Ноsрitаlity business рlаn
Executive Summary
This hospitality business plan is for the proposed Gouger Chinese dessert shop to be located in Chinatown on Gouger Street, Adelaide city in South Australia.
The Business
Gouger Chinese dessert shop is a newly envisioned Oriental-style restaurant that will offer a variety of Chinese desserts (sweet food and dishes served with tea, with meals or after meals. Gouger Chinese dessert shop will be among the few restaurants in this region to embrace the new tantalizing concept of a desert-only restaurant. This would be a fun idea especially for adult clients who would get a chance to fulfill their childhood fantasy of skipping real meals by having straight dessert. The desert shop would also be a welcome addition to typical restaurants who often grapple with tight seating schedules and make customers to rush from appetizers to settling bill. The restaurant will offer a variety of desert-tasting menus that would come with food, wines and teas. The desserts will be prepared using a variety of ingredients characteristic of East Asian cuisines. These would include such ingredients as whole or powdered glutinous rice, agar, and sweet bean pastes. The culinary masterpieces would also be prepared before the customer’s eyes.
Gouger Chinese dessert shop will be located on Gouger Street in Adelaide city, Chinatown in South Australia. Gouger Street is strategically located in close proximity to the Aldelaide Central Markets and is reputed for its high-end international restaurants, dessert shops and cafes. The cuisines range from Chinese, Thai, Vietnamese, Malaysian, Italian, Argentian, to French. This location will be great for the new Gouger Chinese dessert shop considering that it is always a hive of activity having distinct Asian flavor. The location of the new dessert shop is also precise because of the guaranteed ample supplies of ingredients, fresh fruits and vegetables from the nearby Aldelaide Central Markets. The menu shall include such desserts as steamed egg custard, almond jelly with Mandarin oranges, sugared tomatoes, Chinese mung bean dessert, Chinese steamed apple pears, banana spring rolls, kluay buad chee (bananas in coconut milk), creamy lychee jelly, and creamy green tea jelly. The shop shall incorporate the best in Chinese Australian fare.
Gouger Chinese dessert shop envisions creating a new niche in the Australian restaurant industry and increase sales in excess of $150,000 over three years. Significant increases in sales are expected to begin in the second year, approximately 50%. Through much focus on product and service quality, Gouger Chinese dessert shop would strive to establish itself as the destination of choice in terms of desserts in Chinatown Aldelaide, and maintain a gross margin of 80 percent by Year 3. More competitive advantage will be sought through catered and take out deserts.
Vision Statement
The vision statement of Gouger Chinese dessert shop would be “bringing back the traditional Chinese flare in dinning.” This is inspired by the urge to blend traditional and modern Chinese cuisine in these parts of the world. This is especially relevant considering the strong cultural and economic ties that exist between China and Australia. This would not be your typical Chinese dessert shop that is easily comparable to other dessert shops in Chinatown. Instead, Gouger Chinese dessert shop would be a grand and very exquisite dessert shop that would offer unparalled dining experience to natives and East Asian tourists of this part of the world. The restaurant intends to generate sufficient profit so as earn return on investment and further invest in continued growth and development of quality products and service. This business shall nurture a friendly, safe, and clean work environment, with much respect for diversity, creativity, professionalism and openness to criticism and new ideas.
Mission Statement
The mission statement of Gouger Chinese dessert shop would be “Adding true deliciousness to the eating experience”. The shop’s priority would be to provide the freshest dessert and best service so as to ensure highest customer satisfaction, a commitment that is line with the shop’s mission statement. In the same breadth, Gouger Chinese dessert shop would seek to be a convenient and dining dessert shop of choice for a multitude of people to have high-quality Chinese desserts in a atmosphere that s highly comfortable. The main target audience for Gouger Chinese dessert shop would therefore be people seeking a fun oriental gourmet experience.
Objectives
1. To be the most creative dessert shop in Chinatown Aldelaide – this will be achieved by having different unique and creative pastry chefs to make each dessert bar have its own character. There will be strong emphasis on quality, freshness and customer value.
2. Creating an unforgettable dining experience for customers – our desserts shall be prepared before the very eyes of the customer, with topmost attention being accorded to ingredients and presentation that will exhibit great chef expertise.
3. Holding true to our vision of blending traditional and modern Chinese cuisine so as to gain competitive advantage in Chinatown Adelaide by Year 3.
Industry Analysis
Australia has a thriving economy in addition to cultural diversity. The country has also high per capita income, relatively open trade, and English as the official language. Australia has always been a wonderful and solid market for the food service and retail food industry. There are varied cuisines styles in Australia ranging from English, Aboriginal, Chinese, Italian, French, Vietnamese, Indian, American, etc., offered by many restaurants and fast food eateries. The dessert-only restaurant business is fast picking up in Australia. There are a number of traditional restaurants in the Adelaide’s Chinatown that deal in Chinese cuisine including desserts, but only a handful have ventured specifically into the dessert-only segment. There is a growing market segment for desserts in the region consisting of natives and tourists. The business climate is also condusive because of the strong support of the Australian government through friendly taxation programmes and encouragement of people to become more spenders than savers. It is thus evident that the starting of the new business comes at an appropriate time. Providing high quality desserts and accompanying service would significantly help in building brand reputation for the new Gouger Chinese dessert shop.
The Market
While the dessert-only restaurant concept is fairly new in the Adelaide’s Ch
a. Market Description
The proposed Gouger Chinese dessert shop would mainly focus on the local markets around Adelaide’s Chinatown. Particular focus shall be on restaurant and ice-cream shop consumers. Chinatown in Adelaide promises to be a wonderful climate for the new dessert shop considering the rapidly growing number of household that are spending their money dining out.
b. Customer segments
There are four main customer segments that the new Gouger Chinese dessert shop would target: Gourmet pursuits, Revelers, Exotic consumers, and Families. These represent groups of dinners that share almost similar behavior patterns and reasons for eating at Gouger Chinese dessert shop.
Exotic Consumers are composed of mainly originally East Asian dinners who long to catch a dessert with the Chinese flare just like back at their home country. This category may also include Australian natives and others who are adventurous with their food, trying food from other parts of the world.
Revelers represent a group of dinners who are looking for an excellent place to celebrate their special occasions over sumptuous desserts. Such special occasions could include the Lunar New Year’s, birthdays, anniversaries, graduations, Valentine’s Day etc. Gouger Chinese dessert shop would be the place of choice because of its second to none menu and festive atmosphere.
Gourmet pursuits refer to a segment of customers who have discriminating or refined taste for food who are out for dessert prepared by particularly high caliber chefs. Gouger Chinese dessert shop would seek to be a destination point for gourmet tourists – adventuresome dinners seeking fine dessert experience. This category of consumers is on the rise in Australia especially in Chinatown.
Families represent all members of family who dine out. Gouger Chinese dessert shop would be an excellent gathering place most welcoming to families as well as precisely comfortable for the young and adults.
Table 1 represents the anticipated growth in all the four customer segments over three years:
Table: Potential customer growth
Customer segments Growth Year 1 Year 2 Year 3
Exotic customers 10% 5,000 5,500 6,655
Revelers 15% 5,000 5,750 7,605
Gourmet pursuits 15% 5,000 5,750 7,605
Families 15% 5,000 6,050 6,655
Total 12.59% 20,000 22,500 25,326
Target Market Segmentation
Gouger Chinese dessert shop would specifically target segments of customers with love for sumptuous desserts along with desire for comfort and relaxation. The restaurant would be the right pastime joint for the busy and successful looking to treat themselves to a top notch dessert dining experience and relaxation. The restaurant would create a name for itself as a fast, fun yet quality dessert joint in the acclaimed Chinese-cuisine area of Adelaide Chinatown.
c. Competitors
Although Gouger Chinese dessert shop would be seeking to create a new niche in the Australian food service industry, it would share similarities with current and new desert-only restaurants in Adelaide Chinatown. There are five categories of competitors in the market:
i) Restaurants – Gouger Chinese dessert shop shall face competition from several restaurants in the area that principally offer desert.
ii) Ice Cream shops
iii) Donut and Coffee Shops – these offer coffee and pastries for dine-in and carry-out consumption.
iv) Supermarkets – there are plenty supermarkets in Adelaide’s Chinatown area that have in-store bakeries and frozen specialty desserts that would pose significant competition for Gouger Chinese dessert shop.
v) Bakeries – these are a number of free-standing conventional bakeries in the region.
The competition and buying patterns would be based on the fact that dessert as a product that only accompanies a special meal and does not need to be any better than a frozen cake. Gouger Chinese dessert shop would make it appealing for everyone to experience the expert preparation of the gourmet dessert.
The price factor may become prominent when competition with Ice Cream and Coffee Shops. However, there are grounds to believe that consumers are very conscious of better quality products and services. It is our strong belief that many consumers will not mind spending slightly higher for an exceptional dessert offered in an overly warm and friendly environment.
The comfort factor will also be major in dealing with completion. Gouger Chinese dessert shop’s menu will appropriately respond to this by reflecting “comfort food” desserts and not intimidating desserts. We will make sure to always offer highest quality products, combing the traditional and modern, and presenting our deserts in the most appealing manner to the consumer.
The main competition will come from the following established restaurants: Ding Hao Restaurant, Star house Chinese Restaurant, Bliss organic Café, BBQ City Restaurant, Dessert Story, Ying Chow Chinese Restaurant, Café Kowloon, and Wah Hing Restaurant, East Taste Café. The site map below shows the proposed location of our new dessert shop and the existing competitors.
Figure 1: Site map for dessert restaurants on Gouger Street, Chinatown Adelaide
d. SWOT Analysis
Strengths
The greatest advantage of the proposed Chinese dessert shop would be its particular focus on desserts only as opposed to striving to venture into the most established product lines in food sector. Focusing on a single primary product that has not yet proliferated in the market provides the new dessert shop with a golden opportunity for success.
Another strength is that Gouger Chinese dessert shop would provide unmatched quality both in product and service because of the highly skilled staff as well as our specialization in offering desserts.
Weaknesses
Gouger Chinese dessert shop as a startup business faces the weakness of lacking brand recognition, thus it may take quite some time before competitors’ customers begin to appreciate our offering and make a switch.
The dessert shop may also be disadvantaged by its limited range of product offering i.e. Chinese desserts only. The targeted market is thus narrow, especially because the uptake of the product relies mainly on customers with oriental taste.
Opportunities
Gouger Chinese dessert shop has the opportunity to create a niche in the new idea of desserts-only restaurant considering the small number of players currently in the market
There also exists a chance for making good fortunes especially from Year 2 as the number of consumers embracing the dessert dining increases steadily.
Gouger Chinese dessert shop could also liaison with established traditional restaurants to recommended and refer their main meal customers to our shop for a perfect finishing up of the dining experience.
Threats
The major threat for the proposed Gouger Chinese dessert shop is strong competition from large traditional restaurants offering Chinese desserts along with other meals.
e. Marketing Strategies
Gouger Chinese dessert shop would undertake formal consumer education followed by word-of-mouth. The restaurant shall be positioned as a superior pastry shop offering unique dining experience of oriental gourmet. Communication to the customers will be done through fliers, radio, TV and print advertisement as well as special holiday promotions.
The dessert shop shall also build on location as a marketing and promotion aspect. The location of the business shall be in a high-traffic area with large Chinese population – Adelaide’s Chinatown along Gouger Street. The local authority offers a variety of incentives to food businesses operating there. The area is also well supplied with hotels that offer accommodation to international and local tourists.
Gouger Chinese dessert shop will target progressive, well-educated, affluent consumers willing to try new products and experiences. Strong appeal will also be made to dinners dissatisfied with the current limited selection as well as lack of personal service characteristic with many store bakeries, ice cream shops, neighborhood cafes and area restaurants.
Sales Strategy
1. The dessert shop will strive to sell the product as well as the organization, with the ultimate goal being to make Gouger Chinese dessert shop synonymous with great dessert quality and an excellent gathering place for different kinds of consumers.
2. The dessert shop shall also present an intriguing show of the dessert preparation process as well as sell its top notch service team who are highly skilled and friendly. Customers will always feel welcome and at home at Gouger Chinese dessert shop.
The Organization
a. Legal and Organizational Structure
Gouger Chinese dessert shop will be a sole proprietorship business registered under the Ministry of Trade. The manager shall have the final decision on the day to day running of the restaurant. The business shall enlist several suppliers for fresh ingredients and food supplements required for preparation of the desserts. The kitchen department shall be headed by the chief chef while the service department shall be under a manager.
b. HRM and Key Personnel
In the first and half year, Gouger Chinese dessert shop will be slow in hiring personnel, but remain loyal to those hired. All the employees will be hired on part-time basis considering that the bulk of the work will be undertaken by the chef-proprietor. The chef and proprietor would initially act as the sole dessert shop chef, in addition to serving as the store manager and instructor. With the growth of the restaurant over time, new employees will be hired, then trained and supervised by their resident colleagues who would have assumed leadership position. There will be appropriate reward to the effort of the employees contributing to the success of our dessert shop.
c. Key Suppliers
