Free Essay

Around the Corner Business Plan

In: Business and Management

Submitted By brijalpatel0
Words 3084
Pages 13
Around The Corner

A. Project Scope Statement

We aim to provide consumers in the Buckhead area with a healthy, delicious and convenient breakfast meal. We will give people the ability to eat their breakfast foods. This project will span over one year. This one-year will include planning, assessing, gathering materials, execution, control and evaluation, and finally, modification. Our coffee shop Around the Corner already has a standing presence in Buckhead as a popular go-to spot for customers to get satisfy their caffeine cravings and socialize. We want to integrate a breakfast menu into already established coffee shop to attract more customers and expand our business.

B. Time, Cost, Performance Trade-off Assessment

1. Cost Estimates
Direct costs: Materials, Labor & Equipment a) Increased store hours (morning hours) = additional labor Payroll: Two Shifts: 7-3 & 3-11. Total 8 employees: 4 cooks @ $12.00/hr. and 4 waitresses @ $9.00/hr. = $3360/week b) Cost of new kitchen equipment: 1) Griddle- $700 2) Toaster Ovens: $500 3) Bread Steamer: $800 4) Cook Top: $800 5) Cold Well: $2000 6) Panini Grill: $300 7) Waffle Maker: $500 8) Small wares: $700
c) Weekly Breakfast Food Costs: $2,100
Indirect Costs: Advertising, Cleaning supplies, Utilities, Office equipment a) Advertising expense to promote breakfast - (Paper menu’s, weekly ads in local newspapers, direct mail advertising (USPS every door direct mailing service), mail coupons, advertise online through Yelp, Resturants.com, etc - $150/month b) Cleaning supplies: $100/month c) Utilities: $150/month d) Office equipment: $50.00
Scheduling Conflicts: Overlap or schedule conflicts between subcontractors in building the kitchen unit. Conflict in delivery schedule from food vendors: Late or the wrong time deliveries. Poor arrangement of employee shifts on the schedule such as accidentally scheduling an employee for the morning and afternoon shift (double shift).

Resources Conflicts: Lack of food recourses due to vendors selling out. The need for additional space to accommodate for additional breakfast inventory such as cooler, freezer, dry storage and space will be an added cost. Also, the need for cash on hand resources to float the business while building the breakfast business, pay roll and increased inventory costs. Our breakfast sales would sooner or later need to exceed the labor expense for it to remain feasible. 1. Time-Cost Trade off: Trying to shorten the project time in providing the necessary means to add a breakfast menu will increase costs & the following actions may need to be taken:
· Have subcontractors use of materials with faster installation methods
· Use alternative construction methods or sequences to speed up process.
· Overlap construction activities to speed up the process such as scheduling subcontractors to finish work around the same time if possible.
· Additional or multiple employee shifts would need to be added: If the store hours are increased to more then 8 hours, we would need to add more labor costs due to increased shifts (two shifts) and more employees (2 sets of employees).
· Work extended hours (over time) to finish the project
· Use larger or more productive kitchen equipment to increase the delivery speed of food 1. Performance-Time-Cost Trade Off: Experience and joint team effort will increase productivity, speed up output and decrease costs of labor. The following actions may need to be taken:
· Hire experienced cooks
· Offer incentive/bonus payments to increase productivity of employees and make sure there is the following: Unity of team purpose, increased collaboration, better decisions, creative changes, improved relationships and high performance teams.
· Give the best employees a raise to improve or maintain quality performance.
· Schedule the more experienced employees with the less experienced for better training purposes to increase productivity.
· Need to ensure the quality of service is not degraded due to additional workload.

C. Work Breakdown Structure

Our work break down structure includes several deliverables and sub-deliverables. Our critical path has been outline in red. It includes staffing, attaining equipment and permits, managing additional costs, following regulatory guidelines, and hitting marketing initiatives.

D. Preliminary Timeline
1 Year before Launch
· Assess financial position
· Present idea to business partners/stockholders/investors
· Meet with attorneys, accountants, bankers
· Inquire about required permits/licenses
· Review tax implications
· Determine breakfast start up costs
9 Months before Launch
· Continue business research
· Apply for required permits
6 Months before Launch
· Begin research and place orders for equipment/dining materials/ signage
· Seek and establish suppliers
· Develop Menu
· Renovations start
· Place ads for additional employees
3 Months before Launch
· Delivery of equipment begins
· Continue interviewing potential employees
· Finalize design of marketing materials (ie: flyers, coupons, banners) and order them
1 Month before Launch
· Complete employee training
· Initiate marketing plan: hanging notices, handing out coupons
· Make announcement in local papers
· Stock inventory
· Notify appropriate parties of soft opening/ breakfast trial run
2 Weeks before Launch
· Soft opening
Day of Launch

Due to the fact that ACC is expanding the services it offers, the top-down approach would seem to be the likely choice as it derives estimations based on cost histories and an individual’s experience with the subject matter. The project team felt that although the top-down approach was quicker, the detail provided by the bottom-up approach reduced the chances of cost-eating dangers being hidden. Once complete, it leads to the creation of a more finalized schedule (below).

E. Resource Allocation 1. Identifying and resolving scheduling conflicts

To achieve a successful implementation of the addition of breakfast to our coffee shop, Around The Corner, we will be executing the following: • Reviewing availability with current employees to adjust their availability, and to work through any potential scheduling conflicts. • Announce breakfast addition to the team, including new store hours and new shift times. • The new store hours will be from 7am through 11pm every day. • Around The Corner will serve breakfast to our customers throughout the day. • To successfully implement our new breakfast addition, we will have two separate shifts: a morning shift beginning at 7am to 3pm, and a closing shift beginning at 3pm to 11:30pm. • In order to properly serve our customers, Around The Corner will have two waitresses and two cooks per shift, which means we will have eight employees working everyday. • Waitresses will make $9.00/hour, not including tips. • Cooks will make $12.00 an hour.

After completing a thorough assessment of the scheduling conflicts, we have identified that one of our conflicts will be opening the availability of our current employees. We have resolved the scheduling conflict by having chat sessions with all of our current employees, and agreeing on a final availability that will work for each of them.

Another conflict that we discovered while changing our operating hours is because not all of our current employees will not be able to change their availability to fit the needs of the business, we will need to hire 6 additional employees. We will open positions to the community for two cooks, and four waiters.

F. Risk Assessment/Response 1. Inadequate Capital
Risks: Underestimating costs for new kitchen equipment and appliances, food costs, menu advertising costs and additional labor costs.
Response: Plan to have several months of funding to cover the costs of salaries, food and bills and any contingency funds for potential risks. 1. Disruption of Food Vendors
Risks: Interruption of food deliveries due to adverse weather, late deliveries, loss of dependable suppliers and increase in food prices.
Response: Keep more then one vendor for food supplies in case of the loss of or bad weather conditions. Also, be sure to check references of the vendor companies in looking for the best quality product and service and more importantly finding the best deal in negotiating prices for food products.
3. Potential Hazards in the Kitchen
a. Equipment Failure/ Electrical Hazards Causing Fire
Risks: Cooking equipment failures, improper wired or underground outlets, damaged receptacles and connectors, faulty equipment and wiring, worn electric cords and improper use of damaged extension cords and wet cleanup processes,

Response: Make sure kitchen equipment is in good working condition and be sure to have adequate warranties in place. Also, use Ground fault circuit interrupters (GFCIs), which are required by the National Electric Code in all new kitchens. Use of the GFCI’s receptacles will monitor the difference in the current flowing into and out of a tool or appliance. But when that difference exceeds 5 milliamps, an indication that a ground fault may be occurring, the GFCI shuts off the flow in an instant. GFCI’s are inexpensive ($50-$85 for breaker type, $25-$45 for receptacle type) and a qualified electrician can install them in existing electrical circuits with relative ease. Ensure that all electrical service near sources of water is properly grounded. Ensure that employees are trained not to plug or unplug energized equipment when their hands are wet. 1. Employee Injuries
Employers must comply with all applicable OSHA standards such as:
Employers have the primary responsibility for protecting the safety and health of their workers. Employees are responsible for following the safe work practices of their employers.
Risks: Burn injuries from hot oil, grease and steam, strains and sprains from prolonged standing while cooking, cuts from knives or other kitchenware and slips, trips and falls in the work area.
Response: Provide employees operational safety measures: Define policy and procedures in employee handbook, which is a perfect tool for laying out information pertaining to your restaurant's policies and procedures on everything from safe food preparation procedures to employee conduct, train employees thoroughly in the proper procedures and behaviors in using the employee manual as a frequent demonstration as a tool to support the training and hold regular safety meetings to keep employees aware of safety procedures, which is crucial in order to keep employees from sustaining an injury or other risky behavior. Also, have employees report any unsafe working conditions in order to prevent further injuries. 1. Food Safety, Spoilage & Contamination
Risks: Foodborne illnesses such as Salmonella, E. coli or Campylobacter bacteria, cross-contamination causing the spread of bacteria, food poisoning, and the spoilage of food products.
Response: Put a good hygiene program in place to prevent food handlers from contaminating food, have food safety procedures, cooking guidelines, and proper food storage instructions for all employees. Provide training on the time/temperature control for safety (TCS) foods that require time-temperature control to prevent the growth of microorganisms and the production of toxins. Use clean or different kitchen utensils for raw meat, dairy products or cold foods to prevent cross-contamination. To prevent spoilage, make sure to order fresh produce frequently and use the first-in-first-out (FIFO) strategy of inventory for especially perishable products (or products with relatively short shelf life) and follow the proper food storage guidelines. 1. Health Inspection
Risks: Failing or getting an undesired score on periodic health inspections due to food from unsafe sources, inadequate cooking, improper holding temperatures, contaminated equipment and poor personal hygiene.
Response: Develop and implement food safety management systems to prevent, eliminate, or reduce the occurrence of foodborne illness risk factors. Management should hold regulatory inspections where follow-up activities must be proactive in food code interventions such as the demonstration of knowledge in sanitary practices, contamination of food products, implementation of employee health policies, time/temperature relationships of food and consumer advisory regarding allergens. 1. Consumer Allergens
Risks: Consumer allergic reactions from breakfast items
.
Response: Train front-line and the kitchen staff for potential allergies associated with particular ingredients of food to prevent any consumer illness by using the online source called “ServSafe Allergens” for additional information. Also, designate all employees to personally tell the kitchen staff about the allergy so they can take steps to avoid cross-contamination. Also, provide a message at the bottom of your menu that say, “If you have a food allergy, please let us know.” 1. Potential Lawsuits
Risks: Property damage, personal and employee injury, damage from false advertising or slander and consumer injuries caused from food poising, foodborne illness or allergies and angry consumers.
Response: Be sure to speak to an insurance agent or an attorney on the necessary restaurant insurance needed to be purchased.
· General liability insurance: protects the insured business against personal injury, property damage and advertising injury, including damage from false advertising or slander, and protection in case someone slips and falls or becomes ill after eating in your restaurant.
· Personal injury insurance: protects your restaurant against lawsuits in the event that a guest becomes injured in your restaurant.
· Worker's compensation: Protects from events that an employee is injured on the job.
After defining the breakfast project, Around the Corner Cafe (ACC) then enters into the second stage of the project life cycle which is called the planning stage. Here is where schedules and budgets will be developed. The initial schedule as shown below is a result of the project team using the process of estimating to establish a broad view of the project’s schedule. As mentioned before, project costs are also discussed at this stage and are also subject to estimation.

G. Finalized Schedule

July 2015 • 7th - Discuss proposal with attorney accountant and bank • 14th - Meet with investors • 24th-28th - Assemble project team

August 2015 • 4th - Meeting with project team to discuss business research findings • 11th - Project team meeting determines breakfast start up costs • 18th - Discuss necessary permits and began splitting of roles • 25th - Finalize team members’ project responsibilities

September 2015 • 9th - Send food handlers’ permit applications, totaling $250
October 2015 • 14th - Received approval/permit from the State Board of Georgia • 16th - Team meeting and status report given
December 2015 • 7th - Meeting to discuss need for additional equipment and cooking materials

January 2016 • 6th - Meeting to finalize which materials will be ordered • 8th - Place orders
February 2016 • 9th - Status report given to investors; discuss potential suppliers • 16th - Determine suppliers and present contracts to attorney for review • 19th - Contracts signed and renovations begin
March 2016 • 8th - Team meeting to discuss final breakfast menu • 15th - Job wanted ads placed via social media and the local paper; Chefs and servers
April 2016 • 5th - New fixtures/equipment are received • 14th - Conduct 2nd round of interviews and renovations are completed • 19th - Meeting held to finalize marketing materials
May 2016 • 3rd - Team meeting to give status report • 6th - Final review of inventory stock • 17th - Complete employee training and begin marketing plan • 20th - Invitations sent to investors, select clientele and media for soft opening • 31st - Pre-launch/ Soft opening
June 2016 • 6th - Team meeting to discuss reviews of soft opening • 9th-15th - Final check of inventory, equipment, employee schedules and menu • 20th - Breakfast option open to the public

H. Managing the project

1) Stakeholder (social network) analysis

a. Owners and investors

‘Around the Corner Cafe’ is a privately owned company with private investment for this project. The main stakeholders will be the owners and investors as their investment will be required to launch this project.

b. Sponsors

Current sponsors will have the opportunity to expand their sponsorship to include the new breakfast menu. Additionally, this will give us the opportunity to approach a different sponsorship clientele as well.

c. Employees

The present and future employees are important stakeholders in this project. As they will be part of the day-to-day operations, they will be the best way to judge the success or failures of the project. Their input will be used to tweak and update the project as needed

d. Present customer pool

The current customer pool will have the opportunity to receive the benefits of the increased menu first hand. Their approval will mean increased loyalty to the establishment and positive recommendation among their social network e. Future customers

The increased menu options will encourage customers with different needs than previously met to visit Around the Corner. Although initially this may be a small group, it will grow to be its own category with time

2) Keys to Success

a. Appealing to our present client pool - All menu and other changes will be made after careful consideration. This way we can ensure that these changes won’t negatively affect our sales and profit margins

b. ‘Trial’ menu - Smaller, ‘trial’ menu options offered to test the market and see which items on the menu are popular and will be profitable to keep on the menu

c. Focus on the customer - Keep the menu options focused on the customer, and the customers needs. This can be done through surveys, and using the trail menu option.

d. Marketing campaigns - extensive marketing campaigns advertising ‘deals’ offered to the customer - combo deals, free coffees loyalty programs, etc. This will be set in motion to encourage new customers, and focus on building loyalty among our existing customers

e. What keeps it unique - Continuously implementing ideas that sets us apart from other coffee/breakfast places. For example: i. Open late/early for students as needed ii. Special discounts for certain clients (loyalty programs, exam week discounts for students etc.) iii. Special request items on the menu that won’t be offered elsewhere

II. Project Update

A. Status Report

A status report was conducted halfway through the project to evaluate and analyze the progress and direction we were heading in. Below is the status updated conducted on January 2015.

1. Performance Indexes: a. Based on performance indexes, our project so far is 45% complete; however has used 60% of funding and taken up 65% of total work hours. 2. Narrative of Key Events a. Issues that have severely impacted us include: i. Delayed building inspection ii. Unexpected costs related to bringing the building up to modern codes iii. Purchasing insurance for various risks that may occur has cost more than expected. iv. Lack of motivation among employees to complete project on time v. Unreliable supplier of food and shift pricing has led us to finding alternate suppliers. vi. Delayed consensus on look and atmosphere of Around the Corner vii. among co-owners.

B. Problem Solving and Managment

1. Description: a. We can solve these issues by referring to the risk evaluations and responses segment mentioned earlier. b. The delays will have to made up using the built in slack, and in the end the day we will have to live with additional time on the project end date and the associated costs. c. To deal with scheduling conflicts amongst the staff, we will initiate a system that allows people to communicate instantly without pressure and enjoy coming to work. We want our employees to share our missions and vision.

C. Keys to Success: d. Focus on the customer e. Marketing campaigns f. Trial Menu Options

Thank you,…...

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