«12-2013 Business Plan for a Korean Fine-dining restaurant in Las Vegas Jihoon Kim University of Nevada, Las Vegas Follow this and additional works ...»
While a fine-dining Korean restaurant would market itself through a combination of traditional marketing, online marketing, and social media marketing, service strategies for customer satisfaction should be established as part of a marketing and advertising strategy.
customers who were satisfied with the service. Quality service satisfies customers and makes them buy more often. Customer satisfaction and loyalty play a role in increasing profit (Tschohl, 2000). Accordingly, upscale Korean restaurant managers need to pay attention to service strategy and know what they have to do to create customer satisfaction. This will not only increase the number of regular customers but also encourage their increased patronage. Furthermore, satisfied customers will talk about the restaurant to their friends, family, and colleagues. In fact, word of mouth is the prevalent source of information about Asian restaurants, although restaurant guides are also important (Jang & Ha, 2009). Customers who bring in new customers are particularly beneficial to a growing business — customers thus become part of a company’s marketing department (Reichheld, 2003).
Starting a restaurant is very risky. While 518,500 new restaurants began operations between 2008 and 2009, 680,716 restaurants closed during that period (U.S. Small Business Administration’s Office of Advocacy, 2009). There is a 60 percent chance that a restaurant will close within three years of opening (Zagat & Zagat, 2011). Therefore, a restaurateur must examine the potential challenges his business will face. Yet, some restaurants do manage to become profitable. What might be factors that lead to their success, in the midst of such odds? A business plan can provide companies and investors with information about business requirements, market and competition, company management and structure, and profitability (Schnieder, 1998).
To understand the restaurant business as a whole, restaurateurs need to utilize business plans in marketing and sales, and they must comprehend the financial and legal obligations that come with opening and operating a restaurant. “While a business plan doesn’t guarantee automatic
Hanjeongsik Hanjeongsik is a full-course Korean meal with an array of savory side dishes. The most lavish of hanjeongsik tradition originated with the banquets served in the royal palaces or the homes of aristocrats. Usually the course starts with a cold appetizer and gruel, and the main dishes include dishes mixed with seasoning either grilled, boiled, steamed, fried, or salted. Hot pots are included as well, and after the meal traditional punches such as Sikhye(sweet rice punch) or Sujeonggwa(cinnamon-persimmon punch) and other desserts may be served. Actually the types or dishes served in the hanjeongsik vary significantly according to the season or region (Korea Foods, 2013)
Biwon is a fine-dining Korean-themed restaurant with operations in Las Vegas, Nevada.
The restaurant’s name, Biwon, comes from a Korean word meaning secret garden. Biwon will focus on the individual with an annual income exceeding $60,000; while providing quality food and exemplary customer service.
Biwon’s physical structure will be a single-level building located within a high-end luxury resort. It will consist of 5,000 square feet, 3,000 of which will be earmarked for dining.
The remaining space will consist of the greeting and waiting area for patrons, bar, prepping area, cooking stations, storage area, a restroom and lunchroom for staff, and an office for management.
Start-up funds secured from investors will be utilized for facility improvements, furnishing the facility, purchasing equipment to prepare and store products, working capital to cover operational expenses, implementing traditional and online advertising necessary to market business prior to its opening, and purchasing of goods and services.
The market for a high-end Korean-themed restaurant in Las Vegas is there due to the lack of fine-dining Korean-themed restaurants outside of barbecue establishments, the influx of individuals from its target demographic, and the recent surge in international tourism from Asian countries. As a result, Biwon made the determination of entering the Las Vegas market as its first.
Over the first 12 months of operation, Biwon will offer a wide selection of authentic Korean dishes for its patrons. Revenue will be generated from the sales of its products to patrons.
A portion of profits generated from the first years will be earmarked for future expansion.
Facility Biwon will be located inside a high-end luxury resort and casino on the Las Vegas Strip.
Biwon will feature a stylish and modern decor with a touch of oriental beauty, and traditional Korean tableware. The restaurant facility will encompass 5,000 square feet of space, 3,000 of which will be utilized for dining. The seating arrangements will consist of a combination of table seating and booth seating, promoting various levels of intimacy; from a party of 2 to a party of
20. The furnishings inside the facility will be inviting to the patron. The ambience of South Korea will be replicated with wooden chairs, marble tables, hardwood flooring, and genuine brick walls. Biwon will be able to seat between 180 to 200 patrons comfortably.
Hours of Operation
Biwon’s hours of operation will consist of the following:
Sunday – Thursday: 5:30 p.m. – 10:00 p.m.
Mission Biwon’s mission is to become the pre-eminent Korean-themed fine-dining restaurant in the Las Vegas Metropolitan area, while establishing the foundation for future expansion throughout the United States and abroad.
Biwon’s primary objectives are as follows:
• To generate annual revenues in excess of one million dollars
• To expand its operations from a single location to multiple locations in affluent areas within large cities throughout the United States and beyond
• To become an efficient, successful, and profitable business Goals
• To achieve gross sales of $1 million within the first 12 months of operation
• To attain a gross profit margin of 10% within the first 3 years of operation
• To open a free-standing restaurant in Summerlin within 3 to 5 years
• To open additional restaurants in Los Angeles and New York City within 5 to 7 years
• To establish working relationships with vendors indicative of Biwon’s participation in the fine-dining segment of the restaurant industry Keys to success After financial obligations are met, Biwon will allocate a percentage of its revenue to
each of the following areas in order to achieve and maintain success:
• General upkeep and maintenance of the restaurant
• Research and development of new products and offerings
• Profit-sharing program with personnel (management, salaried, hourly, and part-time)
Personnel For the first year of operation, Biwon will hire staff equal to the task of operating a highend Korean restaurant. Management will ensure it hires employees who are service oriented with excellent ethics and attitudes. In addition, management will hire experienced chefs with resumes including several years at well-known high-end restaurants. Customers will pay for authentic cuisine, which inexperienced chefs would be unable to provide. Listed below are the job descriptions of the positions Biwon will retain in conducting its operations.
• President: The President will be responsible for overseeing all Biwon’s personnel, as well as establishing the policies of the restaurant and procedures for each department.
The starting salary for the President to start will be $75,000/year.
• Executive Chef: The Executive Chef will be responsible for supervising all Biwon’s personnel, and monitoring the financial progress of the company on a regular basis.
The Executive Chef will report monthly to the President the operational and financial status of the company. The starting salary for the Executive Chef will be
• Shift Manager: The Shift Manager will provide operational support for the Executive Chef outside of the food preparation area. The Shift Manager will supervise the delivery of all items to patrons, and ensure that patrons are enjoying their customer service experience. The Shift Manager will also assist in preparing and delivering food on an as-needed basis. The starting salary for the Shift Manager will be
preparation and delivery of all menu items, as well as prepare the majority of dishes for the patrons. The starting salary for the Sous Chef will be $44,000/year.
• Line Cook: The Line Cook will be responsible for prepping ingredients for all menu items, as well as assembling the dishes for Biwon’s patrons. The Line Cook will also provide culinary support to the Sous Chef and Executive Chef. The starting hourly wage for the Line Cook will be $14.
• Prep Cook: The Prep Cook will be responsible for prepping of all food products prior to delivery. The Prep Cook will also be responsible for general upkeep of the backend area of the restaurant, including (but not limited to) cleaning of prepping area, stocking of food products, etc. In addition, the Prep Cook will provide culinary support to the Line Cook on an as-needed basis. The starting hourly wage for the Prep
• Food Server: The Food Server will be responsible for receiving orders placed by Biwon’s patrons, as well as the delivery of orders and the subsequent collection of monies. The starting hourly wage for the Food Server will be $8.25 (not including gratuity).
• Server Assistant: The Server Assistant will be responsible for the clearing and cleaning of seating area following the departure of a patron, and properly preparing said area prior to the seating of a patron. The Server Assistant will also stock all items within the patron’s reach (napkins, straws, condiments), and provide beverage support as needed. The starting hourly wage for the Server Assistant will be $8.25 (not including gratuity).
greeted and seated in a timely fashion, accommodations are sufficient prior to securing reservations, and facility is properly staffed. The starting hourly wage for Server Assistant will be $10 (not including gratuity).
Biwon is a member of fine-dining segment of the restaurant industry, with emphasis on providing authentic Korean cuisine with an American flair. Over time, Biwon will become the first of its kind in Las Vegas, and seek to expand its reach beyond Nevada. Prior to opening a fine-dining Korean restaurant, an analysis of the nearby neighborhoods as well as a determination of who will be the new Korean restaurant’s customers is needed.
Industry Scope According to the National Restaurant Association, the restaurant industry is estimated to generate over $661 billion in 2013, accounting for nearly 4% of the entire Gross Domestic Product (GDP) in the United States (National Restaurant Association [NRA], 2013a). In September alone, restaurant sales hit a record $46.4 billion, surpassing the previous record of $46.1 billion earlier the year (U.S. Department of Commerce, 2013). Throughout the last 50 years, the restaurant industry has increased in revenue exponentially, mirrored by the drastic increase in the percentage of money spent on food by individuals dining out versus staying in.
Since 1980, revenues generated from the industry have quintupled, from $120 billion to the estimated figure of $661 billion for 2013. This increase in revenue correlates with the uptick of the percentage of money spent on food by individuals eating out versus dining in. In 1955, only 25% of money spent on food was allocated to dining out. In 2013, that figure is estimated as
Existing Market Las Vegas is the largest city in the state of Nevada, home to over 596,000 residents. Las Vegas is one of the top U.S. tourist destinations for domestic and international travel, with nearly 40 million people visiting the city last year. Along with Chicago and Orlando, Las Vegas is one of the top 3 destinations for conventions, business, and meetings in the United States (Cvnet, 2013b). In 2012, over 21,000 conventions and meetings were held in Las Vegas, with attendance approaching 5 million (Las Vegas Convention & Visitors Authority [LVCVA], 2012a). In terms of accommodations, hospitality amenities, nightlife, entertainment, and fine-dining, Las Vegas has very few peers. Fifteen of the twenty-five largest hotels in the world are located in Las Vegas, specifically, on the Las Vegas Strip (Wikipedia, 2013). Its 152,000+ hotel rooms gives Las Vegas the top ranking for rooms in the United States, exceeding its nearest competitor (Orlando with 144,125) by more than 5%. More than 41% of the total inventory of rooms is located on the Strip (Cvnet, 2013a). Along with New York, Las Vegas has the most AAA Five-Diamond issued hotels in the United States with eight. Outside of Chicago and New York, Las Vegas has the most AAA Five-Diamond restaurants in the nation with four (American Automobile Association [AAA], 2013). Las Vegas is also home to 7 of the 10 top grossing nightclubs in the country, with 2 earning more than $80 million last year (Domanick, 2013). Entertainment venues are plentiful, with several dedicated to world-renowned artists; while the larger ones host major sporting events, shows, and concerts on a regular basis.
Restaurant industry in state of Nevada. According to the Nevada Restaurant Association, the restaurant industry in the State of Nevada is projected to generate $5.8 billion in revenue in 2013, and employ 17% of the state’s workforce in 5,165 locations. As a whole, the