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Red Lobster Restaurant: Student Business Plan Report

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Updated: Apr 16th, 2021

Introducing the Contemporary Business World

Executive Summary

The proposed business name is Red Lobster Restaurant. The name of the business suggests the proposed core services be offered to customers. To make the best of the existing opportunities, the business will be located at the seashore to offer seafood to customers from different backgrounds, as expressed in the mission statement. According to the mission statement, the business is to provide healthy seafood that will be prepared according to the health and nutritional needs of the target customers.

The focus will focus on customers from different income groups to create a customer base sufficiently large to enable the business to generate enough profits to sustain the business. Typically, the business will use modern web technologies and advertising services on the internet to reach a wide audience of customers. The proposed business will offer products at competitive prices to attract a wide number of customers. The business intends to widen the scope of the services and the variety of foods offered and to grow to become a global business empire by taking the unique services close to the people (Marketing theory 2013).

Business Name

The proposed business name is Red Lobster restaurant. The reason for the use of the above business name is to reflect the type of services the business is proposed to offer.

Description of Business

The Red Lobster restaurant deals in seafood, which is obtained from the best sea fish and other sources, and the meals provided are of high quality, which is prepared according to the customer’s taste.

Form of Business Ownership

The proposed form of business ownership is based on the concept of a sole proprietorship. The reason for making the business a sole proprietorship is to optimize the benefits of a sole proprietorship, which includes the ability to run the business based on the available capital base without the need for shareholders. In addition to that, the business will be run as a single entity, making the management of the business flexible and easy to run. Another benefit associated with a sole proprietorship business includes the taxation of profits, which is done on the marginal profits of the sole proprietor.

Ideal Customer

The proposed ideal customers include people from different financial backgrounds and middle-level income earners. The proposed business plan targets customers from different age groups who have the financial capability to enjoy the services on offer. There are social and economic trends that have affected many households making it difficult to access good quality services. The business will accommodate different people with different economic backgrounds to enjoy the services to be offered (The Importance of Market Segmentation 2013).

Our Advantages

The pricing strategy will provide the proposed business with the ability to target middle-level income groups from different areas of the state. In addition, there will be additional lounges for high-income people, and special highly-priced meals will be prepared for high-income people.

Another competitive advantage of the business will be in the location that is at the seashore. The location provides the customers with an attractive view of the ocean and the sea breeze that often hits the seashore. Customers can enjoy a variety of seafood and other unique meals that are obtained from the sea. In addition to that, the seafood is obtained from an environmentally clean ocean, adding to the advantages of eating at the restaurant.

Ethical Issues

The code of ethics for the business is detailed in the principles that the business and the people running the business will be required to adhere to. In addition to that, the ethical code of conduct provides employees with the ability to adhere to the law and to make the hotel business compliant with service industry standards.

All employees will be responsible for maintaining and adhering to the Code of Conduct of the business. In addition to that, the business will provide customer-focused services. The services should begin and end with the customer; the services should be focused on meeting the needs of the customer. The customer will be accorded the highest priority, and the services should be friendly. It will be the duty of each employee in the business to report any case that is a direct violation of the Code of Conduct.

No person shall be victimized because of reporting a case related to the direct violation of the Code of Conduct.

Social Responsibility

Social responsibility will form part of the critical components of the business. The business will provide clearly articulated mission and vision statements which reflect the social responsibility of the business. The key element that will be integrated to make the business socially responsible include a value-based governance framework. The framework provides the basis for the business to describe the way employees of the company will work towards putting values into action.

In addition, the framework will consist of a charter that describes the business commitments, values, fundamentals, and any other follow-ups that might arise. The framework is also defined by different principles, which include focusing on the customer to understand their needs and expectations, providing proactive leadership, understanding the internal and external environment and making changes that reflect the changes, and inspiring others to make contributions toward the achievement of goals and objectives.

A human resource function to implement the employee code of conduct will be the point of focus when implanting the concept of social responsibility. In addition, the business will take responsibility to ensure the Business Code of Conduct and policies are fully implemented to prevent pollution and other environmental degradation activities.

Global Issues

One of the global issues affecting the business is that of a hotel restaurant that accommodates different people from different countries and cultural backgrounds. Different people with different cultural backgrounds have different perceptions of different types of foods. To accommodate customers with multicultural backgrounds, the restaurant will employ people trained and proficient in different languages and with specialized skills in preparing different dishes to suit the different needs of the customers. Each customer will be given specialized attention to ensure the needs of the customers from different backgrounds are addressed.

The Business of Managing

Mission Statement

The red Lobster restaurant offers a variety of seafood to meet your personal health needs. The food consists of specialized ingredients which are collected from the sea to make the special ingredients for your meal. The restaurant is your partner in your health needs, and it aims to become a regional and international brand name for the local and international visitors. The restaurant will provide employees with quality services that are geared towards providing unique services guided by the values and code of conduct to meet the expected needs of the customer.

Business Goals

To identify the type of seafood available in the market that suites the different needs of the customers.

The next goal is to establish the supplier of specific kinds of seafood for the customers that suites their specific food needs.

To set up a website to advertise the services to be offered.

The two intermediate goals are listed below.

To advertise the existence of specialized food from the sea using the internet and other advertising media

Identify and establish a sustainable seafood supply chain to meet the needs of customers from different cultural backgrounds.

SWOT Analysis

According to the proposed study, the restaurant has weaknesses and strengths against competitors. In addition, the business has opportunities and threats to address. The strengths of the proposed business are the unique seafood available for different people with different economic and cultural backgrounds and the breeze from the sea.

Threats

Some of the threats include new entrants into the same business who might realize the benefits gained by investing in the business.

Weaknesses

The weaknesses include the fact that the business is new in the industry and will take time to build goodwill and attract enough customers to sustain the business.

Opportunities

Some of the opportunities available for the business include the ability to expand and offer similar services in other areas and into the international market.

Management

The manager of the business must be a trained and skilled person with business management experience. The person should have the following qualifications.

Integrity

  • Self-motivation
  • Optimism
  • Confidence
  • Flexibility
  • Calmness
  • Industry knowledge
  • Good verbal and written communication skills
  • Active listening
  • Basic money management skills

Organization Chart

Organization Chart

The Business of Managing

Corporate Culture

I see the corporate culture of the business to be a culture where employees dress in a manner that uniquely identifies them with the restaurant and reflects a culture that accepts customers from different backgrounds. In addition, the culture will enable the employees to show a caring and personable attitude to the customers. The management of the restaurant uses an open door policy to resolve an disputes and problems that might arise. Employees work as a team and any contributions by the team members are strongly appreciated.

Leadership Philosophy

The leadership philosophy is based on team work. In addition, the leadership will be based on the servant leadership theory. The management will be obliged to lead by example and to develop other employees.

Job Descriptions

Title Job Description
Owner Mource
General manager Mathhi
Book keeper Samwel
Assistant manager Denis
Kitchen manager Robert
Position staff Admanson

Job Specifications

Next, create a job specification for each job, listing the skills and other credentials and qualifications needed to perform the job effectively.

Title Job Specifications Qualifications
Owner Director Bachelor
General manager Management Bachelor
Book keeper Bookkeeping Bachelor, ACCA
Assistant manager Assistant Manager bachelor
Kitchen manager Cook Diploma
Position staff Supervision Diploma

Training Employees

The management will first identify training needs and offer training according to the training needs of each employee. The approach will include using the on-the-job training method and if the training needs cannot be addressed at the work place, the employee will have to take leave and undertake the necessary training in another place (Market Research 2013).

Compensation

Title Compensation ($)
Owner 1400
General manager 1200
Book keeper 1100
Assistant manager 1000
Kitchen manager 800
Position staff 750

Incentives

The incentive scheme to motivate the employees will include giving them money in return for excellent performance, increasing the salary, increasing the number of days a person is on leave, and offering capacity bonuses (Market Research 2013).

Managing Operations and Information

IT Resources

A peer-to-peer network for file sharing and networking services will be requires, a network operating system to allow for network connectivity, and workstations for each of the departments. In addition, an interactive website will be set up to advertise for the services offered and to enable people from distant places to book for rooms without giving calls. The site will provide the navigational capabilities to customer to view the rooms as they are and book the most pleasant (Marketing theory 2013).

Customer Services

There will be the need for intelligent software and a database of customers which will enable the management to access the number of searches and the number of bookings done on the hotel to understand and determine the business trend.

Cost of Doing Business

Expenses Expected Monthly Cost ($) Expected Yearly Cost ($)
Rent 4000 36000
Salaries and Wages 6200 74400
Supplies: Technological, Equipment, and Furniture (computers, software, copy machine, desks, chairs, etc.), other 5000 60000
Advertising and Other Promotions 1000 12000
Utilities: Heat, Electricity, etc. 600 7200
Telephone and Internet 200 1200
Insurance 300 3600
Other (specify) none none
Other (specify) none none

Expected Revenue

The customers will be charged according to the meals they consume and the cost of the raw materials associated with making the meals. Different meals will be charged differently.

Income Statement and Balance Sheet

Product/menu mix

12-Month Income Statement (Profit & Loss Statement)

12-Month Income Statement (Profit & Loss Statement)
Enter your Company Name here
Insert Year: 2013
January February March April May June July August September October November December YEARLY
Revenue (Sales)
Category 1 18,000 12,200 15,400 61,000 56,100 41,950 67,400 78,650 17,000 12,000 19,000 23,000 #####
Category 2 2,000 1,300 4,500 6,700 34,000 12,300 13,490 14,565 12,340 18,990 12,398 7,659
Total Revenue (Sales) 20,000 13,500 19,900 67,700 90,100 54,250 80,890 18,900 29,340 30,990 31,398 30,659 #####
Cost of Goods Sold
Category 1 1,200 1,000 1,400 1,290 1,000 1,300 1,345 5,000 10,000 2,890 3,400 3,400
Category 2
Total Cost of Goods Sold 1,200 1,000 1,400 1,290 1,000 1,300 1,345 5,000 10,000 2,890 3,400 3,400
Gross Profit 18,800 12,500 18,500 66,410 89,100 52,950 79,545 13,900 19,340 28,100 27,998 27,259 #####
Operating Expenses
Rent Expense 4,000 3,000 4,500 4,390 3,785 5,600 9,870 3,458 8,978 3,422 7,860 357
Salary/Wage Expense 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200
Supplies Expense 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Advertising Expense 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Utilities Expense 600 500 400 1,000 3,400 4,500 6,000 600 600 2,340 600 900
Telephone/Internet Expense 200 200 200 200 200 200 200 200 200 200 200 200
Insurance Expense 300 300 300 300 300 300 300 300 300 300 300 300
Interest from Loans (if applicable) 200 200 200 200 200 200 200 200 200 200 200 200
Other Expenses (specify)
Total Expenses 13,700 12,600 14,000 14,490 16,285 19,200 24,970 13,158 18,678 14,862 17,560 10,357
Net Profit 5,100 -100 4,500 51,920 72,815 33,750 54,575 742 662 13,238 10,438 16,902 #####

Balance Sheet

Assets
Current Assets 400,000
Cash in Bank 200000
Cash Value of Inventory 1200000
Prepaid Expenses (insurance) 400000
Total Current Assets 1120000
Fixed Assets
Machinery & Equipment 60000
Furniture & Fixtures 40000
Real Estate / Buildings 120000
Total Fixed Assets 220000
Total Assets 1340000
Liabilities & Net Worth 30000
Current Liabilities
Accounts Payable 20000
Taxes Payable 4000
Notes Payable (due within 12 months) 4000
Total Current Liabilities 28000
Long-Term Liabilities
Bank Loans Payable (greater than 12 months) 60000
Less: Short-Term Portion 20000
Total Long-Term Liabilities 40000
Total Liabilities 68000
Owners’ Equity (Net Worth) 120000
Total Liabilities & Net Worth 68000
Floor Plan.
Floor Plan.

Raw Materials and Supplies

The raw materials required for the business include fish from the sea, fuel gas, electricity, water, corn, and a variety of sea animals.

Quality Assurance

The quality assurance plan consists of a number of steps to ensure the quality of service provided meet the expectation of the customers and complies with the hotel industry standards.

Managing Marketing

Target Market

The target market consists of people from different age groups, income levels, and cultural backgrounds. The income levels include people with middle and higher incomes and the age is not limited to any figure. It is a restaurant for all people with different classes to address the different needs of people from different backgrounds.

Product Features and Benefits

The meals to be served at the restaurant will include raw Ouster, smoked salmon, Lobster salad, Cobb salad, soup, crab cake, Grilled cheese, and fish sandwich.

Product Differentiation

The idea of product differentiation is critical in enabling the management position the restaurant at a competitive position in the market. The product differentiation strategy includes serving people with unique sea food meals will target the cultural orientation of each group.

Pricing

The pricing strategy will be based on customer tastes, preferences, and needs. In addition, the pricing be unique to reflect the different income levels of the customers and to give them the feel of their unique class.

Place (Distribution) Issues

The business does not require any product distributions because the services will be offered at the restaurant.

Advertising

The advertisement methods to use for the business will include the use of media, the internet, and social networking sites. In addition, the advertisement will be conducted using text messages which will be tailor-made according to the different perceptions of the target audiences (Marketing theory 2013).

Promotions

Promotions will include offering free meals for the first customers and conducing personal selling at the target customers. Personal selling will enable the management to address personal issues and needs and to formulate messages targeted at each customer and according to the needs of each customer. Another strategy for promoting the business is to create good public relations with the customers to stimulate the need for the service on offer. Other promotional strategies will include creating a strong and positive corporate image to increase the urge for the service being offered.

Managing Financial Issues

Start-up Costs

The start-up costs will cover the rent, food, furniture, advertisement, salaries before the business becomes self-sustaining, and other costs that arise from the operations of each day. The start-up cost is estimated to be $12,000.

Financing

The business financing strategy will include borrowing money from friend, relatives, and the bank (Marketing theory 2013).

References

Marketing Theory. (2013). Web.

The Importance of Market Segmentation. (2013). Web.

Market Research. (2013). Web.

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IvyPanda. 2021. "Red Lobster Restaurant: Student Business Plan." April 16, 2021. https://ivypanda.com/essays/red-lobster-restaurant-student-business-plan/.

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