Business Plan For London Friend Chicken Marketing Essay

Business Plan For capital of the United Kingdom paladin chickenhearted merchandise EssayBusiness formulate is a account which is of truly much importance. It is a plan which bent-grasss up the outline for doing a descent and ascertaining its direction for produce and making profit in the future. In this idea, a intersectionion line plan is developed for the purposes of a new job which is to be started. The bank line plan is at the helm of e actually concern w pre displace the memorizeiness, formulation of dodging, pertaining of the process and the setup of the line of work in performed. This account is of a prime(a) nature and of valu sufficient importance for the connection which is planning to do the dividing line from the start. This plan allow set the objectives of doing the businesses and the all overall strategy to follow so that the business pull up s establishs succeed. The strategy and projections for the business ar set in this plan so that it i s cutn well in advance in advance that in which direction the company / business give going to move.Here in this report, we give initially define the radical terms that ar roughhewnly to be utilise. This volition than be followed by the plowion of the business plan, the objectives of the business, the products that lead be leaveed by the business, an analysis of the commercialize, a summary of the overall strategy and implementation, web plan, summary for the management and the financial plan leave behind be discussed in the below paragraphs in this report. This report forget comprehensively cover the aspects that be take for the purpose of a new and successful business plan.Some of the key definitions are discussed here under for the sake of creating an understanding for the users of this report1.1. BUSINESS design readiness plays a very important role in ascertaining how a business go forth perform and the train of success that it testament execute. in th at respectfore, the essential and postulate aspects for the success of a business are the identification of the relevant goals and the agriculture of the strategies for the purpose of runing and achieving those goals. A business plan is a signifi burn downt help one egotism and tool using which the business stern actually organize their goals which it wants to build and the objectives it has set for itself. This is basically a dry run of the company or in separate words we can say that this is what a company will look identical on paper. The business plan is use by the companies ir complimentsive of the size and / or stage of the development process. It is used by the companies to bring improvement into its operations and to do marketing and cook description of the business to those who will finance the project. The business plan broadly speaking follows a standard format for the purpose of this plan. By effectively utilizing a business plan the companies can not only att ain and obtain their goals but even can do much break off than that. Hormozi, A. M., Sutton, G. S., McMinn, R. D. Lucio, W., (2002)The level to which a business plan shows and in incorporates costs and overheads and the resource al regulate identical the research, production, warehouse, storage, transport, distribution, training, head office, wastage, vary with the needs of the business.1.2. STRATEGYThis sets the direction of the plan as how and in what manner it will work. This is usually set by the bearers of the business or the shareholders of the business or the top management of the business sets the strategy for the business. This strategy sets the manner in which the company is going to operate and will strive for the purpose of obtaining the profits and goals and objectives of the company. The strategy needs to be set at the point of inception before anything is or could be fetch so that the business thrives and prospers as per the direction it has set for itself and the plan that it has do for attaining that objective and strategy.2. DETAILED BUSINESS PLANThis report now discusses the business plan of the business which is going to be set up. This business will thrive to make profit by making a expert format, plan and strategy so that the company can be up to(p) to survive as well as than it can be able to make the profits.In this detailed business plan we will discuss the nature of the business, the objective of the business, the mission of the business, the strategy by which the business will operate and the pattern and mode in which the business will achieve the profitability.2.1. NATURE OF BUSINESSThe nature of the business is a degenerate aliment restaurant chain having restaurants in triplet locations in capital of the United Kingdom. The name of the business is proposed to be capital of the United Kingdom deep- fry Chiecken LFC. This is a locally found and self owned loyal solid food for thought progeny chains. This will be positioned and make an international notice of the unwavering foods restaurants donet the creativity and approach in respect of the image of the outlets. This troubled foods restaurant chain will provide very high tonicity food at value prices on purchasing this in combined. This food will be served in high quality presentation and layouts. London Fried sniveller is to be afforded in relation to an increasing lease for snacks and betting food. This food is in demand especially when the pot when the customers do window obtain or they toss in a shopping sum.In highly competitive surround of todays, its becoming more than and more difficult to differentiate one outlet of fast food from another. London is the economic hub of not only the joined Kingdom but same(p)wise to most of the European Countries. With more than 11 million people visiting yrly, mainly from neighboring countries particularly in the European Union, Londons sell sector is very strong in the region .We baffle set out our main priority for disruption the outlet in the interchange London, preferably in the central London or may be in one of the prominent malls for shopping in London. Later, through this effort we progress to plan to further develop more retail outlets in the areas surrounding.This business plan is beingness brisk for obtaining a location for initially launching of the pattern. extra finance amount will be required to be obtained for the purpose of opening two outlets subsequently, which we presage to open inthe thirteenth month and then in the third year after it. The amount of finance form the capital contributed by the shareholders will result in London Fried volaille to open successfully and in doing amplification of the business within two to triple historic catch. The initial amount of capital invested will allow LFC to provide its valuable nodes with a valuable and good experience through the creativeness of its founders.London Fried whine r willattract more youngsters in bringing their family and friends with our surroundings which is innovative, fresh cut Belgian fry, and other selected and unique dipping sauces.2.2. OBJECTIVES OF THE BUSINESSThe by-line are the objectives of the London Fried chickenheartedMaking LFC a place to visit for eating for those who do shopping in malls.To establish its heraldic bearing in London asa successful fast food restaurant chain and gaining a market share in Londons industry of fast food.To do expansion into many outlets by the year three of business, and withal sell our franchise to our neighboring metropolitan cities, like Paris, Spain, Bulgaria, Istanbul and so forthtera2.3. MISSIONThe main aim and target of London Fried Chicken is to be among the most successful outlets of fast food in London, head start with one main outlet located in the main central London located as market tester.London Fried Chicken will strive to make itself a premiere local home run in fast foo d in the marketplace. We want to provide our customers the come all-in-one experience when visiting our place and also our website as they will know more about our new pop culture. We will be change the products and goods from sauces which are pre-pack senior(a) and also t shirts, potato cutters etc, all with our own corporate grease name attached with it.Our main focus will be serving high-quality food at a great value.2.4. KEYS TO SUCCESSFor being successful in the business we need toBe innovative, having entertaining placard and creating a unique experience for customers, that will differentiate us from the other competitors.Controlling our costs at all times, in various areas and implementing a more conservative approach to our policy of growth. Although, as we want to be on the safe side in doing business, so we give more than required fund for opening more than one outlets.Selling products which are of the high quality, go keeping our customers happy and satisfied with ou r various product categories of food.Encourage the two most important values in fast food business brand and image, as these two ingredients are a couple of main drivers in marketing communications.Providing 100% satis concomitantion to the clients and maintaining the level of slender services among other competitors.Promoting good values of our business culture and philosophy of doing business.Get access to high-traffic shopping malls near the target market.2.5. epitome OF THE partnershipWhat London Fried Chicken is?London Fried Chicken sellsour French fry in a conewith a option of sauce. We are using the concept of Belgian heat, where the heat are prepared from fresh potatoes and deep- heat up two times. Our business also provide clients with excellent and good customer services to support fun ambience, and an energetic and novel living style.Fresh and youthful surroundingsFollowing the patterns and footsteps of Starbucks and KFC, which also deliver our core target market majority, between ages18 to 35 years of age. Our entrepot will fox live cooking of our main feature Belgian Fries from cutting to frying. Our client can be able to read our in-house brochures in respect of all the knowledge about Belgian Fries and our featured sauces. The store we have will be decorated with fast food setting, such as a bright counter and ostentation menus on the wall.Quality foodEachof our outlet will lead good quality service and food form our freshly fried Belgian fries, sandwiches and variety of other sauce blends, all served with old-fashioned domestic care.Open everydayThe opening times of the store will be everyday from 11 am to 1130 pm.Variety, variety, varietyA new range of sauces will be displayed every three months and we will also change our Italian soda flavors to accompany our fries.2.6. OWNERSHIP OF THE COMPANYLondon Friend Chicken is a privately held business. It will be registered as a Limited company in the UK, with ownership 25% Tim, 25% Jo seph, 25% hum, 25% Amanda.Tim and Joseph have more than 10 years of experience in the food business. Both are currently works as Corporate Staff of a Company.Tim holds an MBA point from University V. He is an enterpriser by heart and his latest entrepreneurial project is a baseball field store in the hub of London.Joseph holds a BA degree in in writing(predicate) Designing from the Arts Academy. His projects are widely varied from product design to developing brands of several reputable companies.Carol holds a MS degree from an Institute Y. She completed many projects and also served as project theatre director for multi-national companies in London.Amanda holds a BS degree from University Z. She has majored in Management and entropy Technology. Prior to her re move around to London, she has held several management positions in a U.S.-based IT company.2.7. post OF THE FACILITIES OF THE COMPANYLondon Fried Chicken size of location will range from 50 70 meters square and wi ll have seating room from18 to 30 guests. First of our locations will be on the broadr end of this range. This venue will have features such as its own display of swop and other attributes for brand building. The outlet will be equipped with modern furniture andaim forcalm and anopen feeling. We are currently searching at various realizable venues around London Bridge or Oxford Street central London areas..The venue will be selected based upon the sideline criteriaTourist destination.Comm unity size stripped of 800,000 people within a radius of 8 kilometers.Large doweryof teenagers in the community.Easy access.All of the above features are consistent with London Fried Chickens aim of providing a top class fast food experience. We want our best form of marketing to be word-of-mouth, where our customers value our brand as something exciting and cannot resist from telling to their friends and neighbors.London Fried Chicken will be competing directly with several other fast food giants inside the selected shopping mall.2.7. COMPANYS PRODUCTSWe want to focus only on sell fries. Alcoholic drinks will not be sold in our outlet, as Fresin Fries promotes a healthy and positive Singaporean lifestyle. Instead, we will stomach Italian Sodato complement the fries.In promotingtheFresin Frieslifestyle, we will offer various merchandisewith our logo and colors, from hats to t-shirts to potato cutters to our signature sauces, so that our customers can enjoy Fresin Fries at home. Our signature sauce is exclusively make by Company Q. They can be also purchased at selected retailers.2.7.1. explanation OF OUR PRODUCTSLondon Fried Chicken will sell friend chicken, burgers and fried together with ourunique sauces for dipping. Main products sold are Chicken roasted, Chicken Hot Burger, Chicken Sandwiches, Chicken Burgers, French Fries, Special Dip sauces etc.Also we will be having available Belgian-style fries in large 2 dips, or small 1 dip, with addition of garlic Fresi n (add 0.25).There are more than twenty flavours available for the dips for Belgian style fries which also be served with sandwiches. These dips are available in more than 20 flavoursSatay doPesto MayoThai Chili KetchupTeriyaki SauceRoasted Pepper MayoCreamy Wasabi MayoBlack Pepper SauceLava CheeseBarbecueCurry KetchupCaribbean IslandsJalapeno Ketchup traditionalistic SambalHot Chili SauceKorean BBQGarlic Dip2.7.2. coincidence WITH COMPETITORSLondon Fried Chicken will have several advantages over its leading competitors. These areA high degree of enthusiasm is evaluate by us and we offer a store with fun having well-disposed staff, that reflects the culture of youth and energy at LFC.Unique concept based on fusion of dipping sauce.We do not use frozen fries as compared to other competitors and our fried potato is made 100% fresh.We have innovative packaging which is more entertaining than our competitors we serve a mavin cone with cup which is reserved for dipping sauce.Our dip ping sauce is made fresh by us without adding preservatives.2.8. SOURCES OF OUR RAW MATERIALOur suppliers will deliver fresh halal chicken along with fresh potatoes will be delivered on a per week basis by our supplier who is based in Scotlan. We also undertaken an agreement withOrganization Q for exclusively manufacturing our crispy chicken, signature dip sauces. Our merchandise items will be printed and produced by our partners office in China.2.8. PLAN OF gross salesWe have set almost similar patterns of marketing for distributively of the LFC stores. on a disdain floor are the programs that we have setup for opening of all(prenominal) of LFC locations.2.8.1. OPENING IN A GRAND MANNERWe will be putting outside signs on each outlet as soon as possible for grasping orders in advance for parties etc. This signage will be back up by banners before opening of the stores.2.8.2. POINT OF PURCHASEWe will be using the concept of tray toppers for the purpose of explaining our busines s and style. We will also be selling to our clients the gift certificates, announcing future jobs openings, and possibly will also deferred payment about franchise opportunities.2.8.3. DIRECT MAILSAlso, direct mails will be sent to the customers starting from a stand-alone piece, which will be folded, will be produced in good colours on good quality saddle papers. Inside the brochure in that respect will be all the required and essential details of LFC, explaining our menu, house of operation, prices and a map to find our location.2.9. PRODUCTS future(a)Initially we will focus on capturing market share by selling our dipped and fried chicken and our good French fries and signature sauces. However, when grow ahead, we will also bring new surplus categories to our menu, such as Buffalo Wings and Belgian Sandwiches.Our future growth strategy will be to offer franchises of our LFC brand to other food businessman in the region. There various examples of success of various geologica l formation in the same business line on suppuration globally.2.9.1. MEALS WITH observeThe LFC massess come with value for the customers. gross sales of our products will not only generated from the sales of our Belgian Fries, but also will be generated by the concept of innovation in our packaging menu which is called the value meal. It is a deal which consists of combinations of our sandwiches, or burgers with featured Belgian Fries at much better value instead of us selling the individual items. We can also do customize sales by selling a fries which are of bigger size called Uber Fresin to attract price sensitive clients2.9.2. greathearted PARTIES OF PRIVATE NATUREWe can also embrace private parties and handle banquets, in additionto our brochures which will be listing our entrees on a daily basis.2.10. SUMMARY OF MARKET ANALYSISConsumer spending on fast food sector in London is rising steadily from go during the end of the year 2008, followed by the recovery of UKs econo my from recession. The increasing crook of new outlets such as fast food restaurants, fancy restaurants and epicure bakeries around UK has been showing a significant growth in this sector. feed spending is high as a percentage proportion of cowcatcher consumer expenditures in UKAt the weekends there is a much broader appeal as a large number of customers go to the outlets and malls at a very broader perspective. At the weekend there is saturation of the activities. Market consists ofAge Youngsters who are single and currently enrolled in college and high school.Family units Young families along with children. sexual urge Both the sexes will be targeted for the purposes of generating sales..People from medium income and individuals and other lower medium income bracket people will be more liable(predicate) to visit us.As per a survey conducted of young people aged 15 45 years, 80% of those interviewed like fast food. 90% of them like fast food on a regular basis, and 10% of t hem claimed that they like fast food very much, or love fast food. The following reasons were also provided by the survey for purpose of positioning and increasing popularity of fast foodUsually people have 12 months with 52 weekends and there will be three long holidays a year. Most of UK people love to shopping in high streets and malls, and when they do strolling around the shopping centers, they require a quick bite to accommodate their activities.Parents give more money to kids and students to buy lunch. Fast food is naturally their first choice, because of the brand building effort that heavily targets their age group.White-collar workers in offices have stopped bring lunch, and enjoy chicken, hamburger, pizza or other fast food joints in the vicinity.People in UK do not grok fast food is a luxury,and they enjoy it by bringing their family, particularly if they have small kids.2.10.1. SEGMENTATION OF MARKETOur target market ingredient is the younger generation as our primary market. Due to high extra-curricular activities among UKs youth, it is common for the youth to have lunch inside shopping malls, and not at home.The secondary market that we have chosen is the Working class. There are various major shopping malls across London,includingWestfields, Bretncross etc which are the biggest shopping mall in the nation, employing more than 50,000 workers.LFC is the alternative for a quick bite while shopping the fancy boutiques in the area and is also a red-hot attraction for tourists.2.10.2. NEEDS OF THE MARKETLFC sees out target markets as having a broad range of needs.A recent analysis of consumer trends by Euromonitor has identify the below needs among our target markets. Our core groupLooking for rush along in servicesLikes to have variety and flavors in the foods, preferably something friedInsists upon a friendly, clean, and attractive environmentWants an entertaining and fun experienceAdopts a global lifestyleComes from various ethnic backgroundsE njoys eating outIs calculator literateHas an active lifestyleThere is large potential and growing market needs that can be served by LFC despite of the fact that there are so many competitors in the market. Yet London Fried Chicken feels that its great taste and unique services and offers will be able to attract more and more clients.2.10.3. COMPETITORS IN THE master(prenominal) AREAOur main competitors in this fast food restaurant plane section are the food outlets within the 2 miles radius along the Oxford Street. In our location, there is Pret-a-manger, pizza hut, KFC, Subway, and others. Therefore the following are the main competitors of LFCPret-a-mangerpizza hutKFCSubwayMcDonaldsThese are the brands of international fame and it can only be possible to attract clients by making oneself more competitive and fine in compared to the above.2.10.4. STRATEGY FOR SALESThe sales strategy is building and opening new locations at different outlets in order for increase the revenue. H owever, this plan will be put into execution and implementation when the one market tester outlet at first showed potential growth. As each individual location will continue building its local client bases over a benchmark period of say first three years of operation, the goal of each store is109,460 in annual sales, with the original flagship store expected to earn almost 225,000 per annum.2.10.5. FORECAST OF SALESWe anticipate the highest peak on the months of July and August in our volume of sales forecasted, receivable to the summer seasons and than in November and December season due to Christmas holidays. Millionsof people from the EU countries visit Britain each year, mostly for shopping purpose and dining. Then there are also tourists anticipated from Asian countries as well, this explains the jumped of sales in these last two months of the year. (all sums in below graph are estimated check in )2.10.6. MILESTONESDuring the initial phase of company being set up, the 4 foun ders (Tim, Joseph, Carol, and Amanda) will conduct planning and implementation in constructing the brand name and image and the making of LFCs first outlet. The planning and construction will take approximately 8 to 9 months. This is in addition to the process of expansion and revision which will take the remaining of the 12 month period before our opening in middle of the year 2010.2.11. FINANCIAL PLANThe company is now privately owned by Tim, Joseph, Carol, and Amanda. Future shares will be offered after two consecutive years of operating in UK.2.11.1. START-UP FUNDING surely, company is being owned its four original founders, who each will contribute 220,000 for the same amount of share, 25%. This will be the amount which is more than the amount required to cover start-up requirements, and provide the business with a immediate payment margin so that it can use for expansion over the first three years. (all figures below are imaginary and fictive numbers. living at startupFund for expenses at Start-up71,700Funds for Start-up Assets51,300 marrow amount of funds required120,900AssetsNon cash Assets at the Start-up41,500Start-up cash in Requirements68,500Additional amount of Cash Raised698,300Cash Balance at the get-go Date810,400Total Assets861,200Liabilities and CapitalLiabilities on-line(prenominal) amount of Borrowing0Long term Liabilities0Accounts Payable (Bills Outstanding)0 different new Liabilities (interest-free)0Total Liabilities0CapitalPlanned InvestmentTim220,000Joseph220,000Carol220,000Amanda220,000Requirement for Additional Investment0Planned Investment total880,000Start-up loss (Start-up Expenses)(69,600)Total Capital810,400Total Capital and Liabilities810,400Total Funding880,0002.11.1. BREAK-EVEN ANALYSISThe breakeven analysis performed by us show that we need unit sales over 9,700 per month to break even. It is not expected to make a profit upto the year three.Break-even Analysis periodic Units to Break-even9,706Monthly gross for Break-ev en32,104Data AssumptionsPer-Unit Average Revenue3.31Per-Unit Average Variable greet0.73Monthly Fixed Cost Estimated24,9792.11.3. project PROFIT AND LOSSThe below is the communicate Profit and Loss account which shows LFC will run at a loss for the initial two years, using up some of the cash reserves initially invested by the founders. As sales will rise, LFC can expand into new locations to aggressively spread the recognition of brand. This increase in visibility will allow us to take up little expensive locations off of Oxford Street, while maintaining our flagship operation, the first store, in aprime spot.Pro Forma Profit and Loss course of study 1Year 2Year 3Sales289,173659,3281,127,654Direct Cost of Sales62,956134,916258,837 otherwise Costs of Sales000Total Cost of Sales62,956134,916258,837Gross Margin226,217524,412868,817Gross Margin %78.23%79.54%77.05%ExpensesPayroll88,200262,000449,600Marketing/Promotion10,00010,01010,020Depreciation000Rent174,010248,010298,020Utilities2 ,5505,0008,000 refreshful location setup25,01050,01050,020Total Operating Expenses299,770575,030815,680Profit Before elicit and Taxes(82,523)(140,557)53,146EBITDA(82,523)(140,557)53,146Interest Expense000Taxes Incurred000 wampum Profit(82,523)(140,587)53,226Net Profit/Sales-29.57%-25.18%4.77%2.11.4. PROJECTED CASH FLOWThe following is the table that shows a Projection of the Cash Flow for LFCPro Forma Cash FlowYear 1Year 2Year 3Cash veritableCash from trading operationsCash Sales279,163558,3271,116,654Subtotal Cash from Operations279,163558,3271,116,654Additional Cash stockSales Tax, VAT, HST/GST Received000New Current Borrowing000New Other Liabilities (interest-free)000New Long-term Liabilities000Sales of Other Current Assets000Sales of Long-term Assets000New Investment Received000Subtotal Cash Received279,163558,3271,116,654ExpendituresYear 1Year 2Year 3Operating ExpendituresSpending in Cash88,200262,000449,600Payments of Bills244,265430,245599,286Subtotal worn-out(a) on Opera tions332,465692,2451,048,886Additional Cash SpentSales Tax, VAT, HST/GST Paid Out000 hotshot Repayment of Current Borrowing000Other Liabilities lead-in Repayment000Long-term Liabilities Principal Repayment000Purchase Other Current Assets000Purchase Long-term Assets000Dividends000Subtotal Cash Spent332,465692,2451,048,886Net Cash Flow(53,301)(133,918)67,767Cash Balance677,899543,981611,7483. CONCLUSIONAs discussed in detail above, a business plan is a comprehensive muniment which requires a lot of efforts to be undertaken for its preparation. The above chart and table in particular the PL and the cash flow clearly shows that the company can turn into profitability in the year three as compared to the initial two years. Also there are positive cash flows of the business. This shows that the business is workable and can be undertaken on a genuine basis.