Focusing on its strengths, key customers and the underlying values they need, Japanese Fine Dining Restaurantwill increase the provision of restaurant services and food products to more than half the market at Marina bay Sands in the three years, while improving the gross margin on sales and cash management as well as working capital.
This business plan leads the way to renewing our vision and strategic focus: provision of first class restaurant services and products while adding value to our target market segments. Japanese Fine Dining Restaurant focuses on local customers as well as attracting visitors who come outside the town. It provides a step-by-step plan for improving our food products and service delivery coupled with profitability.
Restaurant business is the Singapore’s fastest growing economic activity; the business has turned Singapore into an increasingly known due to the quality of services and therefore providing economic opportunities that are currently transcending borders, languages and cultures.
Japanese Fine Dining Restaurant’s Strategy
Japanese Fine Dining Restaurant is positioning herself strategically to offer support to the hotel industry in Marina bay Sands especially in increasing food revenues for Singapore hotel industry companies to achieve about $50 million.
Japanese Fine Dining Restaurant is built on the assumption that the management of hotel industry requires smart business people who aren’t restaurant hobbyists. The employees will have the zeal to provide quality hotel services. Japanese Fine Dining Restaurant is determined to use its quality in hotel business and professionalism in service provision together with other trusted allies in food industry to deliver the best market mix. The restaurant is committed to fulfill these needs and become the leader in hotel industry in Singapore.
Japanese Fine Dining Restaurant is looking $5 million for its first round of financing and $10Million in second round. Japanese Fine Dining Restaurant projects a return of approximately 60% IRR after 3 years of operations with 57% share worth $24 Million.
Because of the strategic location of the restaurant and the long term loyalties of the sports fans the restaurant will have an indeterminate life cycle as long as its high standards of food and service will be maintained. The management will conduct a self study regularly to ensure that the concept and the menu are rejuvenated.
Japanese Fine Dining Restaurant is a food and restaurant services hotel specializing in the provision of food products and drinks that add value to local and international tourists. The restaurant is committed to delivery of high quality food stuffs, to customers across a broad spectrum of domains. With the head office in Marina bay Sands, Singapore Japanese Fine Dining Restaurant is founded as a Limited Liability hotel.
The story of Japanese Fine Dining Restaurant is not very common as a joint venture between four successful hotel and business professional young men. The production, provision and maintenance of high quality restaurant services for the emerging local market are a major focus of the venture. The four have spent time together in the past two years analyzing the market and especially the growth of the hotel industry in the country and since then, it became very clear that there was a niche for establishing the hotel centered on the customer needs.
Our estimation is that being the industry leader not only in Marina bay Sands in the making, our proven proficiency in fast food and drinks is ahead of most of our competitors. The restaurant’s long term strategy is to expand its operations from Singapore to other parts of Asia and to entire continent. We will be among the few hotels in Singapore listed at the stock market.
To provide high quality client-centric restaurant services to our esteemed customers by understanding their needs with deep partnership.
Be a leading and profitable restaurant in Asia through utilization and adoption of restaurant services.
Japanese Fine Dining will serve individual customers, businesses and organizations in the urban as well as rural areas which have a high usage restaurant services but lead in the diffusion and adoption strategies of restaurant services locally and in the overseas markets.
Industry: Tourism, retail individuals, professionals, families, corporate
Size: 100 + customers per day
Location: Metropolitan Urban Areas, Sub-Urban areas
Spending Level: $100 for individuals & to $5000 for corporate
Primary customer Contact: Director Sales.
Research Analysis of Hotel Market in Singapore
The growth of hotel industry in Singapore has improved over the last eight years. Restaurants are the leading sector, which is also experiencing the same remarkable growth in the rest of the country.
The country however needs a major reorientation of the entire public service, through business process re-engineering and e-governance; reducing the cost of doing business and privatization of state enterprises. Focusing on the current trends in the hotel industry in Singapore, Japanese Fine Dining has foreseen some areas which have very high potential growth in the next three years.
Research shows that there are three restaurants within a block of 3 radius of Japanese Fine Dining but none of them offers the same dining experience as our restaurant. One of the restaurants is a fast food, hamburger based establishments that cater mainly to youths and lower paid retail and service workers (Alonzo, 2007). The other is a Chinese restaurant which the management is aware that it is not a major competitor. Studies of the competitors show that none of them present substantial competition because of their different concepts and menu offerings.
Our future success will depend in part upon the restaurants ability to enhance its existing services and to develop, introduce and sell services that meet the changing customer requirements. The process of developing, introducing and selling the services we offers is extremely complex and is expecting to be increasingly more complex as well as expensive, in the future as new technologies are invented by our competitors (Alonzo, 2007).
Japanese Fine Dining will initially have three types of customers: This according to Alonzo (2007) will include people going to events at the Marina Bay sands. The market share will also comprise of professionals, administrative and retail employees from the nearby businesses. It will also include vacationers, shoppers and tourists. This thus presents a major market share for the restaurant. Another major consideration is that the restaurant will accommodate conventions and concerts and therefore it will generate a steady, year round stream of potential customers. The management also predicts that the employees of nearby businesses will tend to walk to the restaurant, while shoppers will drive in from suburban communities and park in our lot or the nearby garages (Alonzo, 2007).
Percentage of Potential customers
Vacationers + tourists
Professionals + retail employees
Japanese Fine Dining will be positioned in a trendy place to have dinner on your way to or from an event within the town. One of major strengths of its location is that it is a place where one can bring his or her business and social friends for an exceptionally good lunch or a steak dinner and good drinks at attractive prices and a place where families will feel comfortable with their children (Alonzo, 2007).
The Winning Strategy
The winning strategy will be that Friday to Sunday the restaurant will feature soft, electronic background music that will be appealing to customers who want to dine in a relaxing atmosphere, as well as to tourists and sports fans that will appreciate sand beach games (Alonzo, 2007). The management will then play jazz pianist from Monday to Thursday at 6PM to 12PM. We also make arrangements with taxicab companies, tour group leaders and other agencies to help make recommendations for tourists.
Alonzo (2007) established that it is important to offer support to a few highly visible charitable organizations and community causes hence partners of the business will be active members of the chamber of commerce
Japanese Fine Dining products will feature a menu of a variety of steaks, beef ribs, beef kabobs, chicken and fish for dinner as well as a luncheon menu consisting of soups, sandwiches, gourmet burgers, salad plates and appetizers. This is as per the recommendations by (Alonzo, 2007) which mean that no other restaurant in the nearby area offers a similar menu in an entertaining atmosphere.
Pricing strategy is that Japanese Fine Dining prices will be competitive with comparable restaurants. The dining hall will operate with food cost percentage of 25 percent and its lounge will operate with a bar cost percentage of 18 percent. With this pricing strategy the restaurant will give a perception of higher value than what its competitors offer through its food and drink presentation methods, pleasing service and closeness to popular attractions (Alonzo, 2007).
Henkel & Brown (2006) say that promotion can make or break a business. This means that it is not enough to have a quality product. Japanese Fine Dining will promote its products and services through the use of coupons, yellow page ads and special offers. In addition Henkel & Brown (2006) says that scratch and sniff coupons will be wonderful and effective ways of promoting the restaurant.
The Location of the Restaurant
The restaurant will be located at Marina bay sands which is an area that has been revitalized by the development of the town. Alonzo (2007) says that it is of great important to position the restaurant in a strategic place in order to attract more people. In this context Japanese Fine Dining will be housed on the street level of a renovated office building with access from the street and from the lobby.
The advantage of this location is that the management will agree on a favorable seven year lease with an option to renew it. Occupancy will be $30 per square foot a price which is favorably better compared to its location. Due to the growing population in Marina Bay Sands, it is projected that the restaurant will attract about 8 percent of fewer than 25 or over segment and that local customers will patronize 2.8 times a month on average. The strategic location of the restaurant ensures that several million people will see the restaurant annually (Alonzo, 2007).
Due to the location of Marina Bay Sands the restaurant will have access to supplies from the nearby towns. This is because of the good road network which makes secure and fast supplies of all products used in the restaurant.
Access to the Japanese Fine Dining is available by car, taxicab and bus and by walking from nearby hotels. Alonzo (2007) says that while establishing restaurants it jis important to consider parking space. As a result Japanese Fine Dining will have 40 parking spaces reserved for its clientele in the building parking facility.