Pizzeria del Causamali is a new player in the restaurant industry, located in a small town with a strong need for more dining options. The restaurant aims to cater to families in the Deauville area by offering both dine-in and home-delivery services.
The population of Deauville is growing rapidly due to new subdivisions and young families moving to the area. Pizzeria del Causamali plans to capitalize on this opportunity and establish itself as the top pizza provider in the area. Rather than a national chain franchise, a locally-owned restaurant is believed to be the best option to provide a fresh and unique menu to the growing population.
This business plan focuses on a successful start-up year followed by future growth as the restaurant meets the community’s demands. Overall, the plan outlines a healthy company with good prospects for growth, aiming to manage growth in an organized manner.
Pizzeria del Causamali creates a friendly and pleasant atmosphere for customers in a well-designed, productive environment. We value the look and taste of good pizza and prioritize high-quality ingredients. Our goal is to provide the best possible value to customers who desire great tasting pizza and the satisfaction of receiving a great value. We are also the first home-deliverer of pizzas in our area.
As residents of our market area, our customers are our neighbors. We strive to create and nurture a healthy, creative, respectful, and fun working environment for our employees. They are fairly compensated and encouraged to respect the customer and the quality of our product. We seek fair and responsible profit to keep the company financially healthy in the long term and to fairly compensate owners and investors.
The keys to success in this business are:
– Delivering the customer value proposition.
– Marketing: promoting our company, product, and delivery channels to a rural community.
– Product quality and consistency.
– Pricing effectively with respect to project quality and customer value proposition.
– Family-oriented atmosphere with occasional nights of family entertainment.
– Effective management, including timely product delivery, cost control, and managing marketing budgets. We prioritize profits over growth.
– Implementing reporting and controls for inventory and financials.
Our objectives for Pizzeria del Causamali are:
– Establishing the market presence needed to support marketing and sales goals and attract customers.
– Reaching healthy monthly sales by the end of the year and steadily increasing average monthly sales through Year 3.
– Achieving double-digit profit margins.
– Developing top-rated relationships with 2-4 well-respected, all-encompassing distributors.
Pizzeria del Causamali is a privately-owned pizza restaurant offering a unique product menu in the area. We are the first to offer home delivery and cater to young families and students.
Pizzeria del Causamali will be established as a limited liability company (LLC) with Marion E. and Marianne K. Bruxellesprot as the sole owners.
Our start-up costs cover the renovation of the store space, professional fees, and expenses associated with opening our first location. We will finance the start-up costs through direct owner investment, financial institutions, and private investors. The assumptions for financing are shown in the table and illustration below.
Pizzeria del Causamali offers high quality pizza to a growing community with limited restaurant options and no delivery services. We will be open for dinner from 4 p.m. to 10 p.m. Sunday – Thursday, and 3 p.m. to 11 p.m. Friday and Saturday. We may consider serving lunch if there is demand and it is financially viable.
Our menu will include four sizes of pizzas with various toppings. We will highlight predefined, high-margin pizzas on the menu. Additionally, we will offer breadsticks, beer, and soda.
Our primary target market consists of people who prefer a comfortable, family-oriented environment for dining. Our secondary target market includes those who desire delivery or take-out options.
Deauville and its surrounding communities have a growing middle-class population of nearly 14,000 residents, with many families of four or more. The area is experiencing growth as families move out of over-populated areas into a more rural setting.
According to a 2001 Growth Plan conducted by Deauville, the population is expected to increase and the number of persons per household is expected to decline. This indicates the need for more housing and family-oriented restaurants in Deauville. The report forecasts nearly 1,900 households in Deauville by 2005.
Deauville residents frequently visit the building where Pizzeria del Causamali is located, as it is adjacent to tanning and video rental businesses. This provides a convenient option for families to pick up a pizza while selecting a movie.
With the expected annual growth rate of 7% in the area, opportunities to serve Deauville and its surrounding communities will increase. The company will primarily sell to individuals but may also accept catering jobs for parties, schools, and company functions in the Deauville area.
In terms of market segmentation, we include residents of neighboring communities such as Doughbuoy, d’Ohtown, and Doe Valley. However, delivery is limited to a 5-mile radius within the city of Deauville, which includes an estimated 53% of Deauville residents.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Dine-In or Take-Out | 7% | 13,860 | 14,830 | 15,868 | 16,979 | 18,168 | 7.00% |
| Delivery | 7% | 5,000 | 5,350 | 5,725 | 6,126 | 6,555 | 7.00% |
| Total | 7.00% | 18,860 | 20,180 | 21,593 | 23,105 | 24,723 | 7.00% |
4.2 Target Market Segment Strategy
No pizza establishments exist in Deauville or its surrounding areas. While one to two restaurants in Deauville serve pizza, it is not their primary menu item and they are not family-oriented. Home-delivery service is not provided by any eating establishments in the Deauville area.
4.3 Service Business Analysis
Other family-oriented restaurants in the area include: Subway(R), What’s Cookin’ diner, and Colonial House supper club. Subway serves sandwiches, wraps, and salads, which are not direct competition to the pizza establishment. The diner is open until 2 p.m. each day and focuses on the breakfast crowd, with limited sandwich availability for lunch. The supper club has a Chicken and Pizza buffet once a week for approximately $6; the pizza served as part of the buffet is frozen.
Other restaurants in Deauville are taverns and are not family-friendly. One of the bars in Deauville serves a homemade pizza.
In conversations with an independent pizza operator in Lakeshore Haven, an hour’s drive away, he indicated that pizza sales in his community are thriving despite competition from 4 other pizza establishments, including Pizza Hut(R). He also provided suggestions and tips to minimize costs and improve the business.
4.3.1 Competition and Buying Patterns
There is minimal competition for pizza in the Deauville area, besides the previously mentioned bar establishments. The closest locales for pizza to the Deauville area are Bolingbrooke, Avro, and de Havilland. None of these competing pizza locations deliver to the Deauville area. Additionally, Pizzeria del Causamali would be the only family-oriented, non-smoking restaurant in Deauville.
Contents
Strategy and Implementation Summary
Our strategy is based on delivering a strong customer value proposition in a niche market. We aim to offer the Deauville and its surrounding areas a new choice in food options.
- What begins as a need to satisfy a need in the community can eventually become a mainstay.
- We are building our marketing infrastructure to expand to additional towns.
- We focus on satisfying the needs of small towns.
5.1 Competitive Edge
Our competitive edge is being first-to-the-market with pizza in a friendly, non-smoking, family-oriented dine-in experience, and first-to-the-area with food delivery.
Additionally, the location of Pizzeria del Causamali is crucial. It is adjacent to a video rental store and within walking distance of schools, a church, and residential areas.
5.2 Marketing Strategy
To drive customers to Pizzeria del Causamali, we will employ several techniques. Advertising in local publications will be used to promote the grand opening and future events. Coupons will be available to customers. Family-oriented events and sponsorship of local teams will also be used to attract customers.
Future plans include working with the adjacent video store to offer "bundle savings" if both pizza and video rentals are purchased.
5.3 Sales Strategy
The Deauville area has expressed a desire for pizza, creating pent-up demand. We will expect a high rate of sales growth initially. As a major convention center and water park open in nearby Fairchild, we will focus on becoming the recognized provider of pizza to that establishment.
5.3.1 Sales Forecast
Our sales forecast assumes a modest change in annual costs to accommodate new entry into the market.
We are expecting to increase sales modestly but steadily over the next year. We predict an average of 25 pizzas sold each weeknight and 40 pizzas sold each day on weekends. Dine-in customers are expected to order drinks or beer. Additionally, one-third of the pizza orders will be accompanied by an order for breadsticks.
- Pizza: $12
- Breadsticks: $2.50
- Beer: $2.50/pint
- Drinks: $1.70 refillable
Sales Forecast
Sales
Pizza $133,900 $143,808 $153,875
Breadsticks $18,667 $19,973 $21,371
Beer $37,333 $39,947 $42,743
Drinks $50,773 $54,327 $58,130
Total Sales $240,673 $258,055 $276,120
Direct Cost of Sales
Pizza $42,848 $44,990 $47,240
Breadsticks $3,733 $3,920 $4,116
Beer $7,467 $7,840 $8,232
Drinks $2,539 $2,666 $2,799
Subtotal Direct Cost of Sales $56,587 $59,416 $62,387
5.4 Milestones
The table below lists program milestones, dates, managers in charge, and budgets.
Milestone Schedule:
The following table lists important program milestones, with dates, managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
Milestones:
– Business Plan: 1/8/2004 – 1/31/2004, $0 budget, Marianne Bruxellesprot, Management
– Secure Start-up Funding: 2/1/2004 – 3/1/2004, $0 budget, Marianne Bruxellesprot, Management
– Site Selection: 1/8/2004 – 2/1/2004, $0 budget, Marion Bruxellesprot, Operations
– Architect Designs/Redesign: 2/15/2004 – 3/1/2004, $500 budget, Marion Bruxellesprot, Operations
– Technology Design: 3/15/2004 – 4/1/2004, $5,000 budget, Marianne Bruxellesprot, Technical
– Personnel Plan: 3/1/2004 – 3/15/2004, $0 budget, Marianne Bruxellesprot, Management
– Accounting Plan: 3/1/2004 – 3/31/2004, $400 budget, Marianne Bruxellesprot, Management
– Renovation: 4/1/2004 – 5/15/2004, $7,800 budget, Marion Bruxellesprot, Operations
– Equipment Installation: 5/1/2004 – 5/15/2004, $2,000 budget, Marion Bruxellesprot, Operations
– Marketing Plans: 3/4/2004 – 4/30/2004, $2,500 budget, Marianne Bruxellesprot, Marketing
– Grand Opening: 5/1/2004 – 5/15/2004, $2,500 budget, Marianne Bruxellesprot, Marketing
– Totals: $20,700 budget
Web Plan Summary:
The Pizzeria del Causamali website will serve as the virtual business card and portfolio for the company. It will showcase the history, product information, and offers for Pizzeria del Causamali. Special online-only offers will be available on the website, along with the option for customers to sign up for email news and offers.
The Pizzeria del Causamali website needs to be simple, classy, and well-designed, while keeping up with the latest trends in user interface design. Customers will visit the site for product information, history, and offers. Future elements of the site could include online ordering, if there is customer interest.
Website Marketing Strategy:
Our Internet marketing activities will focus on product information and offers. We may explore offering online ordering in the future.
Development Requirements:
The Pizzeria del Causamali website will be initially developed with limited technical resources. Yahoo! Web services will host the site and provide the technical back end, while the owner’s expertise in professional Web development will guide the effort. The user interface designer will collaborate with a graphic artist to create the website logo and graphics. The owners will handle the site’s maintenance. If the website expands to include newsletters and online ordering, the internal staff at Pizzeria del Causamali will handle the design, implementation, and execution of these features.
Management Summary:
Marianne and Marion Bruxellesprot, a husband and wife partnership, own and operate the small company. The management style reflects the owners’ active participation, and the company values and treats its co-workers well. Marianne Bruxellesprot brings significant experience in general business, technology, and operations to the venture.
Additionally, Otho Colderobby serves as an advisor to the owners. Otho graduated with a degree in Economics and a Masters in Business Administration, with emphases in Marketing and Finance. He has substantial experience in senior finance management positions and strategic services consulting.
Personnel Plan:
The personnel table assumes a consistent need for employees and includes a 5% annual pay raise. As a 7-day a week restaurant, two shifts are necessary. In addition to regular serving hours, there is an hour of preparation before opening and an hour of cleanup after closing. This results in approximately 8 hours of necessary staffing from Sunday to Thursday, and 10 hours on Fridays and Saturdays.
The two kitchen lead positions are part-time and pay $9/hr. The kitchen leads also serve as shift leaders for the kitchen/wait staff. The kitchen staff also serves as the wait staff. Each shift will have one dedicated dishwashing position. Part-time wages for kitchen/wait staff, dishwashers, and delivery drivers are $6/hr, with shared tips. The kitchen leads must be over 21 to legally serve alcohol.
Hourly part-time positions for kitchen/wait staff, dishwashers, and delivery staff average around 30 hours per week. Delivery staff works 5-hour shifts per night, with an additional member added on Thursdays, Fridays, and Saturdays. If not delivering, this person will work in the kitchen as needed, under the guidance of the kitchen lead.
Personnel Plan:
– Kitchen Leads: Year 1 – $28,080, Year 2 – $29,484, Year 3 – $30,958
– Kitchen/Wait: Year 1 – $37,440, Year 2 – $39,312, Year 3 – $41,278
– Dishwasher: Year 1 – $15,600, Year 2 – $16,380, Year 3 – $17,199
– Owner: Year 1 – $9,000, Year 2 – $9,450, Year 3 – $9,923
– Delivery: Year 1 – $15,600, Year 2 – $16,380, Year 3 – $17,199
– Total People: 12
Total Payroll: Year 1 – $105,720, Year 2 – $111,006, Year 3 – $116,556
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