Drive-in Business Plan Essay Example

nearby fast food restaurants differ significantly from AutoRama in terms of their structures.

The success of AutoRama is attributed to its distinctiveness, setting it apart from competitors. Nicholas, Amanda, and Kevin, who also have a financial stake in the company, will supervise the business. Their extensive experience in the restaurant industry and proven track record of success will greatly influence and inspire the business to excel. The management structure will be horizontal, treating all employees equally. Each team member will have an equal voice in making necessary changes and suggesting improvements. This approach nurtures a positive working environment and guarantees that every employee feels engaged and responsible for the company's success.

Objectives:

1. Objective 1: Secure a building site with easy access from main roads and ample space, approximately an acre in size.
2. Objective 2: Establish a presence in both the automotive community and the family-based restaurant category.
3. Objective 3: Achieve profitability within the first 18 months of operation, with loans and investments fully repaid within 30 months.

Keys to Success: Implement strict guidelines throughout the business process to ensure proper procedures are followed. Continuously seek opportunities to improve the business structure. Maintain strong visibility in the surrounding community and engage in local events. Ensure customer satisfaction and encourage repeat transactions.

Mission:

1. AutoRama Drive N's mission is to deliver value through an old-fashioned dining experience, reminiscent of the 1950s. AutoRama will provide a friendly and clean atmosphere that welcomes both families and car enthusiasts.

Company Description

Cops have always been attracted to the car scene, with recent efforts to crack down on speeding and law-breaking drivers. However, this increased attention

also comes with negative consequences. Nice cars tend to be stereotyped and closely monitored by law enforcement, even when they are parked.

Local businesses are expressing concerns about unwanted activity occurring after their stores close. AutoRama Drive N is the solution for those who have a shared interest in cars, enjoy spending time with friends, and meeting new people, while also enjoying authentic American cuisine. This restaurant is a newly established business that embraces the mid-50s to 60s era. It features parking spaces surrounding the establishment, each equipped with an intercom system for convenient ordering. Additionally, the restaurant offers an indoor dining area. The menu consists of classic American dishes, such as tenderloins, hamburgers, hot dogs, and ribs, which can be customized in various combinations. These delicious meals are complemented by freshly cut and seasoned fries. All food is made to order using fresh ingredients. As for beverages, a variety of soft drinks will be available, with the added option of freshly made root beer on tap.

The company aims to attract both car enthusiasts and families. The goal is to provide a family-friendly and alcohol-free environment. The parking lot will have ample space, with one acre reserved for special events and regular customers. This will allow car clubs to park together in designated sections, while also providing room for non-affiliated family vehicles. To guarantee availability, parking spots can be reserved for a small fee. Additionally, advance reservations can be made for parking spots near the building entrance.

AutoRama Drive N will be situated on the outskirts of the suburbs to avoid inconveniencing the nearby communities, while still remaining easily accessible to the majority of the public. This

location will provide ample space for future growth, without impeding the participation of individuals with louder vehicles. Additionally, there will be various events such as burnout contests and car shows aimed at attracting larger audiences during special occasions. The ownership of AutoRama Drive N will be structured as a limited liability corporation, with Nicholas Boothe holding a majority stake of 51%, while Kevin Donald and Amanda Rachel will split the remaining ownership interests.

Hundreds of local people depend on local online car forums daily, raising awareness and promoting unity. The fast food and quick-service restaurant industry comprises approximately 200,000 restaurants that generate $120 billion in yearly revenue. The top 50 companies account for around 25% of total sales in the industry. On average, a typical fast food restaurant earns $670,000 per year. Every month, the average American frequents a fast food restaurant about 11 times, resulting in over 800,000 meals consumed annually.

Due to the economic downturn, the fast food industry saw a rise in popularity because of its speed and convenience, which became closely linked with American culture. Additionally, there has been a recent focus on both value and food quality within this industry, including how the food is prepared and the ingredients used.

The fast food industry has been impacted by the global emphasis on health and the demand for healthier options. Like other food sectors, ingredient prices are key to determining profitability in fast food. In recent years, corn, beef, and oil prices have risen. The increase in oil costs has necessitated alternative fuels, which raises expenses for resources used in ethanol production like corn.

Consequently, farmers now face higher costs to feed their livestock, resulting

in increased beef and chicken prices.

Fast food companies are faced with the challenge of distinguishing themselves due to increasing food prices and strong competition. They prioritize high volume and efficient transactions while striving to maintain quality. To achieve this, they constantly introduce new innovations to expedite ordering and delivery. Despite larger corporations having advantages in purchasing, financing, and marketing, smaller businesses like AutoRama excel by offering specialized products that cater to the local market. This enables them to adapt accordingly and meet the unique requirements of their customers.

Differentiation is essential in order to stand out in a saturated market and differentiate oneself from major market players. While typical fast food restaurants offer burgers, chicken meals, fries, and soda, AutoRama Drive N sets itself apart in various ways. Unlike fast food joints that cook burgers in bulk and store them in heating trays, resulting in dry and greasy patties, AutoRama Drive N prepares burgers to order using fresh ingredients and environmentally and health-conscious techniques. Major competitors such as Sonic, In-N-Out Burger, Rally's, McDonald's, Wendy's, and Burger King are unlikely to adapt to local environments or meet the specific needs of the communities they serve.

AutoRama is a unique establishment that combines the iconic features of traditional American dining, such as the drive-in concept and carhop delivery service, with a nostalgic 1950’s atmosphere. This provides a break from contemporary life's busy pace while still maintaining convenience and efficiency like a fast food eatery. What sets AutoRama apart is its focus on catering to auto enthusiasts.

There has been a noticeable increase in the popularity of car collecting and enthusiasm for automobiles in recent years. With the retirement of the

baby boomer generation, many individuals are finally fulfilling their long-held desires to own certain cars. This love for cars extends across all age groups, as enthusiasts of various ages are actively involved. The thriving market for aftermarket car parts guarantees that these products are easily accessible to everyday drivers. This mutual passion for automobiles fosters a unique culture that brings together people from diverse backgrounds. AutoRama serves as a central gathering place where individuals can come together to celebrate this shared lifestyle.

Food away from home generates sales of over $529 billion annually, with fast food restaurants accounting for more than 77% of these sales. Data has demonstrated that consumers dine out 2-3 times per week, and this figure is continuously increasing. AutoRama Drive N's customer base is diverse, primarily encompassing individuals aged 16-55. Our automotive marketing efforts are geared towards males, while the restaurant and family atmosphere cater to women and families. AutoRama aims to connect with auto enthusiasts in Indianapolis, known as the crossroads of America and the racing capital of the world, making them our target market segment.

AutoRama is conveniently located on the south side of Indianapolis, just 12 miles from downtown. This ideal location provides us with easy access to the local car scene and puts us in close proximity to nationally renowned racing organizations. In addition, we have a vast untapped potential in the hundreds of members of local car clubs and online car enthusiast forums. The southern Indianapolis area experienced steady growth of around 2,000 people per year from 2005 to 2010. Moreover, within a radius of 20 miles, we benefit from having eight local universities, two major shopping malls,

and 14 municipal parks and recreation areas.

AutoRama caters to a growing market of auto enthusiasts with a larger number of consumers. Unlike other establishments, AutoRama offers a spacious parking lot where car lovers can gather and park their cars together for various purposes, such as hanging out or attending events. In addition to providing fast meals in a 50's style diner for everyday consumers, AutoRama also hosts car shows, car club events, and other recreational activities. The diner is open from 11 am to 11 pm on weekdays and from 10 am to 12 pm on weekends; however, these activities are not limited by time or day of the week.

This is a 24/7 meeting spot for customers, providing a true 50's style dine-in experience. The main competitors of this restaurant include Sonic and Dog N Suds. However, Dog N Suds, located in downtown Greenwood, is limited in size, operating hours, and franchise stability. On the other hand, the nearest Sonic is about 20 miles southwest of Indianapolis in Camby. Sonic is also unable to accommodate large crowds and is situated far from most consumers.

Despite the presence of other fast food restaurants in the vicinity, such as Wendy’s, McDonalds, and Burger King, none of them offer the extensive food options, drive-in service, 50’s style ambience, or a parking lot suitable for accommodating large groups of people. As AutoRama Drive N is a local startup company, most of its advertising efforts will be focused on the local area, relying on word of mouth. AutoRama will support local events and gatherings while actively participating in community-building efforts. Targeting the auto enthusiast culture, AutoRama's primary advertising strategy will involve

reaching out to car groups and clubs, local car shops, as well as online forums where local communities share a mutual interest in cars through blogs and forums. Ultimately, AutoRama aims to maintain a clean and family-friendly environment.

Strict rules will be implemented to ensure cleanliness, appropriateness, and excellent quality and service. The drive-in section of the parking lot will have intercoms with a menu for convenient ordering without leaving your car, reducing costs by requiring fewer face-to-face interactions. Our food options range from classic fast food meals (hamburgers, hot dogs, and french fries) to a more extensive selection of ribs, tenderloins, and various chicken dishes for a comprehensive dining experience. We also offer healthier alternatives such as salads, grilled items instead of fried ones, and nutritious side dishes like side salads, baked potatoes, slaw,and vegetable mixes to cater to different dietary preferences.

All meals will be prepared quickly, providing the option for customers to order and take away, or sit and enjoy their freshly cooked meal. To promote AutoRama's business, particularly during its initial stages, discounts will be offered to car club members and forum members who support the company. This strategy aims to raise awareness of the business and attract auto enthusiasts who are the target audience. The management team and company structure will be initially limited until further resources are required. The startup phase will consist of Nicholas Boothe, the company's founder, as well as Amanda Rachel and Kevin Donald as assistant managers. As the company expands, roles and responsibilities may change with the addition of more personnel and the division of tasks.

By having a smaller workforce at the beginning, the business can keep

expenses low and focus on growth while ensuring essential roles are filled. This means that current employees will have to take on more responsibilities, but it will be beneficial in the long run as the company progresses and expands. Nicholas Boothe, the founder of AutoRama Drive N, has a strong background in the restaurant and food industry. He started working in this industry at the age of 14 and has held various positions in different establishments, gaining valuable experience and knowledge in all aspects of running a restaurant. He has worked with both successful and unsuccessful businesses, and he holds a BA degree in Finance and Management from the University of Indianapolis.

Nicholas will handle the company's financial matters and oversee the management of other employees, such as scheduling and ensuring compliance with local and national work and safety regulations. Additionally, Nicholas will play a key role in elevating the company's growth. Meanwhile, Amanda Rachel boasts 6 years of experience in the restaurant industry and holds a BA in Marketing and Business Administration from the University of Indianapolis. Amanda will primarily focus on developing AutoRama's marketing strategy.

Amanda will support Nicholas in marketing the company locally and building a customer base in the surrounding area. She will also collaborate with local shops to promote the AutoRama name within the community, as well as among car enthusiasts. Kevin Donald, an ex-military personnel and former manager of a small franchise in California, successfully increased the sales of his restaurant by nearly double within a 13-month period. Now, he has decided to dedicate his time and efforts to this new venture. Despite lacking formal education in this field, Kevin's skills

acquired during his military service and on-the-job experiences make him more than qualified for a managerial position. With these three experienced managers onboard who possess business knowledge, diverse strategies, and firsthand experiences of business failures, the company is expected to have a strong foundation for success. For the initial three quarters of operation, Nicholas will not be receiving a salary from the company.

By offering a salary of $26,000 for Kevin and Amanda, individuals who have no stake in the company, this decision enables the management team to assess the company's financial standing, growth rate, and identify any necessary changes. In the initial three quarters of operation, projected sales will be determined based on weekly performance, with allowance for expansion, particularly during important events. Should the company experience consistent growth, it will have the capacity to employ and train additional staff members.

If the company appears to be lacking in any aspect, these ongoing evaluations will reveal areas in need of improvement and will be promptly addressed. As the company expands in the future, additional personnel and different shifts will be necessary for scheduling purposes. There will be a midday to early evening shift, running from 11am-6pm, as well as an evening shift, starting at 4pm and ending at 11pm. This arrangement allows for coverage during the busiest hours of the evening. Workers will also be expected to arrive 30 minutes early for the start of their shifts and stay 20 minutes late for cleanup purposes.

In this fast-paced workforce, everyone is expected to assist one another. Although there are managers and designated leaders, the company maintains a horizontal structure where no one is valued less due to

their position. All individuals are considered employees of AutoRama. Each manager possesses the necessary skills to manage various aspects of the business and will be responsible for training their team. All employees will receive training in every job category to ensure sufficient support in case of backup or understaffing. Servers will start with a wage of $4.

The starting wage for servers in this position is $13 an hour, which is two dollars more than what servers earn at other restaurants. This wage is mainly tip-based. Cooks will have a starting wage of $8.00 an hour, which will be re-evaluated after the first 30 days and every six months afterward. Cashiers will begin with a wage of $7.50 an hour and undergo the same re-evaluation process as other positions. Initially, employees can expect to work between 25-35 hours, but as the company grows and more employees are hired, the hours will become more regular.

To prevent employees from becoming overworked while still providing an adequate amount of hours to support their needs, a management team of experienced professionals will employ effective strategies and planning. AutoRama will be managed using a horizontal, open-door management philosophy. As a small startup business, input from all members will be welcomed and carefully reviewed and considered for implementation if believed to benefit the company. The process of filling positions will involve approval from each manager to ensure that every member is a perfect fit. After submitting an application, potential employees will be required to undergo interviews with each manager.

After the interview, there will be a 30 day trial period where an employee may be terminated for any reason if they

do not meet performance standards. Following the trial period, a review process will provide feedback on areas for improvement, strengths, and overall performance. AutoRama has established detailed rules, guidelines, and procedures for each position’s duties and responsibilities. Staff selection is based on availability, experience, and willingness to contribute to the company's growth and success. The company primarily sources food supplies from local wholesalers and closely monitors inventory to accurately project its needs.

As the company expands, it can transition from relying on wholesalers to partnering with businesses like Piazza Produce to fulfill orders and deliver necessary goods. To accommodate this growth, sufficient refrigerators and freezers will be purchased to store all the essential supplies for daily operations, as well as surplus reserves. Opting for purchasing instead of leasing equipment will offer the flexibility to sell it if the company decides to upgrade or replace it with newer models, allowing for a partial return on the initial investment. This approach also enables the business to utilize the equipment for as long as possible or until a better solution is available, minimizing downtime in case of lease expiration or equipment replacement.

AutoRama will adhere to all relevant local and state regulations pertaining to restaurant food and safety guidelines. We will establish guidelines to maintain a healthy atmosphere. In addition, AutoRama will collaborate with local law enforcement specifically for the auto enthusiast section of the establishment. We will implement a stringent set of rules for vehicles that frequent our restaurant parking lot. A nominal fee will be required for using the area, which includes reserved sections during promotional events. As part of this fee, a window decal will be

provided.

By displaying this decal, individuals commit to following all road laws and prioritizing safety for themselves and others. Those who choose not to participate in the decal program will be denied access to the site outside of business hours. This measure ensures that law enforcement can identify and enforce guidelines for those permitted on the site. Consequently, it eliminates the stereotypes frequently associated with car enthusiasts, which improves the relationship between the auto community and law enforcement. Additionally, inventories are thoroughly inspected twice daily to ensure availability and quality.

The restaurant and its surroundings will be inspected for cleanliness. After these inspections, the day begins with food preparation. All ovens, grills, and fryers will be turned on and checked to ensure they are set to the proper cooking temperatures. As the daily employees arrive for their shifts, they must ensure that everything is properly set up and ready for customers. Since all employees are trained in every area of the restaurant, anyone can attend to any tasks that need to be done.

The management team will be responsible for ensuring the smooth running of operations on a daily basis. Their responsibilities include ensuring that all employee schedules align with the company’s needs and accommodate employee availability. The company's regular operational hours are from 11am to 11pm, although hours may vary on holidays and special events hosted by AutoRama. During these hours, the management team must ensure staggered scheduling to have the highest number of employees working during peak business hours during the day. Additionally, the team must monitor and enforce employee break times to comply with federal regulations. AutoRama is situated on the south side

of Indianapolis, an area with a dense population of middle to high class residents.

AutoRama is the main hub for automobile enthusiasts and car events on weekends. Its strategic location near main roads ensures easy accessibility for the target population, increasing visibility to a larger audience. This is essential for the success of the business. However, as a startup company, AutoRama still has many obstacles to overcome in terms of product/service design and development.

With a well-defined plan, these goals can be readily accomplished and challenges can be overcome. The schedule begins by assessing the current state of the business during its developmental and planning phases. The estimated timeline for pre-launch preparations is around 16 months. During this period, various decisions will be made regarding the products to be offered, the structure of advertising and promotion, the selection of companies providing products, as well as the necessary building and materials.

First, the business needs to find a site for development. It is recommended to allocate around two months to search for the right foundation site and develop the business accordingly. During this period, it is important to create an overview of the building requirements and plan out the necessary steps. This will ensure that once a suitable business site is secured, development can commence promptly. Additionally, AutoRama should initiate the search for distributors in the area who can receive inventory.

Planning is crucial for businesses as it ensures timely and accessible operations. Allocating around three weeks to explore various distributors and conduct thorough research and background checks is necessary. This period, when the physical establishment is still being constructed, allows for the prioritization of intangible goals. AutoRama will

focus on advertising and promotion strategies to effectively generate awareness, attract new customers, and maintain customer retention. Implementation of the most cost-effective yet extensive methods will be emphasized.

The study, testing, and implementation strategy for this project will take about 3 months. After that, we will proceed with selecting the appropriate equipment that meets the requirements of the business and can effectively handle all the kitchen's production needs. To ensure suitability and cost-effectiveness, we will reach out to various manufacturers, research their products, and possibly conduct tests before making a purchase. This equipment selection process is expected to take around 2 months.

The success or failure of the business will be determined by the quality of the food or product. Even if you have top-notch equipment and great business ideas, if the food doesn't meet expectations, everything else becomes irrelevant. AutoRama will be conducting extensive tests using various ingredients in different recipes, and collecting feedback through sample tastings, in order to determine the best recipe for their food. Once a recipe is finalized for each product, steps must be taken to protect it as a trade secret, ensuring that AutoRama's food remains unique and distinguishes itself from competitors. The testing and experimentation process for the recipes is expected to take approximately 3 months. By this time, the construction of the physical building should also be nearing completion.

During this time, the outlay will be critiqued, and finalized for the optimization of space. Once the kitchen and "behind the scenes" space of the building are finalized, the dining area, or customer area, needs to be designed. Since the theme of AutoRama Drive N is that of a

50’s diner, the approach and overall look of the area should reflect this time change. Decisions on materials, as well as delivery and setup, should take approximately 3 months to be completed.

During the remaining two months, various tasks need to be completed such as staff selection, scheduling setup, and establishment of day-to-day activities. Additionally, training and planning for the first month's startup and a special grand opening plan will take place. This timeline allows for any unexpected issues to be addressed and ensures everything is well-prepared for operations in March. It's important to note that challenges and risks cannot always be completely avoided.

AutoRama recognizes and accepts that not everything can be ideal, and acknowledges the potential risks and challenges that may need to be addressed. In the event that the distributor fails or is unable to fulfill orders, a contingency plan must be in place with an alternate company that can ensure timely delivery. This precaution aims to prevent a sudden decrease in inventory, which could have detrimental effects on the business. Given Indiana's unpredictable weather patterns, if adverse weather conditions impede the business's progress, a buffer period of two months allows for some flexibility in time planning. Additionally, the business plan is designed to accommodate a later start date, should it become necessary.

Financial Section The company is privately held by Nicholas Boothe, Amanda Rachel, and Kevin Donald. Each member contributed $125,000.00 for startup capital, with an additional loan of $77,500.00. This will enable the company to cover all startup costs and also have backup funds in case of unforeseen events. These financial resources will provide AutoRama Drive N with the means to

acquire and generate its own funds, ensuring its self-sufficiency.

Each member owns one third of the business, until year three, where there will be an option for Kevin and Amanda to sell their share in the business to Nicholas.

Risk Assessment

Although potential risks are unwanted, it makes a business and its partners stronger to be fully aware of any risks associated within the market. However unlikely some events may seem, to have a strategy to overcome these forebodings will allow the business a greater chance of survival. In the fast food/dine-in industry, there are factors that are out of anyone’s control. Listed are possible risks that may be associated with AutoRama Drive N, and the industry as a whole: * Increasing food prices, such as beef, potatoes, etc. In the restaurant industry, profit margins on food products is slowly shrinking, as prices for food increase because of feed prices, fertilizers, and demand continue to grow.

The economy remains in recession.

The economy is gradually recovering from the significant decline it experienced in recent years. Markets are slowly rebounding, and businesses are gradually returning to pre-recession standards. However, the number of auto enthusiasts visiting AutoRama, which is a drive-in style restaurant primarily targeting this crowd, is not as high as expected. Since the automotive community plays a substantial role in AutoRama's target customer base, if there is insufficient support from this community, resources will need to be redirected towards advertising and promotions to attract the desired customers.

Location

The decision on the location was made after careful planning and research. However, if the chosen location turns out to be less than ideal,

the advertising and promotional strategies will need to be adjusted to attract the desired crowd. Once customers have a chance to experience AutoRama's unique atmosphere and food, this risk will become less significant.

Appeal

As a small startup business, AutoRama must focus on appealing to local customers in the vicinity. Building a customer base is crucial for the success of the business during its initial phase. By conducting thorough research and planning, these risks can be minimized, and some may even be eliminated entirely.

It is essential for businesses to have a strategy in place to address each of these aspects to ensure their growth and resilience.