Giovanni's Pizzeria Executive Summary
Expanding Giovanni’s Pizzeria
1. EXECUTIVE SUMMARY 1.1. Company and Industry Giovanni’s Pizzeria will become Norfolk’s first pizzeria to offer the Chicago Deep Dish and the ‘Pizza Buffet’. Giovanni’s will be located in the perfect mix between college students, locals, and tourists. There are mixtures of people located in Norfolk, VA due to it being a Military State and everyone would like that food that can remind them of home. 1.2. Products and Services Giovanni’s Pizzeria will offer handmade specialty pizzas including the Chicago Deep Dish. The pizzas will be made with a Midwest influence as far as recipes and …show more content…
ingredients. The Pizza Buffet will also be offered where customers can choose their own ingredients and mix and blend them together however they want using toppings that is high in number.
2. FINANCIAL PLAN 2.1. FUNDS REQUIRED AND USED Giovanni’s Pizza has a strong financial plan with the first year earnings exceeding $30,000 and a positive cash flow by the three third month of operation. It is expected that my restaurant will have losses during the first month or two due to being a new business and the competition of other pizzeria’s however once fully established profits will exceed $10,000. Yearend cash balances will exceed well over $30,000, and the loan from the bank will be paid off within two years. Giovanni’s Pizza requires $100,000.00 in cash to begin operations. With me investing $30,000.00, local investors possibly investing about $40,000.00 and the final $30,000.00 from a bank loan I should be set to get started. Funds will be used for building renovations meeting The Americans with Disabilities Act of 1990, marketing and advertising, and daily operations for the first three months until the company gains a positive cash flow
3. MARKETING STRATEGY 3.1. TARGET MARKET
Giovanni’s will provide specialty pizzas, the Chicago Deep Dish, and delivery to the Norfolk area. Giovanni’s will be most known for the deep dish pizza and the ‘pizza buffet’. Recipes for the deep dish will be authentic from Chicago and the ‘pizza buffet’ will feature fresh ingredients customers can choose from. Prices will be slightly above average. This will allow for free delivery and for Giovanni’s to capitalize on tourists. However, there will be select menu items and choices that are lower than average to cater to the some 30,000 students in the area. 3.2. MARKETING TRENDS I plan to form partnerships with local businesses and the two College Campus nearby and provide discounts for customers in the local neighborhood. The partnerships will consist of small discounts i.e. order two large pizzas get one half price, show college identification and get two dollars off any large pizza. We will conduct free taste test within the first month of business. Direct mail has long been a popular method of direct marketing (Scarborough, 2012) and I will incorporate this into to my strategy as well. Sending out fliers with monthly coupons rendering a free two liter soda with a minimum purchase. Signs and flyers will be hung around the neighborhood to announce the grand opening of the restaurant.
3.3. INTERNET STRATEGY I will design a website that will be maintained and monitored daily to promote the company. The website will have daily and monthly advertising specials and customers will be able to obtain the menu and place orders for takeout or delivery via the website. I will also promote Giovanni’s via social networks i.e. Facebook, Twitter and Instagram. More than 40 percent of companies using social networking sites report landing at least one customer from their efforts (Scarborough, 2012). This way it can catch the eye of the younger adults in the neighborhood.
3.4. SALES STRATEGY Anytime the surrounding neighborhood has charity events or social events I will volunteer to produce the meals for the function which is also known as sponsorship and special events (Scarborough, 2012). These events and social activities can assist to population my restaurant, I will be able to build up an outstanding perception for my restaurant. These opportunities will let people enjoy a new taste, great quality and they can benefit having great Pizza at competitive prices and exceptional service. Harvard Business Review states, the strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation. Many restaurant’s in the surrounding area close around 10p.m. With the exception of McDonald’s Burger King and Taco Bell. You cannot find Pizza late unless it is already in your freezer. Giovanni’s will be one of the first to stay open later then 10 p.m. We will close for the night at midnight. That will catch the eye of most the college students, party goers or those that work extended hours. They will always be able to access Giovanni’s Pizza. That will definitely put a dent in the competitions business. Every doesn’t always want breakfast i.e. IHop, Denny’s or Waffle house after social gatherings I think Giovanni’s will add a little flavor to the night life.
4. EXPANSION Being that the first restaurant is in a remote location in the city of Norfolk I would expand to Virginia Beach. The perfect place would be near Town Center. This is a very popular spot in Virginia, Virginia. During my search for properties on the internet I found an affordable property 3750 Virginia Beach Blvd., Virginia Beach, VA 23452. According to cityfeet.com, the property is renting at $1,800.00 per month. The property is located in the Birchwood Shopping Center which is not too far from the location I wanted to be in.
The following is a brief description of the area surrounding the property. This property is the former Jay 's Deli. The property faces Virginia Beach Boulevard. The property has double row of parking. The property is located in a shopping center with the following other businesses: BJ 's, Burlington Coat Factory, Food Lion, A.C. Moore, Dollar Tree, Original Mattress Factory, weight Watchers, Radio Shack, McDonald 's, Carvel, and Taco Bell. This is the perfect location for a Pizzeria. I have no worries of competition as far as Pizzerias.
Close to this location are many Night Clubs and Strayer University is nearby as well. This can be the perfect opportunity for anyone who is out shopping to eat buffet style, college students on break or allowing party goers a place to dine after an outing. As customer 's preferences are further defined; menu items will be added to expand the target market. 4.1. Financing Half of the start-up cost for the second location would originally come from the first location. The start-up costs are definitely higher due to being located in the city of Virginia Beach which is where most tourists are attracted to. I believe the first location will have me in a good shape when it comes to securing a new loan for the second location. I would definitely be looking into acquiring a second commercial loan from the very same bank as the first one.
I could also look into franchising if the first restaurant is doing well. As stated in the text franchising enables business owners to use other people’s money to grow their
businesses with minimal capital investment on the part of the franchisor (Scarborough, 2012). Basically that would leave that person responsible for more of the work and the franchising agreement can be structured to guarantee brand integrity. Through this aspect I would not retain all profits from this location but I wouldn’t lose anything involved with the first location and I would definitely earn royalty percentages of the profit margin from the second location. Of course I would need to have a sound expansion plan and rigorous financial analysis in order for this to play out.
According to SBA.gov the following are things to consider when considering franchising your business. Franchising incurs more costs than many other types of businesses. Before proceeding in the franchising process, ensure that your concept will produce an adequate profit. If sure the business will generate enough revenue as a franchise, next to consider is the fact that the initial start-up process will require a significant amount of cash. You will need to pay attorneys to handle your legal documents and to register your franchise. Additional costs will include paying accountants, creating marketing materials and running advertising to promote the franchise to prospective franchisees.
In conclusion the opportunity to start a new business crosses many people’s mind. Going through with your plan takes a lot of dedication and strategizing. The proper planning, resources and precise execution will lead to a very successful business. Expansion can make or break a business depending on how much you put into the initial business venture and how you manage finances. I believe Giovanni’s Pizza will make a great restaurant or franchise for that matter. There are things lacking in Pizzeria’s and it wouldn’t hurt to put ideas in motion. Everyone has to eat and everyone loves having varieties.
References
Build Your Own Franchise. Is Franchising For You? Retrieved from http://www.sba.gov/content/build-your-own-franchise CityFeet.com. Retrieved from http://www.cityfeet.com/cont/ForLease/LN13303318/3750- Virginia-Beach-Blvd-Virginia-Beach-VA-23452
Porter, M. E. (2012). Harvard Business Review. The Five Competitive Forces That Shape
Strategy. Retrieved from http://www.tfasinternational.org/aipe/academics/morriss2012
/porter-fivecompetitiveforcesthatshapestrategy.pdf
Scarborough, N. M. (2012). Effective Small Business Management: An Entrepreneurial, 10th Ed,
Upper Saddle River, NY: Prentice Hall.
1. EXECUTIVE SUMMARY 1.1. Company and Industry Giovanni’s Pizzeria will become Norfolk’s first pizzeria to offer the Chicago Deep Dish and the ‘Pizza Buffet’. Giovanni’s will be located in the perfect mix between college students, locals, and tourists. There are mixtures of people located in Norfolk, VA due to it being a Military State and everyone would like that food that can remind them of home. 1.2. Products and Services Giovanni’s Pizzeria will offer handmade specialty pizzas including the Chicago Deep Dish. The pizzas will be made with a Midwest influence as far as recipes and …show more content…
ingredients. The Pizza Buffet will also be offered where customers can choose their own ingredients and mix and blend them together however they want using toppings that is high in number.
2. FINANCIAL PLAN 2.1. FUNDS REQUIRED AND USED Giovanni’s Pizza has a strong financial plan with the first year earnings exceeding $30,000 and a positive cash flow by the three third month of operation. It is expected that my restaurant will have losses during the first month or two due to being a new business and the competition of other pizzeria’s however once fully established profits will exceed $10,000. Yearend cash balances will exceed well over $30,000, and the loan from the bank will be paid off within two years. Giovanni’s Pizza requires $100,000.00 in cash to begin operations. With me investing $30,000.00, local investors possibly investing about $40,000.00 and the final $30,000.00 from a bank loan I should be set to get started. Funds will be used for building renovations meeting The Americans with Disabilities Act of 1990, marketing and advertising, and daily operations for the first three months until the company gains a positive cash flow
3. MARKETING STRATEGY 3.1. TARGET MARKET
Giovanni’s will provide specialty pizzas, the Chicago Deep Dish, and delivery to the Norfolk area. Giovanni’s will be most known for the deep dish pizza and the ‘pizza buffet’. Recipes for the deep dish will be authentic from Chicago and the ‘pizza buffet’ will feature fresh ingredients customers can choose from. Prices will be slightly above average. This will allow for free delivery and for Giovanni’s to capitalize on tourists. However, there will be select menu items and choices that are lower than average to cater to the some 30,000 students in the area. 3.2. MARKETING TRENDS I plan to form partnerships with local businesses and the two College Campus nearby and provide discounts for customers in the local neighborhood. The partnerships will consist of small discounts i.e. order two large pizzas get one half price, show college identification and get two dollars off any large pizza. We will conduct free taste test within the first month of business. Direct mail has long been a popular method of direct marketing (Scarborough, 2012) and I will incorporate this into to my strategy as well. Sending out fliers with monthly coupons rendering a free two liter soda with a minimum purchase. Signs and flyers will be hung around the neighborhood to announce the grand opening of the restaurant.
3.3. INTERNET STRATEGY I will design a website that will be maintained and monitored daily to promote the company. The website will have daily and monthly advertising specials and customers will be able to obtain the menu and place orders for takeout or delivery via the website. I will also promote Giovanni’s via social networks i.e. Facebook, Twitter and Instagram. More than 40 percent of companies using social networking sites report landing at least one customer from their efforts (Scarborough, 2012). This way it can catch the eye of the younger adults in the neighborhood.
3.4. SALES STRATEGY Anytime the surrounding neighborhood has charity events or social events I will volunteer to produce the meals for the function which is also known as sponsorship and special events (Scarborough, 2012). These events and social activities can assist to population my restaurant, I will be able to build up an outstanding perception for my restaurant. These opportunities will let people enjoy a new taste, great quality and they can benefit having great Pizza at competitive prices and exceptional service. Harvard Business Review states, the strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation. Many restaurant’s in the surrounding area close around 10p.m. With the exception of McDonald’s Burger King and Taco Bell. You cannot find Pizza late unless it is already in your freezer. Giovanni’s will be one of the first to stay open later then 10 p.m. We will close for the night at midnight. That will catch the eye of most the college students, party goers or those that work extended hours. They will always be able to access Giovanni’s Pizza. That will definitely put a dent in the competitions business. Every doesn’t always want breakfast i.e. IHop, Denny’s or Waffle house after social gatherings I think Giovanni’s will add a little flavor to the night life.
4. EXPANSION Being that the first restaurant is in a remote location in the city of Norfolk I would expand to Virginia Beach. The perfect place would be near Town Center. This is a very popular spot in Virginia, Virginia. During my search for properties on the internet I found an affordable property 3750 Virginia Beach Blvd., Virginia Beach, VA 23452. According to cityfeet.com, the property is renting at $1,800.00 per month. The property is located in the Birchwood Shopping Center which is not too far from the location I wanted to be in.
The following is a brief description of the area surrounding the property. This property is the former Jay 's Deli. The property faces Virginia Beach Boulevard. The property has double row of parking. The property is located in a shopping center with the following other businesses: BJ 's, Burlington Coat Factory, Food Lion, A.C. Moore, Dollar Tree, Original Mattress Factory, weight Watchers, Radio Shack, McDonald 's, Carvel, and Taco Bell. This is the perfect location for a Pizzeria. I have no worries of competition as far as Pizzerias.
Close to this location are many Night Clubs and Strayer University is nearby as well. This can be the perfect opportunity for anyone who is out shopping to eat buffet style, college students on break or allowing party goers a place to dine after an outing. As customer 's preferences are further defined; menu items will be added to expand the target market. 4.1. Financing Half of the start-up cost for the second location would originally come from the first location. The start-up costs are definitely higher due to being located in the city of Virginia Beach which is where most tourists are attracted to. I believe the first location will have me in a good shape when it comes to securing a new loan for the second location. I would definitely be looking into acquiring a second commercial loan from the very same bank as the first one.
I could also look into franchising if the first restaurant is doing well. As stated in the text franchising enables business owners to use other people’s money to grow their
businesses with minimal capital investment on the part of the franchisor (Scarborough, 2012). Basically that would leave that person responsible for more of the work and the franchising agreement can be structured to guarantee brand integrity. Through this aspect I would not retain all profits from this location but I wouldn’t lose anything involved with the first location and I would definitely earn royalty percentages of the profit margin from the second location. Of course I would need to have a sound expansion plan and rigorous financial analysis in order for this to play out.
According to SBA.gov the following are things to consider when considering franchising your business. Franchising incurs more costs than many other types of businesses. Before proceeding in the franchising process, ensure that your concept will produce an adequate profit. If sure the business will generate enough revenue as a franchise, next to consider is the fact that the initial start-up process will require a significant amount of cash. You will need to pay attorneys to handle your legal documents and to register your franchise. Additional costs will include paying accountants, creating marketing materials and running advertising to promote the franchise to prospective franchisees.
In conclusion the opportunity to start a new business crosses many people’s mind. Going through with your plan takes a lot of dedication and strategizing. The proper planning, resources and precise execution will lead to a very successful business. Expansion can make or break a business depending on how much you put into the initial business venture and how you manage finances. I believe Giovanni’s Pizza will make a great restaurant or franchise for that matter. There are things lacking in Pizzeria’s and it wouldn’t hurt to put ideas in motion. Everyone has to eat and everyone loves having varieties.
References
Build Your Own Franchise. Is Franchising For You? Retrieved from http://www.sba.gov/content/build-your-own-franchise CityFeet.com. Retrieved from http://www.cityfeet.com/cont/ForLease/LN13303318/3750- Virginia-Beach-Blvd-Virginia-Beach-VA-23452
Porter, M. E. (2012). Harvard Business Review. The Five Competitive Forces That Shape
Strategy. Retrieved from http://www.tfasinternational.org/aipe/academics/morriss2012
/porter-fivecompetitiveforcesthatshapestrategy.pdf
Scarborough, N. M. (2012). Effective Small Business Management: An Entrepreneurial, 10th Ed,
Upper Saddle River, NY: Prentice Hall.