Business Plan for Shells Fine Dining Restaurant, Melbourne

Business Overview and Concept

Shells Fine Dining is an 80-seat fine dining establishment with an attached 30-seat lounge. Shells focuses on fine dining in an elegant and relaxed style, offering a diverse selection of seafood, steaks, and catering services. Indoor and outdoor seating add to the beauty of the riverfront setting, making Shells a destination for both visitors and locals.

Shells will be located in the booming riverfront district central to Melbourne, as part of the City of Melbourne's 2007–2012 Tourism Plan, which includes supporting new establishments with government funding to create an engaging destination for tourists (Melbourne, 2007). Melbourne is considered one of the fastest-growing destinations in Australia.

The mission at Shells Fine Dining is to provide customers with not only the best surf and turf menu in all of Melbourne, but also to fulfill their dreams and desires while experiencing the cuisine and fine dining atmosphere at Shells. Customer satisfaction is of utmost importance; all customers will have the opportunity for equitable seating and service (Palo Alto, 2007). Employees will participate in a rewards and recognition program designed to incentivize retention and reduce the turnover rate common in the restaurant industry. The ambience and mission of Shells centers on creating an "experience" rather than simply being a place to eat.

The service vision is to fulfill customers' dreams and desires. Customers may choose to dine in a quiet, cozy corner, enjoy a social atmosphere in the lounge, or take in the view from the well-lit balcony facing the waterfront. Customers are Shells' number-one priority. All customers are invited to provide feedback for the chance to win one complimentary dinner at Shells on a subsequent visit.

Melbourne's waterfront district currently lacks a fine dining establishment that offers reasonably priced delicacies in an elegant, warm, and friendly environment. The cozy dining area, complemented by a lounge and an outdoor balcony, will help distinguish Shells from other fine dining and traditional dining establishments in the area. The surf and turf menu will feature a wide variety of seafood from the local region as well as from around the world, inspiring patrons to sample what makes Shells unique.

The target market includes the travel and tourism sector, as the City of Melbourne is currently investing billions of dollars into organizations creating sustainable businesses in the area to increase tourism and generate capital year-round. The core customer is a tourist planning to stay in Melbourne for four or more days who is seeking a fine dining establishment that offers local food and an elegant atmosphere without the stuffy, aristocratic environment often associated with high-end restaurants.

The City of Melbourne is investing millions into sustainable businesses, including Shells, to foster growth and development within the selected area. Start-up expenditure is projected at $370,000, with owners expecting approximately one-quarter of required financing to be provided by the City of Melbourne's Tourism and Recreation plans for new businesses from 2007 to 2012. Shells expects to generate up to $1,000,000 in sales within 18 months of opening, with strong net profits by the beginning of year three. All investors providing additional capital during the maturity phase will receive a premium of 3% on all monies invested as a financial incentive (Palo Alto, 2007).

Staff at Shells will be drawn from the local community, with a minimum of three years of experience in the fine dining industry. Shells will employ two restaurant managers, one wait staff supervisor, 20 wait persons, and three hosts assigned to each section — the main dining area, the lounge, and the balcony. Kitchen and line staff will be hired on an as-needed basis, with the owner serving as head chef given his extensive knowledge of Melbourne's fine dining preferences, local cuisine, and experience in the seafood industry. The management team, all wait staff, and the financial management team will collectively bring more than 30 years of experience in fine dining.

Product Profile and Positioning

The menu at Shells is inspired by the river and waterfront. It will feature a diverse selection of seafood and steak — a surf and turf concept designed to appeal to tourists interested in sampling local cuisine. The menu will rotate twice each year to stay fresh and seasonal. Customers will have the ability to mix and match main entrées, side dishes, and desserts to create a unique and personalized dining experience, further reinforcing the ambience of Shells as a place of dreams and desires.

Shells Fine Dining will position itself as the leading fine dining establishment in its market — the only venue to combine upscale cuisine with the comfortable, cozy appeal of a casual yet elegant restaurant. Shells distinguishes itself by sourcing foods from around the world and by allowing customers to customize their dining experience through mix-and-match entrées.

The average meal at Shells Fine Dining — including an appetizer, entrée, dessert, and a "teaser" — will be priced at $20. Cocktails will average $4–$8, with bottles of wine ranging from $15 to $40. A selection of one red and one white wine will be offered each night at $6.00 per glass or $11.50 for a half-bottle of the evening's featured wine.

Marketing Plan

Shells will be located along the waterfront near Melbourne's downtown "riverscape," which in recent years has transformed into a destination people describe as filled with "dreams and desires" (Dovey & Sandercock, 2002; Yencken, 1994; Zukin, 1996). The branding for Shells will reflect this objective — positioning it as a place where guests enjoy fine dining at reasonable prices while experiencing the lifestyle of their dreams. The City of Melbourne's Tourism Plan 2007–2012 aims to establish Melbourne as a premier tourist destination, increasing the city's profile and building the capacity of the hospitality industry (Melbourne, 2007). As part of this plan, the City intends to help local businesses like Shells engage the market and achieve sustainable growth.

Market segmentation for Shells includes three primary groups: (1) tourists, (2) families, and (3) locals.

Because the area is currently being developed, there are few fine dining restaurants in the immediate vicinity that would directly compete with Shells. However, several restaurants in Melbourne have established reputations for fine cuisine, including: (1) Le Gourmet, a French fine dining establishment, and (2) Koh Samui, a Thai and Asian-themed fine dining establishment (Melbourne's Fine Dining Guide, 2006). Daniel's is another seafood-themed fine dining restaurant, but there is limited evidence of top-ranked fine dining venues within Melbourne's waterfront district, especially in the newly developed area.

Shells Fine Dining would hold the leading position as the primary supplier of affordable, fine dining surf and turf within the tourism sector of the City of Melbourne.

Strengths: There are no other restaurants currently in this sector offering fine dining in a surf and turf style as Shells plans to.

Weaknesses: Shells is a start-up establishment, and there is always the possibility that sales forecasts will not meet expectations during the first couple of years.

Opportunities: The City of Melbourne is infusing millions of dollars into the area as part of its Tourism project, making this an ideal time to invest in a restaurant like Shells.

Threats: Other fine dining establishments may open along the waterfront, also capitalizing on the City of Melbourne's Travel and Tourism project. Shells will need to clearly distinguish itself from emerging competition.

Sales forecasts are strong, as recent research suggests there is consumer interest in greater access to amenities along riverfront areas that are clean, attractive, functional, and diverse (Ley, 1996). Malone (1996) suggests that where a city and waterfront converge, as in Melbourne, there is significant capital and growth potential.

Shells will distinguish itself from competitors by delivering a fine dining experience without the costs normally associated with the genre. The restaurant will offer customers an experience that fulfills their dreams and desires. Different sections of the restaurant will cater to consumers seeking specific themes or moods during their dining experience.