Duc hung CP final (edited 5 08 2020)

ATTESTATION OF AUTHORSHIP I hereby declare that this submission is my own work and that, to the best of my knowledge and belief, it contains no material previously published or written by another person except that which appears in the citations and acknowledgements Nor does it contain material which to a substantial extent I have submitted for the qualification for any other degree of another university or other institution of higher learning Signature of the candidate: Phạm Đức Hùng _ Acknowledgement I will not be able to finish this project without the support So I want to thank the following people for taking the time to help and inspire me during this project Next, I want to express my heartfelt gratitude to my mentor-Mr Ha Quach During the project he delivered very detailed feedback and advice Without his help I could not complete the project My heartfelt thanks to Dr Rob Lock, Le Hoang Anh, Tran Vi Nghiep, Nguyen Minh Hao, Ngo Kim Loc for providing the project with a lot of useful information Special thanks to my parents, my siblings and my beloved boss, who loved and cared for me all the time Finally, I thank myself, Pham Duc Hung, for overcoming the depression to finish this project Very good job, gentleman! Table of Contents CHAPTER 1: INTRODUCTION 1.1 Business concept ……………………………………………………………………………………………… 1.2 Products & service…………………………………………………………………………………………… 1.3 Business context …………………………………………………………………………………………….… 1.4 Major technologies & facilities required……………………………………………………….…… 1.5 Key value customers & stake holder group ………………………………………………….…… CHAPTER 2: ECONOMIC ENVIRONMENT 11 2.1 Market condition ……………………………………………………………………………………………… 2.2 Economic Conditions…………………………………………………………………………………… … 11 2.3 Historical and future trend……………………………………………………………………………… 12 2.4 Competitors…………………………………………………………………………………………………… 15 2.5 Suppliers ………………………………………………………………………………………………………… 16 2.6 Regulation……………………………………………………………………………………………………… 19 CHAPTER 3: MARKET SEGMENTATION AND RESEARCH 24 3.1 Market analysis ……………………………………………………………………………………………… 22 3.2 Business strategies ………………………………………………………………………………………… 34 CHAPTER 4: OPERATIONAL EFFICIENCY 40 4.1 Business structure & governance…………………………………………………………………… 38 4.2 Business operational planning ………………………………………………………………………… 38 4.3 Operational plan …………………………………………………………………………………………… 48 CHAPTER 5: SALES & MARKETING 53 5.1 Product positioning ………………………………………………………………………………………… 51 5.2 SWOT Analysis ……………………………………………………………………………………………… 52 5.3 Marketing mix (7Ps) ………………………………………………………………………………………… 55 CHAPTER 6: FINANCIAL OVERVIEW 67 6.1 Capital expenditure………………………………………………………………………………………… 65 6.2 Five years revenue forcast ……………………………………………………………………………… 67 6.3 Income statement …………………………………………………………………………………………… 69 6.4 Cash flow forecasts ………………………………………………………………………………………… 70 6.5 Breakeven analysis………………………………………………………………………………………… 71 6.6 Payback analysis ……………………………………………………………………………………………… 72 CHAPTER 7: EVALUATION OF PROPOSAL 75 CHAPTER 8: EXECUTIVE SUMMARY 78 CHAPTER 9: REFERENCE 79 CHAPTER 1: INTRODUCTION 1.1 Business concept The business concept is inspired by Tempus Fugit restaurant at JW Marriott Phu Quoc where I have worked for months In the middle of the restaurant, there is the open kitchen The chef and Pho making machine will be shown to the guests The wall will be decorated by the pictures of Pho history There are plants and flower to bring fresh and clean air to create relax feeling for guests before go to work or school Of course, we sell Vietnamese foods by Vietnamese people The concept should be much familiar to Vietnamese cultural as we can because the restaurant is located at District where the citizens eat Pho as a casual food for breakfast We try to make the beef stork to suitable with foreigners and Vietnamese people taste We also serve many kind of beef meat to satisfy the guest demand At the super hygiene Pho restaurant, we follow the main criteria: hygiene – homemade – eco-friendly We bring the guests to the most convenient and hygiene environment to enjoy the iconic traditional Vietnamese food 1.2 Products & services There is a length of Pho revolution, it was found and shaped in the early 20th century The first places in Viet Nam made Pho are Ha Noi capital and Nam Dinh province where famous for this national food Regarding the origin of dish, there was a view that Pho have been originated from a Cantonese dish “Beef Noodle” Another hypothesis, Pho have come from France made by French beef stork “Pot-au-feu” combined with spices and herbs in Vietnamese cuisine In 1939, chicken was released because there was not any beef for sell on Monday and Friday There was not clear why this incident was occurring, but perhaps an indispensable cause that problem because slaughter was restricted during feudalism Cows and buffalo were the main force for Vietnamese agriculture Pho is a combination of flavours In the bowl of noodles contains 18-20 kinds of foods of animal origin and natural plants The most special thing in is that the ingredients are used almost in its original state and work in harmony to create a unique taste, strange, delicious, easy to digest Although Pho is often known as a nutritious dish for breakfast, but aims to turn Pho into a dish that is not only nutritious but also extremely convenient, customers can enjoy delicious Pho at any time of the day, so my Pho restaurant is open from 06:00 to 22:00 daily There are many kinds of Pho that will give more options for the guests to choose and make the best experience So the main material of a Pho bowl is noodle, stork and meat But there are many kinds of beef from different part of the cow We based on the demand of our customers to choose the best quality of beef to make Pho In traditional, we have Pho tái (medium beef), Pho thập cẩm (mixed beef), Pho bò viên (meat ball), Pho nạm (fully cooked) Besides traditional Pho, we also serve vegetarian Pho and American beef Pho In the drink menu, there are full kinds of drink to give our guests energy for an active day such as soft drinks, smoothies, coffee and tea We believe our training progress for our staff will make our guests interested experience from the first step in the restaurant At the super hygiene Pho restaurant, we show our hospitality attitude by greet and welcoming the guests with our Pho passion and positive energy From experience from many years in five stars hotel, we understand and sympathy what customers need and want and try our best to give better service for our guests 1.3 Business context 1.3.1 Objective - Striving to achieve the revenue targets, profit margins according to the revenue forecast calculation in the first year and the payback period as expected in the financial plan - Building a team of professional staffs and working processes, ensuring to provide the best service for the dining needs of customers - Successfully implementing the advertising campaigns and product promotion, positioning super clean Phở brand in the minds of customers, especially of people living in District - Within years, more restaurants will be opened in other districts in Ho Chi Minh City and a model of super clean Pho restaurant chain is initially built, contributing a part of social responsibility 1.3.2 Mission Becoming a famous Phở brand in the quality and service of supplying and building a Phở restaurant chain nationwide 1.3.3 Core value - Well-trained staff – Our staff are trained with hospitality attitude to make convenience and friendly for guest - Open space – Our restaurant is decorated to bring the fresh atmosphere - Hygiene – We bring the safety and hygiene standard of food and environment - Traditional Phở taste – We always find the way to make the best taste of traditional Pho - Eco-friendly – We protect our environment by smallest activities such as logistic, cooking, serving and others 1.4 Major technologies & facilities required To be able to operate and operate the Pho restaurant, there are many factors related to the necessary technology and facilities Products brought to the restaurant are delicious, hot Pho bowls, so there are some indispensable items as follows: - Electric Pho cookers: make sure the broth is always kept at the standard temperature, leaving the bowl of Pho to the hottest customers as possible; - Ventilation, air conditioning system: Because Pho is a hot dish, while the main weather in Ho Chi Minh City is hot Diners should have a cool space to enjoy the food and conditioning blower system is extremely necessary; - Refrigerators, freezers: Food is a perishable item, so the system of refrigerators and freezers to ensure raw materials is always a top priority; - Counters, shelves, cupboards, dining tables, kitchen utensils: are indispensable material elements in restaurants; - Technology: restaurant management software, cash register software, security camera, wifi system, etc 1.5 Key Value customers & stakeholder group 1.5.1 Key Value customers The value brought to customers of the project of super clean, environmentally friendly Pho is: product quality to ensure food hygiene and safety, service quality is always on top, competing with the Fast food products on the market in terms of convenience but Pho is a nutritious and healthy food, which is also one of the values the restaurant brings to customers With such values, the customers object of the restaurant is those who not care much about the price (accept the high price if the demand is met) and who payi much attention to the quality of goods, the level of food hygiene and safety, service style Customers with high income (more than 10 million / month) are able to pay and focus on serving foreign customers and tourists 1.5.2 Stakeholder group We are the new business and we aim for a long term journey Stakeholders are the most important element to give us the chance to grow up and develop Stakeholders are identified as an individual, group or organization who affect or are affected by the project Stakeholders analyse their expectation and effect to the project They support us to contribute feasible management strategy for other stakeholders easy to make decision and perform the project Besides, stakeholders may always focus on communicate with each other to understand demands and expectation, point out the problem may happen, manage the conflict of benefit, and encourage stakeholders to participate in decision and activities of the project The satisfaction of stakeholders should be managed as achievement of the project 1.5.2.1 Internal stakeholder Employees Action For our staffs, we create a professional working environment, an open working culture, always motivating the spirit to help increase the staffs' working motivation Correctly and sufficiently pay salary and in accordance with the labor law Implement reward policies to increase motivation Management team Implement the operation of activities to ensure the restaurant operates properly Make decisions Founders Building business strategies and marketing strategies for the restaurant Run the restaurant's operations Be responsible for the issues of capital and finance 1.5.2.2 External stakeholder Government Action For the government, in order for the restaurant to operate smoothly, we need to strictly comply with tax obligations, protect the environment, ensure food safety and hygiene, and ensure safety and security Local communities For the locals, the restaurant implements a good relationship We contribute to provide them with a delicious, nutritious and convenient dish together with a high quality of service Suppliers We help selling goods, generating income for our suppliers with a commitment to quality assurance and reasonable payment schedule Cooperation For investment partners, I commit to a smooth operation with attractive returns and return on investment for them 10 CHAPTER 7: EVALUATION OF PROPOSAL 7.1 Risks and proposed solutions In the process of operation, the restaurant may encounter some risks, so the author puts forward some risks and countermeasures to overcome these risks The restrictions are as follows: The risks are probably due to the new restaurant opening, so not many customers come to the restaurant to enjoy the food Measures: Further promote, strengthen marketing and advertise on different channels Depending on the actual situation of the enterprise, an emergency promotion plan can be formulated to attract customers: discount, one get one free, eat to get a drink, give to coupon for next use Risks of fire and explosion damage Restaurant often use a local stove, so it is easy to be at risk of fire, especially from grease, oil and electrical sources Measures: Take utmost care to ensure the safety of the kitchen area by regularly checking and cleaning Equipping fire prevention and fighting equipment Develop a process to handle incidents of fire and explosion for restaurants Food spoilage risks The typical risk in restaurant business is food spoilage Preserving ingredients in chillers is essential for restaurants Measures: The restaurants need to have backup power supply system for food preservation system In case of food spoilage, immediate disposal Food poisoning risks If unfortunately one or more customers get food poisoning from the restaurant's dish Measures: In the unfortunate event that the restaurant will immediately investigate the cause of food poisoning of customers to find a remedy, such as changing suppliers, and taking responsibility compensate customers for related expenses such as health, income from their absence from work Risks from suppliers 75 If the initial trading period without interest, costs of importing goods, or business operating costs can be difficult Supplier does not owe Measures: Create good relations with suppliers, sign long-term contracts, in which the contract should agree on suitable terms for newly established restaurants.\ Risks from competitors As a new entrant, the restaurant will have to compete with competitors that appear first in attracting customers Measures: To solve this problem, the restaurant will build appropriate, effective marketing, advertising and marketing strategies At the same time, there are solutions to make a difference and diversify for their products Risks of strong fluctuations in market prices In the first stage, the restaurant did not have much profit, so if the inputs were too high, it would cause financial difficulties Measures: If the price fluctuates in the short-term, the restaurant will keep the price unchanged from the original price If the price fluctuates for a long-term, the restaurant will maintain the stipulated sales price in advance and accept the reduction of profits to retain customers, then we will gradually raise the price to keep it in line with the market price 7.2 Evaluate socio-economic efficiency 7.2.1 Economic efficiency The business of an eco-friendly restaurant is an economic project, the first-year profit of VND 250 million This is not a big profit, but it is not small for a newly established restaurant In addition, the members of the group will contribute capital, manage, and business together, so it will reduce staffing costs, the profits will be shared equally among the members, so the members will be encouraged to work enthusiastically 7.2.1 Social efficiency The project provides participating members with an opportunity to draw on their expertise, generate income and experience 76 Provide customers with delicious, affordable and, most importantly, ultra-hygienic Pho (rice noodles) to ensure food safety and hygiene and provide healthy food for diners For suppliers: The project contributes to the consumption of products for suppliers, contributes to raising their incomes, helping them to be more motivated to pursue the business of clean, friendly food materials environment and good for consumers' health For the national budget: Through the full tax payment, the eco-friendly noodle shop business project contributes a part to the state budget 77 CHAPTER 8: EXECUTIVE SUMMARY After a relatively complete evaluation and analysis of the market situation, economic environment, demand survey of target customer groups, future cooking trends, identification and analysis of competitors, etc We believe that our business plan is completely feasible and has high economic benefits By choosing product policies as the core of our business, coupled with specific and perfect marketing strategies (Google Adwords, Facebook Ads, YouTube Ads, Tiktok Ads to improve the status of our products in the eyes of our customers), we believe that our products will be well received by our customers and meet or exceed our expectations The feasibility of the project can be seen through income forecast and financial analysis According to calculations, the project will only take one year and six months to recover the funds Compared with the original 509 million Vietnamese dong, the speed of recovering funds is considered quite fast In the context of declining interest rates at banks, with an average ROI of 35,7%, the project shows how worthwhile it is to invest In short, with the future trend of F&B industry development, the eco-friendly Pho restaurant project is a great idea for business and market penetration By putting product quality, food safety and hygiene on top, the restaurant will bring diners a healthy, healthy and convenient food With careful research, preparation and convincing survey data, investors can see the project overview and see the potential of this plan 78 CHAPTER 9: REFERENCE Liên Nguyễn, (2018, July 20) Ẩm thực Việt: Đa dạng, hấp dẫn đậm nét truyền thống https://www.vietpress.vn Retrieved from https://www.vietpress.vn/am-thucviet-da-dang-hap-dan-va-dam-net-truyen-thong-d73187.html Đỗ Quyên, (2018, November 11) CNN bình chọn 40 ăn ấn tượng Việt Nam https://nhandan.com.vn Retrieved from https://nhandan.com.vn/du-lich/cnn-binhchon-40-mon-an-an-tuong-cua-viet-nam-332062/ Thông tin số liệu thống kê năm 2020 Retrieve from http://www.pso.hochiminhcity.gov.vn/web/guest/nam-2020 Nhung Mai, (2020, March 22) Ăn phở đem lại lợi ích cho sức khỏe? http://baodansinh.vn Retrieved from http://baodansinh.vn/an-pho-dem-lai-loi-ich-gicho-suc-khoe-22202021322451622.html GoViet công bố kết khảo sát xu hướng hành vi tiêu dùng ẩm thực https://www.go-viet.vn/ Retrieved from https://www.go-viet.vn/blog/tin-tuc/govietcong-bo-ket-qua-khao-sat-xu-huong-hanh-vi-tieu-dung-am-thuc/ List of Tables Description Unit Quantity Unit price Total Price I/ Product research and development costs Business Registration Pack 7.000.000 7.000.000 Research costs Pack 3.000.000 3.000.000 Total 10.000.000 II/ Business space rental costs Business space rental costs month 12 20.000.000 240.000.000 Total 240.000.000 III/ Remodeling and decoration costs of restaurant and interior design costs Design costs Pack 8.000.000 8.000.000 The cost of repainting floors Pack 50.000.000 50.000.000 and Perfecting the electrical system Pack 15.000.000 15.000.000 Complete water system Pack 10.000.000 10.000.000 Lighting system Pack 12.000.000 12.000.000 Fire prevention and fighting Pack 10.000.000 10.000.000 system Dinner table Set 20 3.000.000 60.000.000 Counter Piece 5.000.000 5.000.000 Bar Piece 5.000.000 5.000.000 Pictures, decorations Pack 5.000.000 5.000.000 79 Air conditioning Piece Total 12.000.000 48.000.000 228.000.000 Piece 6.7000.000 6.7000.000 NA 702 BL Napoliz vacuum odor Piece 3.000.000 3.000.000 SANYO refrigerator Piece 6.500.000 6.500.000 SANAKY Freezer Piece 7.000.000 7.000.000 Industrial gas stove Piece 2.500.000 5.000.000 Set 8.000.000 8.000.000 Set 8.800.000 8.800.000 Computer Set 6.000.000 6.000.000 Telephone Piece 250.000 500.000 Set 500.000 1.500.000 Piece 9.000.000 9.000.000 IV/ Equipment costs Processing equipment 60l Pho cooking pot Bowls, mugs chopsticks, spoons, Kitchenware Office equipment Speaker Generator Total V/Marketing Signs 62.000.000 Piece 15.000.000 15.000.000 Leaflets, brochures, standee Gói 2.000.000 2.000.000 Digital Marketing Gói 5.000.000 5.000.000 Total 22.000.000 VI/ Working capital months Living expenses months 6.000.000 18.000.000 Salary months 1.500.000 4.500.000 Materials months 195.000.000 585.000.000 Marketing months 5.000.000 15.000.000 Total TOTAL INVESTMENT 80 622.500.000 1.184.500.000 Targets 1st year 2nd year 3rd year 4th year 5th year Consumption ratio to capacity Number of diners/ day Average price / time Product consumption revenue/day Total Revenue 30% 37% 38% 40% 45% 110 136 140 147 166 60.000 60.000 60.000 60.000 60.000 6.600.000 8.160.000 8.400.000 8.820.000 9.960.000 2.376.000.000 2.937.600.000 3.024.000.000 3.175.200.000 3.585.600.000 1st year 2nd year 3rd year 4th year 5th year 2.376.000.000 2.937.600.000 3.024.000.000 3.175.200.000 3.585.600.000 Targets Revenue Variable Cost Materials 717.300.000 884.700.000 908.600.000 956.400.000 1.076.000.000 Total Variable Cost Fix cost 717.300.000 884.700.000 908.600.000 956.400.000 1.076.000.000 Cost rent 240.000.000 240.000.000 240.000.000 240.000.000 240.000.000 Electricity bill 72.000.000 88.800.000 91.200.000 93.330.000 108.000.000 Water bill 18.000.000 22.200.000 22.800.000 24.000.000 27.000.000 Internet bill (telephone) Salary 12.000.000 14.800.000 15.200.000 16.000.000 18.000.000 832.000.000 1.026.133.000 1.053.866.670 1.109.333.333 1.248.000.000 45.600.000 45.600.000 45.600.000 45.600.000 45.600.000 12.400.000 12.400.000 12.400.000 12.400.000 12.400.000 60.000.000 60.000.00 60.000.00 60.000.00 60.000.00 1.541.066.670 1.600.663.333 1.759.000.000 Interior depreciation Equipment depreciation Marketing Total fix cost 1.292.000.000 1.509.933.000 Profit before tax Corporate income tax (25%) Profit after tax (Annual net 336.700.000 542.967.000 574.333.330 618.136.667 750.600.000 84.175.000 135.741.750 143.583.332 154.534.166 187.650.000 252.525.000 407.225.250 430.749.997 463.602.500 562.950.000 81 profit) ROI 21.3% 34.3% Y0 Cash flow Y1 36.3% Y2 - 2.376.000.000 39.1% Y3 47.5% Y4 Y5 2.937.600.000 3.024.000.000 3.175.200.000 3.585.600.000 from operating activities Initial 1.184.500.000 - - - - - Investment Business - 2.009.300.000 2.394.633.000 2.449.666.670 2.557.063.333 2.835.000.000 production costs Less tax - 84.175.000 135.741.750 143.583.332 154.534.166 187.650.000 - 252.525.000 407.225.250 430.749.997 463.602.500 562.950.000 (1.184.500.000) (1.184.500.000) (931.975.000) (524.749.750) (93.999.753) 369.602.747 369.602.747 932.552.747 payment Net cash flow during the period Presumption at beginning of the period Presumption (1.184.500.000) (931.975.000) (524.749.750) (93.999.753) at ending of the period Fix cost Selling Price Variable Cost Break Even Unit Break even Revenue Y1 1.292.000.000 60.000 18.000 32.300 1.938.000.000 Y2 1.509.933.000 60.000 18.000 35.950 2.157.000.000 Y3 1.541.066.670 60.000 18.000 36.692 2.201.520.000 Y4 1.600.663.333 60.000 18.000 38.111 2.286.660.000 Y5 1.759.000.000 60.000 18.000 41.880 2.512.800.000 82 List of Figures 83 84 85 86 87 88 89 ... …………………………………………………………………………………………… 48 CHAPTER 5: SALES & MARKETING 53 5. 1 Product positioning ………………………………………………………………………………………… 51 5. 2 SWOT Analysis ……………………………………………………………………………………………… 52 5. 3 Marketing mix... Industry codes Content 56 1 - 56 10 Restaurant and catering services for mobile service 56 101 Restaurant, diner, food shop 56 109 Other mobile catering services 56 2 56 29 - 56 290 Provides catering... banquets, meetings, weddings, ) Other food services 56 3 - 56 30 Services for drinks 56 301 Pub, beer, bar 56 309 Other beverage service 56 21 - 56 210 In addition, after designing the logo and brand