CALVIN AND CARE RESTAURANT

A BUSINESS PROPOSAL

BY

CALVIN SEMAKULA

Basic Information

Nature of the project: CALVIN AND CARE RESTAURANT

ii
Type of business : sole propriatorship

Capital : UGX50,000,000/

Location : Makerere Kikoni- Kampala

Keys to Success

Using Customer -Relationship management to retain customers.

Through advertisement create awareness of the services offered

Build a first-class marketing channel

Employ skilled professionals to offer quality services

Offer internship opportunities to boost the quality of services provided

Establish long term partnerships with suppliers

At a later stage, using expansion strategy and build branch restaurants nationally

Added Value

Providing fresh organic food

Providing excellent customer care based services

Provide an elegant environment that offers comfort and luxury.

Promoting local economy

Reducing local employment pressure

 SECTION ONE-BUSINESS OVERVIEW

1.0 Introduction

The business plan is aimed at fulfilling the idea generated and hoping to turn into business.
CALVIN AND CARE RESTAURANT project will be the brand name of the restaurant
accompanied by other strategies.

According to the preliminary market research, the demand for restaurant service is very high and
yet the supply is limited leaving a huge gap to the customer. Unfortunately, there is no nice five-
star restaurant around town indicating a big business opportunity.

1.2 Project description

The restaurant is going to develop into a name / branded restaurant with unique food
characteristics and establish a leisure resort leading with the customer care. The restaurant will
offer consumers with honest cares, conformable enjoyment to make consumers enjoy first class
food, services, and environment. Calvin and care restaurant will lead the catering trend bringing
the new ideas to consumers with all cultures being catered for. The restaurant is going to develop
into a name-brand restaurant that offers unique yet fresh and organic food. The restaurant will
offer customers with first class customer care, elegant and comfortable ambience that will give
the diners value for their money. Calvin and care restaurant will lead the catering trend of the
21st century, promoting health, luxury, culture and leisure to the diners.

2.3 Start up

The start-up expenses contain rent, facilities, renovations, utilities, expenses on marketing sales
and promotion, building website, branding, license and so on. The start-up assets include
furniture, kitchen appliances, electricity, various utensils and computers etc.

2.4 Location of the restaurant

The restaurant will be located in Kikoni near Makerere University along sir Apollo Kagwa road
Kampala district. The estimated size of the restaurant is about 100 square meters. Kikoni a busy
area characterized with a number of Makerere student hostel with good road transportation
network Making it favourable for the business.
2.5 Nature of business financing

As projected, the restaurant in its future fifth year of operation, it will lay down shares which will
help the company to increase on its capital. Therefore for the first four years, the business will be
a sole proprietorship implying that it will be owned and governed by one person. The main
source of income for the business is the business owner who in this case in referred to as the
investor for the business.

2.6 Objectives

The main objective of the project is to maximize the return on invested capital in the form of
profit. However, its implementation will benefit the employee, the consumer society and the
government at different levels. Further, the project will also focus on promoting the following
objectives.

o Embark on aggressive marketing and promotion of the Restaurant

o Keep improving the original restaurant, increasing the sales and net margins

o Become a well-known Brand, reaching the target of net margin

o Concrete current scale, start franchising

o To give quality and standard restaurant services.

o To raise the significance and importance of the sector and thereby raising its contribution
to the national economic development.

2.7 Mission

o To expand the standard for the restaurant system and to give quality service.

o To provide to other people that struggle for a better life and economizing dependencies
that can do business and bring change and can make a difference if opportunities are
given.

o To become financially liquid and guaranteed more than ever.

2.8 Goal

Objectives are the goals towards which activities of the business are directed and one of the most
important functions the business owner must perform is setting objectives. This is important for a
joint business although this is a sole proprietorship; where by all the individuals involved have
goals and strong ideas to the business but for the benefit to the community, there will be creation
of employment opportunities for many permanent employees.
 SECTION TWO-RESTUARANT

2.1 The restaurant

The word restaurant covers a broad range of food service operations. The term comes from the
French word restaurant, meaning “restorer of energy (Beth Panitz 2002),” The term was used as
early as the mid-1700s to describe public places that offered soup and bread. Today, any public
place that specializes in the sale of prepared food for consumption on or off-premise can be
described as a restaurant. Food service is generally used to represent the broader term, which
encompasses all sorts of public and private locations that provide food for sale.

Technically a restaurant to be classified under , one dining place having the size proportional to
the guests who have checked in as normal customers do not prefer to worry about going out once
they have settled. The area determination has to take into account this. Hence, the restaurant
must provide the maximum range of varieties at all times. The restaurant will be designed with
attractive colors by a professional art designer.

2.2 Support restaurant

Two kitchens, with the processes of multiple varieties of food preparation and a proportional
capacity to handle the maximum guests to be served in the main restaurant, and this is the critical
requirement for the proposed restaurant. It should be large enough also to accommodate the
working areas of cold and hot meals on the one hand and pastries and bakery on the other in
order to allow reasonable space for workers to move around as well as to avoid the possibility of
contamination and spoilage, the pastries and bakery will be placed at the nearest door joining
the main buffet at the entrance of the restaurant. On the other hand, the kitchen should be
provided with a space to add a small store with a flexible structure to contain butchery and cold-
rooms. These are critical for easy facilitation of cooking‟s. Moreover, the kitchen will have a
well-connected washing corner with at most margin of clearance to make the area safe and clean.

2.3 Store

Like the capacity projection made on the kitchen, the envisaged project requires a store as big as
the varieties of items that are needed to be kept as stock. The store will need to have a systematic
management for stocks properly placed and identified at the time of delivery and inventory.
Hence, it is the required procedure to organize the stock items in separate sections so that the
proper handling of stocks shall be maintained. In view of this, the restaurant requires a number of
stores with sections for food items, beverage, glass wares, silver wares, soft furnishings, cleaning
and sanitary materials, stationery materials all placed according to their physical appearances.
 SECTION THREE-RISKS

3.1 Risk analysis

The major risk of this project shall be high market price fluctuation and turn over the skilled and
trained man power. The risks can be mitigated. The high staff turnover may be lessened by
creating conductive working atmosphere and providing some benefits. For this restaurant 25%
benefits are proposed for the permanent employee‟s characteristics personal risk

This is the most important risk, which should be seriously considered. as to this restaurant, the
investor will need to have sufficient years of working experience in both government and private
organization leading private business by engaging themselves so personal risk is minimum under
this context

3.2 Project risk

The fate of the project is generally found to be dependable. The demand supply analysis exhibits
the need of the service of the business Project plan on Calvin and care restaurant.

According to the overall demand the effect of competitors in the sector would not be an
immediate alarming threat at least for the coming few years. However, the reaction of
competitors should be attended. In addition to an advanced promotional work and sustainable
good will development by creating new and best quality products with good service deliveries.

3.3 Competitor’s risk

Since the business is not as far unique, there are other restaurants within the same locality of the
planned business/ restaurant. It will be the quality of service provided by the restaurant that will
differentiate from others, customer care, branding and packaging, after sales service, holding the
customers, building a strong reputation of the restaurant.

3.4 Labour turnover/skill risk

Employee turnover refers to the rate at which an employer gains and losses employee, how long
the staff tend to leave and join the organization (Armstrong, 2006). Under this business, there is
need to hold the employees especially those who are skilled. To solve this problem, there will be
need to set favorable contracts for the employees to avoid the risk of labour turnover.
 SECTION FOUR-MARKETING

4.0 Market study and analysis

4.1 Market Survey

Market survey is the survey research and analysis of the market for a particular product/service
which includes the investigation into customer inclinations (Samaha, S.2015). A study of various
customer capabilities such as investment attributes and buying potential. Market surveys are
tools to directly collect feedback from the target audience to understand their characteristics,
expectations, and requirements. Market surveys collect data about a target market such as pricing
trends, customer requirements, competitor analysis, and other such details (Samaha, S.2015).

4.2 Market strategy

Marketing strategy refers to a business's overall game plan for reaching prospective consumers
and turning them into customers of their products or services (Mela, C.2010). A marketing
strategy contains the company‟s value proposition, key brand messaging, data on target customer
demographics, and other high-level elements (Kolsarici, 2012). A thorough marketing strategy
covers” the four Ps" of marketing: product, price, place, and promotion.

4.3 Purpose of Market Survey

Gain critical customer feedback, the main purpose of the market survey is to offer marketing and
business managers a platform to obtain critical information about their consumers so that
existing customers can be retained and new ones can have begot onboard (Han, S. 2016).

Understand customer inclination towards purchasing products, Details such as whether the
customers will spend a certain amount of money for their products/services, inclination levels
among customers about upcoming features or products, what are their thoughts about the
competitor products etc.

Enhance existing products and services, a market survey can also be implemented with the
purpose of improving existing products, analyze customer satisfaction levels along with getting
data about their perception of the market and build a buyer personal using information from
existing clientele database.
Make well-informed business decisions, data gathered using market surveys is instrumental in
making major changes in the business which reduces the degree of risks involved in taking
important business decisions.

4.4 Swot analysis

According to Whalley, (2010). Strengths, weaknesses, opportunities and threats (SWOT)

analysis is a device that helps business managers to evaluate the strengths, weaknesses,
opportunities and threats involved in any business enterprise, including farms and ranches. A
SWOT analysis can help them gain insights into the past and think of possible solutions.

Strength Weakness
Quality service Competition
Location Capital limits
Experienced investor
Opportunities Threats
Skilled labour force Limited staff
Increase in the per capita income Price fluctuations
Growth of the hotel industry Seasonal changes
 SECTION FIVE

5.0 Drivers to demand

5.1 Income

This being the primary driver, holds the first preference while being identified as a demand
driver. Income defines the potential and buying power of the consumer. High income will attract
high consumption through the purchase of goods &services. Pre-dominantly, an important force
to support a better lifestyle and prefers quality goods. Some categories/industries observe
maximum sales during the month-end because the majority of the working-class consumers get
their remuneration and wages during the same period.

5.2 Product Price

The price of a specific item or service also acts as a key criterion for consumers to select the
product or switch to a competitor‟s product. At times, pricing may be considered to either make a
purchase or wait for better discounts in the near future. Businesses need to analyze the impact of
pricing strategies compared to competition offering almost every time. Goes without saying that
pricing does not continue to change drastically every month however when it is reviewed, it is
also essential to compare the impact of „Cost to Serve‟ right from the procurement stage to
delivery of goods to Customer. For Calvin and Care restaurant will stick to the prices as per the
menu.
The Menu and Pricing will be as follows:

LUNCH &
BREAKFAST DINNER FAST FOODS BEVERAGES
Item Price Item Price Item Price Item Price
Katogo 7000 G.Nuts 5,000 Plain chips 4,000 Water 15,000
Chips
African Tea 3,000 Beans 5,000 Sausage 6,000 Soda 1,500
Black Tea 2,000 Peas 6,000 Chips kebab 6,000 Juice 2,000
Chapatti 1,500 Beef 7,000 Chips chaps 6,000 Milk 3,000
Chapatti & Goat's
Beans 2,500 Meat 10,000 Chips beef 10,000
A pair of Chips
sausages 2,000 Chicken 12,000 Chicken 10,000
Samosa 1,000 Fish 12,000 Chips Fish 12,000

The restaurant will be open 7 days a week with hours as follows:

DAY OPENING HOURS CLOSING HOURS

Monday 6:30am 10:00pm
Tuesday 6:30am 10:00pm
Wednesday 6:30am 10:00pm
Thursday 6:30am 10:00pm
Friday 6:30am 10:00pm
Saturday 7:00am 9:00pm
Sunday 7:00am 9:00pm
5.2 Consumer Taste

Time and again manufacturers have continued to deliver better quality products. This is primarily
due to a consumer‟s behavior in opting to consume better or superior quality goods. It has also
been observed that consumers with such a mindset do not bother on Price. All that matters to
them is a good product and they do not compromise on the quality at all. This behavior mainly
comes from consumers falling under high-income group.

5.3 Expectation from Product

Whatever is bought, it should definitely fulfill the consumer‟s expectation. The purpose of
purchase could be a necessity, fashion, commercial need, luxury, health, etc. Be it a better
quality product or allow priced item, any and every consumer has few or many expectations from
the product. If that stands unfulfilled, it is often observed that the customer switches to a
competitor‟s product and eventually churns out of our business. It becomes an important driver
to keep our customers loyal to us and continue to prefer our products for future consumption too.

Note:

The major target groups Calvin and Care restaurant are those who are in the country like
students, business people, all kind of individuals. Providing quality services and consistently
improving with the changing situations should be the promoters‟ objective. Hence, according to
the feasibility study.

Contacting government and private agencies affiliated with tourism on a regular basis, informing
them of any corporate rate, discount programs, availability of services, etc.

Emphasizing the access of the proposed restaurant to support client‟s attractions, as well as the
services and amenities available.

Special effort will be made to emphasize the price-value relationship of the service available,

Actively marketing the restaurant prior to the completion and opening,

An aggressive local marketing effort and promotion of the restaurant market to enable the
restaurant to capture a more than proportionate share of support within the market,
Working with local people to establish a competitive amenity package responsive to specific
requirements.
 SECTION SIX-MARKETING

6.1 Market mix method

6.1.1 Product

This represents an item or service designed to satisfy customer needs and wants. To effectively
market a product or service, it's important to identify what differentiates it from competing
products or services. It's also important to determine if other products or services can be
marketed in conjunction with it.

6.1.2 Price

The sale price of the product reflects what consumers are willing to pay for it. Marketing
professionals need to consider costs related to research and development, manufacturing,
marketing, and distribution otherwise known as cost-based pricing. Pricing based primarily on
consumers' perceived quality or value is known as value-based pricing.

6.1.3 Placement

The type of product sold is important to consider when determining areas of distribution. Basic
consumer products, such as paper goods, often are readily available in many stores. Premium
consumer products, however, typically are available only in select stores. Another consideration
whether to place a product in a physical store, online, or both.

6.1.4 Promotion

Joint marketing campaigns also are called a promotional mix Activities might include. should be
for the budget assigned to the marketing mix. Marketing professionals carefully construct a
message that often incorporates details from the other three Ps when trying to reach their target
audience. Determination of the best mediums to communicate the message and decisions about
the frequency of the communication also are important.

6.2 Competitive strategy

In Uganda, it has a fierce competition in the catering industry, Calvin and Care restaurant will
use the differentiated marketing strategies to make a distinction from other restaurant, building
our own features to take up more market share without reducing the prices.
6.3 Target market and differentiated consumer group.

There is no this kind of restaurant in Kampala district, therefore it has a large potential market.
At the same time, we will make effort on high income consumers to excavate their demands.

6.4 Unique product and services.

The philosophy is; details make perfect. We will keep on finding out the advantages of our
services to make further improvement and develop more products demanded by the market. For
our services, with the business culture as the direction, we will refine all the details and
consolidate relationship marketing to increase customer loyalty.

6.5 Competitors overview

There are some standard restaurants with in the area code Kampala but still there is a huge gap
but our restaurant service is doing quality and clean services. In addition to the above, the failure
stories that I have observed from others and the comments collected from my customers will
help me to win my competitors. In conclusion, my service compared to the competitors looks
like:

 Keeping the promise made

 Quality service is my motto

 Transparent price setting and fair price will be bases to win the competitors

The long term experience and goodwill that he has achieved from respected customers will allow
me to win the competitor. In addition to the above, the failure stories that we have observed from
others and the comments collected from our customers will help us to win our competitors.

6.6 Market segmentation

6.6.1 Business men

This group of people cares about the class level of the restaurant when they want to discuss
business they need a quiet place Calvin and Care restaurant will provide food with unique taste.
Our excellent service with unique environment with special ethic feature is also main factors to
attract them.
6.6.2White collars

Currently people are suffering too much stress from various aspects; they need a place to enjoy
themselves with their families and friend. Calvin and Care restaurant will provide them a
relaxing place to have fan.

6.6.3 Tourists

Uganda receives a good number of tourists therefore, Quality and Care restaurant through
marketing, tourist a will be able to access the restaurant since there will be good attractive local
foods. And other cousins like English breakfast, Chinese dishes, English dishes among others.
Therefore those who will be visiting and touring Makerere University will be the customers at
the restaurant.

6.6.4 Students

The location of Calvin and Care restaurant favors it to attract students to access it and this group
of people, they chess new and interesting things and they always gather together for fun. Calvin
and Care restaurant will provide them with an interesting feeling.
 SECTION SEVEN

7.1 Personal plan

Calvin and care restaurant will train all the employees to improve their skills and capabilities in
order to ensure that their services at the restaurant best fit the name. Also the customers
satisfaction will be based on the quality of the services provided by the restaurant.

Further, the restaurant will care more on its employees because its them who will provide the
services. This will be through motivation, respect of the workers, keep a good employee-
employer relationship.

7.2 Strategic alliance

This will comprise of both longitudinal and crosswise alliance; where by crosswise alliance
means as the entrance condition is too low in the catering industry, therefore it is impossible to
avoid competence with the development of the catering industry. While with the case of our
plan, the restaurant will allow cooperation to expand its business and if necessary, at a certain
period, the restaurant can cooperate with its rivals to some extent. Longitudinal alliance, keeping
a good relationship with the upwards and downloads of the supply chain to maintain long term
cooperation.

7.3 Performance appraisal

This will improve the employees performance to attain the management objective to increase
their job satisfaction and future achievement. Also the appraisal result is to give feedback,
rewards management, position arrangement and work improvement. This method will be
combined with the motivation to give reasonable salary arrangement and position change.
Besides its important to let employees to understand their appraisal to make them find shortages
to increase their positivism and work efficiently.
7.4 Appraisal principle

Honesty – This will comprise of fairness in all what our restaurant will serve,
truthfully to our customers and sincerity

Openness – The management will be not only open to the clients but also the
director of the restaurant.

Consistency - This will be majorly on the services rendered by the restaurant

hence making the services reliable to our customers.
 SECTION EIGHT- FINANCIAL PLAN

8.0 Income versus expenditure

Basing on the average restaurant business operations in Uganda, the restaurant is expected to
receive approximately 80 customers per day (from opening hours up to closing time) and each
customer is expected to spend Ugx 7,000 on average.
Below is a breakdown of the income and expenditure:
INCOME AGAINST EXPENDITURE
DETAILS INCOME
MONTHLY INCOME PER
DAILY INCOME INCOME ANNUM
Number of customers versus Bill per
Customer (80*7,000)=560,000 16,800,000 201,600,000
LESS EXPENDITURE
DAILY MONTHLY EXPENSES PER
EXPENSES EXPENSES ANNUM
Sauce expenses 254,000 7,620,000 91,440,000
Food expenses 144,500 4,335,000 52,020,000
Wages 44,999 1,349,970 16,199,640
Miscellaneous expense 20,500 615,000 7,380,000
Rent rate 16,667 500,000 6,000,000
Water bill 3,000 90,000 1,080,000
Electricity bill 5,000 150,000 1,800,000
TOTAL EXPENSES 488,666 14,659,970 175,919,640
PROFIT/LOSS
MONTHLY PROFIT PER
DAILY PROFIT PROFIT ANNUM
71,334 2,140,030 25,680,360
8.1 Projected profit and loss

Year 1 Year 2 Year 3

Cash received 50,000,000 100,000,000 200,000,000
Cash from sales
Cash from receivables
Sub total cash from operations 50,000,000 100,000,000 200,000,000
Additional cash received 25,000,000 50,000,000 100,000,000
Sales tax received
New current borrowing
New current liability
New long term liabilities
Sales of other current assets
Sales of long term assets
New investment received
Sub total 50,000,000 100,000,000 200,000,000
Expenditures Year 1 Year 2 Year 3
Expenditures from operation 30,000,000 70,000,000 120,000,000
Cash spending
Bill payment
Subtotal spent on operation 35,000,000 75,000,000 125,000,000
Additional cash spent 5,000,000 3,000,000 12,000,000
Sales tax 150,000 100,000 1300,000
Other lisbilities
Purchase other current assets
Purchase of long term assets
Dividends
Sub total cash spent 200,000 150,000 12,000,000
Cash balance 35,000,000 70,000,000 175,000,000
 SECTION NINE

9.1 Monitoring and evaluation plan

Monitoring and evaluation on (M & E) has long been reorganized as a vital aspect of developed
projects generally and of industrial and service projects in particular

The monitoring of project performance and consists of tracking of human, physical and financial
resources and the recording of how they are converted into outputs project goods and services,
and in turn outcomes and impacts.

9.2 Management

The management team of the restaurant will initially consist of the manager, head chef and junior
chef, 8 waiters and waitress. The manager has to be experienced and this will be probably needed
to ensure that the restaurant breaks even as soon as possible. Also there will be several
departments like marketing , legal among others with several department like marketing, legal
among others with senior personnel’s. The kitchen will be headed by the senior chef who will
be responsible for the purchase of the food items. Lastly the expansion on the management will
depend on the profitability of the business.

Management structure

DIRECTOR

MANAGER

Technical Staff Support Staff

CHEF  Legal team
 Waiters
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