S
T R A T E G I C
B
U S I N E S S
P
L A N
Table of Contents
Executive Summary
2
Vision and Mission Statements
4
Management Team
6
Product Review
7
Target Market
9
Competitive Review
10
Industry Research
11
Goals and Objectives
13
SWOT Analysis
14
SWOT Matrix
16
Product Positioning Map
17
Marketing Mix Strategies
18
Location Analysis
20
Financial Statement
22
1
Executive Summary
The Company
Art a la Mode Café will be a vanguardist establishment focused on bringing
together the simple pleasures of art and gastronomy, enlightening the minds,
the souls, and the taste buds of our customers. The main purpose of this Café is
to create a unique experience merging our love for art and tasty cuisine,
working as canvas to display the work of local and international artists. A cozy and appetizing atmosphere that offers a succulent menu will go together with the art scene.
Products and Services
Art a la Mode Café will be a specialty restaurant offering simple
contemporary cuisine, a full liquor bar, and a gourmet coffee bar. The Café will
consist of two floors and an outside patio, its sleek design and architecture will
resemble the looks of a contemporary art gallery. The restaurant will feature art displays that will change every week. Especial events with particular themes
and topics will also take place at Art a la Mode Café. Since art and cuisine go hand-to-hand in this business there will be also an Art Menu.
Target Market
Art a la Mode Cafe will be located at the Hollywood Beach Historic District,
targeting audiences that whish to experience a different culinary approach
surrounded by interesting art displays, as well as local and international artists
that want exposure for their work. The target’s demographics mainly include
customers 18 years old and older, with an average income that have achieved some level of higher education, and that reside in the South Florida area.
The Competition
Even though Art a la Mode Café will be located in an area of great restaurant
development and competition, the majority of businesses focus on different kinds of ethnic cuisines. Consequently, none of these businesses present a direct
threat, since being a specialty restaurant that will provide food and entertainment will gives us the opportunity to stand up among the others.
2
Marketing and Sales Strategy
Art a la Mode Cafe strategies will focus on offering its customers and
employees a rewarding experience. As a new business, promotion plays a crucial role in our success and development. Different advertising strategies will
be use to generate the highest level of exposure, also promotional strategies
such as discount cards, Art a la Mode memberships, special daily features such as live music, poetry, kids activities, etc.
Operations
Art a la Mode Café will operate in a two-story structure. The first floor, will serve
as the main sitting area while the upper floor will be focused on the art exhibits.
There is also an outside patio that will serve as sitting and smoking area. The Café
will open from Monday to Fridays from 11 a.m. to 11 p.m. offering lunch and dinner, and Sunday from 10 a.m. to 10 p.m. offering brunch, lunch, and dinner.
Management
Graphic designers Marines and Luis Espinoza, who will be performing the roles
of General Manager and Art Department Coordinator respectively, own Art a
la Mode Cafe. This business will have a genuine approach to art and culture in
its different forms of expression. Culinary Manager, Chef Maria Galvez
graduated from Le Cordon Bleu Academy with an outstanding performance. Art a la Mode Café will have an exceptional team whose members have years
of experience in the field.
Development
Art a la Mode Café’s goal is to transcend in the South Florida scene, and to
create a strong and loyal clientele trough the establishment of a membership
club, the development Art a la Mode merchandise, and probably in the future expand the business to other areas of the state.
Financials
The financial strategy of Art a la Mode Cafe is to reinvest in the development
of our business. The estimated revenue projection for the first year of operation
is a little over $500,000. This amount should increase progressively throughout the years in business.
Funds Sought and Uses
The funds obtained during the first year of business will be used for expansion
activities, hiring new staff, and increasing marketing activities. Long-term plans
include on-line distribution of our merchandise and the opening of a new location in West Palm Beach by Winter 2010
3
Vision & Mission
Vision Statement The vision of Art a la Mode Café is to transcend in the South Florida scene as
a vanguardist business that is focused on bringing together art and gastronomy, enlightening the minds, the souls, and the taste buds of our customers.
Mission Statement • Customers: Art a la Mode Café is designed by art lovers and for art lovers. • Products or Services: Our mission is to create a unique experience for our customers, merging our love for art and tasty cuisine. Art a la Mode Café serves as a canvas to display the artwork of local and international artists. At the same
time, it offers a cozy and appetizing atmosphere with a succulent menu designed to please the most exigent palates.
• Market: Located in the heart of the ever growing and multifaceted Hollywood
Beach, Art a la Mode Café stands as an exiting specialty restaurant.
• Self-Concept: The specialty restaurant concept benefits our business since it
provides a narrow focus for our market segment. The fact that Art a la Mode
Café’s concept is well defined and easy to relate to gives us an advantage in the industry, allowing our business to stand up among the others. Moreover, the
fact that we are a hybrid between an art gallery and a restaurant makes our company even more appealing to the market.
• Technology: The establishment counts with state-of-the-art technology that
allows our staff to perform efficiently and provide a better experience for our
customers. We also take into consideration the ecological impact of our business
activities; therefore, we go one step further in our effort to use recycled goods and use organic produce and products in the preparation of our food.
4
• Concern for survival, growth, and profitability: Our commitment to success is
the driving force of this business. The entire Art a la Mode Café staff and managerial team is focused in achieving personal and financial growth.
• Philosophy: As members of the art community, we believe that entertainment
and culture go hand to hand. It’ is very important for our company to provide exposure and promote the local and international talent. However, we carefully
select the artwork that will be displayed, in order to maintain our standards and
ensure that the material is appropriate for our audience. It is also a priority to
offer top quality cuisine, using only the freshest, and most healthy ingredients to prepare the items in our menu.
• Concern for the Public Image: Our mission is to offer the community a way of
expression and to help the youth to develop an artistic culture. Art a la Mode
Café, as part of the South Florida community is concerned for the well being of our people and our business operations will always have our community as a priority.
• Concern for employees: Is essential for our company to guarantee that both
employees and customers find themselves in a comfortable environment were is pleasant to work as well as to have a good time. Inside our company, it is a
priority to provide an ethical and professional workplace for all the employees.
5
Management Team
Marines Espinoza
General Manager
Marketing & Sales Department
Chef Maria Galvez
Luis Espinoza
Art Department Manager
Art Department Manager
Event Coordinator
Event Coordinator
Mark Johnson
Assistant Manager
Julia Smith
Service Supervisor
Owned by graphic designers Luis and Marines Espinoza, this business will have
a genuine approach to art and culture in its different forms of expression. Art a la Mode Café will have an exceptional team whose members have years of
experience in the field. Both owners have worked in the restaurant business for
more than 5 years, acquiring all the knowledge needed to manage a successful
restaurant.
General Manager Marines Espinoza, graduated with a Bachelor’s Degree in
Advertising and Graphic Design from the Art Institute of Fort Lauderdale, she will be also in charge of the Marketing and Sales Department.
Since art will play such a vital roll in the development and success of this business,
Graphic Designer Luis Espinoza, who is also a graduate from the Art Institute of
Fort Lauderdale, will be the Art Department and Event Coordinator Manager.
Culinary Manager, Chef Maria Galvez graduated from Le Cordon Bleu
Academy with an outstanding performance. She has worked for many hotels in
South Florida, including The Westin Diplomat and The St. Regis Fort Lauderdale.
Five years ago, she opened her own catering business and now she will be heading the culinary department at Art a la Mode Café.
There will also be an Assistant Manager and a Service Supervisor; Mark
Johnson and Julia Smith will perform these positions.
6
Product Review
Art a la Mode CafĂŠ will be a specialty restaurant that will offer simple
contemporary cuisine, a full liquor bar, and a gourmet coffee bar. The menu
was designed taking into consideration the new culinary trends and the
preferences of our target audience. The prices will be very competitive, the
menu items range from $5.99 to $18.
The food menu includes items such as: o o
o
Appetizer: Baked Brie and Fruit, Coconut Shrimps, Antipasto, Spring
Rolls, Tuna Carpaccio, etc.
Entrees: Miso Salmon, Churrasco Steak, Chicken Cacciatore,
Lasagna, etc. There are also some vegetarian options such as Portobello Mushroom Quesadillas.
Desserts: Chocolate Fondue (with fruits, marshmallows or pastry),
Crème Brule, Fresh Berries and Cream, Tiramisu, Home-made Ice creams and sorbets, etc.
The drink menu offers items such as: o
Spirits: a full bar stocked with the finest spirits in the market, from
o
Wine List: a wide selection of the best wines from Italy, Spain,
o
the Bacardi products to the exclusive Remy Martin Cognacs. Also
national and imported beers.
California, and Argentina. The wine list ranges from Chardonnay to
Sauvignon Blanc, from Malbec to the finest Italian Chianti.
Specialty and Gourmet Coffee Drinks: featuring the finest Italian coffee beans, blended into delightful drinks with Frangelico,
Amaretto, Bailey's, Kahlua and more. Or simply enjoy espresso drinks like cappuccino, macchiatos, or a tasty American coffee.
7
Art a la Mode Café has a sleek design and its architecture resembles the looks
of a contemporary art gallery. The restaurant has a main dining room in the first
floor and a second floor that is a specially designed area for the art exhibits, also
an outdoor patio that offers additional seating and a smoking area.
The restaurant features art displays that change every week. Special events
with particular themes and topics also take place at Art a la Mode Café. Since
art and cuisine go hand-to-hand in this business there will be also an Art Menu. Such menu will feature the restaurant’s “weekly art specials” which will provide
extended information about the artwork that is being displayed through out the place. This menu is also an attractive way to promote the artists and even sell the pieces that are in display.
8
Target Market
Since Art a la Mode CafĂŠ is considered a specialty restaurant, its target
market is easy to identify and could be described as follows:
Demographics: o o o o o o
Age: 18 years old and older. Gender: Both sexes.
Income: Average [$20k - $100k]
Education: Some level of higher education [High School graduates, college students, professionals]
Geographic Location: The South Florida Area. [Miami Dade and
Broward counties]
Marital Status: Any status.
Psychographics: o o o o
Families, friends, and couples that which to experience a different
culinary approach surrounded by interesting art displays.
Audiences in need of a place for unwinding and relaxing in an artsy atmosphere.
General audience with interest in learning about art and culture. Local and International artists that want exposure for their work
9
Competitive Review
After researching the area, the only business that presents some of the same
features is Art Now Cafe. This restaurant is located in the Hollywood Young Circle,
and it has been open for about five years. However, after reading some of the online reviews it is obvious that the business has deviated from its original
concept. The comments were not very positive because the place lost its quality
and the atmosphere doesn’t represent the art scene.
Many other restaurants are located around the Hollywood Beach Area some
of these are also specialty restaurants that focus on different kinds of ethnic cuisines. However, none of them presents a direct threat to our business.
10
Industry Research
o
o
Current market research already indicates that the restaurant industry is the nation’s largest employer outside of government agencies,
employing and estimated 12.8 million people.
Every one million dollars spent in restaurants generates 37 new jobs for the nation’s economy, meaning that the estimated five percent sales
increases for 2007 over the current $539.9 billion dollars will create nearly
o o
10,000 new jobs in the restaurant industry this year.
More than seventy percent of all restaurants are independently owned,
single-unit operations.
Regardless of other areas of economic slowing, people have shown a
tendency to always want to get out for dining and entertainment. In
fact, during times of economic depression, food establishment were
one of the few industries that were able to hold onto their assets and
o
sustain themselves through the hardship.
According to the National Restaurant Association’s 2007 Restaurant
Industry Forecast, the industry will enter its 16th consecutive year of real
growth. Florida’s sales are expected to increase 7.1 percent with a profit
o
of $25.7 billion.
For the past 50 years, the restaurant industry has been made up to three distinct segments - fast food, casual dining, and fine dining. In recent
years, the industry has started to break into more categories, including quick casual and home-meal replacement, which are two of the
o
fastest-growing segments within the food service industry.
Although the quick-casual restaurant sector is still in its infancy, this
segment will continue to dominate industry growth in 2007 by dividing
into smaller and more specialized categories. More specialty restaurant concepts are on the horizon for 2007 and those planning to launch a
new restaurant in 2997 should concentrate on delivering a specialized product.
11
o
Dietary issues are a concern for every consumer, and restaurants will satisfy consumers’ appetites for healthier menu options in 2007 by
offering wraps, chicken dishes and energy drinks. Restaurants are also
incorporation more locally grown and organic ingredients into menu items in the wake of E. coli and salmonella scares. Consumers will
continue to embrace the menu flexibility that tapas-style eateries offer,
such as creatively composed Appetizer, small plates, snacks, and
o
sandwiches.
Restaurants are increasing their environmental effort. More than three out of four restaurants purchase products made from recycled
materials. In addition, restaurants recycle fats/oil/grease [FOG], paper,
o
aluminum/metal cans, glass, plastic, and food waste.
Restaurant concepts will have smaller and smaller footprints as industry players compress sales to square-foot rations, and marketing budgets
will shift from mass media practices to non-traditional approaches including local stores marketing, for-walls marketing, and public relations.
12
Goals & Objectives
G1: To increase customer awareness. o.a: Generate intensive business exposure through advertising to increase the percentage of customer awareness in our area in the first
3 months after opening. The advertising strategies will include: radio, magazine, and newspaper ads, banners around the area, on-line advertising, and direct mail among others.
G2: To achieve a high level of customer satisfaction. o.a: Provide training for the service staff every three months to educate them about prompt and efficient service.
o.b: Closely monitor the customers’ opinions about service, food quality, art exhibits, and overall experience through the application of
surveys along with every check. Study general results month by month.
G3: Build a frequent and loyal clientele. o.a: To increase sales by 10% in the first year of business. o.b: Create an Art a la Mode Café membership club, and recruit at least 50 members in 6 months.
o.c: Develop Art a la Mode merchandise, such as tote bags, paint
brushes, sketching pads, t-shirts, etc, within the first year of business.
G4: Open a new location in West Palm Beach by Winter 2010 o.a: Calculate start-up capital based upon the profitability of the current Art a la Mode Café by the second quarter of 2009
o.b: Research for a new location by the third quarter of 2009 o.c: Conduct a market and location analysis by the first quarter 2010
13
SWOT Analysis
Strengths o o o o o o
We can provide a unique service experience in the area, providing the perfect combination of entertainment.
We can have a strong cultural presence in the community.
We can be a major point of convergence for artists and art lovers. Our art displays won’t be limited to paintings; it will also include
sculptures, music, poetry, graphic design, etc.
Being a specialty business gives us the opportunity to stand up among the other restaurants in the area.
Residential buildings and houses surround Art a la Mode Cafe. This
fact could allow the development of frequent customers from the area.
o
Our menu prices are affordable and the items are appealing to a
o
Being located in the new redeveloped Hollywood Beach tourist
wide audience.
area gives our business a high pedestrian traffic.
Weaknesses o
o
o o o
We need to avoid the misperception of our business concept. The
idea of a restaurant/art gallery may be confusing for the general public.
Being a new business will present a risk for the success of the
company since it will take some time for the public to be aware of Art a la Mode CafĂŠ and the services we offer.
Our business concept might be too niche for the area.
We might deal with some staffing issues, such as service staff training and art gallery assistants.
The customer affluence might be influenced by the different kinds of art displays, creating irregularities in the business activities.
14
Opportunities o o
o
o
With time our business could expand, and open new restaurants
with the same concept in nearby cities.
If the business succeeds, our business could be attractive to famous local and international artists. This could generate cross promotion
between the artists and our establishment.
South Florida is a very culturally diverse state, so this creates
opportunities for our business to raise and be appealing to the different communities.
Florida is a major tourist destination, and with the right advertising Art a la Mode CafĂŠ could become a landmark for the city of
Hollywood Beach.
Threats o
o o
Since our business is located in the Hollywood Beach hurricane evacuation area, weather issues may represent financial and structural threats for our business.
The opening of future business that may have a similar concept and
become strong competitors.
Non-acceptance by the art community
15
SWOT Matrix Strengths:
Weaknesses:
- Major meeting point for
business concept
- Unique service experience artists and art lovers - Specialty business
- Development of frequent customers
- Affordable prices &
appealing menu items - Tourist area [high pedestrian traffic]
Opportunities:
- Business expansion - Cross promotions
between artists and
S|O Strategies:
- Special features such as
poetry Mondays, live music
staff training and art gallery assistants]
- The customer affluence
influenced by art displays [irregular business activities]
W|O Strategies:
- Emphasize the culinary
aspect of the business in
to the general public.
advertising campaign that
multicultural backgrounds,
- Plan an aggressive
- Florida is a major
includes travel and tourism
a la Mode Café
around the area.
landmark.
menu items for people in
could become a city
- Staffing issues [service
artists, etc.
culturally diverse
tourist destination, Art
awareness]
our advertisement to
special where kids are the
communities
- New business [public
on Tuesdays, or a Sunday
our business
- Appealing to
- Misperception of our
agents to create awareness
- Offer discount on the
portray a concise concept
- The staff should be from this would be helpful for tourist purposes.
- Create a general
atmosphere where all
kinds of public can feel
the art business
comfortable.
Threats:
S|T Strategies:
W|T Strategies:
the art community
trendy artwork that will
such as discount cards, or
- Non-acceptance by - Weather issues
[Hollywood Beach
hurricane evacuation area]
- Competitors that
may have a similar concept
- Always display unique and draw the customers’ attention along with
exceptional service that
- Promotional strategies Art a la Mode
memberships that will
incite customers to refer
invites them to keep
friends to our business. This
restaurant.
spread the restaurant’s
coming back to the
- Develop an alternative
strategy will also help to concept from the
seasonal menu with
customer’s perspective
hurricane season.
staff will be reduced to fit
discount prices for the - Reinforce the structure with protective windows.
- During hurricane season the business activity.
16
Product Positioning
17
Marketing Mix
The main strategy behind our business concept is to make our customers feel
that Art a la Mode Café is as unique as they are, and that we offer them the
opportunity to relax, have fun, and learn in an appealing atmosphere. This
business has a great potential for success because it presents a wide range of
growth opportunities. The marketing and advertising strategies have been designed to take advantage of our resources, products, and services.
Product
Art a la Mode Café as a product or service needs to be portrayed as symbol
of quality and innovation. Starting with our business’ name our concept is clear and specific; our operations will merge the pleasures of contemporary cuisine
and vanguardist art. Art a la Mode Café style is unique and inviting, our establishment has being designed to comfortably accommodate 150 customers
between the dining tables and the bar, plus a lounge and art display area located on the top floor. Art is the reason for everything in this business;
consequently everything from the glassware to the menu, from the cutlery to the decor will reflect our style.
Price
The menu prices, from food items to drinks and coffee have been determined
by studying our target market, our location, and the quality of our products. The
main objective while creating this business is to give the customer the best value
for their time and money. For this reason, our prices are affordable and range
from $5.99 to $18. Regarding to the art exhibits; there will be a price list of the happening displays that will be provided to the customers along with the regular
menu. However, Art a la Mode Cafe will act only as an intermediary between the artists and our customers.
18
Promotion
As a new business, promotion plays a crucial role in our success and
development. Different advertising strategies will be use to generate the highest
level of exposure. For example, local radio commercials, magazine and
newspaper ads, direct mail, and banners around the area. In addition, internal
promotions such as special discounts for people in the art business, and Art a la
Mode Cafe memberships will invite people to refer friends and family to obtain
discounts on food and merchandise. Our art programs can be promoted at
schools in the area to attract kids with artistic interests. Moreover, word of mouth among the art community can create a useful awareness that could contribute our business from the artistic perspective as well as to increase our customer
base. PR is also very important, strategies such as sponsoring community events or educational activities will be great publicity. Other strategies could include
deals with travel agencies, the Hollywood Beach Arts and Tourism department, and a user-friendly website with information about the events, the menu, coupons and other specials.
Place
Location is one of the key elements for the success of this business. Our
location is very convenient since is between Miami and Fort Lauderdale, one
the most touristic areas of South Florida, these adds value to our business, and also makes it more accessible to possible customers.
19
Location Analysis
The small town characteristics of Hollywood Beach such as personal service,
local ownership, sense of community and intimate scale of architecture are the foundation of its unique identity. These characteristics are represented and
facilitated by the scale, style, spatial organization, and material characteristics
of the existing stock of historic structures. At the same time, the natural assets of
Hollywood Beach such as ocean access and proximity to regional nature parks
are important elements of its unique identity and among its most valuable assets.
These structures and natural assets present a unique sense of place that is one
of the Beach’s most important means to distinguish itself in the Greater Fort Lauderdale tourist market and to protect its position as an economically viable tourist destination.
Unlike most beachfront retail strips, which are buffered from the ocean by a
roadway, Hollywood’s beachfront retail is buffered by the Broadwalk—a
30-foot-wide pedestrian walkway that is unique on the East Coast. The public
promenade and beachside restaurants, hotels and shops have established the unique atmosphere of Hollywood beach. Active spaces at ground level allow
passersby and patrons to interact and to create a socially vibrant public space.
The existence of this kind of public space is part of the unique and valuable
legacy of Hollywood Beach’s urban design. An active beachfront with a mix of ground level retail, restaurant, and hotel uses along the Broadwalk is Hollywood Beach’s most significant character-defining feature.
The Hollywood Beach downtown area has experienced efforts for economic
redevelopment for the past few years. The area contains several beach
neighborhoods, and is divided in the following zones: North Beach, Central
Beach, and South Beach. Art a la Mode Café will be located in the South Beach
zone, which is a high intensity urban area that started with the development of high-rise residential buildings and The Diplomat Hotel in the 1950s to the 1980s.
20
Demographically, the beach has a majority of white residents with lower
percentages of other residents. Furthermore, the beach population of older
aged residents, primarily 65 and over. However, in the past few years due to the
extensive development in the area, Hollywood Beach is now one of the trendiest cities in Broward County.
The beach area has higher income averages than the City as a whole. South
Beach has a higher average at $35,054 than North and Central Beach, with
North Beach having the lowest average at $30,251. The housing values in
Hollywood Beach are much higher than the city as a whole. South Beach average housing value averages at $206,300. While North and Central Beach also remain high with $109,600 and $156,900 as averages.
21
Financial Statement
Sales
Yearly
Beverage
$ 736,920
Food
Total Sales
Cost of Sales
%
$ 525,780
38.1
$ 1,380,000
91.5
53.4
Food
$ 351,900
Total Costs of Sales
$ 469,200
34
Gross Profit
$ 910,800
66
Interest Income
$ 55,258
Beverage
Other Income [Art Commission] Total Income
Controllable Expenses
$ 117,300
$ 10,000
$ 865,552
Salaries & Wages
$ 129,832.8
Operating Expenses
$ 9,521
Employee Benefits Marketing
Utilities & Rent
Administrative Expenses Repair & Maintenance
6
62.72
15
$ 47,605.36
5.5
$ 17,311.04
2
1.1
$ 147,143.84
17
$ 6058,86
0.7
$ 43,277.6
5
Total Controllable Expenses
$ 400,750.5
46.3
Net Profit
$ 464,801.5
33.68 22
Assumptions o o o o
Based on an average of 250 covers (customers) per day.
Working 7 days a week, during the whole year, with some holiday exceptions.
Averaging an expense of $16.50 per customer.
Employee wages starting at $3.5 for the service staff, and $6.79 for
regulat staff.
23