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Business Plan for

BABY YUMMY Children Restaurants

Done by:

Nuwaire AL-Marzogy

ID: 200700048

Course name:

THEORIES & APP. LEARNING II

Section: 205

Instructor:

Ms.Noor M. Felemban

Spring 2 March 2013


Table of contentBusiness Plan for..............................................................................................1

BABY YUMMY Children Restaurants.........................................................1

Executive Summary.........................................................................................3

Company Description......................................................................................4

2.1 Company history:............................................................................................................4

2.2 Vision and Mission Statement:.......................................................................................4

2.3 Company Goals and Objectives:......................................................................................4

2.4 Business Philosophy:.......................................................................................................5

2.5 Product and Services:.....................................................................................................5

2.6 SWOT Analysis:...............................................................................................................6

2.7 Business Owners:............................................................................................................6

Industry analysis..............................................................................................7

3.1 Industry size growth rate:...............................................................................................7

3.2 Industry Structure:..........................................................................................................7

3.3 Key Success Factors:.......................................................................................................8

3.4 Industry Trend:...............................................................................................................8

Market Analysis...............................................................................................9

Marketing Segmentation and Target market selection:.......................................................9

V. Marketing Plan.......................................................................................11

Overall marketing Strategy:................................................................................................11

Product, Price, Promotion, and Distribution:......................................................................12

VI. Operational Plan.....................................................................................15

Management Team and company structure...............................................16

Management Team:...........................................................................................................16

Financial projections.....................................................................................17

Bibliography:.................................................................................................26

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Executive SummarySituation: The restuarnt for kids is the idea about the children between the age

group 6 months to 2years will be pioneer idea to serve the mothers and children to get

their takeway foods items with complete content of rich vitamins and other

ingredients neccesary for chidlren growth specially at affordable price.As Saudi

Arabia is cosnidered to be most obese children in middle east with more than 3

millions childrens are suffering from this diseases. This resturant will take care of all

children intake need in terms of vitmaincs and minerals with speically food

supplments .And we will establshied this resturant as the prime take away restuarnt

for all food items needs for healthy childrens.

The main objective of this resturants is to provide the mothers the balance

diet ,fresh made food for thier growing kids with the conveinece of affordable prices.

The food industry values as 16 $ billionand no big names are availble with the

intention of proiding the special made foods for this target customers. And this

segement offers tremdous business grwoth opportunities with increae in the

populatins rate at 4% in the year-to-year basis. Our business blue print is ready with

detial plan for achieving atleast half millions in first year of business operations.

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Company Description

Company history:This fall of 2013, our group composed of four ambitious, innovative business

students need to think of a possible business venture in connection with our business

subject. Different type of business came to our minds but we cannot decide which. So

we ask each other instead of our aim in doing the business and unanimously agreed on

one aim which is to provide good and healthy food for every woman has a child. With

that wish, we have agreed to open a unique restaurant that embodies that goal. The

idea of the health baby restaurant crossed our mind when we noticed how see a lot of

working mothers didn't have much time to prepare a fresh and healthy food for their

children.

The business concept is to start take away baby restaurant which provide the

healthy and balanced take away foods for mothers and day cares in addition to prepare

take away foods for kids birthday parties.

Vision and Mission Statement: Vision :

Becoming the leaders of kids’ restaurant in Saudi Arabia and in Middle East.

Mission :

To facilitate the good quality, hygienic baby foods for daily calories intake

requirements according to their ages, by providing the environment and attractive

setup that match with occasions and their needs according to latest trends.

Company Goals and Objectives: Goals are destinations- becoming the leading baby foods restaurants in Middle East.

Objectives:

To provide and deliver the customers the healthy and hygienic food for their children

daily needs and this includes ready to take and immediately consume with various

food items that make specially suit the kids taste and preferences. And these foods

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items had been approved by child medical experts and this can be necessary for their

growing demands needs.

Business Philosophy:To create the place for the customers, the quality fresh foods items designed

especially for small kids with respect of their choice and taste that matches to the

event within their budget.

WINNING CUSTOMER SATISFACTION IS OUR MISSION, OBJECTIVE AND GOAL.

2.5 Product and Services:a) Product Desirability: The casual dining restaurant will reach around 17,000

across the Saudi Arabia by 2014. With the average 6% growth rate had been

registered every year with total business values reaches about 28.9 billion

Saudi Riyals by the year end 2014. And with this amount of business potential

the niche available for baby food items are also available to flourish in the

market.

We prepare the high quality take away baby foods for mothers to feed their

children’s.

Our staff is specially trained to serve the small baby to finish their foods.

Our constant endeavor to make the special foods items in accordance to

taste of children’s.

We provide the complete daily food need of children according to their

ages.

b) Product demand: The present day modern Saudi family had shown the

increasing trend of eating outside in the restaurants with increase in income for both

men and women leads to surge in business of family restaurants. And with the

increase of women work force in Saudi society make the things more comfortable to

go out frequently for dinner outside. With young Saudi families spending quality time

with children’s is prime importance and this Baby Yummy Restaurant can be idle

5 Nuwaire AlMarzogy


place to spend the time with their children and provide them the quality food for child

development needs.

c) Services: We are also providing the quality services by having fast

customer service to get customer satisfaction.

We provide complete food plan for growing children’s need.

2.6 SWOT Analysis:a. Strengths:

1. Our Strength is our commitment and dedication to provide take away baby

foods for growing up children’s and creates the atmosphere for organizing

small parties.

2. All our food items had been approved by child specialist doctors.

3. Selection of high quality food inputs like vegetables and fruits and process

it with strong hygienic standards to deliver quality foods that match the

daily needs of children’s.

b. Weaknesses:

1. Limited budget.

2. Limited Experience.

3. Our commitment to stretch our team to get into another level.

c. Opportunities:

1. Expansion of branches.

2. Employing creative staff and making use of their talent.

3. This baby foods items is strong part of overall Saudi food industry of 16$

billion which provide ample opportunism to grow and prosper in years to

come.

d. Threats

The perceived business threat also exists in this type of business where any

negative publicity can harm the business.

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Business Owners: We are partnership firm with scope of becoming multinational company.

Industry analysis

Industry size growth rate:“Baby food industry grows every year with country high birth rates and the

present trend still shows the high percentage as in 24.4 births per 1,000 inhabitants in

2006, it remained high at 22.4 births per 1,000 inhabitants in 2011” (Jones, 2011).

The Saudi population is young and vibrant with huge business potential consumer

base for baby food. Initially this restaurant will establish in Al-Khobar and have

planned to expand to other parts of Saudi Arabia and Middle East. This market grew

with 21.9% during the review period to reach market value of USD 749.2 million in

2011 form USD 339.3 million in 2007. (Roberts & Stevenson, 2013)As this is

budding industry where competition are changing hand quickly with growing needs of

baby foods for urban mothers. And the future prospects of this business are very

bright with lot opportunities of making money.

Also, “Saudi Arabia is the largest and one of the fastest growing retail markets

in the GCC region that continues to attract strong interest from investors and small

scale retailers from across a range of categories as they respond to the many

opportunities available, principally driven by the increasing levels of spending power

available to the Kingdom's consumers and kingdom's relatively youthful population.

As response to this strong demand, the amount of retail floor space in Saudi Arabia

has rapidly increased, with the area of mall based retail space increasing by nearly

80% in Jeddah and 65% in Riyadh since 2005” (Magdeson, 2012). In addition,

women represent a significant opportunity in retail industry in Saudi Arabia.

3.2 Industry Structure:Retailing has a strong performance in Saudi market with the growth attributed

to several of factors. The retail business benefits from a high degree of affluence and

good economic situation. Also, retailing benefited from the country’s young

population, with the majority of local Saudis being aged below 30 years old. Due to

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the conservative nature of the Saudi society, there are very few entertainment options

thus, many of these consumers opted to socialize in malls and regarded shopping as

leisure. A major factor driving growth for retailing was the strong development of

shopping malls, with this air conditioned outlets housing a wide range of food outlets

and non-food retailers offering a comfortable shopping atmosphere. However, Saudi

society has a unique cultural consideration which prohibits single men to visit malls

during weekends where access is only available for families. This has resulted to the

growth of street retail and showroom formats, especially for categories targeting

single men such as electronics, menswear, sportswear, watches, and fast food among

others.

3.3 Key Success Factors:These are many success factors that this business and its employees have. This

business follows the factors as guidelines to maintain its success. The main success

keys are:

1. The business is commited to its mission statement, and applies the

objectives in every product and service.

2. The business focuses on satisfying customers needs in any possible way.

In this respective business, we believe that the customer is always at right;

we value the customers' needs and opinions and try to satisfy them as

much as we can.

3. We believe in friendly, understanding, and always smiling employees,

who are always ready to listen to customers' needs as well as critiques;

forward it to management and the owners, where actions will be taken to

fix or enhance our fine business.

4. Our variety of product offerings for regular and new customers.

5. Our constant attempts to value and equalize our customers in any possible

ways and that are out of the belief that every customer is worthy.

3.4 Industry Trend:

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Generally, the current trend in Saudi retail industry is that it is now spread

across malls that have mainly replaced the traditional old markets and souks all over

the Kingdom. Malls attract consumers to purchase in a more modern and stylish

environment, enabling to build a consumer experience with both for social and

entertainment purpose. With this trend in retail market, people’s mobility is

inevitable. Frequent trip to the shopping malls throughout any season. As for the

retailers, many Retailers are looking into the possibility to enter this industry to cater

to a large and growing domestic demand, driven primarily by its sizeable young

population. The retailers and retail centers can create a unique Saudi experience as

they will be able to fully capitalize on the market potential and increasing levels of

spending power available to the Kingdom.

Market Analysis

Marketing Segmentation and Target market selection:

At Baby Yummy, we are happy to serve everyone no matter what's their status

or gender. Though, we mainly target women from the 10 million women between the

age group of 20-45 years in Saudi Arabia who are married and raising their children

by providing them the healthy and vitamins foods.

Target Customers:

Our target customers are middle class customers who want to provide best and

balance foods to their growing children’s need.

Reaching the target customers:

Email and social sites marketing strategy.

Electronic media reach by ads in TV, newspaper and spreading pamphlets.

Geographic Locations:

The initial place chooses to start the Baby Yummy business in Al-Khobar by

carefully analysis these following factors as :

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1) Expected business volumes with easy accessibility of customers.

2) Ideal location with high visibility of this restaurant.

3) Ample parking facilities with good surrounding residential area.

We are fully ready to launch this unique concept of offering the young mother the

complete food plan for their growing children’s needs within their budgets.

Niche Marketing:

Our target niche market is professionally busy middle class people with the

intention of providing the quality food to their children and also wanted to spend

some quality times in this Baby Yummy ,We are focusing on the niche markets within

the big food market of Saudi Arabia where the potential to grow is very attractive.

Baby Food Market Segmentation analysis

Geographic Segmentation

Target Location Eastern Province of KSA

Suitable for business

Ideal for any business

Climate

Infrastructure and support

service

Demographic Segmentation

Target Populations Mummy and families

Middle Class and upper

middle class segment

Working women and the

husband and wife

working people

Target Income level group

Occupation

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Psychographic

Segmentation Target customers Kids under the age of 2 y

Product Usage rate

All the convent time

during the day or night

time

I.1 Competitor Analysis

Virtually there is no competition exist for this types of business where

customers can get fresh make food products with full vitamins and minerals at

affordable price as in the supermarkets and other stores all the children packaged

foods are available only. But we chose McDonalds as a competitor because they

provide meals especially for kids. Also, we compare Baby Yummy foods with baby

foods in Supermarkets.

Factors Baby Yummy Restaurant

McDonalds Baby Foods in Supermarkets

Attractive locations * * *

Advanced order system through online *

Fast Services * * *

Social networking access * *

Discounts *

Prices affordable * *

Healthy Foods * *

Management Quality * *

V. Marketing Plan

Overall marketing Strategy:



The Baby Yummy marketing plan is to target the young mothers who wanted

to give the best to their children to develop them to the healthy baby without any

health issues. And before the restaurant plan had been finalized the extensive market

research had been perform in order to check its feasibility and profitability of the

business to be start in khobar.

Marketing control is a marketing strategy that controls the progress of the

business, by comparing its actual progress with the potential progress on the

marketing control plan. Businesses need to have a marketing control strategy to

contain threats, and minimize failure percentage.

Control involves measurement of threats, countermeasure actions, evaluation

of progress, and monitor the progress. The importance of controlling the marketing

plan is to avoid future failure. If at any case the business faced a potential failure there

the control plan will show which corrective actions will be taken to turn failure into a

success.

Product, Price, Promotion, and Distribution:Pricing Strategy

Our products are affordable price with take away food items are smartly

packed to attract the kid’s attention and for the parties we are adopted the

penetration pricing strategy to suit their small parties requirements. As we believe

in offering the quality, hygienic and tasty food for small kids and with small scope

for offering the space for them to enjoy some precious moments with their

parents.



In our business with Baby Yummy Restaurants the customer service is key

for offering specially trained professional to explain the mothers the food plan for

their baby weekly and monthly requirement’s and even we can maintained their

diaries in order to help the mothers to check their baby weight and height against the

child growth progress charts.

Distribution Channels:

We can reach the target parents by carefully choosing the marketing vehicle are as

follows

In house hospitals advertisements

Mass emailing and Website marketing.

Social media reach out

Word of mouth publicity

Doctor’s prescription

Promotion:

They are several ways can be adopted to reach out to these potential customers by:


Low PriceWe adopted the

Penetration Pricing strategy

Skimming Primeium

Baby Yummy Resturatn Pricing

strategy


Channelizing the marketing team efforts by electronic media, social sites

marketing’s like Facebook, twitter etc.

Mobile apps to be downloaded free for iPhone and other smart phones.

Special offers like kids free face painting, tattoo designing and free toys with

promotional or weekend offers.

Promotion Mix:

The marketing mix management had guide us to reach the customers by

applying various media vehicles like print, electronic and social networking through

which the idea is communicated to the potential targeted customers. Running the sales

promotion successfully is key to our business progress and one important factor is

very prominent in promotion is word of mouth publicity with satisfied customers.

This can only be achieved by proper functioning of business by providing the high

quality foods to their children’s at affordable rates.

Promotion Tools:

1. Social Media & Website marketing to attract IT savvy families

2. Mobile apps to be downloaded free for iphone and smart phones/

3. Special offers like kids free face painting, tattoo designing and free toys with

promotional or weekend offers.

Product and Services Advertising:

Presently the best reach to the customers is through the social media and then

electronic media. With more exposure of internet technologies made us to focus on

social media sites like Facebook, twitter and Skype with the full movie add about who

the busy mother feed their young children from fresh made high quality food from

Baby Yummy Restaurants .

f. Image:

We need to develop the high quality brand value by offering the busy mothers the

complete food solutions for their children’s by providing them the food plan for each

day of the weak for maintaining their health requirements and growing patterns

needs.



Place:

The Baby Yummy shop will be located in Dhahran Mall Gate 5, Al-Khobar

City, Saudi Arabia.

VI. Operational PlanThe below diagram illustrate the business operations plans for order execution

process :

1. Initially the front office cashiers receive the order from customers directly or

customer select from the available item list according to their choice.

2. It passes the information through the use of network computers to kitchen

department for order processing with coordination with warehouse people to

release the food materials for food items preparations purpose.

3. The food processing and packaging personnel prepare the food items according

to customer needs

4. And the customer received the order and pays the product price and this data is

updated in financial system.

5. Our entire operational plan had been devised with carefully study though

benchmarking the restaurant industry best practices by applying the closed IT

system which connect this entire department and update the information

accordingly for management reporting system.

Operations Management Structure of Baby Yummy Restaurant


Front office Cashiersorder

Kitchen and Warehouse Dept

Food Processing Department

PackagingDepartment

Accounts & Finance Department


The restaurant manager will be responsible for day-to-today operations as he

is one person responsible for running this organization successfully. The management

team consists of fully motivated and trained personnel according to the position. This

small organization structure is closed lined with IT system will flow of information

from cashier to delivery process, with full information updated in accounting system.

The flow process start with order receipt pass it to kitchen and food processing

department with warehouse and packaging department play their respective role for

final preparation of the order with accounting department updates all the financial

records and managing all the business transactions effectively.

Management Team and company structure

Management Team:This Baby Yummy restaurant is the small organizations where people are

working in the close group with primary aim is to provide the customer the quality

food items at affordable price. The organizations structure had been designed with

motivated people at key position. This management structure is of three levels, the top

level is headed by restaurant manager and the second supervisory level comprises of

sales order processing manager, kitchen supervisor and accounts manager. And the

third level is the operational level where the food processing team, health support

system team and packaging team are actually involved in the food preparation and

packaging process and delivering it to the customers, and making these organizations

as unique which offer supreme foods for keeping kids health Yummy.

MANAGMNET STRUCTURE OF BABY YUMMY RESTURANT



Financial projections

The financial statements plan is funded from our group to start this small of

offering the working parents the complete food plan for their young children the

product which is very hygiene and ideally made for growing children needs. And this

budget is to for start up the business with investment in advertising and marketing and

infrastructure setup and kitchen budget requirement’s. The initial infrastructure setup

required huge investment with furniture, kitchen equipment, fruits and vegetable and

interior decorations are required to display the ideal ambience that attracts kids and

parent attention and admiration. And after the initial setup getting finished the money

spend on advertising and promotion had be spend in electronic media and slowly we

need start offering the prepare meals and foods items to kids when the slowly

customers recognize the ideas and that turn in sales which leads to inflow of cash in

our business.


Resturant Manager

Sales Order Processing Manager

Food processing

team

Health Support

System team

Kitchen Supervisor

Packaging Team

Accounts Manager


OPERATIONS AND INVESTMENTS ASSUMPTIONS

Year

PLANNING

YEAR

FIRST

YEAR

SECOND

YEAR

THIRD

YEAR

Sales 250,000 350,000 500,000

COST OF GOODS SOLD (% of sales) 50% 45% 40%

SELLING AND ADMIN EXPENSES (% of

sales) 30% 20% 20%

Inventory (% of COST OF GOODS SOLD) 10% 10% 10% 10%

Minimum cash balance (% of sales) 4% 4% 4% 4%

Accounts receivable (% of sales) 12% 12% 12% 12%

Accounts payable (% of COST OF GOODS

SOLD) 8% 8% 8% 8%

Investment in PP&E 50,000 0 - -

Depreciation - 10,000 10,000 10,000

OPERATIONS AND INVESTMENTS CALCULATIONS

Year Planning Year First Year

Secon

d Year

Third

Year

Average sales 125000 300000 425000 575000

Average COGS 62500 141250 178750 230000

Inventory 6250 14125 17875 23000

Minimum cash balance 5000 12000 17000 23000

Accounts receivable 0 36000 51000 69000

Accounts payable 5000 11300 14300 18400

FORECASTED BALANCE SHEETS OF BABY YUMMY RESTURATNS



Year

PLANNIN

G YEAR

FIRST

YEAR

SECON

D YEAR

THIRD

YEAR

Cash 448,750 465,915 587,300 733,380

Inventory 6,250 14,125 17,875 23,000

Accounts receivable - 36,000 51,000 69,000

Total current assets 455,000 516,040 656,175 825,380

Gross property, plant & equipment 50,000 50,000 50,000 50,000

Less accumulated depreciation -

(10,000)

(20,000)

(30,000)

Net property, plant & equipment 50,000 40,000 30,000 20,000

Total assets 505,000 556,040 686,175 845,380

Accounts payable 5,000 11,300 14,300 18,400

Bank notes payable - 28,000 69,000 62,000

Total current liabilities 5,000 39,300 83,300 80,400

RESERVE 66,740 202,874 414,980

Long-term debt 200,000 200,000 200,000 200,000

Shareholders equity 300,000 300,000 300,000 300,000

Total long-term debt and shareholders’

equity 500,000 450,000 400,000 350,000

Total liabilities 505,000 556,040 686,175 845,380



BABY YUMMY RESTURANT FORECASTED CASH FLOW

STATEMENTS

Year

PLANIN

G YEAR

FIRST

YEAR

SECOND

YEAR

THIRD

YEAR

Net income 16,740 86,135 162,105

Plus depreciation 10,000 10,000 10,000

Less increase in inventory (6,250) (7,875) (3,750) (5,125)

Less increase in accounts receivable - (36,000) (15,000) (18,000)

Plus increase in accounts payable 5,000 6,300 3,000 4,100

Cash flow from operations (1,250) (10,835) 80,385 153,080

Less investment (50,000) - - -

Cash flow from operations and invests (51,250) (10,835) 80,385 153,080

Plus net new equity capital raised 300,000 - - -

Less dividends paid - - - -

Plus net new long-term debt 200,000 - - -

Plus net new bank borrowings - 28,000 41,000 (7,000)

Cash flow from ops, invests, and fin 448,750 17,165 121,385 146,080

Beginning cash balance - 448,750 465,915 587,300

Ending cash balance 448,750 465,915 587,300 733,380



FORECASTED INCOME STATEMENT

INCOME STATEMENTS

Year

FIRST

YEAR

SECOND

YEAR

THIRD

YEAR

Sales 250,000 350,000 500,000

Less COGS (125,000) (157,500) (200,000)

Gross profit 125,000 192,500 300,000

Less SG&A expenses (75,000) (70,000) (100,000)

Less depreciation (10,000) (10,000) (10,000)

Earnings before interest and taxes 40,000 112,500 190,000

Less interest expense (23,260) (26,365) (27,895)

Pre-zakat income 16,740 86,135 162,105

Cumulative pre-tax income (NOL) 16,740 102,875 264,980

Zakat(2.5%) 1,832 4,816 3,939

Pre-tax income 16,740 86,135 162,105

Less taxes - - -

Net income 16,740 86,135 162,105

RATIO FIRST YEAR SECOND YEAR THIRD YEAR



CURRENT

ASSETS RATIO

13.13 7.88 10.27

QUICK ASSET

RATIO

12.77 7.66 9.98

OPERTING RATIO 0.50 0.45 0.32

FIXED ASSET

TURNOVER

RATIO

5.0 7.0 9.0

DEBT TO EQUITY

RATIO

18.53 22.80 2.82

PROFIT MARGIN

RATIO

0.07 0.25 0.32

CASH RATIO 11.86 7.05 9.13



BABY YUMMY PROPOSED RESUTRANT INTERIORS

Conclusions and Recommendations

The Baby Yummy Restaurant had been established to benefit the young and busy

parents the baby food prepared items at affordable price. As increase number of

young population where both father and mother are working will find difficult to

provide the quality time and depend on traditional foods only by comprising on their

growth. So the Baby Yummy Restaurant will take care of all the baby food needs by

devising the compete food plan by providing them the complete nutritious, hygienic

food with full vitamins and specially minerals need for growing baby needs.

With improving the lifestyles, with high disposable income rise made the ideal

choice for the parents to give their children the quality foods which can take care of

all their daily needs of vitamins and minerals consumptions. .

There is growing trend that the young couples always prefer to go outside and

have their dinner as they don’t have time to prepare the quality food at home. So this

restaurant is ideal place for them to take their baby food requirements regularly.

Presently Saudis people are increasingly working longer hours and, as a result

the family time has very precious and eating outside with families is ideal way of

spending quality time is the very nice idea. Due to this reason, we offer the place and



take away services for young parents, single women and professional working women

to forget their worries about the child daily requires. And we are offering the best

quality food at affordable rates



Appendices

These are following appendices includes in this business plan as:

Blueprints and plans;

Blueprints and plans have been planned and developed carefully by

keeping in view the short and long term business growths.

These are the following equipment and tools available in our premises

Four sets of table’s sofa set each for our two party halls.

Around 100 chairs and 15 tables for organizing small party

Premium quality kitchens items with cutlery sets, utensils sets etc.

We are having continuous improvement plans by applying the research and

development carried out in our organization for the following advantages



BibliographyJones, L. L. (2011, 2 23). Opportunities abound in Saudi Arabia's fast groing retail market.

www.ameinfo.com. http://www.ameinfo.com/283682.html.

Magdeson, E. J. (2012, 8 27). information on Industry Growth. saudigazette.com.sa. http://www.saudigazette.com.sa.

Roberts, M. J., & Stevenson, H. H. (2013). Entrepreneurs Retail Prospects. boston, MA.


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