1. THE LAFAYETTE RESTAURANT
BUSINESS
PROPOSAL
FOR THE INVESTOR
Tomasz Kacprzak
Marcin Kąkol
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
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
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 can’t have
demanding someplace
customers else
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
