Pizzeria del Causamali

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Pizzeria Business Plan

Strategy and Implementation Summary

Our strategy is based on delivering a strong customer value proposition in a niche market.  The world is full of small, family-oriented towns that do not have endless opportunities for dining out.  We are looking to offer the Deauville and its surrounding areas a new choice in food options. 

Also:

  • What begins as a need to satisfy a need in the community, can eventually turn into a mainstay in the small town community. 
  • We are building our marketing infrastructure so that we can eventually reach additional towns with the same offering. 
  • We focus on satisfying the needs of small towns. 

5.1 Competitive Edge

Our competitive edge is to be first-to-the-market with pizza in a friendly, non-smoking, family-oriented dine-in experience, and first-to-the-area with food delivery.

Additionally, the location of Pizzeria del Causamali is crucial as a convenience model to customers.  Deauville residents frequent the video rental store adjacent to the restaurant.  This location is directly in the center of activity in this rural community--it is within walking distance of the middle and high schools, the local church, and within 2 miles of the existing large subdivisions and apartment complexes in the area.

5.2 Marketing Strategy

To drive customers to Pizzeria del Causamali, we will employ several techniques outlined below.

Advertising in Bolingbrooke Postde Havilland Buyer's GuideDeauville Register, and Deauville Shopping News will be used to promote the Grand Opening of Pizzeria del Causamali.  As part of the advertising, a coupon will be available to customers.  Intermittent newspaper advertisements will continue throughout the year to promote upcoming events.  Most initiatives will focus on the local Deauville papers as the target of these papers is specifically the Deauville residents.  Additional marketing efforts will come in the form of on-box coupons for future purchases.

Additionally, family-oriented events will be hosted by Pizzeria del Causamali to attract customers such as trivia nights, birthday parties, and prize giveaways.  Frequent buyer cards will be employed to entice repeat customers.  Pizzeria del Causamali will also sponsor a local Little League baseball team, and a bowling team to publicize the restaurant within the community events.

Future plans of working in coordination with the adjacent video store to offer "bundle savings" if both pizza and video rentals are purchased will be pursued within the second year of operation.

5.3 Sales Strategy

The Deauville area has expressed its need for additional restaurants, specifically a desire for pizza.  Because of this, there is pent-up demand for pizza in this area.  We will expect a high rate of sales growth within the first 3 months as this customer desire is met.

For the next year, we continue to focus on a growing presence in the community and advertising heavily throughout the community.  As a major convention center and water park open in nearby Fairchild, we will focus our attention on becoming the recognized provider of pizza to that establishment.

5.3.1 Sales Forecast

Our sales forecast assumes a modest change in annual costs to accommodate new entry into the market. 

We are expecting to increase sales modestly but steadily over the next year, which is a respectable growth rate.  The growth forecast is assumed given this is a new product for the area using new channels of availability.  We are not projecting significant change in the product line, or in the proportion between different lines. 

Based on industry averages and the absence of competition for pizza in the Deauville area, we are predicting an average of 25 pizzas sold each week night (Sunday - Wednesday).  On the weekends (Thursday - Saturday), we are estimating 40 pizzas are sold each day.  Of those pizzas ordered, we are expecting approximately 1/3 to be dine-in customers.  Those customers dining in will most likely order drinks and/or beer (on average 4 for each family).  Additionally, we are estimating that approximately one-third of the pizza orders will be accompanied by an order for breadsticks.  Our estimated average prices for each item are as follows:

  • Pizza:  $12
  • Breadsticks:  $2.50
  • Beer:  $2.50/pint
  • Drinks:  $1.70 refillable
Sales Forecast
Year 1 Year 2 Year 3
Sales
Pizza $133,900 $143,808 $153,875
Breadsticks $18,667 $19,973 $21,371
Beer $37,333 $39,947 $42,743
Drinks $50,773 $54,327 $58,130
Total Sales $240,673 $258,055 $276,120
Direct Cost of Sales Year 1 Year 2 Year 3
Pizza $42,848 $44,990 $47,240
Breadsticks $3,733 $3,920 $4,116
Beer $7,467 $7,840 $8,232
Drinks $2,539 $2,666 $2,799
Subtotal Direct Cost of Sales $56,587 $59,416 $62,387

5.4 Milestones

The following table lists important program milestones, with dates and managers in charge, and budgets for each.  The milestone schedule indicates our emphasis on planning for implementation. 

Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 1/8/2004 1/31/2004 $0 Marianne Bruxellesprot Management
Secure Start-up Funding 2/1/2004 3/1/2004 $0 Marianne Bruxellesprot Management
Site Selection 1/8/2004 2/1/2004 $0 Marion Bruxellesprot Operations
Architect Designs/Redesign 2/15/2004 3/1/2004 $500 Marion Bruxellesprot Operations
Technology Design 3/15/2004 4/1/2004 $5,000 Marianne Bruxellesprot Technical
Personnel Plan 3/1/2004 3/15/2004 $0 Marianne Bruxellesprot Management
Accounting Plan 3/1/2004 3/31/2004 $400 Marianne Bruxellesprot Management
Renovation 4/1/2004 5/15/2004 $7,800 Marion Bruxellesprot Operations
Equipment Installation 5/1/2004 5/15/2004 $2,000 Marion Bruxellesprot Operations
Marketing Plans 3/4/2004 4/30/2004 $2,500 Marianne Bruxellesprot Marketing
Grand Opening 5/1/2004 5/15/2004 $2,500 Marianne Bruxellesprot Marketing
Totals $20,700