Restaurants Example For Free

Business overview Hanoi is not only the ancient capital city of Vietnam but also the birth place of many “artists of royal gastronomy”. For many centuries, Hanoi food has been viewed by people all over the country as not only an art of cuisine but also a representation of the unique culture of Hanoi. Now there are many restaurants with the same type were openings, particularly given the strong and fierce competition and uncertainty in such a market like Hanoi.

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It’s not easy for any manager to establishment, management and has the right development strategies for a new restaurant to success. My mission in this study is based on the available data of an original restaurant in Hanoi from which to plan operation activities and prepare long-term development strategy. The restaurant I chose in this study is Sành Restaurant. (“Sành” means the gastronomy) Business Activity Sành Restaurant is located at Nguyen Thai Hoc street in Hanoi, looked as an ancient temple, harmoniously landscaped by an exquisite garden with a masterfully and tasteful decoration. The target customers are national senior customers, whose age varies from twenty five and above, middle class tourists and expatriates who are working in Vietnam long term and short-term. Sành Restaurant will be an eat-in, take-away restaurant, specializing in noon, evening and weekend leisure dining. Vision & Objectives Sành Restaurant will be an inspiring restaurant, combining a traditional and cultural atmosphere with excellent and interesting food. It is to have not only great food selection, but also efficient and professional service- customer satisfaction is restaurant top objective. Sành Restaurant will be the restaurant of choice for a mature and adult crowd, couples and singles, young and old, male or female. Sành Restaurant’s objectives for the first three years of operation include:

  • Getting break – even point and 15% market share at the first year.
  • Creating and maintaining the return of initial investment capital higher than 30% each year.
  • Keeping employee labor cost below 37% of total sales.
  • Remaining a medium sized, unique restaurant with dedicatedly selected Hanoi food.
  • Averaging sales between VND 15 billion per year.
  • Promoting and expanding Sành Restaurant concept as a unique Hanoi Old Quarter destination restaurant.
  • Expanding marketing and advertising in Vietnam and in overseas to increase our customer base.

The competitor Quan Sen restaurant: Located at West Lake area, the center of high income people. Quan Sen’s land for restaurant usage is enough wide and long for beautiful decoration and fresh air enjoyment. Furthermore, Quan Sen provides the same form service like Sành Restaurant: buffet one. Quan Sen targets customers at middle class and higher ones. It is easy to understand because each of customers’ portion includes some dishes, not individually, so it is thee package price that customers have to charge. Therefore, it would be much suitable for customers from middle and high end class to enjoy. Quan Ngon restaurant: Located on Phan Boi Chau street. Quan Ngon restaurant also targets on the middle and high end class. Quan Ngon has strengths like good condition, strong brand name and food variety. Visiting Quan Ngon restaurant, customers enjoy the dishes from Northern to Southern regions of Vietnam. Quan Ngon also has good location that it is able to attract customers to come. How Sành Restaurant is better than the competitors From the SWOT analysis (Appendix 1), strengths & weaknesses accompanying with opportunities & threats, all shows out what Sành Restaurant does is to identify its competitive advantages. It is competitive advantages that confirm the success of the restaurant in circumstance of such difficulties as high competition, fewer standard material suppliers. These three competitive advantages over its competitors below: + Unique style of restaurant: Sành Restaurant is established based on style of buffet aiming to Ha Noi traditional culture. This style is confirmed through the restaurant decoration, food and staff, which are clearly defined in furniture comprising pictures about Ha Noi ancient, going along with beautiful patio and garden and Ha Noi cuisines, in addition to Ha Noi knowledgeable & skillful staff. This specialization will make customers feel strange, warm, relaxing, convenient, and familiar like a whole family, adding to knowledge of Ha Noi, so that customers cannot forget such Ha Noi in this restaurant. + Beautiful location: Located at Nguyen Thai Hoc street, Ha Noi, the restaurant is surrounded by The Old Quarters, where traditional Ha Noi culture is strongly insisted. This is the advantage of Sành Restaurant in attracting tourists, Hanoians coming to the restaurant to enjoy this atmosphere. + Food quality: It is certain that many customers nowadays are aware of food quality in purchasing and processing. Sành Restaurant choose the most securable material suppliers and build the most securable processing that staff has to follow. The security of food quality is insisted by certificate of authorization and publication. Sành Restaurant’s customers The target customers of Sành Restaurant are:

  • Tourists: Ha Noi is a city that attracts many tourists during seasonal time. Sành Restaurant will be a destination with its attractive atmosphere, Ha Noi traditional menu and outdoor patio.
  • The Businessmen/women: They work hard all day. They need a warm & polite atmosphere to relax or help them impress their clients and prospects. They are the people that spend the most on drinks, food and tips.
  • Happy Couples: The restaurant will have an intimate, romantic, sophisticated atmosphere that encourages people to bring dates and to have couples arrive. Sành Restaurant wants to be a search place where people meet each other and develop a network of Ha Noi lovers. These young couples are generally very successful but balanced and won’t be spending as much on drinks.
  • The Family: Sành Restaurant is the perfect place for a family dinner. Families will come for the accommodative menu and friendly service. The excellent value in their meals will keep Sành Restaurant in favor with parents.
  • High – end singles: The restaurant will attract them with décor and layout. Hanoi cuisines menu, striking artwork, wine tasting evenings and events, excellent service and engaging clientele will confirm the feeling of being in the coolest place.

Sành Restaurant will focus on attracting a wide and diverse clientele ages 25 – 60 with an annual income of at least sixty million dong. The restaurant wants the tourists, businessmen/women, happy couples, high – end singles, families with money, wealthy image seekers and compulsive spenders. The restaurant focuses on these specific groups because these are types of people who frequently come to restaurants. They are the ones who are willing to spend their money on good dinning and service at a value price. The restaurant generally knows the characteristics of its clientele with the available demographics. Our geographic include people from local and international area. The characteristics of this clientele will be people who are creative, entertaining and sophisticated diners. Marketing Mix Product Strategy Sành Restaurant always keeps in mind that we do not only provide customers product basically but also its benefits changing to customers’ needs. Reminding to the restaurant, everybody must think of food. A buffet party includes a variety of Ha Noi cuisines is an attractive one, meeting a wide and diverse clientele. Around fifty dishes of Ha Noi cuisines will make customers the chance to choose and get free of limitation to dishes. Sành Restaurant has an experienced staff of cooking with much knowledge about Ha Noi culture. It is the advantage of the restaurant to decorate the dishes in specific meanings, for example flying dragon or lotus image. Besides that, it is memorable for customers to refer to food quality. Modern technology, well – trained staff, clear processing, well – known material suppliers and understanding of hygiene is core factors to create quality dishes securely. Generally, that product has its deliciousness, its quality of hygiene, its meaning feature as well as its fame is Sành Restaurant’s product decisions in basic. Pricing Strategy Costs set floor for Sành Restaurant can charge for products. The restaurant needs to charge price that both covers all costs for producing, distributing & selling products and provides a fair profit. Sành Restaurant has a relationship with well – known material suppliers to make sure enough food for processing at reasonable input prices. In basics, target customers of Brother’s Cafe are the people from 25 – 60 years old with average annual income at least 60 million dong. This is medium annual income that a large number of people can reach it. So they can afford the price at medium level. In addition, people at the age from 25 – 60 years old are the persons who experience the value of money. Therefore, they are punctiliously taken care of the real value that they can get from products. Moreover, customers will have philosophy of comparison this service to the others. At the present, Quan Ngon, Quan Sen charge prices at medium level. Therefore, it is considerable for Sành Restaurant to charge price at competitive one. After considering all these factors, Sành Restaurant decides to charge price following the market – penetration: a low price to attract large number of buyers and large market share, in addition to cover total costs of productions, consumers’ perception of price and competitors’ prices to justify reasonably. Place strategy The method of distributing products & services that Sành Restaurant implements is the direct one. Therefore, image of the restaurant accounts significantly in recognizing “What Sành Restaurant is like?”. Located at Nguyen Thai Hoc street, Ha Noi, Sành Restaurant takes the advantage of city center surrounding Ha Noi culture value to attract target customers. Despite being set up on a noisy and crowded and convenient street, Sành Restaurant is decorated in quiet atmosphere around 200 square meter. The most special areas Brother’s Cafe aims to build are the second floor, which tells us a history about Ha Noi in subsidization phase and the patio & garden, which tells us peaceful & relaxing time. Coming to Sành Restaurant, customers will find the differentiation, exactly the real value they would get. Promotion strategy Sành Restaurant will implement three promotion tactics to increase customers’ awareness of the restaurant: Word – of – mouth

  • VIP party: Restaurant will host a VIP Dinner before the Grand Opening with the guests coming from VCCI.
  • Grand Opening celebration.
  • Restaurant Night: Every Saturday, Brother’s Cafe celebrate a Restaurant Night with special programs
  • Holiday celebration.

Local Store Marketing

  • Make brochures for the hotels, travel agencies to provide to their guests and for companies to advertise to their employees. Selected lists of companies come from VCCI information.
  • Make leaflets to spread house holds in the city
  • Take part in tourism & business conference to introduce our service.

Local Media

  • Advertisements on newspaper for one week before the Grand opening.
  • Direct mail piece to business man.
  • Website, Facebook.

The founding team The business structure of Sành Restaurant applies the flat model with three levels. This kind of structure offers the decentralization of management and fits with the hospitality service industry characteristics. The Managing Director holds the highest level and responsibility to control overall business activities. He is assisted by a managerial team covering four functional departments. The Office Manager is in charge of all administrative works including general affairs, human resources, purchasing, accounting and cashiers. The Marketing & QA Manager takes full responsibility for marketing activities and promotes Sành Restaurant’s image and brand. The Front Manager supervises the hospitality delivery services including serving food, beverage and entertainment to customers. The Chef manages the kitchen department for making the food. At its establishment, Sành Restaurant will have total 60 employees. The main job duties for each positon is described at Appendix 2. Assumptions Actually, there are some assumptions needed when building the financial plan for Brother’s Cafe . The following is external assumptions:

  • The economy that Sành Restaurant operating is strong enough so that during the first 3 years, there is no sudden economic factor affecting it.
  • There is no sudden change in the trends of traditional culture orientation so that the tastes of customers stay the same.
  • All the economic factor changes in the year 4 because of slide inflation of the business
  • There is almost no changes of the country’s policy that affect considerably on the business success and operation.
  • There is no calamity such as earthquake, typhoon ruin the business

The following the other assumption relating to Sành Restaurant business:

  • The business operates within 10 years and is divided into 2 periods, the first three years and the remaining.
  • Constructions and buildings are depreciated over 5 years.
  • Equipments are depreciated over 4 years.
  • Sành Restaurant applies straight-line depreciation method.
  • Other costs such as set of bowl, maintenance cost… are consumed in 1 year.
  • Land rental fee is paid on 6-month basis in advance and in the first day of each 6 month period.
  • Salaries are paid on the first day of next month.
  • Utilities costs such as water, electricity, internet, phone cost, etc, are paid at the middle of next month.
  • Start-up costs such as marketing costs, business registration costs… are incurred at the end of the first month.
  • To maintain the service quality and reach the cost efficiency, materials (food, ingredients, etc) are stored in 3-day basis.


The overview of Brother’s Cafe restaurant
Location Nguyen Thai Hoc, Ha Noi
Rental fee VND330 Million per year
Capacity 360 seats
Numbers of customer at noon 108 customer
Numbers of customer in the evening 144 customers
Sành Restaurant
Profit and Loss Statement
For the Period ended Year One
Sales $16,329,600,000
Total Sales $16,329,600,000
Depreciation costs $318,500,000
Maintenance cost $200,000,000
Land rental fee $333,000,000
Fixed salary $2,114,800,000
Utility costs $1,200,000,000
Materials $6,000,000,000
Other costs $2,490,100,000
Expenses total $12,656,400,000
Net Profit before Tax $3,673,200,000

Risk & risk management Seasonality In tourism industry, seasonal factor can create serious problems for businesses during off-seasons due to the sharp decrease in the demand of customers. In fact, Hanoi attracts more tourists in autumn and winter occasion of public national holiday. The tourist number is lower in spring, and summer, and these seasons are considered as off-seasons of Sành Restaurant. Moreover, the Sành Restaurant business suffers not only from the customer volume but also the seasonality and availability of foods and beverages. Sành Restaurant business plans to address these problems with some solutions to remain profits and minimize the loss. Sành Restaurant will try to earn large profits in the high-season to subsidize for the situation in the low seasons. Sành Restaurant will use a number of part-time workers in the labor structure in the high-season. From this policy, Sành Restaurant can reduce the labor need in the low season or difficult business situation. Therefore, business does not have to pay salary without breaking the legal issues. For the food material seasonality, Sành Restaurant business has plan to use the appropriate material substitution or offer the diverse menu items. Food safety Sành Restaurant business plans to meet regulatory requirements for food safety for the operation. Sành Restaurant business sets an effective quality control system of assuring the good sanitation. Every department and employee in the business approves and takes this control system for the operation direction. Specifically, Sành Restaurant goes some following ways that help the business always offer safety foods for customers. These are:

  • Inspecting all incoming ingredients, compressed gas, packaging, labels, and making the product returns for those with signs of counterfeiting.
  • Food and beverage materials are preserved in dry, frozen or refrigerated storage before using for the cooking.
  • All cooks will be trained carefully to cook foods to appropriate temperatures to ensure the taste and quality of the foods.
  • The delivery process keeps cold foods cold and hot foods hot prior to serving the customers.
  • Cleaners, waiters, kitchen helpers or dishwashers scrub, clean and sanitize the counter, floors, equipment and facilities routinely. In addition, they also dispose the garbage properly and keep dumpsite areas clean
  • Sành Restaurant business will control to make sure that all employees follow rules of sanitation and proper food handling.

Natural disaster and disease The restaurant business has to cope with other kind of risks such as crop damage or epidemic diseases. These kinds of natural disasters can cause the material shortage for the business operation, high material price or bring the worrying psychology for the customers. Although for Sành Restaurant, these disasters belong to the external factors but they will reduce the customer volume and the business benefit as well. Therefore, Sành Restaurant plans to offer flexible directions to readily face with these unexpected situations such as diverse menu items. In addition, Sành Restaurant will give the marketing plan to push the consuming power for other items along with build the customer trust.

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