My analysis focuses on the fit between the people and the opportunity only. Successfully building a multi unit restaurant chain demands a team of people with considerable industry experience and execution skills. The people behind RFD have a deficiency in both. Also the business model lacks process innovation and is therefore easy to copy.
My analysis focuses on the fit between the people and the opportunity only. Successfully building a multi unit restaurant chain demands a team of people with considerable industry experience and execution skills. The people behind RFD have a deficiency in both.
Also the business model lacks process innovation and is therefore easy to copy. The identified market could be attractive to some extent but it is unlikely that it will develop outside a niche.
This increases uncertainty that the business will be able to perform as projected and therefore I would not recommend investing in it. The People When analyzing the venture I was evaluating if the team of people possesses the necessary skills, experience, contacts and attitude required to start up and operate the proposed business.
These kinds of skills and experiences will be helpful in launching RFD. However, neither of them has sufficient work experience in the restaurant industry.
Ice Cream cannot be regarded as sufficient for a restaurant start up. Also both are first time entrepreneurs with no experience in how to manage unexpected challenges.
This lack of operational experience and knowledge raises the question of their ability to successfully operate and grow a restaurant. The success of the business thus heavily depends on the knowledge and skills of third party individuals, resulting in increased operating cost and risk.
However this point is insufficiently addressed by just providing the names and current job titles of four potential board members. Furthermore analyzing the proposed floor plan I noticed that the kitchen and the dessert prep station are not adjoined, which will lead to challenges in daily operations.
An industry expert would have picked up this detail straight away, so I assume the plan has not yet been discussed in great detail with experts and, therefore, there is a risk of more substantial flaws in the plan.
A great possibility to show their interest in foodservice would have been to do their summer internship at a restaurant chain.
Both choose a corporate job in other industries instead. This raises doubt on their passion as well as their willingness to get their hands dirty on the shop floor if things are not going as well as projected.
The Opportunity When analyzing the Opportunity I was evaluating the business idea itself in terms of market attractiveness and business model viability. Forecasts for related product categories such as luxury chocolate in retailing would help in evaluating the potential market.
The choice of the luxury segment in the market is thus justified by the intensifying competition in the quick-service and casual segments and not by market data suggesting a need for a luxury option.
It would have been beneficial to provide some food cost calculations based on the sample menu in order to show the reasonableness of the data provided in the plan.
However the restaurant industry has very low entry barriers and concepts are easy to copy. People, customized service, quality, portioning and ambiance are given as key differentiators but none of them can be protected.
Thus the business model lacks sustainable process innovation that would give it a considerable competitive advantage. There are also several opportunities for new revenue streams, the company could launch its own premium line of chocolates, truffles or ice creams with gourmet food retailers and they could sell a line of desserts or back recipe books.
However the business plan mainly addresses the very obvious possibility of geographical expansion. A formal presentation of the plan by the team would allow further investigations; such a meeting would also allow gaining more insight into the context and proposed deal structure.4) Market The business plan provides some qualitative evidence that a “favorable environment for a dessert-focused restaurant” exists but it fails to quantify the size and growth potential for a fine dining option in this specific market segment.
A plan of activities on Room for Dessert (RFD) is a combination of concepts that include dining restaurant and retail store. From a distance, the venture appears attractive and promising considering that the business will be operating in the US food industry that is worth US billion.
In this memo I summarize my analysis of the business plan for Room for Dessert (RFD) and evaluate if the proposed venture represents a good investment opportunity.
My analysis focuses on the fit between the people and the opportunity only. 4) Market The business plan provides some qualitative evidence that a “favorable environment for a dessert-focused restaurant” exists but it fails to quantify the size and growth potential for a fine dining option in this specific market segment.
Business Plan for Room for Dessert: Adding Unique Ingredients to Life's Balancing Act Summarizes the business plan for a concept restaurant focused on late evening dessert service as well as. Business plan for room for dessert.
Project instructions: Analyze the strengths and weaknesses of the plan proposed in the Room for Dessert case study and write a 3 page paper in which you.