Marketing Plan

Marketing Plan: Fusion Buffet House Sdn. Bhd

MARKETING PLANFUSION BUFFET HOUSE SDN BHD

Shop No. 37, 25A, Jalan Kenari 5, IOI Boulevard

Puchong Jaya

Puchong, Selangor, 47100

+60356112344

[email protected]

OWNERS:

Turas Adnan Arefin Neelan A/L Genisan Cheok Kem Hoo

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ContentsI. Executive Summary...................................................................................................2II. INTRODUCTION:....................................................................................................3

A. Mission Statement..................................................................................................3B. Company Goals and Objectives..................................................................................3C. Legal form of ownership..........................................................................................4

III. Business Concept:..................................................................................................4A. Product Offered.....................................................................................................5B. Competing Products................................................................................................8C. Customer Demand..................................................................................................8

IV. Competitive Analysis..............................................................................................9V. Operations Plan.......................................................................................................12

A. General Requirements...........................................................................................12B. Staffing Requirements...........................................................................................14C. Business Location.................................................................................................15D. Facilities and Equipment........................................................................................17

VI. Marketing Plan....................................................................................................18A. Target market(s)...................................................................................................18B. Pricing...............................................................................................................19C. Promotion..........................................................................................................19D. SWOT Analysis...................................................................................................20

VII. FINANCIAL VIABILITY......................................................................................23VIII. REFERENCES...................................................................................................26IX. APPENDICES........................................................................................................27

A. Appendix A: The Building......................................................................................27B. Appendix B: Proposed Buffet Table..........................................................................28C. Appendix C: Quotation from CKE Marketing SDN BHD................................................29D. Appendix D: Quotation of Restaurant Furniture, Other Equipment & Other Costs..................32E. Appendix E: Start Up Expenses................................................................................34F. Appendix F: Monthly Expenses................................................................................36G. Appendix G: Names of Suppliers/Distributors/Contractors..............................................37

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I. Executive Summary

Fusion Buffet House Sdn Bhd - "a buffet only restaurant," unlike a typical restaurant, will

provide a unique combination of excellent food at value pricing with a fun and entertaining

atmosphere. Fusion Buffet House is the answer to an increasing demand. The public (1) wants

value for everything that it purchases, (2) is not willing to accept anything that does not meet its

expectations, and (3) wants entertainment with its dining experience.

In today's highly competitive environment, it is becoming increasingly more difficult to

differentiate one restaurant concept from another. Fusion Buffet House does this by being the

only buffet concept that features Malay traditional food for one low price. We will be serving top

quality food on the premises and seasoned to perfection. No other national chain has tapped this

market.

This restaurant business plan is prepared to obtain financing for the initial launch of this concept.

The financing is required to begin work on kitchen equipment, restaurant equipment, price

quotations for all equipment and purchases, site selection, and to cover expenses in the first year

of business.

The financing, in addition to the capital contributions from the owners and the Maybank Loan,

will allow Fusion House Buffet to successfully open and maintain operations through year one

and the continuous years. The initial capital investment will allow Fusion Buffet House to

provide its customers with a value driven, entertaining dining experience. A unique, mid-scale,

innovative environment is required to provide the customers with an atmosphere that will induce

middle Malaysia to bring family and friends to dine and socialize. Successful operation through

year one itself will provide adequate cash flow to be self-sufficient in year two-year five.

The business plan below was planned in such a way that there are hardly any loopholes and the

information is up-to-date for accuracy.

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II. INTRODUCTION: After several brainstorming sessions on ideas of what kind of business to open up, we narrowed

down to the restaurant business. But not just a normal restaurant business but a buffet only

restaurant where we will serve food buffet style for limited hours in a day. We have picked out a

potential location where we will rent out two floors monthly. Our restaurant is to serve strictly

lunch and dinner at their respective times. Lunch hour starts from 11.30am-3pm and Dinner

starts at 5.30pm-11pm and we will operate 6 days a week, we’ll be off on Sundays. We decided

to open up a restaurant business because Malaysians love food, and most of them do not cook at

home thus the success of the restaurant business in Malaysia. There are several types of

businesses in Malaysia; the normal stall type restaurants popularly known as mamak stores who

operate on a 24hr basis, fast food restaurants, hotel restaurants and fine dining. However we are

not entering the fine dining level but something better than mamak but less than normal class

buffet restaurants (hotel restaurants). Our cuisine will be the traditional Malay food, Chinese

food, Indian food and somewhat extent of continental dishes. This plan will make sure that every

aspect is planned in such a way that there will be no loopholes to the plan or success of the

business. Looking at the number of restaurants in Malaysia it is easy to see that restaurant

business in Malaysia is quite successful compared to other businesses. And it is generally known

that Malaysian love food, at the same time they do not want to cook at home so they are always

out eating from somewhere hence the success of the restaurant businesses in Malaysia.

A. Mission StatementTo ensure that each guest receives prompt, professional, friendly and courteous service. To

maintain a clean, comfortable and well maintained premises for our guests and staff. To provide

at a fair price - nutritional, well-prepared meals - using only quality ingredients. To ensure that

all guests and staff are treated with the respect and dignity they deserve. To thank each guest for

the opportunity to serve them again. By maintaining these objectives we shall be assured of a fair

profit that will allow us to contribute to the community we serve.

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B. Company Goals and ObjectivesAs we have penetrated through the current market and after achieving sustainability we intend to

open up branches around Malaysia one branch being more luxurious than the other as we wish to

enter the fine dining level. This is only prior to success and sustainability in the current market.

We are looking at this plan in the coming five years, for the first five years we wish to remain at

the average buffet restaurant level where our main aim is to create a brand image. After the brand

has been created and people actually are well known with our business, we shall plan to start

serving breakfast from 6.30am-10am and still follow the buffet concept.

C. Legal form of ownershipThree of us have been friends for quite some time now and have earned quite some money. Now

our plan is to invest equally and make sure we put our money into action and double it several

times. Since we are three and we all are aimed at making a profit our business will be a private

limited company. Where three of us will be the equal shareholders of the business.

III. Business Concept: Our concept is very simple and similar to normal buffet restaurants; it’s just the pricing that is

going to make us different. The operating hours will be limited as we are only going to offer

lunch and dinner. Lunch begins at 11.30am-3.00pm and Dinner begins at 5.30am-11pm and

operates from Monday to Saturday with one day off for the employees. We will only deal with

Halal foods, this is to respect our fellow Muslim customers and respect the environment they will

be eating in. The restaurant will capacitate 120 people in both top and ground floor. In future we

have a plan on opening up a bar in the top floor where the customers can drink and smoke, for

the non-smokers and drinkers they can remain at the ground floor as it will not serve alcohol or

allow anyone to smoke from there.

We have special concessions for children below 12 years as they will only need to pay half the

price for the food. For recurrent customers we will provide 25% discount of which we will

provide a sticker where they will put it on any of their cards and while asking for the bill they

need to show the sticker to receive the discount.

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A. Product OfferedWe are planning to provide various cuisines such as;

Malay Food

Chinese Food

Indian Food

Continental Food

We want to offer the above

cuisines because they are eaten

by the three major races in

Malaysia. We chose the buffet

concept because it is cheaper to

operate because of the limited

operating hours and the

discounts we will receive from

buying in bulk. Here customers

can feel free to eat however

much they want without any

limit, usually mamak restaurants

do not offer so much quantity

and also the fine dining

restaurants do not offer so much

quantity of food leaving some

customers unsatisfied. Here for

one price the customers can eat

without limit and not just one

kind of dish but a variety. We try to maintain the all the courses of food; appetizers, main course

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and dessert for a proper balanced diet. The food will be presented in a presentable manner that is

eye catching so that the customers are impressed. This will be one of the ways in which we can

differentiate ourselves from the normal way the mamak stalls serve their food. The customer will

be able to know that this restaurant is strictly a buffet style restaurant. Since the name of the

restaurant is Fusion buffet house, we will make sure that the food is presented with a fusion

theme to suit the name.

The dishes that will be served include;

Malay Food;

o Nasi Lemak

o Nasi Impit Kuah Kacang

o Nasi Goreng Kampung

o Satay

o Ayam Curry, Daging Curry & Kambing Curry

o Roti Canai

o Laksa Lemak

o Rojak

Chinese Food;

o Hokkien Mee

o Char Kway Teow

o Hainanese Chicken Rice

o Yong Tau Foo

o Wantan Mee

o Singaporean Mee Hoon

o Chinese Fried Rice

Indian Food & Continental Food;

o Roast Chicken

o Biryani Rice

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o Thosai

o Idli

o Capathi

o Appam

o Vadai

Dessert

o Ais Kacang

o Chendol

o Fruit Salad

Malaysia Cuisine (2010) Wikipedia, Available: http://http://en.wikipedia.org/wiki/Malaysian_cuisine Last accessed: 27th September, 2010

*NB: The above food will be accompanied by a glass of water (bottomless).

We will have a separate drink’s list that we will sell separately with different prices

DRINK’S LIST:

Carbonated Drinks; Coke, Sprite, 100 Plus, F&N Grape, Orange. RM4.50

Ice Lemon Tea RM 4

Coffee RM 5

Tea RM 5

Fresh Juices; Orange, Mango, Apple, Water Melon, Carrot, HoneyDew. RM 6

Mock tail RM5

Hot Chocolate RM 5

Float RM 5.50

Lemonade RM 6

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B. Competing ProductsOur competitors will be other buffet restaurants, hotel restaurants and some fine dining

restaurants. At some point even the mamak stalls and fast food restaurants will be our

competitors to some level because they have the potential to take away our customers since they

are cheaper and faster in serving the food. Busy customers will always prefer to eat at mamak or

fast food chains as they always want to rush back to work.

C. Customer DemandFor a restaurant, the customer will have several demands before reaching the restaurant. For one

cleanliness of the restaurant. They would want the restaurant to be sparkling clean and also the

cutlery to be clean with no spots on them. The cutlery itself should be well presented; therefore

buying expensive good quality cutlery from the usual cutlery will be a great idea to suit the

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expectations of the customers. With a buffet style restaurant, the customers would want their

used plates to be cleared immediately and replaced with new clean ones; this is where our

waiters are put into effect. The waiters will make sure that every after the customer finishes a

meal and goes for another, the plate will be replaced so that with a new one. This is part of the

great service we will provide making sure that the place remains clean and the used plates are

replaced immediately and all this will be presented with a smile from the waiters making sure

that the customers are happy not only with the food but also the waiters. Customers will

definitely expect for a variety of food and that is what we are going to do; providing a variety of

foods from the three main cuisines Malay, Chinese and Indian. So they are getting enough

variety with enough taste.

IV. Competitive AnalysisThere are several competitors;

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Source: http://food.malaysiamostwanted.com/food/buffet

Restaurants listed above are the buffet restaurants in Malaysia ranked by popularity. Each

business here is specializing in one cuisine and most of them are Japanese, Steamboat, Chinese,

Korean, Local and Western. However there is only one buffet restaurant Jogoya providing local

cuisine and all others are providing the rest of the types, this is where we expect to get customers

since we are providing the local cuisines in buffet style. Since we are located at Puchong, we are

going to get a greater advantage with the geographical location because we will be the second

buffet restaurant in that location taking the advantage of customers who are at Puchong. Our

competitor at Puchong is Restoran Shabu Shabu, which is specialized at steamboat and Japanese

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source:%20http://food.malaysiamostwanted.com/food/buffet


food. Our advantage here is that not everyone eats Japanese food or steamboat but most people

eat the local cuisine and that’s how we expect to get customers off the competitors.

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V. Operations Plan

A. General RequirementsBefore starting our business, we have to apply for a business license first. Business

license is a vital aspect for anyone who is planning to start a business as without the license

nothing will be possible. Since our Restaurant going to be a partnership business, we are

applying for a partnership license that is registered under the Registration of Businesses Act

1956. Firstly we have to obtain prior approval from Suruhanjaya Syarikat Malaysia (SSM) for

the proposed business name under the Business Act. After getting the approval we have to fill up

Form A which is for registration of new business and shall be made in the prescribed form and

state the important details such as the name of the business, the nature of the business, the date of

commencement of business, the address of the place of business, the particulars of owners of the

business and the partnership agreement in the presence of the Authorized Officer as stated in the

form with the registration fee of RM60.00. On the other hand, the Business Registration

Certificate must be renewed at any nearest office of the Companies Commission or sent via a

post office with online services after Form A1 (Renewal of Business Registration Form) is

completed by filling up details such as business details, status of the business, registered changes

and the signature of the owner or one of the partners. Besides that, the application needs to be

made within 30 days before the expiry of the certificate and in order to reduce the time and work

plus we are planning to renew our registration every 5 years. Suruhanjaya Syarikat Malaysia (2008) Companies of Commission Malaysia, Available: http://www.ssm.com.my/en/services_registration.php Last accessed: 13th September, 2010

Once everything is complete as stated above we have to submit the application for registration

personally at the nearest office of the Companies Commission such as Majlis Perbandaran or

send via post with the attachment of documents such as Copy of Identity Card, Copy of

Partnership Agreement (if available), The Permit, License and the Letter of Authority or Letter

of Support from another agency (if available). While submitting we need to pay about RM2,

300.00 inclusive of company secretary cost. Once the license is approved we have to get the

S&P, some pictures and drawing of our shop and go to relevant authority such as Majlis

Perbandaran Subang Jaya (MPSJ) to apply for the premise license. During this process, there will

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be some officers from the Ministry of Health and Safety come and check our premises before

approving the license .Once it is approved, the MPSJ will issue us with the official license which

takes about 6 months.

We are also applying for a Maybank Musharakah Mutanasiqah loan from Mayban since we do

not have enough capital to start up the business. We are planning to apply for a bank loan worth

RM350,000. In order to apply for the bank loan we have to prepare a business plan. Once the

business plan is done than we have to submit a duly completed loan application form together

with the business plan and all relevant documents as required by the financial institutions such

as:

• Business Registration

• Business License

• Income Tax returns of the business

• Photocopy of IC of partners/proprietor

• 6 months current account statements of other financial institutions

• Disclosure of all borrowings with other financial institutions together with letters of offer

• Business & cash flow projection

• Major suppliers and buyers list

• Ageing lists of business creditors and debtors

• Company profile/business plan/director’s profile

• Feasibility report (for project financing and new ventures)

• Copy of relevant sale & purchase agreement and relevant land title proposed as collateral

• Documents showing proof of ownership of other collateral proposed

• Relevant valuation report

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• Documents to prove other sources of income

• Information on related business entities

• Invoices and commercial documents

• Completed contracts and potential contracts

• Bank borrowings of the group

After submitting all of the required documents, the financial institution will assess the loan

application. In assessing the bank loan application, the financial institution would look for

certain basic requirements which are summarized as follows:

• The viability of your business

• Whether the risks are acceptable based on the lending guidelines of the financial institution

• Your capacity to repay the loan

• Whether your loan is for business development

• Your credit history with the financial institution

Once the financial institution approves our loan, they will issue a letter of offer which will state

the terms and conditions (T&C) under which the facility will operate such as the terms for

repayment and payments in default, the loan granted is subject to periodical review and will be

revised at the discretion of the financial institution, submission of accounts and requirements of

the borrower when there are changes in the nature of business. Maybank Musharakah Mutanasiqah Loan (2010) Maybank, Available: http://www.maybank.com.my/loan/ Last accessed: 20th September, 2010

B. Staffing RequirementsWe are starting off as a small restaurant, and we are operating as a buffet restaurant so we will

not require so much of staff at the business. We are looking at employing about 10 workers of

which two will be chefs, two commis, one head manager, 4 waiters one cleaner. We will need

one head chef with a minimum qualification of a Degree in Culinary Arts with 3 years of

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experience with a co-chef with a minimum qualification of a Diploma in Culinary Arts, two

commis with a qualification of SPM, the head waiter/manager of the restaurant with a

qualification of Degree in Hospitality or Hotel Management with experience of one year along

with 4 waiters who need just SPM, the cleaner does not require any qualification except that

he/she is required to speak English.

On the other hand management, accounting & finance, administration can be done by the three

shareholders who have had a Degree in Business Studies. This will help us put our knowledge to

work and save the costs of hiring any extra expertise to handle the business.

The employees will go through a one month training session before they are actually recruited.

The selected employees will need to show their skills at work for a month before they are

actually recruited. This will be done to avoid any working discrepancies as laying-off workers

while the restaurant is open for business will not be entertained and causes extra burden on the

day-to-day operation due to the unexpected recruitments. We will also keep two extra slots open

for the waiters where students who have internship can come and join the business; this will help

us explore new talents as the students will share their knowledge with the business for greater

success.

C. Business LocationIn order to make a business successful, we entrepreneurs must always take into consideration the

aspects of choosing a potential location. This is one of the important decisions when starting a

business. We have to locate the business in a strategic and attractive place in order to attract

more customers. We have chosen a perfect spot for our Buffet restaurant which is located at IOI

Boulevard a new building at Puchong Jaya(See Appendix A) which will attract massive number

of customers since Puchong area has a population of 400,000 people. Puchong is also near

Bandar Sunway, Subang Jaya, Petaling Jaya, Bukit Jalil these are also popular places in the heart

of Malaysia that can lure more customers to our restaurant. The main reason why we choose this

place is because it is convenient and a well-known spot for locals and foreigners as it is

strategically located opposite IOI shopping mall beside Lebuhraya Damansara Puchong (LDP

Highway) and surrounded by IOI Business Park within the Puchong financial hub. Having

situated at this prime area, it is also well connected with Pusat Bandar Commercial Centre,

Bandar Puteri PFCC, TESCO & GIANT and other business hubs in KL, PJ, Subang Jaya, Shah

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Alam, Putrajaya and Cyberjaya via several highways. Besides that, for those customers who

drive to our restaurant doesn’t have to worry about finding the place as there is swift access

from anywhere in the Klang Valley, Putrajaya and Cyberjaya via Lebuhraya Damansara-

Puchong (LDP), KL-Shah Alam Expressway (KESAS), Puchong-Sg. Besi (Bukit Jalil) Highway

and North-South Expressway Central Link. Besides that, there won’t be any hustle to find a

parking as there are more than 1,000 parking bays across three levels of parking bays. On the

other hand, for those who want to avoid the traffic jam, they can always take a LRT to our

restaurant as there is a new proposed LRT station nearby that gives our restaurant more access to

potential customers. Kua, A (2010) iProperty.com iProperty.com, Available: http://http://www.iproperty.com.my/propertylisting/447772/IOI_Boulevard,_Puchong_Jaya_Office_ForSale Last accessed 26th September, 2010

Below is a map of the place we are located;

Restaurant Address;

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Shop No. 37,25A, Jalan Kenari 5, IOI Boulevard, Puchong Jaya

Puchong, Selangor, 47100

D. Facilities and EquipmentWe are starting the business small with just two floors and not much money to invest so we are

not going to buy full load of equipment, we are going to keep low on the equipment and not go

for something luxurious or expensive. As our starting capital is only RM500,000 in total. But we

will make sure that all the basic and needy equipment are there to run the daily restaurant.

We contacted a supplier that supplies kitchen and restaurant equipment called CKE

MARKETING SDN BHD, they are giving us 23% discount on the quotation provided we buy all

the following equipment from them. Also they have also offered us to fix the equipment in the

kitchen for a price of RM18,000. (Refer to Appendix C)

Restaurant furniture and other equipment along with other costs were quoted from different

distributors and suppliers. (Refer to Appendix D)

Other Facilities;

Entertainment

o Astro –Full Sports Package

o Fusion Music Theme

Wireless Internet

o Available during the operation hours

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VI. Marketing Plan

A. Target market(s)Target market is the market segment which a particular product is marketed to. It is often defined

by age, gender and or socio-economic grouping. Besides that target market does also plays a

major role in determining the success of a business where marketers must carefully choose their

target market upon their products or services. For our buffet restaurant we have chosen families,

white collar workers and teenagers as our target market. The main reason for choosing family as

our target market is because of the environment around our restaurant. As mentioned earlier our

restaurant is located at a strategic area where a lot of people spend their time with their family

members and normally family members will always try to find a restaurant where they can have

lunch or dinner together as a family with the feel of being at home. Taking that into

consideration, we have set up family tables in our restaurant where they can sit n enjoy the foods

together with a pleasant environment. Also our restaurant is also located in the middle of

business hub and offices where the workers will always eat from outside than bringing foods

from home which was one of the reasons for us to choose the white collar workers as another

target market for our business. Apart from that, white collar workers will normally find foods

that are easy to serve fast as to keep pace on their busy schedule and as for that our foods are

always there as they can choose their foods and eat which saves their time from waiting for the

orders to come as in other restaurants. With workers coming in, they usually come in groups or

have lunch meetings at restaurants; this is one of the ways we will get more customers for the

restaurant. Besides that, teenagers are also in the list of our target market where this is because

many of the teenagers come to IOI Mall for shopping and movies and normally from there they

would find a good place to eat with their beloved ones. Taking this in to consideration we have

also set up tables for couples which is located side of our restaurant and the main reason for this

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is because to give them the pleasure of a romantic feeling from the views they can see from the

restaurant.

B. PricingPricing a product or service plays a major role in a success of a business. No matter what type of

product a marketer sells, the price that they charge their customers or clients will have a direct

effect on the success of your business. Though pricing strategies can be complex, the basic rules

of pricing are straight forward where all prices must cover costs and profits, the most effective

way to lower prices is to lower the costs, prices should be reviewed frequently to assure that they

reflect the dynamics of cost, market demand, response to the competition, and profit objectives

and lastly prices must be established to assure sales. Apart from that, before setting a price for a

product, a marketer must have to know the costs of running the business and if the price of the

product or service doesn't cover costs, the cash flow will be cumulatively negative which will

ultimately fail the business. We must also determine how much it costs to run a business,

including property, equipment leases, loan repayments, inventory, utilities, financing costs, and

salaries and also to add the costs of markdowns, shortages, damaged merchandise, employee

discounts, cost of goods sold, and desired profits to your list of operating expenses before setting

a price for a product or service of our business. Taking all into consideration we have planned to

set up the price of RM35++ excluding 5% of government tax and also 10% of service charge.

Besides that we also charge separate prices for carbonate drinks, coffee, teas and other drinks

apart from water.

C. PromotionPromotion is defined as communicating with the public in an attempt to influence them toward

buying a product or services of a business. Since promotion is an important aspect of a business,

we have chosen the four major promotion mix in order to establish our business. The first

promotional mix that we apply was advertising where we advertised our restaurant through some

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of the mass media such as radio, newspaper and magazines. We selected to radio advertise our

business through Hitz.fm because it is a well-known radio channel which is listened by all races

in Malaysia. For newspaper we selected The Star as it is the best-selling newspaper in Malaysia

and also the favourite among tourists and for the magazines we have chosen the Malaysian

Tourism Magazine as to attract more tourists to our restaurant as they can enjoy the variety of

Malaysian foods in just one place. Apart from that, we do also post pictures of the restaurant in

some blogs and websites like Facebook and Twitter via Internet since it has increased the options

that allow customers to provide quick feedback and reaches a wider customer base.

Besides that, we do sales promotions to in order to encourage and attract more customers to our

restaurant. Some of the sales promotions were like giving away free coupons which can be

issued inside the magazines that we had advertised.

D. SWOT AnalysisThe SWOT analysis is a key factor in the overall success of an organization’s strategic marketing

plan. It identifies the strengths and weakness of the business entity as well as the opportunities

and threats. The strengths of a business can be defined as those actions, activities or

characteristics that elevate the business entity above its competition. The main strength of our

restaurant is that we offer quality and variety foods to customers using the recipes from the main

three cultures of Malaysia which consists of Malays, Indians and Chinese. Talking about variety

of foods. The restaurant offers 25 dishes which are cooked by experienced and skilled chefs

which will again attract more customers to our restaurant to try out those delicious foods.

Besides that, the location of our restaurant itself is a major advantage for us because it is located

in a prime location and targets middle class customers. This prime location helps our restaurant

in setting up a price penetration strategy and as a result of which we can increase our profits.

Apart from that, we have little competitors who offer only Malaysian foods to the customers,

where in our restaurant we only prepare Malaysian foods which give us an advantage of

attracting foreign customers who loves to try Malaysian dishes. Lastly, besides being culturally

rich in dishes. The restaurant is quite culturally rich in providing equal employment opportunity

to its staff where it has all the races working in and outside the kitchen.

WEAKNESSES

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For each strength business entities have, a similar and sometimes equal weakness exists. The

goal is to identify, minimize or neutralize the weaknesses while maintaining the strengths. The

weaknesses our restaurant has is that lack of employee training where the waiters are all with a

minimum SPM qualification and they might not have the manners and ethics as the well trained

waiters and training them will be expensive and time consuming. Apart from that, since we are

catering the same dishes every time, we might lose customers to the competitors. Talking about

competitors, we have plenty of competitors who are in the same field as our buffet restaurant

who can easily snatch away our business through new ideas and innovations anytime. Beside

these weaknesses, price could also be a weakness where customers might move to other buffet

restaurants who offers similar foods but with cheaper prices such as mamak stalls and other

restaurants. As mentioned earlier, weaknesses are not permanent, it can be changed into strengths

if a marketer can identify and acts first to minimize it before the competitors do because they

might use these as their opportunities.

OPPORTUNITIES

Opportunities also relate to furthering the success of an organization through a meticulously

outlined and implemented strategic plan. The opportunities that our restaurant has are, opening

more branches all over Malaysia once it has created its brand image among their customers.

Besides that, we might also venture in delivery services and outside catering for variety of

occasions such as Hari Raya, Deepavali, Chinese New Year, Christmas, birthday parties and

many more. Apart from that, we might also promote ourselves by sponsoring free foods for

special events such as gaming tournaments during non-peak business timeframes, mid-week and

optional holidays in order to brand the image of our restaurant. However, we are also considering

into merging with the strengths of other complementary businesses, such as contracting with a

reputable local Internet Service Provider (ISP) and increasing its global presence by through

offering special coupons for on-line customers.

THREATS

Threats are generally considered those external factors that are most likely to negatively affect a

business entity. The threats for the restaurant might arise when there is significant increase in

material costs due to global increase in demand or production cost increases. Threats for our

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business might also come from the activities of the competitors who compete with us when they

tag low prices for their foods with improved technology and market availability. One manner of

addressing threats is to contrast the threat against strength, for example, the threat of a new

competitor entering the field brings the possibility of new inventory or increased variety. The

strength of the business that is following a strategic plan likely includes partnering with

complementary business entities that market the business’ variety, availability and reputation.

These strengths aid in offsetting new competition, which must first be considered established in

the industry, before they can expect to grab a share of the market.

Finally, when a SWOT analysis is completed, part of the strategic plan suggests that Strengths be

contrasted with Weaknesses, Weaknesses be contrasted with Opportunities, Opportunities be

contrasted with Threats and Threats be contrasted with Strengths. While the strategic plan should

be developed to capitalize on the Strengths with Opportunities, the business entity must maintain

visibility on its Weaknesses and Threats.

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VII. FINANCIAL VIABILITYThe following is our projected cash flow for one year;

Cash Flow Forecast (12 Months)

(RM) Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Total Item EST

Cash on Hand (beginning of month) (1)

500,000 95,015 50,560 44,105 37,650 31,195 24,740 18,285 11,830 17,375 22,920 28,465 882,140

0

CASH RECEIPTS 0

Cash Sales 0 40,000 78,000 78,000 78,000 78,000 78,000 78,000 90,000 90,000 90,000 90,000 868,000

TOTAL CASH RECEIPTS 0 40,000 78,000 78,000 78,000 78,000 78,000 78,000 90,000 90,000 90,000 90,000 868,000

Total Cash Available (before cash out)

500,000 135,015 128,560 122,105 115,650 109,195 102,740 96,285 101,830 107,375 112,920 118,465 1,750,140

CASH PAID OUT

Gross Wages1 15,600 15,600 15,600 15,600 15,600 15,600 15,600 15,600 15,600 15,600 15,600 15,600 187,200

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FUSION BUFFET HOUSE SDN BHD


Kitchen Equipment & Fittings(See Appendix C)2

110,000 0 0 0 0 0 0 0 0 0 0 0 110,000

Restaurant Equip, Other Equipment, & Other Costs(See Appendix D)3

190,000 0 0 0 0 0 0 0 0 0 0 0 190,000

One Time Payments + Deposits4 6,000 0 0 0 0 0 0 0 0 0 0 0 6,000

Miscellaneous Expenses for 1st Month

10,700 10,700

Supplies for the month5 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000

Advertising6 12,000 0 0 0 0 0 0 0 0 0 0 0 12,000

Rental 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000

Promotion7 5,000 0 0 0 0 0 0 0 0 0 0 0 5,000

Utilities8 0 13170 13170 13170 13170 13170 13170 13170 13170 13170 13170 13170 144,870

Other Monthly Exp 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

SUBTOTAL 386,300 65,770 65,770 65,770 65,770 65,770 65,770 65,770 65,770 65,770 65,770 65,770 1,109,770

Loan Installment9 18,685 18,685 18,685 18,685 18,685 18,685 18,685 18,685 18,685 18,685 18,685 18,685 224,220

TOTAL CASH PAID OUT 404,985 84,455 84,455 84,455 84,455 84,455 84,455 84,455 84,455 84,455 84,455 84,455 1,333,990

Cash Position (end of month) 95,015 50,560 44,105 37,650 31,195 24,740 18,285 11,830 17,375 22,920 28,465 34,010 416,150

NOTE:1 See Appendix F2 See Appendix C3 See Appendix D4 Licensing Fee 1000, Registration 3000 and Deposit Payments 20005 Includes Suppliers for a food and ingredients6 See Appendix E

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7 See Appendix E8 See Appendix F9 Loan

350,000(PVIFA 5%, 15years)

350,000(10.380) 3,363,300

Each year 224,220

Each month 18,685

Judging from the above cash flow forecast, we are still positive on the cash flow. Even if the sales do not go as projected we still have

a positive cash flow due to the extra money we have saved from the original investment, this extra money will help us cover any short

comings in the business cycle. To conclude the financial projection we are better off in the first year of operation and we do not have

any negative cash flows.

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VIII.REFERENCES Suruhanjaya Syarikat Malaysia (2008) Companies of Commission Malaysia, Available:

http://www.ssm.com.my/en/services_registration.php Last accessed: 13th September, 2010

Maybank Musharakah Mutanasiqah Loan (2010) Maybank, Available: http://www.maybank.com.my/loan/ Last accessed: 20th September, 2010

Kua, A (2010) iProperty.com iProperty.com, Available: http://http://www.iproperty.com.my/propertylisting/447772/IOI_Boulevard,_Puchong_Jaya_Office_ForSale Last accessed 26th September, 2010

Malaysia Cuisine (2010) Wikipedia, Available: http://http://en.wikipedia.org/wiki/Malaysian_cuisine Last accessed: 27th September, 2010

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IX. APPENDICES

A. Appendix A: The BuildingThis is where the restaurant will be located. The shop is inside and consists of two floors.

Source: http://thinkproperty.com.my/realestate/Forums/Locations-or-specific-developments/ReIOI-Boulevard.html

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source:%20http://thinkproperty.com.my/realestate/Forums/Locations-or-specific-developments/ReIOI-Boulevard.html

source:%20http://thinkproperty.com.my/realestate/Forums/Locations-or-specific-developments/ReIOI-Boulevard.html


B. Appendix B: Proposed Buffet Table

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C. Appendix C: Quotation from CKE Marketing SDN BHDEquipment QTY Unit Price(RM) Total

Price(RM)

Regent Oval Chafer 50 54 2700

8 Qt. LaFayette Sculptured Chafer 20 70 1400

Divided Food Pan 10 12 120

Deluxe Punch Bowl, 13.5 Qt. 3 5 15

2-Tier Round Plate Stand 2 43 86

7" Diameter, 20 oz. Ceramic

Bowl

200

2.3 460

Electric Water Pan 1 340 340

12" Solid Spoon 250 0.05 12.5

12" Slotted Spoon 250 0.05 12.5

12" Cake Server 3 1.2 3.6

9 1/2" Pastry Tong 3 0.8 2.4

Fork-4 prong 3 3 9

60" 8 Burner Range with 36"

Griddle/Std/Man

2

6900 13800

Economy Gas Floor Fryer 2 3500 7000

Commercial Refrigerator 2 6780 13560

Commercial Microwave 2 2500 5000

Upright Freezer 1 7300 7300

Spoons, Forks &

Knives(Flatware)

1000

3.4 3400

Plates, Bowls 500 4 2000

Glass Ware 200 2.15 430

Cups with Saucer 200 3 600

Champion Dishwasher 1 4350 4350

Plate Dispenser Hot 1 1230 1230

Cup Dispenser 2 670 1340

Ice Machine 1 640 640

Stainless Tables 4x4 4 320 1280

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Sinks 4 4 400 1600

Mixer 1 1340 1340

Soup Cooker 1 340 340

Slicer Multi-Purpose 1 450 450

Meat Grinder 1 580 580

Immersion Blender 1 670 670

Expresso Machine 1 340 340

Food Processor 3 400 2000

HOLMAN MINIVEYOR

OVENS

2

1300 2600

Commercial Blender 1 2780 2780

Frothing Pitchers 5 100 500

Hotel Pans 20 30 600

Microplane Graters 4 12 48

Knife Racks 8 29 232

Pepper and Salt Mills 5 8 40

Whips 10 3 30

One-piece Labels 10 2 20

Stock Pots 15 13 195

Double Boliers 10 34 340

Frying Pan 10 35 350

Non-stick Sauce Pans 10 40 400

Steel Pans 20 35 700

Rolling Pins 5 10 50

Wooden Stirring Paddle 8 4 32

Scale 2 40 80

Salt and Pepper Shakers Set 40 4.9 196

Saf-T-Ice Tote 1 145 145

Juicers 3 130 390

Warming Trays 10 150 1500

Hot Food Tables 4 275 1100

Char Broilers 2 430 860

Commercial Toaster 1 320 320

Airpots 4 120 480

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Gloves 20 5 100

Clothing (Chef+Waiter) 20 80 1600

Dutch Ovens 10 100 1000

Tuners 10 5 50

Thumb Dishers 10 5 50

Dipperwells 4 120 480

Fixtures 18000

Total 109,679NB: The prices are inclusive of the 23% discount.

D. Appendix D: Quotation of Restaurant Furniture, Other Equipment & Other Costs

Equipment Qty Unit

Price(RM)

Total

Price(RM)

Distributor/Contractor

Tables; Mavis; Zama, Orio

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2 Seating

4 Seating

8 Seating Round

12

15

8

230

300

760

2760

4500

6080

Tables(See Appendix

G)

Buffet Display

Table 12x5

Table 6x5

1

1

5850

3370

5850

3370

AF ArtFibre Sdn Bhd

Restaurant

Décor

1 12000 12000 AF Fibre Sdn Bhd

Automatic

Entrance Door

1(whole

restaurant)

4300 4300 DCon Resources Sdn

Bhd

Fixtures and

Fittings + Lights

1(whole

restaurant)


Bhd

Washrooms

Men + Fittings

Women +

Fitting

2

2

23400

19500

46800

39000

DCon Resources Sdn

Bhd

Restaurant

Partitioning

1 (whole

restaurant)


Bhd

Air Conditioner;

2.5HP

5HP

2

1

2250

4850

4500

4850

KNK Master Cool

Ceiling Fans 10 65 650 KNK Master Cool

LCD TV’s

42”

5 2580 12900 Harvey Norman

POS System 1 850 850 Ace Software Sdn Bhd

Misc. 15000 15000

Total 190810

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E. Appendix E: Start Up Expenses

Start Up Cost

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Sources of CapitalOwners' Investment (Name & Amount) (RM)Turas Adnan Arefin 50,000.00Neelan A/L Genisan 50,000.00Cheok Kem Hoo 50,000.00Total Investment 150,000.00

Bank LoansMaybank 350,000Total Bank Loan 350,000

Start Up ExpensesKitchen (see Appendix)Equipment 91,679Fittings 18,000Total 109,679

Restaurant Equipments, Other Equipments & Costs(see Appendix ) 190,810

Misc.ExpensesRegistration 3,000.00Licensing 1,000.00Rental 12,000.00Salaries 15,600.00Supplies 20,000Utilities 13,170Others 7230Total Misc. Expenses 72,000

Advertising/PromotionFlyers @ RM 5cents 500Radio Announcement - HitzFm 5days 10,000Magazine Ad 1000Newspaper Ad B/W (10days) 500Magazine Vouchers @ RM5 5000Total Advertising/Promotion Expenses 17000

Working Capital 9,000Reserve for Contingencies 2,000

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Summary StatementSources of CapitalOwners' and other investments 150,000Bank loans 350,000Total Source of Funds 500,000

Start-Up ExpensesKitchen 109,679Restaurant Equipments, Other Equipments & Costs 190,810Misc. Expenses 72,000Advertising/Promotion 17,000Working Capital 9,000Contingency Fund 2,000Total Start-Up Cost 400,489

OwnersTuras Adnan ArefinNeelan A/L GenisanCheok Kem Hoo

Loan Gurantors (other than owners)Muthan A/L GenisanCheokAshraf

F. Appendix F: Monthly Expenses

Monthly Expenses (RM)Rent 12,000

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Wages1 Head Chef 5,0001 Co-Chef 3,0002 Commis 800 @ 1,6001 Manager 1,8004 Waiters 900 @ 3,6001 Cleaner 600

Total Wages 15,600SuppliesAll food and Ingredient Suppliers 20,000Utilities

Telephone 600Electricity 10,000Water 1,000Gas 360Internet 140Astro 70Ice 1,000

Total Utilities 13170Other Monthly Expenses

Tissues 1,000Liquid Soap 300Floor Cleaner 200Table Cleaner 200Toilet Paper 80Liquid Hand Soap 250Air Freshner 200Misc 5,000

Total 7,230Loan 18,685Total Monthly Expenses 86,685

G. Appendix G: Names of Suppliers/Distributors/Contractors Kitchen Equipment & Fittings;

o CKE Marketing SDN BHD Restaurant Equipment, Other Equipment, Contractors;

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o Mavis; Zama, Orio Tables Tables and Chairs

o AF ArtFibre Sdn Bhdo DCon Resources Sdn Bhdo KNK Master Coolo Harvey Normano Ace Software Sdn Bhd

Food Supplierso Chicken, Lamb, Mutton, Beef, & Fish (Frozen& Fresh) Suppliers - A One Floral

Enterprise Sdn Bhdo Eggs- YONG SOON EGGS DEALERS SDN. BHDo All other restaurant supplies will be provided by - Hotel & Restaurant Supplies

Sdn Bhd Beverage Supplier

o F&N(Fraser & Neave Holding Berhad)

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