GAC012 Assessment Event 2: Project-Written Report
Business Plan: Saint Augustine
Student’s Name:
Hogene Kim
Student ID #:
Teacher:
Due Date:
Word Count:
Mr. Ojala
GAC012 AE#2
Hogene Kim
Table of Contents
Executive Summary ...................................................................................................................................... 2
1.0
Introduction ........................................................................................................................................ 2
1.1
The objectives of the research ........................................................................................................ 2
1.2
The context ..................................................................................................................................... 2
1.2.1
Prime function ......................................................................................................................... 2
1.2.2
Key competitors ...................................................................................................................... 2
1.2.3
Legal structure ........................................................................................................................ 3
1.2.4
Choice of Business .................................................................................................................. 3
1.3
Background knowledge .................................................................................................................. 3
1.4
Thesis Statement............................................................................................................................. 3
2.0
Method ............................................................................................................................................... 4
2.1
Data collection ................................................................................................................................ 4
2.2
Research objectives from data collection ....................................................................................... 4
3.0
Findings.............................................................................................................................................. 4
3.1
Key success factors......................................................................................................................... 4
3.2
SWOT analysis of the business and an alternative ......................................................................... 5
3.3
Summarization................................................................................................................................ 5
4.1
Interpretation .................................................................................................................................. 6
4.2
Assess the effectiveness of the research ......................................................................................... 6
5.0
Conclusion and recommendation ....................................................................................................... 6
5.1
Identification and Justification ....................................................................................................... 6
5.2
Competitive edge ............................................................................................................................ 7
Reference List ............................................................................................................................................... 8
Appendices.................................................................................................................................................... 8
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Hogene Kim
Executive Summary
This business plan for Saint Augustine an Italian restaurant will examine the possibility
of success of the restaurant in two different areas.
The two locations will be near Gyo-Dae station, and Gang-Nam station, which has many
floating population of students. The locations are flooded with Korean traditional food restaurants
but don’t have many traditional Italian restaurants. Also, Gyo-Dae station is near many
apartments, making it possible to become a restaurant for family unions.
Restaurant will hire highly trained chefs and advertise through newspapers. As there are
many things to put money, the expectation to make profit is very limited in the first few months
however, I expect 5% increase in every month.
1.0
Introduction
1.1
The objectives of the research
The objective is to open a restaurant and make it a profitable and pleasurable
space. Making profit is the biggest goal, but to do that, serving high quality food is
essential. The main appeal to the public will be the diverse pizza, so everyone can choose
what they want. This is a very unique style, and will stand out to the public.
1.2
The context
1.2.1
Prime function
 Provide Italian food to customers
 Entertain people with Italian wine
1.2.2
Key competitors
The key competitors are Il Mare which is a very famous Italian restaurant
franchise. There are several huge restaurants like this in Korea, but there are also
small restaurants like the Saint Augustine, and they will be the key competitors.
Also, there is a small Italian restaurant called Cola Pasta, which is one of the
popular restaurants around Gyo-Dae station, and it will be a very big competitor
as royal customers will keep on going to that restaurant. Also, Italian restaurants
are not the only competitors as people don’t eat Italian food as their main meal.
Other Korean traditional restaurants are also a big competitor.
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1.3
Hogene Kim
1.2.3
Legal structure
The Saint Augustine will be a private company owned by nongovernment personnel.
1.2.4
Choice of Business
The way that people choose to eat has changed over time. In the past,
eating at Italian restaurants was considered as a discretionary spending.
However, nowadays it is not considered over spending money on food because
people have more money to spare. I saw this trend as an opportunity, and
thought that this business could be very profitable. Pizza is one of my favorite
food, and therefore I have a lot of knowledge regarding it, so it made be decide
to plan an Italian restaurant.
Background knowledge
Business plan is an overview of the whole business from the inside and
out. It must be easy to read, and show directions of how the business is going to
operate. This plan could be used to attract partners, or to borrow money from the
bank.
When writing a business plan, there is an important factor which is called
the SWOT analysis. SWOT stands for strength, weakness, opportunity, and
threats in a business. Strengths and weaknesses are related to internal factors and
opportunities and threats relate to external factors. By using SWOT analysis, it is
possible to understand the strengths and weaknesses that are inside the business
and outside the business.
In the past, eating out was considered discretionary spending, and people
didn’t have many chances to eat out. However, these days, eating Italian food out
is not considered such a luxury as people earn much more money than before.
Also, the couple’s trend in eating out is currently Italian restaurant, giving
opportunities for new Italian restaurants.
1.4
Thesis Statement
As a result of this research, I believe that I could open an Italian
restaurant and be successful.
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2.0
Hogene Kim
Method
2.1
Data collection
1. Interviews
(Cola Pasta)- Near my neighborhood.
(IL Mare)- Near Gang-Nam station
2. Internet sources
www.nationmaster.com – Information that includes how much food spent in detail.
www.bplans.com – Information about Italian restaurant business plans
www.koreatimes.com - News about the floating population.
2.2
Research objectives from data collection
The main objective of the research was to make an Italian restaurant profitable
by making the restaurant a pleasurable place that people can enjoy. By researching the
internet and through interviews with successful restaurant managers, it was able to
know how much it costs to maintain a restaurant and how much money I needed to
earn not to go out of business.
3.0
Findings
3.1
Key success factors

Location
Gang-Nam Station- According to the Korean Times, it is the second
most crowded place in Seoul with floating population of 113,600.

Food
Provide fresh and delicious food. Diversity of pizza is the main appeal
to the public

Entertainment
Live piano concert, with Italian wine
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No restaurant in Gangnam or Gyodae has an Italian restaurant that has
piano concerts, and the soothing atmosphere will attract people who
want a good mood when eating delicious food.
Plan
Location
Product
A
Gangnam
Traditional Italian pizza &
pasta
expensive
Couples, young female, and
college students
Maintenance fee
Main customers
3.2
B
Gyodae
Traditional Italian pizza & pasta
cheap
Family, young couples, and
college students
SWOT analysis of the business and an alternative
Strengths Weakness






3.3
Product
New restaurant has advantage
 The maintenance fee is expensive.
because it is fresh.
 The brand is unknown to public
Any kind of people can enjoy the
 Lack of experience in the market.
food
Affordable price.
Opportunities Threats
Big academy about to enter the
location.
Unique style of food
Well-being trend


Famous restaurant is near the
location
Economic slump
Summarization
Interview 1: Cola Pasta manager
Traditional Italian food mainly Steak and
pasta.
Bread and cake baked out of the oven
11 a.m. to 10 p.m.
Business
hours
Seating
100 seats, (20 outdoors)
capacity.
Average
earnings per
day.
Maintenance
fee
Interview 2: IL Mare manager
Italian food focused on pizza and pasta less
focused on steak
11:30 a.m. to 11 p.m.
74 seats
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Hogene Kim
The interview covered two successful Italian restaurants in two locations.
According to the interview, Cola pasta was actually more focused on selling steaks than
pasta, while IL Mare focused on almost every aspect of Italian food. The maintenance
fee was much higher in IL Mare as expected (there are a lot of floating population near,
making the land much more expensive), but the earning per day was not so much higher,
which was far from my expectation. The operating hours were similar.
4.1
Interpretation
By interviewing to successful managers who work at Italian restaurant, the
problems faced because of the high maintenance fee was inevitable if were to operate
the restaurant in a location with high concentration of people. Gangnam was the
location with much more floating population, but the actual amount of customers
distributed was similar due to a lot of competition. Also, as the land was expensive in
Gangnam, there weren’t enough seats to make every customer sit down. Consequently,
people had to wait, and this made the restaurant less successful.
4.2
Assess the effectiveness of the research


Economic factor
As the economy is facing the prosperity part, people have money to spend on
discretionary spending which is eating at an Italian restaurant. The manager of
the Cola pasta said that the earnings have increased slightly after the economic
prosperity started. Also, according to the Korean Times, the floating population
in Gangnam in 2011 was very great, and one reason for this is because people
have more money, they can spend them on shopping and eating luxurious food.
Social factor
The well-being trend in Korea has stopped people from eating fast food like
American pizza, hamburger, and fried chicken. However, the Italian pizza is
good for health and tasty. This resulted in more consumption of food in Italian
restaurant, making the earnings in a restaurant bigger.
5.0 Conclusion and recommendation
5.1 Identification and Justification
After doing all the researches, plan B seems much more competitive than plan A.
Plan A was thought to be more preferable at first, but the maintenance fee was much
more expensive than what I have expected. Also, even though there was a lot more
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floating population in Gangnam than Gyodae, not many people were actually willing to
eat Italian food as there are so many choices in Gangnam.
Gyodae, which is the location of the restaurant for plan B, is closer to
apartments, making it easier to attract families as customers, and because families
spend more money than couples, it is a better location for Saint Augustine to take
position.
5.2
Competitive edge
The point that stands out the most is the diverse kinds of pizzas. Saint Augustine
will focus on developing new pizza every month. Bringing fresh ingredients for the food
that will be served at Saint Augustine will affect people to come again. Also, I will build
the pizza oven at the middle of the hall so that people can be interested in watching the
process of how the pizza is made. Another point is that there will be a monthly mini
piano concert with special guests and the piano performer will attract customers who
seek mood.
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Reference List
Appendices
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