Pizza-Plus Inn Business Plan

Pizza-Plus Inn Business Plan

BUSINESS DEFINITION AND VISION

Pizza-Plus Inn is a start-up business, family-owned, which aims at providing quality Pizza in California, North Coast, to the residents in a way that helps the owners generate equitable and fair returns. Our specialization is on offering and creating a variety of different delicious Pizza. The NortnCoast region has experienced volatile growth in the last ten years. Most of the local businesses on the North coast are catching up due to the large population in the area. We are opening up the new Pizza-Plus Inn and delivery services that will lay its focus on the North Coast region. Currently, the pizza restaurant, which is closest to the location we are planning to situate our business, is approximately 1.5 miles away. Pizza-Plus Inn will offer quality products at a fair price and will make the deliveries at the customer’s doors.

Customers

Our customers are mainly teenagers and young adults. The young people are most likely to make desserts, drinks, and purchase Pizza while spending their leisure time. The products’ prices will be reduced to help make it affordable for the target group. Also, the environment around Pizza-Plus Inn will be designed to attract the target market through music, a serene environment to spend free time.

Mission and Vision

Pizza-Plus Inn has the mission to offer the North Coast residents the best pizza services in the area. We are committed to providing quality services and value that our customers anticipate. Pizza Inn will use its staff, strategies, and systems in providing every customer with an all-in-one customer experience through service product, service environment, and also customer experience; each part will meet or exceed the customers’ expectations.

Our vision is to become the leading choice of Pizza in the North Coast area and become a respected company in the view of our customers, employees, shareholders, and the community we are in.

Products

Pizza-Plus Inn will offer a wide variety of Pizza as well as fruit juices, desserts, sodas, and sauces.

Competitive Advantage

One of the competitive advantages of Pizza-Plus Inn is its location. There is no Pizza Inn in this area, with the closest being about 1.5 miles from our location. We thus close the distance gap, coming close to where the customers are for ease of convenience. Price is also our competitive advantage as we are selling the Pizza at a relatively lower price as compared to the market value to help increase sales and attract a wide range of customers.

PIZZA INN GOALS

Pizza-Plus Inn has set up goals to help in business growth through customer focus and profit maximization. As the manager of the business, my goal is to hire employees who are experienced in customer care services and can paly their role with little or no supervision. Also, I will provide a conducive environment for employees to work in, which will, in turn, help them maximize their ability in the industry.

Pizza-Plus Inn aims at attracting at least 30 regular customers in a day for a start, in its first year of operation. Also, we are aiming at providing our customers with exemplary Pizza services at a fair price as well as offer outstanding customer experience, which will be measured with the annual sales growth, and minimum customer complaints.  Pizza Inn also aims at generating positive cash flow from its day to day operations, and at least a net profit of 10%.

Pizza-Plus Inn will be located at a place with a relatively high population, with no specialized pizza nearby. Pizza Inn will start off as a small business with ten employees before making the decision to expend. After about six months, depending on demand and the demand for our products, we will create room for expansion by increasing our geographical coverage and the number of employees.

Pizza-Plus Inn is a family business, and thus family will take part in the Inn, offering their services for the best interest of the business. The family business will, however, employ other people within the community who have the required skills.

Providing employment to the community offers a good opportunity to build a good relationship with the members of the community. It would be quite hard to work alone in the Pizza Inn if we want the business to grow fast and to have enough people to serve a wide range of customers.

Our business will cover the distance that North Coast individuals go to look for specialized Pizza. It brings the services even closer to its customers while making door-to-door free delivery at a fair price.

Pizza-Plus Inn will provide high-quality Pizza beating all the other Pizza dealers around the area.  The Pizza will be served either as pieces or as a whole to help attract a wide range of customers due to its affordability. Customer satisfaction will be our number one priority. This will be achieved through the provision of focusing on the well-being of customers, offering quality services, products, and timely delivery.

At the moment, the pizza restaurant that is closest is about 1.5 miles away from our location.  Pizza-Plus Inn will offer its customers better products at a fair price and will make deliveries of the Pizza either refrigerated or hot, according to the customer’s preference, on time, and at the doorsteps of customers. The business will make a difference in the lives of the customers as it will bring the product closer to its customers, at a fair price.

UNDERSTANDING YOUR CUSTOMER

The target group of Pizza-Plus Inn will be teenagers and young adults ranging from 13-35 years. Every organization needs to identify its target market to help with the development of its strategies.

Needs: The young people need a place where they can quickly get access to fast foods, affordable prices, and those that are close to their residences. Students studying around this area needs a place to easily access fairly priced deserts over the lunch hour, and also young adults working around the place. Pizza-Plus fulfills this need of its customers by providing fast foods at a fair price while also ensuring that they make timely delivery. The specialized Pizza offered in Pizza-Plus Inn helps to close the gap by offering a unique product and bringing it close to the community.

Problems: My products solve the problem of distance, timely delivery, and the issue of high prices. The other Pizza restaurants are quite a distance from the spot we are putting up our Pizza Inn, and we, therefore, cover the distance for the people who want to go out, a short distance from their home, and relax in a serene environment. Also, our Pizza Inn looks into pricing. This is in terms of providing both large quantities and a small quantity of Pizza to help meet each client’s needs. The overall prices of our products are relatively low, with a 5% difference from the other pizza Inns in the area. Also, our Pizza Inn covers on specialization. A majority of pizza restaurants produce the normal Pizza, while we prepare the New York-style pizza. It is unique and helps to fill the gap in the market.

Perceptions: Over the years, there have been claims that fast-foods lead one to adding weight far much faster as compared to the other types of food. Research shows that fast foods, including drinks, have a big load of carbohydrates and have little or no fiber. There are thus people in the target group who have a negative perception of fast foods, and being a fast-food business, it might pose a huge problem to the business. However, fast foods are also easy to access and helps to enhance the heart of an individual and cholesterol levels. Some of the individuals who view our products in this sense will purchase the products quite often. However, those with a negative perception are likely to buy ou products once in a while.

Learn from your competition

Competition is quite stiff in the business of fast foods. However, the specialized pizza restaurant is 1.5 miles away from the Pizza-Plus Inn location. Despite there being three fast-food restaurants close to our intended location, they also include Pizza as one of their products. Their product’s quality cannot match that of the Pizza that we offer. However, they can be considered as competitors since they offer relatively low process, for lower quality products and are within a 1.5-mile radius from Pizza-Plus Inn. There are other competitors whom we identified around the area namely Johnson’s Foods, Your-Pizza Place and Pizza spot. Pizza-Plus Inn distinguishes itself from them through the provision of better quality pizzas at a fair price delivering both refrigerated Pizza and hot Pizza at the customer’s door.

Competitors in the fast-food industry in North Coat California tend to focus on offering their customers low-quality products at a relatively low price. Consequently, their focus is more on making more sales by lowering the price, but the quality has been affected in the process. Low price quality is meant to reduce the time and products used to produce a high-quality product. ‘

The competitors of Pizza-Plus Inn have their Strengths and Weaknesses. One of their strengths is that they have to build a customer base, and a significant number of customers have become fond of buying from them. Being a start-up, it might take time to build a customer base. Also, their prices are relatively low, which gives them a competitive advantage.

However, competitors also have their weaknesses. The quality of their products is quite low, which gives us the opportunity to produce better quality products and increase our niche by offering the best Pizza quality.

Improving upon the approach of the competition will entail meeting and also exceeding the needs, wants, and expectations of the customers. Enhancing our customer service efforts will play a vital role in building on customer loyalty as well as making sales by word of mouth, which most competitors do not have.

FINANCIAL MATTERS

We have made conservative estimates and found that Pizza-Plus Inn is expected to maintain a healthy financial position over the next three years. Initially, the business will be financed with a $10,000, which will be payable within three years, and the family’s savings of a capital investment of $75, 900. The cashflow which will be generated from the company will be used to repay the loan as the business will e expected to finance its growth. After operating for three years, the business can then manage to expand further.

Break-Even Analysis

For the break-even analysis, we are assuming that running costs of about $10,923 every month including the rent, utilities, payroll, insurance as well of other fixed costs. The average projected amount of sales each month is $45,000, which is anticipated to be far much greater as compared to the computed break-even point. We thus believe that our business has the capacity to reach as well as maintain profitability. We expect that Pizza-Plus Inn breaks even during its fifth month of operations.

Cash Flow Projection

Most of the profitable companies are likely to go bankrupt due to cash flow deficiency. This thus necessitates an organization to have sufficient cash flow to help meet the obligations of payment. On top of the normal inflows and the outflows, Pizza-Plus Inn will docus on establishing adequate cash reserves.  That will include a probable credit line with the bank, which can be used in slow sales, thus help to control the risk of cash flow. The management will work on investing the extra funds.

Assumptions

Currently, there are economic uncertainties, and thus our assumptions are conventional. The vital underlying assumptions are:

• There will be quite a slow recovery process in the next three years, but there will be no main depression.
• We are financial and capital sufficient to help maintain our financial plan
• We are assuming the increased popularity of the pizza services within our target market.