Bbq by the Bay Business Plan

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Transcript of Bbq by the Bay Business Plan

Page 1: Bbq by the Bay Business Plan

Executive Summary

BBQ BY THE BAY is a catering company that serves the Bay Area market.

Over the past few years there has been enormous growth in the leisure market as functions such as weddings, sporting, fundraising, and celebratory events become more lavish with the use of outside caterers becoming very common.

In addition changes to the workplace environment, such as the closure of canteen facilities, have led to a growth in opportunity for the contract caterers to supply food and refreshments.

Market research has shown that there are major opportunities for the smaller contracts and one-off functions such as weddings, parties, and celebratory functions.

BBQ BY THE BAY will offer catering services to all sectors but will specialize in birthday celebrations, sporting, fundraising and other celebratory events. In a sometimes stagnant market the company plans to occupy a niche in the catering market by offering a unique, new and creative menu with colorful, creative, and unusual food options combined with outstanding service.

Business Objectives

BBQ BY THE BAY catering objectives for the first three years of operation:

To create a service-based company whose primary goal is to offer a unique and creative service and to exceed customer expectations.

To attract and maintain an expanding customer base increasing the number of clients served by 25 % per year through superior service.

To develop enough cash flow to pay all salaries as well as expand the business.

Mission

BBQ BY THE BAY’S mission is to provide the customer with an outstanding and high quality catering service that will exceed our customers’ expectations.

Key to Success

The key to success is to meet and exceed the customer’s needs in terms of quality of food and excellence of service.

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Company Summary

BBQ BY THE BAY which is located in San Jose, California will offer catering to Bay Area communities specializing in serving high quality food and catering for functions of 25 to 300 people. The company will offer a large menu covering a wide range of food from traditional favorites to the exotic.

Company Ownership

BBQ BY THE BAY is a sole proprietorship owned by William Vines

Business Description

BBQ BY THE BAY plans to provide food catering services to a wide range of functions including weddings, sporting, fundraising and celebratory events. The company will provide a diverse and exotic menu that caters to all tastes, requirements and needs.BBQ BY THE BAY plans to open from 9:00am to 5:00pm and guarantees deadlines and will accept cancellations as long as they are with the stipulated conditions.

Example menu, prices and services to be provided by BBQ BY THE BAY include:

BBQ BY THE BAY offers hot, cold, canned and bottled beverages of different varieties.

BBQ BY THE BAY also offers healthy choices with a large selection of salads, including Protein salads, green salads and grilled chicken/salmon salads with additional dressings available.

A variety of Themed buffets are available including Cajun, Tex-Mex, American, Seafood, Beef, Chicken and Pork themes.

A vast collection of Hors D’ oeuvres served both hot and cold.

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Marketing Analysis

The catering market is an $80 billion dollar industry and has witnessed over the past few years enormous growth as functions such as wedding, sporting, fundraising and celebratory events have become more lavish and have relied heavily on outside caterers. In addition, changes within the workplace, such as the closure of canteen facilities, have opened up new markets for contract caterers to supply food and refreshments.

Major contracts are often awarded to large companies with a proven track record for contracts. Contracts such as school dinners, hospital catering, air, rail and ferry travel may be difficult for anyone setting up a business to make inroads into this market. However, there are plenty of opportunities for smaller contracts and the one-off functions such as weddings, parties and celebratory functions.

BBQ BY THE BAY’S market is an interesting one as there are several caterers that offer services that are quite similar to each other in terms of price and menu options. Over the last few years, caterers have done little to update their menu and there is obviously a huge demand for a catering service that provides a creative and innovative approach.

BBQ BY THE BAY will occupy a niche in the catering market by offering a new and exotic menu with colorful, creative, and unusual food options combined with an outstanding service.

Market Segmentation

Contract catering is an increasingly strong market with the sector covering the provision of a wide range of services, from larger businesses contracting out canteen arrangements to providing outside catering services for weddings, parties, etc.

Since 2008, sales in this area have grown by nearly 25% and continue to rise. Low start-up costs coupled with increasing opportunities has led to an influx of businesses offering services in this area.

On the other hand, there are more opportunities for the independent suppliers to access the market. The increase in leisure and social activity across the U.S. has led to a growing market for contract caterers, who are increasingly involved in a wide range of social events which include:

Wedding and all of the food and catering associated with such events, ranging from organizing canapés, full sit down meals, finger buffets and fork buffets.

Corporate hospitality Long-term contracts – such as running staff canteens or regular weekly events

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Social events such as barbecues, firework displays, one-off and celebration parties.

Target Market

BBQ BY THE BAY has two distinct target populations:

Middle class clients. This group of people does not have huge amounts of disposable income, recognizes that it is costly to sponsor a party, and is willing to incur the expenses, but will try to minimize them.

Upper class clients. This group is wiling to spend whatever it takes to throw a good dinner function. Typically, a wealthy one-income family characterizes this group where the wife does not work and typically thoroughly enjoys the planning of these events.

Target Market Segment Strategy

The target market segment strategy can be similar for the two groups with the main difference being different menu offerings with the upper-end menu items being too expensive for the middle class target segment.

Competition Analysis

Competitors are likely to include:

National catering organizations Hotels and other venues with in-house catering services that provide catering for

events such as weddings and corporate hospitality Other small independent contract caterers in the same area

The catering business in the Bay Area is fairly unique. At the low to the middle end of the market, there are four other caterers, all having fairly standard menu offerings. With our more extensive menu we will offer potential clients a larger selection to choose from.

Competition and Buying Patterns

The customers will be largely dependent on the type of events we plan to cater for, so specialization is important and will enable marketing efforts to be focused on potential clients and competition analysis show that the existing caterers are not adequately

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covering markets such as weddings, corporate hospitality, sporting events, fundraising, social club events and parties.

Customers are likely to come from all sectors of the community and include individuals celebrating a particular event, businesses and business support organizations, social clubs and groups. They may be seeking catering for either a one-off event or on a more regular contracted basis.

Strategy and Implementation

The most important marketing tactic for any new business is to carry out extensive market research before making any business decisions. BBQ BY THE BAY is:

Offering the services of a contract caterer in an area where there are enough people living or working who would want to use the service.

An area where there is little competition for the type of services that the company is offering.

The business is able to supply exactly what the customer needs.

The company has already done a thorough research of the marketplace and is already knowledgeable of the local market and is developing a vital network of contacts, a potential client database and aims to be very competitive and maintain an excellent reputation and a high standard of service.

Mail shots, outlining the services offered, will be used to raise the business profile. Follow-up telephone calls will reinforce it and continue to be used as we build a list of potential clients.

BBQ BY THE BAY aims to maintain memberships of trade organizations and adherence to the relevant code of practice, which can be highlighted when tendering for work, reassuring potential clients about the standard of work they can expect.

Advertising is a useful tool to ensure that potential clients are aware of the services offered and the following type of advertising will be used by the company to market the services:

The trade press and publications aimed at target client groups. Specialist press which may be read by potential clients Local media, for example the business pages of the regional newspaper or

specialist supplements, such as wedding planning or lifestyle features, which will raise the profile with potential client groups.

BBQ BY THE BAY will gradually gain market share in the catering market by leveraging its competitive edge through superior attention to detail and innovative meals. BBQ BY THE BAY will leverage areas that have been ignored in this market for some

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time now. This competitive edge coupled with a target advertising campaign and networking will enable BBQ BY THE BAY to gain a significant market share in a short period of time.

Competitive Edge

BBQ BY THE BAY’S competitive edge stems from its attention to serving customers needs and its in extensive menu of traditional and exotic menu items. Strong demand has led to a decrease in the standard of quality and service in the industry, and BBQ BY THE BAY will capitalize on this issue to increase market share.

Operating Planning

The first month will be used to set up the kitchen and prepare the menu and marketing material. The company will ensure that suppliers will be able to deliver equipment and supplies easily and there are no anticipated operational difficulties as Bill is conversant with various aspects of the industry.

Pricing Strategy

Price Level

Maintain price level in all segments at 5-10 % higher than competitors to reinforce the quality image.

Discounts

Offer 5 – 10 % discount for payment in full with the order

SWOT Analysis

Strengths of the Business

Excellent product and quality service that adds to company reputation Good management skills

Weaknesses of the Business

New Player, which means credibility takes time to build up which may affect initial sales

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Lack of systems: Company needs to develop systemized operational and sales techniques.

Opportunities in the Marketplace

A potentially enormous market for the company to tap into Growing market segments such as workplace and lavish parties Unmet strong demand for new and creative menus

Threats in the Marketplace

Increasing supplier prices which could result in reduced profitability Other competitors entering the market with a similar business model

Financial Plan

Sales and cost projections:

SalesAccording to the market research and plan, the projected sales show sales start slowly and the show a gradual increase in sales as the company becomes more established.The following table shows the initial projected sales.

Market segment SalesWeddings 2500Corporate 4000Events such as sporting, fundraising, social club 2000Parties 2500Other 3000TOTAL 14000

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Expenditure

Start up expenses:

STARTUP EXPENSES         EQUIPMENT 15455  KITCHEN MEMBERSHIP FEE 1500 PER YEARBUSINESS LICENSE 150  HEALTH PERMIT 800  FOOD CERTIFICATE COURSE 110  BUSINESS CARDS 50  FLIERS 150  UNIFORM(SHIRTS,PANTS,APRONS) 350  WEB DESIGN 1500  MISC. EXPENSES 3000  INSURANCE 1000 PER YEAR     TOTAL 24,565       BILLED TO EACH CUSTOMER    

INSURANCE CERTIFICATE 80PER ADDRESS

KITCHEN HOURLY RATE 20  TRAVEL TIME PER HOUR 25 1 HOUR MIN.

BBQ BY THE BAY - General Catering Information

Office Hours: 9:00 a.m. to 5:00 p.m. Monday through Friday or by appointment.

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At the time of booking, we will need the following information: Date of event Beginning, and ending time of the event Location of the event Name/Address/Phone Number / Fax Number of the representative for the group. Number of guests (guarantee) Need final minimum guarantee 72 business hours prior to event. Menu request in detail.

If we are able to book the event, any event booked less than 72 hours in advance will incur a $100 or 10% surcharge over regular pricing (whichever amount is greater) this is due to additional costs of executing last minute events.Guarantee Deadlines:

Required 3 business days prior to your event (72+ business hours) in writing or by telephone. If no adjusted guarantee is received, we will refer to the last guarantee on the catering

contract or the actual attendance whichever is greater - as the final guarantee and will bill you accordingly.

We will perform a headcount and plate count to determine your final attendance and an adjusted contract will be forwarded to you if you exceed your guarantee number and this count is considered final.

Cancellations:Cancellations will be accepted without charge 3 business days (72 hours) in advance. A notice of less than 3 business days will incur a minimum $100 charge or charges based on actual costs.Deposit Requirements:Customers will be required to make a 50% deposit at the time of booking the function with the final balance due prior to start of your event. Adjustments to the final amount due to increases in attendance or costs will be due upon receipt. Finance charges may apply if payment is not received in a timely manner.Linens / China / Equipment / Floral / Rental / Etc:Additional charges may be required for equipment, linens, china, and other items used for your event.

Skirting: $15 per table Tablecloths: $18 each (includes napkins) Special Order & Colored linens: Market Price with associated rental costs.

Labor Charges for Banquet Staff: $25 per hour ($100 minimum - for four hours), each additional hour is $25. The total time

would include setup and breakdown labor for your event. Carver - $25.00 per hour (with a 3 hour minimum $75).

Overtime Labor is charged at $50.00 per half-hour over scheduled event time

BBQ BY THE BAY - Event Checklist

Decide on event date, time and location. Check availability of desired location and make reservations.

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Can food be cooked on site using smoker/grill? Rain location, if event is outdoors. What is your budget for food? Remember to include sales tax (off campus groups only)

and service charges Will your party be formal or informal? Determine what type of service best suits your needs. Have you obtained permission for wine service, if necessary? Who is responsible for decorations before and after the event? Is there a head table? Who will direct special guest to the head table? Have you considered special needs? (podium, microphone, lights,) Do you need a special table for awards or gifts? Do you need tablecloths and skirting? Are their place cards or reserved seating? Who will put out place cards and when? Programs? Will the entertainers be invited to eat? Before or after the performance? How much time have you allowed for different services - Meal? Program? Awards? Are your guests familiar with location? Do you need a map or directions? Where will

guests park? Will the guests be greeted? Where and by whom? Have you arranged for coat racks, if needed? Where are the restrooms? Have you confirmed table arrangements and final count with BBQ BY THE BAY? Who is in charge of arrangements for the event? Alternate in case of emergency? Who is responsible for payment of bill? When is payment required?