Lafayette presentation
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The document presents a business proposal for a new upscale restaurant called The Lafayette Restaurant. It outlines goals of presenting a successful business case, identifying assumptions for setting prices, and creating a realistic budget. It proposes focusing on premium dinners and details assumptions for order mix, costs, pricing, and provides a pro forma budget. Recommendations include reviewing performance against the six-month plan and analyzing demand, staff utilization, and pricing segments. The ultimate goal is business success through distinguished service, climate, satisfaction, and experience.
Lafayette presentation
- 1. THE LAFAYETTE RESTAURANT BUSINESS PROPOSAL FOR THE INVESTOR Tomasz Kacprzak Marcin Kkol Krzysztof Kolczyk
- 2. OUR GOALS To present a business case for a successful restaurant To identify assumptions relevant for setting up prices To set up proper pricing of the dinner menu To make a realistic budget The ultimate goal is to achieve SUCCESS
- 3. THE LAFAYETTE RESTAURANT Lunches served due Demanding quality to business needs and Saying no to compromise market expectations Not willing to experiment Not rushed FOCUS ON TARGET DINNERS PREMIUM RESTAURANT Strong and consistent marketing strategy is required
- 4. ASSUMPTIONS ORDER MIX Table 1. Order mix, Appetizers % of people take Appetizer, Soup, Entrees, and Desert Demand - lower on Monday and Tuesday and higher in the weekend Order mix - differential price, compromise effect, sophisticated servings Signaling - happy Sunday promotion
- 5. ASSUMPTIONS ORDER MIX Table 2. Order Mix
- 6. ASSUMPTIONS COST & PRICING Table 3. Cost & Pricing Direct costs are food cost and cost of cooks Scallops and Duckling are the specialty and that is reflected in pricing Cost line food waste added (10% of food costs) Gross contribution estimated to be 70% Pricing in principle is based on cost plus margin - common for premium type restaurants No direct competitor in the area
- 7. SIPOC SUPPLIER INPUT PROCESS OUTPUT CUSTOMER PM Hardware Requirements Common Lab Lab Access Established Anytime Anywhere Network Create Remote Sites Software Engineering Design Operational Product Setup Instructor Configuration Group Common Lab Ready for VLT Regional Course/Lab Test Process and Tech Dev Development Remotely Tools Aligned LMS Available Instructors PM Oversee and Working Courseware Train Developers Instructors Participants Update LMS
- 8. ASSUMPTIONS COST ALLOCATION Chef and Costs are assigned and based on revenue Apprentice Chefs Costs are split 50/50 between lunch and Souse Chefs dinner (based on responsibility) All other costs and other monthly All other costs expenses are assigned by revenue Is the most accurate key for cost allocation Revenue driver based on activity based costing at this stage of business startup The allocation key will be rewiewed and Going forward allocations will be adjusted, e.g. based on timesheets of employees
- 9. RESULTS PROFORMA BUDGET Table 4. Proforma Budget
- 10. RECOMMENDATIONS Review performance vs. six-months plan Analyze demand in the order mix Analyze staff and food utilization Check if pricing segments need to be verified; our pricing is primarily based on cost base, therefore we will need to review if changes are needed based on customer demand verification: Utilize and develop the existing touchpoints, including nearby luxury shops, golf course, and polo stadium
- 11. OUR PROMISE SERVICE CLIMATE that everybody Distinguished finds special & sophisticated SATISFACTION EXPERIENCE for the most you cant have demanding someplace customers else
- 12. OUR PROMISE SPECIAL LIVING, SPECIAL VISIT
Editor's Notes
- Who are we? Who is responsible for what? Where were we successful?
- We incorporate the difference in price range, which is obvious for the customers and they can clearly see the difference compromise effectWe incorporate price thresholds (upper 59.99, lower 29.99, differential 20 vs. 30 vs. 40 vs. 50) % of people take Appetizer, Soup, Entrees, and DesertDemand - lower on Monday and Tuesday (10% of mid-week) and higher in the weekend (Friday and Saturday - 10% higher)Order mix - differential price, compromise effect, sophisticated servings Signaling - there is a happy Sunday promotion. Due to lower demand (60 dinners versus 100 average) prices on Sunday are 10% lower (Table X)
- Two reasons for those assumptions:Some food will inevitably be lostSome dishes are prepared in more then 1 portion per preparation, for example 10 portions of Artichoke Hearts are prepared at once and it could be the case that demand for it in particular day is lower. If possible, this will be stored and used next day.The sophisticated servings have significantly higher gross contribution - there is a little influence of cost on the ultimate price for these servingsThere is a limited number of servings considered to be unique and sophisticated, thus of a very high price.No direct competitor in the area - another argument for cost based pricing
- Time is split into lunches and dinners, assuming dinners are 4 times more time consuming than lunchesStandard working time is 40 hrs per weekExpected overtime is approximately 1 hr a day per employee. This is based on the standard working time, however the research shows that in the US the working week is 46 hrs thus our staff working time is consitent with the standard
- Dividing servings:For the first two, due to high demand, their prices will be increasedFor the third group, the price will be loweredFor the fourth group, the servings will be replaced by other