1.0 Executive Summary
Buono Vita Restaurant and Café will be the leading gourmet pizza and pasta restaurant in Canberra. The new line of innovative, premium, pasta dishes include pesto pasta with fresh garlic and marinated grilled chicken, fresh seafood tossed in garlic, white wine, parsley & Napolitano sauce and fresh mussels and clams in a marinara sauce.
Buono Vita Restaurant and Café also serves distinct salads, desserts, and beverages. Buono Vita Restaurant and Café will reinvent the pasta and pizza experience for individuals, families, and take out customers with discretionary income by selling high quality, innovative products at a reasonable price, great tasting dishes, a convenient location within the Canberra city central, and setting an industry-benchmark for customer service.
As well serving meals, Buono Vita will have a large selection of coffees and beverages freshly brewed for the best resulting taste. The café section will be open from breakfast, all the way through until closing time.
Marketing will play a fundamental role in the success of Buono Vita Restaurant and Café. Buono Vita must build a product about the services it offers by greatly promoting itself through local television, radio, and print advertising. Marketing efforts are just the beginning by the time a potential customer enters Buono Vita Restaurant and Café for the first time. A strong importance will be put on keeping customers and building product loyalty through some programs focused on staffing, experience, and customer satisfaction.
2.0 Introduction
3.0 Objectives of the Marketing Plan
Buono Vita’s advertising budget is very limited, so the advertising program will be very simple until increasing growth in profits. Buono Vita’s will do direct mail, banner ads, and inserts and hopefully website launch in the upcoming months of development. The main marketing objectives for Buono Vita are as follows:
1. Maintain positive, steady, growth each month.
2. Generate at least $100,000+ in sales per month.
3. Experience an increase in new customers who are turned into long-term customers.
We have split up our other objectives into smaller parts. These are as follows:
3.1 Financial Objectives
1. A double-digit growth rate for each future year.
2. Reduce the expenses for the restaurant through disciplined growth.
3. Continue to decrease the variable costs associated with food production.
3.2 Increases in Revenue
Three ways to increase a Buono Vita’s revenue once the business has started:
• Raise prices
• Increase customer quantity (gain new customers through advertising and increase repeat purchases while retaining existing customers)
• Increase the average ticket with add-on selling and up selling (selling, marketing and product merchandising)
3.3 Regular and Effective Advertising
Regular advertising and promotion is expensive and but absolutely necessary to build the restaurants business. Some promotional activities that can be carried out are:
• Coupon redemptions
• New customers generated by a promotion
• Lifetime value of customers by promotional activity
• Analysis of orders (average order size, total orders) by promotional activity.
3.4 Lifetime Value
The value of a new customer is important, but the lifetime value of an existing customer is even more important to this business. Buono Vita will use a great deal of time and money, once profitable, to get new customers to the exclusion of improving relationships with customers they already have.
3.5 Consistent, Reliable Source of Orders
Every restaurant manager recognizes their customers who order consistently. They know that the majority of their orders every day are placed by existing customers. Existing customers are the most consistent, reliable source of any regular business. Especially in the restaurant business.
4.0 Mission Statement
Our mission is to be the best value for money restaurant in Australia. We will accomplish this by exceeding our guests escalating expectations for quality service, good food, distinctive ambiance and value, and by providing our employees with respect, career opportunities, and an environment for personal growth.
5.0 Company Description
Buono Vita Restaurant and Café
Type: Italian pasta and pizza restaurant with café.
Mission: Our mission is to be the best value for money restaurant in Australia. We will accomplish this by exceeding our guests escalating expectations for quality service, good food, distinctive ambiance and value, and by providing our employees with respect, career opportunities, and an environment for personal growth.
Address: Civic…??
City, A.C.T 2600
Owners: Buono Vita restaurant and café is owned and ran by a partnership by
Rebecca and Phillip.
Concept: Authentic, quality Italian food with a service second to none.
Hours of Operation: Open for lunch and nightly for dinner. Cafe service operates between
8am through to 5pm.
Décor: Buono Vita has a stylish and lively atmosphere. The walls of the restaurant are painted a modern evocation with classic earth tones and accented with a brushed steel gleam. Buono Vita will also allow for undercover - outside dinning with music through out the whole restaurant to suit the dining experience.
Seating Capacity: 90 dining spaces available inside + 40 outside.
Credit Cards: Buono Vita accepts Visa, MasterCard, and American Express.
Reservations: Reservations are accepted but not required. Please call ??
For more information, contact: ?? on (02) ??? ???? Email: bellavita@hotmail.com.
Or visit us online at www.bellavita.com.au
6.0 Background of Organization
7.0 Environmental Impact:
7.1 Climate Changes:
Climate changes can impact on the successful running of a restaurant through such things as food, location, suppliers, inside structure fittings; i.e. electric fans, kitchen appliances, air conditioning,
Food: Menu Choice
The food that a restaurant chooses to serve is usually chosen on basis of style of restaurant, Italian, Asian, etc. If a restaurant chooses to serve a specific type of cuisine then it would be appropriate for them to choose food that will suit the current climate of their restaurant. Food that spoils easily and must be kept at particular temperatures at all times would not be advisable to sell in hot tropical climates. Refrigerators and freezers stop food from spoiling but in hot weather and humid conditions technology cannot always prevent food from spoiling. The dangers of serving contaminated food should be taken into account when deciding what to serve and how to serve it.
In the case of Rebecca and Phillip’s restaurant, located in Canberra, there is little that can’t be served, keeping in mind that the trend for their menu is traditional Italian cuisine. Canberra offers warm summers and moderately cold winters meaning that a range of Italian foods can be served all year round. The summers are not stiflingly hot and the winters are durable without heavy overcoats. The bearing that the changing climate will have on the restaurant is minimal and a consistent and tempting menu can be created year round.
Food: Suppliers
Climate change throughout the country and world can impact on the running of a restaurant. Prices of food can fluctuate through seasons and climate changes. If a natural disaster has occurred in the region from which a supplier receives food from higher prices will be charged because there is a shortage. In order for farmers to earn enough money to cover their lost crops a higher price will be charged to the supplier, who in turn charges a higher price to the restaurants who are purchasing their goods. Seasonal menu’s can also be constructed to accommodate what is available on the market at the time. In summer many fruits are widely available, but in winter only particular fruits can be purchased for relatively the same price and quantity. Menu’s can be changed in order to provide the restaurant with the ability to save money and maintain a fresh and interesting menu for customers. A change in menu can also act as a revitalising technique to attract new customers and regain interest from existing customers.
Rebecca and Phillip may have higher costs during the winter because of seasonal fruits and vegetables being scarce in comparison to their summer abundance. Located in Australia the current drought situation will bring steeper prices on top of seasonal availability, but the produce the restaurant will require is still available. The cost and quantity of produce and goods required to create the traditional Italian menu can be balanced through careful consideration of price. How much Rebecca and Phillip charge per meal and beverages, alcoholic and non-alcoholic, can help to achieve a harmony between the necessity of ingredients and the natural disasters that are currently affecting the availability and quality of produce.
Location:
The location and design of the restaurant exterior and interior can also be influenced by the climate. Whether it is a changing climate or not a restaurant should accommodate customers and thus should be designed and structured in a way that best caters for the needs of the customers and staff. As an example if a restaurant is in a hot climate it would be advisable that plenty of shade is available in the outdoor seating and air is able to circulate throughout the seated customers whilst outside, whether through the use of an electric fan or wind channelling. Interior comfort for guests and staff should also be considered in the planning and design of a restaurant. A cool indoor seating area would be advisable as would circulation of air provided by an air conditioning unit.
Staff also should be catered for as they are the people who ensure the restaurant’s service and viability. A kitchen will always be hot, but excessive heat can be damaging to staff who work in the ‘back of house’. A design that can improve the jobs of staff in the kitchen will lead to improved morale and productivity.
In Canberra a cool shady exterior seating area is ideal for the hot summers that can occur, in winter a moderately warm interior seating area is preferable. A versatile designed building will be ideal for Canberra’s consistently unpredictable weather. An easily convertible structure that can cater for Canberra’s weather from warm to cool will be the most efficient. For example materials and structures that can provide wind breakers for the outdoor seating during winter. This area is provided for customers who prefer to sit outside, or who smoke so have no alternative but to sit outside. An unpleasant cold wind can drive customers to alternative eateries. During summer a shade providing outdoor structure is necessary to shield customers from the hot sun. Summer can be hot and as a result unpleasant when eating outdoors, Buono Vita can use this as an opportunity to draw more customers to them. With the right design customers can enjoy a hot coffee outdoors in the middle of summer without it being unbearably hot and sticky.
Because of the location of Rebecca and Phillip’s restaurant is currently under development the way in which the structure is built is fairly flexible. Architects have designed a solar-energized house which relies on the earth’s consistent underground temperature to maintain coolness in summer. Basing the restaurant structure on this idea may aid in the emphasis of importance of cost management and also year-round comfort for building design. (Green Home Building, www.greenhomebuilding.com/keepcool.htm, John McMillian, 2005.)
A solar heating structure can also be combined with the under-ground temperature structure to have comfort all year round. Using insulating materials that are becoming more apparent in the developing solar energy industry, a building can be designed to make the most of the sun and earth. (Green Home Building, www.greenhomebuilding.com/heatwithsun.htm, Daniel Chiras, 2005.)
7.2 Government Regulations and Legal Considerations
When setting up and managing a restaurant there are many legal requirements that Buono Vita must abide by to establish a respectable and professionally run establishment. Buono Vita has an on-going responsibility to comply with laws and regulations that apply to the A.C.T. Small business ownership laws and regulations in the A.C.T cover all areas of management and include Wage and hour regulations, Discrimination, Taxation obligations and public health. Since there are numerous laws and regulations it is important for Buono Vita as a highly regarded Italian restaurant in the A.C.T to keep up to date and abide by all laws and regulations.
In the A.C.T there are certain requirements that attain to all small business. Buonu Vita is required to abide by all such requirements set out in the A.C.T for a partnership business structure. Buono Vita will be required to register a business name through the Register General’s Office and register for an Australian Business Number and for the GST. Further from this Buono Vita will acquire the appropriate licences and permits related to restaurant ownership. A basic requirement for Buono Vita is a Food Business license and may also require an outdoor café license and liquor license.
Above Buono Vita’s responsibility to abide by small business regulations there is also regulations that is specifically for restaurants and café type establishments such as the Public Health (Eating Houses) Regulations made under the Public Health Act of 1928. This act contains regulations in regards to such aspects which include the preparation of meals and cooked meats in hotels restaurants and cafés and even the operation of soda fountains, these regulations are found in part VI of the Public Health (sale of food and drugs) regulations. When dealing with government regulations and laws it can become a very daunting task especially in the process of establishing a business.
Buono Vita has a great responsibility to comply with A.C.T laws and regulations and to put in safeguards to prevent any unknowing breaches or neglect to these laws. The first safeguard for Bella Vista is therefore to acquire the services of a trusted solicitor. The solicitor is put in place to make sure that Buono Vita complies with relevant changing laws and other important legal duties such as writing and preparing contracts, forming a business structure, registration forms, contracts, leases, licenses, and registration and employment agreements.
8.0 Major Marketing Issues and Problems
Difficulties and risks:
• Problems generating visibility.
• Overly aggressive and debilitating actions by competitors.
• An entry into the pasta and pizza restaurant market of an already existing and expanding market.
Worst case risks may include:
• Determining that the business cannot support itself on an ongoing basis.
• Having to liquidate equipment or intellectual property to cover liabilities.
9.0 Market Growth
In 2001, from research, the global pasta and pizza market reached $8 billion dollars. Pasta sales are estimated to grow by at least 10% for the next few years. This growth can be attributed to several different factors. The first factor is an appreciation for health conscious food. While not all pasta is "good for you," particularly the cream based sauces, pasta can be very tasty yet health conscious at the same time. Pasta is seen as a healthy food because of its high percentage of carbohydrates relative to fat.
Another variable that is contributing to market growth is an increase in the number of hours our demographic is working. As the number of work hours increases, there is a high correlation of people that eat out at restaurants. This is instinctively explained by the fact that with a limited number of hours available each day, people have less time to prepare their meals and eating out is one way to maximize their time.
10.0 Market Trends
The market trend for restaurants is headed toward a more sophisticated customer. The restaurant patron today relative to yesterday is more sophisticated in a number of different ways.
• Food quality. The preference for high-quality ingredients is increasing as customers are learning to appreciate the qualitative differences.
• Presentation/appearance. As presentation of an element of the culinary experience becomes more pervasive, patrons are learning to appreciate this aspect of the industry.
• Health consciousness. As Australians in general are more conscious of their health, evidenced by the increase in individuals exercising and health club memberships, patrons are requesting more healthy alternatives when they eat out. They recognize that an entree can be quite tasty, and reasonably good for you.
• Selection. People are demanding a larger selection of foods; they are no longer accepting a limited menu.
The reason for this trend is that within the last couple of years the restaurant offerings have increased, providing customers with new choices. Restaurant patrons no longer need to accept a limited number of options. With more choices, patrons have become more sophisticated. This trend is intuitive as you can observe a more sophisticated restaurant patron in larger city markets where there are more choices available.
11.0 Competitor Analysis
12.0 Competitive Advantage of the Organization
Buono Vita will position itself as a reasonably priced, upscale, gourmet pasta restaurant. Eugene consumers who appreciate high-quality food will recognize the value and unique offerings of Buono Vita.
Buono Vita’s positioning will leverage their competitive edge:
• Product. The product will have the freshest ingredients including homemade pasta, imported cheeses, organic vegetables, and top-shelf meats. The product will also be developed to enhance presentation, everything will be aesthetically pleasing.
• Service. Customer service will be the priority. All employees will ensure that the customers are having the most pleasant dining experience. All employees will go through an extensive training program and only experienced people will be hired.
By offering a superior product, coupled with superior service, Buono Vita will excel relative to the competition.
13.0 Target Market Segments:
Target Market: By Demographics
Age: Youth, Couples and Family
Family Size: Families, Professional Couples,
Income: Lower Moderate Income earners, Middle Moderate Income earners, Higher Moderate Income earners, Lower High Income earners.
Rebecca and Phillip’s target market is anyone who has the desire to eat. A concentrated strategy has led to segmenting a market by particular demographics creating a new target market of customers who are youth, families and professional couples. But also customers who have incomes that are around an average amount. Because the business is a restaurant, segmenting the target market but still using the same marketing mix to appeal to all the selected customers is possible. Buono Vita selected particular groups of the market to focus on because of their trend to enjoy eating out. The youth of Canberra are often seen enjoying a coffee and lunch with their friends; it is a form of socializing. Restaurants are also often viewed as family places, and it is often for a special occasion that families come to restaurants to celebrate. Professional couples (without children, otherwise they would be classed under families) eat out often, they do not have a family to look after and often it is tiresome to cook for only two people so eating out at a pleasant café or restaurant is often the solution to a recurring problem. Buono Vita has focussed more on the professional couples as a market, followed by families and then youth. The reason behind this is that professional couples are found to have more money to spend on a ‘luxury’ item such as a dining out experience. Families tend to spend more on food that can be cooked in the home but a consistent income is more apparent in families than in the youth. It is because of this financial incapacity of the youth that they are not targeted quite so much as the alternate subjects in the segmented target market. Though their input and enjoyment of Buono Vita is still important, the restaurant should be principally seeking out customers who can consistently contribute to their profit margin; families fill these criteria more adequately than youth and professional couples even more so. This is shown in Table ….
The average income for men in the income year of 2000/01 was $38 000, the average income for women in the income year was $26 000, making the total average income for men and women $32 000. This means that people earning from $26 000 to $38 000 a year are included in Buono Vita’s segmented target market. People who also earn a similar amount to the average figures are also targeted by Buono Vita’s marketing mix. This includes Lower High Income earners.
Table 1. Average Taxable Income, by sex, through the income years of 93/94 to 00/01
(www.ato.gov.au)
This has excluded customers who are included in the high income earners percentile and customers who earn a minimum income. This is because Buono Vita offers quality good and value for money prices. Some meals are more expensive than others because of the time taken to cook, and the ingredients that are needed to create the particular dish. Buono Vita caters for formal, informal and café style dining. High income earners are not specifically targeted because the price and status of Buono Vita does not cater for the specific needs of high income earners. If the restaurant did just target the high income earner it would alienate the rest of the target market and would have to rely on only one segment of the target market. When first entering the restaurant industry a reputation must first be established before reliance on only one type of customer can occur. Profits must be made quickly and rise steadily, otherwise the restaurant may not breakeven and in effect be forced into bankruptcy.
No one is excluded by the restaurant on the basis of how many people are in their family, whether they are a part of a couple or where they reside. Because Buono Vita is located in the city, the restaurant is relatively central to all of Canberra’s residents meaning easy access from wherever a customer lives.
14.0 Marketing Mix and Recommendations
Buono Vita’s marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service.
14.1 Pricing: Buono Vita’s pricing scheme is that the product cost is about 40% of the total retail price.
14.2 Distribution: Buono Vita’s food will be distributed through a take out model where customers can call in their order and come to the restaurant to pick it up; come into the restaurant, place the take out order and wait for it to be completed; or come in and dine at the restaurant.
14.3 Product: All products from Buono Vita will have the freshest ingredients. This includes homemade pasta, imported cheeses, organic vegetables, and the best top-shelf meats. The product will also be developed to enhance presentation.
14.4 Advertising and Promotion: The most successful advertising will be banner ads and inserts and pamphlets as well as a Television advertising and newspaper reviews with either local papers or health and life style magazines.
14.5 Customer Service: Obsessive customer attention is the tune. Buono Vita’s philosophy is that whatever needs to be done to make the customer happy must occur, even at the expense of short-term profits. In the long term, this investment will pay off with a fiercely loyal customer base that is extremely vocal to their friends.
15.0 Services
Buono Vita will create gourmet pastas and salads that are differentiated and superior to competitors. Customers can taste the quality and freshness of the product in every bite. The following are characteristics of the product:
1. Buono Vita’s dough for the pasta is made with Italian semolina flour.
2. Cheeses are all imported.
3. Vegetables are organic and fresh with three shipments a week.
4. Meats are all top-shelf varieties, organic when possible.
At Buono Vita, food is not a product; the experience of dining is a service. Buono Vita will pride themselves on providing service that is on balance with fine dining. This is accomplished through an extensive training program and only hiring experienced employees.
At a Glance - The Buono Vita Restaurant:
• Location: An upscale location, with in the city central of Canberra
• Design: bright, hip, modern and clean.
• Types of transactions: Approximately 80% will dine in and 20% will take out.
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