5.5 Marketing Strategy and Positioning
We realize the success of THR will have to be achieved by doing more that serving great food, and providing friendly service. We will utilize a marketing plan to build customer traffic. At THR we will continually strive to win more customers by being proactive rather than reactive in our marketing efforts and stay current with popular industry trends. We will achieve these goals by using the following:
•Database: We will begin our campaign by marketing to our existing database of customers. We will email fliers announcing our grand opening. We will continually update our database by providing a fishbowl for business cards in the lobby and offer a weekly or monthly drawing.
•Loyalty Program/Birthday Program. THR will offer a birthday/loyalty club proving a complimentary hamburger or chicken sandwich or wrap to the for the birthday person. A recent report from the National Restaurant Association explained how this simple technique can increase revenues as much as 15% due to repeat business.
•Our restaurant team will also be active in the local community and we plan to take an active role by participating, sponsoring, and donating to local churches, sports clubs or teams in the market area.
•We will also strive to develop rapport with local business as a quick, comfortable lunch choice. In the future, we plan on establishing a marketing campaign to call on the local business in the market area, deliver samples, and encourage them to consider our restaurant as the restaurant of choice for their next business luncheon
5.5.1 Positioning Statement
THR will be the premier home-style dining restaurant in western Fort Worth. We will offer reasonably priced meals, in a warm, relaxed and comfortable setting. We have a wide selection on our menu and also have menu options for lighter fare as well as a children’s menu. We are open 7 days a week and unlike our chain competitors, our servers won’t try to be your best friend our rush you thought your meal. Our name says it all “Traditional Home-Style Restaurant - - honest to goodness food served to you by honest to goodness people!”
5.5.2 Pricing Strategy
At THR, cost accounting is important, since the profitability of individual dishes can vary significantly and will initially determine the cost of the menu items. We will take advantage of our excellent credit terms with our suppliers and will also update our menu to take advantage of seasonality for example in local produce items. We will also closely monitor the Prime Cost Report which focuses on the controllable expenses of Cost of Goods Sold and Labor. As a new start-up we can currently control employee cost by hiring family members who will work for low and reduced wages.
5.5.3 Promotion and Advertising Strategy
•Location- The restaurant will be located in a strip center at the busy intersection of Cherry road and Camp Bowie. With easy access to Interstate 30 (less than ½ mile south) and located on the “going home side” (Western Corner) of the intersection. We will have Signage on the West Roads Shopping Plaza as well as signage over our entrance
•Word of Mouth – We already have a database of existing catering customers and will rely heavily on this method to attract and grow new business.
•Participate with Costco as Small Business of the Month – We will leave our menu, a fishbowl for business cards and a small ‘homey’ display with the retailer announcing us as new entrants in the local restaurant arena.
•Direct Mail - Bulk mailing either directly to potential customers or by including a postcard in a value-pack-type mailing.
•Event Marketing -We plan on joining our local chamber of commerce and utilizing their networking services for our grand opening
5.5.4 Website
•We will stay current with industry trends and have a webpage, Facebook page and Twitter site. Our menu, map, and hours of operation will be easily accessed. In the future we may consider fax or email orders as well a phone application.
5.5.5 Marketing Programs
•Our initial marketing campaign will consist of contacting our databases clients and notifying them of our grand opening. We will seek the use of a local mailing service program to assist us in the implementation of the campaign.
•Ongoing- we will meticulously keep our database current and use the Constant Contact program
•Loyalty and Birthday Club members will notified of upcoming special menu items and to alert them of our catering service.
5.6 Sales Strategy
Customer service is of the utmost importance. Customer surveys estimate that only 1 in 20 customers that have a problem in a restaurant will tell management about it. It will be our goal to provide a wonderful home-style meal combined with superior customer service. Training programs will include teaching materials to train our employees about service attitudes, customer perception and how to handle guest complaints. Jeff and Betty will conduct periodic staff meetings intended to review policy, increase guest satisfaction and to keep a general line of communication between staff and management. All guest complaints will be acknowledged by the staff and referred to management. Programs will be in place for all types of guest complaints. More serious complaints will be documented and kept on file. Customer feedback will be accomplished by customer surveys or the use of mystery shoppers.
5.6.1 Sales Forecast
We are expecting a conservative 5% increase in sales revenues annually over the next 3 years. The growth is adjusted for inflation. With the addition of catering revenues, sales will increase by 12.93% in Year 2 and 6.02% in Year 3.
The following table shows expected Sales Forecast for the next 3 years:
Table 5.6.1 Annual Sales Forecast
Annual Sales Forecast
5.6.2 Sales Programs
We will encourage our employees to grow our customer base and provide incentives and regular bonuses to employees for referrals and repeat customers. These initiatives are still in the planning stages as we gear up to hire and staff. They will play an active role in our employee culture.
It is also anticipated that as we grow our catering business, along with our lunch business group, we will hire a sales director to facilitate this portion of the business. The sales director will be compensated similarly to their national peers (national Restaurant Association)
5.7 Legal
Initially we will be formed a sole proprietor: Jeff Wright d/b/a Traditional Home Style Restaurant. The State of Texas is a community property state. Over time, the couple plans to form a Limited Liability Company.
5.8 Milestones
Our initial milestones are as follows:
Table 5.8 Milestones
Milestones
Organization and Management
6.1 Organizational Structure
THR expects to hire 19 employees. Together, Jeff and Betty Wright will personally select each candidate. They’ve adopted an effective interview process designed to staff the restaurant with highly qualified people for each position. Each applicant will be rated and evaluated according to a pre-defined set of standards designed for each position. Background checks will be utilized for designated positions. Recruiting efforts will always center on referrals.
6.2 Management Team
The restaurant will be owned by Jeff Wright. Jeff began his restaurant career at the age of 15 working in a quick-service foodservice operation and earned his way through college as a server and bartender. After earning his degree, he worked for a regional restaurant chain and an independent fine dining restaurant. In these organizations he held the positions of Assistant Manager and then General Manager.
Betty Wright received her Culinary Degree from the Art Institute in Dallas. After graduation she was employed by a local chain restaurant and then at a Five Star Hotel in Dallas. Betty will initially be employed as the Kitchen Manager.
6.3 Management Team Gaps
Initially Jeff and Betty will fill in many of the management gaps. Over time, they have plans to hire a sales director, a general manager, and a kitchen manager.
To meet the gaps associated in payroll, inventory management, and cost accounting, the Wrights will purchase have considered a POS (point of sale system) that it simplifies communications between the kitchen and the wait staff. Orders go through the computer, directly to the kitchen printer. Another benefit of a restaurant POS programs is that it can track everything from food usage, to the most popular menu items. Because the POS system acts as a time clock, it can also help prepare payroll – which will save some money in the bookkeeping department. Along with the daily operations of running a restaurant, a POS system can organize profit and loss statement and sales tax.
6.4 Personnel Plan
Table 6.4 Personnel Plan
Personnel Plan
7.0 Financial Plan
The following sections outline our financial plan:
•Required Cost of Start-Up
•Profit and Loss
•Cash Flow
•Balance Sheet
•Financial Ratios
•Hourly Labor Costs
•Weekly Sales Projections
7.1 Important Assumptions
•Meal Price range from $8.00 - $15.00
•Average lunch price: 8.79
•Average dinner price: 13.74
•The restaurant is located in the West Roads Shopping Center and is comprised of 3,400 square feet
•The dining room will be comprised of 20 tables with a seating capacity of 86 seats and 40 available parking spaces to meet the needs of the customers.
•The restaurant will employ 19 employees
•$860,000 -1,200,000 revenue target; Industry average for casual restaurant average of $860,000.
•Annual 3% increase for inflation and 5% annual increase in revenues
•Year 2 Assumes Catering Business in Place. Assumes 4 parties monthly @ $15 per plate and $50 persons. Catering will escalate to 8 parties monthly in month 20 and then 10 parties monthly thereafter. Also assumes additional increase in staffing (4 persons to be hired at 6 hours @ $8.00 per hour.
7.2 Start-Up Costs
Total start up costs will be $363,000
5.5 กลยุทธ์การตลาดและตำแหน่งเราตระหนักดีความสำเร็จของTHR เราจะใช้ประโยชน์จากการวางแผนการตลาดเพื่อสร้างการเข้าชมของลูกค้า ที่ เราจะบรรลุเป้าหมายเหล่านี้โดยใช้ความต่อไปนี้เราจะเริ่มต้นแคมเปญของเราโดยการตลาดกับฐานข้อมูลที่มีอยู่ของลูกค้าของเรา เราจะส่งอีเมลใบปลิวประกาศเปิดแกรนด์ของเรา 5.5 Marketing Strategy and Positioning
We realize the success of THR will have to be achieved by doing more that serving great food, and providing friendly service. We will utilize a marketing plan to build customer traffic. At THR we will continually strive to win more customers by being proactive rather than reactive in our marketing efforts and stay current with popular industry trends. We will achieve these goals by using the following:
•Database: We will begin our campaign by marketing to our existing database of customers. We will email fliers announcing our grand opening. We will continually update our database by providing a fishbowl for business cards in the lobby and offer a weekly or monthly drawing.
•Loyalty Program/Birthday Program. THR will offer a birthday/loyalty club proving a complimentary hamburger or chicken sandwich or wrap to the for the birthday person. A recent report from the National Restaurant Association explained how this simple technique can increase revenues as much as 15% due to repeat business.
•Our restaurant team will also be active in the local community and we plan to take an active role by participating, sponsoring, and donating to local churches, sports clubs or teams in the market area.
•We will also strive to develop rapport with local business as a quick, comfortable lunch choice. In the future, we plan on establishing a marketing campaign to call on the local business in the market area, deliver samples, and encourage them to consider our restaurant as the restaurant of choice for their next business luncheon
5.5.1 Positioning Statement
THR will be the premier home-style dining restaurant in western Fort Worth. We will offer reasonably priced meals, in a warm, relaxed and comfortable setting. We have a wide selection on our menu and also have menu options for lighter fare as well as a children’s menu. We are open 7 days a week and unlike our chain competitors, our servers won’t try to be your best friend our rush you thought your meal. Our name says it all “Traditional Home-Style Restaurant - - honest to goodness food served to you by honest to goodness people!”
5.5.2 Pricing Strategy
At THR, cost accounting is important, since the profitability of individual dishes can vary significantly and will initially determine the cost of the menu items. We will take advantage of our excellent credit terms with our suppliers and will also update our menu to take advantage of seasonality for example in local produce items. We will also closely monitor the Prime Cost Report which focuses on the controllable expenses of Cost of Goods Sold and Labor. As a new start-up we can currently control employee cost by hiring family members who will work for low and reduced wages.
5.5.3 Promotion and Advertising Strategy
•Location- The restaurant will be located in a strip center at the busy intersection of Cherry road and Camp Bowie. With easy access to Interstate 30 (less than ½ mile south) and located on the “going home side” (Western Corner) of the intersection. We will have Signage on the West Roads Shopping Plaza as well as signage over our entrance
•Word of Mouth – We already have a database of existing catering customers and will rely heavily on this method to attract and grow new business.
•Participate with Costco as Small Business of the Month – We will leave our menu, a fishbowl for business cards and a small ‘homey’ display with the retailer announcing us as new entrants in the local restaurant arena.
•Direct Mail - Bulk mailing either directly to potential customers or by including a postcard in a value-pack-type mailing.
•Event Marketing -We plan on joining our local chamber of commerce and utilizing their networking services for our grand opening
5.5.4 Website
•We will stay current with industry trends and have a webpage, Facebook page and Twitter site. Our menu, map, and hours of operation will be easily accessed. In the future we may consider fax or email orders as well a phone application.
5.5.5 Marketing Programs
•Our initial marketing campaign will consist of contacting our databases clients and notifying them of our grand opening. We will seek the use of a local mailing service program to assist us in the implementation of the campaign.
•Ongoing- we will meticulously keep our database current and use the Constant Contact program
•Loyalty and Birthday Club members will notified of upcoming special menu items and to alert them of our catering service.
5.6 Sales Strategy
Customer service is of the utmost importance. Customer surveys estimate that only 1 in 20 customers that have a problem in a restaurant will tell management about it. It will be our goal to provide a wonderful home-style meal combined with superior customer service. Training programs will include teaching materials to train our employees about service attitudes, customer perception and how to handle guest complaints. Jeff and Betty will conduct periodic staff meetings intended to review policy, increase guest satisfaction and to keep a general line of communication between staff and management. All guest complaints will be acknowledged by the staff and referred to management. Programs will be in place for all types of guest complaints. More serious complaints will be documented and kept on file. Customer feedback will be accomplished by customer surveys or the use of mystery shoppers.
5.6.1 Sales Forecast
We are expecting a conservative 5% increase in sales revenues annually over the next 3 years. The growth is adjusted for inflation. With the addition of catering revenues, sales will increase by 12.93% in Year 2 and 6.02% in Year 3.
The following table shows expected Sales Forecast for the next 3 years:
Table 5.6.1 Annual Sales Forecast
Annual Sales Forecast
5.6.2 Sales Programs
We will encourage our employees to grow our customer base and provide incentives and regular bonuses to employees for referrals and repeat customers. These initiatives are still in the planning stages as we gear up to hire and staff. They will play an active role in our employee culture.
It is also anticipated that as we grow our catering business, along with our lunch business group, we will hire a sales director to facilitate this portion of the business. The sales director will be compensated similarly to their national peers (national Restaurant Association)
5.7 Legal
Initially we will be formed a sole proprietor: Jeff Wright d/b/a Traditional Home Style Restaurant. The State of Texas is a community property state. Over time, the couple plans to form a Limited Liability Company.
5.8 Milestones
Our initial milestones are as follows:
Table 5.8 Milestones
Milestones
Organization and Management
6.1 Organizational Structure
THR expects to hire 19 employees. Together, Jeff and Betty Wright will personally select each candidate. They’ve adopted an effective interview process designed to staff the restaurant with highly qualified people for each position. Each applicant will be rated and evaluated according to a pre-defined set of standards designed for each position. Background checks will be utilized for designated positions. Recruiting efforts will always center on referrals.
6.2 Management Team
The restaurant will be owned by Jeff Wright. Jeff began his restaurant career at the age of 15 working in a quick-service foodservice operation and earned his way through college as a server and bartender. After earning his degree, he worked for a regional restaurant chain and an independent fine dining restaurant. In these organizations he held the positions of Assistant Manager and then General Manager.
Betty Wright received her Culinary Degree from the Art Institute in Dallas. After graduation she was employed by a local chain restaurant and then at a Five Star Hotel in Dallas. Betty will initially be employed as the Kitchen Manager.
6.3 Management Team Gaps
Initially Jeff and Betty will fill in many of the management gaps. Over time, they have plans to hire a sales director, a general manager, and a kitchen manager.
To meet the gaps associated in payroll, inventory management, and cost accounting, the Wrights will purchase have considered a POS (point of sale system) that it simplifies communications between the kitchen and the wait staff. Orders go through the computer, directly to the kitchen printer. Another benefit of a restaurant POS programs is that it can track everything from food usage, to the most popular menu items. Because the POS system acts as a time clock, it can also help prepare payroll – which will save some money in the bookkeeping department. Along with the daily operations of running a restaurant, a POS system can organize profit and loss statement and sales tax.
6.4 Personnel Plan
Table 6.4 Personnel Plan
Personnel Plan
7.0 Financial Plan
The following sections outline our financial plan:
•Required Cost of Start-Up
•Profit and Loss
•Cash Flow
•Balance Sheet
•Financial Ratios
•Hourly Labor Costs
•Weekly Sales Projections
7.1 Important Assumptions
•Meal Price range from $8.00 - $15.00
•Average lunch price: 8.79
•Average dinner price: 13.74
•The restaurant is located in the West Roads Shopping Center and is comprised of 3,400 square feet
•The dining room will be comprised of 20 tables with a seating capacity of 86 seats and 40 available parking spaces to meet the needs of the customers.
•The restaurant will employ 19 employees
•$860,000 -1,200,000 revenue target; Industry average for casual restaurant average of $860,000.
•Annual 3% increase for inflation and 5% annual increase in revenues
•Year 2 Assumes Catering Business in Place. Assumes 4 parties monthly @ $15 per plate and $50 persons. Catering will escalate to 8 parties monthly in month 20 and then 10 parties monthly thereafter. Also assumes additional increase in staffing (4 persons to be hired at 6 hours @ $8.00 per hour.
7.2 Start-Up Costs
Total start up costs will be $363,000
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