Deli Restaurant Business Plan
In this fast-paced world, where lunch is only 40 minutes, everyone needs a quick, nutritious meal. They will visit their local sandwich shop for a meal that will keep them satisfied all day.
Solution
The New World Delicatessen will be an upscale deli specializing in fast, hot or cold sandwiches and salads, as well as specific recipes focusing on the Pacific Northwest cuisine.
Based on this menu, New World Deli will follow a differentiation strategy to provide unique choices to deli patrons. This will allow Ms. Ericson to charge slightly more for their food services and generate a significant profit.
Market
There are three main markets:
– People who work downtown, who want convenient and high-quality food for breakfast and lunch.
– Surrounding businesses looking for phone-in lunch options for business meetings.
– Workers with families seeking take-out for family dinner at the end of the workday.
Each of these market segments consists of people who either work downtown or pass through during the workweek. Therefore, there will be a percentage of each market looking for a restaurant that offers healthy food, fast service, and a pleasant atmosphere. New World Deli will cater to the growing trend of middle-class professionals who desire a different cuisine than established food chains.
Why Us?
The New World Deli will be an upscale deli specializing in fast, hot or cold sandwiches and salads, with specific recipes focusing on the Pacific Northwest cuisine.
Expectations
Forecast
The company is estimated to have sales over $700,000 by year three and maintain a healthy cash flow.
Financial Highlights by Year
Financing Needed
The company will receive $60,000 in startup funds. Jane Ericson will invest $20,000 of her savings and guarantee a loan for another $30,000 with personal assets. Additionally, the business will receive an interest-free loan of $10,000 from a family member, to be repaid within the first year.
Opportunity
Problem & Solution
In this fast-paced world, where lunch is only 40 minutes, everyone needs a quick, nutritious meal. They will visit their local sandwich shop for a meal that will keep them satisfied all day.
Market Size & Segments
For the business market, we need to focus on specific companies with specific opportunities. For individuals, we need to rely on word-of-mouth recommendations, particularly from business customers.
The business market has the potential to provide large volume sales to the company during the peak hours of 11 a.m. to 2 p.m., due to both business people visiting NWD and delivery orders. Satisfaction of this group will provide a vital long-term revenue stream. The company plans to target this market through flyers, business discounts, billboards, and developing a reputation for fast delivery.
For individuals seeking breakfast or lunch downtown, or take-home meals, the company must build an effective word-of-mouth marketing strategy. This will grow steadily from the business market. The company also plans to collaborate with other local companies on joint marketing efforts, such as producing and distributing a referral book. These efforts will support our word-of-mouth marketing.
Competition
Current Alternatives
In the immediate downtown area, there are five main competitors: Subway Sandwiches, Cleo’s Sandwich Shop, McDonald’s, Taco Del Mar, and Famous American Deli.
The established chains, Subway and McDonald’s, have a national focus and limited ability to adapt to local desires. Additionally, the franchising model often leads to friction between the corporate office and the local owners, inhibiting efficiency, cleanliness, and other aspects. However, these chains can easily cut prices and have established relations with suppliers.
Local stores like Cleo’s Sandwich Shop and Taco Del Mar are more locally oriented but lack the financial resources for significant growth.
Our Advantages
Our most important competitive edge is our location, which is closer to potential customers than any other. Additionally, our Pacific Rim theme will attract customers looking for local cuisine.
Keys to Success
Our keys to success are:
– Repeat business. Every customer who comes in once should want to return and recommend us. Word-of-mouth marketing is powerful.
– Location. We need to be conveniently located for our market; we want customers to come to us, not travel far.
– The right food variety with a Pacific Rim theme. Our prices must be high enough to establish credibility but not so high as to limit customers.
Execution
Marketing & Sales
Our marketing strategy focuses on making our restaurant known to people working near our location. We will also emphasize our Northwest Pacific theme to create awareness.
We will focus on local marketing initiatives such as signage, a grand opening party, and distributing flyers to nearby offices.
We must offer fast service during peak times. Our goal is to achieve a good crowd balance to avoid looking empty or turning people away. Lines need to move quickly.
Having a good selection of convenient foods is crucial.
Our most important sales strategy is to develop repeat business. We will implement sales strategies like discount cards, special menu days, and a regularly changing menu. NWD will track popular food items and gather customer feedback through surveys. This will allow us to align our food offerings with local tastes and attract more customers.
Additionally, we will design a home/business delivery system to provide food within 30 minutes of ordering, ensuring the best possible eating experience and customer satisfaction.
Operations
Locations & Facilities
New World Deli will be located in Eugene, Oregon, on the corner of 7th and Main. The facilities will include a 25-person capacity eating area, counter/front area, and backroom area with refrigerators, commercial stoves, and ovens.
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