Review of Business Plan of Domibite Restaurant, Lokoja, Kogi State, Nigeria

Abstract

Domibite Home-style Restaurant (“DHR”) is an eating establishment focusing on healthy, nutritious and fast food to the local downtown area. It will be a moderately priced of 56 seat restaurant that is decorated with feature word accented chairs with blue and white checked table cloths. Dinner style tables will be surrounded by wooden chairs with comfortable seating cushions offering family style food and service. Based on this distinct menu, Domibite Home-style will follow a differentiation strategy that will provide unique, or hard to find choices to Domi patrons. The restaurant will be jointly owned by Madu Ikemefuna and Maji Enoch and operated by Bright and Ndu-best. The operators have about 12-15 years experience in the restaurant and catering industry. Entering into this market will not be easy, the industry is highly competitive with periodic overcapacity, low margins and low entry/exist barriers. In addition, there are large numbers of substitutes and the suppliers to this market have a great deal of power. In order to overcome these issues, the restaurant has acquired an excellent locality in the downtown area and intends to provide a suitably upscale environment to draw in the restaurant main target market segment and business professionals. The company will seek to provide these customers with the maximum number of services to create the greatest sales volume during the restaurant peak hours of operation. The restaurant will have a comprehensive marketing, advertising and promotion campaign that will maximize word of mouth marketing and will consist of radio, printed materials, bill boards and discounts. The restaurant has planned to offer its products at a slightly higher price than its competitors. This is to provide credibility to its clients as an upscale establishment that provides a unique menu. This will also provide the funds to cover the higher than expected operating costs due to the differentiated and expanded menu. The sales projections assume 1,800 customers per week. This resulting to the weekly sales of just over N720,000:00 this if projected for three (3) years is calculated as N720,000 X 52 weeks = N37,440,000:00 for 3 years (N37,440,000x3) = N112,320,000:00 By this, the restaurant is maintaining a healthy cash flow.