Restaurant/Catering Services Business Plan

Catering Services Business Plan

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Business Description

Entrepreneurship would mean so many things from a process whereby one identifies an opportunity and pursues it without or with resources when one decides to plunge into the market. It may also comprise a dynamic process in which one identifies how to develop new products and services in order to create something new expecting reward in terms of monetary benefits or personal satisfaction, as well as independence (Mason & Stark, 2004).

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All these explanations are similar in a way, since new products and services are introduced to the market by certain individuals. A business plan comprises a description part which tells more about a product or service. The marketing strategies are explained as well as the management and organization plans are provided. Last but not least, there is the operations part which tells more of how the business will be run on a daily basis.

A restaurant business would thrive well since it revolves around food which is one of the basic needs. The hard economic times have caused a shift from non-essential products and services to essential ones (Lynn, 2009). The sustainability of the business is pegged on the diversification available in the trade in terms of services and dishes served. In the food industry, value for money is greatly emphasized by customers (Weinberg, 2007). The goal of the business would be to cater for specific food needs of the customers as the business reaps revenue and expands creating more employment opportunities. The fact that nowadays customers are health-conscious creates a gap which needs to be filled by providers of catering services.

The business will be referred to as a quality restaurant and will be located adjacent to the main commuter railway station. The essence of the location is to capture a large pool of customers from different parts of the city who use the train services. The name is not aligned with any specific type of food to avoid creating a notion that the restaurant only deals with a particular type of food. The name of the catering business creates the first impression (Vivaldo, 2010); thus, it should be attractive and all-inclusive. The restaurant will be solely owned, hence a sole proprietorship type of business. The pool of employees will comprise fifteen members including a driver. The restaurant will be responsible for servicing people with a variety of delicacies and will from time to time engage in catering services, hence the need for the driver. The chefs will have specific competencies so as to enable the restaurant to cater for the needs of all customers. Besides serving a wide variety of dishes, a shed will be built outside the restaurant to sell uniquely cooked hamburgers to attract customers who need a take-home bite.


The business will target customers across range, meaning it will cater for adults and children not forgetting the many races in the city. There is a need to cater for children, young people, adults, and the elderly in order to capture a wide base of clientele (Smalibone, 1990). Men and women have varying tastes and preferences when it comes to food, therefore, the catering business should cater for both genders for it to have a stable client base (Smalibone, 1990).

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Being an important component, food is widely taken seriously, and the issue of quantity and quality should be considered. The mode of payment should be strictly cash-based, and the customers who will need a quick grab will be sorted out by the outside shed. The different races in the city will call for a unique way of meeting their needs. The chefs to be employed will have the knowledge of many recipes in order to satisfy the needs of most customers. There is a need for having a variety of recipes for different ethnicities, for instance, French, Italian, German, Asian, and so on. The target market comprises upper-class clients, as middle-class clients are considered to have less disposable income compared to their upper-class counterparts (Smalibone, 1990). The reliability of customers is achieved by interacting with them and establishing a good working environment. The restaurant is thereafter assured of more business dealings and repeat orders (Weinberg, 2007).

Market Share

The restaurant will be targeting to capture a substantial share in the market, especially around the commuter railway station. Competition analysis will be carried out to find out what percentage is realistic to capture in the initial stages. Though the business is aimed at servicing mostly commuters, it is not restricted to that because catering will be rolled out as the business develops. People living around the area will also gain from the restaurant, since it will be based on quality. Thus, the brand will already be a strong one. The targeted initial market share for the restaurant is 10% in the commuter station area. The overall market share will be dismal but will grow as the business expands.


Conducting a competitor’s survey in order to keep afloat and expand the business is absolutely critical. This is done by gathering information from the established caterers and working downwards to the least established ones in the region the business intends to operate. By posing as a customer in need of services from the competitors, one can easily gather the information. The information will enable the business to know the food they offer, the price they charge, and the clientele they service (Lynn, 2009). The new catering business should also be aware of the competition from some restaurants which at times offer catering services. How to cope with the competition is another thing to ponder about.

The restaurant should offer competitive services and prices too. A SWOT analysis should be conducted (Weinberg, 2007). The strength areas might be the knowledge of the customer base. Also, the company should concentrate on such strengths and aim to satisfy its clientele. Competitors’ weaknesses if identified will enable the new business to work around the issue and outdo the competitor. The new business should take advantage of the opportunities available in the market and those that arise. It should be ready to deal with such threats as competition and economic performance in the industry.

Advertising and Sales Promotion

The restaurant will carry out an advertising campaign using a mascot who would be roaming around the commuter station area in a special gown colored and branded by the quality restaurant writing. The mascot campaign will be rolled out for three days a week six hours per day. The expense on the mascot will be minimized, since it will be a part-time position and due to the fact that it is not a daily campaign. The mascot will be issuing out printed menus to potential customers and the effectiveness of the campaign will be pegged on the number of customers who will visit the restaurant after each hour of the campaign. The restaurant will also introduce specific days in a week when they will be offering meals at a discount. This will also be indicated on the printed menu being issued by the mascot, and a notice will be placed inside and outside the restaurant premises. The effectiveness of this sales promotion will be based on the number of customers visiting the restaurant during the discount days. The brand which will be unveiled by the new catering business in terms of the quality of food, punctuality, and customer service will determine how much the company will prosper.

Pricing Strategy

The restaurant pricing decision will be based on the cost and competition it faces. The cost factor should be handled with care, since it may make the business either profitable or not.

Cutting costs in terms of minimizing wastage and having viable personnel will need to be incorporated. How food is bought and stored should be considered. The prices of other adjacent restaurants need to be considered too. Since the customers will need value for their money, the restaurant should ensure the prices they charge justify the services or products they offer. The pricing model of the new restaurant should be based on value for money (Vivaldo, 2010).

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Organization and Management Plan

Business Manager

The restaurant will be run by a sole proprietor who will have substantial business knowledge. The proprietor will oversee the activities of the other personnel and will also be responsible for recruiting new staff. The restaurant will have three departments which include the finance department, catering department, and the human resource department. A qualified accountant will head the finance department, while the chief chef will head the catering department which basically is the root of the restaurant business. The owner of the restaurant will be in charge of the human resource department which will be dealing with personnel welfare and recruitment.

Key Personnel

The restaurant will need reliable personnel to ensure it runs efficiently. The chefs must have enough experience in order to cater for various food needs of the customers; they should also have experience in how to plan for servicing the customers and the amount of food to prepare to avoid wastage. The accountant is also essential in the restaurant business, since they will be responsible for ensuring safe keeping of the money and assets of the business. They will also act as an internal auditor who will ensure that the restaurant’s internal controls are followed to the letter.


The restaurant needs to cater for the welfare of all the employees through remuneration. The table below highlights how each personnel will be rewarded.

SN Job Title Basic Salary Allowance Total Monthly Salary Total Annual Salary
1 Accountant XXX XXX XXX XXX
2 Chief chef XXX XXX XXX XXX
4 servers XXX XXX XXX XXX
5 servers XXX XXX XXX XXX

Licenses, Regulation, and By-Laws

The license for the restaurant should be sorted to ensure the smooth running of the business and avoid collision with the authorities. The local by-laws should also be followed. The toilets and waste collection should be present, with the cleanliness of the toilets being emphasized (Lynn, 2009). The food handlers should be in good health, thus, requiring certificates of good health from accredited health facilities. These personnel should also be clean and neat. The food and utensils should be well stored and protected from contamination. The business should also be tax compliant to avoid hefty penalties and fines from the government (Weinberg, 2007)

Operational Plan

The operations of the restaurant need to be well-planned to ensure the supervision is done properly and wastage is avoided. The minimization of costs is also enhanced through operational planning; resources should also be used efficiently and optimized. The following tables will highlight the operations of the business.

Cost of Materials per Month

Item Amount
Total Cost xxxxxx

Cost of Labor

Personnel Salary/Month
Total Monthly salary xxxxxx

Overhead Cost

Item Amount
Rent xxx
Electricity xxx
Total Cost xxxxxx

Total Operational Cost

Item Amount
Cost of Materials xxx
Cost of Labor xxx
Overhead Cost xxx
Total Cost xxxxxxx


The restaurant business plan should have a well-crafted budget to cater for providing a well-equipped restaurant kitchen, a vehicle, salaries for the staff, and marketing and advertising costs, since these require a substantial amount of startup capital.

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