NATIONAL OPEN UNIVERSITY OF NIGERIA

BUSINESS PLAN ON CATERING SERVICES

PREPARED BY

FULL NAME: ADEBISI TAIWO

MATRIC NUMBER: NOU173030256

DEPARTMENT: BSc. CRIMINOLOGY & SECURITY STUDIES

FACULTY: SOCIAL SCIENCE

PHONE NUMBER: 08082255560

EMAIL: [email protected]

INCUBATION CENTRE: SOUTH WEST

STUDY CENTRE: MCCARTHY STUDY CENTRE

SUSTAINABLE DEVELOPMENT GOALS: ZERO HUNGER, GOOD

HEALTH AND WELL BEING FOR PEOPLE

PRESENTED IN PARTIAL FULFILMENT FOR PASSING

GST 302 – BUSINESS CREATION AND GROWTH

1.0 Executive Summary

Ade-Fast Catering Services is a catering business that will be based in Lagos. Our intention of
starting a catering business in Lagos is to deliver the best quality catering services at an
affordable price to a wide range of customers.

Our services will involve catering for parties, outdoor events, weddings, holiday parties, birthday
parties, corporate events, picnics, anniversaries and special events et al.

Work will always be on going when it comes to working with our clients to give them the best.
We have perfected our plans on how to execute that. At Ade-Fast Catering Services, we are
going to take pride in working with our clients to deliver high quality and nutritious meals and
excellent services while working with their budget. Our customers don’t need to break the bank
to get the best of foods and services from us.

As part of our plans to make our customers our number one priority, we have perfected plans to
work with our clients to provide customized services based on their budget. We will be involved
in delivery services for our clients, rentals services, event management and consultancy services.

A Ade-Fast Catering Services, we will go the extra mile to give our esteemed customers value
for their money irrespective of the size of their budget. As such, we do not intend to turn any one
down, because of the meager amount of cash they may have.

Ade-Fast Catering Services is own and managed by ADEBISI TAIWO. He will be bringing Him
experience to fore, to help Ade-Fast Catering Services grow to become the number one choice in
the whole of Lagos and environs and also a one – stop – shop when it is about catering services.

1.1 Our Vision Statement

To become the number one catering service provider in the whole of Lagos.
1.2.1 Our Mission Statement

To establish a standard catering business that will meet all the catering needs (cooking, event
planning, rentals, trainings and consultancy services) of people in Lagos and neighboring states.

1.3 Objective for Catering Business in Nigeria

 Creating of innovative, attractive and variant menu

 Offering healthy, fairly priced, ethnically variant food options
 Providing excellent customer services that enhances the rapport with clients through
responsiveness to needs and requests
 Creating sustainable and high quality jobs for employees
 Providing rewarding wages and benefits such as career accelerated opportunities, access
to skill acquisition and capacity development for the staffs.

1.4 Success indicators

 Creative, innovative skills and practical experience in catering business.

 Capacity to consistently provide creative, innovative high quality, nutritional, and
flavorful foods and snacks.
 Extraordinary and peculiar catering innovations that makes us own the value chain to a
good extent.
 Well trained staffs that are capable of bringing operational, marketing and promotional
skills to the business.

2.0 Description of the Organisation

2.1 Company Ownership

Ade-Fast catering services is owned by ADEBISI TAIWO. With over 6 years’ experience in
catering business and numerous exposure to all aspect of the catering business, I’ve being able to
master the technical requirements, financial management, staff recruitment and organization
skills among others things necessary to give the firm good commendation from our clients. My
managerial skills has also helped in putting together a workforce for over 5 years, which
will also help me to coordinate the team work in most aspect of the company. I am the CEO of
the company overseeing the day to day activities of the business.

2.2 Historical Background

The idea to be self-employed was adopted as a friend but was led into a business commence a
profit making venture through catering and the business is in its infant stage and subject to
massive improvement and development with the effusion of time. Ideas and resources are being
put in place to take the business to its top-notch.

Catering service isn’t just another way of making money to me, but rather, I find intense joy in
doing it. Catering became a profession out of the intense passion I have for it. I have been
involved in catering one way or the other. My sister is a caterer by profession hence I had been
involved in the business ever since my teenage days but I started rendering this service officially
as a business six years ago (2014) although it was on a very small scale because I was restricted
in circumstances. So I made foods for small friends picnics, naming ceremony etc.. Having such
a vast array of knowledge and experience about catering, I strongly belief this will give me a
strong progressive leap forward in this industry and also in the business world. I have a great
passion for self-reliance and creating job opportunities.

2.3 Business Location.

The proposed location for this business is at our residential location at Lagos. This is because
Lagos being a very populated city. And both weekends and weekdays these exist occasion that
would require services of catering professional, ranging from birthdays, burials, wedding’s, get
together, conferences, crusades, outings, etc.. Hence a very large market exist in Lagos. In fact
the market is under saturated because of the population.
2.4 Organizational Structure

The structure of Ade-Fast catering services is quite complex and dynamic. The organizational
structure shows how every partners and staff work as a team to accomplish the common goals
and objectives of the partnership venture. It also shows the obligations and duties assigned to
staffs based on hierarchy.

Roles and Responsibilities

Chief Executive Officer – CEO:

 Responsible for providing direction for the business

 Creating, communicating, and implementing the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the overall
organization’s strategy.
 Responsible for the day to day running of the business
 Responsible for handling high profiled clients and deals
 Responsible for fixing prices and signing business deals
 Responsible for recruitment
 Responsible for the payment of salaries
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
 Reports to the board

Manager:

 Responsible for managing the daily activities in the restaurant

 Ensures that the bakery facility is in tip top shape and conducive enough to welcome
customers
 Interfaces with third – party providers (vendors)
 Reports to the Chief Executive Officer
 Attends to Customers complains and enquiries
 Prepares budget and reports for the organization
  Any other duty as assigned by the CEO

Chief Chef:

 Responsible for preparing different meals as requested by our clients

 Makes lists and budget for cooking supplies
 Oversees the entire coking process
 Responsible for training new cooks
 Makes sure that quality is maintained at all times

Cooking Assistants

 Assists the chief chef in the kitchen

 Runs errands for the chief chef
 Responsible for purchasing food ingredients for the organization
 Ensures that the kitchen is kept clean at all times
 Ensures that all kitchen wares are kept at their proper position after use.
 Any others duty as assigned by the Chief Chef

Admin / Personnel Manager

 Receives payments on behalf of the restaurant

 Handles all HR concerns for the organization
 Supervises employees during events
 Issues receipt to customers
 Prepares financial report at the end of every working week
 Handles all financial transaction on behalf of the company
 Interfaces with our bankers
 Responsible for payment of tax, levies and utility bills
 Any other duty as assigned by the CEO /
Sales and Marketing Officer:

 Sources for clients for the company

 Responsible for promoting the company’s image
 Responsible for creating marketing and sales strategies, etc.
 Represents the organization in some strategic business meetings
 Any other duty as assigned by the Chief Operating Officer / Bakery manager

Driver:

 Delivers customers’ orders promptly

 Runs errand for the organization
 Transports employees and goods to and fro event venues
 Assists in setting up cooking and serving stands during events
 Any other duty as assigned by the personnel manager

Servers (Contract Staff)

 Serves guest during events / parties

 Assists in cleaning dishes after events / parties
 Assists in the movement of cooking utensils, plates, spoons and other relevant wares
 Assists in setting up cooking and serving stands during events
 Any other duty as assigned by the personnel manager

Cleaners / Dish Washers:

 Responsible for cleaning the office facility and kitchen at all times
 Ensure that toiletries and supplies don’t run out of stock
 Responsible for washing dishes before and after events
 Cleans both the interior and exterior of the building
 Any other duty as assigned by the personnel manager
3.0 The Product/Service

3.1 Description of the produce/service

Ade-Fast Catering Services, we will be involved in cooking both local foods and intercontinental
foods for our clients. Our intention is not to restrict our services to only cooking of foods, but we
are also going to be involved in spreading our tentacles to cover all aspects of the ideal catering
business.

In as much as cooking meals will be our number one priority as a catering business, we will also
be involved in event management, rental services, consultancy and trainings. Here are some of
the products and services we will be offering our clients;

 Corporate Catering
 Wedding Catering
 Holiday Catering
 Breakfast Catering
 Picnic Catering
 Box Lunch Catering
 Cocktail Party Catering
 Pig Roast Catering
 BBQ Catering
 Canteen Management
 Event Management
 Sales of Cakes
 Rental Services
 Consultancy Services
 Trainings
3.2 Product/service uniqueness

Our Pricing Strategy

Launching a new business is not an easy task especially if you are launching a business / idea
that is not entirely new from what is obtainable in the location you intend launching it. So, part
of our strategy for entering the market is to leverage on pricing to gain a good percentage of the
available market. Of course we will attract clients by offering quality catering services for rock –
bottom price. A price that probably will be the lowest in the industry. Although prices for our
catering services and other related services will be lower than what is obtainable in the industry,
but it wouldn’t remain so for a long time. As a matter of fact, we intend jacking up the prices
gradually until it falls at par with what is obtainable in the industry. We aim to achieve this
within a year of launching the business.

Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer
different payment options as it suits them. Here are the payment options that we will make
available to our clients;

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer
 Payment via
 Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our plans
without any itches.

Marketing Strategy and Sales Strategy

Ade-Fast Catering Services intends to become the number one catering Services in the whole of
Lagos and the only way for us to achieve this is to engage in guerilla marketing. Our sales and
marketing team will be recruited based on their vast experience in the industry and they will be
trained on a regular basis, so as to be well equipped to meet their targets and the overall goal of
the organization.

Our goal is to become a one-size-fits- all kind of service people when it comes to catering
services in Lagos and its environs. This is why we must explore all the marketing tactics
available to us if indeed we want to fulfill our mandate. In nut a shell, we will explore the
following marketing and sales strategies to promote our catering business;

 Direct Marketing
 Marketing via Our Sponsored TV Programs and Community Based Events
 Erect Our Billboards in Strategic locations around the city
 Sales Reps
 Online Marketing (via our official website, social media platforms and blog et al)
 Referral Marketing
 Promotion of our products during our training sessions in our catering school

3.3 Technological Changes

In the meantime, the machine input used for the catering services and make us very efficient to
meet the clients targets and expectations would be adopted. In technology wise, the firm will
acquire any technological machine input that will be needed to make the services much
efficiency and effective so as to meet our target market. In response to the growing population
of potential clients online will use free websites such as MySpace, Facebook and Twitter to
create a web presence for itself. In the near future we will be is looking forward to create it’s
own website and application utilizing the latest web site technology, the website will be used to
advertise the company and announce new services Furthermore, utilizing the latest technology,
consumers will be able to make an online odering and quotations.
3.4 Product Future

The business look forward to growth and expansion in the future which is now. It is a going
concern which intends to run for an unlimited number of years, as far as we are able to meet the
demand of our target market, sales targets and excess working capital to stay in the business.

4.0 Market Analysis

4.1 Market segmentation

No doubt, the target market for this type businesses cut across people of all walks of life and
organizations. This is because everyone at one point would need to celebrate a course or have
people gather for a function either, religious, personal, family etc. Parties and gatherings are just
not evitable for anyone. More so, need to eat is not restricted to only a group of people or
organization, it cuts across people of all walks of life. Yes, services is within the reach of
everybody and we intend serving available clients, but in order to effectively make plans and
take actions towards meeting our sales and marketing goals.

4.2 Strategy for target market segmentation

Ade-Fast Catering Services is coming into the food industry knowing completely well that there
are other competent and well established catering businesses . However, we have decided to
critically study the industry and have realized that in order to have a strategy of competitive
advantage over our competitors; we must do what they are not doing.

In view of the above stated fact, we have decided to offer a wide range of styled services that
will meet the needs of a wide range of clientele base. We want to be the one stop shop when it
comes to catering services in the whole of Lagos . Our clients should be able to walk in and we
will deliver all they need. This is the competitive advantage that we are bringing to the Industry.
4.3 Analysis of the industry

The Association of Fast Food and Confectioners of Nigerian (AFFCON), an umbrella body of
Quick Service Restaurants (QSR) has revealed that the Nigerian food industry is estimated to
worth over a trillion Naira, with the Fast Food segment gulping over N250 billion, and this
number is still expected to rise in the future.

Euromonitor, a leading research firm also stated that the Nigerian food industry is one of the
best-performing industries in country despite the economy downturn and huge decline in
consumer spending power over the years. The industry has grown so well and consumers are still
making the switch from unpackaged and unbranded products to packaged products as they
become more aware.

4.4 SWOT Analysis

We are quite aware that is a stiffer competition when it comes to the catering trade in Lagos ,
which is why we decided to take our time to perfect our strategies before launching out. Our goal
is to become a leading all – round catering Services in the whole of Lagos and the only way to
achieve that is to out – perform our competitors. In order to outperform our competitors in
Chicago, we hired a business consultant to help us conduct SWOT analysis.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and
also the threats that we are likely going to be exposed to in establishing our catering business in
Lagos. Hence, is a summary from the result of the SWOT analysis that was

Strength

We are a complete catering business that does not offer outdoor catering services alone, but offer
consultancy services, rental services and trainings. The truth is that, people will prefer to engage
a client that can provide them with all they would need to make their events a memory one.
It means that the need to sign different contracts with different providers (vendors) will not arise
once they engage our services. Another positive for us is that we will be working with the best of
caterers in the Lagos; they are going to be guest lecturers in our Catering School

Weakness

Our weakness could be the challenge of hiring and keeping the best cooks / chefs in our payroll
since most of them may want to work for themselves. This challenge applies to almost all
catering business owners. Yet another weakness is that we are new in Lagos.

 Opportunities

When it comes to catering services, the opportunities that are available cannot be quantified. Any
entrepreneur can start his or his own outdoor catering business anywhere in the world and still
make huge returns on his or his investment.

At Ade-Fast Catering Services that offer a wide range of related catering services; hence we are
likely going to maximize the opportunities available for catering business in Lagos.

 Threat

There are a couple of first class catering services companies in Lagos, and they are a huge threat
to us. They pose a threat to us because they are already established, and their brand is well
accepted. Also, most of them can boast of a have huge clientele base. Our competitors are able to
develop expensive new marketing and sales campaigns and that will mean that we will have to
struggle to catch – up.

5.0 Financial Analysis

5.1 Important Assumptions

It is good to note that catering business is one which is done in behalf of a client. All factors of
production require are charge to the clients. The organizational skill and expertise is what the
business profit from. So therefore, we run at an almost zero production process. Because all cost
of services are provided by the clients.

5.2 Startup cost

Start-Up Expenses Amount

Graphic Logo and Name Creation N1,000
Permits + Lease Deposit N1200
Contingency N100,00
Outdoor Sign N3000
Building Improvements N50000
Working Capital N172050
Pre Opening Expenses N14080
Total Start-Up Expenses N252050

Start-Up Assets
Artwork N800
Walk In Cooler N8000
Commercial Dishwashers with Sink in Table N70000
Reach in Stainless Steel Freezers (2) N60000
Stainless Steel Cold Station N30000
20 quart food processor/blender N9000
Ice Maker with Storage Bin N40000
oven and oven accessories N110000
3 Door Reach In Beverage Cooler w/Glass Door N30,500
Sandwich Prep Reach Ins (2) N5,600
Kitchen Small wares N1,500
Start-Up Costs

Six Burner Restaurant Range (2) N30,600

Chrome Shelving Systems (6) N5000
Reach In Coolers (4) N70,200
Stainless Steel Work Tables (3) N10200
Hutch for Stainless Steel Table (2) N8000
Liquid Fire Protection System N40000
Stainless Steel 3 bowl sink N10500
Liquid Fire Protection System N40000
Stainless Steel 3 bowl sink N1500
20 wood round / oval tables N20000
Café Chairs N5,000
Lighting N10,000
Table cloths , napkins N10,200
Art, Décor N20,000
Cash register + POS System N40,000
Ofc PC N1,200
Total Start-Up Assets N110500

Total Required Start-Up Costs N363000

5.3 Source and Use of Funds

Total start-up costs are estimated to be N3, 63000. The majority of the costs are associated
with the equipment, inventory and furniture and furnishings. Total costs for these items are
reported to be N110500. The costs are associated with build out and renovation of the to
provide updated plumbing and creating additional space in the dining area by removing a non-
supporting wall: N50000. Additional startup expenses are in the form of working capital and
contingency N182500. Mrs Jeremiah Emem will contribute N174000 and are requesting an
additional N189000 in the form of a bank loan. The loan is expected to be a fully amortizing 5
year term

5.4 Sales Forecast

We are expecting a conservative 5% increase in sales revenues annually over the next 3
years. The growth is adjusted for inflation.
We are basing our forecasting on minimum of 3 contract a week making 12 jobs in a
month. As stated earlier this our services cost and overhead are carried by the clients. We
are unique in that we charge for our expertise. So we do not have a production cost since
that only occurs whenever we have a contract.

5.4.1 Weekly forecast

SN Contracts Expected profits
1 Naming 30,000
2 Birthdays 20,000
3 Weddings 100000
Total 150,000

NB: all forecast are based on minimum forecast to cover for variations

5.4.2 Annual profit forecast

The following table shows expected Sales Forecast for the next 3 years:

Table Annual Sales Forecast

Annual Sales Forecast Year 1 Year 2 Year 3

Sales
Revenues N2,028,422 N2,079,843 N2,133,835
 Additional Revenues 0 81,600 102,000
Total Sales N2,028,422 N2,161,443 N2,235,835
Controllable Costs
COGS N402,113 N414,176 N426,602
Payroll N269,987 N323,057 N340,027
Total Prime Cost N672,100 N737,234 N766,628
Controllable Profit N1,356,322 N1,424,209 N1, 469,207

5.4.3 Sustainability and Expansion Strategy

Ade-Fast Catering Service has plans to implement succession plans. As part of the plans to
sustain the business and also to expand the business, we will continue to invest in the training of
our employees and also continue to explore new opportunities to generate income for the
business. We are certain that if we get things right and we work hard; we are likely going to
triple our income in the second year of our operations.