Lunch’s BBQ and Steakhouse Restaurant Business Plan

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SITUATION ANALYSIS

Market Demand

Barbecue is a favorite national food and is enjoyed by people worldwide. Everyone is capable of making a favorite barbecue dish. There are basically four dominate popular styles of barbecue in the United States today (“Bbq Restaurant Franchises in the United States,” 2009). Memphis style offers two types of rib choices, wet ribs with a sticky sauce, along with dry rub ribs, which do not use sauce during the cooking process. This style is smoked over indirect heat and finished over direct heat, ending with a hot, smoky, or sweet flavor profile. Kansas City another dominate style is very similar to Memphis using lots of tomato-based sauces finishing with a hot or sweet-sour tasting profile. Carolina is another well-liked style with its pit cooked direct heat method, resulting in a hot and sour flavor profile. Texas is a smoked style of barbecue using indirect heat and direct heat. The flavor profile results in a smoky, savory, sweet goodness (“Starting Your Own BBQ Restaurant,” 2012).

Industry facts include over seventy-five thousand Barbeque Franchises operating from 1998 through 2008 (NPD Foodservice Information Group, 2013). Estimated cost of owning a barbecue restaurant franchise is approximately seventy-five thousand to two hundred fifty thousand dollars, with franchise opportunity fees around thirty-five thousand dollars. 

Nationally, projected 2013 restaurant industry sales are expected to be over six hundred fifty thousand dollars. Restaurant locations are forecasted at nine hundred eighty thousand. Sales for 2013 are projected to be four percent of the United States gross domestic product. National sales are estimated at $1.8 billion for a standard day in 2013. There are over thirteen million restaurant employees, with 93% of the restaurants having fewer than fifty employees. Total economic impact of the restaurant industry is estimated currently at almost two million dollars (Restaurant.org, 2013).

Restaurants are a huge contributor of tax revenue to the California economy. According to the National Restaurant Association and the California Restaurant Association, the following is current or projected for the state of California: (1) In 2011, there were over sixty two thousand eating and drinking establishments in California; currently for 2013, there are one million eighty six thousand; (2) 2013 sales are projected to be approximately $67.4 billion; (3) One million four hundred seventy five thousand one hundred jobs; (4) For every one dollar spent in a California restaurant, an additional $1.16 in sales is generated for the state; (5) Every one million dollars spent generates an additional 23.6 jobs (Restaurant.org, 2013;  California Restaurant Association, 2013). Dawn Sweeney, president and CEO, National Restaurant Association, states “for every dollar spent in restaurants, an additional $2 is generated in sales for other industries, generating even more tax dollars and economic activity” for the local community (Restaurant.org, 2013).

United States Department of Agriculture (USDA) Economic Research Service reports the following data: (1) Food-away-from-home or restaurant purchases Consumer Price Index (CPI) increased 0.2 percent in July 2013, and is up 2.1 percent from July 2014; (2) Beef and veal prices currently are at record high levels, along with an increase of 0.5 percent for one month June to July 2013. With U.S. cattle inventories at low levels, higher prices are expected until the end of 2014; (3) Poultry has however experienced a price decline during this same period, but prices are expected to remain high due to feed costs and strong consumer demand; (4) Non-alcoholic beverages, which includes coffee as well as carbonated beverages fell 0.5 percent during this same time period which represents 1.2 percent below 2012. This category appears to be tracking with unusually low inflation for 2013 due to strong coffee global supplies. This applies to sweets and sugars; (5) Food-away-from-home 2014 CPIs are anticipated to increase from 2.5 to 3.5 percent over 2013 indexes; (6) This category is growing in the American consumer diet. Consumers want convenience, food variety, as well as the entertainment value of eating out. Traditionally, restaurant food has larger portion sizes, along with higher calorie levels and super-sized portions (Ers.usda.gov, 2013). 

This trend is changing, and Lunch’s BBQ and Steakhouse Restaurant will focus on providing quality local and organic ingredients, as well as Black Angus beef. Nutrition and healthy choices will be available offerings.  According to the USDA, full service and fast food restaurants are the two largest categories of commercial foodservice accounting for seventy seven percent of the total food-away-from-home sales (Ers.usda.gov, 2013).

Competition

Orange County California has a huge selection of restaurants which has the potential to serve an estimated population of over three million customers with a median household income of $75,762 based on 2007 - 2011 dollars (“U.S. Census Bureau: State and County QuickFacts,” 2013). We view our competitors as Blake’s Place, Dickey’s Barbecue Pit, Lucille’s Smokehouse Bar-B-Que, and Wood Ranch BBQ & Grill Restaurant. Blake’s Place dedicates all menu options to a hickory-smoked barbecue flavor profile. They are known for their “Beast” Sandwich, which is a 2.5-pound sandwich of pulled pork, smoked chicken, as well as beef brisket layered with coleslaw (Blake’s Place, 2013). Dickey’s Barbecue Pit opened in 2012 in Irvine and Huntington Beach. Their menu is Texas based with heavier side choices of baked potato casserole and macaroni and cheese. They also offer their guests unlimited free soft-serve ice cream (Dickey’s Barbecue Pit, 2013). This restaurant is not for the diet or health conscious, but we will need to continue to benchmark our sales and service against them, as they had approximately $249,000,000 in sales (Technomic.com, 2013). We want to grow in this way with sales and locations.  Lucille’s Smokehouse Bar-B-Que is another significant competitor. Lucille’s focus is Southern style barbeque. They opened in Orange County in 2000, providing live blues on Saturday night, along with traditional southern menu items of fried chicken, fried catfish, gumbo, and jambalaya. Prices average $21 – 30. They also offer catering (Lucille’s Smokehouse Bar-B-Que, 2013). We believe their Brea location will be a disadvantage. Wood Ranch BBQ and Grill Restaurant is an important competitor because we are basing our layout and service almost identical to their cafeteria style setting. Their flavor profile is mesquite grilled focused and they offer extensive menu choices (Wood Ranch BBQ and Grill, 2013). With a new Irvine location, we will be competing strongly with them. Due to their multiple locations and large crowds, we intend to capture some of this overflow.

Readiness

Our founders possess knowledge of the barbeque industry through family history of home cooking, church dinners, as well as volunteer events. This experience with various cooking methods, sauce recipes, along with a small established customer base, is the foundation Lunch’s BBQ and Steakhouse Restaurant brings to the marketplace. We are committed to quality, local and organic ingredients, Black Angus beef, as well as healthy portion sizes. These are key elements which are different from our competitors. Our offerings are designed to appeal to the steak connoisseur, along with barbeque lovers who enjoy Carolina and Memphis sauce flavor profiles and cooking methodologies. Our startup weakness is limiting our menu choices, no dinner service, and lack of alcohol beverages. We will review our success for a six month to one-year period, with the intention of expanding the menu with dinner, more item choices and a limited alcohol service. We believe our food quality and taste, social media presence, our inviting environment, as well as our potential to provide more revenue with our catering menu, will offset our initial weaknesses. Operationally, we intend to hire employees with restaurant experience and attend workshops to increase our knowledge level. We have a working relationship with a local regional bank, cash savings, and a small group of investors.  

GENERAL COMPANY DESCRIPTION

Lunch’s BBQ and Steakhouse Restaurant is a limited service restaurant specializing in barbecued pork ribs, beef ribs, chicken, Santa Maria style tri-tip, fresh fish daily selections, and extensive Black Angus steak offerings. We offer dine in service for lunch only daily for sixty guests. Carry out is a huge part of our daily business. Catering is available daily upon request, featuring delivery and full-service options.

Lunch’s BBQ and Steakhouse Restaurant plans to operate as a Limited Liability Company registered in the State of California. Lunch’s BBQ and Steakhouse Restaurant will be owned by the general manager/owner. Support and staffing will be provided by family members, as well as recruitment.

Motivation and Business Statement

The mission statement is to provide a good, quality economical meal that has never been seen before in this part of California. People like quality means that they can enjoy at a relatively low cost. We will treat every patron and customer as if they were family. We are to provide a home cooked meal that customers have never experienced before. 

A restaurant is just one example of a movement of for-profit enterprises that will be meeting financial goals, promoting social equity, and exercising environmental stewardship (Russo, 2010). The way this restaurant is by barbecuing most of the items and leaving a better carbon footprint using less gas and oil.

When Intel could no longer compete with large and better capitalized Japanese firms in its business, its employees realized the company had to concentrate on the one thing it did best: it had to focus on an area where it had competitive advantage (Russo, 2010). Thus, Lunch’s BBQ and Steakhouse Restaurant will focus on barbecue and will have a competitive advantage in this community based on being one of the few restaurants that serve barbecue. 

PRODUCTS AND SERVICES

Lunch's BBQ and Steakhouse Restaurant is a comfortable and inviting restaurant that was designed to ensure customer satisfaction. The special element of Lunch's BBQ and Steakhouse Restaurant comes from its courteous and gracious customer service, impeccable and indescribable cuisine selections that are meticulously prepared by our kitchen staff and team. Each night Lunch's BBQ and Steakhouse Restaurant is open, the food is perfectly prepared and on time. There are two managers on staff, one attending the flow of the seating and dining area and the other executing a seamless facilitation of the kitchen. We pride ourselves on making sure that customers leave contented and satisfied with the service and food that we provide. 

We are a dine-in lunch, carry out and catering company. We are open 7 days a week from 11 a.m. to 9 p.m. Our dine-in lunch hours are between 11 a.m. and 3 p.m. We offer carry out from 11 a.m. to 9 p.m. Our catering services are upon request only, requiring 72 hours notice.

Competitive Comparison

Blake's Place in Anaheim, Dickey's Barbecue Pit, Lucille's Smokehouse BBQ, and Wood Ranch BBQ & Grill are chains have been recognized as the Best BBQ Eats in Orange County (Luna, 2009) that provide dynamic atmospheres for comparison purposes. Our most competitive edge is beef that is California sustainable farm specific as well as Black Angus. We utilize Black Angus beef that is corn-fed for a period of 120 days. Additionally, the beef is aged for a period of 40 days thereby allowing it to have exceptional flavor and tenderness ("Gibsons," 2013). Lunch's BBQ and Steakhouse Restaurant provides steaks as well as foods that are succulent in flavor and taste. There is no other establishment within the industry that serves steaks as tasty and delicious as ours.

Products and Services Description

Our menu consists of steaks that are thick and juicy and coated with flavorful spices. These steaks are cooked to perfection. We provide BBQ chicken, beef and pork ribs, fish, and Santa Maria Style Tri-Tip. Additionally, our menu also consists of side dish offerings including baked beans, coleslaw, corn on the cob, and French fries, refreshing fountain drinks, and delectable desserts that include our homemade chocolate chip cookies and sweet to the palate milkshakes.

We utilize two distinctive sauces for our barbecue. These are: Carolina, designated by its hot and sour flavored profile as a result of its pit cooked direct heating technique, and two types of Memphis - the first is a sticky sauced wet rib and the second, a dry rub utilization method that does not use sauce throughout the process of cooking; thus providing a hot, smoky and often sweet flavored taste due to a combination of both direct and indirect heat (“Starting Your Own BBQ Restaurant,” 2012).

(Menu omitted for preview. Available via download)

MARKETING PLAN

Market Analysis

Irvine, CA was incorporated in December of 1971, under the laws of the state of California. The city operates under a charter law form of government that was instituted in 1975. It is considered to be one of the nation's largest urban communities and encompasses 65 square miles within Orange County. The city of Irvine's strength is found in the people that reside there. It can be said that the city is a success because of the hard-working community minded individuals that reside there. The population of Irvine has significantly grown throughout the past 40 years, with a population remaining averaging 20% annually between the 1970's and 1980's. When the 1990's emerged, the city began to see a significant increase in population of about 2%. At present, the population of based on US Census Bureau data was 231,117 as of 2012. The median income in the city of Irvine is $85,615 with the employment base of 190,600. The top employers in the city of Irvine per 2012-2013 data are the University of California, Irvine; Irvine Unified School District; Broadcom Corp.; and Edwards Lifesceinces Corp. ("City of Irvine," 2013). 

Females comprise 51.3% of Irvine's demographics. Next, 21.5% as of 2010 US Census Bureau data are persons under the age of 18. Persons 65 years and over account for 8.7% of the population in the city of Irvine. With regard to education, the city of Irvine's data reflects that 65% of the population hold a bachelor’s degree or higher, 96.4% are a high school graduate or higher and roughly 6,513 individuals between 2007-2011 are veterans. 78.5% of the general population in the city have lived or are living in the same house for a period of 1 year. The median household income when an average was taken between 2007-2011 was $92,599 ("Irvine (city), California," 2013). Given this data, the city of Irvine and the surrounding areas near the city makes it a very attractive place to start a business and the focus of our marketing plan.

Market Segmentation

The ultimate consumer of Lunch's BBQ and Steakhouse Restaurant is the working adult between the ages of 18-29 and 30-50. The smell of the mouth-watering aroma and the smoke of the grill get the taste buds yearning for something special. People travel far and wide for barbecue to satisfy their craving. Whether it's steak, chicken or a succulent piece of fish, everyone loves barbecue ("So You Want to Start Your Own Barbeque Restaurant" 2013). Frequent data has suggested that individuals will pay significantly if the barbecue tastes good and is prepared right. True barbecue is not about the sauce that it is smothered in, but about the rich tradition of barbecue. Thus, Lunch's BBQ and Steakhouse Restaurant, stands to benefit tremendously by being located in a key area within Orange County, California.

The first-tier target market segment for Lunch's BBQ and Steakhouse Restaurant concentrates on the 18-29-year-old age range with estimated income in the $21,000 - $60,000 range, located within a 5-mile radius. The second-tier target segment focuses on the 30-50-year-old age range, with an estimated income in the $40,000 - $80,000 range. 

Targeting both the 18-29 age and 30-50 age groups speaks to the needs and requirements of our customers who seek to have delicious food at a reasonable value. These customers have schedules that are regimented in their lives. These customers will find significant value in exceptional and timely service and menu options that assist in providing food that is mouth watering to the palate. Both the 18-29 and 30-50 age groups will find value in the upscale food offerings such as the variety of steak options in addition to the rib choices, chicken and fish. 

Nature of the Competition

The general nature of business competition is how customers see them and therefore, Lunch's BBQ and Steakhouse Restaurant has chosen to be defined by customer loyalty, a promotional marketing mix and positive word of mouth. Any restaurant that is to be successful in the business world, must truly believe in what they are offering and the fundamental meaning of the word, hospitality. Lunch's BBQ and Steakhouse Restaurant seeks to understand the customer's feelings about barbecue being a staple given its historical tradition and capitalizing and delivering consumer expectations. Lunch's BBQ and Steakhouse Restaurant has carefully selected a team of customer service and management professionals who are committed and dedicated to ensuring that customers receive an exceptional experience regardless of whether they select the dine-in, carry out or catering options.

The management and customer service staff are dedicated to ensuring customers know and understand that we are a cut above the competition. Lunch's BBQ and Steakhouse Restaurant has extremely high standards of professionalism in the kitchen. Cleanliness, adherence to recipe as well as cooking standards and efficiency are continuously practiced within. Our prices are reasonable and can be perceived as exceptional value for one's money when looked at against our competitors.

Lunch's BBQ and Steakhouse Restaurant offers delicious steaks of all varieties, chicken, fish and ribs that are cooked to perfection, seasoned side dishes that are sensational, sweet and succulent desserts prepared from scratch, and refreshing beverages - all catering to the healthy lifestyles of our patrons. The crux of Lunch's BBQ and Steakhouse Restaurant is known for its comforting, intimate and relaxing atmosphere. It is perfectly suited for the working individual or an afternoon meeting. 

(Marketing strategy and communications omitted for preview. Available via download)

OPERATIONAL PLAN

Lunch’s BBQ and Steakhouse Restaurant is a limited service restaurant. Lunch’s offers dine in service; carry out, as well as catering. Our dining room capacity can accommodate sixty guests. There are fifteen tables accommodating 4 guests per table. Carry out orders are accepted by telephone and online. 

Our operating hours are seven days a week. Lunch’s BBQ and Steakhouse Restaurant is open Sunday through Saturday for all restaurant services. Dine in service is open from 11 a.m. to 3 p.m. Carry out is open from 11 a.m. to 9 p.m. Catering is available upon request with a 72-hour advance notice. Catering options include delivery and setup only with a minimum order of ten meals. Full-service catering is also available which includes delivery, setup, and cleanup. This service requires a minimum of thirty meals. 

All meats and other ingredients will be purchased from local vendors. Beef and poultry will be purchased from Mendenhall Cattle Company (dba Homegrown Meats) (Homegrownmeats.com, 2013) located in La Jolla, California. Pork will be sourced from Balbas Farms located in Madera, California, as well as Local Harvest located in Santa Cruz, California. Local Harvest will also supply the chicken. Fish will be purchased from Santa Monica Seafood Company (or one of their retail stores) based in Rancho Dominguez, California. 

Local and organic ingredients will be purchased at Farmer’s Markets in Irvine, such as Great Park CFM, Irvine Tuesday CFM, or Kaiser Permanente Irvine CFM (Farmer’s Market, 2013). Additional ingredients will be purchased from Trader Joe's, Sam’s Club and Whole Foods. Paper, packaging, and cleaning products will be obtained from Unisource located in La Palma, California. Customer product distributions will be accomplished with dine in service, carry out, and catering.

Corporate Social Responsibility Plan (CSR)

Lunch’s BBQ and Steakhouse Restaurant is committed to internal and external policies which support business practices, our employees, and the communities we serve. We are dedicated to being a responsible business with standards for ethics and guidelines for how we do business. Our goal is to motivate and support health and the human spirit in everything we do from vendor purchases to employee workplace standards and practices. 

Social Responsibility

Standards of Business Conduct – We are committed to ethical business practices. Corporate Political Contributions and Expenditures – We will engage government and institutions on issues which impact our business, our people, and our communities. Menu Labeling – We will provide our customers access to product information. We will support domestic and international ethical business practices.

Workplace Responsibility

Human Rights – We are committed to human rights in the way we do business with suppliers and employees. Equal Employment Opportunity – We have a non-discrimination policy. Health Care – We support healthcare reform which allows us to offer our employees affordable coverage.

Ethical Sourcing

Supplier Code of Conduct – We expect our suppliers to be responsible and ethical in all of their business operations. Lunch’s BBQ and Steakhouse Restaurant has preference to animal welfare-friendly practices and ingredients and supports United States Supplier Diversity Standards for all manufactured goods and services. California Transparency in Supply Chains Act – We have a zero-tolerance policy for the use of human trafficking and forced labor. This CSR is modeled after Starbucks (Starbucks.com, 2013). 

Third-Party Alliances and/or Joint Ventures

Forming third party alliances and/or joint ventures can accelerate speed to market and speed to profit. Lunch’s BBQ and Steakhouse Restaurant is accelerating speed to market and speed to profit by utilizing sustainable and healthy foods from local vendors. This decision will result in less expensive foods, along with reduced transportation costs. This choice of sustainable foods will reduce operating expenses, food costs, as well as improve the environment. 

Energy use will also be a source of speed to market and speed to profit. Efforts will be made to reduce energy use by selecting Energy Star appliances, which are more energy-efficient. We will also select appropriate cooking methods to save money, along with choosing efficient heating and cooling systems (“4 Ways Restaurants can Increase Profits by Going Green,” 2011). Lunch’s BBQ and Steakhouse Restaurant will continue to evaluate opportunities to reduce emissions, reduce waste, and to become a more profitable business.

MANAGEMENT AND ORGANIZATION

Overview

Management will create and establish sound operating guidelines and procedures to conduct the daily operations for Lunch’s BBQ and Steakhouse Restaurant. Policies, procedures, and systems will be adopted using restaurant association resources, as well as the restaurant experience of the management team.

Staffing

Lunch’s BBQ and Steakhouse Restaurant will employ 15 employees. The interview process is designed to recruit a highly qualified with applicant rating standards and complete background checks. Direct recruiting and referrals will be used to finalize the expected staff levels as indicated below:

(Payscale omitted for preview. Available via download)

Position Titles and Descriptions

General Manager/Owner:

General Manager/Owner provides leadership and motivation to ensure that all managers and team members are customer service focused, team focused, and community involved. The General Manager will exercise knowledge of restaurant operations, manage staff resources, provide counsel, make sure company policies, procedures, and programs are adhered to, develop and coach employees, establishes daily, weekly, monthly and quarterly sales goals/forecasts to meet and exceed budgeted quantities, and oversees the daily execution of the Mission Statement and Core Values of Lunch’s BBQ and Steakhouse Restaurant. Experience in California employment laws, as well as Bilingual Spanish and English is preferred.

Kitchen Manager

The Kitchen Manager makes sure the kitchen functions in a proper order and quality is maintained in all kitchen departments. He/She maintains high standards of behavior-based safety management, hygiene, and sanitation in all kitchen activities. Healthy food quality, nutrition, and food quantities are key requirements. The Kitchen Manager is responsible for coordinating and securing all food, equipment, and supplies with established vendors at reasonable rates. The Kitchen Manager participates in recruitment, training, and meets daily with staff to discuss kitchen management. Assist with resolving guests’ complaints in food or service. The Kitchen Manager reports to the General Manager/Owner.

Assistant Manager

The Assistant Manager ensures Lunch’s BBQ and Steakhouse Restaurant operates with established guidelines to meet and exceed sales, profitability, and safety requirements. The Assistant Manager supports the General Manager/Owner and Kitchen Manager to optimize profits by controlling food, beverage, and labor costs. He/She is responsible for hiring, training, and developing new hourly team members and provides leadership as well as direction to maintain efficient operations, food quality, and availability. The Assistant Manager ensures company policies and guidelines are followed and completes task assigned by General Manager. A working knowledge of restaurant operation procedures and practices are required along with the ability to handle all types of monetary transactions as well as assist with guest’s customer service needs. This position reports to the General Manager/Owner and has leadership responsibility when the General Manager/Owner is unavailable.

Line Cook

The Line Cook makes sure that all food is prepared to the exact specifications of Lunch’s BBQ and Steakhouse Restaurant, the Kitchen Manager, and customer. The Line Cook is responsible for station set up before the start of each service, ensure all supplies are available and ready to use. This includes advance setup or stocking the stations. The Line Cook will prep and cook food for all daily service, as well as catering events, which includes chopping vegetables, butchering and cooking meat, preparing sauces, and all other activities of prepping food and cooking required for safe and efficient restaurant operation. Station clean up is also the responsibility of the Line Cook to include garbage disposal, cleaning all utensils, pots, pans as well as prep and cooking surfaces. The Line Cook is responsible for handling leftover food disposal, returning any unused items to correct inventory locations, or storing and staging any cooked food for future service use. Stocking is also required of the Line Cook, which consists of unloading delivery trucks, inventory control, and stocking pantries and refrigerators. This position reports to the Kitchen Manager.

Prep Cook

The Prep Cook assists the Line Cook in the washing and preparation of all food prior to cooking, as well as peeling, chopping and slicing of fruits and vegetables, along with all meat and sauce preparation. This position will also assist with monitoring food cooking activity including measuring, mixing, stirring, and testing food as needed. The Prep Cook washes dishes, takes out garbage, and assists the Line Cook and Kitchen Manager with any kitchen and food duty. The Prep Cook will assume the duties of the Line Cook during service shifts when needed. This position reports to the Kitchen Manager.

Servers

Servers (also Waiter or Waitress) are responsible for serving customer meals. They must have a working knowledge of Lunch’s BBQ and Steakhouse Restaurant menu and be able to describe all menu item and ingredients, along with how food is prepared and cooked for guest customer service. Attention to customer needs is required to enhance the overall customer dining experience. Servers are required to stand on their feet during their shifts, carry trays and manage all food, glasses, and dishes with extreme hot or cold temperatures during all restaurant service. Servers are required to have complete knowledge of food handling methods, along with safety, sanitation methods. Compliance with all company policies and procedures is required, as well as working as a team member by attending training classes and keeping up date on restaurant practices. This position reports to the Assistant Manager.

Food Runner

The Food Runner assists all Servers and Assistant Manager. The main duty is to deliver or run food to customer tables immediately after it has been prepared by the cook. The Food Runner must always make sure the customer receives the correct plate ordered, along with ensuring no food item is missing from the plate and handles the plate carefully and timely to endure optimal food temperature is attained when the customer receives their meal. This position will also assist with restaurant duties including cleaning tables, removing dishes, filling water glasses, maintaining cleanliness in kitchen and customer areas, and assisting all staff members when needed to provide the best possible experience for the customer. This position reports to the Kitchen Manager with accountability to the Assistant Manager and General Manager/Owner.

Bus Person

The Bus Person is responsible for working with all Lunch’s BBQ and Steakhouse Restaurant employees. They must ensure the restaurant operations run smoothly and efficiently with removal of dirty plates, silverware, glassware, and any and all items from restaurant tables after the customer leaves. All items requiring washing must be taken to the dishwasher, along with making sure workstations and tables are set up with any item a guest needs for dining service. Bussers are responsible for clean and safe conditions at all times, as well as ensure the restaurant is presentable. A clean and neat appearance is required at all times as customer interaction and service must be professional to meet the restaurant goals and policy guidelines. This position reports to the Assistant Manager.

Training

All employees will be trained on their position as well as cross trained on another position. Training materials and instruction will be provided to ensure Lunch’s BBQ and Steakhouse Restaurant success. All employees are responsible for a clean, safe, and efficient restaurant operation, as well as having complete knowledge of company policies and procedures.

Advisory Board and/or Board of Directors

Lunch’s BBQ and Steakhouse Restaurant will operate with an Advisory Board for a one-year period. Depending on expansion plans, consideration of a Board of Directors will be addressed. The Advisory Board will consist of the General Manager/Owner, Investor Group Members, and a bank representative.

Daily Operations and Production

Lunch’s BBQ and Steakhouse Restaurant will be open for business seven days a week. Dine in and Carry Out services will require multiple shifts. The General Manager/Owner will create a two-week shift schedule which will be adjusted as needed to accommodate sales volumes. Preparation of recipe ingredients can be done in advance. Food labeling, storage handling, and inventory rotation techniques will be used to guarantee quality food products and ingredient availability during peak business hours. Ordering, receiving and maintaining proper inventory levels to me demands will be the responsibility of the management staff. Perishable items will be ordered appropriately to manage food freshness, along with standard items being ordered as needed. Operational checklists will be used to assist each shift with managing operational standards.

Table service is available and designed to enhance the guest experience, as well as the efficiency and flexibility needed to manage customer traffic and any fluctuations in Dine in or Carry Out service times. Guests will be greeted by a member of the management team during the first year of operation and directed to the cafeteria style line to order their entrée choice and pay the cashier for their selections. Each guest or group of guests will be provided a number identifier to be placed on the table of their choice. This number identifier will be used by the server to bring the guest meal or meals to the correct table. After securing a table, guest will be directed to the beverage and flatware station where they will self-serve their beverage of choice, pick up their flatware and an extra plate if needed and return to their table to await entrée delivery. Once the guest entrée is cooked, a server will deliver the meal to the correct table and remove the number identifier from the table. All staff members are required to monitor tables throughout their shift, checking to make sure the guests or group has everything they need for a wonderful dining experience, as well as assist the bus person with removal of dirty dishes. Meal selections will take approximately ten to fifteen minutes for standard orders. Servers are responsible for delivering dessert selections immediately after number identifier removal to ensure the guest receives all items ordered timely and correctly. When all guests have left the table, the service staff must immediately clean the table and prepare it for the next guest or group.

Every staff member is required to do preparation, restocking, and cleanup during shift changes. Monies received from guest tips will be settled at the end of each shift. The Carry Out staff will have the responsibility of making sure the restaurant is cleaned and ready for the Dine In service the next business day.

Customer Service

Customer service is an important operation at Lunch’s BBQ and Steakhouse Restaurant. Staff is expected to ensure a happy guest experience, as well as resolve any customer issues personally or inform the management team for resolution. Specific customer service training will be conducted and documented in the server manual to inform staff how to deal with guest complaints, customer perception, as well an employee service attitudes. Staff meetings will be held on a weekly basis to review policies, guest satisfaction, and encourage communication among the entire team. 

Suppliers

Vendors will be established to ensure product is available and delivered on regular schedules. Alternate suppliers will be identified should a substitution be necessary.

(Supplier chart omitted for preview. Available via download)

Management Control

Management will practice sound management procedures to control restaurant costs, product quality, and provide outstanding customer service. The following systems will be used by management:

Time and Attendance System

Employees will use an automated time and attendance system stand alone time clock for signing in and out of their daily shifts.

Scheduling System

A scheduling system will be designed to accommodate automatic scheduling on a monthly basis with the anticipated restaurant labor budget as a basis.

Operations Checklist

Various checklists will we designed and used during restaurant operations. This will assist with maintaining quality control and following of procedures. Checklists will be used for customer service feedback, material and packaging purchases, receiving and storage, preparation areas, cleaning of all surfaces, shift changes, and restaurant openings and closings.

Order Guide/Inventory Management

An order guide will be used to track order history and manage inventory. Weekly inventory cycle counts will be performed by the Kitchen and Assistant Managers, as well as this team will publish weekly profit and loss reports. Daily inventory tracking will be conducted on specific items to ensure proper rotation and to cross check with restaurant sales.

Cash Audits

Management will conduct cash audits of the cash register at random time intervals. This will ensure balances are audited during shift changes and dining service changes. A point of sale (POS) system purchase will be evaluated after six months to better track sales and provide links to the time and attendance.

Administrative Systems

Daily cash counts will be taken in each dining service and weekly prime cost reports will be prepared by management which depicts gross profit margin after cost of goods sold, as well as labor cost deductions from sales revenue. Purchasing invoices and payables will be verified and processed daily and weekly. The General Manager/Owner conducts this activity, as well as serve as the only check signing authority for Lunch’s BBQ and Steakhouse Restaurant. Monthly financial statements will be prepared by the Assistant Manager and yearly activity will be performed and audited by a CPA. Payroll checks will be processed and issued weekly by the General Manager/Owner.

Safety Reviews

Safety assessments and reviews will be performed on a daily basis to ensure that employees and guests are safe, and not exposed to dangerous conditions or actions.

Human Resources Policies for Governing and Compliance

Lunch’s BBQ and Steakhouse Restaurant will follow all California Employment and Labor Laws identified at CalChamber.com. As a member of this organization, Lunch’s BBQ and Steakhouse Restaurant will receive and provide information for the following human resources policies which will be posted on site and all information will be provided to employees upon hiring:

START-UP EXPENSES AND CAPITALIZATION

This start-up expenses and capitalization statement is based upon review of franchise barbeque operations to provide a framework of anticipated requirements. See the following chart below for breakdown.

Start-up expenses are based upon Dickey’s Barbecue Franchise cost (Qsrmagazine.com, 2013) and Chuck Wagon Barbecue Business Plan was used as a template example (Advantageoakland.com, 2013).

Additional incorporation, licensing, and permit information were attained from the Small Business Administration (Sba.gov, 2013) as well as general operating information was obtained from Profit Line Consulting (Restaurantexperts.com, 2013).

(Itemization, financial plan, and sales projections charts omitted for preview. Available via download)

Risk Management

Lack of projected sales is our biggest risk factor. We will have to reduce staff and any variable costs, as well as fixed costs if necessary. We will be carefully monitoring all expensive. The General Manager/Owner is investing $10,000 of personal monies.

At this time, Lunch’s BBQ and Steakhouse Restaurant will not be issuing any company stock or working jointly with any venture capitalist.

EXECUTIVE SUMMARY

People love barbecue and steak. Barbecue has become a staple in society. People travel far and wide for the delicious taste. It is because of this understanding about the eating habits of consumers, that Lunch's BBQ and Steakhouse Restaurant was born. Projected to be a new restaurant establishment in the Irvine, CA area, Lunch's BBQ and Steakhouse Restaurant is a limited service restaurant that specializes in dine-in, carry-out and catering options. Operating as a Limited Liability Company, Lunch's BBQ and Steakhouse Restaurant adheres to using products that are healthy, while ensuring that customers are satisfied and content with the customer service.

Lunch’s BBQ and Steakhouse Restaurant appeals to the 18-29 and 30-50 age groups per Orange County data; in its targeted market segmentation. It is because of this data that the strongest marketing techniques of the restaurant will be direct mailings and social media marketing. Lunch’s BBQ and Steakhouse Restaurant has also planned to have a Customer Loyalty and Gift Card Program to ensure customer satisfaction and build presence within the Orange County community.

Lunch's BBQ and Steakhouse Restaurant is committed and dedicated to ensuring that internal and external policies are thoroughly and rightly practiced. The goal is to motivate and support corporate and social responsibility through executing sound operating guidelines and procedures, employees and staff. Additionally, Lunch's BBQ and Steakhouse Restaurant operates on a systematic organization of its finances in accordance with the role of investment in such a venture as this. Moreover, Lunch's BBQ and Steakhouse Restaurant ensures that financial obligations and revenue are handled with the utmost care and execution given its newness in an historical marketplace.

(Appendix A & B omitted for preview. Available via download)

ALTERNATIVE STRATEGY PLAN

The following strategic changes will be implemented in the case of the presented business plan not being accepted as proposed.

Currently, Lunch's BBQ and Steakhouse Restaurant is a limited service dine-in restaurant. Breakfast and dinner options will be added to make it a full-service dine-in restaurant. Providing both breakfast and dinner options, will perhaps allow the business plan to be accepted as it will open up additional avenues of revenue and customer loyalty. 

An alternative city location may be proposed should the plan not be accepted. While rationale suggested that Lunch's BBQ and Steakhouse Restaurant would be quite profitable in the city of Irvine, other cities in Orange County or even Los Angeles County may need to be considered. Supplemental data will need to be analyzed, examined and mined for further determination on what alternate city could be the optimum choice.

Lavinsky (2013) cited that one of the major reasons business plans fail is due to financial funding. Investors often go directly to the financial area of the business plan. Areas that are poorly reasoned or show inconsistent penetration into that particular sector significantly damage a company's potential to be funded (pg.1). In the case of the business plan for Lunch's BBQ and Steakhouse Restaurant not being accepted, financial analysis would need to be re-examined to determine whether sales could cover startup costs. The financial area of the business plan would be tailored with a more coherent approach in terms of revenue overcoming startup expenses.

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