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Restaurant - Fine Dining
Business Plan

Gabri's Restaurant & Lounge

1.0 Executive Summary
Highlights
2.0 Company Summary
3.0 Services
4.0 Market Analysis Summary
5.0 Strategy and Implementation Summary
5.1 Competitive Edge
5.1.1 Main Competitors
5.2 Marketing Strategy
5.2.1 Marketing Program
5.3 Sales Strategy
5.3.1 Sales Forecast
Sales Forecast
Sales Monthly
Sales by Year
5.4 Milestones
Milestones
Milestones
6.0 Web Plan Summary
7.0 Management Summary
8.0 Financial Plan
9.0 Sample Menus
5. Strategy and Implementation Summary
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5.0 Strategy and Implementation Summary[back to top]

Our strategy is simple, we intend to succeed by giving people a combination of excellent and interesting food in an environment that appeals to a wide and varied group of successful people. We will focus on maintaining quality and establishing a strong identity in our community. Our main focus in marketing will be to increase customer awareness in the surrounding communities. We will direct all of our tactics and programs toward the goal of explaining who we are and what we do. We will keep our standards high and execute the concept so that word-of-mouth will be our main marketing force. 

We will create an appealing and entertaining environment with unbeatable quality at an exceptional price. An exciting and friendly restaurant, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. All menu items are moderately priced for the area. While we are not striving to be the lowest-priced restaurant, we are aiming to be the value leader.

5.1 Competitive Edge[back to top]

Our competitive edge is the menu, the chef, the environment, the management, the service and our friendly place! We will have an international menu and our food will be made with the freshest ingredients and produce available. The chef has an excellent taste for what fine dining is and requires. Our environment is elegant and comfortable and our decor is warm and relaxing. Great service is very important to us. The management and servers will handle every detail to make customer's special evening even more special! All this and our great atmosphere will make customers want to come back again and again!

5.1.1 Main Competitors[back to top]

Our biggest competition is the town next to Long Branch, called Red Bank which has a large selection of restaurants. Currently, many people who live in Long Branch drive seven miles to Red Bank to dine out. With the redevelopment in Long Branch and with Gabri's Lounge & Restaurant, we will convince these people to stay in Long Branch and eat at our restaurant.

There are three restaurants in Long Branch that are similar to Gabri's. These are also the three most popular places in Long Branch. Each of these restaurants will be important to us. We feel the clientele they have is the class of clientele that Gabri's will appeal to.

  1. The first place is an 80 seat restaurant, open six days a week and serves lunch and dinner located uptown on Broadway. It is very busy for lunch as well as at dinner time. Their price range is $7-$15 for lunch and $12-$29 for dinner entrees.
  2. The second is an upscale lounge/food bar with a small menu. It is located in the West End district two blocks away from the ocean. They are only open for dinner. The small items on there menu range from $8-$15 and a mixed drink is $8-$10.
  3. The third place is an upscale Contemporary American restaurant at the Ocean. They are open seven days a week, dinner for two without wine averages $100.

Everyone that sells prepared meals is our competition though because we all compete for the same home meal replacement dollar. However, there are two segments of the restaurant industry that are our main competition: the casual dining restaurant concept and the fine dining value restaurant. If the value of the food and price and service is better at a fine dining restaurant than a casual restaurant, where will is a customer more likely to go?

The key is to deliver the best food at the best price with the highest level of service. This is the very definition of value. This concept is at the heart of Gabri's Restaurant & Lounge.

5.2 Marketing Strategy[back to top]

The total population in New Jersey is 8,414,350 people.

615,301 people live in Monmouth County, 50% between 25-55 years old. That is the age group that dines out two to three times a week and spends an average $795 a month on food and drinks.

There are 224,447 households in Monmouth County and an average 2.7 persons per household. The median family income in Monmouth County averages, $64,271/year. There are 636 registered businesses in Long Branch with 7,885 employees. 

We mention that there are over 200,000 Scandinavians living in New Jersey and most of them live within 30 miles of Long Branch. We will be serving some Swedish cuisine as there is no Scandinavian restaurant in New Jersey.

Our primary customer base is from Long Branch, West Long Branch, Monmouth Beach, Rumson, Little Silver, Middletown, Red Bank, Shrewsbury, Deal, Eatontown, Freehold, Oceanport, Allenhurst, & Asbury Park.

City Population Median Family Income
Long Branch 31,340 $38,651
West Long Branch 7,690 $71,852
Monmouth Beach 3,595 $80,484
Rumson 7,137 $120,865
Middletown 66,237 $75,566
Little Silver 6,170 $94,094
Red Bank 11,844 $47,282
Asbury Park 16,930 $23,081
Eatontown 14,008 $53,833
Freehold 31,537 $48,654
Shrewsbury 1,098 $86,911
Deal 1179 $58,472
Oceanport 6,146 $71,458
Allenhurst 759 $85,000

5.2.1 Marketing Program[back to top]
We will employ three different marketing tactics to increase customer awareness of Gabri's Lounge & Restaurant. Our most important tactic will be word-of-mouth/in-store marketing. This will be by far the cheapest and most effective of our marketing programs.

Word-of-mouth/In-store Marketing

  •  V.I.P. Party - We will host a V.I.P. Dinner before the 'Grand Opening.' This will serve the dual purpose of training our staff and introducing ourselves to the community. The list of individuals we will invite comes from the Chamber of Commerce.
  • Grand Opening celebration.
  • Once a month invite a new local artist to show their work in the lounge.
  • "Restaurant Night" -  Every Monday night we will have a special evening for restaurant people. A perfect night for the local area's restaurant owners and staff to get together on a night off!
  • Valentine's Day.
  • Easter dinner.
  • Swedish Midsummer party.
  • Fourth of July celebration.
  • Labor Day weekend party.
  • Wine tasting dinner.
  • Swedish SmörgÃ¥sbord.
  • New Years Eve party.
  • Special ethnic food nights.
  • Memorial Day.

Local Store Marketing

  • Make a brochure for the large hotels and popular bed & breakfast establishments in town to provide to their guests, containing interior pictures of our restaurant, menus and prices.
  • There are several nursing homes in the city of Long Branch. We will approach them to sponsor meals for the elderly. This will offer us higher visibility to a group that may not be as mobile and we'll be contributing to the community in a material way. Word-of-mouth referral is very powerful and particularly amongst the elderly to both their peers and their extended families.

Local Media

  • Newspaper campaign - Placing several large ads throughout the month to deliver our concept to local area.
  • Direct mail piece - Containing interior pictures of our restaurant, our menu, "Theme Nights," catering and an explanation of our concept.
  • Website
  • Target marketing to businesses for regular business lunch and dinner entertaining.

5.3 Sales Strategy[back to top]

Our sales plan is to establish and maintain position with our local customers. The strategy is to build more customers in order to increase revenue. Sales in our business is client service. It is repeat business. We will focus on making all our customers happy with our food, service and entertainment options.

Our strategy in the restaurant is to have an experienced staff that know the food, wine and liquor. We will train every new employee so they will fit in with Gabri's concept, which is "Wonderful food, reasonably-priced wine and knowledgeable service in an outstanding atmosphere."

 

5.3.1 Sales Forecast[back to top]

The following table and charts show sales projections for our first twelve months. Monthly restaurant gross sales are to average $68,186. That is 30 people for lunch spending approximately $15 per person, and for dinner approximately 50 people spending an average $25 per person. Catering will average $10,471/month or three parties of $3,490 each. Our total cost of goods sold is capped at 33% of total sales. We expect sales to increase 15% after Year 1. See Income Statement in the appendix for restaurant and catering sales assumptions.

Sales Forecast
 FY 2004FY 2005FY 2006
Sales   
Food & Liquor$818,230$940,965$1,082,110
Catering$125,652$144,500$166,175
Other$0$0$0
Total Sales$943,882$1,085,465$1,248,285
    
Direct Cost of SalesFY 2004FY 2005FY 2006
Food & Liquor$270,016$310,518$357,096
Catering$41,465$47,685$54,838
Other$0$0$0
Subtotal Direct Cost of Sales$311,481$358,203$411,934

Sales Monthly

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Sales by Year

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5.4 Milestones[back to top]
The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn't show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.

Milestones
      
MilestoneStart DateEnd DateBudgetManagerDepartment
Painting/Reconstruction of Restaurant10/1/20022/1/2003$80,000Wayne HolmesArchitect/Contractor
Lighting & Lamps1/1/20032/1/2003$12,000JohnManager
Office Furnitures & Supplies1/20/20031/30/2003$5,000Linda/JohnOwners
Furniture for Restaurant & Lounge2/1/20032/15/2003$40,000Linda/JohnOwners
Decorations and Cash Register2/1/20032/20/2003$15,000Linda/AndreaOwner
Production and Completion of Menus1/1/20032/1/2003$2,000LindaLinda
Buy Kitchen Supplies1/15/20032/15/2003$60,000LindaKitchen/Linda
Open Gabri's3/1/20033/1/2003$0Linda/JohnOwners
VIP Party3/1/20033/1/2003$2,000Linda/JohnOwners
VIP Party3/2/20033/2/2003$2,000Linda/JohnOwners
Upgrade Mailer3/1/20033/15/2003$0AndreaMarketing
Advertising2/1/20032/15/2003$1,500AndreaMarketing
Advertising5/1/20035/15/2003$400AndreaMarketing
Advertising9/1/20039/15/2003$400AndreaMarketing
Advertising11/15/200311/20/2003$400AndreaMarketing
Advertising12/1/200312/5/2003$400AndreaMarketing
Direct Mail2/1/20032/15/2003$1,000AndreaMarketing
Business Plan Review2/1/20032/3/2003$0LindaOwner
Website1/1/20032/15/2003$3,500JohnManager
Corporate Brochure1/1/20032/15/2003$1,500Linda DorupFriend
Brochure8/1/20038/1/2003$1,000Linda DorupFriend
New Catering Accounts (5)3/1/20035/1/2003$250LindaOwner
New Catering Accounts (5)9/1/200311/1/2003$250LindaOwner
Wine Class for all Employees2/20/20032/25/2003$1,000JohnWine Distributor
Employee Training2/20/20032/25/2003$1,000Linda/AndreaOwner/Manager
Swedish Midsummer6/20/20036/20/2003$300LindaOwner
Direct Mail8/1/20038/15/2003$400AndreaMarketing
Direct Mail11/1/200311/15/2003$400AndreaMarketing
Swedish Christmas Introduction12/14/200312/14/2003$200LindaOwner
Upgrade Mailer5/1/20035/5/2003$10,000AndreaMarketing
Totals  $241,900  

Milestones

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