SWOT Analysis
New Orange Tea House
Business Plan
91, Collins Street, Melbourne, 3000
Prepared By: Peter ZHUANG
Table of Content
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Introduction
This is the business plan for New Orange Tea House; this business plan forms the basis of any successful business. It provides a clear focus for operations and is useful when trying to obtain finance to get the business off the ground. It shows the financial analysis, outline the business mission, overall structure, market plan, purpose and objectives.
Business Summary
Business Name: NEW ORANGE TEA HOUSE
Experience: one of the owners used to be a manager in a leading tea company in China, having abundance tea knowledge. Both owners worked in the hospitality industry in
Australia and have relevant experiences.
Location: 91 Collins St, CBD, near the office buildings.
Date Business Established: 14 th February, 2009 a) A brief business description
A tea house, where served traditional tea drinks with all hand -made biscuit/sweets. Also, we sell the tea and tea ware. New Orange Tea House is not only a retail shop (situated at the front of the stores) where you can purchase and try over 80 kinds of delicious hand blended teas but also a restaurant where provide handmade biscuits an d dim sum from the authentic
Chinese pastry masters. b) Core activities
To serve different traditional tea from China and Japan of the highest quality while delivering the tea and tea ware knowledge and culture to Australia
All biscuit and dessert are hand-made everyday c) the size of the business
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Tea house is a medium size restaurant, including about 80 seating inside (downstairs and upstairs) and 20 alfresco seating.
Business Structure:
My business structure is Partnership made up of 2 people, Nicole ZHOU in c harge of the front of house, Paul CAO one in charge of the kitchen.
Aims and Objectives:
Gain strong customers basic and good reputation in the first year
Trading $2000 per day and sell tea drink as much as possible
Become one of the most popular tea place for people in Melbourne
bring a new life-style which is tea drink trend into Melbourne
Resource Evaluation
Staff equipment finance technology
No.
Average10 staff per week
Total cost
$14.00*20hours
*10=$2800 per week
Commercial Oven
Table and chair
Fridge and freezer
Bank loan
Owner’s capital
Website build, sop system, training staff
$800
$800
$120
$1000
$ 50,000
$ 15,0000
$ 7900
Judgment
Flexibility work hour.
Staff can finish early if not busy
Hire some youth under 21
Keep good maintenance for those equipment
Use some second hand instead
Trends in market place:
Due to the multicultural background and more migration, the people who work, live or study at Mel would like to try and accept new tea drink and new trend about health. My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus. This will help to achieve my goals
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because the key point to business is to make sure the good quality of goods and drinks so that we can get more customers. And, it is attractive for people to see nice and special things that they never saw before and these will active their interesting, make them want to know and try them. Then, it is the best time to provide very professional knowl edge about tea by our well-trained staff. Customer will believe the good of tea drink easier at the same time we can get good reputation from the mouth of customers.
Competitors:
For this moment, there are about 4 sorts of tea house restaurant in Melbourn e. Two of them are located in CBD, the rest of two are in South Yarra. And the Grand Hyatt hotel in close to my place also would be my competitors. Meanwhile, the different kinds of café, like star bucks are anther choice instead of tea, they are all my co mpetitors.
Competitive Advantage:
Enough cash flow
High quality products and services
Location in CBD-access to everything
Create relationship with supplier
Understand and analyses market
Good knowledge for hospitality management
Unique Selling Point:
Our product will be very unique, fresh tea leaves, herb tea, and organic tea, high nutrition with delicate decoration packing
All sweets are hand-made freshly in the morning everyday.
New flavour tea drink come out according to different season.
Key Activities:
Fragrance tea serviced in the house
Sell the tea and tea ware
Take booking for the function
Service the food
Projected Sales: My approach to pricing is competitive. The strategy I will use is providing the same price as our competitors’ with little smaller quantity product. This will help me
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achieve my sales goal trading $2,000 a day from Monday to Thursday and $3500 at the weekend.
Profits: around 30%the total sales amount
Owners Contribution:
Having $ 150,000 my and the partner’s own money
Funds Required:
The business currently has about $ 150,000 AUD
Need to borrow from bank $50,000 AUD
The main financial encumbrances would be not enough real property or something else to do the mortgage with the bank
Service Providers
Name Address
COM wealth bank 1/42 garden street, Preston
Michael (broker) 34/98 punt road, Fitzroy
Lisa (accountant) 12 bank street, Brunswick
Paul(lawyer) 112 high street, Prahran
Contact Details
0433 678 432
0412 435 789
0433 657 785
03 9876 0981
The Product or Service Evaluation
Market Sector
Trade, consumer, domestic
Pricing Structure
My approach to pricing is competitive. The strategy I will use is providing the same price as our competitors’ with little smaller quantity product. And customer will not to find out lit tle difference. General speaking, the price range of our product is from $3~$23 per serve.
Market
A.
Manufacturing
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Patents and design registration
The business name (new orange tea house), trade mark, house herb tea
Predictions on changes to the industry
According to City of Melbourne Research, the city’s population has grown 60 %(
30,500) since 2001 when the population was 50,673. It is not hard to think and identify the city would be a big business-basic market and more potential customers.
Due to the multicultural background and more migration, the people who live or study at Mel would like to try and accept new food, drink and new trend about health.
B.
Retailing
Goods to be sold
Tea leaves, tea ware, biscuits, dessert, etc.
Location
91 Collins St, CBD
I have chosen to place my business on the Collin St at CBD. This area is focus office building and high income people with higher working pressure. This will help to achieve my goals because it is a good opportunity to let more people know about my product and maybe will create a new trend of health to drink tea.
City of Melbourne is the best place for tourist and most people comes city to meet friend, have dinner, and shopping
Stocking policy and procedures
In place the tea and tea ware according to the category, count the quantity, stock in a dry room, avoid the direct sunlight, mark the date on the label, do the stock -taking once a week.
Suppliers and potential suppliers
Tea company, hang Zhou, China. Other tea company from China and Japan. Make sure the good quality of our tea with a reasonable price
C.
Service
Description of service
Flexibility
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Trading hour : Monday to Thursday: 10:00am ~10:00pm
Friday and Saturday: 10:00am~11:00pm
Sunday: 10:00am~ 4:00pm
We will extend trading hour if any booking required or during some holiday
Dine-in menu and Take-away menu can be taken
Service of tea
Take away tea
Package tea
Table service
Service Chinese Yum Cha, trolley service
Qualifications necessary to enter the industry
Apply relevant license successfully, define a series of procedures, such as emergency procedures, non smoking procedures, Hazard reporting, purchasing guidelines. Carry out relevant statutory requirements like choose a best business structure (understand the concept of liability and the difference among sole trader, partnership and companies), the licensing requirements, Public liability insurance, General goods and services tax
Industry and/or legal controls
Reduction of risks to health and safety
Training staff about how to use equipment properly, making standard operation procedure.
Make reasonable and flexibility roster by law
Encourage staff to identify and report any potential hazard in the operation
Range of sizes, colour
Colouring our tea section as green stands for all green tea, pink stands f or all fruit tea, etc
The small package (100g) to middle size package (250g), big size (500)
Occupational health and safety issues
Kitchen staff wears uniform and safety shoes
Waitress has to tie up hair when they are working and wear tidy uniform
Personal hygiene and kitchen hygiene
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Vision Statement
New orange Tea House‘s vision is to be the customer’s first choice for tea in Australia, to grow sales in all areas, improve efficiency and maintain excellent services.
Mission Statement
We are continuously selling highest quality functional tea ingredients and tea ware and delivering traditional tea culture and tea knowledge and committed to strengthen our brands and products to improve our competitive position and financial performance.
Goals and Objectives
Specific
Increase restaurant sales by 20% and retail sales by 40% in the first.
Measurable
Increase restaurant sales by 5% and retail sales by 10%, by April, 2009
Increase restaurant sales by 5% and retail sales by 10%, by July, 2009
Increase restaurant sales by 5% and retail sales by 10%, by October, 2009
Increase restaurant sales by 5% and retail sales by 10%, by January, 2010
Achievable
The place is a medium size tea shop which also has a retail part in the front, basis on the amount of money we had invested and a series of market survey, this objective should be achievable.
Realistic
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This goal is realistic, because it is 5% above the average industry practices budget, this is a target for both of the management level and staffs, this can motivate the staff, the staff will do more hard work and efforts.
Time-framed and track able
The first year is most important for my business, my business is a new concept business, if people accept it, it will run well, while people don't’ accept it, that means I loss my business.
So in the first year, we focus on the sales, try to increase sales as much as we can. And another reason for setting this goal in the first one year time is market demand. We have to having enough market share and good brand reputation in the first year, this is good for the business further development.
Gain strong customers basic and good reputation in the first year
Trading $2000 from Monday to Thursday, and 5000 at weekends for the restaurant in the beginning three months, and sell tea drink as much as possible
Trading $500 in average in the beginning three months for the retail.
Maintain 15% annual growth in the first year.
Implement the first year’s marketing promotional strategy.
Negotiate 7% lower products rate from the suppliers next year.
Improving and developing the business brand—new orange, invest around $15000 aud in the advertisement in the second year, make sure the recognitions of our brand in the people of Melbourne and people around Melbourne.
Hire and train new store supervisor, train the senior staff to be team leader in the second year.
Build up the strong technology support website; develop the online teas and tea ware sale in our own website by 2010.
Found head office, more personnel structure, including director, products manager, marketing manager, accountant, office administrator in the second year.
Found a factory or department for the tea production and packaging to meet the requirements of continual growing market demand next year.
Open the second chain store in St Kilda by the end of 2009, open the third chain store in north Melbourne in the middle of 2010, further 3 stores are slotted to open before the end of 2011.
Become one of the most popular tea places for people in Melbourne within 5 years.
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New orange tea house’s teas can be found at leading restaurant and café throughout
Melbourne in five years time.
Expand our business to the main cities in Australia; open at least one leading store in the following cities with in ten years, Sydney, Brisbane, Cabrera, and Pert h.
Pay all invoices within 30days.
Bring a new life-style which is tea drink trend into Melbourne
Situation/Environment Analysis
Industry Analysis
General information
My business is a part of service and distribution sector.
Size and growth rate of the industry
For this moment, there are about four of tea house restaurant in Melbourne. But I think more and more new competitors would be come out because of the market trend and d ue to the multicultural background and more migration, the people who live or st udy at
Melbourne would like to try and accept new food, drink and new trend about health.
The market trend is more and more people are seeking a healthy life, so bring a new life-style which is tea drink trend into Melbourne would be acceptable. My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus. This will help to achieve my goals because the key point to business is to make sure the good quality of goods and drinks so that we can get more customers. And, it is attractive for people to see nice and special things that they never saw before and these will active their interesting, make them want to know and try them. Then, it is the best time to provide very professional knowledge about tea by our well-trained staff. Customer will believe the good of tea drink easier at the same time we can get good reputation from the mouth of customers.
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Sensitivity to economic cycles & seasonality
Nowadays, the world while economic trends are not good, which is economic crisis, people are unlikely to spend money than before and all my products are import from overseas, my production cost will increase due to the Australia dollar exchange rate. It is hard for me to achieve budget. However, under this climate, it is easy for me to hire staffs at a lower wage, it is good for me to control labour cost. Also, I should improve the promotion strategies, monitor the financial process.
Every business will have seasonal variations and it will affec t on cash flow. For my business, summer would be the hot season, this time have more money coming into the business than coming out .so there is a positive bank balance. However, winter is a quiet period for my business, so I have to monitor the cash flow more often .Also, I can change the product by season to make more profit in every season. Building strong relationship with our suppliers is another way to solve this problem.
Keep good relationship with other business is very important for our situation. For example; it is important to get the lowest price available from our supplier. Business also should negotiate quality of the products, credit term and conditions, service or delivery schedule, discount structure with their business partner. Otherwise, c hanging to a new business partner or finding a immediate replacement can be costly in terms of time and lost revenue.
Regulation
The local and national regulation will affect my business; for example, nowadays, most hospitality organizations can not allow customers smoking in the door under the smoking regulations. For my business place, there are some out door tables available for those customers who want to smoke.
The laws may affect my business with staff, suppliers and customers:
The Food Act
The Occupational Health and Safety Act 2004
The smoking regulations
The rental contract of my business place
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Market Analysis
The target market –who exactly will be buying your products?
Demographics
Office workers
Age: 25~50
Students
Age: 16~24
Tourists
Age: 20~60
Income : $1000~$2000 per week
Income : $100~$300 per week
Income : variable
Male &female (ratio:1:3)
Married and single care about their health like tea drink
Mostly female
Single
Male and female( couple)
Married and single want a nice place to chat like to try new food and drinks do not want spend too much money want to try new things and buy special gift want a comfortable place to take a break like sweets and biscuit and chatting need a little break
Work in CBD Study in CBD Hang out at city
Geographic
Area served –city
Density –urban
Nature of the location—business, shopping
Transportation—public transport, train, tram, few drive by themselves, because of hard to find a parking inner city.
Lifestyle
Family status—married couple, larger family has several children, single woman
Hobbies, entertainment interest—the women who like chatting with their friends, the office people like relaxing and enjoying themselves. The students like to meet their friends in a cheerful place. The families like to hold a family celebration in a beautiful place. The tourists like to have a rest in a comfortable place.
Advertise media preference--Do some advertisements in the local newspaper and local radio. Also try to develop a relationship with the hotel or uni versity near by, make
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some advertisement in the term of booklets give out to the tourists and students. We do the advertisement in the internet to attract the student, and do the advertisement in the travel agencies to attract some of the tourists.
Psychographics
Trend setting - Due to the multicultural background and more migration, the people who work, live or study at Melbourne would like to try and accept new tea drink and new trend about health. And, it is attractive for people to see nice and special things that they never saw before and these will active their interesting, make them want to know and try them.
Socially or environmentally conscious-- Define my products( tea ) as organic, natural (no artificial color, no artificial flavor),relaxing tea or something like that ,and introduce the tea function(warm your body, good for digestion, good for blood circulation .etc) to my potential customers .As I also doing tea and the finger food take away, the tea cup and bags for take away will be made of recycle paper instead of plastic material. Philanthropy promotion, if you drink a cup of tea in the tea house, 5c of every cup of tea will be donated to the bush fire. Special tea packages, like pink package of rose tea to support pink breast cancer organization.
Free tea sample—every day prepare 8 kinds of different tea in the display section for customer to have a try. Meanwhile, this way can promote the tea ware, such as tea pots and tea warmer.
Buy factors & sensitivity
Price, quality, brand name, and service-- My approach to pricing is competitive. The strategy I will use is providing the same price as our competitors’ with little smaller quantity product. This will help me achieve my goal trading. And customer will not to find out little difference. My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus.
This will help to achieve my goals because the key point to business is to make sure the good quality of goods and drinks so that we can get more customers. Promote the brand name of ‘New Orange’; advertise in the media, and colourful print with logo, carry bags with logo and mini business card.
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Location, store design, ambiance, and sanitation-- I have chosen to place my business inner CBD. This area is focus on office building and high income people with higher working pressure. This will help to achieve my goals because it is a good opportunity to let more people know about my product and maybe will create a new trend of health to drink tea. City of Melbourne is the best place for tourist and most people come city to meet friend, have dinner, and shopping.
My place is having beautiful decoration, the tradition Chinese and Japanese mix style, because these two countries are the original place for the tea. Outside table, window views, light music, try to make customers feel relaxing, comfortable
Sanitation is a key point to my place, training staff having good understanding of the person hygiene and environment hygiene, set up some relevant side job everyday for the staffs to keep the sanitation of the environment.
Nature or quantity of other customers—some customer pass by absorb by our store design which may not have certain buying intention, some customer know us because of our advertisement ,those people intend to come to buy something, all of these customer are a important part of our target market, even if their quantity are not many.
Market size & trend
Market size--At the beginning stage, people just state to know us and accept the new trend of drinking tea and our advertisement start to effect the target market, the market size would not as big as we image. May be the market would be only the people very close to us. However, the market size will be bigger and bigger because of our development and improvement of our reputation in this industry.
I try to gain strong customers basic and good reputation in the first year, improve the profit around 10% at the second year, achieve the budget about 10% above the average industry budget in the third year, and become one of the most popular tea place for people in Melbourne in the five years time.
Economic and social factors—Domestic and international economic climates; fluctuations in currency exchange rates; increase or decrease in competition; shifting supply and market demand level; change to the numbers and profile of
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international tourists; change in legislation, eg industrial relations, taxation; number of apprentices; abundances/shortage of skilled staff; customers develop new needs and wants; inflation; price of raw material /seasonal of goods, etc.
Market’s needs changing –market’s needs changing because of new market trend.
So the business needs to be changing as well to meet the new market demands.
Renovation is necessary all the time.
Strategic opportunities
Define my products( tea ) as organic, natural (no artificial color, no artificial flavor),relaxing tea or something like that ,and introduce the tea function(warm your body, good for digestion, good for blood circulation .etc) to my potential customers
.As I also doing tea and the finger food take away, the tea cup and bags for take away will be made of recycle paper instead of plastic material. Philanthropy promotion, if you drink a cup of tea in the tea house, 5c of every cup of tea will be donated to the bush fire.
Special tea packages, like pink package of rose tea to support pink breast cancer organization.
Price, quality, brand name, and service-- My approach to pricing is competitive. The strategy I will use is providing the same price as our competitors’ with little smaller quantity product. This will help me achieve my goal trading. And customer will not to find out little difference. My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus.
This will help to achieve my goals because the key point to business is to make sure the good quality of goods and drinks so that we can get more customers. Promote the brand name of ‘New Orange’; advertise in the media, and colourful print with logo, carry bags with logo and mini business card.
Location, store design, ambiance, and sanitation-- I have chosen to place my business inner CBD. This area is focus on office building and high income people with higher working pressure. This will help to achieve my goals because it is a good opportunity to let more people know about my product and maybe will create a new trend of health to drink tea. City of Melbourne is the best place for touri st and most people come city to meet friend, have dinner, and shopping.
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My place is having beautiful decoration, the tradition Chinese and Japanese mix style, because these two countries are the original place for the tea. Outside table, window views, light music, try to make customers feel relaxing, comfortable
Sanitation is a key point to my place, training staff having good understanding of the person hygiene and environment hygiene, set up some relevant side job everyday for the staffs to keep the sanitation of the environment.
Nature or quantity of other customers—some customer pass by absorb by our store design which may not have certain buying intention, some customer know us because of our advertisement ,those people intend to come to buy something , all of these customer are a important part of our target market, even if their quantity are not many.
Market size--At the beginning stage, people just state to know us and accept the new trend of drinking tea and our advertisement start to effect the target market, the market size would not as big as we image. May be the market would be only the people very close to us. However, the market size will be bigger and bigger because of our development and improvement of our reputation in this industry.
I try to gain strong customers basic and good reputation in the first year, improve the profit around 10% at the second year, achieve the budget about 10% above the average industry budget in the third year, and become one of the most popular tea place for people in Melbourne in the five years time.
Economic and social factors—Domestic and international economic climates; fluctuations in currency exchange rates; increase or decrease in competition; shifting supply and market demand level; change to the numbers and profile of international tourists; change in legislation, eg industrial relations, taxation; number of apprentices; abundances/shortage of skilled staff; customers develop new needs and wants; inflation; price of raw material /seasonal of goods, etc.
Competitive Analysis
Competitors
What are they trying to achieve? What are their strengths and weakness?
How will they respond to your presence?
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Competitors category
Goals strengths weakness respond
Tea shop (
T2) sell the most high quality tea
Already have good reputations
No table service
,only retail service
New strategies, promotion new package ,lower price
Starbucks Suit to the traditional tastes
Lack of fresh
,not health
New strategies, package
Hotel (
Grand Hyatt)
Leading status in the hospitality industry
Attract tourists High price promotion special
Tea House
(chain tea restaurant)
Run as many as restaurant in
Australia
Good experience
,running successful for a long time
Emphlysis on the restaurant part
New strategies, promotion
New house made tea promotion
University cafeteria
Focus on the internal market (students)
Convenience to the student
,reasonable price
Unchangeable, uncomfortable environment
Food court in shopping centre
Sell as much as food and drink in a certain time
Attract to the people who prefer to quick drink and food uncomfortable environment serve fast food
Do some change to meet the student’s demands
Competitive advantages
New Orange Tea House
High quality products and services
Location in CBD-access to everything
The competitors
Already have good reputation
Good experience
Create relationship with supplier
Understand and analyses market
Running successfully for a long time
Good at operation
Good knowledge for hospitality management
Enough cash flow
Market share and distribution
How is the market distributed?
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The market is distributed as follows: tea retail selling (T2, and others), service tea and other drinks (oriental tea house, café and others). T2 20%, star bucks 30%, Giana Jeans 305, other
20%
Do any one or two companies dominate the market?
There is no any companies dominate the market ,even though some company like T2 have already got good reputation and running very well during the recent years ,but there is still a large market gap to allow other company develop in this industry.
How will you obtain sufficient market share?
Detailed business plan, original from and business theory, effective market analysis and competitive analysis, strong financial banking, good hospitality management and o peration, understand how to train staff, etc.
Future competition
The new competitors will enter the market because of the market trend, most of the people will seek a more healthy life, and tea industry will be obviously a part of that. Meanwhile, other hospitality organization will be set up continually to meet the market needs. However, there are still some factors which would prevent new competition from market entry, such as secret recipes, market saturation, increasing of import prices, lack of competi tiveness, changing of legislation etc.
Strategic opportunities
Competitor’s analysis is a good way to help us having a better understanding of both ourselves and the competitors, having a better understanding of both of us ‘s advantages and disadvantages. Predict the competitor’s responded, and take some relevant action. Also those analysis will indicate the trend of market, the change about customer’s interesting or if any competitive coming out so that we can make a plan to handle, fix up those problems to make sure get product life cycle.
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SWOT Analysis
STRENGTHS
Unique products and services
Well developed website
Understand how to train staff
Location in CBD
Create good relationship with supplier
Understand and analyses market
Strong financial banking
OPPORTUNITIES health trends
Business will group up
Thriving market
More tourists
WEAKNESS
No experience operating a tea house
Budget limit
No on-sit parking
No regular customer
Lack of new facilities and equipment
Limited space for advertising signs
No reputation
Shortage of skilled staff
THREATS
Global economy is falling
New competitors
Price of rental goes up
Costs of goods goes up
High company taxes
Strategies:
STRENGTHS
Location in CBD- I have chosen to place my business in the CBD. This area is focus office building and high income people with higher working pressure. City of Melbourne is the best place for tourist and most people come city to meet friend, have dinner, and shopping
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Developed website —this is a good way to let more people know our products and services.
Undated the tea list, when the business development, we can develop online tea shopping as well. And through the website, we can do the internet advertising as well.
Staff training experience
—the owner worked as a training supervisor in the hospitality industry before, and has a diploma of hospitality management, so my business could provide good training to the staff. My staffs are multi -skilled are more competitive.
Good relationship with suppliers -- Make sure the good quality of our tea with a reasonable price, so our products will have high quality with competitive prices.
Understand and analyses market- Tell us what the trend is every year, let us know what self-interest are for different groups of people, show us what we have done well and what we need to do better, provide feedback and information to us about our product
Strong financial banking— access to control profit and loss, help to achieve budget
WEAKNESS
No experience operating a tea house— detailed business plan and financial plan, consulate the relevant professionals, do marketing research, competition analysis.
Budget limit— strong financial skills, good relationship with the creditors and supplier, avoid the cash on delivery. Try bank loan
No on-site parking— location is inner city, close to the public transport
No regular customer— analysis the target market, effective advertisements.
Lack of new facilities and equipment— try to find some second-hand equipment which in good condition but lower price to replace and try pay in instalments
Limited space for advertising signs— advertise by our logo, and the hand bag with logo.
Haven’t get good reputation— continue to improve the services and quality of products , build a good image in the industry
OPPORTUNITIES
Health trends-- the people who live or study at Melbourne would like to try and accept new food, drink and new trend about health. This is a good opportunity for the neo -business.
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Emphasis the healthy, balance to attract the people, or develop new pro ducts, like functional ingredients in the tea to help customer to solve the body problems.
More tourists – the market size become bigger and bigger, more potential customer, more market distribution, more sales for my business
THREATS
Global economy is falling— economic crisis, Australia dollar exchange rate down, negotiation with the business partner with the raw material price or something like that
New competitors come out— analysis the competitors, analysis the advantage and disadvantage both of us, adjust the business strategy.
Price of rental goes up— negotiation with the land owner, or try to have a contract with the owner, the rental goes up rates should under one certain figure during a certain time
Costs of goods go up- negotiation with the supplier with the quantities and the debit term.
Increase the selling price to control the production costs.
Shortage of skilled staff— Create a friendly, good environment for employees, less pressure, flexible hours so that they can work more efficiency and take more effort to their job.
Marketing Plan
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Business Overview
New orange tea house is a tea house, where served traditional tea drinks with all hand-made biscuit/sweets. Also, we sell the tea and tea ware. our business is a part of the economic sector, service, manufacturing, retail, or distribution the restaurant industry .The business started with a small tea shop on little Collins street in Melbourne city about 1 year ago. It sold tea blends created by Nicole Zhou. Now, New Orange Tea House is not only a retail shop (situated at the front of the stores) where you can purchase and try over
80 delicious hand blended teas but also a restaurant where provide handmade biscuits and dim sum from the authentic Chinese pastry masters.We also offer a great range of Oriental tea ware, designed to accentuate the wonderful properties of each individual tea. The owner used to be a manager in a leading tea company in china, having abundance tea knowledge. Also, the two owners both worked in the hospitality industry, have relevant experiences. And compared to our competitors, we have some advantages, such as high quality products and services, location in CBD-access to everything, create relationship with supplier, understand and analyses market and good knowledge for hosp itality management. Our core business activities (products and services) will be focus on the living-room style decoration providing customers comfortable seat and well trained professional staff; serve different traditional tea from China, Japan and ensur e its high quality; deliver the tea and tea ware knowledge and culture to Australia; all biscuit and dessert are hand-made everyday. This market plan has been designed to help our business obtain sufficient market share, share out tea and food with tea and food lovers around the Melbourne. We have been enjoying these authentic teas and meals for generations, and we hope the people around Melbourne enjoy them too.
Market Overview
The retail and restaurant industry is a vital part of the hospitality industry providing food, beverage and products to both domestic and international customers. It is centred on providing authentic Chinese food and fragrant teas to the local and international public who a new life-style which is tea drink trend into Melbourne.
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The retail and restaurant industry is a new industry developing during the recent years.
Due to the multicultural background and more migration, the people who work, live or study at Melbourne would like to try and accept new tea drink and new trend about health. My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus. This will help to achieve my goals because the key point to business is to make sure the good quality of goods and drinks so that we can get more customers. And, it is attractive for people to see nice and special things that they never saw before and these will active their interesting, make them want to know and try them. Then, it is the best time to provide very professional knowledge about tea by our well-trained staff. Customer will believe the good of tea drink easier at the same time we can get good reputation from the mouth of customers
The changes affecting the industry are:
Changing of relevant legislations, taxation change of input products;
strong competition from successful running competitors, like T2 and the new competitors com out
the increasing cost of rental of CBD of Melbourne
gain market acceptances would be more and more important,
These factors will continue to put pressure on the industry as a whole. However, there will always be people looking to try something new and follow the market trend.
Continually creating the new tea drinks and ongoing to create the new menu items to meets the public’s needs, a successful business can be built.
This Marketing Plan is designed to identify the target market for New Orange Tea
House and enable it to attract clientele through careful promotion and sales support.
Customer Information
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I have chosen to place my business inner CBD. This area is focus on office building and high income people with higher working pressure. This will help to achieve my goals because it is a good opportunity to let more people know about my product and maybe will create a new trend of health to drink tea. City of Melbourne is the best place for tourist and most people come city to meet friend, have dinner, and shopping. There is also Monash city campus and RMIT campus near my business place; those students are parts of my target market.
My place is having beautiful decoration, the tradition Chinese and Japanese mix style, because these two countries are the original place for the tea. Outside table, window views, light music, try to make customers feel relaxing, comfortable
New Orange Tea House plans to target three distinct groups:
Office workers Students Tourists
Age: 25~50
Income : $1000~$2000 per week
Age: 16~24
Income : $100~$300 per week
Male &female (ratio:1:3) Mostly female
Married and single Single
Age: 20~60
Income : variable
Male and female( couple)
Married and single care about their health like tea drink want a nice place to chat do not want spend too much money like to try new food and drinks want to try new things and buy special gift want a comfortable place to take a break like sweets and biscuit and chatting need a little break
Study in CBD Hang out at city Work in CBD
Market Information
According to City of Melbourne Research, the city’s population has grown 60 %(
30,500) since 2001 when the population was 50,673. It is not hard to think and identify the city would be a big business-basic market and more potential customers. At the
24
beginning stage, people just state to know us and accept the new trend of drinking tea and our advertisement start to effect the target market, the market size would not as big as we image. May be the market would be only the people very close to us. However, the market size will be bigger and bigger because of our development and improvement of our reputation in this industry.
For this moment, there are about 4 sort of tea house restaurant in Melbourne. But I think more and more new competitors would be come out because of the market trend and d ue to the multicultural background and more migration, the people who live or stu dy at
Melbourne would like to try and accept new food, drink and new trend about health.
The market trend is more and more people are seeking a healthy life, so bring a new life-style which is tea drink trend into Melbourne would be acceptable. My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus. This will help to achieve my goals because the key point to business is to make sure the good quality of goods and drinks so t hat we can get more customers. And, it is attractive for people to see nice and special things that they never saw before and these will active their interesting, make them want to know and try them. Then, it is the best time to provide very professional knowledge about tea by our well-trained staff. Customer will believe the good of tea drink easier at the same time we can get good reputation from the mouth of customers.
Industry Information
Nowadays, the world while economic trends are not good, which is economic crisis, people are unlikely to spend money than before and all my products are import from overseas, my production cost will increase due to the Australia dollar exchange rate. It is hard for me to achieve budget. However, under this climate, it i s easy for me to hire staffs at a lower wage, it is good for me to control labour cost. Also, I should improve the promotion strategies, monitor the financial process.
Every business will have seasonal variations and it will affect on cash flow. For my business, summer would be the hot season, this time have more money coming into the
25
business than coming out .so there is a positive bank balance. However, winter is a quiet period for my business, so I have to monitor the cash flow more often .Also, I can change the product by season to make more profit in every season. Building strong relationship with our suppliers is another way to solve this problem. Keep good relationship with other business is very important for our situation. For example; it is important to get the lowest price available from our supplier. Business also should negotiate quality of the products, credit term and conditions, service or delivery schedule, discount structure with their business partner. Otherwise, changing to a new business partner or finding a immediate replacement can be costly in terms of time and lost revenue.
The local and national regulation will affect my business; for example, nowadays, most hospitality organizations can not allow customers smoking in the door under the smoking regulations. For my business place, there are some out door tables available for those customers who want to smoke.
The laws may affect my business with staff, suppliers and customers:
The Liquor and Accommodation Award
The Food Act
The Occupational Health and Safety Act 2004
The smoking regulations
The rental contract of my business place
2.4 Product/Service Information
My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus. And, it is attractive for people to see nice and special things that they never saw before and these will active their interesting, make them want to know and try them.
The detail about our tea house will be break down to each sector shown as below:
26
Design
1. Unique logo
2. Poster and flyer about our tea
3. Use our tea making calendar
Features
1.
good looking decoration import from Japan
2.
different kind tea trapped in different design boxes e.g.: green tea in square box, fruit tea in circle box
flexibility
1. Trading hour: Monday-- Thursday, Sunday 11:30am~~8:00pm
Friday – Saturday, 11:30am~~10:00pm
We will extend trading hour if any booking required or during some holiday
2. Dine-in menu and Take-away menu can be taken
Reduction of risks to health and safety
1. Training staff about how to use equipment properly, making standard operation procedure.
2. Make reasonable and flexibility roster by law
3. Encourage staff to identify and report any potential hazard in the operation
Range of sizes, colour
1. Colouring our tea section as green stands for all green tea, pink stands for all fruit tea, etc
2. The small package (100g) to middle size package (250g), big size (500)
Occupational health and safety issues
1. Kitchen staff wears uniform and safety shoes
27
2. Waitress has to tie up hair when they are working and wear tidy uniform
3. Personal hygiene and kitchen hygiene
Objectives
SWOT analysis
STRENGTHS
Unique products and services
Well development website
Understand how to train staff
Location in CBD
Create good relationship with supplier
Understand and analyses market
Strong financial banking
WEAKNESS
No experience operating a tea house
Budget limit
No on-sit parking
No regular customer
Lack of new facilities and equipment
Limited space for advertising signs
Haven’t get good reputation
OPPORTUNITIES
Create a health trend
Business will group up
Make more profit
Thriving market
More tourists
The key objectives for New Orange Tea House are:
THREATS
Global economy is falling
New competitors come out
Price of rental goes up
Costs of goods goes up
High company taxes
Shortage of skilled staff
Goals and Objectives:
Gain strong customers basic and good reputation in the first year
Trading $2000 from Monday to Thursday, and 5000 at weekends for the restaurant in the beginning three months, and sell tea drink as much as possible
Trading $500 in average in the beginning three months for the retail.
Increase restaurant sales by 3% and retail sales by %1, by April, 2009
Increase restaurant sales by 3% and retail sales by %1, by July, 2009
28
Increase restaurant sales by 3% and retail sales by %1, by October, 2009
Maintain 15% annual growth in the first year.
Implement the first year’s marketing promotional strategy.
Negotiate 7% lower products rate from the suppliers next year.
Improving and developing the business brand—new orange, invest around
$15000 aud in the advertisement in the second year, make sure the recognitions of our brand in the people of Melbourne and people around Melbourne.
Hire and train new store supervisor, train the senior staff to be team leader in the second year.
Build up the strong technology support website; develop the online teas and tea ware sale in our own website by 2010.
Found head office, more personnel structure, including director, products manager, marketing manager, accountant, office administrator in the second year.
Found a factory or department for the tea production and packaging to meet the requirements of continual growing market demand next year.
Open the second chain store in St Kilda by the end of 2009, open the third chain store in north Melbourne in the middle of 2010, further 3 stores are slotted to open before the end of 2011.
Become one of the most popular tea places for people in Melbourne within 5 years.
New orange tea house’s teas can be found at leading restaurant and café throughout Melbourne in five years time.
Expand our business to the main cities in Australia; open at least one leading store in the following cities with in ten years, Sydney, Brisbane, Cabrera, and
Perth.
Pay all invoices within 30days.
Bring a new life-style which is tea drink trend into Melbourne
Strategy
29
Primary research
Personal surveys or Questionnaire
Face to face talking to people about their thoughts about the product
Observation about operation of other related product or service
My product will be very unique, fresh tea leaves, high nutrition with delicate decoration packing and professional customer service focus. This will help to achieve my goals because the key point to business is to make sure the good quality of goods and drinks so that we can get more customers. And, it is attractive for people to see nice and special things that they never saw before and these will active their interesting, make them want to know and try them. Then, it is the best time to provide very professional knowledge about tea by our well-trained staff. Customer will believe the good of tea drink easier at the same time we can get good reputation from the mouth of customer s. My approach to pricing is competitive. The strategy I will use is providing the same price as our competitors’ with little smaller quantity product. This will help me achieve my goal trading $2,000 a day. And customer will not to find out little differe nce. I have chosen to place my business on the Collin St at CBD. This area is focus office building and high income people with higher working pressure. This will help to achieve my goals because it is a good opportunity to let more people know about my product and maybe will create a new trend of health to drink tea.
City of Melbourne is the best place for tourist and most people come city to meet friend, have dinner, and shopping
Product
We focus on the living-room style decoration providing customers comfortable seat and well trained professional staff. My place serves different kinds of traditional teas from China,
Japan and ensures its high quality. We define our products( tea ) as organic, natural (no artificial colour, no artificial flavour),relaxing tea or something like that ,and introduce the tea function(warm your body, good for digestion, good for blood circulation .etc) to my potential customers. And we also have a retail part of my place which sells the tea and tea
30
ware and deliver tea knowledge and culture to Australia customer. For example, we do the
Chinese traditional way of brew the tea, like Chinese GongFu teas.
About the restaurant service, we do Yum Cha. It is a term in Cantonese which means
"drinking tea". It refers to the dining experience of eating small servings of different foods, e.g., dim sum and finger food. In any city with a sizeable population of Chinese people, yum cha is a tradition on weekend mornings, and whole families gather to chat and eat dim sum and drink Chinese tea. Yum cha is also a morning ritual for the elderly to spend a good part of the morning after early morning exercise of jump or a walk. We think it is totally a new concept to the Austrilia people. My places want to be such a place for Australia people to spend their time with their families, friends, and we hope them really enjoy themselves in my place. So tea is important, for it is said to help digest the rich foods. What’s more,All dim sum, biscuit and dessert are hand-made everyday
As I also doing tea and the finger food take away, the tea cup and bags for take away will be made of recycle paper instead of plastic material.
Pricing
My approach to pricing is competitive. The strategy I will use is providing the same price as our competitors’ with little smaller quantity product. And customer will not to find out little difference. Consider about the competitor’s prices and my own production cost or transport fee, my price would be as follow:
The price list (including GST) has been set at:
Losses tea leaves:
100g $6.5~$30 dollars--for the tea which is not very popular or not very familiar by the Australia people for this moment, the tea has very strong flavour which like slow moving items and also the expensive teas, we do the 100g or even 50g small package.
For example, like the longjing
250g $14~120 dollars, 500g $50~350 dollars, for the teas are already popular among the
Australia market. If the customer having a habit of drinking a certain kind of tea, they would prefer to choose the large package which are much more valuable.
Package deal: provide different tea mix packages around $12~$99 dollars to meet market needs.
Tea and other drinks in store drink list:
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Name
Green Tea
Long Jing
Mao fen
Bi luo chun
Gun Power
Jasmine Green
Jasmine Lychee
Jasmine Pearl
Sliver Needle
Gen Mai Cha
Oolong Tea
Iron Buddha
Oolong
Tea Cocktail
Campari treasure
Baileys Kiss
Russian Spy in Shang Hai
Kaluha black & white
Japanese winter
House herbal Tea
Relaxing tea
Refreshing tea
Happy tea
Clam & concentration
Comfort tea
Ginger and barley
Lemongrass
Rose tea
Peppermint tea
Chrysanthemum tea
Cost Price
Sell price
$ 1.36 $ 5.50
$ 0.58 $ 4.00
Margin
$ 0.74 $ 3.50
$ 0.85 $ 3.00
373%
253%
$ 1.33 $ 5.50
$ 0.42 $ 3.00
$ 0.42 $ 3.00
314%
614%
614%
$ 1.39 $ 5.50
$ 1.22 $ 5.50
296%
351%
304%
590%
$ 0.59 $ 3.50 493%
$ 0.39 $ 3.00 669%
$ 1.45 $ 6.50
$ 1.32 $ 6.50
348%
392%
$ 1.87 $ 6.50
$ 2.35 $ 7.00
$ 1.89 $ 6.50
248%
198%
244%
$ 0.53 $ 4.00
$ 0.44 $ 4.00
$ 0.39 $ 3.00
$ 0.60 $ 4.00
$ 0.30 $ 3.00
$ 0.34 $ 3.00
$ 0.30 $ 3.00
655%
809%
669%
567%
900%
782%
900%
$ 0.24 $ 3.00 1150%
$ 0.24 $ 3.00 1150%
$ 0.19 $ 3.00 1479%
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Black Tea
Pu Er
Kee mun
Russian caravan
Earl grey
English breakfast tea
Beer
Asahi
James Boags
Little Creatures
Corona
Peroni
Heineken
Tsing Tao
Hahn Light
Hahn Premium
Kirin
Soft Drinks
Coke
Diet Coke
Lemonade
Lift
Dry Ginger Ale
Soda Water
Tonic Water
Coke Zero
San Pellegrino 500ml
San Pellegrino 1 Ltr
Aqua Panna
Lemon Lime Bitters
Orange Juice
Apple Juice
Cranberry Juice
Pineapple Juice
Iced Teas
Lemon
Strawberry
Raspberry
Peach
$ 0.45 $ 3.50 678%
$ 0.48 $ 3.50 629%
$ 0.45 $ 3.50
$ 0.48 $ 3.50
678%
629%
$ 0.48 $ 3.50 629%
$ 2.60 $ 7.00
$ 1.89 $ 6.50
169%
244%
$ 2.53 $ 7.00
$ 2.42 $ 7.50
$ 2.49 $ 7.50
$ 2.15 $ 7.00
$ 2.52 $ 7.50
$ 1.17 $ 4.90
177%
210%
201%
226%
198%
319%
$ 1.73 $ 6.50 276%
$ 2.14 $ 7.00 227%
$ 1.46 $ 3.80
$ 1.46 $ 3.80
160%
160%
$ 1.37 $ 3.80
$ 1.37 $ 3.80
$ 1.25 $ 3.80
$ 1.25 $ 3.50
$ 1.25 $ 3.50
$ 1.46 $ 3.80
$ 1.32 $ 4.50
$ 2.17 $ 8.00
$ 1.20 $ 4.00
$ 1.45 $ 3.80
$ 0.37 $ 4.00
$ 0.37 $ 4.00
177%
177%
204%
180%
180%
160%
241%
269%
233%
162%
981%
981%
$ 0.75 $ 4.00 433%
$ 0.37 $ 4.00 981%
$ 0.50 $ 3.50
$ 0.50 $ 3.50
$ 0.50 $ 3.50
600%
600%
600%
$ 0.50 $ 3.50 600%
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Distribution
All services will be provided at the new orange tea house
Promotion
Website:
The use of the internet is essential in providing information and access to New Orange tea house. A fully functioning site will be developed that will enable potential customers to see what tea and tea ware is available as well as allow them to buy the tea on online.
The site will have a brief introduction of us, and the entire menu including the a l a carte menu, chef’s special menu, take away menu and tea lists.
Website introduces general information about us, what kind of products and services we provide, what new about us, what is the newest promotion for drinks and food. And a link to shopping online site
There is contact information about us in our website; customer can make a booking directly through telephone and email.
Advertising:
The advertisements will be placed in local newspaper, such as the age , magazines and local radio. Effective advertisement will through chose right media. Find the most resultful way to introduce out products to those customers. A thirst for knowledge and information and a global focus leads to the target market being heavy consumers of newspapers, particularly national newspaper and major metropolitan dailies. Their interest in magazines reflects their desire for new information which is not presented in mainstream media and technology, being more likely to be readers of Business Review Weekly, New Scientist, Australian PC User and the Bulletin. Their heavy readership of national newspapers also makes them more likely to read The Australian Magazine and the Financial Review magazine as well as Good Weekend.
Our advertisement also offer discount to the customer if they bring the paper of our advertisement from the newspaper to our tea house, they could get 10% of their check.
34
Promotions:
Activity
Carry bag with our logo
Mini business card
Birthday person discount
Free new release example
Enjoy our membership
Nice and free packaging wrap
Reason
Make people to know us
Easy to put in pocket and remind people we are here
Make customer feel that we treat them very special and care
Try to let people remember our product
Once people buy our tea box and they can get free gift packaging
Meet more friends who love tea and get special offer from our store at every time consuming
Bring more customer basic
Branding:
All documents and information placed into the public hands are to have a consistent look and feel that highlights the quality food and fragrance tea of the new orange tea house. The branding should leave the impression of indulgence and pampering.
This branding is to carry over to uniforms for the staff, linen ware on tables, package of the tea and tea ware, carry bag, business card. These items will also be available for sale at the new orange tea house.
Packaging and personal selling
Unique logo—we having unique logo for all of our tea and tea ware products, including the gift box, or wrapping paper, we also having unique logo sticks available.
Use our tea making calendar
Good looking decoration packaging boxes import from Japan
Different kind tea trapped in different design boxes, e.g. green tea in square box, fruit tea in circle box
Range of sizes, colour--Colouring our tea section as green stands for all green tea, pink
35
stands for all fruit tea, etc. and The small package (100g) to middle size package
(250g), big size (500)
Tea knowledge booklets—divide all the tea into different category, such as green tea, jasmine tea, black tea or herbal tea, and introduce the tea function one by one.
Operational Plan
Successful tea house business depends not only on location and quality of service but on how it is delivered. The tactics therefore, require a very attentive a nd direct approach to the client base. This however, can not be seen to be pushy or overbearing but constructive and sympathetic to the clients needs to “take a cup of tea and relax themselves”.
Firstly, we let customers know us through advertisements and we believe if they try out tea, they will come back and back again. Not only because our quality tea, food and excellent service but also because of they would used to drinking tea, drinking tea would be a market trend, people drinking tea ,people enjoying tea.
We try to get the customer feedback, ask customer’s advice and keep improving, we believe we will get strong customer basis.
Sales promotion
Target Market: Office workers
Product
Price
Place
Promotion
Fresh and good quality tea leaves
Tea of high value in nutrition
Good smell organic and natural tea
Mini package can easy to carry or keep in cabinets in office
$8.50~~$48.00 per pack
At middle or top shelf which the similar height as adults
The shelf just next to the door
Membership card
36
Free example of new release
Discount for the birthday person
Target Market: Student
Product
Price
Place
Price
Unique and special flavour tea
Good-looking colour tea
Nice package and decoration
Good and cheap price $5.00~~$28.00 per pack
At the middle shelf
Around the a cash register
Free example Promotion
Student discount
Points collection—every time consumer at store, they will get credit points. And the points can exchange the same value tea at store.
Target Market: Tourism
Product Gift package tea leaves
Good and new experience about tea
Multi-culture tea can be got at one time
$27.00~~$60.00 per gift package
Place
Promotion
Display area—in the front of door
Free tea example
Free booklet about how to make tea properly
Free packaging using Japanese paper
We promote different tea and tea package in different seasons or festival, such as during the summer, we promote types of favour ice tea, they are all house made fresh ice tea, no artificial flavour and artificial colour, we believe this concept would be accepted by the customers. While during the winter, we can promote warm tea, such ginger and barley tea,
37
this kind of tea can warm people’s body and sore the joint, it will be very popular in the cold winter. At the meantime, we will have Christmas gift pack, Chinese new year gift pack and mother’s day gift pack, etc. every specific gift pack design for every particular festival.
We will have some activity like “lucky customer for month’, every customer leave their business card to us, we will chose one of them every month, this lucky customer will get a
$50 dollars voucher from the store. This is use to attract the new customer and keep the old customer.
We try to deliver to customer the whole tea knowledge, not only for the tea itse lf, but also for the tea ware, like what kind of tea need what kind of tea cup to brew to keep the flavour.
So when people buy the tea, they will think about the tea cup or tea pots, or they will think they probably need some tea tin to keep the tea nice and dry.
Advertising
The emphasis is on having a nice tea in a relaxing but beautiful location and is the key. I want to send the message to our target market about our product is specific and the new market trend of drinking healthy tea. We will have our advertisement in local newspaper and magazines or radio and television, because the business people will focus on these information channels. And for the students and tourists, we would do the advertisement on the campus newspaper or have some booklets put into the information desk for the large hotel nearby. We will do the advertisement frequent depends on the tourists season, industry analysis, sales report or some other reasons, like when we just open, we don’t have strong customer basis, we have to spend more money on advertisement, when the sales decrease, we can through advertisement to let customer know our new promotion or new food and drinks items.
Public relations
1. Public relations inside of business
38
For customers
Key Messages--Natural ingredients, Comfortable sofa seats, Professional staff, online order
The way used to communicate feedback and change with them
For employee:
Regularly staff meeting
Notice board
For customers:
Observation
Collect feedback forms
For supplier:
Web contact forms
Send report or letter
Fact to face
The importance of maintaining business relationships with staff, suppliers, customers and other parties:
For staff:
Create a friendly, good environment for employer, less pressure, flexible hours so that they can work more efficiency and take more effort to their job.
For customers:
Get customers base and gain good reputation for my business
Know the self-interesting of them and improve our business product
For supplier:
Make sure the good quality of our tea with a reasonable price
For other parties:
Exchange information with each other to make a better plan for our business
Know our business very well- what we have done well, what we need to improve
2. Public relationship outside of business
Set up donation program with the community and society. For example, pink scarf tea package to support the breast cancer, or donation for the bush fire
Direct Marketing
39
The use of a high quality brochure is seen as essential to providing potential client’s information about the new orange tea house and its surrounds. This is to be available at all tourist destinations in the region and the school campus, and it is expected both some of staffs will deliver these by hand to discuss the offering. In addition, they will gather information about other facilities they can pass onto their guests.
We can do some market survey, through the feedback we can send the email to the customer who may have interesting in our products. What’s more, when the customers come to the store, we can try to ask them join our tea club, so we can have potential customer’s data base, and send them our email regularly.
Online Marketing
The internet is seen as a critical tool to reach customers. On the home page of our website, the customer can find online tea and tea ware sales very easily. This is very convenience to the customers are not in Melbourne or who don't have time to come to the store in person.
We have pictures for different kinds of teas, and detailed introduction of each kind of tea, using a extremely secure and safe payment system. It’s easy, convenient and we deliver straight to your door , if people spend more than 50 dollars, we can do the free shipping. And customer also can make a booking through our website, we have the formal from for the booking, the customer just fill it, then press the button submit, their booking can be achieve in a more convenience way.
Our website address will be close to www.neworangeteahouse.com.au
, it is simple and easy for customer using search engines to find us.
The budgets for set up this functional website would be $1000 dollars, I can find some help from China, and it is much cheaper than in Australia.
Budgets
Date Business Established: 14 th February, 2009
Date Item Cost
40
Measure of Success
Website build
Completion
1 st Nov of 2008 $ 4,500 Functional website, online shopping, online payment
30 th Jan $ 5,000 All sites listed carrying web link Paid search engine advertisement to increase exposure
Colourful brochure printed and distributed through out region
Advertisement in the
Age newspaper
30
3 rd th Jan
Feb
Newspaper advertisement for local paper
Business card
Leaflets/ menu
3 rd Feb
5 th Feb
5 th Feb
$ 1,800 All sites carrying information in prominent location
$ 4,500 Monthly slot secured for five
$3,500
$ 500 months. Advertorial accepted
4inch *4 inch size advertisement for hale a year
2000 cards
$ 1500 100 menu, 100 drink list, leaflet and take away menu 300 each
$ 1,500 50 people are invited
$ 23,300
Opening
TOTAL
Action Plan
Action
Development of website
1 st May
Prepare logo and brand
Link website to other key sites
Open website to public
Prepare newspaper advert and place in local paper
Web specials to be released on sites
Opening of New Orange Tea House for local groups
Republish brochure
Oct
3rd
Nov Dec Jan Feb who
1 st specialist
15 th
15 th
3 rd
25 th
15 th
1 st
Nicole specialist specialist
Paul specialist
Nicole and Paul
Nicole
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Web specials for feature days to be offered
Supporting Documentation
15 th Paul
Some of the documentation would be:
Attachment Number
Attachment 1:
Attachment 2:
Attachment 3:
Attachment 4:
Attachment 5:
Attachment 6:
Attachment 7
Attachment 8
Attachment 9
Attachment 10
Attachment 11
Attachment 12
Attachment 13
Attachment 14
Attachment 15
Attachment 16
Attachment 17
Attachment 18
Attachment 19
Attachment 20
Attachment 21
Attachment 22
Document Name
Balance Sheet
Profit and loss statement
Daily Cost of Doing Business
Licences and permits
Contractors with suppliers
Sale reports
Meeting agenda records
Job description for floor, sales and kitchen staff
New employee details checklist
Daily operational procedures document
Order, purchase and stock taking form
Payroll document
Cleaning schedule document
Important contact number
Leave form ,job termination document
Staff training handout
Staff roster
Business budget
Maintenance checklist
Legal requirements
42
Legal Requirements
LICENSING
COPYRIGHT LICENSE
My business uses recorded music in the store, so I have to pay a fee for use of the copyright material under the Copyright Act. My business may need 2 licenses, depending on what is played and how it is played.
Copyright notice
This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non -commercial use or use within your organization. All other rights are reserved.
LIQUOR LICENSE
Besides the normal tea serving, we also sell special tea drinks, such as tea cocktail, which is has alcohol in it. Sale of alcohol requires a permit, or license. The laws and requirements under the law vary between states. In general, the laws are designed to regulate the safe consumption of alcohol. Any employee who serves alcohol must have passed a test and received a certificate on Responsible Service of Alcohol.
Some of the license would be:
Premise license-serve liquor to customer to drinking on the premises
Permit from my local council to be able to serve liquor
TAXATION
My business structure is partnership which is formed with two people.
My business has my own business name, own Tax File Number (TFN), and an
Australian Business Number (ABN). There is no legal requirement for a written agreement, but it would be highly recommended.
43
For partnerships, profits are distributed to the partners or members who then pay tax according to their own personal circumstances. .
While the partnership doesn’t pay tax, it does have to lodge an annual partnership income tax return to show all income earned by the partnership and deductions claimed for expenses incurred in carrying on the partnership business. The tax return also shows each partners share of net partnership income.
Income Tax
Under the Income Tax Act 1986, income tax applies to both business and individuals.
As a business owner, you will be probably responsible for both -the tax charged to the business for any profits made and the tax you need to pay on your own income each year.
Good and Services Tax
GST is regulated by a new tax system (Good and Services Tax) Act 1999.GST is currently charged on top of the sales price of most goods and services, at the rate of
10%.
Business name may apply for GST registration for the partnership if it is carrying on an enterprise. This can be applied for on the ABN application form. A partnership is required to be registered for GST if its GST turnover is $75,000 or more ($50,000 or more prior to
1 July 2007).
Other Taxes
Payroll Tax
Payroll tax is a state tax levied on the wages you pay to your employees. It is simply a tax charged by state governments on large employers. Each state has different threshold and tax rates.
Stamp Duty
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Stamp duty is a state tax levied on a range of transactions includin g transfers of; property, e.g. motor vehicles, land, buildings and shares; leases and mortgages; insurance policies; and motor vehicle registration. Lodge a Business Activity Statement
(BAS) quarterly.
INSURANCE
To protect our business, we need some insurance to make sure that our business is safe, and the employees are all working in the safety environment.
PUBLIC LIBILITY
We need to have public lability to cover us if Third parties suing you for personal injury or property damage they sustain while on your property if you’re negligent
THEFT
This is a high risk for a business and especially to our business, because our business is located in the city and close to everything, and it will be high risk in the late evening about stealing.
WORK COVER
We need to have work cover to our business; this is the insurance to protect our employees, when they are injured during working time. This will help us and the employees to cover the cost after the injury
Natural Disaster and Malicious Damage
Protect our business against damage through the natural disaster, such as bushfire, earthquake, and floods and so on.
SUPERANNUATION
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The purpose of superannuation is to make sure as many Australians as possible will have income support when they retire. In New Orange Tea House we will do the following things to meet the law;
calculate an amount equal to 9% of each of our employees’ base earnings (Generally eligible employees are those who are paid at least $450 per month)
pay this amount to a superannuation fund or retirement savings account at least every quarter
keep a record of all contributions made
We will need to keep a record of when and how we reported superannuation contributions to our employees. Special reporting requirements apply to superannuation payments made as fringe benefits or salary sacrifice
PREPARING AND SELLNG FOOD
We must work under the legislation which governing correct food handling processes in
Australia.
For instance, Food Standards Australia New Zealand (FSANZ) is an independent statutory agency established by the Food Standards Australia New Zealand Act
1991 . FSANZ have relevant acts on their web site. Compliance with these standards is the minimum requirement for our business.
Also, we would need to register as a permanent food venue with our local council, create a food safety plan and allocate someone as a food safety supervisor who has a
Food Handling Certificate.
Parts of the food safety plan in New Orange Tea House:
Washing your hands, also washing the rest of your body, taking care when you are handling food and storing food .being careful not to cough or sneeze on others,, cleaning things that you touch, throwing away things such as tissues that might have germs on
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them, using protection (such as gloves or condoms) when you might be at ri sk of catching some infections. Abide by local food safety regulations.
OH&S
Our management is committed to providing all staff with a health and safe work environment and make sure they work in the safety place. We achieve this by working together to progressively reduce the incidence, severity and secure the health, safety and welfare of all employees. Also, the management does not only have responsibilities to look after themselves but also have duties to take care of other staff. This written statement that helps promotes an effective OHS program in the workplace. They will eliminate workplace risks at the source, and share information and ideas about risks and how to control them between employees and employers.
Relevant Legislation: Occupational Health and Safety Act 2004
New Orange Tea House Policy Statement
1.
New Orange Tea House is committed to ensuring the health, safety and welfare of all people in workplace.
2.
New Orange Tea House is committed to:
----A Risk Management approach to identify, assess, eliminate and control hazards which have the potential to harm persons in the workplace and ensure consistency with the nature of workplace activities and scale of OHS risks;
---- Complying with relevant OHS legislation and other requirements placed upon th e organization or to which the organization subscribes;
---- Establishing measurable Key Performance Indicators and targets for OHS to ensure continuous improvement aimed at elimination of work related illness and injury;
---- The provision of appropriate OHS training to all employees
---- A consultative process to ensure all employees including where relevant contractors and labour hire employees are included in the decision making processes impacting on
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workplace health and safety;
---- The effective implementation of the OHS policy
---- Injury Management and timely return of employees to duties in accordance with the
Workplace Injury Management and Workers’ Compensation Act 1998.
3. Emergency procedures
4.
Non smoking procedures
5.
Hazard reporting
6.
purchasing guidelines
7.
Other OH&S producers those are applicable to New Orange tea house.
SECURITY
Ensure that the premises are safe for patrons and staff alike and that RSA legislation requirements are met. Al l the business activities must be under the Private Se curity Act
2004.
Training the staff follow some of the security procedures, such as: Money floats, Key control, Robbery/Theft.
INDUSTRIAL RELATIONS
In Australia there are several laws covering the workplace. Each state has at some stage had its own Act covering workplace relations, in Victoria, these laws are Regulated by
Federal Law.
As a business owner, it is my responsibility to provide a workplace that ensures the safety of my workers under the Workers compensation legislation. Also, it is a requirement under the various OH&S laws that you take out workers compensation insurance and keep the insurance up-to-date.
In addition, the federal Government introduced its industrial Relations Act in 1996, which has subsequently been amended to reflect the govern ment’s new policies on employment. It also affects the rights and responsibilities of employers and employees.
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EEO AND ANTI-DISCRIMINATION
Discrimination policy statement for New Orange Tea House
PURPOSE
New Orange Tea House has implemented policies and procedures to promote a discrimination and harassment free work environment for all staff to ensure that it meets its obligations under Victorian and Commonwealth legislation.
SCOPE
This policy is applicable to all current and prospective staff as wel l as members of the public accessing goods or services of the University.
All persons covered by the scope of this policy are required to:
• Comply with this policy
• Behave appropriately
• Promote a climate of mutual respect
THE PROCESS
Definition of the records, all the records will be kept be the manager of New
Orange Tea House
Distribution of the information
New Orange Tea House distributes the information through the following means:
Induction
Meetings
Trainings
Handbook
Internet
Posters
Handouts
Training staff
Information and discrimination policy is gathered through regular training sessions.
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Identification of operations/ Risk management
Between staff
Staff with customer
Staff and supplier
Employer with employee
Front of house with back of house
Sexual Harassment statement for New Orange Tea House
New Orange Tea House has implemented policies and procedures to promote a safe and sexual harassment free work environment for all staff to ensure that it meets its obligations under Victorian and Commonwealth legislation.
The Policy applies to employees and prospective employees, contractors, members of industrial organisations and qualifying bodies, clients, and customers of the New
Orange Tea House, visitors or individuals engaged in an official/formal relationship with the New Orange Tea House. All persons covered by the scope of this policy are required to:
Comply with this policy
Behave appropriately
Promote appropriate standards of conduct at all times
THE PROCESS
Definition of the records, all the records will be kept be the manager of New
Orange Tea House
Distribution of the information
New Orange Tea House distributes the information through the following means:
Induction
Meetings
Trainings
Handbook
Internet
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Posters
Handouts
Training staff
Information and discrimination policy is gathered through regular training sessions.
Identification of operations/ Risk management
Between staff
Staff with customer
Staff and supplier
Employer with employee
Front of house with back of house
CONSUMER PROTECTION
The New Orange Tea House plans to comply with consumer protection by:
Regular training of relevant staff
Effective complaints-handling procedures
Product safety and recall program
Appointment of a staff member responsible for compliance
Regular reviews for continual improvement
The New Orange Tea House knows where advertising, discount pricing and promotions are commonplace, it is important to ensure that fair trading laws are not breached.
ENVIRONMENT
In current social climate, a business must consider the environment in its operations. In some cases there are even legal requirements regarding the environment within which a hospitality business operates. There is often legislation governing what a business can and cannot do. As the developing of hospitality industry we need to improve the working environment for the employees. To provide a health and safety working environment will be very important for the business.
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RISK ASSESSMENT
A risk assessment is an important step in protecting our work ers and our business, as well as complying with the law. It helps us focus on the risks that really matter in our workplace – the ones with the potential to cause real harm. In many instances, straightforward measures can readily control risks, for example ensuring spillages are cleaned up promptly so people do not slip, or cupboard drawers are kept closed to ensure people do not trip. For most, that means simple, cheap and effective measures to ensure your most valuable asset – your workforce – is protected.
The law does not expect you to eliminate all risk, but you are required to protect people as far as ‘reasonably practicable’. Usually, use following 5 steps to deal with risk,
Identify the hazards; Decide who might be harmed and how; Evaluate the risks and decide on precautions; Record your findings and implement them; Review your assessment and update if necessary
Human Resource Plan
Managerial experience of the owner
New Orange Tea House‘s business structure is partnership between Nicole ZHOU and
Paul CAO. Nicole has a Diploma of Business in Hospitality management and Paul has
Certificate Ш in Commercial Cookery. Nicole comes from a tea country named china where with different kinds of tea, Nicole has a Bachelor of Accounting, and she experience in basic accounting and computer skills.
Staff team
The business has some staff member to make up of a staff team. Nicole and Paul are in charge of the management. Nicole has experiences in the front house and working as the product manager and Paul has working as a chef for many years, so he is the best person for the head chef position. My business also has a retail part as well; Lisa would be the retail supervisor, training the retail staffs. And Wendy is working as the store supervisor
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to do the daily operations. Jack who is very good at creating new menu items is working as cook in the kitchen.
Staff costs and staff needed
Besides of the staff team just mentioned, as a new business there are only four front house employees, 2 waiters, a bar attendant, and a cashier, 2 sales persons take the shift of the retail part, and 3-4 employees in the back house, one cook ,two kitchen hands and a dishwasher. However, we will need more people once we grow up and running.
Staff position
Nicole (general manager)
Full time
Paul (head chef) Full time
Skill require
Professional
Professional
Wendy(Store supervisor )
Lisa(retail supervisor)
Jack (cook)
Waiter
Sales person
Bartendent
Kitchen hand
Dish washer
Total salary
Full time
Full time skilled
Full time skilled
Part time
Part time
Part time unskilled
Part time unskilled
Part time skilled unskilled unskilled unskilled
$14.90 hours
$14.50 hours
$14.90 hours
$11.90 hours rates Total costs
Salaried staff
$ 980 per week
$ 980 per week
Salaried staff
$ 980 per week
$ 980 per week
Salaried staff
$ 750 per week
$ 750 per week
Salaried staff
$ 680 per week
$ 680 per week
Salaried staff
$ 700 per week
$ 700 per week
$14.50 hours per $ week
1500per per $550 per week per per per
$305 per week
$150 per week
$ 460 per week
$7000 week per
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Contact workers or freelancers
--Cleaner, come once a week, the daily cleaning job should be achieved by the front house staff and kitchen staff as a kind of side job.
--Interior designers, when doing the new tea promotion, like during the Christmas, we have employ designers to redisplay the retail section.
--Maintainer, in case any equipment need to repair.
--experience accountant, end consultant to help to do the financial documents every three months.
Corporate culture
Relaxing, cooperative
Staffing requirements
General Manager —Qualification and Diploma of Hospitality Management, knowledge of marketing, financial and operation, knowledge of relevant legislation, Computer literacy, ability to apply quality control techniques
Head chef
—Certificate Ш and Food Hygiene Certificate, Diploma for Hospitality, three to five years working experience as a chef, ability to work within budgets, ability at creating dishes and menus
Store Supervisor —-demonstrable leadership skills, ability to control labour costs, ability to mime deadlines under pressure, enthusiasm for customer satisfaction, experience in supervision and training of employees in a multi -skilled environment, experience with basic computer skills
Retail supervisor —enough tea knowledge, relevant tea knowledge, relevant retail management background, experience in supervision and training of employees in a multi-skilled environment, experience with basic computer skills
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Cook —ability to accurately cost menus, knowledge and experience of special dietary needs and food allergies, knowledge about food cooking, method, and nutrition knowledge
Bar attendant —basic liquor knowledge, RSA certificate, and willingness to learn
Waiter
—customers handle skills, willingness to learn, flexible approach to the working day, great people skills and ability to work in a team
In average term, one experienced waiter serve around 20 to 35 customer, if I forecast
150 customers in the first day, I probably need 5 to 6 waiters.
Sales person —Good communication skill (verbal and written), willingness to learn
Recruit staff
A.
Put a notice on the window outside of the store about the job information about new waiter or sales person position available, this way costs nothing.
B.
Advertising in Medias, such as newspaper, websites or broadcast. This way will cost some money, so we will consider this when the business starts running well.
Employing staff responsibility
Nicole will be responsible for employ retail supervisor and store supervisor.
Paul will be responsible for employ kitchen staffs.
Retail supervisor will be responsible for employ retail staffs—sales person.
Store supervisor will be responsible for employ front house staffs.
Specific training
Every new staff when they com in need to know our company policy and runni ng procedures.
Retail staff— tea knowledge training, the staff need to know all the tea functions, prices, how to brew, best drinking time. The staffs also needs to know how to display the tea
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and tea ware and accessories, price, how to use, how to clean, what each tea ware is suitable for particular tea, quality value of product, up selling skills,
Front house staff— SOP of equipment, RSA training, food health and safety knowledge
Up selling and service training:
Greeting the customer, the customer is greeted upon entrance and shown to the table immediately. Menu and tea list presented to customer, try to take drinks order before leaving the customer.
Approaching the customer, organize the drinks order, return with tea drinks, and take food order if customer is ready.
Ascertaining & fulfilling customer needs, keep a eye over the customer, remove empty cups or dishes. Anticipate the customer’s needs before they ask, using visual cue to acknowledge when customers ask for attention.
Bring to a close, take food order, and send food order to the kitchen, and deliver food promptly to table, cross off items on the order docket as food is delivered.
Up selling add-on merchandise, continuously check customers for re-orders, order another round of drinks, offer information on the types of tea available, offer information about the retail store.
Finish the sale, when asked-deliver the bill to the table promptly.
Farewell the customer, thank and farewell the customer, offer the customer the opportunity to browse through the retail store.
Back house staff
personal and food hygiene within the kitchen
For the head chef or cook, control staff, providing work roster etc.
Preparation of all pastry, biscuit and tea goods.
Knowledge about all menus is constantly updated. Paying special attention to seasonal availability.
For head chef, having the knowledge of all menus are calculated to ensure maximum gross profit.
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Stock control knowledge, stocks of all materials are being kept and stored under correct conditions.
How to correct use of all kitchen equipment.
How to correct use of all food stocks issued.
How to liaise with the Management team for the smooth running of the dining room.
Allocate money for employment and recruitment of staff
The money for employment mainly spends on training staff; every new staff probably needs one or two shifts to under training. However, the staff under training will get low pay compared to the normal salary. The money spend for staff is vary depends on different position. For the supervisor level, around $500 aud for per person, for waiter lever, about 40 for each staff.
For the beginning time, we won’t spend much money on recruitment of staff; we will find some way not costs us much, such as window notice or information in our own website.
Ongoing training opportunities
RSA certificates training
Tea cocktail making program
Cookery certificates training
Food handle certificates training
Pos machine, estops machine operation and banking
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Operational Plan
Organisational Structure
Owner
Nicole & Paul
Cook
Store Supervisor
Wendy
Retail supervisor
Lisa
Waiter
Alex
Waiter
James
Bar attendant
Sales
Maggie
Sales
Keith
Jack
Kite
Casher
Jennifer
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Kitchen Hand Kitchen Hand
Mike
Dish Washer
Joey
Oscar
New Orange Tea House‘s business structure is partnership. Nicole and Paul are in charge of the management. Nicole has experiences in the front house and Paul has working as a chef for many years. My business also has a retail part as well; Lisa would be the retail supervisor. And Wendy is working as the store supervisor to do the daily operations. As a new business there are only 4 front house employees, two waiters, a bar ten dent, and a cashier, two sales persons take the shift of the retail part, and 3-4 employees in the back house, one cook ,two kitchen hands and a dishwasher.
Marketing and Sales development
Nicole has hospitality management background; she will be responsible for managing business brands, developing marketing strategies and the sale of new products for the shop, and focus on the marketing trends and competitors.
Finance management
Nicole and Paul is both the owner of the business, so they are all responsible for the finance for the shop, such as budget setting, tax planning and finance forecasts. We will not plan to achieve all the finance issues by ourselves, we also using the service of some specialist accountants to assist with those functions.
Product and Operations
Wendy and Lisa will be responsible for maintain competition advantages, Lisa is sourcing and creating new tea drinks, define tea functions, in charge of the retail and the training program for the sales persons. Wendy will be responsible for the daily operation for the store, implement the promotion and strategies from Nicole and Paul. Paul in charge of the kitchen, will be responsible for ongoing producing of all kitchen products and arrange the menu change, creates the new menu items and products.
Hr, accounts and Administration
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Wendy, Lisa and Paul will be responsible for employing new staff, training new staff and monitor staff performance. All their responsibilities are sperate duties, only focus on their own section. Nicole who has account background also will be responsible for the payroll and office administration.
Production Process
Daily operation
1. Set up the opening procedures
Turn on all lights located in the electricity cupboard.
Turn on all POS system screens.
Unstuck chairs inside the restaurant and place at appropriate tables
Collect ice from ice machine located outside of rear fire door and fill up ice tray located on downstairs bar.
Set up outside tables on the deck. 2 tables on each side with 3 plastic stools.
Place table talkers and soy sauce on all outside tables
Turn on the music.
Confirm all reservation for the day, make notes about changes in times or numbers of people.
Ensure that all sections are allocated accordingly to daily roster
Transfer all bookings into the booking form.
Fill all water jugs with water.
Check bar and ensure that it is all stocked and ready for service.
Set upstairs tables and chairs accordingly to today’s bookings
Double check that all waiter station are ready for service (napkins, bowls, plates, cutlery)
Refill soy sauce on tables in necessary
Prepare all sauces for service.
Water Bamboo plants outside – 2 full ice buckets in each plant box
2. Print yesterday’s sales report. Check the email inbox.
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3. Fill the daily information form, sales which yesterday achieved, today’s target, check what are running out of stock for food, beverage and for retail. Check what are up sell for food, beverage and for retail daily.
4. at 10:00 place sign on the front door as “OPEN”.
5. Staff briefing. Explain the daily information, assign section
6. Customer service.
7. Staff meal/meeting. Summarize what is good and what is bad. Solution
8. Check staff’s side job
9. Do the till and banking.
10. Close the door.
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Workflow in creation product (example: clam& concentration tea)
Calm & concentration tea (7 ingredients)
Blend
Prepare the 7 ingredients according to certain ratio
Weight, 50g,
100g, 250g,
500g
Envelop the loose tea leaves in plastic bags
Fold the package tea boxes
Paste the loge label
Write down the production date and expire date
Customer order the tea
Choose cup or pot
Add boiling water
Brewing
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Workflow in creation service
Greeting
Show the menu, explain the menu
Seat guests Offer the drinks lists
Take order, up sell more quantity and variety
Service the food, explain the food to customer
Offer more food; ask guest how they enjoyed the meal
Take drinks order, ask guests using tea pot or individual cup s
Service drinks, explain how to use tea ware and how to brew the tea
Offer a second round of drinks
Offer dessert, before service dessert, clean the table Present the bill, try to ask guest to fill the feedback form
Explain the tea and tea ware is available to buy in the retail section
Thanks
&farewell the guests
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We sell the loose tea leaves and we normally do four different sizes of packages, 50g,
100g, 250g and 500g. at the beginning, we package the tea by manual, for one box of tea , we blend it first ,weight it , envelop, and fold the tea box, and then paste the logo, write down the production date and expire date. These produce process, using an experienced staff, need 1~2 minutes. When serving a cup of tea, the time depends on characteristic of different kinds of tea. Strong flavour tea need less time to brew.
The factors can affect anticipated time frame for production.
Material shortages--nearly all the teas are seasonal, like the longJing, the king of the green tea, and come from ZheJiang province China, only 3 months season during the whole year. If the weather is bad, not enough rain, the output of the longJing will decrease.
Delivery period—most of the tea ingredients are imported. The delivery method, the legislation of CIQ all will affect the time frame.
Seasonal availability—the tea functions sometimes according to the season. In winter, ginger & barley tea will be popular, in summer, ice tea will be popular, if will product lot of ginger tea in summer, it will become slow moving items. So the tea producti on time also depends on season.
Rush order—when encounter rush order, the production time will decrease.
Demand of goods and services fluctuates
If demand increases we need to do:
Find the reason--If it increases, find the increase rates and what are the popular items? If it owe to successful advertisements? Is market demand increase? Because of holiday or festival? If it decreases, something wrong? Is there enough tea flavour to choose? Is the industry analysis correct?
If demand war to decrease us can:
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A promotion strategy— for example, hot tea seems not as popular as in summer, so we can do some different flavour ice fruit tea for customer to choose. During charismas or mother’s day, we can create some special gift boxes for customer to buy as gift.
Premises, Plant and Equipment
The premises necessary to operate my business
The business will be at least a two level property in number 91 Collin Street. This property has downstairs and upstairs. The bar and kitchen will be in downstairs, and brought all the equipments for bar and kitchen to use. Most of the equipments for bar and kitchen are second hand but in good condition. The table and chairs for the restaurant using all leased from a furniture agent. The business also purchased a POS system, air-conditioning systems and the office facilities in the office upstairs. Those things are necessary for running a business successfully. Every business needs a suitable place to with state, and the bar and kitchen staffs need that equipment to product food and drinks. The table and chairs are definitely important, not only for seat the customer, but also give the customer the image of the restaurant. The POS system for the waiters to take order efficiently and send the order to the kitchen directly, and this system include cashier system and Eftpos machine, it is also convenient to customers pay their by different cards. The office facilities for my office are used to work the business paper work like the computer. The phone, fax machine, printer for us to contact wi th the customers and suppliers or the party related to my business.
The reasons for you location of my business
I have chosen to place my business on the Collin St at CBD. This area is focus office building and high income people with higher working pressure. This will help to achieve my goals because it is a good opportunity to let more people know about my product and maybe will create a new trend of health to drink tea.
City of Melbourne is the best place for tourist and most people come city to meet fr iend, have dinner, and shopping
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Because my business location is inner city, it is hard to find parking, and my tea house doesn't have a private parking area. So most of my potential customers are travel by public transport .As the business is close to the office building and school campus and the large hotel, the office people, students and tourists just walk from their workplace or campus.
The other reason is if you working in the city, if you work the split shifts, during the break time, you can go the other places to shopping or do whatever you like, and easy to buy the things you want even after you finish work. For my business, this location helps me to find the staff much easier than other places, because city has more people than other places, and people used to come to city to find jobs, especially for the part time and casual position.
The plant and equipment required to run my business and the maintenance for these things
Equipment and work place preventive maintenance is very important to my busi ness. I plan to add a schedule of maybe four hours, two days week for equipment and work place maintenance. With the remainder of the maintenance work week, work orders and emergencies are dealt with. Most pieces of equipment come with maintenance instructions. These should be researched and organized on to cards or into a notebook. If the manuals have been lost, a vendor can usually help get us or at least a photocopy of the second hand equipment manuals. For the maintenance, I state with simple but important things, like keeping the machinery and equipment clean followed by servicing anything with moving parts. Some equipment needs more frequent servicing. For example, the circulating pumps for hot water. Some used to need their bearing oiled weekly. New equipments need less and less servicing, but anything with air circulating through it needs filters and coils cleaned just as much as they ever did, such as air-conditioning. Failing to do so causes them to overheat and breakdown prematurely.
Work place, such as lobby, stairs, and restaurant and office room needs continuous attention. Tables, chairs, doors, carpet and wall coverings all get heavy use and abuse.
Without regular attention these items can cause Tea House to state looking shabby and
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old. More importantly, some items become a safety hazard. By getting around to these areas weekly and inspecting them the person or persons working on maintenance can correct some problems, fix loose table and chair legs and keep all the doors properly adjusted. In a word, my maintenance policy is emphasize that whatever is spent on preventive maintenance is going to lower maintenance costs in the long run, enhance the regular maintenance and improve the tea house as an attractive and safe place to work.
Estimate your occupation expenses, including rent, but also including maintenance, utilities, insurance, and initial remodelling costs to make the space suit your needs.
Occupation expenses
Rent
Maintenance
Utilities
Insurance
Initial remodelling cost
Total occupation expenses
Price/Rate
$ 2000 per week
$ 150 per week
$ 1000 per week
$ 600 per year
$ 1000 per week
$ 4750 per week
Trading hours:
Monday to Thursday: 10:00am~10:00pm
Friday and Saturday: 10:00am~11:00pm
Sunday: 10:00am~ 4:00pm
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Table 51
Table 52
Table 53
Table 54
Table 55
Bathroom
For female
Bathroom
For male
Office
Storage
Room
Bar
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Entry upstairs
Tables 41
Tables 42
Tables 43
Tables 44
Tables 45
Kitchen
Table 31
Table 32
Stairs to upstairs
Bar area
Bar area
Retail
Shelves
Table 33
Tabl e 23
Tabl e 24
Tabl e 21
Tabl e 22
Retail display section
Retail
Shelves
Out sid e
Out sid e
Entry
Downstairs
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Out sid e
Out sid e
Table
13
Table
14
Table
11
Table
12
Table
17
Table
18
Table
15
Table
16
Inventory
The inventory I will keep
I will keep tea and tea ware supplies as the retail shortage. This will include all kinds of the loose tea leaves which we sell. The tea wares include tea pots, tea cup , tea ware sets, tea tins, etc. and we also keep the carry bags, packages and the things needed for the tea and tea ware sales. For the beverage, we keep the loose tea leaves for the bar, and other beverages include soft drink, beer, and spirits. The dairy products such as milk, soy, honey, juice supplies will be purchased weekly in the supermarket nearby, because all this items are slow moving items, one 3.5L milk could be use for one week, most of the customer will order tea instead of hot chocolate, chai latte, etc.
The kitchen will keep enough raw products as needed. Dairy and frozen stock will be ordered weekly. Vegetables and meat and seafood will be ordered every two or three days and will depend on daily requirements. The kitchen will store only the wrapped dumplings in the cool room and will be used on the day following. Other than these, for the kitchen, we keep the stuffs such as takeaway boxes, detergent for dish wash and cleaning.
Average value in stock
The initial inventory investment will be $23,000
The estimated value of stock in the retail will be $15,000
The estimated value of stock in the bar will be $5,000
The estimates value of the kitchen will be $3,000
Control turnover
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Fortnightly stock takes will be conducted for bar. Weekly stock ta kes will be conducted for the kitchen. Monthly stock takes will be conducted for the retail. This stock takes will be control what we used, what are the fast-moving items, what are the slow-moving items, so we can do the changes about the ordering depends on the stock takes
Keep track of inventory
At the beginning time of our business, we use a manual way to control inventory.
Because the business just states, we don’t have enough money to set up a computer system to do the stock takes.
An example of stock takes form supp lier
A
Tea Disc ount
Minim um stock
Minim um order
Week 1 Week 2 Week 3 Week 4 sto ck or de r sto ck or de r sto ck or de r
Sto ck or de r
10% 10kg 50kg Jasmine
Green
LongJing 10% 5kg
Mao fen
20kg
B oolong
Rose
5% 10kg 50kg
C peppermi nt lemongra ss chamomil e peach strawberr y
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The person will be responsible for controlling inventory
The retail supervisor Wendy will be responsible for controlling all inventories with the retail.
The supervisor Lisa will be responsible for controlling all inventories with the bar.
The Head Chef Paul will be responsible for controlling all inventories with the kitchen.
Produce for stock allocation and departmental transfers
Purchase order to supply
Supplier’s delivery goods
Invoice signed and good received
Good sent to the kitchen, retail and bar
Record in the book and store in correct area
The issues could result with inventory
Compare the actual stock to the book
Because most of my tea products are imported from overseas, many issues would impact out inventory, such as loss of main suppliers, decrease of the tea products because of the bad weather, transport delay because of the legislation changing about the import products, increase of the transport fee, etc. to help offset these factors we will order more quantities of the popular products, such as the popular tea pots. About the teas, they have expire dates, we probably can not do too much stock, so we try to do more variety of the tea, even if a certain kind of tea running out of stock, the customer still having many choices. After us having customer basis, we can let customer know the information early as a kind of market strategy through email, like the longJing, a kind of green tea, only three months season during the whole year, before the season coming, we can send the email to the regular customers or do advertising in the store, if they
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really interest in, they can leave they contact information, through this way, we can roughly know how much longJing tea we should pre-order.
Suppliers
Key suppliers that for my business
The suppliers of us are list as following:
Retail suppliers—loose tea leaves suppliers from China and Japan, tea pots, tea cups and other tea wares suppliers from China and Japan, packaging, wrapping paper and other products supplier from Japan.
Items
Loose leaves tea
Supplier
Name
Larger tea company
Address Number
Zhejiang province,
China, 314000
Japan
0086-0571-82106787
0034-098-837465 Packaging, wrapping paper
Soft drinks
Kurumi decoration
Fruit and vegetables
Beecher
Fruiter
Poultry and meat
Happy Farm
Seafood Blue Ocean
Dry items
Coca cola
Box hill food service
20 learns Len rd,vic,3143
51 high street,
Fairfield
(03) 98763764
(03) 90879090
7 punt road ,Frankston
((03) 94356755
23 cris st,
Malvern
(03) 92345567
404/41
Alexander rd,
Box hill
(03) 90098712
Notes
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We also contact other suppliers such as another tea company in China for tea wholesale.
Alternatively other products can be purchased through the Footscray fruit and vegetable, victory market and yabby sea food.
Credits and delivery policies
Delivery policies:
The buyer is responsible for locating an alternative site for delivery, and will be up charged the extra cost incurred on the delivery.
Delivering building location must be within 50 feet from truck access.
For the retail items, we should pick up form the port by ourselves.
The Personnel to unload cabinets from the truck. We will allow 2 hours for unloading from the truck or container. Any detention fee over 2 hours will be the buyer’s responsibility.
Site delivery cannot be made for extra orders.
Deliveries should be checked against the purchase order to determine if the order is correct and complete.
Defined lead time for different items, for example, the lead time of soft drink should be the day following after the day ordered.
Deliveries should be checked against specifications such as quantity, size, volume, weight, quality and freshness to ensure they match.
Credits
For the retail item order from overseas, we will pay 30% deposit first, after we received them, we will pay the rest money within 30 days.
For the small items, we do the cash on delivery.
For most of the daily use items, we sign the invoice, and then pay the credits with in 30 days.
We will more than one supplier for critical items (as a backup)
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I should have more than one supplier for critical items. Because in case when the current suppliers have some problem can not provide the items as usually, we still can ask other supplier to instead, this can make sure the critical item won’t running out of stock in my business place, to make sure my business running successfully. The supplier usually delivery the good when the business not busy, such ad during 10:30am to 11:00am or
3:30pm to 5:00pm, and the lead time for drinks ,food will be from 24 hours to 48 hours, for the retail stuffs will be 3 weeks to one and a half months.
What would you do if you had shortages or short-time delivery problems?
It is best to have a standardised approach to deal with these problems. Notify the supplier immediately, state clearly what the problem is, note down the suggested solution and confirm with the supplier. For example, discuss with the supplier if they could change the lead time. This enhance communication process will allow both parties to be clearly on the outcomes. Meanwhile, to prevent this problem happen, we will have more than one supplier for the certain items, we can ask for help from anther supplier in time and we should do the stock takes regularly, through this we can notice the shortages at the first time.
What if your supply costs fluctuating, how would you deal with changing costs?
Make a contract with supplier and the most important is the content have to include the price can not change for the whole year.
Find other suppliers and get the quote of the purchase from them so that you can change the supplier as soon as you are not satisfying the price.
Some item like seafood and vegetable have the seasonal price, there are two ways to deal with it, the first is stop selling the related dishes when the price increase, while the second is don’t show the exact price on the menu, the price can show on the black board in the restaurant so we can change the price as it changes.
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Who will be responsible for purchasing supplies?
The retail supervisor would be responsible for the retail purchasing suppliers.
The store supervisor would be responsible for the bar stuffs purchasing suppliers.
The head chef would be responsible for the kitchen purchasing suppliers.
Financial plan
1. Sources of revenue;
Food sales, beverage sales, and retail (tea and tea ware) sales
2. Estimate revenue:
Capacity: New Orange Tea House is a medium size restaurant, including about 80 seating inside (downstairs 50 and upstairs 30) and 20 alfresco seating.
A retail part situated at the front of the stores.
The forecast turnover would be:
For restaurant:
Average
Table
Turnover
Mon Tues Wed Thu Fir Sat Sun lunch downstairs 2 2.5 3 3 3 3 4 upstairs close dinner downstairs 1 close close 1
1 2 upstairs Open for function
2.5
1.5
3 close close
2 N/A
For retail:
Day
Shoppers
Buyers
Conversion
Monday Tue
26
19
73.08%
31
18
58.0%
NEW ORANGE TEA HOUSE
Wednesday Thursday Friday Saturday Sunday Total
219 28 36 43 16 39
11 28 25 6 15 122
39.29% 77.78% 58.1% 37.50% 38.4% 57.3%
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3. Complete a monthly budget for 12months
NEW ORANGE TEA HOUSE
TARGET $1,561,200
JAN FEB MAR APR MAY JUN JUL AUG
GOAL $1,580,000
SEP OCT NOV DEC
RETAIL
REST
$3,000 $3,200 $3,500 $4,000 $4,000 $4,500 $4,000 $3,500 $3,500 $4,000 $4,500 $5,500
130,000 105,000 115,000 115,000 126,000 115,000 120,000 120,000 120,000 125,000 125,000 198,000
TOTAL $133,000 $108,200 $118,500 $119,000 $130,000 $119,500 $124,000 $123,500 $123,500 $129,000 $129,500 $203,500
Weekly budget
RETAIL
REST
NEW ORANGE TEA HOUSE 05/2009
TARGET $ 28,600 GOALS $ 32,000
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY
$400 $400 $400 $550 $650 $600 $300
L D L D L D L D L D L D L
$ 2000 $ 2200 $3600 $5000
SECTION 1500 500 1500 700 2500 1100 3500 1500
OUT
FRONT
200
650
100 200
200 650
120
290
210
895
120
490
250 120
1325 690
BACK
UP
650 200 650 290 895
500
490 1325 690
600
$6000 $3000 $3500
4000 2000 1500 1500 3500
290 120 260 120 200
1405 940 620 690 750
1405 940 620 690 750
900 800
From this weekly budget of May, we can see it is higher than the average monthly, because may is the busy period for the hospitality industry, mother’s day and father’s day both are in this month.
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3.
Determine the profit your business will generate for a year
NEW ORANGE TEA HOUSE
Year End 30/6/2009
Revenue
Food
Beverage
Retail
Total
Less COGS
Food
Beverage
Production cost of retail
Total
Gross Profit
Food
Beverage
Retail sales
Total
Less operating
Expenses
Wages
Employee Benefits
Operating Expenses
Music &entertainment
Advertising
&promotion
$
1,136,250
$ %Sales
73%
378,750
46,200
24.30%
1,560,200
3%
282940.4
51433.2
15708
350081.6
979,060
200,567
30,492
1,210,118
$343,200.00
$10,920.00
$37,590.80
$2,600.00
$24,544.00
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Power &Phone
Repairs &Maintenance
Interest
Rates &Insurance
Depreciation
Total
Net Profit
$16,421.60
$5,626.40
$8,424.00
$10,764.00
$11,024.00
$471,114.80
$739,003.20
7. Complete a cash budget on your business
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Monitor Evaluation
Risk Management
Tea House is a new concept maybe in Australia; however drinking tea has already become very popular in oriental society. However, I think drinking tea will be a trend in Australia, because it is healthier. And another reason is my production is unique and special. We focus on natural ingredients, some of the teas are organic, comfortable sofa seats, and comfortable environment, and it is a good place for people chatting with friends when drinking a cup of nice tea. And we also having professional staff, people will not only get excellent service but also can get useful advice for tea function and tea knowledge. We also do Yum Cha. It is a term in Cantonese which means "drinking tea". It refers to the dining experience of eating small servings of different foods, e.g., dim sum and finger food. In any city with a sizeable population of Chinese people, yum cha is a tradition on weekend mornings, and whole families gather to chat and eat dim sum and drink Chinese tea. Yum cha is also a morning ritual for the elderly to spend a good part of the morning after early morning exercise. We think it is totally a new concept to the Australian people. My place wants to be such a place for Australia people to spend their time with their families, friends, and we hope them really enjoy themselves in my place. So tea is important, for it is said to help digest the rich foods.
What’s more, all dim sum, biscuit and dessert are hand-made everyday. As I also doing tea and the finger food take away, the tea cup and bags for take away will be made of recycle paper instead of plastic material.
The business has allocates six months for the local Australia to know us and our concept. If the sale not good at the beginning time, I will invest some money into the advertisement, and do some customer survey, delivery the new concept to the Australian. Do more promotion, like free sample for customer to try.
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The second risk would be the competitors, from our competitors analysis we can learn the advantages and disadvantages of both ourselves and our competitors will help us deal with competitors undermine about my business entry into the field.
Some of the operating problems might occur would be;
Budget limited--lack of new facilities and equipment, not enough money to invest to advising or build up our own website, etc. To face this problem, we focus on the perfect business plan and operational plan; try to get as much as bank loan. We can lease some of the furniture instead to buy them at the beginning time.
Finding skilled workers—it is maybe a little bit to find skilled worker at first, because my business is a new business, them don't know what would happen in a tea house.
However, we think we have good training skills. We can hire some staffs with only have basic front house experience, but willing to learn something new. We believe thro ugh the training, they will like working in my place, because this is the place which they can relax themselves even when they working. Create a friendly, good environment for employees, less pressure, flexible hours so that they can work more efficiency a nd take more effort to their job.
Gaining market acceptance—most of the Australian used to drinking coffee rather than drinking tea, sometimes it is hard to change people’s habits. For some reason like this, at first, people would hesitate to get into the gate of my place. However, pursue health is a trend; we believe we find the right way to delivery the healthy life style to the people.
They will accept this information shortly.
Global economy crisis—like current, economic crisis, it is a hard economic climate for a beginning business. Price of rental goes up, costs of good goes up while people likely to
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spend less money. We should keep much more good business relationship, like the landlord, suppliers.
New competitors come out—because my business original concept, competitors will come out continually, analysis the competitors, analysis the advantage and disadvantage both of us, adjust the business strategy.
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Future Direction
Good managing business brands, developing marketing strategies and the sale of new products for the shop, and focus on the marketing trends and competitors. Maintain competition advantages, sourcing and creating new tea drinks, ongoing producing of new food products and creates the new menu items and products. Gain industry reputation as soon as possible.
Increasing the business sales continually, developing our business size, become the biggest chain tea house in Melbourne.
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