Introduction A & B Restaurant originally started in Louisville, KY and actually was a restaurant that only served soup. Now in its third generation of family ownership, A & B Restaurant has twenty-eight locations across the country and now serves sandwiches as well for its customers. The restaurant is geared towards families, but we would like to create a menu that is more diverse to create a broader target market. The restaurant is currently open for lunch from 10am to 8pm. The menus are set at such a price that everyone can be able to afford it.
For this restaurant, customer satisfaction is everything and so the management will be ready to sacrifice anything for the sake of customer delight. At this moment, the customer’s request that breakfast is served in addition to the lunch menu. When the customer will have delight they will feel a total value for money. Today consumers are aware of all their choices in any type of market place. Due to this we must ensure we offer the most suitable and demanded product at the right time, right place and right price. With our consumer base, this is definitely a contributing factor for A & B restaurant.
Operations Plan: Strategy In the operations of a quick serve type of restaurant, our employees have gained valuable experience in food preparation, money handling, and customer service. The managers have become proficient at every station in the restaurant and became a magnificent leader amongst the employees. Our owners/managers oversee the training of new all new employees and the successful operation of the employees working in the restaurant. Being an owner of the restaurant, you have to learn how to motivate and lead people.
This family oriented franchise will be a perfect answer to the communities need for quick-serve restaurants that includes another option for breakfast. In most of our market areas, we have at least 7,500 residents within the five mile radius of the restaurant that fit into the primary target market. I noticed that about 50% percent of the target populations are white collar professionals who currently visit our restaurants during their lunch breaks. The restaurant will just add more business to its primary target markets once breakfast is included.
In order to successfully incorporate breakfast products into A&B, it will ultimately affect the following processes: Purchasing, Product Selection, Forecasting, and Facilities. The initial and long term successes of the restaurant will depend on repeat customers and word of mouth. Customers want to come to a place where they feel welcomed and are treated with the utmost respect. Many companies outperform competitors based on customer service. Even though A & B restaurant is a quick serve restaurant, it will be our priority to ensure customer satisfaction.
The restaurant will be very informal and relaxed. Processes of the Restaurant oStrategic capacity management A big emphasis is being placed on extensive research into the quality and integrity of our food. They will always constantly be tested for our own high standards of freshness and purity. Food costs and inventory control will be handled by our computer system and checked daily by our management team. In our restaurant, the leadership of our managers have always involved attempts on the part of a leader to affect the performance of a follower or followers in situation.
Our management abilities focus on the techniques and expertise of efficient organization, planning, direction, and control of the operations of a business. In this ever changing global business environment our restaurant must be competitive and must be able to do everything it can to counter any threat from its competitors. Companies take part in strategic alliances to attain advantage over their competitors and for both companies to acquire benefits from each other. These strategic alliances won’t be successful if there is no leadership.
Leadership gives many things to the company. It is an important aspect of a company. Although leadership can come from core intellectual assets practical application is also vital for the success of the company and for the company to be competitive in the global business environment. oProduction processes Most food will be prepared on the premises. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Food will be made mostly by order and stored in large refrigerators on the premises.
We are going to use only fresh ingredients, whenever it is possible. The production processes that the restaurant will offer is excellent food and beverages items and will increase in number as time passes. The names of the food and beverages are unique, so that customers may know that the products are uniquely our sandwich shop. oService processes In my mind, I think that we are going to need at least 2 Store Managers to oversee the day-to-day operations of the restaurant and to deal with customer concerns. We do not need too many because it is not a very big business.
Then we will need about 4 more cashiers to take customer payments and allow discounts to the restaurant. The cashiers can then work as part of the service crew along with about 3 more service crew members. They will attend to delivering the output of baristas to the customer’s and to give out freebies to customers when applicable. Lastly, we will need a Janitor to manage the cleanliness of the store for the comfort and health safety of the customers, and to occasionally deliver messages and documents outside the restaurant. oQuality processes
The price will depend on the type of food and beverages that we are going to serve for breakfast. Using all the available information in this business plan, the pricing objective of the restaurant would be to offer the best-tasting breakfast food and beverages in the area in addition to our wonderful sandwiches at relatively affordable price ranges. With that in mind, the pricing strategy included the cost of providing food and beverages to the customer (electricity costs, labour costs, raw materials cost, etc. ) Supply chain •Sourcing The A & B Corporation will provide the supplies necessary for operation.
Due to bulk buying by The A & B Corporation and our standardized franchise-based supply line, our purchasing costs will be 15% below similar costs incurred by a typical non-Franchise restaurant and our payment day’s average 45 instead of the industry median of 30 days. An estimated cost of goods will be around 35% of sales, an average for the restaurant industry. The amounts will be updated with real figures once we have three months of purchase history after the breakfast start up. We expect to revise our sourcing costs down by at least 10% in November.
Our strategy is to focus on promoting the business through local PR efforts, rather than paid advertising. We also planned to We plan to distribute our products direct to customers, without the use of a separate channel of distributors. •Logistics We will include customer-centric appeals to switch from the competition, build loyalty, provide cost value to the customers, and build word of mouth marketing. Here’s a list of the sales and marketing programs we intend to implement within the next 12-15 months: •Five daily in-store regular specials, at least 20% off one particular sandwich item. A direct mail coupon offering 50% off your first sandwich when you bring in a stamped card and sign up for our coupon mailing list. •High profile sponsorship of two local sporting or charity events. •Free delivery to any of the local hotels (market only through hotels), and offer to pay hotels a slotting fee. We may institute more programs as we see fit. This list of programs is aggressive when compared to the local marketing done by our competitors, so this should give us an early advantage as long as we can keep cash balance and sales. Enterprise resource planning systems Demand management Based on the previous details, planning is a key resource of the organization, together with people, finances and material assets. It is accepted to state that project plan is a business issue. Through effective project planning management of the organization’s resources and systems, organization administrators can add value to the services delivered to customers, reduce risks in the organisation’s business, reduce the costs of business development and service delivery and encourage improvement in internal business processes and external service implementation. On the ther hand, it is recommended that when developing a project, it would be better to build a report that is ideal for a specific need then to make a report based on a predefined concession. •Sales and operations planning There are two market needs we are attempting to fill. First, there’s a need for a fast food restaurant that produces tasty fast food, at a low cost, in a clean environment. In order to fill the needs of all of the customers, we will have to market products that appeal to their healthy lifestyles, their taste buds, and their sense of “place”. The market for fast food is becoming more and more demanding.
Many people are heading for restaurants that offer fast food at a slightly higher price, but at a much higher quality, and delivered by employees who do not feel degraded their role at work. If we go after the those percentage of consumers that in between the bargain-hunters and the spendthrifts, and of those, the ones that are repulsed by standard fast food practices, lack of cleanliness, and the total lack mood to most fast food restaurants, we will do a brisk business. If you really think about it most consumers spend almost 50% of their food budget on eating out. Inventory control If A & B Sandwich Shop drop some suppliers and build more of a relationship with others, they may be able to better control their inventory to what their needs are now. In the A & B Sandwich Shop, the basic purpose of inventory control is to specify when items should be ordered and how large the order should be. Our goal is to enter into longer-term relationships with vendors to supply our needs for perhaps the entire year or more. This changes the “when” and “how many to order” to “when” and “how many to deliver. Conclusion
We would like to bring to market the tastiest and healthiest fast food breakfast sandwiches in Louisville, at a slight cost premium over other fast food restaurants. With our high standards of quality and cleanliness, we could easily establish our reputation as the cleanest fast food restaurant in Louisville. A and B sandwich shop is focused on servicing Louisville’s growing demand for different type of eating experience of sandwiches besides the traditional sandwich shops like Subway and Quiznos. We just want a restaurant concept that responds to Louisville’s need for selection and choice.
The downtown demographics fit this concept perfectly. It also helps that our management team has over 10 years combined experience in food, restaurant and hotel, business management, finance, and marketing areas. We feel that if everything goes the way it should, then repeat customers will constitute 70% of our overall business by the end of year one after the breakfast portion has begun. We will track customer habits and loyalty through a local marketing research firm, and publish the results of these findings to our employees once a quarter.