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A short view of the company

Green Apple is a new organic food restaurant which is being established at 30, Al Khalidiyah shopping mall, 3rd floor of Abu Dhabi in UAE. The objective of building such form of organization is to make acknowledged the huge population of the country with the exclusive feature and flavor of natural foods as well the opportunity of being healthy with such habit of meals. For this, the restaurant will offer several healthy and delicious food items, like- chicken, mutton and beef burger, pizza, pastries, noodles, soup, hamburger, juice, and all other forms of Western, Indian, Asian, Dessert, and Subcontinental foods which will be prepared by complete natural and herbal ingredients that will be safe for health by assisting the internal protective organs from diseases and nutritive demand of the body. It will be established based on a partnership agreement and will need $800000 to run the operation for the forthcoming 3 years. The restaurant will use a rented area at the specified space of mentioned shopping mall for serving its customers with an adjusted cooking room. Decorated with high-quality furniture and other tools for cooking, the restaurant will run on the motto of Taste for a healthy life.

Executive summary

The business plan of Green Apple restaurant is going to focus on the nook and corners of introducing a new organic food restaurant at the Al Khalidiyah mall location in Abu Dhabi, UAE. It is part of the vast hotel and restaurant industry of UAE which is particularly dominated by foreign giant food retailers as McDonalds, KFC, Burger King which pose some of strengths, weaknesses, opportunities, and threats while the industry background will also be explained by a PEST analysis showing its political, economic, social and technological impact and forces in the national context. Venture background will explain the major factors of the restaurant including the size of 35 square meters, location, and offered products and facilities, and entrepreneurs background. The marketing plan will be effective to understand the total marketing budget of $120000, macro-environmental discussion, the composition of a target market, financial goals, strategy, competitive analysis by 5 forces model, distribution of total budget, the position of the restaurant by a BCG matrix at the questioning point and finally, brand positioning map. Then facilities plan will describe the physical placement of the venture and the computation of average customers a day. The production plan is an integral part of this shop as the best quality food can attract the most loyal customers. With a short briefing of preparing several delicious items, the operational plan will explain salary structure as well as employment procedure by explaining the general and special responsibilities of the HR department of the shops perspective. The organizational part will elaborate the restaurant as a partnership agreement by revealing the task of the major three departments. The risk assessment part is helpful for indication some major risky issues that Green Apple may face along with some remedy suggestions against it. The financial plan will verify the monetary feasibility of the venture by computing the projected income statement, balance sheet, and break-even portrait. The implementation timetable will explain the possible timing to start the journey of the venture by indicating the early part of the next year. In this way, this plan will elaborate on each of the mentioned segments.

Industry background

The worlds huge populations are turning to move their interest in organic foods day- by- day which are prepared by maintaining specific standards of production. That means such foods are grown without the utilization of any types of artificial inputs like- artificial methods, chemical ripening, modified genetic ingredients, etc., and are not polluted by industrial or humans with an association of safety from food additives. In the case of livestock, they are to be geared up with a fresh and healthy diet as well as without antibiotics and growth hormones.

For those distinct features of organic foods, the year 2008 has revealed the success of such food items sales for 1- 2% around the world for which this industry has been rapidly increasing in both developed and developing countries with a promising jump of $23 billion to $40 billion recorded for the year 2004 and 2006.

Additionally, organic foods contain higher nutritional values, health safeties for consumers of all ages as well as taste approved as better than any synthetic food. Like other parts of the world, UAE is also showing an increased interest in outsider restaurants that will serve for both taste and health issues of people. But unfortunately, the last three years have resulted in substantial growth of only 25% of this industry with an empty placement of any local organic food restaurant. The US fast-food restaurants are playing a dominant role in UAE as statistics show that there exists above 90% of the non-traditional market and among 3100 restaurants, 94% of fast-food restaurants are operating highly successful operations. Thus, this market is widely associated with international franchising boom, like- McDonalds, Burger King, Pizza Hut, Kentucky Fried Chicken as well as local participants, like- Shawarmas and breasted chicken outlets as a representative of modern and historical fashion in food.

Generally, the environmental analysis can be explained by the following influential variables:

  • Demography and population: The year 2004 has shown the number of UAE population by 4.3 million with a growth rate of 1.6% per year while the selected zone Abu Dhabi is the top populated area by scoring the total population of 1.4 million. The entire Emirates has been composed of Dubai with 1.2 million, Sharjah 570000, Ajman 200000, Ras Al Khaimah 190000, and finally, Umm AL Quwain 55000 of the population has been counted by the 2005 statistics. Establishing own self as one of the most urbanized countries in the world having 88% people living in the urban area, UAE places 96% people as Muslims and 4% as other religious groups. Significantly, the country has a diversified population of different countries in the world including India of 1.5 million as the highest percentage of the expatriate. The population study of UAE can be observed by the following chart:
Percentage Nationality
13.48 Local
36.46 India
12.68 Arab from other Nationality
12.67 Pakistan
9.08 Bangladesh
4.31 Philippine
2.33 Other Asian Nationality
2.07 Europe & Australia
1.61 Sri Lanka
1.54 Iran
1.44 Nepal
1.12 Different African Nationality
0.64 North America
0.50 China
0.06 South America
100% Total

Among the seven emirates of UAE, Abu Dhabi owns the largest population which represents itself as one of the most prominent markets of organic food items.

  • Economy: UAE has a basic export-oriented economy of oil that occupies an average per capita income of $44000 while the restaurant industry is acting as a major contributor to this rich economy since it shares 17.2% of the non-well GDP.
  • Technology: Especially, the world-class restaurants are running with an updated initialization of technological development in preparing items, order by online, digital signage, and offering fast services.
  • Legal concern: It includes future legislation affecting product, price, distribution, and promotion strategy. In the case of the food industry, the local legal and religious law certainly restricts eating pork or drinking alcohol.
  • Industry demand: The demand for restaurant food items, especially which are purely natural is now reaching a close saturation point. For this, a survey study has shown that the restaurant outlets is increasing growth of 180% in the country, for which many companies are now planning to open new branches to meet this extra demand. Similarly, in this age of several diseases like- obesity, blockings of the heart, diabetics and another sort of fatal causes, people are more demanding for healthy and natural food potentials.
  • Competition: Recently, UAE doesnt have any restaurant for organic food only rather it has several world-class famous and domestic fast- food centers which can be regarded as strong competitive forces.

So, the entire condition of this industry can be observed by the following SWOT and PEST analysis:

SWOT analysis of food Industries

SWOT analysis of restaurant industry
Graph: SWOT analysis of restaurant industry

Strengths: The restaurant industry of UAE occupies several strong points:

  • The best facility of this industry is the huge population of UAE that is recommended as worlds one of the most affluent one with an approximate yearly growth rate of 5.7%.
  • The country is the center of worldwide tourists as well as business visitors amounted to 1.5 million that is very much helpful to raise the demand for tasty and healthy organic food restaurants.
  • Since several women are entering the external job life, the need and scope of homemade and dining out food are decreasing with the increased need for restaurant meals.
  • The mechanism of producing organic foods with the use of energy-saving technologies and packaging of recyclable and biodegradable elements seems to be very much effective to some customers who are generally health-conscious and ready to pay any amount to get that.
  • Having the significant value dining option.
  • Positioned as a convenient meal in the general customers mind.
  • It is also suitable for highly price-sensitive customers since each of the existing companies tries to offer numerous items at a rate that is somewhat below eating at home.

Weaknesses: Some weaknesses of this industry are below:

  • Major local and international restaurants in UAE take little or no concern on the rural areas which can make them deprived of earning a major portion of total revenue.
  • Sometimes restaurant meals are perceived as the catalysts of obesity, fatness, or gastric.

Opportunities: The restaurant food market is a subject of huge opportunities nowadays as:

  • The young generation is becoming the largest target customer group since they consume merely 20% of fast-food meals a day which can result in more or diversified firms like organic food in the future.
  • People of all ages ranging male, employed, and middle  age are now showing an increased interest in outsider ready-made food.
  • The increasing economic pressure of the economy tends to change peoples outlook on the negative impact of restaurants.
  • Strong brand perception of global restaurants offers status, momentum, performance, and affinity in the minds of customers which can be followed by domestic companies to capture the local market to become highly profitable like them.
  • The recessionary period can also serve as a major opportunity to launch new restaurants.
  • Organic food restaurants are prominent to gain the largest scope in this business since they can offer new food options which can promise healthy life as an agent of obtaining frequent customers who want tasty and nutritional food.
  • The industry is also experiencing growth by the offering of home delivery free of costs that can be afforded and favored by various consumers having different budget statuses.

Threats: A few threats have also been recognized in this regard as following:

  • The religious background of UAE restricts some items to be used on the menu which can limit the consumers of other religions and tourists of several countries of choosing such restaurants with an additional threat of diminishing the total volume of sales.
  • Exposition and images of the established foreign restaurants may act as a major threat for expanding any domestic fast- food and restaurant business.
  • Over emphasize on the continued development and the contradiction of not bearing the promise accurately may lose customer confidence and fall of its growth.
  • The clutter of a huge number of similar and synthetic food restaurants has already established a negative image in customers minds.

PEST analysis

  • Political factors: The political situation of the entire 7 emirates of UAE is stable enough to operate this sort of business whether it is national or outsider. Nowadays, local governments and banks are also very much keen to support domestically own businesses.
  • Economic factors: The hotel and restaurant industries are contributing about 17.2% of incomes of the non-well GDP of the country.
  • Socio-cultural factors: 96% of people of the country are Muslims who possess a positive attitude to the famous global brands like- McDonald, Burger King, Pizza Hut, etc. for which those organizations can earn a huge profit from this zone. Fueled by the new contribution of the women workforce along with traditional employees, students or several expatriate professionals, UAEs major population is exposing their demand on prepared food featured with nutrition and safety. Since the religious background influences the consumption of food strongly, generally the companies maintain this social boundary in their diversification and services. Additionally, a dramatic concern for health purposes can be observed in people of various ages which are drawing an optimistic chance for outsider food clubs.
  • Technological factors: The industry is highly experiencing extended technological development in the placement of information by an easy-to-read graphics on packaging, online ordering, digital signage, modification in payment and re-order, etc. those are very much helpful for prompt and upbeat service along with dietetic factors for maintaining a good sale.

Venture background

Green Apple restaurant is an organic food eating place which is determined to orient a new food habit of customers that is fully different in the present context of the restaurant business in UAE since the country does not have this type of restaurant. Enlightened by using natural ingredients in all of its delicious formal and exceptional recopies, the companys objective is to provide Taste for a healthy life to all of its customers. Green Apple will be located at 30, Al Khalidiyah Mall, 3rd floor, Abu Dhabi in UAE, and will serve several items including beverages, breakfast, fruits, desserts, and other sorts of fast- foods. Other information about the restaurant is following:

Target customers

Green Apple is targeting general employees, children, working women, mid-aged workers, expatriates, and most optimistically young generation who tend to go to schools, colleges, and universities. Customers who come to Al Khalidiyah Mall for shopping purposes are also involved in the list of target customers of the company. All sorts of a generation who have been targeted will have a general purpose of eating restaurant meals containing fewer calories and more fitness to lead a healthy life.

Size and scope of the restaurant

The restaurant will initially start its operation with $800000 in cash and it will be operated in a large rented shop of 35 square meters on the 3rd floor of Al Khalidiyah Mall. Placing the food zone for serving and entertaining customers, the restaurant will also have a kitchen room inside the shop where the experienced and trained cooks will prepare various snacks and routine food items with fresh organic vegetables and meat. Being facilitated with all of the amenities of a commercial zone, like- adequate parking facility, the opportunity of expanding the branch at the same or top floor of the mall and sufficient sewerage, plumbing, and electricity facility, air conditioning, elevators, and lifts that the venture will use several competent and efficient workforce for maintenance.

Offered food items

Green Apple is planning to serve many delicious and nutritional food items at a reasonable rate that will enthusiast customers to come back for enjoying such flavor repetitively. Several food items that the company enlists in its menu are as below:

Casual fast- foods

It includes:

  • Chicken Nuggets
  • Southern Style Chicken Biscuit
  • Asian and Southern-style chicken sandwich
  • Big Mac
  • Snack Wrap
  • Beef and Mutton Hamburger
  • Fried Chicken, Chicken Soup
  • Buffalo Wings, Tandoori Chicken
  • Butter Chicken
  • French Fries
  • Chips
  • French- fries potatoes
  • Deep-fried potatoes
  • Double Cheeseburger
  • Noodles Pastry cake
  • Vegetable roll
  • Chicken and Beef bon
  • Bakery
  • Pizza and more.

Salad

It will deliver:

  • Green or Garden Salad
  • Entree Salad
  • Bean Salad
  • Chicken Salad
  • Chef Salad
  • Coleslaw
  • Congealed Salad
  • Crab Louie Salad
  • Chinese Chicken Salad
  • Antipasto salad
  • Fruit Salad
  • Fruit Salad
  • Eggplant Salad
  • Greek Salad
  • Ham Salad
  • Larb
  • Israeli Salad
  • Pasta and Potato Salad
  • Panzanella
  • Russian Salad
  • Somen Salad
  • Som Tam
  • Shopska Salad
  • Tabouli
  • Taco Salad
  • Tuna Salad
  • Watergate Salad
  • Waldorf salad and Special Arabic Salad.

Drinks

No alcoholism is the first value of Green Apple. Other than alcohol, it will serve many other drinks like- Coffee, Tea, drinkable Yogurt, low-fat Milk, Fruit Juice, Vegetable Juice, soft drinks like- Coca- Cola, Pepsi, Thumbs Up, Faluda, and other types of local beverages.

Breakfast

The typical morning destination will consider Premium Roast Coffee, sliced fruits, eggs, salads, and juice. For the local population, the special attraction will involve the most popular breakfast in the Arab zone like- pita bread that is dripped in fresh labneh which is one kind of Yogurt and oil, and zaatar which is a popular Middle- Eastern Spice Mix. Another item will be Mashriq composed of olives, eggs, cheese, and beans of fava.

The vegan diet

Green Apple is also concerned with vegetarians who want to avoid any types of flesh and eggs in their daily menu. For this, it will arrange the vegan diet which is on kind of vegetarianism omitting all sorts of animal goods like- dairy goods, meat, poultry, fish, eggs, and honey but only use vegetables like lettuce, rocket, spinach, cucumbers, peppers, onions, mushrooms, carrots, beans, celery, radishes, avocado, red onions and so on. Further, it will also arrange Lacto- vegan diet other than eggs, ovo- vegan diet excluding dairy but not eggs, and Lacto- ovo vegan diet involving both dairy items and eggs.

Others

Simultaneously, Green Apple will also serve Western, Indian, Asian, Dessert, and Subcontinental foods at the regular serving hour.

Services

The Company will offer many other services rather than general restaurant service only. Such as:

  • Use of nuts and bolts methodology for speeding up sales and services.
  • Use of easy-to-read graphic structure on the packages to know the customers adequate information of the item.
  • Home delivery service.
  • Use of electronic order and delivery system.
  • Use of tired menu approach.
  • Additional sale of exclusive home-designed gift cards as an easy and convenient root of payment that can be given to friends and family on a specific occasion.
  • Reservation service of the food zone for a tiny birthday or anniversary parties entire agreement of serving customized chosen menu at reasonable fees.

Personnel and office equipment

Green Apple will need some cooking equipment like- electric heater, oven, blender machine, toaster, pressure cooker, hot pot, refrigerator, electric burner, and other items essential for cooking and garnishing foods as well as entertainment, drive-thru, menu boards, and POS equipment. At the same time materials like- chairs, tables, fans, computers, carpets, desks, vases, cookeries, and other materials for the interior and exterior design of the restaurant will be essential.

Suppliers and supply chain condition

Green Apple will import each of the raw materials which include fresh organic vegetables, chicken, mutton, eggs, spices, and other ingredients of preparing several dishes from some specific highly regulated firm houses of the United States and Japan which have obtained prestigious certification for producing such foods within their national boundary. Thus, it will be highly committed to buying from such vendors for not only accomplishing the required safety in food but also maintaining sustainable social responsibility.

Background of the entrepreneurs

Green Apple will be initiated by three entrepreneurs named Abu Helal, Hussein Ali, and Mir Hanif who have recently completed their graduation in Tourism and Hotel Management from ABC University of UK. Each of them is Arabic by birth and take the formulation of such type of business through the enthusiasm from their academic courses by analyzing the necessity of a purely modified organic food restaurant in UAE since it lacks a significance and dominance of domestic restaurant which can demonstrate a bigger opportunity for them of earning a better profit with an auxiliary view of serving the local community with a health consciousness issue.

Graphical viev of Green Apple

Marketing plan

The marketing of Green Apple will be carried upon by the marketing department of the restaurant. The delivered products will be typical fast- foods, salad, juice, beverage, breakfast, vegan diet, Western, Indian, Dessert, etc. types of foods which will be completely prepared by natural flavor without any artificial color, taste, or ingredients. The restaurant will provide products ranging from $2 to $120 and formal services ranging from $200 to $300. Green Apples main objective is to establish itself as a food house for serving an exclusive and extraordinary assortment of numerous dishes made with completely organic ingredients which will be entirely different in the environment context since there are no types of restaurants like in the UAE at present. Thus, the marketing department will have to prepare a marketing plan to serve, categorize and customize the required menus. Running on the initial capital of $800000, the venture can be expected to reach a break-even point at the end of the first year and thus will be able to run after profitability in the second and third years.

Market situation

The hotel and restaurant industry is causative by 17.2% in the non-commercial GDP of the country. The selling of organic items is expected to increase over the next few years. The primary customers are expected to be middle-income students, workers, employees, senior citizens, working women who want to keep themselves fit by eating harmless natural foods for both body fitness and regularity in maintaining health but do not invest a high volume of money for habituating themselves in external meals. It is also a better opportunity for the high-class executives and couple to have a nice lunch or dinner in an attractive and splendid environment with an extra motive of shopping at Al Khalidiyah mall.

Meals to be served

Green Apple has been planned to serve some delicious and nutritious food items involving general bakery foods, snacks, multi-category salad, dessert, drinks, and other domestic and internationally popular items excluding alcoholism as well as pork.

Competitive situation

There exist almost 3100 restaurants in UAE while 94% consists of fast- food shops only with a very strong dominance on the total market. Additionally, most of the restaurants of the country are the mega foreign market leader. So, in the macro sense, Green House is going to face intense competition from such franchising boom as McDonalds, Burger King, Pizza Hut, and Kentucky Fried Chicken along with some domestic competition from Shawarmas and breasted chicken formed in USA followers. Having a worldwide recognition as the best food- server, many of those have so many exclusive competitive advantages like- serving the free home delivery reasonable price range matching to the income of all sorts of population.

Green Apples major competitors can be analyzed by using Porters 5 forces models as below:

5 forces model of competition
Graph: 5 forces model of competition

Threats of new entrants: UAE restaurant market is not exceptional in this case that it is unlucky as the newcomers can be somewhat threatening to incumbents. For this, the chances of the possibility of some inexperienced new entrants may deteriorate the market with lower quality of meals that will hamper the total profitability of the market in terms of customers loyalty as a great threat for both customers and companies. The entry of a new company will have two major functions, as:

  • Entry barriers surrounding economies of scale.
  • The expected level of retaliation from present firms.

Bargaining power of suppliers: Green Apples major organic raw materials suppliers will be some dedicated firm houses of Japan and the USA. If those firms can expose power over the venture, it will be troublous to recover the cost as well as the price which would certainly reduce profitability.

  1. Bargaining power of buyers: This includes the demand for better quality, quick services, and other supportive factors at a cheap rate.
  2. Threats of substitute products: Although there are no absolute substitute organic foods are available in UAE domestic market, indirect substitution may be attractive in some ways by delicious and colorful food items available at some recognized national and franchise food shops.
  3. Rivalry among competitors: Such competition may be seen among national vs. international and mega vs. small retailers.

Distribution situation

Professional food services will be provided by the single shop located at Al Khalidiyah mall primarily. But it will consider serving such services through other branches at various locations of the country based on public demand.

Macro-environment situation

A large number of women population has been started to take part in the workforce. Based on a recent survey, it can also be assumed that a lot of governmental and non-governmental educational institutions contain huge students who have to pass most of the time outside the home depending on container or canteen foods. At the same time, the huge number of business visitors and tourists are counted as about 1.5 million as the regular customers of such kinds of food shops. Above all, the extra awareness for maintaining health by taking nutritive elements in the regular diet has become the major concern of todays all ages of the population. As the market approaches saturation, efforts must be taken to convince this huge population to have their appropria

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