Arcadia Bay Seafood

Table of Contents

1.0)        Description Of Business        2

2.0)        Marketing Plan        3

2.1) Introduction:        3

2.2) Expansion and Distribution:        3

2.3) Advertising:        3

2.4) Pricing:        4

3.0)        Operating Plan        5

3.1) Introduction        5

3.2) What we do        5

4.0)        Environmental plan        7

5.0)        Financial Plan        8

5.1) Capital Requirement        8

5.2) Master Budget        9

5.2.1) Projected Sales Budget        9

5.2.2) Projected Purchases Budget        9

5.2.3) Projected Income Statement        10

5.2.4) Cash Budget:        11

5.2.5) Projected Balance Sheet        13

6.0) Executive Summary        15

Appendix:        16

1. Description Of Business                                        

Arcadia Bay Seafood is a retail seafood business organized as a private limited company, owned by Jeffrey Seo, Ramith Samayamanthree, Daniel Callaghan and Jay Lubach who all form the management team. They work collaboratively in decisions-making and are motivated to make the business prosperous. The management team hires 5 employees to produce and sell the high-quality, authentic and affordable dishes at the outlet which include:

1. Fresh Seafood Salad:

• Standard
• Premium

1.  Barramundi fish and chips
2. Arcadia Bay Buffet

• Standard
• Premium

Located in the mall in the growing community of Virtual lakes, a suburb north of Brisbane, the 25,000 and counting population embodies the management’s intent of developing a community-based business with vast ambitions. Arcadia Bay Seafood targets not just the many middle-class families in the community, but anyone conscious of supporting an environmentally friendly business as well as local fishermen and farmers.

Arcadia Bay Seafood has the following objectives:

• To spread our mission of sustainability and affordability throughout our community and surrounding suburbs through effective marketing and development.
• To expand our business in 3-5 year time span by opening more shops along the coastline through obtaining a loan
• To commence a delivery service

• To enhance the current products and introduce new items such as seasonal menus which coincide with our Unified Safe Fisheries Management (USFM) commitments

1. Marketing Plan                                                      

2.1) Introduction:

Arcadia Bay Seafood currently offers a wide range of seafood, sold in the form of three menu items, salad, fish and chips, and a buffet. A recent census of Virtual Lakes shows that the community consists of 25,000 residents with an approximate age of 37.3 years old. In the four years since the opening of Arcadia Bay Seafood, we had average sales worth $636,475 annually. According to IBISWorld, Australia’s foremost analyst of industry data, the fish and chip shop industry is struggling. The primary concern for the owners of these fish and chip shops is competition, according to IBISWorld, who says “consumers have flocked to alternative fast-food meal options such as burger franchises, sandwich bars and ethnic takeaway operators.” (IBISWorld, 2015).

Despite this, we believe that the company has potential to expand greatly due to lack of local competition.

2.2) Expansion and Distribution:

The company currently has a surplus of $300,000, which, along with a loan of $500,000, the company has the potential to open several new stores. According to the Queensland Government Takeaway/Fast Food Start-Up Guide, start-up costs of a new store are between $90,000 and $300,000, but a good portion of this cost includes branding, licence fees, insurance, and advertising (Queensland Government, 2016). If it is assumed that this accounts for $20,000 of the start-up costs, it is possible to open a decent store in a nearby suburb for as little as $100,000, inclusive of wages, equipment, and property rent. Arcadia Bay plans on opening three new stores in nearby suburbs North Lakes, Dakabin, and Kurwongbah. The forecasted business expenses for these future stores are outlined in the financial report. Referring back to the IBISWorld statistics, it reveals that national fish and chips market is almost perfectly competitive, with no firm accounting for more than 5.0% of industry revenue. The report states “The industry is highly fragmented and is dominated by small, individual businesses that typically own only one establishment… with no major chains operating in the industry.” We intend to change this. If, by the fourth year of business, Arcadia Bay can establish itself as a chain store, it may be possible to break this mould and establish Australia’s first successful fish and chips chain store. If profits for the new stores are even half those of the first store, the business will be very successful.

2.3) Advertising:

As discussed in the environmental report, the environment is a major focus of Arcadia Bay. All our fish locally farmed, and we regularly try to take a stand against big firms destroying local fish populations. As such, our advertising is aimed primarily at promoting environmental awareness alongside our new and enhanced products as per our business objectives. The current line of advertising is based around the slogan “Support the little guy, support Arcadia Bay”, which is usually preceded by an environmental fact, such as “big industry has destroyed 53% of natural reefs in our oceans” for example. This advertising will change in the future to include promotion of the three potential new stores, and to introduce Arcadia Bay Seafood to new markets. In the following year, we plan to spend $30,000 on advertising which includes royalties paid to the artists, cost of advertising space, and distribution costs. The advertising will be strategically distributed across Virtual Lakes, as well as in the nearby suburbs to coincide with the opening of the new stores.