Business Plan – Italian Restaurant

Rosalitta’s
Buono
Dolce Casa

28-B Maginhawa Street, Quezon City

Proposed by:
Koishiro Geneive Igharas
12 STEM – B
 CHAPTER 1 - Executive Summary

This business is a partner-owned restaurant serving high quality Italian-Filipino

food. The menu is customizable to cater to customers with allergies. The restaurant aims
to cater to all and to be a staple part of its location.

The business targets families and teenage students as primary customers. The
business will utilize the social media and its aesthetic interior design to attract customers.
Costumers should feel welcome and comfortable eating at the restaurant alone or with their
companions.

Raw materials would be bought at the nearby fresh markets, and equipments are to
be bought at the local appliance store, which should cost P68,000. The business would need
P75,000 to launch the business,.

CHAPTER 2- Introduction
i. Proposed Name of Business

The business (restaurant) has three potential names:

 Rosalitta’s , Buono, or Dolce Casa

All three words are are short and Italian to suit the theme of the business being
an Italian restaurant, where customers could feel “at home to”.

Rosalitta - typical Italian name

Buono - the word for delicious in Italian

Dolce Casa- an Italian phrase for “sweet home”

ii. Name of Owner

The owner of the restaurant would be Koishiro Geneive Igharas, the person
proposing the business plan. Eighteen years old, and currently completing her high
school as of November 2019.

iii. Description of Business

1. Mission

To be a full service, family Italian restaurant offering affordable, high

quality Italian cuisine inspired by authentic family recipes while provide our
 customers with an entire dining experience that exceeds their expectations on
every visit.

2. Vision

To be the best quality family Italian restaurant in the area, providing high
quality Italian cuisine, and superb customer service.

3. Objectives

The main objective is to purchase a lot in Maginhawa street and set up shop
there, creating a profitable, successful, and affordable family Italian restaurant.
Following minor objectives are as follows:

 Provide the highest quality food and service

 Create an atmosphere where each person can work as a team member, with
clear goals and high standards that profit everyone
 High Gross margins
 Maintain consistent food and labor costs
 Maintain and expand my outstanding reputation

4. Products / Services

The menu offers around 10 pasta varieties and 5 each for poultry, meat, and
seafood entries, along with an assortment of appetizers, sandwiches and salads.
These are paired with an interesting variety of refreshments, shakes, and
desserts to complement the meals.

A children's menu for ages 12 and under features "Meatbol", a cartoon

character who suggests favorites like spaghetti and meatball pizza, and toasted
ravioli in portions just right for smaller appetites.

In an effort to cater all people, the recipes in the menu is made to be flexible
to allergies:

-- cow’s milk - peanuts

- eggs - wheat

- tree nuts - soy

iv. Location of Business

1. Address and Email Address
 The restaurant would be located at 28-B, Maginhawa Street, Quezon City.
The Maginhawa street is a known food destination, and it’s common for the
place to have new restaurants to eat at. Setting up shop in this area is a
guaranteed bonus to success.

Email address of the restaurant (depending on the decided name of the

business):

 [email protected]
 [email protected]
 [email protected]

2. Proximity to Target Customers

Since the business is family themed, there are no specific target

customers. All are welcome to become customers. Parking space is limited due to
the limited space of Maginhawa street. The business can accommodate 2 to 3 cars
parking in front. Other customers may park elsewhere on other sidewalks since
the whole area is accustomed to this kind of practice. There are a few nearby
private schools in the area, and so the restaurant may encounter more students as
customers.

3. Distance from Sources of Raw Materials, Labor, and Utilities

The restaurant would buy most of its raw materials at a food market in
Kalayaan street. It is 20 to 30 minutes away from the restaurant in walking
distance. A tricycle can be taken to go to and from the market. The market is
complete with plump vegetables and fresh meat.

For labor, the restaurant would post flyers and post the need for employees
on job websites. The restaurant would be hiring three to four cooks, one janitor,
and two to three waiters.

For the utilities, needed items can be bought at the nearby SM supermarket,
10 minutes away in walking distance. There are also nearby paying stations in
the same area.

4. Availability and Cost of Transportation

Stores are open every day, on weekdays from 9 am to 10 pm, and on

weekends from 12 pm to 12 am. For transportation, to buy raw materials and to
handle utilities would cost P400 to and from the store every month.
 On the aspect of transportation, to go to and from the food market at
Kalayaan street costs P65. For the nearby SM supermarket and paying stations, it
would be P60. In total, every month the budget for the transportation would be
P350. Raw materials needs to be bought every week, and the utilities can be bought
at the same time the electricity and water bill needs to be payed, which would be
once a month.

5. Peace and Order Situation

For security, guards will be hired. Two guards would be enough given
the size of the restaurant. Each would take shifts in guarding. CCTV camera’s
will be attached in key places of the restaurant, 5 in total. One in the kitchen, three
in the dining area, and last one outside.

For emergency situations, the restaurant would have four fire

extinguishers, three on the walls of the dining area of the restaurant, and one in
the kitchen. Fire alarms would be installed and a first aid kit would be placed in
the kitchen.

6. Presence of Direct Competitors

Competitors would be the biggest problem for the business. Maginhawa street
is filled with more diverse restaurants, and thankfully, there are less than three
Italian restaurants, each having their own special twist. Given the address of the
restaurant, it is at a comfortable distance where the other Italian restaurants are
one ride away.

7. Geographic and Climatic Conditions

Geographically, Maginhawa is safe from flooding during heavy rainfall.
Climate conditions are dictated by the country’s current climate conditions.
Though usually, the weather is either calm, very hot, or rainy.

CHAPTER 3 - Environmental Analysis

i. Strengths
 The menu of this restaurant is more diverse that the other only Italian restaurant
at Maginhawa. Diversity allows for an opportunity to cater to more customers who
have more specific tastes.
 The menu is flexible to people with allergy. Each meal can be customized
accordingly to cater their needs.
 The restaurant is located near the villages, meaning more parking spaces for
customers and less noise pollution

ii. Weakness
  The cost of keeping the business running would cost more that the typical amount,
all due to the menu.
 To compensate for the cost of running the business, prices on the menu is slightly
higher than other competitors.
 Due to the location, getting discovered may be more difficult since the trent in
customers is that they often stick to long-established restaurants.

iii. Opportunities
1. Socio-Cultural Environment
The area welcomes small businesses, and so the people within the vicinity
are often warm to new and unique restaurants. There are two schools near to the
location of the business, meaning students may take up most of the population of
customers.
This restaurant is also the first of its kind at Maginhawa to cater to people
who have allergies, making it easier for it to be an established part of the area.

2. Political Environment
The laws regarding small businesses in Maginhawa is strict yet flexible
enough to allow business owners a little more freedom to be creative with their
business products.

3. Ecological Environment
The restaurant will engage in eco-friendly practices such as the limited use
of single use plastics, and proper segregation and disposal of waste.

4. Technological Environment
The business will have its own website to showcase its products in a
professional and attractive way. It will also have its own Facebook account for
promoting and marketing.

iv. Threats
1. Socio-Cultural Environment
Students may be discouraged from the restaurant due to prices of products,
and due to its location. Being near the villages, the restaurant would be distant from
the cluster of restaurants people often go to, making it difficult for the restaurant to
be recognized..

2. Political Environment
The laws double down heavier on violations and implementation. Most
especially for the finance and taxing laws.

3. Ecological Environment
All the effort to be eco-friendly will weigh more on the budget of the
restaurant, making it challenging to stay consistent with the effort.

4. Technological Environment
 It will be difficult to market the business online since it isn’t a trend to
follow small businesses and such. Without assistance from business group profiles,
the endeavor will be worse.

CHAPTER 4- Business Description

i. Nature

For merchendising, the business will use the aesthetic interior design of the
restaurant to entice customers. The goal is to make the business appear to be cozy,
welcoming, and rather romantic. This is in consideration of the location, where the
customers are often students (teenagers) and families. The business will also take the
opportunity to use its social media accounts to promote the menu.

In the Market of Maginhawa restaurants, there's only one serving Italian food, and
even then this restaurant focuses more on the pizzas, and their menu is also limited to
typical pasta and appetizer recipes. The amount of restaurants catering to people of
allergies are close to none. Our business offers both allergy-friendly menus, and a wide
array of dishes to choose from.

Food is to be produced by skilled chefs, with the raw materials bought at nearby
fresh markets. Equipments needed for the restaurant will be bought at the local appliance
store.

ii. Form

The business is partnership owned. Mr. McCoy is Ms. Igharas' close friend, and
helped conceptualized the important details for the business. He is highly talented with
entrepreneurship decisions, and Ms. Igharas balances it out by being talented with
administrative and human resources works. Both will equally finance the business, and will
continue to work hand-in-hand.

iii. Production Plan

The business offers italian-filipino styled meals that can be customized to accomodate
customers with the eight most common allergies (peanuts, tree nuts, milk, eggs, wheat, soy,
fish, shellfish).

For personalized orders, the customer may request for a given ingredient to be left out when
cooking.

The business menu offers the following meals:

PASTA (8)

- Mac&Cheese, Lasagna, Creamy Mushroom Carbonara, Pesto, Spicy Tuna Carbonara,

Cacio e Pepe, Sweet Spaghetti, Italian Spaghetti, Chicken Florentine Pasta

MEAT(5)

- bbq steak, roast (chicken/beef/pork), buttered (chicken/beef/pork) , beef braciole, honey

garlic pork chops

SEAFOOD(5)

- italian seafood stew, roasted salmon, sautteed shrimp and crabs, cioppino

APPETIZERS(4)

-onion rings, calamares, crispy fries, chicken nuggets

SANDWICHES(4)

-california club sandwich, crispy chicken sandwich, vegan sandwich, BBQ portobello
mushroom sandwich

SALADS(3)

-ceasar's, italian salad, ensaladang pinoy .

iv. Equipment and Materials

The restaurant will require the following equipments:

commercial refrigerator.............P10,000

commercial grill.........................P6,000

salamander broilers....................P5,000

griddles.......................................P2,000

kitchen tools...............................P2,000

commercial oven........................P7,000

dishes and plates.........................P8,000

TOTAL: .....................................P40,000

Materials needed for the menu, as per discussed will be bought at nearby fresh
markets. Furniture will be bought at the nearby carpenter's shop. Other designs will be
bought at SM North Edsa and at nearby indie design shops at the area. The following are
the estimated items needed:

9 square tables, with tablecloths..............P10,000

1 long table, with tablecloth....................P4,000

34 chairs, with pads.................................P8,000

other furnitures.........................................P6,000

TOTAL:...................................................P28,000

v. Size of Business

For the first five years, there will be only one branch, located at said location.
Depending on the losses and gains experienced within this five years will dictate whether
the business will open up more branches, or will partner up with other bigger businesses.

vi. Personnel Requirement

The business will require the following personnel:

- 3 waiters - 1 cashier worker

- 3 cooks - 1 guard

- 2 sanitation worker - 1 manager

Each much have appropriate resumes, must have passed the interview phase, and
must be capable of working at a fast paced environment while keeping proper work
relationships among one another.

CHAPTER 5 - Organizational Plan

i. Organizational Structure

Being a small business, it would only require a simple organizational structure. Ms.
Igharas will act a general manager. All decisions are made in-line with the business
objectives. Employee tasks are delegated based upon their level of expertise, performance,
strengths and weaknesses.

ii. Management Team

 Mr. McCoy, the co-owner and co-general manager will be responsible for all
administrative functions, purchasing, inventory control, and promotions. He will also act
as a part-time sales representative. He has experience in accounting, finance and operations
management. He has extensive background in purchasing, inventory control, and
marketing.

iii. Personnel Plan

There will be one full-time employee and two part-time employees working 20-30
hours per week. The full-time employee will be paid at a rate of P20.00 per hour and the
two part-time employees will be paid at a rate of P18.00 per hour. All employee's will
benefit from a one day paid holiday on their respective birthdays and one week of paid
vacation after twelve months of employment.

At this time medical benefits will not be offered to employees. As profits increase
in the future medical benefits will be offered to all employees.

CHAPTER 6 - Production Plan

Our production system shall strive to attain service excellence in addition to

creating delicious, quality products. This shall be undertaken through the acquirement of
fresh raw materials, to be cooked by skilled chefs.

This will also result in medium production costs being attained by the company.
The business also intend to ensure that the employees hired are committed and reliable so
as not to let down any customer in terms of the quality of the product and time of
preparation.

In order to please customers more, the business will be using environment friendly
materials such as replacing single used plastics with recyclable materials, to reduce waste.
By the undertaking the above we will optimize our productivity given our available
resources.

It shall be the policy of the company to ensure that all raw materials are stored in a
secure, clean and pest free manner. Stock takes and reconciliations shall be undertaken on
a regular basis, initially done at least once a week. The stock principle of First In First Out
(FIFO) shall be implemented. Whenever stock is taken out it shall be recorded on a separate
stock or bin card, with reconciliations of raw materials issued to the brewery, issued to
production, losses, opening and closing stock taken. Should any deviations arise these must
be explained.

CHAPTER 7 - Marketing Plan

i. The Customers

In the area of Maginhawa, there are numerous types of customers:

families, teenagers, adults, children, seniors

This is due to the fact that the location has numerous villages with a handful of
private schools scattered around. That said, the primary target of the business would be the
teenage students, or young adults since they are the most active customers, making up the
larger percentage of the customer base.

The secondary target customers are the families. Maginhawa is a food destination,
and people living in that area are open and used to eating out multiple times a week, and
so its a normal sight to have families eat out often. They also make up the second larger
percentage of the customer base.

The last target customer of the business are the seniors and children. Both comprise
the smallest customer base, and it's seldom to have them eat alone at the restaurants.

ii. Target Market Strategy

The goal of the business is to cater to all types of customers. But the business leans
more on the largest percentage of customer base as targets.

iii. Market Needs

There are several important needs in the restaurant business at Maginhawa that are
being either ignored or not met at all. The business plans to meet and service those needs.

 To be an Italian restaurant that offers a larger assortment of dishes to complement

Filipino taste buds

 Focus and attention to customers with food allergies

iv. Market Trends

People in the Maginhawa area are always curious to try out any new restaurant, and
are quite open to foreign dishes. Korean food is the newest hot trend in the restaurant
industry, but it doesn't dominate the business trends at Maginhawa. The area has a diverse
kind of restaurants, with the most successful, the cafe or "romantic" restaurants.
Essentially, people enjoy places that create a vibe of warm and lively place that encourages
people to have the same energy.

CHAPTER 8 -Financial Plan

The business start-up expenses and funding are shown in the tables and chart below.
The majority of these funds will be used to build the first facility, pay deposits, and provide
capital for six months of operating expenses, initial inventory and other one-time expenses.
The business anticipates the need for operating capital for the first few months of operation.

Start-up Expenses

Legal.................................................................................P3,500

Office Equipment.............................................................P6,000

Land Lease (6 months).....................................................P11,200

Electricity Bill (6 months)................................................P6,700

Administration Labor(6 months).....................................P54,000

Website & Social Media Management............................P5,600

Identity/Logos/Stationary.................................................P4,000

Other.................................................................................P5,000

TOTAL.............................................................................P75,000

The business anticipates the initial combination of investments and long-term

financing to carry it without the need for any additional equity or debt investment, beyond
the purchase of equipment or facilities. This will mean growing a bit more slowly than
might be otherwise possible, but it will be a solid, financially sound growth based on
customer request and product demand.

The financial plan depends on important assumptions, most of which are shown in
the following table. The key underlying assumptions are:

 the business assumes a slow-growth economy, without major recession.

 the business assumes of course that there are no unforeseen changes in public
health perceptions of its general products.

 the business assumes access to equity capital and financing sufficient to maintain
its financial plan as shown in the tables.
 Cash flow will have to be carefully monitored, as in any business, but the business
is also the beneficiary of operating a cash business. After the initial investment and start-
up costs are covered, the business will become relatively self-sustaining. With the
exception of seasonal dips, which it has attempted to account for, through changes in the
menu items.

Exit Strategy:

There are three scenarios for the investors and management to recover their investment --
two with significant returns on each dollar invested.

I. Scenario One:

The business becomes extremely successful and has requests from other
communities for its operations to be opened there. This opens the door for franchising
opportunity.. However, developing a franchise can be

extremely costly, take years to develop, and be destroyed by one or two franchisees who
fail to deliver the consistency or value on which the founding company had built its
reputation.

II. Scenario Two:

By the third year, the growth and community support for Dolce Casa will have
made the news in more than just the metropolitan area. It can be assumed that competitors,
such as Shakeys and Sbarro, will have seen the press and realized the value proposition in
Dolce Casa's business plan. This will make it an attractive target for buyout. The company
could be purchased by a much larger competitive concern a few years after soft opening

III. Scenario Three:

The business changes, following food service trends, becoming more of a cafe
rather than being a restaurant. These changes would cause a boom in profit, allowing the
business to earn enough to open new branches. The danger in this is that competitors would
rise up and establish a foothold on a community before--or in the midst of--the arrival of
the business, causing a potential for a drain on revenues and a dramatic increase in
advertising expenditures to maintain market share. Knowing these risks--and planning for
them--gives Dolce Casa the edge needed to make this scenario work.