, covering initial assets and startup costs. Pre-launch startup expenses will amount to $50,000. These and other costs are broken down in the cost structure below.
Cost Structure
The pre-revenue and pre-launch expenses include $17000 for interior and furniture, $3000 for legal fees, $3,000 for branding, $15,000 for rent, 10,000 for location fees, and $2000 for miscellaneous. In addition, other assets include $10,000 for inventory, $50,000 to cover working capital and early deficits, and $4000 for current assets and costs for items such as napkins and plates. Long-term assets, including fixtures and the kitchen, will cost $20,000. The total startup cost will be as follows:
- Pre-launch startup expenses of $50,000
- Current assets $64,000
- Long-term assets $20,000
- Total 134,000.
Revenue
Revenue Streams
The restaurant’s main revenue source will be selling dishes, snacks, and drinks in its locations. However, it will also substitute this with home and office deliveries. In addition, it will offer event hosting and a swimming pool, which will charge for swimming sessions. In the future, lodging rooms are planned.
Profit Generation
Through the markup pricing strategy, the restaurant will add its profit above the cost of production. It is expected to break even after three years of operation.
Fund Raising
The restaurant is expected to raise its funding in two main ways: equity and debt. Equity funding will involve getting money from investors with a stake in the business. Debt financing will encompass taking a repayable loan from the bank.
Conclusion
This draft presents a summary of the business plan of Blossom Restaurant, a restaurant that offers healthy dishes. It illustrates each section of the Blossom business plan with a short elaboration. It is imperative to note that the final business plan will have more elaboration. In this draft, some sections are in progress, including the business model illustration and the entrepreneur self-reflection.
References
Government of Abu Dhabi. (2023). About Abu Dhabi. Web.
Raevskikh, E., Khalid, U., & Pinto, J. (2022). The share of the culture sector in Abu Dhabi’s GDP –Introductory report. HAL Open Science, 4-5. Web.
Taha, M. M. (2020). Residents’ perceptions of the impacts of tourism development: Empirical evidence from UAE. International Journal of Heritage Tourism and Hospitality, 14(1), 52-56. Web.
Appendix A
- What areas can be identified as the restaurant’s appropriate market?
- What are your spending patterns?
- What’s your average monthly income?
- How many are you in your family?
Appendix B
- What healthy ingredients should a balanced diet contain?
- Is Abu Dhabi an appropriate location for a healthy dish restaurant? If yes, what are the reasons?