Blue Hut Restaurant Essay Example

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Blue Hut Restaurant Business Plan

Table of Contents

Executive Summary 3

Situation Analysis 3

Company 3

Collaborators 4

Customers 4

Competitors 4

Climate 5

The Vision and Mission Statement 6

Vision Statement 6

Mission statement 6

Aims and Objectives 6

Business Objectives 6

Personal Objectives 6

Marketing Strategy/Analysis 7

Market Needs and Requirements 7

Promotional 7

Customer Segmentation 7

High end singles 7

Happy couples 8

Tourists 8

Operational Approach 8

Organizational Structure 8

Management Team 9

Financial Analysis 10

Startup Costs 10

Projections 10

Projected Cash Flow 10

Legislative and Legal Requirements 11

Sales and Growth Forecast 11

Specialist Services/Products 12

Risk Assessment and Mitigation Strategies 12

Stakeholder Identification and Engagement Strategies 12

Measurement of Success 13

References 13

9Table 1: Personnel Plan Compensation

10Table 2: Start-Up Costs

11Table 4: Pro Forma Cash Flow

11Table 5: Annual Sales Forecast

12Table 6: Risk Assessment and Mitigation

Executive Summary

Blue Hut Restaurant is a sole proprietor business that offers a variety of foods and beverages. The situational analysis indicates the business would operate effectively and the business targets to operate between 6 am and 11 pm, and it will open from Monday to Saturday every week. The sitting capacity is 100 customers and targets different customers including tourists and single people.

The financial investments will be $450,000 will be sourced from personal savings, family, and friends support, and financial loan. The investment will be used to acquire the different equipment and raw materials.

The marketing and management strategy is premised on effective communication. The management team is allowed to create structures of supervising the establishment while the owner will play the manager role. However, most of the decisions will be made by the head of different sectors within the establishment.

Situation Analysis


Blue Hut Restaurant will have a 100 sitting capacity and will serve a variety of food. The healthy and home styled food will be offered including a variety of soft and healthy drinks. In addition, the restaurant will address the requirements of fast food customers through the provision of French fries. However, the target is providing healthy food and creates an image of the healthy restaurant.

The employees will be required to cultivate a culture of addressing the requirements of the customers within the shortest time possible. In addition, a culture of “wholesome hospitality” is championed to ensure the customers are satisfied. For example, treating the customers equally and addressing the different requirements and concerns of the customers is crucial in determining the success of the restaurant.

Blue Hut Restaurant will be open from Monday to Saturday. The operating hours will be between 6 am and 11 pm. The restaurant will offer breakfast, lunch and supper. In addition, outside catering will be provided, and part-time employees will be assigned to accomplish the requirements of outside catering. Diversification of products and services will be encouraged to reflect the continuous requirements of the customers.


Some of the important collaborators to achieve the objectives of the restaurant include distributors and suppliers. Effective engagement with the suppliers ensures the supplies are delivered within the right time and based on the right specifications. It also includes the governmental agencies and institutions that supervise the operation of the business. Engagement with the government and addressing the requirements of the government is important in preventing conflicts and misunderstandings.


The food industry is a large market, and the customers tend to like restaurants that provide healthy food. In addition, the customers need motivation behind the purchase, and the motivation will be the product diversity and healthiness of the product. The current structure is to target different customers based on the needs and requirements throughout the day. The theme will keep changing throughout the day because of the different product requirements of the day. For example, a diverse breakfast will be offered while for dinner, romantic dinner, business related dinner, and leisure dinner. The aim is to target the different customers, and the restaurant seen as a single shop for food diversity.


Competition is inherent, and the following are some of the competitors:

  • McDonald’s – the restaurant offers fast food and target take away customers. The restaurant has an international network meaning its competitive angle is based on the wide information about the restaurant. In addition, the restaurant has developed structures and systems to maintain the quality of products and services. The sitting capacity of the restaurant is 40 customers but has limited product diversity based on the time of the day.

  • Green Restaurant – offers healthy diet and sits twenty customers. However, problems of quality of products and services are common. In addition, the product diversity is limited, and it is distant from customers because its location is far from the busy business environment.

  • Midlands Hotel – it is the direct competitor of Blue Hut Restaurant. It provides services and products similar to Blue Hut Restaurant. However, the prices of the products are on the higher side compared to other restaurants. The Midlands Hotel has a sitting capacity of 125 customers.

  • Waterbuck Restaurant – it is a restaurant that also offers accommodation and alcohol. The restaurant has a sitting capacity of 60 while the bar section sits 70 customers. In addition, the customers are allowed to move between the restaurant and bar depending on the requirements of the customers. The product diversity including the accommodation facility provides Waterbuck Restaurant with a competitive advantage.


The climate (macro)-environmental affecting Blue Hut Restaurant are:

    • Social and cultural environment – the customers continue to appreciate the importance of health food. The restaurant is strategically placed to accomplish the requirement, and since alcohol is not offered, it is open to different customers including children. In addition, the product diversity enables different customers to sample the product and service offering.

    • Technological environment – the technological advancement has enabled the business to appreciate different payment methods. The restaurant also would offer free Internet and the Internet will also be used to market the restaurant. The technological capacities will be used to benefit the restaurant and also the customers in accomplishing different operational requirements.

    • Economic environment – the economy is stable, and consumers have disposal income. Therefore, the customers can easily acquire the products offered. Furthermore, the product diversity targets different economic levels of the consumers meaning the entire requirements of the customers are integrated into the pricing system.

    • Regulatory and political environment – the political situation is stable, and the regulatory environment encourages collaboration and discussions. The legal environment also has clear permits and licenses regime, which is easier to plan and acquire.

The Vision and Mission Statement

Vision Statement

  • Blue Hut Restaurant for the healthy way

Mission statement

  • To become the leading healthy food offering in the area, and to target the different requirements of the customers. Effective collaboration and community inclusion in product diversification and provision is important to sustain the requirements of the restaurant. The core values of integrity, accountability, transparency, and teamwork are championed by Blue Hut Restaurant.

Aims and Objectives

Business Objectives

The following are the business objectives:

  • Increase the number of units sold on monthly basis by 10%

  • The profitability relative to the entire expenses should be more than 60% e.g. 40% should be expenses for any sale

  • Increase the profitability of the business by 5% after every four months

Personal Objectives

The following are the personal objectives:

  • To ensure the profits/income obtained meets my entire expenses within the next 6 months

  • Create ten more branches across the country within the next five years

  • Create a strong system to automatically manage the business

Marketing Strategy/Analysis

Market Needs and Requirements

The customer behavior is changing, and diseases associated with unhealthy eating are increasing. It means that the customers need healthy food, which is also cheap. In addition, the customers need an environment that allows for the conducive eating environment and allows different customer segments to visit. Apart from the healthy food, some customers sometimes want to balance between fast food and healthy food. Therefore, offering these different products under one roof improves the image of Blue Hut Restaurant.


The Internet will be used as the main promotional strategy. It includes the creation of messages in which the food offered pictures are posted on the social media and the customers are requested to comment and forward the image. The targeted social media platforms include Twitter, Facebook, Snapchat, and Instagram. Continuous assessment of these social media platforms will be done to determine the most effective and additional social media platforms, which can be included. The door signage will also be used to attract the customers to the facility.

Customer Segmentation

High end singles

The high-quality product and the internal ambiance enable the singles to enjoy a healthy meal


It enables different family members to enjoy a variety of products. The products have been developed to target the different requirements of the customers. For example, ice cream and waffles are available for children while beef product varieties are available for the parents. Birthdays will also be held, which will also increase the number of customers.

Happy couples

The design of the establishment targets different customers meaning the couples are able to celebrate and enjoy their time together. It is attributed to the sitting design and lighting system, especially in the night.


The business is located in a high traffic area, and it is also a transit route for the tourist. The healthiness of the products and high-quality services attracts the customers to the facility.

Operational Approach

Organizational Structure

The following chart summarizes the organizational structure of Blue Hut Restaurant

Manager/Owner of the Business

Business plan

Assistant Manager (One of the Cashier)

Business plan  1

Business plan  2Business plan  3Business plan  4

Head Chef



Business plan  5Business plan  6

Preparation chef


Business plan  7

Business plan  8

Management Team

The management team brings together the chef, head waiter, and accountant. These individuals collaborate with each other in determining the direction of the restaurant. In addition, these individuals will be allowed to manage the business in the absence of the owner of the establishment.

    1. Personnel Compensation Plan

Personnel Plan Compensation

Year 1 ($)

Year 2 ($)

Year 3 ($)

General Manager/Owner




Assistant Manager/Cashier

Line Cooks

Prep Cooks

Catering Employees

Marketing Team

Table 1: Personnel Plan Compensation

Financial Analysis

Startup Costs

Start-Up Expenses

Amount ($)

Name creation and logo

Legal documents e.g. permits

Marketing costs

Building improvements

Fittings and fixtures

Working Capital

Total Expenses

Start-Up Assets


Stainless work stations (varieties)

Food processor

Ice machines

Kitchen utensils and wares

Shelving system

Protection Systems

Cooking system

Cash register


Total Start-Up Cost

Table 2: Start-Up Costs


Projected Cash Flow

Pro Forma Cash Flow

Year 1 ($)

Year 2 ($)

Year 3 ($)

Cash Received

Cash from Operations

Cash Sales



Cash from Receivables

Subtotal Cash from Operations




Additional Cash Received

Sales Tax

Owners Investment

Subtotal Cash Received





Expenditures from Operations

Cash Spent

Bills Paid

Subtotal Spent on Operations




Additional Cash Spent




Sales Tax




Loan Payment

Subtotal Additional Cash Spent

Subtotal Expenditures




Net Cash Flow

Cash Balance

Table 4: Pro Forma Cash Flow

Legislative and Legal Requirements

Adhering to the regulatory and legislative requirements is important. Blue Hut Restaurant will obtain the appropriate permits and licenses. The restaurant would continue updating the legal requirements to fulfill the operating and management needs.

Sales and Growth Forecast

Annual Forecast

Year 1 ($)

Year 2 ($)

Year 3 ($)

Food and Beverage Revenues



Additional Revenues


Total Sales



Controllable Costs

Total Prime Cost

Controllable Profit

Table 5: Annual Sales Forecast

Specialist Services/Products

Blue Hut Restaurant specialist services include accounting and legal requirements. These specialists will be assigned duties based on operational requirements and needs. For example, accountants will update the financial statements while the legal representative will provide advice regarding operational requirements.

Risk Assessment and Mitigation Strategies



Obtaining the appropriate funding is possible, but risks exist on whether the amount will be enough to operate the business

Highly unlikely

Continuous engagement with funders and other financial providers to address the requirements of funding

Getting the right personnel and motivating the employees to fulfill their obligations

Effective requirement and create a conducive working environment. In addition, training and development will be incorporated into the operational requirements

Hazards and risks to the structure, fittings and fixtures

Insurance will be taken, and operational requirements will be capitalized to support the requirements of the facility

Quality and quantity based on the expectations of the customers


Effective procurement and inventory control to ensure quality and quantity is championed

Table 6: Risk Assessment and Mitigation

Stakeholder Identification and Engagement Strategies

The following are some of the stakeholders:

  • Customers – their satisfaction is important and continuous engagement are important. The restaurant should provide a variety of products and services to fulfill the requirements of the customers.

  • Government and institutions – the government, formulates and implements legislative requirements and adhering to the legislation are important to the Blue Hut Restaurant.

  • Suppliers – the supplies should be fresh and should be delivered on time. Effective communication with the suppliers is crucial in ensuring supply requirements are addressed accordingly.

  • Specialists e.g. accountant and legal advisor

  • Employees

Measurement of Success

Determination of business success is important to guide the direction of the business. The following are approaches to measuring the success and continuation of the business to determine whether corrective or mitigation measures can be incorporated into addressing the requirements:

  • The biweekly and monthly records will be reviewed to determine the sales

  • Financial statements will be reviewed through determination of ratios to ensure revenues are positively reflected in the business

  • The amount of sales will be analyzed

  • The effectiveness of the employees and suppliers will be used to determine whether the suppliers and customers work effectively


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Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002). Essentials of entrepreneurship and small business management. Upper Saddle River, NJ: Prentice Hall.