Business Idea Plan Report

BusinessIdea Plan Report

Today, most businesses strive to attain customer satisfaction byvaluing them, listening to them, and treating them right is one ofthe goals that many firms strive to achieve. Whenever a firm attainscustomer needs and expectations, there is a likelihood of conductingrepeated purchases. Moreover, competition has greatly increasedthus, it is essential for firms to identify their target market andwork towards satisfying the identified clients (Mok, Sparks, andKadampully 19 Wang, Chen, and Chen 120). To do so, a company needsto relate to its customers effectively and attempt to maximize theirvalue. It is against this backdrop that this paper provides ananalysis of Bonita Restaurant Business plan report by focusing on thebusiness model canvas. It is worth noting that the business modelcanvas is a planned entrepreneurial and organization tool, whichallows a firm to define, design, invent, and pivot its businessmodel. As such, the discussion will include customer segments, valuepropositions, key activities, partners, and resources, coststructures, values, and channels.

Customer segments

Bonita Restaurant is a fast food business offering fast and lightfood, coffee, juice, milk shake, vegetables, and fruit salads.Clients take their orders using a self-service method or online andtake the meal at the restaurant’s sitting arena or as takeaway. Thebusiness also offers delivery services within the city. In thisregards, the business targets the working class, as well as, collegeand university students. The business targets clients from differentbackgrounds and demographics, but usually targets young people agedbetween 18 to 35 years, who constitute roughly 65% of all sales.Studies show that fast food restaurants should market and target theyoung generation since it is this age group that drives the profitsof these businesses (Wang et al 124). The business also attempts tocreate value for young people regardless of their social or financialstatus, as the company does not distinguish between ethnic, social,or gender background. Most young people studying or working do nothave the time to prepare food during the day or the money to eat intofull restaurants thus, Bonita offer low-priced goods to appeal tothis age group. Opening a restaurant offering light food in aneffective manner creates value to the economy based on the fact thatrevenue is created and job opportunities created to the newlygraduate students.


The aim of the restaurant is to offer high quality food that isbeyond the customer expectation at a low price. The services providedmust be attractive to the customers and add value to their lives(Spann, Fischer, and Tellis 241). The food prepared in the restaurantis free from contamination and genetically modified food. It isessential to note that competition in the hotel industry has greatlyincreased hence, companies need to position themselves strategicallyto appeal to clients. Moreover, customers have also become healthconscious, which means restaurants need to prepare healthy products.Bonita has been in the forefront to offer sugar-free drinks,non-additives drinks, and food with low calories, which has allowedthe creation of a new wave of demand for clients in need ofreplacement healthy food. The strategy enables the business to offerdifferent product varieties with different flavors, values, andtastes to clients. The challenge that exists when serving thecustomers is the pricing strategy based on the fact that the existingcustomers need high standard food and beverages at low price. On theother hand, delivery is a major challenge since a great number ofclients request for home and office deliveries and given the shallownetwork channel, the business has usually failed to delivered someproducts on time.

The business values its clients thus, offer standard food that willascertain that its customers are health to continue with theirroutines. The business needs to contribute to the development of theeconomy, which means there is need to ensure that customers aresatisfied with our hospitality industry (Souto 147 Spann et al 244).Saving time for the clients so that they can do other constructiveactivities that will improve their livelihood is the business’ aimand this is the reason it offers deliveries and self-service at thebusiness premises. The food and beverages offered to both the workingelite and students differs a lot based on the fact that theingredients used to prepare the food depends on the customerspecification, preferences, and the amount of the money one iswilling to spend.

Channel for thecustomer segments

Many of Bonita’s clients are young people, which means they want tointeract with the business virtually especially through the socialmedia. The restaurant has presence in Facebook, Google+, Twitter,YouTube, and Instagram. Moreover, the restaurant has created itswebsite and blog where clients can post their experience, as well as,offer ways in which the business can improve its services. Thus, thecompany reaches its clients mostly through the social media, but italso advertises its products in the local dailies and televisionstations. Clients request orders through the social media and email,but the largest proportion request over phone. The channels areintegrated in such a way that when the customer request for an orderit is reported back in the restaurant where an invoice is providedupon delivery. The online channel works best since it requires one toorder the food earlier, which means preparation is client-specificand oriented. It is worth noting that the restaurant offers officeand home deliveries where clients request for orders either online orover the phone and have them delivered, but this method has proved tobe expensive since the restaurant lacks a vast network channel.Moreover, the business has experienced an influx of deliveries, whichmeans that it usually fails to meet clients’ expectations. Visitingthe restaurant daily is cost-effective since one is not charged extramoney for delivery though it is possible to cause inconveniences.

Relationship thatexists between the firm and customers

Over the years, Bonita has created a brand that is recognized byregular clients. Moreover, the restaurant has managed to create valuefor clients, which means that most regular clients have become loyaland attached to the brand. Sometimes, the restaurant offers creditservices to regular clients who request them, an aspect that hasallowed to build trust and relate with the clients effectively. Onweekends and holidays, the restaurant offers discounts on specificproducts or on specific services, for example, clients who writereviews on the restaurant’s blogs or social media pages are offereddiscounts. Offering discounts to clients has helped greatly increating relationships with the clients, as well as, retainingclients. By offering discounts and interacting with clients throughthe social media, the business has managed to attract new clients,which has increased the business’ market share. Most clients whofrequent the restaurants are price-sensitive thus, the idea ofoffering discounts of between $1 to $4 has proved effective as thebusiness has remained competitive, increased its market share, andenhanced its profitability aspects.

Pricing (revenuestreams)

The company uses a high quality low price strategy, which ensuresthat all meals are affordable to every client regardless of financialcapacity. However, since the restaurant offers some products tailoredto the client needs, such goods have specific prices, but oftendiscounted. The lowest price of any beverage offered is $1.9 whilethe highest is $7 irrespective of whether it is a takeaway orconsumed within the business premises. Light and fast food range from$0.9 to $9.5 while snacks and salads range from $0.6 to $2.5. Blend,ingredients used, size of products, type of details cultivated duringthe production process, flavor, health aspects, and deliverymechanisms determine the pricing of products. The mode of paymentchosen by the client whether cash or credit card does not mattersince the restaurant accepts all forms of legal payments.


The resources required by our value proposition are of high qualitythat will not risk them to health issues such as obesity and otherlifestyle diseases such as cancer. The distribution channel must havebeen approved by the Food Drug and Administration based on the factthat the ingredients used are natural ingredients that are costly.The customer relationship must be maintained by providing food andbeverages that the customer need within the specified time. Therestaurant serves all products over the counter using self-serviceaspects, but clients have the right to choose whether to eat at thebusiness premises or have their products packed as takeaway. The

The KeyActivities

The key activity required in running a restaurant includes qualityfood and beverages to the customers. Souto asserts that food mustmeet the need of the customer and be free from contamination (147).The distribution channel must make sure that the supplied ingredientsare fit for the consumption of human beings. When first choice foodis served to the customer it is an implication that the restaurantwill attain good reputation and thus a good relationship will existbetween the customer and the restaurant staffs. The revenue stream ofthe restaurant must be predictable, risk and return profit to therestaurant management. The business also engages in marketing andinteractions with clients, which ensures that the business remainscommitted to the interests of clients.

Business partner

The key partners of the business idea plan report include St. FrancisWinery &ampVineyards located in California and Kai- Sheraton WildHorse Pass Resort that located in Southwest. Supporting the newentrant restaurant with business ideas will make it possible toincrease the market share and still be competitive in the market. Themain suppliers include Green Rose, which supplies agriculturalproducts, Fine Butchery, which supplies meat-related products, JimmyHerbal and Beverages, which supplies coffee blends, tea leaves, andmilk products. The suppliers supply raw materials required for thepreparation of food. The main partners will provide the capital formarketing, as well as, collaborate with the company on mattersconcerning clients’ commitment and retention. The partners willsupport the management in management, marketing, and strategicapproaches.

Cost structures

Labor costs are the most important costs for a business modeloperating in the hospitality industry (Souto 144). It is worth notingthat a restaurant is overly labor oriented thus, labor forms themost important aspect of strategic management and production. Thehiring, management, compensation, and development of employees remainthe most expensive activities for the business while procurement ofraw materials and development of network channels remains the mostexpensive resources. However, given the market share that therestaurant enjoys and the profit it manages to obtain, the businessis in a position to manage these expensive resources and activitieseffectively.


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Souto, Jaime E. &quotBusiness model innovation and business conceptinnovation as the context of incremental innovation and radicalinnovation.&quot Tourism Management&nbsp51 (2015): 142-155.Print.

Spann, Martin, Marc Fischer, and Gerard J. Tellis. &quotSkimming orpenetration? strategic dynamic pricing for new products.&quot&nbspMarketingScience&nbsp34.2 (2014): 235-249. Print.

Wang, Cheng-Hua, Kuan-Yu Chen, and Shiu-Chun Chen. &quotTotalquality management, market orientation and hotel performance: Themoderating effects of external environmental factors.&quot&nbspInternationalJournal of Hospitality Management&nbsp31.1 (2012): 119-129.Print.