Business Plan

AuroraPatrick Duggan

Patrick DUGGANDARRYL BENJAMIN

Intrduction to marketing theoryBusiness Proposal

DECEMBER 30, 2014

Executive Summary

Because of a stronger economy and a history of demand among customers 2014’s sales will be hitting a record high. According to the NRA’s annual restaurant forecast, sales are supposed to reach a high of $683.4 Billion, which is a $96.7 Billion increase form 2010. Today 47% of all food dollars spent by consumers is spent at restaurant establishments. This a large increase form 1955 with was about 25%.We anticipate that Aurora will appeal to a broad base of consumers. While we expect to be frequented by all types of diners in both the residential and business community, the concept should be particularly suited to specific demographic and market conditions.

The menu, service style, and ambiance of Aurora has been created to appeal primarily to adventurous diners while also appealing heavily to health-conscious diners as well. The market should be inhabited by a moderate population, providing a sufficient customer base of which to draw from. The location for Aurora was selected because of the market similarities that exist between the proposed location and the target market for the concept. The proposed location for Aurora is occupied by mostly casual dining restaurant concepts and few fine dining concepts. Aurora should be considered unique to its competition because of the major fact that it is a dessert bar. We sell cocktails and other alcoholic beverages, as well as appetizers and desserts. We are a Tapas style restaurant. Compared to the other restaurants that are casual dining and fine dining with mostly seafood or bar & grill style concepts.The success of Aurora will be achieved by serving great food, providing friendly service and employing an aggressive marketing plan to build customer traffic.

Management will endeavor to create and maintain a positive, appealing image for the restaurant. This image will be consistently portrayed throughout all marketing channels and sales promotionsAurora will aggressively seek to build a database of our guests. Guests will have an opportunity to be included in the database so they can participate in our promotions such as contests/competitions, email lists, and birthday desserts, to name a few. Aurora will respect our guest privacy by confidentially protecting personal information we collect. Aurora will be using social media such as Facebook, Twitter, and Instagram to reach out to our customers on a personal basis.The Owner, Manager, and Assistant Manager will be responsible for identifying community organizations such as churches, sports teams and other clubs located in the market.

The concept of Aurora lends itself to obtain favorable benefits from strategic business relationships. Our appeal as a moderately priced, casual-theme restaurant positions us as a likely destination for tourists, and customers looking for a romantic meal. In house marketing will be heavily promoted at Aurora. Management will constantly find methods to promote the restaurant to our guests on a daily basis. The Owner and General Manager will be entrusted with the task of generating positive PR for Aurora. Likely solutions for advancing the restaurant’s public image may include the hiring of a public relations consultant or firm as deemed necessary by the Owner. The restaurant will adopt an aggressive advertising strategy.

Aurora 7627 W Courtney Campbell Causeway, Tampa, FL 33607

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Industry Assessment

Restaurant EconomyBecause of a stronger economy and a history of demand among customers 2014’s sales will be hitting a record high. According to the NRA’s annual restaurant forecast, sales are supposed to reach a high of $683.4 Billion, which is a $96.7 Billion increase form 2010. To break everything down we see that eating places which includes table service and quick service restaurants, cafeterias and buffets, and snack and non-alcoholic beverage bars sold $455.9 Billion. Bars and taverns sold $20 Billion. Managed services sold $47.1 Billion. Lodging places sold $34.8 Billion. Retail, vending, recreation, and mobile sold $66.4 Billion. Non-commercial restaurant services sold $56.6 Billion. And Military restaurant services sold $2.5 Billion. So in total all commercial restaurant services sold $624.3 Billion compared to 2013 which was $586.7 billion.

EmploymentAccording to the National Restaurant Association from 2009 the employment rate for restaurant employees, 11.9 million, has increased 1.6 million in 2014 to 13.5 million. It is predicted that by 2024 the employment rate will be up to 14.8 million. This year restaurant owners are focusing on retaining and recruiting employees. There is a large projected job growth for restaurant employees between 2014 and 2024, in Florida there is predicted to be a 15% increase.

Table ServiceThe table service nominal sales growth for 2014 is at 2.6% which is a .3% increase from 2013. The real sales growth is .2% which is only a .1% increase from 2013. Table service operators have looked at their sales and have seen that in family dining 27% are better than 2013, 66% are about the same as 2013, and 7% are down from 2013. In casual dining 37% are better than 2013, 55% are about the same as 2013, and 8% are down from 2013. And in fine dining 38% are better than 2013, 52% are about the same as 2013, and 10% are down from 2013.

The table service profitability in 2014 tells us a different story. In family dining 24% are better than 2013, 43% are about the same as 2013, and 33% are down from 2013. In casual dining 31% are better than 2013, 44% are about the same as 2013, and 25% are down from 2013. And in fine dining 32% are better than 2013, 51% are about the same as 2013, and 17% are down from 2013, According to the National Restaurant Association. This shows that aurora has a good chance of success due to the fact that about 2/3 of casual dining restaurants are staying the same or doing better than last year.

In 2014 table service operators expect legislative & regulatory issues to pose a problem. Items such as healthcare is now at 25% for family dining, 22% for casual dining, and 16% for fine dining. While profitability is only at 2% for family dining, 4% for casual dining, and 3% for fine dining.

Limited ServiceAccording to the National Restaurant Association in 2014 the nominal sales growth for limited service restaurants is 4%, for snack and non-alcoholic beverage bars is 5%, and for cafeterias, grill-buffets, and buffets is 2.5%. While the real sales growth for limited service restaurants is 2.1%, for snack and non-alcoholic beverage bars is 2.7%, and for cafeterias, grill-buffets, and buffets is 0.1%. The limited service sales in 2014 for quick service restaurants is 29% better than 2013, 62% about the same as 2013, and 9% are down from 2013. While fast casual restaurants are 55% better than 2013, 40% are about the same as


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2013, and 5% are down from 2013. Limited service profitability in 2014 for quick service restaurants is 22% better than 2013, 38% are about the same as 2013, and 40% are down from 2013. While fast casual dining is 50% better than 2013, 34% are about the same as 2013, and 16% are down from 2013.

In 2014 limited service restaurants expect legislative & regulatory issues to pose a problem. For example the health care reform for quick service restaurants is at 42% and for fast casual it is at 9%.

Consumer TrendsToday 47% of all food dollars spent by consumers is spent at restaurant establishments. This a large increase form 1955 with was about 25%. This tells us that more and more customers are choosing to eat out rather than in.

Smartphones are a huge trend being used by consumers today. According to the National Restaurant Association 67% of consumers say that they would use their smartphone to lookup locations and directions, 52% would use it to order takeout or delivery, 50% would use it for rewards or special deals, 46% would use it to make a reservation, 42% would use it to look up nutrition information, and 24% would use it to pay for a meal. This information is beneficial to Aurora because we will be using special deals and reward programs that work with smart phones. We will also have all of our nutritional information on our website.

Restaurant TrendsA lot of restaurants are starting to use more technology. Restaurants that would use customer-facing technology would be 41% or family dining, 50% casual dining, 51% fine dining, 43% quick service, and 57% fast casual. Restaurants that would use Front-of-the-house technology would be 28% of family dining, 35% casual dining, 23% fine dining, 39% quick service, and 47% fast casual. Restaurants that would use back-of-the-house technology would be 24% of family dining, 30% casual dining, 19% fine dining, 33% quick service, and 38% fast casual.

Social media has been around for some time and is a great place to connect to your customers. According to the National Restaurant Association family dining restaurants are 13% active on social media, 6% are somewhat active, and 19% are not active at all. Casual dining restaurants are 36% active on social media, 58% are somewhat active, and 6% are not active at all. Fine dining restaurants are 35% active on social media, 59% are somewhat active, and 6% are not active at all. Quick service restaurants are 31% active on social media, 52% are somewhat active, and 16% are not active at all. Lastly, fast casual restaurants are 40% active on social media, 49% are somewhat active, and 11% are not active at all. Aurora plans to be active on social media platforms where we will post events and pictures to encourage customers to come in.

Food and Menu TrendsFarm to table is a new trend that is very hot. According to the National Restaurant Association 72% percent of customers in family dining, 73% in casual dining, 91% in fine dining, 50% in quick service, and 70% in fast-casual say that they are more interested in locally sourced items. 81% of all adults take notice of more healthy options available compared to two years ago. About 72% of adults say that they are more likely to visit a restaurant that offers healthy options.


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The top 5 menu trends in table service restaurants in 2014 are locally-sourced meat and seafood, locally-grown produce, environmental sustainability, healthful kids’ meals, and gluten-free cuisine. In quick service restaurants the top 5 menu trends of 2014 are gluten-free items, healthful kids’ meals, spicy items, fruit/vegetable sides in kids’ meals, and locally-sourced produce.

Target Market

We anticipate that Aurora will appeal to a broad base of consumers. While we expect to be frequented by all types of diners in both the residential and business community, the concept should be particularly suited to specific demographic and market conditions. The location selected for Aurora should contain characteristics similar to the targeted market for the restaurant.

The menu, service style and ambiance of Aurora has been created to appeal primarily to adventurous diners while also appealing heavily to health-conscious diners as well. The concept should especially attract middle income diners with a blend of single and family households.

The market should be inhabited by a moderate population, providing a sufficient customer base of which to draw from. The immediate surrounding area should have a predominance of single family housing. Preferably, the area should include a moderate industrial market. The concept depends on the general business community. Dinner traffic will be directly affected by the size of the business community.

Preferable demographic and market characteristics for Aurora have been identified and summarized in the following table.

Market Characteristic PreferencePopulation – City 347,645Head of household age 34-40Ethnicity (greatest to least) White, African American, HispanicHousehold income Majority income is between $50,000-$75,000Primary diner trait AdventurousSecondary diner trait health-consciousMajor Industry base ConstructionBusinesses – 1 mile radius Shopping facilities, Restaurants, hotelsBusinesses – 3 mile radius Hotels, RestaurantsAlcoholic Beverage Service No restrictions


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Location Analysis

The location for Aurora was selected because of the market similarities that exist between the proposed location and the target market for the concept. The city of Tampa Florida has a population of 352,957 according to the U.S. Census Report Leading industry segments include trade/transportation/utilities, professional and business service, education and health service, leisure and hospitality, and government. Transportation brings in lots of tourists coming down to enjoy the sunny weather and the beaches as well as the theme parks. A lot of major businesses are looking to settle in Tampa Florida as their regional headquarters. Tourism is a major part of the local economy. The tourist market in Tampa Florida brings 13.9 million visitors annually, contributing $4.4 billion to the local economy which is a 15.6% increase from 2012. The industry provides approximately 65,028 jobs making it the leading job provider for the community. Aurora should benefit handsomely from the tourist trade due to the unique concept intended to attract visitors.

The residential population in the immediate area (within a one mile radius) is comprised of a mixture of single family and multi-family housing. Key housing developments that are considered vital to the success of Aurora include Post Rocky point Apartments, Chase Suite Hotel, and Sailport Waterfront suites. The average household income in the immediate area is $65,000-$70,000

Surrounding businesses include Bahama Breeze, Hogan’s Beach, Chart House, and the Rusty Pelican of Tampa. The employment population within a one mile radius is reported to be 17,000. The number of businesses in the area is 197,790. 50,465 of which are office space or industrial.

The following chart shows the market characteristics for the selected site.Demographic & Business Characteristics

1 mile

Residential Population 1,590# of Households 859Ethnicity – Hispanic 4.2%Ethnicity – African-American 5.6%Ethnicity – White 85.6%Ethnicity – Asian 1.1%Ethnicity – Other 3.5%Household income $63,885Total # of businesses 20Office Bldg/Industrial Parks 10

Primary Residential Clusters # of Dwellings

Single or Multi-family

Proximity to restaurant

Post rocky point apartments

200 Single-family [½ mile]


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Primary Business Centers

# of Workers Type

Proximity to restaurant

West Florida division hospital

200 Hospital ½ mile

URS Cooperation 450 industrial 1/4 mileShriners Hospital for Children

425 Hospital 1 mile

Competitive Analysis

The proposed location for Aurora is occupied by mostly casual dining restaurant concepts and few fine dining concepts. The majority of existing restaurants are comprised predominantly of casual theme concepts Restaurants that could be considered in direct competition with our concept include The Rusty Pelican of Tampa.

The following chart displays restaurants within approximately a one mile range. It includes all restaurants of significance including both limited service and full service establishments.

Area Restaurants within a 1 Mile Range

Name Type Brkfst;Lunch;Dinn Direct Competition

Bahama Breeze Casual service L,D NoThe Rusty Pelican of Tampa

Fine Dining D No

Hogan’s Beach Casual Full Service L,D NoChart House [Fine Dining] D NoCrawdaddy’s Chain L,D NoWhiskey Joes Bar & Grill

Casual Serivce L,D No

Restaurants that might be considered direct competition for our target market customers are listed in the next table. It is important to note that the restaurants listed are not necessarily similar concepts to Aurora. However, we feel that we are competing for a similar customer base.


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Name Theme B; L; D Check Average Proximity

Crawdaddy’s Casual service; chain restaurant L,D N/A 1 Mile

Hogan’s Beach Casual bar style restaurant L,D

Lunch - $10-$15Dinner - $10-$15

1 Mile

Bahama Breeze

Casual Theme table service featuring Caribbean fare and cocktails

L,D

Lunch - $10-$15 Dinner - $10-$15

½ Mile

The Rusty Pelican of Tampa Fine dining; American D

Lunch - $12-$18 Dinner - $25-$30

1 Mile

Chart House Fine dining seafood restaurant D

Lunch-$18-$25Dinner-$30-$50

1 Mile

Whiskey Joes Bar & Grill Casual dining L,D N/A 2 Miles

Aurora should be considered unique to its competition because of the major fact that it is a dessert bar. We sell cocktails and other alcoholic beverages, as well as appetizers and desserts. We are a Tapas style restaurant. Compared to the other restaurants that are casual dining and fine dining with mostly seafood or bar & grill style concepts.

Marketing Strategy Overview

The success of Aurora will be achieved by serving great food, providing friendly service and employing an aggressive marketing plan to build customer traffic. We offer playful exploration of a diverse tapas menu which will feature both appetizers and desserts. We will feature seasonal and local ingredients with fresh herbs from our rooftop garden. The drink selection is equally versatile with upscale cocktail so and tasteful beers and wines. Intriguing today’s market requires more than just good food and service to make a restaurant successful. At Aurora we will constantly strive to enthusiastically win more customers by being proactive rather than reactive in our marketing efforts.

Management will endeavor to create and maintain a positive, appealing image for the restaurant. This image will be consistently portrayed throughout all marketing channels and sales promotions. The following exemplifies some of the tactics we will use to drive more sales.


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Customer Database

Aurora will aggressively seek to build a database of our guests. Guests will have an opportunity to be included in the database so they can participate in our promotions such as contests/competitions, email lists, and birthday desserts, to name a few. The database will be gathered and maintained on Toast POS. We will gather names in a variety of manners including guest sign-up flier in check book, customer review survey online, birthday sign up, and gift card information.

Aurora will respect our guest privacy by confidentially protecting personal information we collect. See Appendices for our customer Privacy Policy:

Thank you for choosing to enjoy your next culinary experience at Aurora! The privacy of our customers is of great importance to us, and we take many precautions to make sure that your information is protected.

We want all of our customers to feel safe and secure when giving out your personal information to our staff, and we have outlined our company privacy policy below in order to ensure that you know exactly how and where your information will be applied.

Collection and Use of Personal InformationAurora collects personal information like names, addresses, email addresses, Birthdays, etc. that are voluntarily submitted by our customers. The information you provide is used to make you aware of any promotions that we are doing or if you have a birthday dessert waiting for you. Aurora will not use your information for any purposes outside of those that you request.

Distribution of Personal InformationWe will disclose the information we maintain only when required by law, for example, in response to a compromised debit/credit card. We also may disclose such information in response to a law enforcement agency's request.

The owner and managers of Aurora who have access to personal information are required to protect this information in a manner that is consistent with this privacy policy. Only authorized employees who have agreed to keep all information confidential and secure will be given access to any personal information.

Security of your Personal InformationAurora is committed to protecting the security of your personal information. We use a variety of security procedures to help protect your personal information from unauthorized access, use, or disclosure. For example, we store the personal information you provide on a computer system with limited access which is located in a controlled facility.

Customer Version

At Aurora we want our customers to feel safe when providing us their personal information. You will be happy to know that any and all information that we collect is only viewed and used by the owner and Aurora 7627 W Courtney Campbell Causeway, Tampa, FL 33607

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managers of Aurora who have agreed to our privacy policy. The information provided will be used for contacting you with promotions that we will be holding and if you have a birthday dessert waiting for your next visit. All of your personal information is also kept on one computer in a secured facility in which only authorized people can get into it. We thank you for choosing Aurora for your next culinary experience and if you would like to see our detailed customer privacy policy please ask your server or go to www.auroratampa.com.

Social Media Campaign

Aurora will be using social media such as Facebook, Twitter, and Instagram to reach out to our customers on a personal basis. We will only be using the three social media websites because, as stated in the new rules of marketing and PR “for most people and organizations, it’s better to be active on a few social networking sites instead of creating profiles on dozens of them and being too busy to spend much time in any one”. These sites will advertise any promotions that we will have in the restaurant as well as sharing pictures of our delicious food and fun times with customers. There will be table tents at each table which will have a QR code on them for customers to scan and go to our events page of our website.

We will set up a mailing list which will include birthday and anniversary dates so that when the occasion comes up we will send a personal card with a coupon for their next visit for a free dessert or a percent off of your meal. We will seek the use of the USPS to assist us in the implementation of the campaign.

Community/Charity Involvement

The Owner, Manager, and Assistant Manager will be responsible for identifying community organizations such as churches, sports teams and other clubs located in the market. Aurora will have an active role in the promotion of these organizations through participation, donations and sponsorship. Representatives of Aurora will be available from time to time to take active leadership roles when feasible.

Business Relationships

The concept of Aurora lends itself to obtain favorable benefits from strategic business relationships. Our appeal as a moderately priced, casual-theme restaurant positions us as a likely destination for tourists, and customers looking for a romantic meal. Possible relationships include an affiliation with URS Industrial Group and the Westin Tampa Hotel. The Owner and General Manager will actively pursue business relationships that will be beneficial to Aurora.

4 Walls Marketing

In house marketing will be heavily promoted at Aurora. Management will constantly find methods to promote the restaurant to our guests on a daily basis. Our staff will be trained for and encouraged to promote suggestive selling techniques. Upselling to our customers will be emphasized. We will also use table tents, check book inserts, and table touching to advertise special events and to further promote


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Aurora. The owner and fellow chefs will be trying out for competitions on the food network to get experience and recognition but to also advertise for the restaurant, any and all of these episodes will be played for an extended period of time in the restaurant.

Public Relations

The Owner and General Manager will be entrusted with the task of generating positive PR for Aurora. Likely solutions for advancing the restaurant’s public image may include the hiring of a public relations consultant or firm as deemed necessary by the Owner. Possible publicity opportunities include news articles form competitions that we will hold and charity events that we organize. Cooking demos and even daily holidays will be utilized for special events which can bring customers looking for an excuse to go out and enjoy a nice meal in which we can provide. Special attention will be given to connect our community and charity involvement with PR opportunities.

Advertising

The restaurant will adopt an aggressive advertising strategy. Outdoor signage for Aurora will be using a large sign above the door which says aurora in white but with a backlight of different colors, we will have street signage for walking patrons, and limited paper advertisements in the windows.Aurora will utilize traditional methods of advertising. Management’s viewpoint on advertising is we do not want to clutter the windows, walls, or outside of the restaurant with paper advertisements because it takes away from the clean and neat concept of aurora and no one will read all of them. As explained previously the owner and chefs will be participating in food network competitions and performing demos on local TV stations which will be shown on the TV in the restaurant. Other forms of advertisement will be sidewalk art that advertises for the restaurant, social media pages, and slots in travel guides for tourists.

Citations

1. Even, William E. "The Effect of the Tipped Minimum Wage on Employees in the U.S. Restaurant Industry." Southern Economic Journal 80.3 (2014): 633-55. JSTOR. Web. 20 Nov. 2014. <http://www.jstor.org/stable/10.2307/23809644?ref=no-x-route:ccce9000123ced95311e1c85dd96666e>.

2. http://quickfacts.census.gov/qfd/states/12/1271000.html3. http://www.city-data.com/city/Florida3.html4. http://yourbusiness.azcentral.com/restaurant-public-relations-ideas-3239.html


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http://www.city-data.com/city/Florida3.html

http://quickfacts.census.gov/qfd/states/12/1271000.html

Business Plan

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Transcript of Business Plan