X Concept: A Mediterranean Restaurant Concept Prepared for Professor of Restaurant Management HMT 410 DeVry University – Online Prepared by Student: Prepared on xx xx xxxx TABLE OF CONTENTS Introduction Concept Development Site Selection Market Analysis Competition Analysis Financial Analysis License & Approvals Design, Furnishings & Equipment Menu Development Employment of Key Personnel Selection & Training of Key Personnel References Introduction My name is XXXXX and I would like to present to you the idea of starting a distinguished restaurant concept called XXXXX cuisine.
XXXXX will bring the taste of true Lebanese food into the core of the Phoenix metro area. XXXXX is designed to create a new cultural atmosphere. A true fashionable Lebanese restaurant, XXXX will be serving fresh Lebanese items all made on the premises from scratch. In addition, this true Lebanese ethnic restaurant will present a healthful fare with a menu that will be creative, carefully designed, and attractive. The ingredients will be interchangeable and foods will come from local and regional suppliers.
The emphasis on healthy eating and the preference for organically grown produce will be clearly displayed to the customers and to stakeholders. The menu will revolve around true Lebanese cuisine intertwined with a fine selection of wine, soft and alcoholic beverages. XXXXX will set the mood of a genuine Lebanese culture with its Phoenician decor and refined interior architecture, in addition to its lighting and comfortable seating. The emphasis on the Lebanese culture will be clearly displayed inside the restaurant and it will show the uniqueness of XXXX.
Concept Development What makes the name XXXX Mediterranean restaurant so attractive? The restaurant will offer a style of service mixed between French style and American style (Walker 303-304). In the French style the food is prepared and completed on a “gueridon” and then attractively presented to the guests. While in the American style, the food is prepared and dished into individual plates carried from the kitchen to the guests. Having a mix of the two services is effective since it allows the guests to interact a bit more with the servers and vice versa.
Site Selection XXXX will be less than three miles from the Chandler Fashion Square which includes the luxurious Chandler Fashion Mall. The location is strategic since it will be 10 miles from the Arizona State University Stadium, 12 miles from Golf Land/Sun splash, and 15 miles from the Desert Botanical Museum and Old Town Scottsdale. This location, tentatively aimed at being built in 2007, will be primarily used as a major shopping center and for retail purposes according to the brokerage company DeRito.
The property is surrounded by high-density housing, offices, and high-tech employment. There is a substantial frontage on both arterials, and a ramp onto the Loop 202, Santan Freeway located one mile to the south, which makes this site easily accessible (“DeRito Partners, Inc”). As a result of the numerous advantages that this geographic location presents, I cannot but reaffirm that this particular site would turn out to be successful for Blazing Breeze’s future operations. Market Analysis One important step in the market analysis is to determine the target market.
My target market will consist primarily of a local middle-aged medium to high income population. The Second target will comprise families of medium income. Third, the Middle Eastern population located in the Phoenix Metro. Fourth, corporate groups that are normally not sensitive to price. My national target market will encompass a population of corporate groups especially with all the high-tech industries in the area that were mentioned earlier. A second national target market would be an upper scale population of tourists who are also not sensitive to price.
The marketing plan is the second step in this segment which we need to establish. In order to attain an effective marketing plan I will establish corporate objectives; I will perform a Strength Weaknesses Opportunities and Threats (SWOT) analysis; I will then move to marketing objectives and strategies; I will estimate expected results; I will identify alternative plans and mixes; and finally I will form a marketing budget to ensure that each item is fully accounted for and no damages are made to the company’s long term objectives. Competition Analysis
After careful research, there are ten top competitors that XXXXX will have in the city of Chandler. In order of importance, those are: My Big Fat Greek Restaurant, Barcelona of Chandler, The olive Garden, Naples Ristorante, CFu Gourmet, Fleming’s Prime steak, Outback Steakhouse, The Cheesecake Factory, The Elephant Bar, and PF Chang’s (“Yahoo! Travel”). The first four types of restaurants are the most likely to form a major competition since their major theme revolves around Mediterranean style of cooking, and they are considered as upscale dining restaurants.
The remaining six restaurants also form a somewhat considerable competition since they are very renowned in the Chandler area, they have strategic locations, and they attract families and the surrounding businesses. The best thing to do in order to set a position for competition and evaluate strengths and weaknesses is to draw out a comparison matrix (Walker 511-512). The matrix will help us compare our operation with the competitors while using a scale of 1 to 10 or 1-100. The matrix could look like the following, using the 1-10 scale: Competitors| Benefit| Our Operation| 1Big Fat Greek| 2Barcelona | 3Olive Garden| 4Naples | 5| 6| Better pricing compared to competitorsXXXX as a new brand promoting Lebanese-ethnic foodCustomer ServicesDifferent/New type of food and presentation| Win more customers by setting competitive pricesUse strong and effective marketing strategies to launch XXXXX: Direct advertising, mass mailing, special promotions Instilling a passion in our employees to serve guests Different perspective on presenting Lebanese food.
Emphasizing on the ‘TRUE’ ethnicity of Lebanese cuisine| 8784| 8784| 8784| 7784| | | This matrix will give us a more effective way of analyzing competition. It will also help us in preparing a Strengths and Weaknesses analysis of our restaurant against competition. XXXXX position against competition is primarily to take advantage of a strong market entrance into the Chandler area because this brand will be new and will present the real sense of Lebanese cuisine. Secondly we will take advantage of a competitive pricing strategy which will encourage guests to use our services rather than the competitors’.
Thirdly we will constantly and fervently focus on customer service while implanting a passion in our team to serve guests. Financial Analysis A feasibility analysis is defined as a study of the cost-benefit relationship of an economic endeavor (“Glover Real Estate Companies”). Another way of understanding feasibility analysis is to define it as a preliminary evaluation of the business idea in order to see if it is worth pursuing (Reilly, Millikin 1). The first step into the feasibility analysis is to estimate the annual sales for Blazing Breeze.
Considering the competition we have with Olive Garden and the Big Fat Greek Restaurant, the sales for Blazing Breeze over the years 2007 through 2009 will be estimated as follows: $610,000 for the first year, $750,000 for the second year, $975,000 for the third year. The second step is to determine costs needed for the start up. The start up costs and the necessary capital to fund them will be as follows: Sources of Capital (Start-up Income) Owner (Mr. Billionaire) Start-up Investment $175,000 Loan 25,000 Total Sources$200,000
Uses (Start-up Expenses) Purchase of Equipment $50,000 Interior decorations and designs 40,000 Rent deposit 2,000 Furniture 35,500 Dishes/glassware/silverware 10,000 Cookware 8,000 Supplies 4,000 Compressors 3,500 Food Inventory 20,000 Advertising 4,500 Insurance 2,500 Worker’s Comp 5,000 Working Capital 15,000 Total Uses$200,000 The third step consists of determining the break even point and implementing a break even analysis.
The number of meals sold at break even is equal to total fixed cost divided by the selling price minus the variable cost per meal (Schmidgall, Hayes and Ninemeir 171). Fixed costs are those that remain constant in the short run even when sales volume varies; some examples of fixed costs are salaries, rent, insurance expenses, property taxes, depreciation expense and interest expense (Schmidgall, Hayes and Ninemeir 157). We will estimate the average annual fixed costs at $315,000, the average sale price per meal at $16 and the variable cost at $7.
Thus the number of meals per year that need to be sold for Blazing Breeze to break even is $315,000 / ($16-$7) =35,000 meals. This means on average, 104 meals are to be sold per day in order to breakeven: 35000/12=2917 meals/month; 2917/28= 104 meals/day. Because it was mentioned earlier that Blazing Breeze is to have a capacity of 130 seats, this outcome would be very feasible. Licenses & Approvals XXXXX will first seek to obtain a business license and register in the state of Arizona: Doing Business As “Blazing Breeze Mediterranean restaurant”.
The second step is to apply for a food license or permit, which will be granted by the AZ department of health services (AZ DHS). The third step consists of obtaining a general liquor license. XXXXX will make sure to apply the soonest for this license because the process may be lengthy (Walker, Lundberg 218). In addition, XXXX will make sure to enforce the Dram Shop act law to the fullest extent possible, in order not to lose its license and pay high-unnecessary fines.
To earn the license, Blazing Breeze will apply with the state beverage control board and then will post a notice of the intent to sell liquor (“Allfoodbusiness”: Licenses and Permits). A fourth permit to apply for will be the signage. Before applying for this license, the restaurant will get permission from the city of Chandler municipality in order to find what the restrictions are on size, location, lighting, and the type of sign to use. XXXX will also make sure to agree with the landlord on the signage. A fifth step in the licenses and permits is to apply for a music license.
XXXX intends to play copyrighted music and for this reason the license is necessary in order to avoid penalties that may go up to $20,000 (“Allfoodbusiness”: Licenses and Permits). A sixth step is the application for a fire certificate with the City of Chandler Fire Department. Additionally, a police permit is required by the city as well; especially because the restaurant will contain an alarm system (“Chandler Police Department”). A seventh step is the request for a sellers’ permit, which allows the restaurant to avoid paying taxes on merchandise purchased from wholesalers (“Allfoodbusiness”: Licenses and Permits).
Another permit which is needed for Blazing Breeze will be the building and zoning permit. This is necessary if the restaurant will have any future expansion plans or future building plans. Finally, Blazing Breeze will join the National Restaurant Association and make sure to be up to date on all changes in terms of rules and regulations. Design, Furnishings, & Equipment In regards to the restaurant design and layout, XXXX will be distinguished by the Mediterranean theme as it has been stated earlier.
The customer service area located at the entrance will include the hostess station, a cashier’s station and a very comfortable relaxing seating area for waiting customers. This part of the restaurant will have the ‘Markuk’ bread station where an employee will be baking the special bread and shows the talent to the customers. Mediterranean artifacts and drawings from Lebanon will give this area a refined look. The kitchen quarters is referred to as the production part of the restaurant (“Allfoodbusiness”: Restaurant Design and Layout).
The main divisions of this area will be comprised of the cold preparation area first of all, where appetizers, salads and desserts are assembled. Second, the cooking stations where the chef and cooks will have access to preparation tables, steam tables, fryers, cooking range with griddle top, small refrigerators placed under prep and steam tables, freezers, broilers, exhaust fans, utensils, and serving plates. Third we will have the dishwashing area. Most health departments require separate sinks for washing and sanitizing pots, pans and dishes that need to be washed by hand.
There would also be a dishwasher for all other dishes (“Allfoodbusiness”: Restaurant Design and Layout). Lastly, the food storage area will comprise large walk-in freezers and coolers. A large scale will be needed to breakdown table and shelving for the freezer, cooler and dry goods. The clean and dirty linen may also be stored in this area (“Allfoodbusiness”: Restaurant Design and Layout). The dining room area will be decorated with Mediterranean themes; sculptures that denote the Lebanese culture and traditions will refine the overall dining space.
In addition, it is important that each space is at least 12 sq. ft. per customer (“Allfoodbusiness”: Restaurant Design and Layout). Lighting in this area will be very mild and the colors will revolve around red in order to emphasize the blaze and a mixture of blue and earth tones to focus on the Mediterranean theme. The bar can play the role as a double customer waiting area. This area would need bar stools, booths, cash register, three compartment sink, drain board, ice bin, ice machine, beverage dispensing system (“Allfoodbusiness”: Restaurant Design and Layout).
The employee restrooms and public restrooms should be compliant with the Americans with Disabilities ACT (“Allfoodbusiness”: Restaurant Design and Layout). They will be easily ventilated and kept extremely well cleaned. The employees’ area and office will also be two separate quarters where office equipment, computers, records, phones, desks are in one place, and another small spot for the sake of putting personal items. The blueprint schematic for XXXX will look similar to the one displayed below (Figure IV). Figure IV: Tentative blueprint schematic presentation for XXXX. (Courtesy Liberty Hospitality: Sample Plans) Menu Development
Linda Lipsky in “Designing Profitable Menus” compares a flashy menu that does not generate sales to a race car without an engine. A menu is not enough to be nice to look at; it must pay the bills as Lipsky explains. In addition, a menu should maximize sales and promote the items which are most profitable and unique to the property. This proves that menu development is a crucial step in developing a restaurant. Lebanese cuisine is the essence of the Mediterranean diet as we read in Cedar Land. The menu normally includes an abundance of starches, fruits vegetable, fresh fish and seafood, and animal fats are consumed sparingly.
Poultry tends to be more consumed than meat. The cuisine includes an abundant amount of garlic, olive oil and foods are mostly grilled, baked or sauteed in olive oil. Vegetables are often eaten raw or pickled as well as cooked. The Lebanese cuisine focuses on a varied category of spices and herbs and uses fresh ingredients. The assortment of dishes and combinations are limitless. Lebanese desserts are also varied and present a different perspective than the most common desserts. The meals are flavorful and are dictated by seasons since Lebanon is known to have a mild climate which makes its vegetables always fresh.
Moreover, Lebanese cuisine has been in the making since pre-biblical times (Cedar Land 1). The menu layout will be distinctive whereby pictures of the items and description of the food is clear. The paper, colors and artwork all play an important role in influencing guest decisions and help to establish a restaurant ambiance and image (Walker, 263). Blazing Breeze will build a menu that has colors and healthy items are denoted by icons. In addition the menu will contain photos of Lebanese historical ruins, it will be easily read with a good choice of typeface, it will be user friendly (Lipsky).
Finally, star items will be placed at the center of the right hand page (Walker, 263). Employment of Key Personnel In regards to the employment of XXXX key personnel, the main positions will be as follows: For the manager(s) position: Pierre and Scarlet Daoud will assume the positions of XXXX managers. They will essentially open and close the restaurant, purchase food and beverage inventory, open the register, track inventory, train and manage the staff, work with suppliers and manage any form of advertising.
For the position of executive chef, Zeidan Zeidan will take that responsibility and will be responsible for all the main activities in the kitchen. He will be responsible for hiring and training other cooks, preparation persons and dishwashers. He will also have responsibility for the menu, buying supplies and equipment. The kitchen staff will be comprised of two sous-chefs and two cooks. The kitchen staff will be also supported by three kitchen workers who will clean, peel, and slice vegetables and fruits and make salads. There will be a dishwasher person and a substitute.
They will be responsible to keep the kitchen staff supplied with clean dishes, pots, pans and utensils. They will also perform the job of keeping the kitchen clean during a shift, take out trash, and clean the floors (“Allfoodbusiness”: Restaurant Job Descriptions). XXXXX will also have a main cashier who will be in charge of the main register. This person will be also responsible for tipping out wait staff, and balancing the register at the end of the shift. The cashier will also assist the wait staff with various tasks (“Allfoodbusiness”: Restaurant Job Descriptions).
The wait staff will comprise eight main waiters and waitresses who will take customer’s orders, serve food and beverages, and prepare itemized checks. Waiters and waitresses may perform additional duties, setting up and clearing tables, or operating a cash register. They also check the identification of patrons to ensure they meet the minimum age requirement for the purchase of alcohol. The bartender position will be handled by two main persons and they will be responsible for collecting payments, operating the cash register, cleaning up after customers leave, and often serving food to customers seated at the bar.
Bartenders will also check identification of customers seated at the bar, to ensure they meet the minimum age requirement for the purchase of alcohol. Bartenders will handle the ordering and maintaining of an inventory of liquor, mixes, and other bar supplies (“Allfoodbusiness”: Restaurant Job Descriptions). The hostesses’ positions will be handled by three main people who will ensure the cleanliness and presentation of the main entrance area. They will greet the guests cordially and make sure they are accompanied to their seats.
They will market Blazing Breeze at all times, they will handle the telephone and take care of any necessary take out orders over the phone. Personnel Training As a final step, XXXXX will foster an extensive and continuous training for its employees. The objective in training, as Walker and Lundberg state (346), is to produce desired behavior, attitudes, and skills appropriate for producing food and service that pleases the restaurant’s clientele. XXXXX ultimate objective is to promote an analytical skill for all its employees, in addition to strong perceptions, methodologies and problem-solving abilities (Walker, Lundberg 347).
The XXXXX management will be transparent in dealing with employees and will motivate its workforce to the fullest extent. The management will use all necessary means to ensure that staff is well trained, and to also make certain that turnover will stay the lowest possible. The managers will constantly act as coaches, reinforcing the employees, making sure that guests are satisfied and that all the restaurant production levels are up to par. Conclusion
In conclusion, I firmly believe that the idea of this restaurant concept will work; XXXXX will set a Mediterranean tone in the heart of Chandler, and will bring a passionate and exquisite food and beverage service to the area. The model that was presented in this paper tackled the main components of establishing a restaurant: starting from the concept development, moving to the market study, followed by the financial analysis, after that the necessary licenses were presented in addition to the design of XXXXX, and finally we approached the necessary selection and employment of key personnel.
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