PLANNING THE

NEW STOTT’S
RESTAURANT

SUBMITTED BY:
SUBMITTED ON:
INTRODUCTION

Hospitality and tourism are service industries currently experiencing major growth. As a part of
these industries, the restaurant and catering industry plays a very important role in
Australia’s economy and society through the generation of employment and the attraction
of tourists, while also contributing to the leisure and lifestyle of Australians. Once you've
conducted research into the feasibility of your new business you're ready to write your
business plan. Your business plan is essential for your business - it's your blueprint for
the future. It sets the direction for your business and keeps you on track once you're up
and running. It's also a requirement when you're seeking finance. Stott’s College has
planned to open a restaurant next door and as a result of this the HRM plan will include
the following factors and steps.

Mission Statement

The goal of the College is that of an opening a friendly place with excellent service and high
quality food. Its first responsibility is to the financial well-being of the restaurant. The goal will
be achieved while trying to consider; 1) the effect of the products on the health and well being of
customers, students (and staff), 2) the impact that business practices and choices will have on the
environment, and 3) the high quality of attitude, fairness, understanding, and generosity between
management, staff, customers, and vendors. Awareness of all these factors and the responsible
actions that result will give our efforts a sense of purpose and meaning beyond our basic
financial goals.

SWOT Analysis

A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the company usually can be classified as strengths (S)
or weaknesses (W), and those external to the company can be classified as opportunities (O) or
threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection. The following diagram shows how a SWOT analysis fits into
an environmental scan:

SWOT Analysis Framework

Environmental Scan
/ \
Internal Analysis External Analysis
/\ /\
Strengths Weaknesses Opportunities Threats
 |
SWOT Matrix

Strengths

A firm's strengths are its resources and capabilities that can be used as a basis for developing a
competitive advantage. Examples of such strengths include:

1. Good reputation among customers- Stott’s college is famous among the students both
local and international and thus due to its good reputation, the new restaurant will
attract customers.
2. Cost advantages from proprietary know-how
3. Exclusive access to high grade natural resources
4. Favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:

• lack of patent protection

• a weak brand name
• high cost structure
• lack of access to the best natural resources
• lack of access to key distribution channels

In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a
large amount of manufacturing capacity. While this capacity may be considered a strength that
competitors do not share, it also may be a considered a weakness if the large investment in
manufacturing capacity prevents the firm from reacting quickly to changes in the strategic
environment.

Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth.
Some examples of such opportunities include:

• an unfulfilled customer need

• arrival of new technologies
 • loosening of regulations
• removal of international trade barriers

Threats

Changes in the external environmental also may present threats to the firm. Some examples of
such threats include:

• shifts in consumer tastes away from the firm's products

• emergence of substitute products
• new regulations
• increased trade barriers

OVERCOMING THE THREATS

There are three major ways in which we will create an advantage over our competitors;

• product identity, quality, and novelty

• high employee motivation and good sales attitude
• Innovative and aggressive service options.

This will be the only restaurant among all the competition which focuses the entire menu on
healthy, low-fat cooking. Each of the competitors offers at least one "healthy" selection on their
menu. Some even has an entire section called "On the Lighter Side" but in all cases they are
always seen as alternatives to the main style being offered. The target market will perceive
Stott’s as the destination location for healthy, low-fat cooking.

Once they have tried the restaurant, their experience will be reinforced by friendly, efficient,
knowledgeable service. Return and repeat business will be facilitated by access able take-out and
delivery options.

Future plans and Strategic Opportunities

Catering to offices (even outside of our local area) may become a large part of gross sales. At
that point a sales agent would be hired to directly market our products for daily delivery or
catered functions.
 IMPACT OF TECHNOLOGY

CONSIDERATION OF ADOPTING A
TECHNOLOGY

STRATEGIC ISSUES: STRATEGIC HR ISSUES:

• IMPACT ON • NECESSARY
PRODUCTIVITY EXPANSION/CONTRACTI
ON OF WORKFORCE
• IMPACT ON QUALITY OF
OUTPUT • TRAINING NEEDED TO
UTILIZE NEW
• IMPACT ON TECHNOLOGY
TIMING/DELIVERY OF
OUTPUT • COSTS OF HIRING,
SEVERANCE, TRAINING
• COST OF
MANAGING PEOPLE
EQUIPMENT/TECHNOLO • EFFECTIVE
GY MANAGEMENT OF
CHANGE
• ADEQUACY OF CURRENT

ACTION PLAN FOR THE RESTAURANT:

1. Marketing Plan & Sales Strategy

Market Penetration
Entry into the market should not be a problem. The store has high visibility with heavy foot
traffic all day long. The local residents and students always support new restaurants and the
tourists do not have fixed preferences. In addition, $10,000 will be budgeted for a pre-opening
advertising and public relations campaign.

Marketing Strategy
Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketing
vehicles will be created to convey our presence, our image, and our message.

• Print media -- local newspapers, magazines and student publications

• Broadcast media -- local programming and special interest shows
• Hotel guides, concierge relations, Chamber of Commerce brochures
• Direct mail -- subscriber lists, offices for delivery
• Misc. -- yellow pages, charity events

A public relations firm has been retained to create special events and solicit print and broadcast
coverage, especially at the start-up.

The marketing effort will be split into 3 phases;

1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and printed
announcement ads in key places. Budget - $10,000

2) Ongoing -- A flexible campaign (using the above media), assessed regularly for effectiveness.
Budget - $10,000

3) Point of sale -- A well-trained staff can increase the average check as well as enhancing the
customer's overall experience. Word-of-mouth referral is very important in building a customer
base.

2. Operations plan
It includes how the business will be setup, i.e. structure, location, regulations. The location of
the restaurant has been already decided as next to the college and as it is on the main street of the
city, it will definitively attract people. The structure will be kept as small initially with only 10
staff members. Two of the members will be allocated to customer service, four chefs need to be
selected from different cuisines so as to present the dishes perfectly and four staff members need
to allocated the waiting and catering duties so as to provide quick service to the customers.
3. Managing Plan
Once the business is setup, it needs to be well managed as well. The managing includes
recruitment of the staff, training and development of the employees, performance appraisal,
manpower planning and communication.
 Recruiting staff: When an organization needs to increase its headcount, the first strategic
choice is whether to hire temporary or permanent employees. In the case of Stott’s
restaurant, the college will need to hire both temporary and permanent employees taking
 in consideration the future development of the restaurant. College provides Hospitality
degrees to the students and some of those students can be given jobs as they can be paid
less and then according to performance some of them may be selected.
 Training the staff: The selected staff then needs to be trained properly so as to make
them clear the objectives of the restaurant. The staff needs to be trained in areas such as
preparation of meals, customer service and presentation of the restaurant. The College
can decide to use different types of training procedures depending on the experience of
the employee.
 Performance management: An effective performance management process can be
conceptualized as one that connects past, present and future. It utilizes data about past
performance to set goals, plans and objectives for the present that should result in high
levels of performance in the future. A performance plan includes the following:
 How system will be used
 Who evaluates
 What to evaluate
 How to evaluate
 Means of evaluation

4. Financial Plan
It includes how business will be financed, costing and financial projections. In the case of
Stott’s college, as the restaurant will be a part of the College, therefore the college
management committee can decide to invest the profits from college in the restaurant and
these funds can be used for the advertisement, infrastructure, employment and smooth
running of the restaurant.
The compensation payable to the employees in case of workplace accidents and
termination of employment should also be decided by the committee but those designing
the compensation systems must also bear in mind that compensation is a condition of
employment covered under Title VII of the Civil Rights Act of 1964.

Business planning is an ongoing business activity - you should regularly review and revise your
business plan. “Management is the process of working with people and resources to accomplish
organizational goals” (Bateman, Snell, 2007, pg. 16). In any large organization management is
essential for the business to function properly. When employees are managed properly all aspects
of the organization run smoothly. Management helps keep employees content but it also keeps
the company organized and well balanced. So the action plan prepared needs to be continuously
reviewed and revised and necessary changes should be made according to the requirements.

Implementation and Evaluation

Even the most well-thought-out business plan is just a stack of paper if it isn’t coupled with a
plan for implementation. This is the portion of the business plan where you’ll clarify objectives,
assign tasks with deadlines, and chart your progress in reaching goals and milestones. Here are
some guidelines for successful business plan implementation:

Objectives: Your objectives should be crystal clear and specifically spelled out, since you’ll use
them as a building block for the rest of the implementation plan. In this case our objective is to
open a friendly place with good customer service and good food for people.

Tasks: This part details what must be accomplished to achieve your objectives. Include a task
manager for each step, so that roles are clearly defined and there is accountability. As you
enumerate tasks and assignments, these descriptions should be plainly and generally stated; don’t
get into a step-by-step, micromanaged explanation of how the tasks will be carried out.
Emphasize the expected results associated with these tasks. Continuing with the above example,
the tasks section might read like this:

• Secure restaurant space – real estate agent

• Obtain licenses and permits – management
• Set up furniture and equipments for the restaurant – office manager
• Begin recruiting staff – manager
• Create marketing collateral – marketing manager

It also includes what quantities of food we require in the starting months and then which
issues need more importance.

Time allocation: Each task should be paired with an appropriate time frame for completion. You
should be aggressive but reasonable with your time allocation in order to ensure not just
completion but competent work. For assistance in framing this timescale, a program such as
Microsoft Project can be used – a helpful tool that shows how long it will take to complete
different tasks and in what order the tasks should be finished.

Progress: You or a member of your management team needs to be in charge of monitoring each
task’s progress and the completion percentage of each objective. When delays occur, try to get to
the root of the problem. Did the person responsible drop the ball? Did he or she have too many
responsibilities to handle? Did a third party, such as a supplier or the bank, fail to hold up its end
of a deal? Adjust your schedule appropriately to account for the delay, and make a note of the
previous deadline and the reason it was missed.
The early days of a startup are critically important; it’s a time when good management patterns
are set and also probably a lean era when revenue has yet to start rolling in. The more efficiently
you start implementing your business plan, the more likely it is that you will survive this early
period. The proper implementation of the plan needs time, money and lots of hard work and then
only is possible to attain the desired results.

REFERENCES

 http://www.microstrategy.com/Solutions/ByDepartment/HR.asp

 Evaluation of the Restaurant and Catering Industry Action Agenda , The Allen
Consulting Group Pty Ltd ACN 007 061 930, ABN 52 007 061 930

 Writing a Business Plan - Implementation Plan Getting from A to B, From Daniel

Richards, for About.com

 Human Resource Management (and Talent Management) Written by Carter McNamara,

MBA, PhD of Authenticity Consulting, LLC

 Strategic human resource management, by Jeffrey A. Mello