Business_Plans_-_Hospitality

Portofino Bar & Grill Business Plan 775 Danforth Rd Toronto Ontario M1K 1P3 (647) 818 4169 CPEDIAS@HOTMAIL.COM CHRISTINA PEDIAS 03 12 2010 December 3rd, 2010 775 Danforth Rd. Toronto Ontario M1K 1P3 Dear Peter Smith, I am in quest of a loan for my business Portofino Bar & Grill located on the Danforth. I have thirteen years of experience in the hospitality industry and six years of managing in very high end and fast paste restaurants that has gained me a reputation of being professional, and detail oriented within the workplace environment and feel I am ready to take on the roll of opening and operating a restaurant of my own. Furthermore, I found and outstanding building for lease right in the heart of Greek Town, I have done my research on locations and got the taste for the Danforth community due to population base, accessibility, visibility, my target market and of course coming to an understanding with the building owner of my lease requirements. The Danforth has a constant flow of the people I am looking for; this location is perfect for Portofino Bar & Grill. The working population on the Danforth is sixty-five percent between the ages of 20 to 64 that make an approximant income between $ 18,000 to 80,000 and spend an average of $2,000 on entertainment according to the Toronto website of Income and Poverty on the Danforth. Now that is not the only reason why this location is perfect for me but also, the style of the restaurant and what it has to offer is different from my three major competitors that you will further read in my business plan. I would like to add that this would be highly beneficial to you. For instance, the fees you would be making off the interact machine per transaction that will be provided by you, as well as the $100 a month in the business banking plan that I will be choosing, and not to mention the interest on the loan for a 5 year expectancy. As you can see if provided with the loan my company and the bank will both be benefiting. I would like to say thank you for your time and consideration and hope you will review my plan that I can guarantee it will be a great success. I am available next week Monday to come in and discuss my business plan further. Sincerely, Christina Pedias Table of Contents Executive Summary 1. Business Overview 1.1 Business Owner(s) & Product/Service 1.2 Mission Statement 1.3 Current Opportunity 1.4 Projection of Business Future 2. Market Analysis 2.1 Industry, Yesterday, Today and Tomorrow 2.2 Competitive Analysis 2.3 Demographics & Target Markets 3. Marketing Plan 3.1 Target Markets 3.2 Our Product 3.3 Competitive Advantages 3.4 Promotion & Distribution Plan 3.5 Pricing Strategies 3.6 Web Strategy 3.7 Advertising & Promotion Plan 3.8 Marketing Budget 4. Management Summary & Personnel Plan 4.1 Management Summary 4.2 Personnel Plan for Projected 3 Years 5. Financial Plan 5.1 Financial Objectives 5.2 Start-up Costs 5.3 Potential Sources of Investment and/or Funding 5.4 Pro-Forma Projected for 3 Years 6. Appendix A: Start-up Costs B: Pro-Forma 3 Year Projection C: Resume Executive Summary Portofino Bar & Grill is 65-seat restaurant with a 20-seat patio. We focus on Mediterranean cuisine. We will be located in the heart of Greek Town. This area is booming and rapidity expanding and is in need of Portofino Bar & Grill. This restaurant has a barbaric atmosphere for those who love the bar scene, the menu will inspire Mediterranean delicates such as Spanakopitas, dolmades, Keftedes and more famously their tenderizing Chicken dinners. This will be the place for those who are seeking a good time. Portofino Bar & Grill will be open 6 days a week and only closed on Christmas Day. We will be offering special theme nights to attract new customers. The restaurant is casual dining in a delirious atmosphere with warm colors and blaring music. We will be hiring fourteen employees with a must in bartending and cooking experience of a minimum of one year and will be training the servers with none too little experience in order to get customer satisfaction guaranteed every time. Mission Statement: Portofino Bar & Grill provides customers with an up-beat environment with a mission to provide customers with cultivated food with ample service at an effective and friendly manner. Since we want to be the restaurant of choice to all couples and singles, so customer service to us will be vital! Happy employees make happy guest. Objectives: * Increase sales by 1.75% by the second year * Keep gross margins at 60% * Stay a small establishment with intention of franchising and expanding * Expand in marketing and advertising through the GTA Start-up Summary: Portofino Bar & Grill start-up cost came to a grand total of $45,062.81. This includes chattels, equipment, supplies, menus, contractors and most important licenses. Part of the cash is to be financed by TD Canada Trust at a 9.75% interest rate with approximately 15% of the loan goal to be paid per year. 1. Target Market(s) i. Portofino Bar & Grill is striving to attract mainly singles, couples, and the occasionally baby boomers. However, the entry for families with kids under 19 years of age will be restricted after 9pm due to AGCO required regulations. ii. Male Singles Between the ages of 20-28 since they are the ones mainly about the nightlife mingling. They are approximately 1115 males located on the Danforth between the aged of 19-29. Big chucks of them live individually who make an average income of $10,000 and over a year and $2000 of that is spent on entertainment a year and the rest are working students who make a low-mid income but still tend to spend about a quarter of their pay check on entertainment. iii. Female Singles Between the ages of 19-29 who like to have girl nights out. iv. Portofino Bar & Grill is a restaurant that brings out the real European atmosphere on the Danforth and caters to its customers a mouth full of flavor with a great memorable nightlife. 2. Current Opportunity i. The current opportunity that is available to me is offering the Danforth population with a chayote type bar, which is something that has not been done on the Danforth. That is what Portofino Bar & Grill is about. 3. Projection of Business Future i. The future of my business will be timeless because I am in a good location that is visible and accessible to those coming to the Danforth, it has a constant flow of people that is vital, and serving great food is paramount as is good service that I will be offering. With these things, I will gain popularity and good reviews so word of mouth can do its work. 4. Financial Summary i. Total amount of estimated startup costs: $ 45,062.81 ii. Total amount of projected average yearly expenses: $ 554,571.20 iii. Total amount of projected average yearly revenue: $ 1,551,420 5. SWOT Analysis Strength | | Weakness | | Opportunity | Since this is a new establishment people will be coming in to check it out and give me the opportunity to greet and meet new people to make them repeat customers. | Threat | | 6. II. Market Analysis 1. Industry i. The Bar industry on the Danforth has seen some tuff times when the City of Toronto smoking in bars band came to effect and approximately 49.5% of Greeks are smokers so this did not make them too happy. In addition, the SARS breakout had a major effect but things have improved dramatically and the industry is doing better with yearly increases on average 2% yearly. 1. Competitive Analysis (Appendix B) i. Portofino bar & Grill has three major competitors, which are; Fox in the fiddle, St Louis and Silver City. III. Marketing Strategy 1. Product/Service i. Portofino Bar & Grill will be offering a great Mediterranean delicacy at a high level of service from our well-trained staff and experienced chefs. We will also be offering a late night menu with daily specials. Nevertheless, we are going to have Karaoke nights for those who feel like singing their heart out and a DJ on the weekends for those who want to shake it on the dance floor. 1. Promotion/ Advertising i. Promotion is a big part of success in any business as you are familiarizing the public of your business and letting them know you exist. Here are some of my ways that I will be promoting Portofino Bar & Grill. 1. Star factor- I will invite the hottest celebrities to the restaurant, get pictures taken with and signed by them and put them up. 2. Birthday mailing service list- Since I have a young target market, majority of teens and young adults like to dine out an go dancing on their birthdays, so why not get both their needs catered too. I will have a members list for customers who want to sign up and receive e-mails about birthday promotions in advance. Each e-mail will have a redemption code which will show if this strategy is working 3. Fantastic Mondays- Mondays since that is when I assume will be the deadest day I will be having a 50/50 draw for customers to get their food bill paid for. This will have customers ordering more food since there is a chance of it being free. 4. Public relation- 2. Pricing Strategy i. How you are going to price your product or service' Look at the competition’s price, what you believe your costs might be, and can you get the same price or a premium over the competition' ii. Penetration pricing strategy 1. Price charged is set artificially low to gain market share. Once achieved, price is increased. iii. Skimming pricing strategy 2. Charging a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. iv. Follow-the-leader pricing strategy 3. Set price based on competitors (leads to “price wars”). v. Variable pricing strategy 4. Price fluctuates based on (changing) cost of production. vi. Economy Pricing 5. No frills low price; the lowest possible regardless of what other are doing. Cost of marketing and manufacture are kept at a minimum. vii. Premium Pricing 6. High price is for a uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. 3. Web Strategy i. Portofino Bar & Grill will have a simple but attention grabbing website. It will offer menu, prices, reviews and happenings at the restaurant. You will also be able to write us e-mails to reserve a section for a special occasion. Fast, easy and convenient! 4. Differentiation (Competitive SWOT) Strength | | Weakness | | Threat | | Opportunity | | 5. This brings your entire marketing strategy together. i. Why will you succeed' What will you do different than the competitors' These are called your “core competencies”, what you do well that perhaps the competition does not. List your core competencies. Examples would be superior service levels, exceptional quality, speed, better product or service, better location, etc. ii. If there is enough differentiation, you can be successful. If there is little or no differentiation, then you will usually need to rely on price to get business; not the best option for a start up business. 3. Cash Flow Projection (Appendix A) Appendix A: Cash Flow Statement Insert Cash Flow Statement Appendix B: Competitive Analysis Factors | You | Silver City | St. Louie | Fox and The Fiddle | 1. Products | | Drinks only | Wings, ribs and Drinks | Pub food. | 2. Price | | $4 to $6 | $11-$25 | $10 pitchers, half price wings on Monday. Generally, $15-28 per person | 3. Quality | | N/A | Excellent | Fair - Good | 4. Customer Service | | Excellent | Good-excellent | Good | 5. Product Service | | | | | 6. Reliability | | | | | 7. Abilities: Services Offers | | Sunday to Monday 11am to 2pm | 11am to 2 am | | 8. Location | Danforth and Pape | Danforth and Pape | Danforth and Pape | Danforth and Carlaw | 9. atmosphere | | | | Warm and vibrant and friendly. | Appendix