Question: Prepare a Business Plan for Food Service Business
Food Safe Ltd Business Plan

1. Executive summary
   Food Safe Ltd is a recent start company dealing in Australian fast food. Fast food is quickly prepared, and processed food is used as a quick meal or * takeaway. Food Safe Ltd provides fast food services, including fried chicken, French fry, hamburgers, and Pizza. The company’s objective is to provide fast food that offers satisfaction to customers’ short-term food needs. It provides safe food, is well prepared, and packed.
   Food Safe Ltd business plan provides more information on the company, including company description, product and services, marketing plan, market research, product, and services features, product benefits, target customers, competition, promotion strategy, pricing strategy, operation plan, legal factors, credit policy, organization structure, financial statement, and financial plan.
2. Company description
   Food Safe Ltd is a start-up Food Company providing fast food services to residents of Sydney, visitors, and tourists. It aims to satisfy short-term food needs for the clients, including *take away food.
   Australian eating habits and statistics indicate that citizens spend more than 32% weekly on fast food (AIPT, 2020). The young generation spends more of their savings on fast food due to conveniences and affordability (AIPT, 2020). Young people love fast food than the adult population, and about 35% of men like fast food than 30% of the women population (AIPT, 2020). Food Safe Ltd will target young men and women; and at the same time, promises to make fast food cheap, safe, and readily available (AIPT, 2020).
3. Company Goals and Objectives
   • To provide affordable food to the community
   • To provide readily available food to the community
   • To service visitors and tourists with readily available and cheap food in town
   • To provide safe food to the community and visitors
   • To provide high-quality food and services to the community, visitors, and tourists
   • To provide jobs and income to the community
   • To Add value to the community produce
   • To bar the community from hunger impacts
   • To promote the wellbeing of the community by offering food and help them from avoiding meals
4. Food Safe Ltd Location
   The company will be located next to Customs House; 31 Alfred Street, New South Wales; Sydney.
5. Product and services
   Food Safe Ltd aims to be the leading food company in Australia by 2030. It boasts of getting more customers and getting a big share of the food industry by providing affordable, high standard, and readily available food in town. The company will prepare the following food items;
   • French fry
   • Fried Chicken
   • Pizza
   • Hamburger
   • Drinks
   • Salad and Sauce
   a. Product Flavor and Texture
   • French fry (Altohartley.com, 2021)
   Flavor-It is prepared with clean oil and quality potatoes to increase customer taste and experience.
   Texture-The French fries have a crunchy exterior and light interior but are not too crispy.
   Appearance-Food Safe Ltd will prepare French fry golden brown, have no dark spots or burns.
   • Fried Chicken
   The Food Safe Ltd Fried chickens are spicy, crispy, golden brown, and crunchy. It is saved with salad, sauce and provided to customers either full size, half, and quarter size.
   • Pizza
   Food Safe ltd provides varieties of pizza, including vegetable pizza, meat pizza, and chicken pizza. The pizza is of high quality and standard and is normally crispy, flavored, and has carefully placed *toppings.
   • Hamburger
   The Hamburger is sandwiched and consists of beef, sliced bread, and ground meat.
   .
   b. Product Benefits (Futureofworking.com, 2021)
   • Providing the option to get fast food instead of missing meals
   • Office workers and business people take fast food because it helps in managing work schedules.
   • Fast food helps to reduce hunger and promote wellbeing
   • Food Safe Ltd provides excellent fast food products and services to the customer
   • Fast food products from Food Safe Ltd are affordable and convenient to clients.
   • The food is properly prepared and safe for consumption because product information is provided on the packages
   • It is an economic booster for the New South Wales community
   • The production process serves to provide jobs to the community.
6. Marketing plan
   The marketing plan is arrived at after examining New South Wales’ demographics and the population’s eating habits. It will include market research, target customers, SWOT analysis, and competition.
   a. Market research
   Research indicates 35% of men love fast food than 30% of women dwelling in Sydney or visiting Sydney (AIPT, 2020). 31 Alfred Street location is a suitable business center for Food Safe Ltd because it is normally crowded with food festivals and cultural celebrations; also, it is the arrival point for tourists and visitors to Australia (AIPT, 2020). Research indicates that 32% of the population loves fast food and their spending habits suggest that young people love fast food because of affordability and conveniences (AIPT, 2020). Worldpopulationreview.com (2021) suggests a steady growth in Sydney population from 1950 to 2021 to an estimate of 4,991,654, representing 1.33% annual change (Worldpopulationreview.com, 2021). Religious demographics comprises Anglican, Eastern Orthodox, and Islam, who have the majority of fast food lovers (Worldpopulationreview.com, 2021).

(Worldpopulationreview.com, 2021)
b. Target Customers
The target customers are the workers and employees within New South Wales. Food Safe ltd also targets tourists passing through Customs House and the community. Other customers and clients will come from Sydney dwellers, government employees, corporate staff, and visitors attending annual food festivals and cultural events.
c. Vegetables Availability
Potatoes are the largest vegetables grown in Australia, at about 1.3 million tonnes. 90% of Australian vegetables consumed in Australia are grown locally (Ausveg, 2018). Potatoes are grown for processing and human consumption (Ausveg, 2018). Other major crops grown in Australia are tomatoes (426,000 tonnes), Head Lettuce (128,000 tonnes), onions (27,700 tonnes), and carrot (318 tonnes). The potatoes’ production value continues to rise from 2917, where it was $717 million for the total potatoes produced in that year (Ausveg, 2018). Availability of vegetables including potatoes, tomatoes, onions ensures Food Safe ltd of its basic production resources. The company can continue to venture into the fast-food business and compete in the market for customers knowing well it will not miss the production resources at any point, and despite the fluctuation of potatoes and vegetable prices, the company will maintain and charge the lowest price in the market making it the best choice for town workers.
(Ausveg, 2018)
d. Meat Availability
Meat production includes beef, sheep, lamb, pork, horse, camel, and goat meat (Safefood.qld.gov.au, 2021). The value of meat produced in Australia reach $10.8 billion by 2019 (Safefood.qld.gov.au, 2021). The meat industry is a major sector in Australia, creating employment for about 434,000 people (Safefood.qld.gov.au, 2021). Meat production contributed $17.6 billion to GPP by 2019. Meat is available in Australia for commercial use and processing (Safefood.qld.gov.au, 2021). The industry generated a $72.5 billion turnover in 2019. Australia has the seventh-largest cattle and dairy cows’ population in the world (Safefood.qld.gov.au, 2021). It is the largest veal and meat producer in the world; hence using meat products to make hamburgers and sandwich is a good business in Australia (Safefood.qld.gov.au, 2021).
e. WOT Analysis
The strength of its services primarily hankers in the ability to prepare and provide affordable, high standard, and safe, fast food to customers quicker than competitors. The company is located in a busy area adjacent to Customs House, 31 Alfred Street, New South Wales; Sydney.
The company operations will be supported by the availability of food products such as chicken, potatoes, and meat (Ausveg, 2018). Good roads and infrastructure also support the delivery process from the farm to the market. In addition, there are enough labor force and personnel to carry out the services and qualified managers and cooks within Sydney ready to work for the company.
The weaknesses of the business include management commitment to the operation plan and the company goals and objectives. In addition, the company does not offer further training and orientation to its staff, including cooks, and they are expected to have prior knowledge of the food industry.
There are opportunities in the food industry business due to the increasing population comprising mainly the youthful generation (Worldpopulationreview.com, 2021). The number of visitors and tourists normally increases during festivals, events, and cultural celebrations, providing a good opportunity for the company to thrive. The price range for fast food has in the recent past gone high; hence it is an excellent opportunity for another company offering fast food at lower prices (Ausveg, 2018).
Threats include fierce competition, legislation, and laws to be followed in the food industry, threatening and delivering challenges. Delivery challenges include failed food product delivery and failed delivery and supply of cooking oil. In addition, dry seasons put threats due to low food availability and hiking of food prices. Inflation and import exchange rates also increase the threat of losing money value during food product importation..
f. Competition
Competition comes from hotels and restaurants, including pubs, bars, and outside catering centers within New South Wales (Tripadvisor, 2021). Primarily, Food Safe Ltd will handle competition because of the affordability and convenience of its products. The Food Safe Ltd products are unique because of texture, flavor, safe food, and readily available. The food industries in Sydney consist of the following players or competitors;
• Fullerton Hotel
• Little National Hotel
• The Great Southern Hotel Sydney
• Four Seasons Hotel
• Sir Stamford
• Travel lodge Hotel
• Ovolo Woolloomooloo
• Star Grand Hotel and Residences
• Veriu Broadway
• The Grace Hotel
• 57 Hotel
• Quest New Castle West
• Sofitel Sydney Darling Harbour Hotel
• Quest Nowra Hotel
• Rydges World Square
• Swiss Hotel Sydney
• Hilton Sydney
• The Branksome Hotel & Residences
• West Hotel Sydney
• Curio Collection
• Megaboom City Hotel
• The Executive Inn
• Sydney Boutique Hotel
• Rydges Parramatta
• Rydges Port Macquarie
• Water Edge Port Macquarie
• Mercure Newcastle
• Mantra Parramatta

7. Strategy
   The strategy section will consist of the promotion strategy, pricing strategy, and sales forecast.
   a. Promotion strategy
   The promotion strategy will include television and radio channel promotion, posters, billboards, flyers, and online advertisements. The online advertisement channels will consist of ads on YouTube, Facebook Ads, LinkedIn, Pinterest, Twitter, Instagram, and TripAdvisor.

Promotion budget
Promotion techniques Total Per Month
Television Channel $6,000
Radio Channel $3,600
Posters $600
Billboards $600
Flyers $240
YouTube $2,400
Facebook $2,400
LinkedIn $600
Twitter $600
Instagram $600
Total $17,640

b. Pricing Strategy
The Pricing methods will be arrived at after considering competitors’ prices; it will involve examining the local hotel prices and all fast food company prices. Food Safe ltd will offer the lowest price considering the cost of sourcing the food, paying the workers, rent, electricity, and maintenance cost. The goal will guide the company to ensure most fast foods are allocated prices below $20, and the table for pricing will look like the one below;

Items Food Safe Ltd Prices Lowest Market Price Highest Market Price
French fry $8 $9 $25
Hamburger $13 $15 $50
Fried Chicken $9 $10 $30
Pizza $10 $11 $35
Drinks Prices to used are set by distributors Varied Varied
(Gladstone, 2018)
c. Sales forecast
The company will focus on selling its fast food products to the community, visitors, tourists, corporate workers, and government employees.
Industry Lowest number of customers Expected per month Highest number of customers Expected per month
Community 50,000 100,000
Visitors 30,000 50,000
Tourists 10,000 30,000
Corporate Workers 8,000 14,000
Government workers 4,000 10,000
Expected Revenue $2,275,000 $5,335,000

8. Operation Plan
   The operation plan will include the production of food, distribution of food to clients, supply of food products from farmers, management plan, working and operation hours, legal environment, credit policy, and organizational structure.
   a. Working hours and days
   Food Safe Ltd will provide affordable and fast food to tourists, visitors, and residents of New South Wales from Monday to Sunday. The company will employ personnel including general manager, managers, and other staff on a contract basis; at the same time, the staff or employees will work on shifts. The company will operate 24/7 through the year except for public holidays.
   b. Supply of food products and other items to Food Safe Ltd
   The Supplier will bring a supply of potatoes, meat, and other food items needed at the hotel two days before the day of use. The products will be store properly awaiting usage, and the Cooks will use the food stoke based on Last-in, first-out basis.
   c. Distribution of Food to customers and clients
   All food services will take place at the hotel or Food Safe Ltd location. The company will employ services of food delivery companies to transport orders to specific clients’ locations, and the clients will pay the food delivery companies.
   d. Personnel
   Food Safe Ltd will employ workers approximately the number of customers. During festivals and events, more service workers and cooks will be employed. The number of workers will fluctuate in every season. The average number of employees at Food Safe Ltd will remain at a minimum of 35 staff and servicemen.
   Staff Salary Per Month Number of Staff Total
   General Manager $80,000 1 $80,000
   Managers $60,000 4 $240,000
   Cooks $40,000 10 $400,000
   Service Personnel $30,000 5 $150,000
   Security $40,000 3 $120,000
   Cashiers $30,000 5 $150,000
   Technicians $30,000 1 $30,000
   Solicitor $30,000 1 $30,000
   Cleaners $20,000 5 $100,000
   Total 30 $1,300,000

e. Management Operation
The general manager will be the highest organ in the Company. In addition, the Company will hire other managers, including financial manager, human resource manager, marketing manager, and operation manager. Other workers, including cooks, cashiers, security personnel, cleaners, solicitor, and the technician will work under their departments supervised by managers.
f. Legal Environment
The company will hire a Solicitor to deal with legal matters, including registration of the company, licensing, and customer-related issues. The legal representative will also work close the human resource to deal with employees’ salary bargain, hiring process, and labor union matters.
g. Credit Policy
The company will authorize the use of payment machines and accept Master Card, Visa card, Jazz cash, and other electronic payment methods accepted in New South Wales.
h. Organization Structure
The organization structure will include the owners at the top, the general manager, and other managers. Other workers at the lowest point of the pyramid include Cooks, security, cashier, solicitor, and cleaners. The general manager will head the Food Safe Ltd and supervise other managers. The financial manager will supervise the ordering and purchase of food items and ensure the safety of orders. He will also supervise the cashiers and ensure safe custody of all proceeds and cash. The operation manager will work closely with all staff and other managers to ensure the day-to-day activities go as planned, including preparing quality food and proper service delivery to clients. The human resource manager will work closely with the solicitor and labour union to ensure the hiring process is free and fair. The human resource manager will also provide job guidelines and ensure the staffs are aware of the company goals and objectives. The marketing manager will close with other staff and managers to ensure the company is adequately marketed at all media channels. He will ensure the retention of customers and potential customers are welcomed at the premises. He will use varied marketing strategies to increase the business proceeds.

9. Financial plan
   The financial plan section will reflect on the income statement and the balance sheet of Food Safe Ltd. The profit and loss statement or income statement will forecast revenue or proceeds from food sales and the cost of sales. At the same time, we will include promotion expenses and purchasing costs as the cost of production to find the gross profit. We will deduct the monthly salary or year salary as projected in the plan and other expenses such as rental expenses, legal fees, and maintenance costs to arrive at the net profit. The net profit will link us to the balance sheet because the net profit is the owner of the Food Safe Ltd business is entitled to, and it will be taken as equity by the business owner. The income statement also tells us how much profit we will get by year-end and help us to examine whether the business is feasible. It will also identify the areas of improvement, such as suggesting reducing the staff because the company is operating on a seasonal basis. It will be true to have the number of staff fluctuating. For example, we can reduce the number of staff in low seasons and increase the number of staff in high seasons.
   The Balance Sheet will present the fundamental accounting equation that states that Assets are equal to liabilities plus equity. We already have our liability equal to the retained profit from the net income side. We will have the food products in the store treated as inventories and all the tables, chairs, electronics, and machines treated as plants and equipment in the Balance Sheet. And we can have some cash at the bank from the previous year as a start-up and then balance the Balance Sheet with Liabilities.
   a. Profit and Loss Statement (Projected) on the higher side
   As Year Ends 2021
   Items Monthly Year End 2021
   Food Service Revenue $5,335,000(Higher) $64,020,000
   Less Purchases $500 $6,000
   Less Promotion Cost $17,640 $211,680
   Gross Profit $63,802,320
   Less Salary Expenses $1,300,000 $15,600,000
   Less Legal Fees $100 $1,200
   Less Rent Expenses $3000 $36,000
   Less Maintenance and other Expenses $5000 $60,000
   Net Profit $48,105,120

b. Profit and Loss Statement (Projected) on the lower side
As Year Ends 2021
Items Monthly Year End 2021
Food Service Revenue $2,275,000(Lower) 27,300,000
Less Purchases $500 $6,000
Less Promotion Cost $17,640 $211,680
Gross Profit $27,082,320
Less Salary Expenses $1,300,000 $15,600,000
Less Legal Fees $100 $1,200
Less Rent Expenses $3000 $36,000
Less Maintenance and other Expenses $5000 $60,000

Net Profit $11,385,120

Analysis of the profit and loss statement indicates the lower season and the higher season will still profit the business; the higher season brings $48,105,120, and the lower season brings $11,385,120. That is an accurate indication that the company is feasible.

c. Balance Sheet (Projected) higher Side
As year Ends 2021
Assets Amount Liabilities Amount
Plant and Equipment $5,000,000 Retained earnings $48,105,120
Inventories $3,000,000
Cash at Bank $48,105,120

                      liabilities $8,000,000


           Total    $56,105,120                   Total    $56,105,120

d. Balance Sheet (Projected) Lower Side
As year Ends 2021
Assets Amount Liabilities Amount
Plant and Equipment $ 5,000,000 Retained earnings $11,385,120
Inventories $3,000,000
Cash at Bank $11,385,120

                      liabilities 8,000,000


           Total    $19,385,120                   Total    $19,385,120

10. References
    AIPT. (2020). Australian Eating Habits & Statistics. Retrieved July 21, 2021, from www.aipt.edu.au: https://www.aipt.edu.au/articles/2020/06/australian-eating-habits-statistics
    Altohartley.com. (2021). Characteristics of the Perfect French Fry. Retrieved July 22, 2021, from altohartley.com: https://altohartley.com/characteristics-of-the-perfect-french-fry/
    Ausveg. (2018). Australian vegetable production statistics. Retrieved July 21, 2021, from ausveg.com.au: https://ausveg.com.au/resources/economics-statistics/australian-vegetable-production-statistics/
    Futureofworking.com. (2021). 8 Advantages and Disadvantages of Fast Food. Retrieved July 22, 2021, from futureofworking.com: https://futureofworking.com/8-advantages-and-disadvantages-of-fast-food/
    Gladstone, N. (2018). The price of your pizza, pad Thai or butter chicken depends on your postcode. Retrieved July 22, 2021, from www.smh.com.au: https://www.smh.com.au/national/nsw/the-price-of-your-pizza-pad-thai-or-butter-chicken-depends-on-your-postcode-20180211-h0vw1w.html
    Safefood.qld.gov.au. (2021). Spotlight on Australia’s Red Meat Industry. Retrieved July 22, 2021, from safefood.qld.gov.au: https://www.safefood.qld.gov.au/newsroom/spotlight-on-australias-red-meat-industry/
    Tripadvisor. (2021). New South Wales Hotels. Retrieved July 22, 2021, from www.tripadvisor.com: https://www.tripadvisor.com/Hotels-g255058-New_South_Wales-Hotels.html
    Worldpopulationreview.com. (2021). Sydney Population 2021. Retrieved July 21, 2021, from worldpopulationreview.com: https://worldpopulationreview.com/world-cities/sydney-population