Case Study:
Business Proposal Accommodating Guest Reservations
Business Proposal for an oceanfront upscale restaurant in need of an overhaul:
Our restaurant seating accommodations, as well as the method of at the waterfront needs an overhaul. The restaurant will be renovated and have a new seating arrangement shown in the accompanying attachment. The current restaurant has a problem with regards to reservations. When customers with reservation turn up, they are left waiting for the table because the previous customers take more time. The proposed arrangement will not lead to this problem. Each customer will be reserved for an hourly time slot starting from 11.00 am. The customer will be allotted a table number depending on the number of people the customer is arriving with. The schedule with seating arrangement will be prepared on a computer program and the hostess will be able to access the program on her smart phone. She will also be able to make changes in the schedule or table number and the information will be flashed to the restaurant manager. The result of the new scheduling and table arrangement program will be that the waiting time for customers will be minimized and the tables will be occupied for most of the hours the buffet is open.
The diagram of tables in the restaurant shows thirteen square tables each with a seating capacity of four persons, three rectangle tables each with a seating capacity of six persons and three round tables each with a seating capacity of eight persons. The maximum number of people who can sit at these tables is ninety four. In other words the maximum capacity of the layout is ninety four. Each table is numbered and number twenty is the buffet spread. (Please see the attachment)
Marketing:
Product: Premium buffet including crab legs, shrimp, sushi, omelet station, and carved prime ribs.
Price: $49.99 per person.
Place: Located at seafront. The restaurant has glass windows on three sides so that the beach is visible from all tables.
Promotion:
Advertisements on billboard, in local newspaper, and local TV channel. Publicity write-up in the local newspaper will increase awareness. Further, the hostess and the waiters by their behavior, helpfulness, and encouraging visitors to come again will represent personal selling. Sales promotion will be 20% discount on weekdays.
Financials:
The daily fixed cost of brunch buffet including the cost of wages, restaurant rent, and utilities is $5,000. To break even at least 100 guest must visit the oceanfront restaurant between 11.00 am and 3.00 p m. every day. The profitability of the restaurant will depend on the number of guests above 100 who visit the restaurant every day. For example, if 150 guests visit the restaurant, the profit for the day will be approx. $2,490.
The restaurant is likely to be profitable because of high visibility on the ocean beach. Further, the reputation of the restaurant will make attract customers.
References:
1. Ebert, Ronald J., and Ricky W. Griffin. Business essentials. Upper Saddle River, NJ: Pearson, 2015.
2. Butler, Roosevelt D. "So You Need to Write a Business Plan!" Journal of Small Business Strategy 14.1 (2015): 103-104.