Question: Prepare a Business Plan for Food Service Business
Food Safe Ltd Business Plan
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.
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..
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
Promotion techniques Total Per Month
Television Channel $6,000
Radio Channel $3,600
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
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
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.
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
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
Cash at Bank $11,385,120
liabilities 8,000,000 Total $19,385,120 Total $19,385,120