COMPANY DESCRIPTION
Restaurant Fortuna, Inc. based in Slovakia is a medium-size restaurant serving healthy, contemporary style food. The restaurant will be located at 24 M.R. Štefánika Street in Nové Zámky, Slovakia.
Mission Statement
The company's goal is that of a multi-faceted success. Our first responsibility is to the financial well-being of the restaurant. We will meet this goal while trying to consider;
1) the effect of our products on the health and well being of our customers (and our staff),
2) the impact that our business practices and choices will have on the environment,
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.
Development & Status
The company was incorporated in May of 2007. The founder is Tomáš Dioši. There is a total of 10,000 shares of common stock issued. He has loaned 500,000,- Sk of his own money for research and start-up costs.
A suitable site for the first restaurant was found last month and lease negotiations are in the final stages. The location will be on Komárňanská Street, next to the Main Square and close to a dense population of the target market. When the lease is signed there will be three months of free rent for construction and in that time the balance of the start-up funds must be raised. With that phase completed restaurant can then open and the operations phase of the project can begin.
Future Plans
If the business is meeting its projections by month nine, we will start scouting for a second location and develop plans for the next unit. Our five year goal is to have 3 restaurants in Nové Zámky and Nitra area with a combined annual profit of between 7,000,000,- Sk and 12,000,000,- Sk.
Industry Analysis
Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Trends are very important and Fortuna is well positioned for the current interest in lighter, healthier foods at moderate to low prices.
Future Trends & Strategic Opportunities
The predicated growth trend is very positive both in short and long-term projections. It is stated again that as modern living creates more demands, people will be compelled to eat more meals away from home.
PRODUCTS & RELATED SERVICES
Fortuna Restaurant will be offering a menu of food and beverages with a distinctive image. There will be three ways to purchase these products; table service at the restaurant, take-out from the restaurant, and delivery to home or office.
The Menu
The Fortuna menu (see appendices) is moderate sized, and moderate-low priced offering a collection of ethnic and Slovak items with a common theme -- healthy (low-fat, low cholesterol, natural ingredients), flavourful, and familiar. Our goal is to create the image of light satisfying and still nutritious food. There has been an increased awareness of nutritional and health concerns in recent years and a growing market of people who now eat this style of cooking regularly.
Production
Food production and assembly will take place in the kitchen of the restaurant. Fresh vegetables, meat and dairy products will be used to crate most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff.
Service
There will be three ways a customer can purchase food. They may sit down at one of the 54 seats in the dining room and get full service from a waitperson. A separate take-out counter will service those who wish to pick up their food. Most take-out food will be prepared to order with orders coming from either the telephone or fax. Delivery (an indirect form of take-out) will be available at certain times and to a limited area.
Future Opportunities
There is a market segment that prefers to eat this type of cooking at home although they do not have the time to cook. There are already caterers and even mail order companies that provide individuals and families with up to a month's supply of pre-prepared meals. This opportunity will be researched and developed on a trial basis. If successful, it could become a major new source of income without creating the need for additional staff or production space.
THE TARGET MARKET
The market for Fortuna 's products covers a large area of diverse and densely populated groups. Although it will be located in a downtown urban setting, it is an area where people travel to eat out and one that is also frequented by tourists. It is also an area known for and catering to the demographic group we are targeting.
Market Location & Customers
The customer base will come from 3 major segments;
- Local population
- Tourism
- Local businesses
The food concept and product image of Fortuna will attract 3 different customer profiles:
- The student - more and more young people have developed healthy eating habits. Some also go through a "health food phase" while in college.
- The health conscious person of any age or sex - this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet.
- Curious and open-minded - "if you try it, you will like it." Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that nutritious food can be tasty, fun, convenient, and inexpensive.
Market Trends & The Future
The population and demographics of the town have remained steady for the last 14 years. Tourism has increased 14% over the last 3 years and is predicted to keep growing. Local businesses are increasing at a rate of 18% yearly.
The idea of a health consciousness through nutritional awareness and dietary change has been slowly building for the last 7 years. As forecasted, this trend will be even more important by the year 2010.
As people want to stay home more and cook less our strategy of delivering prepared meals on a weekly or monthly arrangement may be a widespread accepted new way of eating.
THE COMPETITION
The are more than six restaurants in the Main Square area that sell food at similar prices. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. The newest competitors have made their successful entry based on an innovative concept or novelty. Fortuna will offer an innovative product in a familiar style at a competitive price. Our aggressive plans of take-out and delivery will also give us an advantage to create a good market share before the competition can adjust or similar concepts appear.
Competitive Strategy
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.
Fortuna 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. The target market will perceive Fortuna as the destination location for healthy, low-fat cooking.
MARKETING PLAN & SALES STRATEGYMarket 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.
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
- Direct mail - subscriber lists, offices for delivery
- Misc. - yellow pages
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 – 200,000,- Sk
2) Ongoing -- A flexible campaign (using the above media), assessed regularly for effectiveness. Budget – 100,000,- Sk
3) Point of sale -- A well-trained staff can increase the average check as well as enhancing the customer's overall experience.
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.
OPERATIONSHours of Operation The restaurant will be open for lunch and dinner 7 days a week. Service will begin at 11:00 AM and end at 11:00 PM. The restaurant will be closed on Christmas, Easter and New Year Eve.
Systems & Controls A big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity. Food costs and inventory control will be handled by our computer system and checked daily by management.
Food Production
Most food will be prepared on the premises. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Food will be made mostly to order and stored in large coolers in the basement.
Delivery & Catering
Food for delivery may be similar to take-out (prepared to order) or it may be prepared earlier and stocked. Catering will be treated as deliveries.
MANAGEMENT & ORGANIZATION
Key Employees & Principals Tomáš Dioši is also a president and manager of Fortuna Restaurant. He brings with himself a track record of success in the natural foods industry. His management style is innovative and in keeping with the corporate style outlined in the mission statement.
Compensation & Incentives Fortuna will offer competitive wages and salaries to all employees with benefit packages available to key personnel only.
Board of Directors
An impressive board of directors has been assembled that represents some top professional from the area. They will be a great asset to the development of the company.
Management to be Added
We are presently searching for a general manager and executive chef. These key employees will be well chosen and given incentives for performance and growth.
Management Structure & Style
Tomáš Dioši will be the President and Chief Operating Officer. The general manager Marek Hlinka and chef Peter Danczi will report to him. The assistant manager and sous-chef will report to their respective managers, and all other employees will be subordinate to them.
LONG-TERM DEVELOPMENT & EXIT PLAN
GoalsFortuna is an innovative concept that targets a new, growing market. We assume that the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality, consistancy and security (safety of food) that will make us the leader of a new style of dining.
Strategies
Our marketing efforts will be concentrated on take-out and delivery, the areas of most promising growth. As the market changes, new products may be added to maintain sales.
Risk EvaluationWith any new venture, there is risk involved. The success of our project hinges on the strength and acceptance of a fairly new market. After year 1, we expect some copycat competition in the form of other independent units. Chain competition will be much later.
Exit Plan
Ideally, Fortuna will expand to five units in the next 10 years. At that time, we will entertain the possibility of a buy-out by a larger restaurant concern or actively seek to sell to a new owner.
