Entrepreneurship (BUS3ENT) Assignment 3 Individual Business Model and Plan
Entrepreneurship (BUS3ENT) Assignment 3 Individual Business Model and Plan
Assignment 3
Individual Business Model and Plan
Student name:
Student ID:
Class day & time:
Tutor’s name:
Word count:
Executive Summary
The Australian population has been moving fast towards the vegan lifestyle. Various reports,
including from PETA (People for Ethical Treatment of Animals) confirm that Australia is
amongst the fastest growing vegan nations with a concern for animals. Additionally, the demand
for healthier food rich in its nutrition content is also driving the people towards a vegan lifestyle.
Vegan diet ensures a better life for animals, and its health benefits for humans are also high. A
greater shift towards veganism is expected in years to come. The shift towards veganism is
giving an opportunity to the food industry to satisfy the demand of Australian people for vegan
food option. Along these lines, the report aims to present a business plan for a vegan restaurant
business venture to be established in Mount Bay, Swan river region of Perth. The restaurant will
be named 'Veganista World'. A variety of Vegan food will be served for a vegan and health-
conscious segment of people. The restaurant will specifically serve vegan food only with added
cuisines from India, China and England.
Business Model Canvas model applied to the restaurant plan highlighted that the core value of
the business will be to serve healthy vegan food high on the nutrition value to the people with
vegan food choice. Customer relation will be the major focus of the business. Apart from serving
food at the dining, home delivery through a 3rd party agreement will be made. Further, marketing
agency for social media promotion of the restaurant will be approached. Market analysis reveals
that the millennial population is more inclined towards vegan food choices. Technology will be
highly integrated into business operations. The report also presents the organizational structure
and revenue and estimations for the restaurant.
i
Table of Contents
1. Introduction..................................................................................................................................1
2. Business Model Canvas...............................................................................................................2
2.1 Customer Segments...............................................................................................................2
2.2 Value Proposition..................................................................................................................3
2.3 Customer Relationships.........................................................................................................3
2.4 Channels................................................................................................................................4
2.5 Key Activities........................................................................................................................4
2.6 Key Resources.......................................................................................................................4
2.7 Key Partners...........................................................................................................................5
2.8 Revenue Structure..................................................................................................................5
2.9 Cost Structure........................................................................................................................5
3. Planning.......................................................................................................................................6
3.1 Market....................................................................................................................................6
3.2 Operations and Technology...................................................................................................7
3.3 Human Resources..................................................................................................................8
3.4 Finance.................................................................................................................................11
References......................................................................................................................................12
Appendices....................................................................................................................................14
Appendix 1: Start-up Costing for Veganista World – 2020......................................................14
Appendix 2: Profit & Loss for Veganista World as at 2020.....................................................15
ii
1. Introduction
According to PETA (2019), Australia tops the list of vegan countries with Australian population
heavily searching for vegan food and recipes on google (Figure 1). This indicates the rising
concern for animal lives. Further, according to Kneebone (2018), the Australian population is
highly becoming health conscious and demands to know the source of their food. This is the
main reason for them to shift to plant-based food. Furthermore, Oxford academics, Dr.
Springmann predicts that population growth, climate change and food shortages will make the
world adapt to a vegan diet by 2050 (The Guardian 2018). Thus, keeping the rising veganism
trend in mind, the vegan restaurant is chosen as the Australian-based business venture for this
report.
Figure 1: Australian population amongst top vegan food search: Source; (PETA)
The restaurant will specialize in providing vegan food options to the Australian people. Along
with the Australian staple food, the restaurant will have also include dishes from around the
world, especially from England, China and India, as the proportion their population residing in
Australia is vast (Statista 2019) (Figure 2). However, it will be ensured that only the dishes that
resonate with the vegan theme are included. The restaurant will be named 'Veganista World'
(VW) with a tag line 'Because animals deserve this world as much as humans’. Apart from this,
the nutritious value will be listed for each item on the menu. Preparation material for food and
1
beverages will be organically sourced to ensure high health benefits. Dishes will be priced at the
ongoing competitive prices. Further, as PETA (2019) suggests Perth to be a highly vegan city,
VW will start its operations from Perth, with expansion to Melbourne and Brisbane over time,
which are other cities marked high on veganism lifestyle. A building near Swan river, Perth will
be chosen for the restaurant as the region is a major attraction for locals and tourists (Western
Australia 2020). Initially, the restaurant will accommodate a maximum of 80 people.
2
2.2 Value Proposition
The core benefits provided by the business to its customers are known as the value propositions
(Osterwalder et al. 2013). The core value that VW will be providing to its customers is with
healthy vegan food high on the nutrition value. Further, other values are presented in the table
below:
Value Description
Variety of Cuisines Cuisines from India, China and the UK, will be
provided apart from the Australian food.
Organic food preparation Organically grown food will be used in the
preparation of the menu items to ensure health
benefits
Friendly and positive staff Special training to the staff serving the
customers will be given to ensure customer
satisfaction.
Custom food option Children, fitness-conscious youngsters and
adults with specific food requirement will be
given a choice to customize their orders by
directing the ingredients to be used and
cooking method.
Special offers and gifts The restaurant will provide additional
discounts on the food bill with Vegan-themed
badges on festive occasions such as Christmas.
3
discounts will be sent via e-mails and mobile text messages on their special days such as
birthdays and anniversaries.
2.4 Channels
Customers will be served directly at the physical space of the restaurant situated in the swan river
region, Perth. Customers can also call at the restaurants for making reservations and placing
home delivery orders. Further, intermediaries will be used by the restaurants to offer home
delivery of food to the customers within the vicinity of seven kilometres. Initially, 'Deliveroo’
and ‘Foodora' will be used as intermediaries, and the customers can place their orders using their
website/ application.
Physical: Physical space including restaurant sitting area and parking, dining furniture, utensils
for serving the dishes and preparation of food, inner décor of the restaurant
Human: Customer attendants, chefs, manager, and delivery and promotion partners
Financial: Venture capital introduced by the owner and financial loan from companies funding
the start-up venture
4
Intellectual
-Trademark for restaurant name and logo
-Trade secret includes maintained customer data
-Copyright website and application in future
Delivery Intermediaries: Agreement with Deliveroo and Foodora to list the restaurant on their
website and application is imperative for home delivery orders as no company website will be
there initially.
Promotion Partners: Agency providing professional social media promotion service will be
reached to popularise the venture. They will be the medium to communicate the restaurant
information such as name, location and key values to the targeted customers.
5
3. Planning
3.1 Market
As specified by PETA (2019), Australia is on the top of the list of countries going vegan in their
food choices, and the market will be open for vegan food providers. Futhers, IBIS World (2019)
estimates the rising number of vegan individuals in Australia in the next five years. Currently,
12% of the Australian population is vegan (AnimalAustralia.org 2020). Furthermore, Australia
has also been the fastest-growing markets for vegan products from 2015 to 2020, with a growth
rate of almost 10% and a market worth of approximately $83 million (Statista 2016). On the one
hand, rising growth rate in veganism is providing great opportunities to the food manufacturing
industry, on the other hand, Australian dairy and meat industry is being threatened with low local
demand, pushing them to rely on exports for sustained growth. Overall, the industry for vegan
food is very attractive and is expected to reach approximately 200 million (Murray-Ragg 2019).
Millennials, in particular, are adapting to the vegan lifestyle in Australia, which has compelled
fast-food chains and even pubs to include plant-based food options in their offerings
(ABC.Net.Au, 2019). Millennials are approximately 28% of the Australian population (ABS
2016), which makes the market all the more attractive. With the vegan trend in Australia, big
food chains such as Nandos, TGI Fridays, Mad Mex and Dominos have introduced vegan cheese
and burgers (ABC.Net.Au 2019).
Mount Bay road is the main dining attraction in the swan river region (Western Australia 2020)
and is chosen for VW to set up its dining space. Further, the area has hotels with international
6
tourists staying (Forbes 2019), making the location attractive for tourists in addition to domestic
visitors. VW will serve only vegan food with cuisines from other parts of the world, making VW
a better choice for pure vegan people.
'Interactive Tables' will be used with built-in menus displaying nutrition value and 3D picture of
every dish on the menu. Customers can view menu, place orders, play games while waiting for
the dish to arrive, add feedback and their experience and make payments (Margetis et al. 2013).
Display systems will be installed on the wall to show the order progress in the kitchen and
estimated time of delivery on the table for every open order. Free-Wi-Fi session will also be
available for the customers. Perth map will also be accessible on the interactive tables using
which tourists can view the nearby locations and traffic status to plan their trip accordingly. In
addition, Kiosks will be used to avoid waiting for lines through which visitors can track the table
availability and make table reservations.
7
Figure 3: Sample of the interactive table: Source; (colemans.com.au)
In terms of legal requirement, a license is to be obtained from the Perth Local Council for
starting the restaurant business in the city (Australian Institute of Food Safety 2016). Further,
food handling and safety training for employees is also a legal requirement in Australia. VW will
also have to comply with food safety regulations suggested by the Food Safety Authority
Australia and New Zealand (FSANZ). Further, Ingredient procurement and food preparation will
be in-house functions. Home delivery and marketing activities will be done in partnership with
expert industry partners.
8
9
A total of 10 managers will be hired with functional expertise who will report directly to the
owners. Further, six-team leads will be hired for heading the chef and personal assistance staff.
Chefs need cuisine expertise and relevant experience, while personal assistance team directly
deal with the customers. Hence, they are assigned team leaders in addition to managers. Twenty-
seven staff members will be working directly under the managers in their respective functional
areas. A total of 43 employees will be hired for various positions. Overall, the Operations
department will be responsible for providing high-end experience to the customers. Finance
department will manage the expenditures and revenues of the business and will look after the tax
and legal requirements. IT department will be responsible for the smooth functioning of the
technology within the business, including interactive tables, kiosks, inventory system and
payment systems. It is crucial since the restaurant model integrates technology intensely.
Marketing department will focus on spreading the restaurant awareness in association with the
outsourced marketing agency. Quality department will ensure food standards and hygienic
measures are maintained. Logistics department will engage in procurement and delivery
functions.
HR department will play a significant role in the hiring process, arranging training and
maintaining employee contracts. The hiring will be done in two phases. First phase will evaluate
the employee skills and experience through face-to-face interview with the restaurant owners.
Second phase will include HR negotiations for salary negotiations and employment contract.
Negotiation will decide the pay and other important employment terms. Training, bonus,
promotion and team outings will also be discussed for the motivation of employees.
Below table represents the estimated employee requirement for a period of 3 years:
10
Logistics 6 8 11
HR 6 7 11
Total 43 56 73
3.4 Finance
Start-up investment of VW will be divided amongst the three owners in the same ratio. In
addition, bank loan will be taken to fund the venture. Equipment worth $ 130700 is estimated to
be acquired, while $ 106565 is the estimated start-up cost (Appendix 1). These costs are very
high, and VW is prepared to face net loss in the initial years of operations. However, industry
attractiveness and continued business operations will cover the cost within four years of the
operations.
Estimated revenue of $209000, $300000 and $ 452000 will be earned in year one, two and three
respectively (Appendix 2). Revenues and cost of sales are expected to increase at an increasing
rate. Further, the overall profitability in the first year is expected to be negative due to high start-
up cost, less customer acquisition and high marketing costs. However, it is expected that
business profits will become positive by the end of the second year. In the third year, good net
profit of $132890 is expected.
11
References
ABC.Net.Au 2019, Veganism becomes more mainstream — but don't mention the 'V' word,
viewed 27 May 2020, <https://www.abc.net.au/news/2019-03-11/dont-use-the-v-word-why-
veganism-is-going-more-mainstream/10836504>
ABS 2016, Population by Age and Sex, Regions of Australia, viewed 27 May 2020,
<https://www.abs.gov.au/ausstats/[email protected]/Previousproducts/3235.0Feature%20Article12014>
AnimalAustralia.org 2020, 2.5 million Australians are now eating all or almost all vegetarian,
viewed 27 May 2020, < https://www.animalsaustralia.org/features/study-shows-surge-in-
Aussies-eating-veg.php>
Australian Institute of Food Safety 2016, Everything You Need to Know about Starting a Food
Business, viewed 27 May 2020, <https://www.foodsafety.com.au/blog/everything-you-need-to-
know-about-starting-a-food-business>
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S. and Namitulina, A. 2015, ‘The innovative
business model canvas in the system of effective budgeting’, Asian Social Science, vol. 11, no. 7,
pp.290-296.
Forbes 2019, The Best Hotels In Perth, Australia, viewed 27 May 2020,
<https://www.forbes.com/sites/katiebell/2019/12/27/the-best-hotels-in-perth-
australia/#1a876ad435a9>
IBIS World 2019, Seeing Green: Plant-based Products are Shaking up Food Industries, viewed
27 May 2020, <https://www.ibisworld.com/industry-insider/analyst-insights/seeing-green-plant-
based-products-are-shaking-up-food-industries/>
Kneebone, S. 2018, FMCG trends: adapting to plant-based consumer demand, viewed 27 May
2020, <https://www.playmr.com.au/blog/fmcg-trends-adapting-to-plant-based-consumer-
demand>
Margetis, G., Grammenos, D., Zabulis, X. and Stephanidis, C. 2013, ‘July. iEat: An interactive
table for restaurant customers’ experience enhancement’, In International Conference on
Human-Computer Interaction (pp. 666-670). Springer, Berlin, Heidelberg.
12
Murray-Ragg, N. 2019, Australia Is The 3rd Fastest Growing Vegan Market In The World,
viewed 28 May 2020, <https://www.livekindly.co/australia-vegan-market-growth/>
Osterwalder, A., Pigneur, Y., Oliveira, M.A.Y. and Ferreira, J.J.P. 2011, ‘Business Model
Generation: A handbook for visionaries, game changers and challengers’, African journal of
business management, vol.5, no.7, pp.22-30.
PETA 2019, Australia Ranks Number One in the World for ‘Vegan’ Searches in 2018, viewed 27
May 2020, <https://www.peta.org.au/news/australia-ranks-number-one-in-the-world-for-vegan-
searches-in-2018/>
Statista 2016, Sales growth of the vegan market between 2015 and 2020 worldwide, by country*,
viewed 27 May 2020, <https://www.statista.com/statistics/562911/global-sales-growth-of-the-
vegan-market-by-country/>
Statista 2019, Number of foreign born population in Australia as of 2018, by country of birth,
viewed 27 May 2020, <https://www.statista.com/statistics/594722/australia-foreign-born-
population-by-country-of-birth/>
The Guardian 2018, The unstoppable rise of veganism: how a fringe movement went
mainstream, viewed 27 May 2020,
<https://www.theguardian.com/lifeandstyle/2018/apr/01/vegans-are-coming-millennials-health-
climate-change-animal-welfare>
Tran, J., Hol, A., Nguyen, Q.V. and Simoff, S.J. 2017,’ Fine Dining Restaurant Framework
Development and Survey’, In ICE-B, pp. 83-90.
13
Appendices
Appendix 1: Start-up Costing for Veganista World – 2020
EQUIPMENT/CAPITAL
START-UP COSTS Cost ($) Cost ($)
COSTS
Registrations Business purchase price -
Business name 300 Franchise fees -
Licences 100 Start-up capital 50000
Permits 275 Plant & equipment
Domain names 170 Vehicles 18000
Trade marks/designs/patents 300 Computer equipment 25000
Vehicle registration 150 Computer software 11000
Membership fees 590 Phones 1000
Accountant fees 2500 Fax machine 200
Solicitor fees 2500 Security system 3500
Rental lease cost (Rent
Office equipment
advance/deposit) 5000
Utility connections & bonds
Furniture
(Electricity, gas, water) 2000 17500
Phone connection 100 Shop fit out 4500
Internet connection 1250
Computer software 4800
Training 850
Wages 35000
Stock/raw materials 20000
Insurance
Building & contents 4200
Vehicle 480
Public liability 550
Professional indemnity 550
Product liability 450
Workers compensation 3250
Business assets 5000
Business revenue 1200
Printing 3000
Stationery & office supplies 1500
Marketing & advertising 10500
Total equipment/capital
Total start-up costs $106565 $130700
costs
14
Appendix 2: Profit & Loss for Veganista World as at 2020
209000 300000 452000
Sales
90000
68000 80000
less cost of goods sold
More… - - -
$ $
141000 220000 $362000
Gross profit/net sales
Expenses
3200 3200 3200
Accountant fees
13000
Advertising & 10000
marketing 12000
1000 1000
Bank fees & charges 1000
4000 4000 4000
Bank interest
Credit card fees 1000 1000 1000
Utilities (electricity, 5000 5000 5000
gas, water)
1100 1100 1150
Telephone
Lease/loan payments 5000 5000 5000
28000 28000 28000
Rent & rates
3200 3200 3300
Motor vehicle expenses
5000 4500
Repairs & maintenance 4000
750 960
Stationery & printing 850
Insurance 8000 8000 8000
15
Superannuation -
Income tax 50000 52500 61000
Wages (including 80000 90000
PAYG) 85000
More… -
$
213850
Total expenses $205250 $229110
NET PROFIT (Net
Income) $(64250) $6150 $132890
16