Cozy Corner Business Proposal Idea

Business Proposal Idea

Jun 11, 2019 at Other Free Essays

Situation Analysis

Company Analysis

The current business plan envisions a new restaurant, Cozy Corner. The proposed restaurant is a legal entity (with its own separate property recorded on a separate balance sheet), which may acquire and exercise property and personal non-property rights, incur obligations, sue and be sued. Cosy Corner is a medium-sized company.

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Cozy Corner will offer not only great food but also a great atmosphere. A distinctive feature of the institution is that will offer its customers the freshest seafood – fish, live lobsters, crabs, and snails delivered here by plane directly from France, Canada, Tunisia, Morocco, and Kamchatka. This restaurant will recruit only experienced staff and conduct job training before the employee can begin actual work. The preparation time will depend on the degree to which the worker is organized and trained. For example, the waiter should have the work experience of at least one year. In addition, the prior training lasts for three months; only then the new employee can get to work. The company's ideology will be Motion, Success, and Prosperity. We intend to be the best among equals.

Company Resources

Food industry is one of the main services today. The main activity of catering is the preparation and delivery of products, food, beverages, recreation and entertainment. Assortment policy claims one of the most important places in the marketing business. Assortment policy affects the marketing of products, and its effectiveness depends on the financial performance of the company and the company's image in the market. Cozy Corner will serve a menu of wines, for example, Rosso di Montalchino (red wine, Italy) or Villa Antinori (white wine, Italy).

Also, there will be many desserts (homemade strawberry ice cream, fruit salad "Soft", cupcakes, a variety of cakes), cocktails (both alcoholic and non-alcoholic), a large selection of coffee drinks, from coffee Gless to American black coffee. The restaurant will offer a great selection of tea as well. In addition to the usual black and green tea, the restaurant will offer more excusive options, like white tea.

Company Human Resources

Cozy Corner is going to employ nearly 30 employees. Below are listed the most important positions in the restaurant.

Restaurant Administrator:

  • organizes the everyday work of the restaurant;
  • is fully responsible for the restaurant’s condition and the state of workforce;
  • represents the company in other institutions and organizations;
  • hires and dismisses employees;
  • provides economic planning;
  • enters into legal contracts;
  • searches for suppliers;
  • leads marketing policy;
  • uses incentives and imposes penalties on employees;
  • takes part in the business planning process;
  • develops measures to reduce costs and increase profitability, improve the use of production assets, identify and use reserves of the enterprise;
  • creates and oversees schedules;
  • purchases supplies necessary.

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  • controls the manufacturing processes in the kitchen;
  • controls the use of equipment and ensures its regular maintenance;
  • promulgates the rational use of labor;
  • coordinates the operations associated with food preparation and presentation of meals;
  • develops new recipes and dishes;
  • prepares of applications for products needed;
  • controls quality of raw material supplied to the restaurant;
  • controls compliance cooking techniques and the implementation schedule.


  • monitors certain areas of the kitchen and ensures consistency with other areas;
  • cooks and prepares meals;
  • controls the quality and healthiness of the site.


  • performs accounting and reporting;
  • does necessary calculations and prepares documentation;
  • ensures accuracy and timeliness of settlements with customers, suppliers, and authorities of tax control;
  • sends final budget reports to the tax authorities;
  • takes an active part in the planning of tax and price policies of the enterprise;
  • performs financial operations with customers and suppliers as relates to the implementation of the finished product and the procurement of raw materials.

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Hall Administrator:

  • oversees the equipment and personnel assigned to him;
  • provides inventory control of material assets;
  • schedules the work of staff;
  • interacts with all internal services necessary to operate the restaurant.


  • lays the table in accordance with the standards;
  • controls the state of cleanliness of instruments, utensils, and napkins;
  • keeps track of the menu, the main and seasonal dishes

Customer Analysis

Cozy Corner’s services will target diverse audiences, for example, college students and business executives. This is accomplished with affordable prices, combined with quality products. There will be no age limits, as is the case in many other places. The potential customer of the restaurant is between the ages of 29 and 45. Thus, the power of buyers is very strong because there are many factors due to which customers (target audience) may have no costs when changing the restaurant. The power of buyers is manifested in a significant impact on the company, for example, by changing the sensitivity of buyers to price changes, respectively, to reducing the demand for the company's products or even abandoning it; or vice versa - increasing loyalty to a product company.

Macro Environment Analysis

To determine the behavioral strategy of the organization and carry out this strategy into practice, management should have in-depth understanding of the internal environment of the organization, its potential and development trends, as well as the environment and the niche occupied by the organization. The external environment is studied by strategic management in the first place in order to uncover the threats and opportunities that the organization should consider when setting its goals.

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Political Environment

Political factors are quite unpredictable and always pose a threat to the industry. The position of the organization can be complicated due to the new regulations on the sale of alcohol or tobacco products. Cozy Corner will include alcohol in its menu; therefore, political trends are very important for the restaurant. Objectives and methods of economic management of the country are normally the result of the policies of the ruling government. The mood and the alignment of political forces in the society have changed over time. This change resulted in a change of government policy and increased uncertainty. Therefore, each large enough organization, taking strategic decisions, tends to have a clear idea about the programs and objectives of the various political parties, lobbying groups in government, the attitude of the government towards certain sectors and regions of the country, as well as the means of carrying out the policy of the government.

Economic Environment

The sharp wage dynamics in the field of sales is characterized by the growth of the markets in general: there is a strong consumer demand for goods and services. In addition, the economy has changed over time, making a significant contribution to the uncertainty of the environment. That restaurant will succeed which is faster and predicts more accurately the change in the trend towards increasing or declining and showing the necessary flexibility to adapt to the new economic situation. The state of the economic environment involves the analysis of the dynamics of key macroeconomic indicators, the growth rate of gross domestic product, inflation, unemployment, real income, the refinancing rate, the rate of the national currency, and many others.


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Technological Environment

Cozy Corner will have good hardware, fast and high-quality coffee machines, equipped with a computer to calculate the best programs, such as 1C to automate the catering industry. The program fully supports accrual accounting of goods in the places of storage, which allows obtaining information not only on the products quantity but also on the supply levels for each storage location. Each dish can use a few recipes, and so choosing the right recipe is very important at the time of preparation. The work plan technologist or chef will work on a document titled the Menu Plan, which will contain instructions for the production and preparation of food. This program automates and simplifies the food handling process.

Social Environment

Social factor has a direct effect on organizational operations. If the statistics show decrease of potential customers, it may negatively affect the activity of Cozy Corner. Overall, the analysis of the global macro environment of the industry has shown that there are more opportunities than threats.

Micro Environment Analysis

The forces of direct relevance to the firm and its ability to service customers, suppliers, marketing intermediaries, customers, competitors and contact audiences determine the microenvironment. Macromedia is a broader social force of the plan that affects the microenvironment factors of demographic, economic, natural, technical, and cultural nature.

Marketing Mix

Business Proposal Idea


SWOT Analysis
SWOT Analysis Weaknesses (W):
  • Highly qualified management and production personnel
  • Good image of the restaurant
  • Diverse menu
  • Presence of exclusive specialties
  • Growing number of regular corporate clients
  • Orientation of the restaurant largely on customer satisfaction
  • Firmly established reputation for quality products
  • High profit
  • Obsolete equipment
  • Inefficient loading of large industrial buildings
  • Weak organization of marketing information systems in the enterprise
  • Lack of experience in marketing research
  • Significant load on a single specialist
  • High cost of manual labor at the central warehouse
  • Inefficient use of staff
Opportunities (О): Threats (Т):
  • Good opportunities for diversification
  • Reducing the cost of equipment and computer equipment
  • Development of Information Technology
  • Development of interesting ideas and their constant replenishment (creativity of leading specialists)
  • Use of modern automation systems
  • Ability to service additional customer groups
  • Ability to attract investment
  • Expanding the range
  • Fierce competition
  • Changing tastes and needs of customers
  • Unfavorable changes in exchange rates
  • Inflationary processes
  • Unfavorable changes in tax policy

Reducing the cost of computer technology, development of information technology used in a restaurant, and introduction of more sophisticated automation systems will simplify record keeping, improve the speed of service, and help optimize the processes of ordering. Modern automation systems will strengthen the control over the actions of the staff and costs of products. A list of the services provided will improve the accuracy and objectivity of the settlement, which will accelerate the adoption of administrative decisions. The introduction of modern information technologies will also include a professional marketing information system in the enterprise. Servicing additional customer groups, for example, organizing children's parties or inviting famous artists may give the company an advantage over its competitors. At the same time, the presence of exclusive dishes, relatively low prices, a varied menu, and a constant increase in the number of corporate customers will help the restaurant attain competitive edge. Despite possible changes in the tastes and needs of customers, the quality of products should always come first, something that will create opportunities for further growth in the number of visitors to the restaurant. The current focus of the enterprise is heavily oriented towards customer satisfaction, which enhances its competitive advantage. Inefficient warehousing and high level of manual labor may prevent the inclusion of a number of leading restaurants in the leading catering companies. So is it necessary to introduce modern storage technologies and improve the distribution of goods.

Marketing Strategy


Pricing policy is an important element of the control system. It involves not only the determination of the price for goods and services but also the management of prices in different market situations. The pricing system of the organization should be designed in order to determine the most efficient way to make sure the buyer is willing to pay the price and to investigate the possibility of the sale of products at a price that includes a profit. The pricing tactics of Cozy Corner should provide the optimal response to an established and promising group of consumers. When determining the price, analysts draw on an evidence-based selling price structure, which uses a multi-stage approach of forming the selling price. It allows achieving optimal results for the segmentation of the market and the range of market planning services. When developing a method of pricing for Cozy Corner the following key factors are included:

Pricing Factors
Micro factors Macro factors
Sales prices The degree of competition and its effect on prices
The cost structure of direct and indirect The state of demand for the products
General and specific objectives of the organization Dependence on suppliers of raw materials and semi-finished products
Experience pricing Demand structure and its dependence on the price
Degree of scrutiny of market State policy
Reaction of the sales workers  

The following are key points in determining the price policy in Cozy Corner:

  1. The price policy is based on the estimated cost of the minimum possible price of the product, which corresponds to the lowest cost of production.
  2. The price policy is based on the analysis of competitors' prices determined by the average level of prices of food and drinks.
  3. The maximum possible price is set for the dishes of high quality and unique advantages.
  4. The prices determined by demand and market conditions of the product may fluctuate throughout the range from minimum to maximum prices. These prices change in different periods of the life cycle of the product.
  5. Important from the point of view of marketing is to develop the pricing policy.
  6. It is necessary to change prices of service depending on the situation in the market, acquire a certain share of the market, and get the desired amount of profit.



Analysis of the formation range of dishes at the restaurant starts with determining of their properties (width, depth, and richness, stability) to plan menus and parameters (coefficients). Analysis of the latitude range in a restaurant is into the following groups:

  • Appetizers: 3 items;
  • Salads: 11 items;
  • Dips: 3 items;
  • Sides: 3 items;
  • Hot Vegetables: 9 items;
  • Pita and Pies: 5 items;
  • Meat Entrees: 11 items;
  • Platters: 12 items;
  • Sandwiches: 9 items;
  • Desserts and Drinks: 8 items.

Cost Implementation Activities

To open Cozy Corner, the owner needs approximately 200 000$. However, we have counted the expenses that we are going to spend on the advertisement.

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