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Liam Tayler
Allyson Nash
Lídia Mongay
Market Statistics
• The UK figure for people eating out of home
(34%)
• By year 2025 50% of food consumption will
be out of the home
• Eating out is in the fourth place of UK
customer spending after food, housing and
cars
Eating out is no longer just a treat or a luxury
– it's a fact of modern life
Market segmentation
Market Analysis (Pie)
Professional (286,600)
Residential (5,200)
Tourist (5,000)
Other (5,000)
Local residential population
Profess ional
Tourist
Other
Professional Segment
• Male and female
• Ages 25-55 (divisible into 2 main target groups)
• Young professionals
• Have attended college or graduate school
• Eat out at least once a week
• Yearly income between £25,000 and £100,000
Demographics
Needs Identified
• Possible Scenarios
– For the Bar:
– Scenario 1: Quick lunch/snack business drink with for
discussion with colleague/client.
– Scenario 2: After work drink with tapas (formal).
– Scenario 3: Recreational drink with tapas (informal).
– For the Restaurant:
– Scenario 1: Working lunch/dinner with colleagues/client
(formal).
– Scenario 2: Recreational lunch/dinner (informal).
General Concept
•
Unique Spanish environment where the local population of The
City can relax and enjoy Spanish montaditos and culture.
•
Spanish style
•
Restaurant offering high quality Spanish food and tapas.
•
The payment process for the bar is going to be based on the
number of ‘palillos’ the client has collected.
•
We aim at excellence and exceeding the expectations of our
customers.
montaditos bar with food lining the bar.
SWOT Analysis
Strengths
Weaknesses
• New Concept
• Existing know how
• MBA experience
• Suppliers in Spain
• Limited budget to develop
• UK people eating out will
• Cultural differences in
•
•
•
•
grow from 34 % 2002 to
50 % in 2025
Global trend of healthy
and natural food
High expenditure on
drink and food
Opportunities
•
•
•
brand awareness
New concept in the market
Start-up
Short term 'fashionable'
foreign food trend
eating and drinking habits
Fashion driven market
Low entry barriers
Threats
Competition
Development
Quality
Service
Menu
Concept
and
Market
Food
Location
Price
Atmosphere
Management
Product & Price
Product
Spanish based drinks:
– Wine, Beers, Coffee.
Bar Food:
– Tapas in a 'montaditos' form although assorted traditional
tapas will also be provided.
Restaurant Food:
– Delicious traditional Spanish
montaditos and tapas).
cuisine
(main
meals,
Price
The pricing policy finds a balance between the customer's perception
of value and a reasonable contribution to profit.
•Cost-Based pricing:
•Competitive pricing
•Contribution based pricing
Place & Promotion
•
Place
– Defined
by the availability of rentable spaces, in
accordance with our target market.
•
Promotional Objectives
– Increase consumer awareness of the restaurant
– Improve consumer perception of the restaurant
– Entice 1st time buyers to try the restaurant
•
Promotional Mix
– External promotion
• magazines, emails, flyers, posters and tasters.
– Internal promotion
• 'on the house meal'
Layout
Total: 115 sqm
Restaurant: 44 sqm
36 seats
18 tables for 2
Kitchen:
30 sqm
Bar:
42
10
10
30
sqm
m counter
stools
ps
Kitchen layout
Kitchen Equipment
•
•
Storage equipment
•
Preparation and processing
equipment
•
Assembly, holding and
serving equipment
•
Cleaning and sanitation
equipment
Fabrication and preparation
equipment
Process map
Critical processes
Key processes
Food preparation
Order processing
Service protocol
Stock control
Support processes
Training
Communication
Maintenance
IT
Strategic processes
Quality control
Customer satisfaction
Employee selection
Raw material supply
Scrap policy
Capacity-demand
Capacity 2004
100%
Expected Capacity
Weekday
montaditos
• 120 meals
60%
%
• 760
20%
Saturdays
• 250 montaditos
• 80 meals
2004
-20%
2005
sales increase
2006
Years
Maximum Capacity
2007
2008
Minimum Capacity
Human Resources
1 manager
1 chef
2 kitchen hand
1 head waiter
5 waiters
Job category
Manager
Chef
Kitchen hand
Head Waiter
Waiter
Bar tender
Bar/restaurant hand
Cleaner
4 bartenders
Salary (£)
2.500
2.000
500
800
650
650
450
450
1 cleaner
1 restaurant/bar
hand
Total
£13,050
Action plan
Financial Plan
Total investment of £150,000:
•
•
•
•
Shareholders equity: £ 30,000
Shareholders debt: £ 15,000
Working capital loan of £ 36,000
Fixed asset leasing £ 75,000
Recouped in 11
months
ROA of 103%
ROE of 131%
Sales Forecast
1
Products
Montaditos
Starter
Restaurant dish 1
Restaurant dish 2
wine (house wine)
Beer
Coffe
2
Sales
Price
1
4.5
8.3
15.5
5
2.5
1.5
Standard menu constructed
using market research from
different restaurants of the
City (Spanish restaurants and
Tapas Bars).
Optimal scenario.
•opening hours
•average spending
•average turnaround
3
Average spending was
calculated simulating
“typical” consumption
patterns for each of the
different opening hours
Optimal Scenario: 100% sales
Sensitivity Analysis
First Year Sales Forecast
Worst case Scenario
Expected Scenario
December
November
October
September
August
July
June
May
April
March
February
January
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Best case Scenario
Growth Projections
Sales Projections Next Five Years
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
2004
2004
Sales Increase
Minimum
Maximum
20%
52%
2005
2006
2005
10%
30%
62%
2006
8%
38%
70%
2007
2007
5%
43%
75%
2008
2008
5%
48%
80%
Cost Structure
32% of the total costs are variable
 raw materials
Fixed costs include:
• Labour
• Utilities,
• Rent, among others
Price Setting
• A 300% mark-up over variable and later cross
checked with the competition pricing structure to
adjust Montaditos prices competitively.
Break Even Point
Break Even Point
100000
80000
60000
40000
20000
0
0
Sales
15000
Fixed
30000
45000
Variable
60000
75000
Total cost
Break Even Point: £ 30,000 a month
Balance Sheet
Provisional Balance as of Dec 2004
16%
25%
Liabilities
Current Assets
75%
85%
Fixed Assets
Equity
The provisional balance for
the end of the first year
leaves the company
• 85% equity financed
• In a risk averse position
• Possibility of going into
debt in the following
years for expansion
www.montaditos.co.uk