Executive Summary with notes

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Lahore University of Management Sciences, Lahore *

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AMC100

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Business

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Nov 24, 2024

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Executive Summary The GOSIP LTD will be a moderately priced 86 seat restaurant at Earls Street, Maidstone. Restaurant will be offering family style food and service. Coffee, beer, alcoholic and nonalcoholic drinks are all on the bar menu while lunch menu includes English lunch along with tea. We will offer specialty selections including a lighter options and smaller portions for a children’s menu. GOSIP LTD space is split in two floors. On the ground floor we will have around 9 tables with chairs, the first floor will be with a bar as well, coffee machine, beers , alcoholic and nonalcoholic drinks and around 15 tables . The décor will feature wood accented chairs with blue and white checked table cloths. Dinner style tables will be surrounded by wooden chairs with comfortable seating cushions. Introduction The business plan will be developed for a GOSIP LTD which will operate in café industry , this business sector has been selected as there are many opportunities for growth in this sector. Over the course of the pandemic, the restaurant and hospitality industry adapted well to the changing rules, as the proportion of temporarily closing businesses plummeted from 81% in the 2020 lockdown to just 54% in the 2021 lockdown. There are 42,070 full-service operating restaurants within the UK. The food and drink industry within the UK provides formal employment for 487,848 individuals. Low business confidence is expected, with 27% of multi-site restaurant owners fearing their business will be “unviable” by mid-2021. The economic turnover in 2020 was £1.2 billion, compared to the much larger £6.9 billion from May 2021 (highest it has been since August 2020). The restaurant industry turnover of 2021 (so far) is still 25% lower than that of 2019. The turnover in May 2021 is five and a half times higher than it was in May 2020. Restaurant bookings in May 2021 (just after restrictions lifted) soared up to 32% higher than the pre-pandemic May 2019. Company

GOSIP LTD offer snacks beverages and coffee services near the Maidstone London, £75,000 capital of the business invested by investors namely Raluca and Nicolae . (PLEASE ADD NAME WITH SURNAME). Objectives There are number of objective of the organization these are given below.  Make the business successful and be the best restaurant in local industry.  Earn the profit at the start of business of the business operation.  Gross margin will be sustain by 65% Keys to Success Key to success for the business will be:  To build the structure of the organization that will be attractive to the customers and provide satisfactory services operations.  Organization will focus on training development of the employees that make sure the best coffee preparation practices.  Offering a play area for children which will offer competitive as no other restaurant provides this facility  Develop a strong marketing strategy that is significant helpful for the organization to improving the customers’ base and obtaining the loyalty of the customers. Mission GOSIP LTD will provide a comfortable and relaxing environment where the customers can find a unique or best quality service of lunch and enjoying their social gathering. Our mission is to escape the people from daily stress life by providing the friendly customer service and environment and best tea and coffee quality. Organization will focus on employees training timely which leads the organization towards the success and able to organization to provide stable periodic income to their shareholders. Operational Plan and Management

Company Locations and Facilities GOSIP LTD d bar will be located in Earls Street, Maidstone. The company has secured 79.71sq m premises for ground floor while 182.65 sq m for first floor. The Ground floor plan will include restaurant, which will have a seating area with 9 tables, and storage area. The space the first floor will be with a bar as well, coffee machine, beers, alcoholic and nonalcoholic drinks and around 15 tables and will also have a play area for children upto 10 years. a back office, a kitchen will be on first floor Management Team Organization will hire 6 person that have a much experience in coffee and restaurant industry as manager that will manage and control the activity of the organization. Moreover, this manager will be work as full time manager and the core responsibility of the manager will be to address the staff requirement, developing marketing strategy, managing and ordering inventory, negotiating with material supplier and affair of the business. Management team will also include owners of the biasness Raluca and Nicolae . Raluca will overlook all the operations of the restaurant while Nicolea will oversee all the financial and marketing functions of the company. Management Team Gaps Although organization owner’s and its respective team has much experience in this industry but organization also consult about from a well reputed consultancy firm ( the manager has this experience already )from edification consultancy firm which have more than 15 years’ experience in the coffee bar retail industry which have successfully initiated the coffee bars in different region of UK. This consultancy firm provides its service to the business in terms of customer satisfaction surveys, and conducts the analysis of customer satisfaction and provides the information to the business for further business opportunity. Personnel Plan The table below outlines the personnel needs of GOSIP LTD coffee bar. Personnel Plan Details Salary Per Person p.a Owner £ 50,000

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Coffee maker £ 12,441 Counter holder £ 10,500 Others £ 8,500 /year? Total £ 81,441 Start-up expenses Requirements Start-up Expenses Details Amount Start-up Expenses Legal (what exactly is included here?) £ 13,000.00 Stationery etc. £ 500.00 Brochures ( we do not need those)- online marketing +everyone know us in this town because of our business(they know that we are running a cattering family business from home- something small+ recruiting company for univ) £ 3,580.00 Consultants (for what?) £ 3,000.00 Insurance £ 2,400.00 Rent(we need to add services charge) £ 4,400.00 Remodeling £ 10,000.00 Other £ 2,500.00 Total £ 26,880 Start-up Assets Details Amount

Cash Required £ 67,123.00 Start-up Inventory £ 16,024.00 Other Current Assets £ - Long-term Assets £ 57,175.00 Total £ 83,147 Total Requirements ( to much, we have £76.000) £ 110,027 Liabilities Details Amount Current Borrowing( what is that for?) 22,000 Long term Liabilities 24,511 Accounts Payables 3,042 Other 12,354 Total 61,907 Capital Planned Investment by Owner 75,000 Loss at start up (26,880) Total Capital 48,120 Total Capital and Liabilities 110,027 £ -

Market Analysis Customer Analysis 1- Demographic: Age: In general, there is no limit in age focused by the . GOSIP LTD . Our target each individual in the community and the largest demographic in the youth of any society. Gender: both male & female our target. Family size: This plays a vital role in the demographics of the . GOSIP LTD . In general, prices. Level income: Middle and high income class 2- Psychographic: The psychographics of our clientele include ", big spenders and baby boomers. The buying patterns of our clientele will be people who like to spend money on pampering themselves, on quality food, feeling special, projecting an image of wealth, trying new things, and thrill seeking. They are the ones that are willing to spend their money on good dining and service at a value price. 3- Geographic: Businessmen nearby who are eat at their lunch time in restaurants like banks and companies Students of College & University which are searching for fast lunch in their short breaks and a snack after long day of studying. Passers-by: Hungry people who just pass by our site especially in the evening during the weekend vacations. Families & foreign visitors which looking to traditional food for take away or dining restaurant.

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Product Description The organization products will be relevant to the different sort of English food. The food that will be served will include : muffins, coffee, bacon and egg rolls, porridge, smoked salmon bagels, cakes and slices, varied range of hot and cold lunch products sandwiches, wraps, paninis, pies and toasties, gluten free, cold drinks. Apart from this restaurant will also offer coffee, alcoholic and non-alcoholic drinks. Promotion: Advertising Online : GOSIP LTD promoting through advertising using social networking sites such as, Instagram, Twitter, WhatsApp and Facebook. Advertising Offline : GOSIP LTD will utilise aggressive media advertising as a tool to promote its products. With the help of television commercials, newspapers and magazines, the organisation will successfully manage to create a positive image of its brand. The scrumptious representation of its food products on the hoardings will not only attracts its consumers but will also help to keep them well informed about the new arrivals. Sales Promotion : In addition, GOSIP LTD uses sales promotions in the form of coupons and other offers through its website and mobile app. The firm’s restaurant personnel also typically use personal selling to encourage customers to buy more products from the menu, such as desserts in addition to what the customer already ordered. Pricing GOSIP LTD will use market-oriented pricing strategy as its primary approach to pricing. This pricing strategy involves setting prices based on prevailing market conditions, including supply and demand conditions as well as the pricing of competing firms. In this pricing strategy, Dhow Restaurant will evaluate the prices of similar products that are on the market. It is important to only consider those products that are similar to the product being offered. Depending on if the product has more or less features than the competition, Dhow restaurant will set the price higher or lower than the competitor pricing. For example, if this product has an extra feature over the competitor’s product, the company could either decide to price it the same, therefore making it the better value or could price it slightly higher to account for the additional feature.

The demand of the product will also configure into the pricing of the product even with a market-based pricing strategy. With a higher demand, GOSIP LTD will the product at a higher price. When the demand falls, incentives and other discounts can be offered to keep customer interest. Competition and Buying Patterns Competition As this there are different potential market driver of this industry and they have captured a huge market share in this industry. Our organization will provide a safe and relaxed environment to its customer which attract the customer to make their visit memorable this feature of the organization enable it to get the competitive advantage in this industry and improve its customer’s base. Moreover, restaurant will operate on Earls Street which have various attractions that are visited by local people as well as tourists which are one of the potential target customer that’s why this will be easily access able to visit this restaurant this will also enable the organization to get the competitive advantage in this industry. We will cater to customers' bodies and minds, which will help us, to grow our market share in this competitive market. Buying Patterns One of the major reasons that attract the customer towards the organization products is the excellent quality service of the product. As GOSIP LTD will provide the superior quality service and better taste of the coffee this will enable the organization to change the behavior of the customers and will able the organization to retain the customer and their loyalty as well. Competitive Edge Organization not only attention to provide a better quality service along with this feature organization use its resources at optimum level and develop and environment that allow the customers to get rid of their stress and feel easy and stress free. This friendly atmosphere is very significant factor that enable the organization to get the competitive advantage in this competitive market.

Expected Financial Analysis: Sales: Sales Revenue Details Year 1 Year 2 Year 3 Coffee( how you calculated?) based on what? 886,000 974,600 1,072,060 Beverages 547,200 601,920 662,112 Other 50,652 55,717 61,289 Total £ 1,483,852 £ 1,632,237 £ 1,795,461 Direct Cost Details Year 1 Year 2 Year 3 Material £ 519,348 529,735 556,222 others £ 296,770 £ 326,447 £ 359,092 Total £ 519,348 £ 529,735 £ 556,222 Income Statement:

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INCOME STATEMENT: Projected Income Statement (£) Year 1 Year 2 Year 3 Revenue 1,483, 852 1,632,2 37 1,795,4 61 Net Sales 1,483, 852 1,632,2 37 1,795,4 61 Direct cost of sales 519, 348 529,7 35 556,2 22 COST OF SALE 519, 348 529,7 35 556,2 22 GROSS PROFIT 964, 504 1,102,5 02 1,239,2 39 Operating Expenses Salaries and wages 81,441 89,5 85 98,5 44 Depreciation 5,000 5, 500 6,0 50 Utilities 3, 000 3, 450 3,9 68 Payrol taxes 1, 800 1, 980 2,1 78 Insurance 1, 000 1, 000 1,0 00 Other 3, 500 3, 850 4,2 35

- Total Operating Expenses 95, 741 105,3 65 115,9 74 Profit Before Interest and Tax (PBIT) 868, 763 997,1 37 1,123,2 65 Interest Expenses (1, 500) - - Profit Before Tax (PBT) 867, 263 997,1 37 1,123,2 65 Taxes Incurred (173,4 53) (199,4 27) (224,65 3) NET PROFIT £ 693,810 £ 797,710 £ 898,612 Cash Flow Statement: CASH FLOW STATEMENT: Projected Statement of Cash Flow (Rs.) Year 0 Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales - 1,483, 852 1,632, 237 1,795, 461 Subtotal Cash from Operations - 1,483, 852 1,632, 237 1,795, 461 Additional Cash Received Sales Tax, VAT Received

- - - - New Current Borrowings 70 ,443 - - New Other Liabilities 23 ,651 - - New Long-term Liabilities 22 ,581 - - Sales of Other current assets - - - - Sales of Long-term assets - - - - Owners Equity 75, 000 - - Total Cash Received 191, 675 1,483, 852 1,632, 237 1,795, 461 Expenditures Expenditure from Operations Cash Spending £ 50,000 519, 348 529, 735 556, 222 Bill Payments 95, 741 105, 365 115, 974 Other Expenses 140, 077 174, 953 199, 427 224, 653 Subtotal spending on operations - 790, 042 834, 528 896, 849 Additional Cash spent Lease Initial Installment Sales Tax, VAT paid out

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- - Principal Repayment of current borrowings Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase of other current assets £ 65,222 Purchase long-term assets £ 25,664 Dividends Subtotal cash Spent 280, 963 790, 042 834, 528 896, 849 Net Cash Flow (89, 288) 693, 810 797, 710 898, 612 Cash Balance -£ 89,288 £ 604,522 £ 1,402,232 £ 2,300,844 Balance Sheet: BALANCE SHEET: Projected Balance Sheet (£) Year 0 Year 1 Year 2 Year 3 Assets Cash Required 67 ,123 604, 522 1,402, 232 2,300, 844 Other Current Assets 16 ,024 16 ,024 16 ,024 16 ,024 Long-term Assets 26 148 148 148,

,880 ,264 ,264 264 Total Assets £ 110,027 £ 768,810 £ 1,566,520 £ 2,465,132 Current Liabilities Accounts Payable 3 ,042 Current borrowings 22 ,000 Long-Term Liabilities Bank Loan 24 ,511 - - other 12 ,354 Capital and Reserves Capital by investors 75 ,000 75 ,000 75 ,000 75, 000 Retained Earnings (26, 880) 693 ,810 1,491, 520 Earnings 693, 810 797 ,710 898, 612 Total Liabilities and Capital £ 110,027 £ 768,810 £ 1,566,520 £ 2,465,132

Executive Summary with notes

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