Sakae sushi business plan

BU2005 Entrepreneurship Sakae Sushi Business Plan By: Lu Mi (12668064) Zhou Ke Jun (12618536) Aditya Nandal (1266) Mayank Bhardwaj(12669440) mayank.[email protected]jcu. edu. au Executive Summary This report provides an analysis and evaluation of the current and prospective marketing, sales strategy, target customers, production cost, expenses and capital requirements of Sakae Sushi. It is an in depth report that discusses about the rise of Sakae Sushi as one of Singapore’s major restaurant chains.

This report talks about the methods implemented by Sakae Sushi to attract customers during the time of the Asian financial crisis. This report contains financial statements of Sakae Sushi; it also contains information related to the costs involved in running the business, i. e. expenses, salaries and cost of raw materials, etc. It also contains information about the management team of Sakae Sushi and it provides insights of the industry and the company on the whole. Also discussed here are the various products and services offered at Sakae Sushi and the methods implemented by them to promote and advertise their brand to the masses.

Sakae sushi took the heart of many Singaporeans and there innovative idea of serving sushi on the conveyor belt attracted more and more customers, not only the Japanese people living in Singapore but also tourists from all over the world visiting Singapore being a tourist hotspot. Many foreigners visiting Singapore were in search of great ambience and good quality fine dining cuisine, which was served at Sakae Sushi and the hospitality of the staff at Sakae sushi made their customers visit them more often and also recommend them to their fellow colleagues and friends. Overview of the Industry

Mr. Douglas Foo would never have imagined that taking a gamble of launching his business during tough times would have paid of so much and help him reach such heights, as during the times of recession it is always very hard to enter a new market and sustain in the market, but hishard workalong with the compassion and commitment of his colleagues and their dream of becoming the best in the business not only allowed the business to flourish during hard times but in due course it also became one of the most famous and trusted restaurant in qSingapore and also in different parts of Asia. Mr.

The innovative idea of using conveyor belt to serve food met with a huge success and attracted customers who were looking for a great ambience to enjoy delicious food. He also introduced Sakae Delivery that enabled people to even order sushi at their home by calling Sakae Sushi directly. Their good quality food, safeenvironmentand customer friendly service allowed them to achieve high customer satisfaction, thus making them one of the best restaurant chains not only in Singapore but in many different parts of Asia (Apex-Pal, 2003). Mr.

Foo does not just want to stop here; he has plans enter other Asian markets like North Korea that has strong monopoly power and also he still hopes for achieving success in the United States of America. Market/Product Positioning Sakae sushi not only serves sushi but it also has a variety of products that were introduced by Mr. Foo to maintain domination in the market. He knew very well that Singapore being a tourist nation attracts many foreigners who have different taste buds, so he introduced various other signature dishes that suit the taste buds of the customers.

For any firm to excel in its marketing efforts it needs to focus on these 4 P’s so as to effectively market their product and create a well-established brand image. (Please refer to appendix 1. 1) Product The term product refers to the tangible physical products as well as services that include decisions to be made regarding the brand name, styling, packaging and design, etc. of a product. The way Sakae Sushi has brought about a change to this concept is something for which the management at Sakae Sushi deserves a great round of applause.

Introducing an already known product to the customers in a totally new way and effectively marketing it to the masses by introducing a totally new concept of conveyor belt is something to learn from. It not only requires creativity but also innovation at its best, so that whatever hard work is put in is reflected by the craving the customers have for their sushi (Lovelock, 2007). Price The level of competition in today’s world is very high and everything costs a great amount ofmoneyas compared to the past.

SWOT Analysis Strengths Well-established brand in terms of customer satisfaction and also they provide quality service. Market leaders and trendsetters in terms of addressing the needs of the customers by bringing new and apt themes and promotions every now and then that is according to the demands of their customers. Managing high sales revenue without charging hefty prices to their customers. Dedicated and honest staff that always looks to serve the customers with a smile. Weaknesses The business structure is highly complex in terms of operations and the cost of maintenance is also high.

Providing on the job training to their employees also costs a lot of money. Opportunities Can look to capitalize on the advantage they have over their competitors as a well-established brand. They also have good tie-ups in foreign countries including major Asian economies like China. Their company is a well-recognized company listed on Singapore Stock Exchange. Threats Competitors can copy their business idea and try to monopolize on it. The competitors can offer jobs to their employees at their own restaurant. It is also difficult to keep up with the ever-changing demands of the customers.

By 2002, Sakae was in Indonesia as well and was grossing annual revenue of around $23 million SGD. For the financial year ended 31 December 2009, the Group reported revenue of SGD88. 8 million and net profit of SGD3. 3 million (Theresianto, 2008). In 2001 Sakae Sushi opened its first Drive through restaurant in Trade Hub 21 in Jurong east MRT station. Sakae Sushi tends to open their branches near MRT stations so as to attract the crowd and the frequent travellers. In 2006 Sakae sushi decided to expand its business to north Korea, Mr.

Foo made his first visit to North Korea in 2001 as part of a Singapore Manufacturers’ Federation delegation and has maintained the contacts he made then. He believes it will be ” business as usual”, and he might step up talks with his North Korean business partners on plans to take his sushi outlets there and bring North Korean cuisine to Singapore. In 2003, Sakae’s parent company Apex-Pal was listed on the Singapore Stock Exchange. Apex-Pal’s food businesses, of which Sakae is the flagship brand, represented over 95% of the company’s revenues.

Sakae’s simple price structure proved to be very popular. The majority of sushi dishes were priced at S$1. 90 and premium dishes at S$6. 50, which made Sakae more affordable than other Japanese restaurants. Suppliers The decrease in purchases from them in FY 2001 and FY 2002 is due to Sakae Sushi’s ability to secure alternative sources of those products at lower costs. To reduce their reliance on All Big Trading Co. and to diversify our supplier base for seafood, they began to purchase seafood from Surapon Foods Public Company Limited and LianHup Fish Merchant Co. n FY 2001 and FY 2002 respectively. These purchases helped them increase the turnover, which was also due to the increase in the number of Sakae Sushi restaurants. In addition to Marukawa Trading, they also purchased frozen food products from Tomo-Ya Japanese Food Trading, Shimaya Trading Pte Ltd and Moon Marine Singapore Pte Ltd who supply Sakae Sushi with frozen food products. The amount of purchases made by the Company from each of these three suppliers was relatively constant for the last three financial years (Apex-Pal International, 2009).

The following are the suppliers for Sakae Sushi: All Big Trading Co. (All Big Frozen Food Pte Ltd) – Seafood Marukawa Trading – Dried / frozen food products Tomo-Ya Japanese Food Trading- Frozen food products Shimaya Trading Pte Ltd – Frozen food products Moon Marine Singapore Pte Ltd – Frozen food products Surapon Foods Public Company Limited – Seafood LianHup Fish Merchant Co. – Seafood Staff training and requirements Sakae Sushi provides all new employees with a complete orientation and training which is specific to their positions.

The Group has also made investments in associates in the beginning of the year, which was funded by bank loans. Shareholder’s equity stood at $27. 2 million as at 31 December 2011 (Full YearFinancial StatementAnd Dividend Announcement {n. d. }). The Group was in a negative working capital position of $5. 9 million as at 31 December 2011 due to short-term revolving loans balance of $10. 3 million, which are renewable at maturity. The Group has repaid some of the revolving loans during the year (Full Year Financial Statement And Dividend Announcement {n. d. }). Financial Highlights A.

Actual (‘ 000) Results200420052006200720082009 Revenue45, 16151, 90566, 64583, 83893, 80488, 817 Profit/Loss before tax2, 7964, 7436, 6973, 485(3, 695)3, 336 Profit/Loss attributes to share holders2. 0853, 6845, 0812, 261(3, 748)3, 262 Non-current assets4, 8334, 62712, 43318, 51619, 87630, 852 Non-current liabilities30128942159058610, 088 Shareholders equity10, 76213, 57620, 51516, 39811, 15320, 256 Net assets per share10. 0912. 7414. 4511. 557. 8614. 26 Earnings per share1. 963. 463. 741. 59(2. 64)2. 30 B. Expected (‘ 000) Results201020112012 Revenue71, 69583, 644. 1790, 058. 03 Profit/Loss before tax2, 893. 672, 909. 942, 604. 4 Profit/Loss attributes to share holders2, 104. 172, 107. 361, 844. 59 Non-current assets15, 189. 5016, 915. 5818. 963. 68 Non-current liabilities2, 045. 832, 336. 642, 677. 91 Shareholders equity15, 443. 3316, 223. 5616, 664. 81 Net assets per share11. 8312. 1112. 01 Earnings per share1. 741. 701. 40 (*Projected Figures based on previous year average) (Apex-Pal International, 2009) Management Profile Board of Directors Douglas Foo Peow Yong (Chairman and Chief Executive Officer) Foo Lilian (Executive Director and Executive Vice President) Andy Ong Siew Kwee (Non-Executive and Independent Director)

From October 1982 to April 1987, Mr. Lim served as a senior corporate banking officer in Overseas Union Bank Limited. In May 1987, he joined Banque Paribas, Singapore Branch as a deputy manager of banking, where he stayed until April 1989. He was appointed an executive director of AllianceTechnologyand Development Limited, a company listed on the Main Board of the SGX-ST, in May 1989. Mr. Lim left Alliance Technology and Development Limited in March 2000. Mr. Lim is also an independent director of Twinwood Engineering Limited, a company listed on the SGX- CATALIST, from 1997 to 2007 (Apex-Pal International, 2009). MR.

ANDY ONG SIEW KWEE (Independent Director) Mr. Andy Ong Siew Kwee was also appointed as Sakae Sushi’s Independent Director on 14 July 2003. Mr. Ong is the CEO of ERC Holdings Pte Ltd. ERC is a leading player in theeducationindustry in Asia. He oversees the regional development as well as the merger and acquisition activities of the firm. He is also the Founding President of the Financial Planning Association of Singapore, a professional body for financial services that issues world-renowned Certified Financial Planner marks. He has written several best-selling books on financial management and business (Apex-Pal International, 2009).

This list should include all possible issues no matter how likely they are to occur. Since Singapore is an island one of the major risk factors can be floods. Developing the Plan Once the assessment stage has been completed, the structure of the plan can be established. The plan will contain a range of milestones to move the organization from disrupted status to return to normal operations. The first important milestone is about dealing with the aftermath of a disaster. The next stage is to determine which business functions need to be resumed.

The plan will be detailed, and will identify key individuals who should be familiar with their duties (The Contingency Planning Guide, 2002). Testing the Plan Once this plan has been developed it must be subjected to rigorous testing. The testing process must be properly planned and should be carried out in a suitable environment to produce authentic conditions. Those who would undertake the major activities of the business should test the plan. The test procedures should be documented and the results recorded. This is important to ensure that feedback is obtained for fine-tuning the Plan.