A Summary of the Business Plan
- Chevere Team-C Cuisine operates in the fine dining industry, serving exotic foods from Latin countries.
- Chevere Team-C cuisine is to be located in Riverwalk, San Antonio, which is frequented by about 2.5million tourists and visitors annually.
- Riverwalk, San Antonio is dotted with restaurants, entertainment spots, parks, shops and other social spots.
This presentation is a business proposal to launch Chevere Team-C restaurant in Riverwalk, San Antonio. The business plan is supported by the great potential of the area and the dynamic market that exists in the same place. This presentation will address several issues of the business plan, including the marketing plan, operation plan, and financial plan. Finally, we will see that Chevere Team-C cuisine stands a good chance of succeeding in its target market.
What Chevere Team-C Cuisine Restaurant Intends to Achieve
- To be the best and most unique Latin restaurant in the food industry.
- To provide high quality food at affordable prices.
- To provide friendly customer service.
- To empower the community through profit maximization.
A SWOT Analysis of Chevere Team-C Cuisine Restaurant
- Strengths;
- Weaknesses;
- Opportunities;
- Threats.
The SWOT analysis study will be crucial to this business proposal because we will see how Chevere Team-C cuisine can take advantage of its strengths to entrench itself in the market, and how it can overcome its weaknesses to be successful in the same market. Moreover, the opportunities and threats to be analyzed will be crucial in analyzing the business’s potential for growth.
What advantages do Chevere Restaurant have over its Competitors?
- Has a Multi-Latin cuisine which is fresh to the market.
- Offers high quality foods at an affordable price.
- Has a competent and friendly staff.
- Offers a unique restaurant ambience.
- Is located in a vibrant location (Riverwalk, San Antonio) that supports restaurant growth.
Weaknesses of Chevere Restaurant, Compared to its Competitors
- Restaurant is new to the area.
- Limited startup funds.
- Existing competition in the market which offers Latin cuisine.
- Restaurant lacks name recognition in the market.
Opportunities for Chevere Restaurant to Grow
- Offers customers a chance to experience great cuisine from different Latin countries (Colombia, Mexico, El Salvador, Costa Rica, Venezuela, Peru & Argentina) in a new state-of-the-art restaurant offering a great dining experience.
- Offers customer a great menu selection at affordable prices, providing spending-conscious consumers a place to dine.
The opportunity for innovating new products and services will cut a mark above Chevere’s competitors because this opportunity is limitless. Chevere is therefore bound to have an array of products and services which will act as a benchmark for quality product and service provision.
Threats Posed to Chevere Restaurant
- Competitors have a greater market share and it may therefore be difficult for Chevere to establish itself in this market.
- Reduced consumer spending. The current economic conditions have greatly reduced consumer spending which can have an effect on the company’s sales.
- High operating costs may affect restaurant’s profitability.
An Analysis of the Strengths and Weaknesses of Chevere’s Competitors
- Strengths:
- Strong brand establishment;
- Longer experience in business;
- Weaknesses:
- Las Ramblas only serves Spanish cuisines;
- Customer dissatisfaction due to poor customer service and low seating capacity;
- Sazo’s prices are expensive, and it only specializes in Mexican dishes.
In understanding the competitor strength and weakness analysis, it should be understood that, this business proposal mainly focuses on two main competitors (Las Ramblas and Sazo). Focus will be on the two restaurants because their business model is closely similar to Chevere’s.
How Does Chevere Intend to Market Itself Within its Target Market?
- Product and service strategy.
- Target market Strategy.
- Competitor Strategy.
- Pricing Strategy.
- Communications Plan.
How Chevere Intends to have a Unique Product and Service Offing
- Products and services will be unique to target market (inhabitants of San Antonio).
- Products and services will be traditional, rich-cultured Latin foods.
- Customers will be taken on a voyage to Argentina, Mexico and central America to enjoy the sights and sounds of these places, and also sample the authentic spices offered in these locations.
Characteristics of Chevere’s Target Market
- The main target market will be the inhabitants and visitors of Riverwalk, San Antonio.
- Since Riverwalk, San Antonio is a vibrant tourist hub, various people from different market segments will be targeted.
- Products and services will be designed to appeal to different demographics.
Since Riverwalk, San Antonio is frequented by more than 2.5 million people annually, its is estimated that, this population is very diverse because it is characterized by people from all walks of life. The target market strategy is therefore designed to appeal to these different market segments.
How does Chevere Intend to Outshine its Competitors?
- The main competitors are Las Ramblas and Sazo Latin Grill;
- Indirect competitors are Boudro, Biga on the banks and PaesanosRiverwalk;
- Chevere Team-C Cuisine will offer quality foods at lower prices;
- Chevere Team-C Cuisine will offer value addition by including live entertainment and salsa classes;
- Chevere Team-C Cuisine will have a competent and well-trained staff;
- Chevere Team-C Cuisine will have a good ambience and will be in close proximity to Perus famous Lost City which is a great tourist attraction;
- Customers will also be taken on tour to wonderful locations where they will sample spices and authentic dishes from these locations. Competitors do not have this advantage.
The main factor behind the competitor strategy is value addition. Chevere will therefore not only offer exotic dishes but also provide its customers with salsa classes, excellent customer service, access to various exotic destinations and home-grown entertainment.
How Chevere intends to Price its Products and Services
- Simple price set menu;
- Varied price range offing, ranging from moderate to high prices;
- The pricing will be designed to cater for low-end and high-end markets;
- Overall pricing will be lower than the competitors’.
The pricing strategy is designed to be flexible so that all market segments can be accommodated.
How Does Chevere intend to Communicate its Products and Services to its Customers?
- Online communication will be the main communication strategy;
- Referrals will be relied on as a complementary tool to online communication;
- Promotion (by marketing the restaurant in common festivals around the main location);
- Radio;
- Public relations;
- Seeking the services of advertising agents.
How Chevere Intends to Manage the Restaurant
- Licensing.
- Human resource plan.
- Information technology plan.
- Operations plan.
- Financial plan.
What Documents are Needed to License Chevere Restaurant?
- Business permit;
- Health department license;
- Fire department permit;
- State license;
- Liquor license.
The total costs of incorporation is estimated to be $399.
What Plans does Chevere Have for Its Employees?
- Restaurant will be run by six managers.
- Three employees will be hired for miscellaneous tasks, such as, catering and delivery services.
- Monthly remuneration will be paid to management and hourly remuneration will be paid to lower-level employees.
- There will be a wage increase of 2.5% annually (for hourly paid workers) and $2,500 will be allocated for employee benefits, with an increment value of 7% annually.
How Information Technology (IT) will Complement Chevere’s Vision and Mission
- A company website will be set up as a resource to customers, where they can order goods, trace the restaurant’s location and send feedback to the business.
- The company website will contain an e commerce section, reservation section, catering request section and a picture viewing section.
- The initial marginal IT cost will be $2,000.
How Chevere will Undertake its Operations
- Business will operate like a corporation.
- The company attorney will handle all legal cases.
- Latin style of dining experience will be adopted.
- Business will also operate as a catering and merchandising establishment.
- Business will operate through franchises in future.
How Chevere Intends to Finance its Operations
- Capital will be sourced form a 5-year, $200,000 loan;
- The annual interest for the loan will be 7%;
- Interest rate per period will be 0.5833%;
- There will be 60 payments to be made before the loan is completed;
- Total repayment will be $237,614.38.
- First year profits are estimated at -$78,401;
- Second year profits are estimated at $351,899;
The capital financing strategy is aimed at paying off the company’s creditors (in five years) so that the business can be independent and be able to offer its products services through franchises.
