Organic Restaurant Business Plan

Name: Alisha Sajjal

ID 500432605
Business Planning Assignment
ASB4904

Mission: To be a centre of consciousness for organic food and promote healthy lifestyle
while maintaining quality and facilitate our customers to the fullest.
1.

Executive summary..4

2.

Industry Analysis.

ORGANIC POT RESTAURANT

2.1.

3.

Background..

2.1.1. Overview

2.2.

Brand Positioning.

2.2.1. Diversity of existing Restaurants in Lahore..

2.2.2. Market trend and opportunities..

2.2.3. Organic Pots relative Position..

2.2.4. Functional and Symbolic attributes...

2.3.

Prospects and Trends

2.3.1. Lahoris love for food.

2.3.2. Contrasting Global trend

2.3.3. No more compromising on Quality of Food..

2.3.4. Organic Awareness

2.3.5.

Environment Protection

2.3.6.

Health consciousness.

2.4.

Porter Five Forces Model

2.4.1.

Rivalry among existing competitors..

2.4.2.

Threat of new Entrants...

2.4.3.

Bargaining power of suppliers...

2.4.4.

Bargaining power of customers.

2.4.5.

Threat of Substitutes..

2.5.

PESTLE Analysis.

2.5.1.

Political..

2.5.2.

Economic..

2.5.3.

Social/Cultural...

2.5.4.

Technological.

2.5.5.

Legal..

2.5.6.

Environmental

2.6.

SWOT Analysis.

The Product..

11

3.1.

Vision and mission statements.....

11

3.2.

Objectives of the business.

11

3.3.

Core Business

11

3.3.1 Organic Food.

11

3.3.2 Key Values and benefits

12
1

ORGANIC POT RESTAURANT

3.3.3 Customer experience and ambiance..

12

3.3.4 Weekend Deals and up to date Menu

12

3.4.

Differentiating factors..

12

3.4.1 Initiating new trend in Lahore

12

3.4.2 Organic Offerings at affordable prices.

12

3.4.3 Garden theme.

12

3.4.4 Health assurance

12

3.4.5 Extensive New Variety and combinations.

13

3.4.6 All Day Breakfast options.

13

3.5.

Product Life cycle.

13

3.5.1 Introduction stage..

13

3.6.

4.

5.

Potential Suppliers

13

3.6.1 Suppliers

13

Market Research.

14

4.1.

Market Share

14

4.1.1

Market Share of Organic Pot..

14

4.1.2

Need for an Organic restaurant..

14

4.2.

Analysis of Customers Questionnaires.......

15

4.2.1

Questionnaire findings...

15

4.3.

Target Market and segmentation.

15

4.3.1

Target Markets...

15

4.4.

Change Anticipation

15

4.4.1. Additional Kitchen equipment..

15

4.4.2. Seasonality of ingredients.

15

4.4.3. Need for more variety.

16

4.4.4. Less Available Space.

16

Marketing Strategy.

16

5.1.

Brand Image.

16

5.1.1

Brand Name...

16

5.1.2

Restaurant Logo.

16

5.1.3

Colour selection for logo...

16

5.2.

Pricing...

17

5.2.1

Cost plus and psychological pricing.

17

5.3.

Placement..

17
2

ORGANIC POT RESTAURANT

6.

7.

5.3.1

Gulberg Road.

17

5.3.2

Rent

18

5.4.

Highlighted benefits to increase sales..

18

5.5.

Promotional techniques....

18

5.5.1

Word of mouth and reputation.....

18

5.5.2

Above the line promotion..

18

5.5.3

Below the line promotion..

19

5.5.4

Advertising Budget

19

5.6.

Future Market Strategy

19

5.6.1.

Market Penetration.

19

5.7.

Business Ethics.

19

5.7.1

Rules of conduct

19

Processes.

20

6.1

Quality Policy

20

6.1.1

Quality in Product..

20

6.1.2

Quality in People..

20

6.1.3

Quality in customer personal assistance

20

6.2.

Information flow..

20

6.2.1

Flat Structure.

20

6.3.

Essential Equipment.

21

Personnel.

22

7.1.

Curricula Vitae.

22

7.2.

Organizational structure..

22

7.3.

Business Strategy.

22

7.3.1 Differentiation strategy.

22

7.4.

Who does what (Operations)

23

7.4.1 Supplies arrival day..

23

7.4.2 Routine operation.

23

7.5.

Training

7.5.1 Initial training.

24
24

8.

Financials.....

25

9.

Action Plan..

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ORGANIC POT RESTAURANT

1.Executive summary
Organic Pot with tag line filled with nutrition is a first restaurant of its kind in Lahore that
will only use organic ingredients and provide unique variety at affordable prices to cater all
segments. Food offered will be gluten and nitrate free, not processed and make people aware
that how only one aspect that is Organic can make a huge difference towards healthy
lifestyle. It will help the customers to maintain balanced diet and protect them from diseases
like cancer, heart attacks and obesity issues associated with pesticides usage and fast growing
injections.
It is a sole proprietorship business that will be located in Gulberg Lahore, a place known for
food. As the restaurant will work on differentiating strategy unique indoor garden theme
ambiance will be provided to add more freshness to customers experience. Organic farm
(Zacky farms) will be the main supplier. Customers comfort will come first and to facilitate
them online reservations option will be provided on website that is still only limited to big
restaurants in Lahore.
Organic pot believes in penetrating the market in future and making their products most
voted by customers and later on more branches will be open up within Lahore as well as
other cities like Multan and Islamabad thus moving towards market development. In terms of
pricing, Organic Pot will use cost plus and psychological pricing strategies to attract
customers and maintain their market share. Promotions at this stage will be done through
social media and flyers. Quality policies and business ethics will be closely considered and
the business will be able to breakeven within 1 st year of its business and payback period of 13
months.

ORGANIC POT RESTAURANT

2.Industry Analysis
2.1.

Background

2.1.1. Overview. Agriculture is the prime sector that contributes to Pakistan

economy. Around 30% of total area of Pakistan is suitable for growing crops and
70% of countrys foreign exchange earnings are generated through exporting
these valuable crops (Aslam, 2012). According to a research conducted by BMI
Group (2015) there is a 9.9% increase in per capita food consumption in
Pakistan whereas consumption of drinks increased by 3.1%. Main highlighted
reasons included were increase in population, higher per capita income and
improvement in standards of living. Agriculture contributes around 24% towards
the GDP of Pakistan (Pakistan Bureau of Statistcis, 2015). Moreover statistics
show that trend is moving towards more healthy food. Banks like Agriculture
development Bank of Pakistan and Zarari Taraqiati Bant Ltd. are providing
loans for organic agriculture (Govt. of Punjab, 2015).
2.2. Brand Positioning
2.2.1. Diversity of existing Restaurants in Lahore. In Pakistan there are four
provinces, however Punjab has the most suitable land when comes to
agriculture. Moreover Lahore, the Hub of Punjabis is known as the city of food
lovers. According to Sibtain (2012), Food to Lahoris is what a pen is to writer
or a credit card to a shopaholic. There are lower to upper range restaurants
present in most areas which include Dhabas1 along with famous restaurants like
Tabbaq, Bundu Khan, Shezan etc. The list also move along Desi 2 side to
continental and caf trend offering fusion of different cuisines like caf Aylanto,
Barberra Caf, Caf Rock etc.
2.2.2. Market trend and opportunities. Although as mentioned in previous point
there are many restaurants already present in Lahore targeting different income
groups and providing diversified variety. However, as the trend is moving
towards more healthy and organic food this slice is still majorly untapped in
restaurants of Lahore. Organic markets are in hype like Khalis food market and
Zacky Farms where organic fruits, vegetables and dairy products are sold (Raza,
2015). However when comes to a full fledge restaurant that not only cook with
fresh organic ingredients but provide customers with variety as well as heathy,
chemical and processed free food, this concept was never catered before in
Lahore.
2.2.3. Organic Pots relative Position. The restaurant will cater needs of every
segment of people providing them with fresh and excellent quality of organic
food, vast variety and exceptional ambiance yet keeping it all at affordable
prices. The menu of the restaurant is designed in such a way that, drinks to
salads, burgers to pizzas, desi to continental, everything is offered in organic
1 Roadside restaurants offering local food
2 Desi: Loose term use for people of sub-continent
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ORGANIC POT RESTAURANT

way which assures a healthy living. Thus it all sums up to promoting and
offering a healthier lifestyle at reasonable price rather than just food.
2.2.4. Functional and Symbolic attributes. Organic pots functional attributes will
be the good quality food and ambiance provided to the customers. Experienced
staff will be hired to provide personalised service to the customers. Symbolic
attributes will include the happiness and satisfaction that customers will feel
when the will leave the place. These points will be considered closely by
Organic pot in terms of its brand positioning.

2.3.

Prospects and Trends

2.3.1. Lahoris love for food. In Pakistan an increasing trend is evident in food and
beverage industry. It is reflected that manufacturing sector of Pakistan major
share had moved from textile to food industry lately (Iqbal, 2014). This growing
trend is more evident in Lahore (City of Pakistan) due to their love for food as
well as presence of arable land. Lahoris are getting more and more inclined
towards eating out trend (Dawn Newspaper, 2016). However the previous
trend of fast food chain is changing towards more awareness for good quality,
variety and healthy food. Lahoris now want value for money and do not want to
compromise their health for taste only.
2.3.2. Contrasting Global trend. Globally consumers are moving towards more diet
conscious, nutritious and eco-friendly products (Mintel, 2016). This trend is
pertinent in Pakistan as well. A study highlighted it that people are moving
towards Food gardening trend where fresh ingredients are encouraged and are
paid for more rather than normal processed food (Vittles & Co., 2016).
2.3.3. No more compromising on Quality of Food. In a recent article 2 main
highlighted trends in food out of 5 were vegetables are the new meat and Go
organic. One of the local reason behind it is deteriorating quality of food
offered in restaurants and preference of fresh food after the Punjab Food
Authority raid episodes in many restaurants of Pakistan (Mazhar, 2016).
2.3.4. Organic Awareness. Eating right have become a lifestyle that encouraged
more of organic food consumption. According to Raza (2015) there are many
markets recently opened in Pakistan where fresh food ingredients are sold like
Farmers Markets, Khalis food Market, Zacky Farms ( Dairy products), Reefs
Organic Box etc. Awareness is moving towards chemical and gluten- free
products. These will be the potential suppliers for Organic Pot restaurant.
2.3.5. Environment Protection. Organic ingredients are known to be grown safer
with no pesticide usage making it more eco-friendly. Secondly organic
production reduces pollutants and emphasises conservation towards environment
(Khan, 2013).
2.3.6. Health consciousness. Consumers are getting more and more health
conscious and prefer natural ingredients in their food. Maor reason behind it is
growing allergies and obesity problems associated with processed food (The
Express Tribune, 2011). Many food companies are focusing on the tag line you
are what you eat and this not only helps in growing their businesses but also
promoting healthy living. It is also linked to presence of pesticides in processed
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ORGANIC POT RESTAURANT

food. It may lead to a number of diseases including cancer, heart attacks,

migraine problems etc (Mazhar, 2016). Thus the demand for fresh and natural
food products is very high in Pakistan.

2.4.

Porter Five Forces Model

2.4.1. Rivalry among existing competitors. There are no direct competitors of

Organic pot present in Lahore. It is a unique concept for Lahore where a whole
restaurant is shaped in an organic way. In terms of its indirect competitors:
a) Arammish Spa. They are offering 3-4 organic dishes to choose from. It includes
Hummus, chicken rolls, tuna Salad and Spaghetti with Marinara sauce.
However they are offering very limited variety and are also charging premium
prices.
b) Nadoz Greens. They offer some variety in organic salad mixes and herbs. It
mainly includes mixes of vegetables like Black Simpson, Royal Oaks, green coral
and herbs like basil, oregano, parsley etc (Raza, 2015). The variety is not much
and again the whole concept of organic food is not promoted to the fullest.
c) Other restaurants. As far as indirect competitors are concern other restaurants
that are not at all dealing in organic food, in fact are mostly dealing in fast foods
like Caf upstairs, Lahore social caf etc. will be considered. As they are operating
in the similar industry it will indirectly affect Organic Pot. However organic pot is
coming up with a differentiation strategy focusing on a new aspect that was not
catered before. Organic food is the key differentiating point for Organic Pot along
with garden style ambiance etc. It will provide a new, refreshing and healthy
meaning to food in Lahore.
2.4.2. Threat of new Entrants. There is an unceasing threat of new entrants
prevailing in the market for restaurants. Usually it just take a unique idea to get
in limelight for restaurant business and momentarily people start replicating it.
One such example in bakeries could be of Gourmet Bakery Pakistan which was
so successful that the very next year Doce, a new Bakery with similar strategy
was opened. Gourmet bakery edged further due to its new innovations,
maintaining excellence in quality at affordable prices. Organic Pot will also
follow the same strategy of Gourmet Bakery for long-term success. It will
differentiate itself from continuous changes in menu and coming up with new
and innovative organic recipes, offering weekend deals as well as the unique
garden ambiance that will give it an edge over other potential entrants.
2.4.3. Bargaining power of suppliers. As there are limited players dealing in
organic supplies thus their bargaining power can be strong. However as use of
organic ingredients is an emerging trend especially in Lahore, key players like
Khalis and Haryali food markets are trying to provide reasonable pricing to
attract customers (Khan, 2014). Due to this Organic Pot will not find much
difficulty in getting affordable supplies. Moreover the current key suppliers are
offering their products to individual retailers while Organic Pot will buy these
supplies in bulks which will provide extra cost advantage.
2.4.4. Bargaining power of customers. Organic Pot will charge fixed affordable
prices thus the bargaining power of customers will be low. Secondly the
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ORGANIC POT RESTAURANT

restaurant is targeting people who want organic and chemical-free food thus
limiting their options as a result switching cost will be high.
2.4.5. Threat of Substitutes. Currently people are going back to avoiding use of
pesticides and are preferring organic ingredients that are fresh and ensure healthy
living. Under such scenario organic food is the best choice. Exceptionally in
future, if possible any new substitute to local or organic farming may arise that
can add value to restaurant offerings. Nevertheless currently organic food is the
best choice.

2.5.

PESTLE Analysis

2.5.1. Political. Organic food standards need to be maintained (mention in legal

section in detail). More awareness is given on environment protection which can
be taken advantage of as organic food means less usage of pesticides and as a
result less pollution and healthy diet. Health regulations need to be followed
properly.
2.5.2. Economic. The food inflation rate in (2014-2015) increased by 1.24% and is
depicted to be same for 2016 (Govt. of Punjab, 2015). There is an overall
constant trend yet on the other hand disposable income is increasing as a result
more people would be willing to improve their standard of living. As a resulting
dining out trend will boom. Moreover Agriculture is the major sector of Punjab
and regardless of low infrastructure availability it constitutes a 20% to GDP
(Saeed, 2014). Thus it will be beneficial for Organic Pot as well and banks are
also funding organic farming due to which supplies will be available at
affordable prices (Iqbal, 2014).
2.5.3. Social/Cultural. Social awareness in terms of healthy food is increasing.
People are moving back to conventional methods and in the time period organic
food as a great concept. Organic food does not use pesticides as a result it is
providing a complete healthy lifestyle. Moreover as the population is aging and
various diseases are coming in limelight under such scenario organic food will
be most beneficial thing offered.
2.5.4. Technological. Currently technological advancement towards organic farming
is beneficial for Organic Pot in terms of increase in cost effectiveness and
efficiency. Moreover Organic pot will use the website to their advantage with
help of initiating online reservations that are not practised apart from big
restaurants. However still agriculture infrastructure had to go long way. Under
such condition, other differentiating aspects need to be considered as entry to
barrier are also low.
2.5.5. Legal. Currently food and safety laws are handled by provincial government
and come under Punjab food Authority Act 2011. There are two main food laws
that will be relevant to Organic Pot restaurant business. Firstly, The Pure Food
Ordinance 1960 that implies that pure and healthy food needs to be offered to
consumers. Secondly Pakistan Hotels and Restaurant Act, 1976 will imply and
check the standards and rates offered to the customer. Under section 22(2) of this
act its written the sale of food or beverages that are contaminated , not prepared
hygienically or served in utensils that are not hygiene or clean is an offense
8

ORGANIC POT RESTAURANT

(Pakistan Hotel and Restaurant Act, 1976, p. 23). Moreover it will require ISO
certification (9001) under the Pakistan standards and Quality control Authority
to assure quality control. To summarize, before opening of the restaurant a
license form will be submitted to Punjab food Authority and licensing related to
food and safety laws as well as restaurant licensing will take place (Punjab Food
Authority, 2011).
2.5.6. Environmental. Environmental protection Act, 1977 and Labour laws can be
considered as it will provide an edge to the business due to prioritising these
aspects as fundamentals of the business (Environmental Protection Act, 1977).
Issues like Global warming and in case of Lahore, inadequacy related to
infrastructure provided in agriculture sector may lead to environmental concerns.
Due to lack of infrastructure organic farming takes more time and effort as a
result risk of supplies shortage can arises (Ali, 2015). However Organic Pot can
take advantage of its image which promotes environment safety and healthy
lifestyle to gain consumer base.

ORGANIC POT RESTAURANT

2.6.

SWOT Analysis

10

Factors

Internal Factors
Strengths

Product

Promotion

Price

Placement

People

Weaknesses

ORGANIC POT RESTAURANT

100% Organic food
Limited suppliers of raw
Quality service
material
Replicable dishes
Multiple options in
Less awareness on the
food
Innovating new
advantages of organic food

Skills

recipes every 3
months
Nutritional value
Maximising the use

of cost effective
strategies
Generating positive
word of mouth
through active
participation on
social media.
Highlighting
advantages of organic
food in promotions.
Price are set at
affordable level.
Psychological pricing
to attract more
customers.

Continuous effort to find

cost effective way of
performance and lowering
prices.

Targeted to all
segments
Fresh, healthy and
unified image
Green garden theme

Continuous efforts to stay

up to date.

Possessing required
knowledge and skills.
Possess team work
expertise

No experience regarding
restaurant management.
Only initial training is
provided to waiters

Values

Empathy,
appreciation and
respect

Too much openness can

harm the teamwork
environment

Behaviours

Flexible and
Adaptable in
accordance with
external conditions.

To continuously monitor
staffs behaviour.

Attributes

Ingenuity.
Inventiveness
Able to get maximum
out of resources
available
Self-containment
Hard work

Dependency and repetitive

tasks.

Factors

External factors
Opportunities

Political

Low budget thus limiting

options of promotion.

Health regulations

11

Threats

Loss of confidence in

ORGANIC POT RESTAURANT

3.The Product
3.1.

Vision and mission statements

Vision: To provide healthy food for a healthier Pakistan

Mission: To be a centre of consciousness for organic food and promote healthy
lifestyle while maintaining quality and facilitate our customers to the fullest.

3.2.

3.3.

Objectives of the business

Spread the usefulness of organic food towards maintaining a healthy lifestyle.
To maintain a healthy atmosphere within the restaurant.
To maintain quality at affordable prices.
To cater each and every need of its customers and make them contented.
Innovate in new dishes and provide one of the finest dining experience.
To be successful and expand to other cities of Pakistan.

Core Business

3.3.1 Organic Food. Organic is a word that comes from organism meaning a

living entity. Initially it was like to vegetables and fruits that were grown in
fresh environment with using of pesticides. However later on non-vegetarian
form of organic food also came in. For instance chicken that are grown in fresh
environment with the use of hormonal injections come under organic category
(David, 2015).
3.3.2 Key Values and benefits. Organic pot with tag line filled with nutrition is
an organic restaurant concept that will sell food and beverages made up of fresh
and chemical-free ingredients. It will be a sole proprietorship business where one
person will be liable for everything. It will be open from 8 am till midnight. The
main concept behind this restaurant is to not only provide variety in food with
organic ingredients but also to assure health of its customers at affordable prices
(Appendix 1: Fig.1). Food offered will be gluten and nitrate free, made up of
organic ingredients that will not only please taste buds but will also give body
cells something healthy to chew on. It will help the customers to maintain
balanced diet and protect them from diseases like cancer, heart attacks and
obesity issues associated with pesticides usage and fast growing injections (Liu,
et al., 2013).
3.3.3 Customer experience and ambiance. It would not be an ordinary experience
instead such ambiance will be created that seems very close to nature. Customers
will feel they are sitting in an indoor garden with lots of greenery around and
having their food, thus adding a sense of freshness to the whole concept
(Appendix1: Fig.2). Soothing music will be played in the background to give
more calm and refreshing feeling. The general concept that healthy food means
less variety is changed and extensive variations from continental to desi, pizzas,
burgers, Salads and unique beverages will be provided to cater all segments.
Prices will also be kept affordable as the main differentiating point of the
restaurant is to promote healthy lifestyle (Appendix 1: Fig.1).

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ORGANIC POT RESTAURANT

3.3.4 Weekend Deals and up to date Menu. Weekend deals will be set up where
offerings like Order 2 main courses and get a free Salad of your choice will be
put forward to customers (Appendix 1: fig.3). This will not only add up to
promotion but also provide more options to customers. Further, menu will be
kept continuously up to date where after every 3 month some new dish will be
added up to maintain customers interest and thus providing them more variety.

3.4.

Differentiating factors

3.4.1 Initiating new trend in Lahore. One of the main edge for organic pot is that

no such restaurant is currently present in Lahore that is offering a complete menu

full of organic options. Nutritious cooked and ready to eat delicious food
available to customers without undergoing extra effort of making the food at
home and yet not getting organic ingredients.
3.4.2 Organic Offerings at affordable prices. The restaurant will position itself as
providing a unique fusion of organic yet affordable variety of food to its
customers. The prices are kept reasonable so that everyone can afford and follow
a healthy lifestyle.
3.4.3 Garden theme. It will take it further towards the nature and fresh aspect
making it a place where more than food, a whole new experience is offered and
organic lifestyle is promoted (Appendix 1: fig.2).
3.4.4 Health assurance. The key ingredients like Fresh dairy products and organic
vegetables will assure goodness in terms of health e.g use of Aloe Vera in drinks
will work as antioxidant and lower sugar levels in diabetics etc. thus improving
health and providing necessary nutrition to its customers (Surjushe, et al., 2008).
3.4.5 Extensive New Variety and combinations. Organic Pot will cover
continental as well as desi food. It will also have different combinations of
burgers salads and make your own pizza options. Unique combinations of
beverages are also offered. Organic pot believes in fusion of unique tastes and to
come up with such new innovations that provides new experiences to taste buds.
Moreover, after every 3 months the restaurant menu will be reconsider and at
least one new dish will be added up to maintain customers interest.
3.4.6 All Day Breakfast options. Organic pot specialises in providing healthy all
day breakfast options so instead of going in fast food restaurants to have burgers
and sandwiches for late good mornings, healthy organic food is made available
at all times to please its customers.

3.5.

Product Life cycle

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ORGANIC POT RESTAURANT

3.5.1 Introduction stage. As far as the industry of organic food (food and
beverages) is concerned it is at the growing stage. More demand is increasing for
new variety of foods. In a report by BMI The food and beverage segment will
experience more positive investment, benefiting from growing household
spending and a large consumer base on the back of increased spending on
essential foods (BMI Research Group, 2016). On contrary as Organic Pot is
currently entering the market it is at introduction stage. It is coming with a main
differentiating point and that is of 100% Organic food variety. It is depicted that
with help of effective strategies and good marketing efforts Organic pot will be
able to excel in the market.

3.6. Potential Suppliers

3.6.1 Suppliers. Zacky farms will be the main supplier for Organic Pot. Zack farms
deals in poultry as well as vegetarian items and have complete range of fresh
products. The reason to choose Zacky farms as the supplier is that firstly, they
are located near Khayaban-e-Iqbal Road which is not far away from the
restaurant thus reducing transportation cost. Secondly, unlike Khaalis food
market or Haryali market which have their stalls once every month, Zacky farms
deals in organic food all over year providing an edge of permanent supplies and
long term contracts. It will also provide an advantage of bulk buying and prices
of Zacky farms are also reasonable letting Organic pot to cover its costs more
efficiently. However for backup Nadooz Green another supplier will be
contacted if needed. Nadooz Green is also not very far away and can be
considered as backup. A credit period of 1 week in selected so that in any case
the restaurant can generate money from sales before payment. It is a backup
strategy for long-term efficiency. Moreover the owner of Organic pot will go in
Khalis and Haryali food market stalls every month for personal contact building
and as a result Organic pot will achieve more cost efficiency in long run.

4.Market Research
4.1.

Market Share

4.1.1 Market Share of Organic Pot. There are currently no direct competitors for
Organic Pot in Lahore due to which market share will be quiet high. However if
compared with other fast food restaurants that can be linked indirectly due to
14

ORGANIC POT RESTAURANT

same industry in that case currently market share will be minimal. However the
trend for organic farming and consumption is boosting from last few years in
Lahore. In relation to PARC3, organic agriculture in 2005 was spread over 35000
acres which grew up to 180,000 acres in 2012. Another study conducted by
PARC highlighted that more than 50% farmers in Pakistan are moving towards
organic production and this number is projected to grow further in coming years
(Saeed, 2014). This data can well demonstrate that the demand for organic food
is increasing due to which it will be in peoples interest to get cooked organic
food conveniently.
4.1.2 Need for an Organic restaurant. Secondly obesity or weight management is
one of the main issue people face in Lahore. According to Dr Rustam Khan,
associate professor at the Aga Khan University Lahore, every fourth Pakistani is
obese. Fortunately, he added that due to media awareness for fitness is
increasing yet healthy food and routine plan for daily nutrition is necessary to
end health problems (Khan, 2013; Euromonitor International, 2015). In another
article relevant to Pakistan and that can be narrowed down to Lahore it is
mentioned, that due to billboards and junk food deals people used to get attracted
to fast food chains however awareness towards healthy food is increasing and yet
more needs to be done (Euromonitor International, 2015). Moreover, according
to a restaurant survey conducted by LUMS4 more than 65% people in 2015 are in
demand for healthy food regardless of prices (LUMS, 2015). This explains that
organic restaurant will be well in demand. In future if competitors initiate related
to organic food, even in that case innovative strategies are already implemented
in menu that will change every 3 months to maintain uniqueness and its position
in the market.

4.2.

Analysis of Customers Questionnaires

4.2.1 Questionnaire findings. A questionnaire was developed and sent to 100

respondents in Lahore. The results showed that more than 80% of people are
aware of organic food, 70% answered positively on the aspect that organic food
is healthier. More positive responses (90%) agreed to prefer organic food and
they will love it if its offered by a restaurant. Majority even agreed on this point
that such venues would be preferred for formal as well as informal gatherings
(Appendix 2).

4.3.

Target Market and segmentation

4.3.1 Target Markets. Organic pot will target all income groups as the restaurant is
offering food at affordable prices for everyone. The segmentation will be on the
basis of:
(a) Geographic, where people of Lahore city will be targeted as it is the main city
of Punjab and due to good climate and excessive water supply arable land is in
3 Pakistan Agriculture Research Council
4 Lahore university of Management sciences
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excess. The agriculture sector relevant to Punjab accounts for about 20% of the
national GDP (Saeed, 2014). Thus adding organic ways to agriculture can give a
new meaning to healthy life. Secondly people of Lahore are known as food
lovers. They spend around 35- 40% of their income on food and the number is
even higher for middle lower class spending more than 50% of their income on
food (Pakistan Bureau of Statistcis, 2015). In future it is possible that other cities
like Karachi and Multan can be targeted by opening more branches however
current strategy is to focus on limited market to cater their needs on fullest.
(b) Demographic, where both genders and will be targeted as the nature of the
product is not gender specific and food comes under necessity bracket for all.
(c) Psychographic, People who value healthy lifestyle will be in limelight. Organic
pot will target, ones who want value for their money, focus on fitness and want
to live longer. According to Feerasta (2014) people of Pakistan especially living
in cities like Lahore and Karachi are getting more health and fitness conscious
and are continuously looking for ways to look young and fit.

4.4.

Change Anticipation

4.4.1. Additional Kitchen equipment. Organic pot deals in organic restaurant

business so there will always be demand for nutritional food and healthy
lifestyle. In fact according to Ali (2016) it is depicted that more and more people
will be inclined towards health concious diets. As a result in future if demand
will increase further more production in terms of dishes will be needed to
facilititate more customers. This will require more ingredients as well as kitchen
appliances.
4.4.2. Seasonality of ingredients. It is possible that due to climate and season
changes, there can be shortage of few vegetables etc. However to avoid this
problem even currently menu is designed in this way that it is mentioned in some
places that seasonal fruits or vegetables will be used where they are the key
ingredients (Appendix 1: fig 1.). In future menu will always be kept up to date to
eliminate these issues.
4.4.3. Need for more variety. As food is a necessity people always want to try new
dishes. A study conduction in U.S explained that people who get variety to eat
tends to eat more as compared to ones getting limited options (John, 2015).
However it will not be a problem for Organic Pot as their key strategy involves
innovation and coming up with a new dish within every 3 months, yet they will
try to peep in upcoming food trends at the end of every year and try to develop
new varieties within them with organic ingredients.
4.4.4. Supplier Power. As Organic Pot is not growing vegetables and fruits by
themselves so suppliers can take advantage of it and can think that they are in a
powerful position to negotiate on prices. However, with time as organic food
trend is increasing and organic farming is being funded (Chaudhry, 2015). Thus
suppliers will increase, lowering the switching power and with Organic Pot
success it can even enter into their own farming line.
4.4.5. Less Available Space. Organic pot will be located on M.M. Alam, one of the
main and highlighted place for food lovers in Lahore. However, it will obviously
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be limit by its size as currently it is estimated that the restaurant will be able to
cater around 60 people yet if the customers increase maybe in future it would
need expansion. For this, Organic pot can open new branches within Lahore as
well in other cities like Karachi and Islamabad. restaurant

5.Marketing Strategy
5.1.

Brand Image

5.1.1 Brand Name. The name Organic Pot is most suitable as it is very close to
the nature of the business. The word Organic literally means a living entity
and in terms of organic food it relates to the food that is fresh, chemical free and
grown in natural conditions (Paul & Rana, 2012; Counihan & Esterik, 2012).
When combined with Pot that is a storing or serving utencil, it provides an
image, that a bowl filled with nutrition is being served.
5.1.2 Restaurant Logo. A pot filled with green colour resembles nutrition and two
leaves on the side enhance the touch of freshness to the whole logo. A spoon and
steam is shown to add a sense of delicious freshly cooked food and is ready to be
served to its customers. Thus everything shown in the logo add significant
meaning towards the image of the restaurant.
5.1.3 Colour selection for logo. Green and brown are colours for earthiness and
nature as a result give more meaning to the theme of organic. Green colour

further adds freshness and environmental awareness aspect to the logo as well
that promotes no chemical usage in farming leading to better environment and
eliminates pollution. Moreover, use of red and orange colour for the name
promotes hunger and studies show that these colours are directly linked to food
cravings as well as are very eye catchy and attract customers (Ha, 2012). Thus
light background is provided to highlight all these meanings and each and every
bit of it is closely linked to the philosophy of the business.

5.2.

Pricing

5.2.1 Cost plus and psychological pricing. Organic Pot will use Cost plus pricing
strategy in combination with psychological pricing to attract customers and
maintain their market position. Cost plus pricing strategy is most suitable
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because currently there is no competition as well as prices will be fixed so apart

from cost a percentage of mark-up of 93.63% will be charged ( Calculation
shown in the table ahead). Usually restaurant charge mark-up of 150-200%,
however prices are kept affordable to promote organic food (Smith, 2015).
Moreover psychological pricing is also used where for instance instead of 300
for a dish 295 or 299 is charged. It increases the attractiveness for customers and
if they are more price conscious in that case they will fall for the dish thinking
that it ranges in category of 200 instead of 300. Detailed pricing of each dish in
menu is attached in (Appendix 1: fig.1).

5.3.
5.3.1

5.3.2

5.4.

Placement
Gulberg. It is assumed that the most suitable place for this restaurant will be
in Gulberg, Hotel one, Ground Floor. The reason to choose this place
includes:
Better customer base
Centre of Lahore
Place for Food Lovers
Not far from Suppliers
Rent. Rent will be paid one month in advance and followed by payment at
the end of every month. Rent is estimated to be around 1,200,000 Pakistan
Rupee. It is fully explain under financial section.

Highlighted benefits to increase sales

100% Organic food

Gluten and chemical free
0% pesticide and unprocessed food
Unique tastes and variety
Affordable prices
Fresh Taste

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These will be mentioned on board outside the restaurant, menu card and on
the flyers that will be used for initial promotion.

5.5.

Promotional techniques

5.5.1

Word of mouth and reputation. As Organic pot will deal in restaurant

business due to which word of mouth and good reputation would play an
essential role. More word of mouth can be generate with help of providing
extraordinary service and variety within restaurant as it will depict good
quality and in return will gain customers confidence. Apart from good taste
and ambiance more needs to be done in terms of promotion to attract potential
customers. For this purpose above as well as below the line promotion
techniques be use.
5.5.2 Above the line promotion. Internet will be use in terms of website to
highlight themselves in the eyes of potential customers. Television and print
ads will not be use as firstly it would not be a cost effective move at the initial
stage of the business and secondly it would not generate any extra customer
base. In terms of restaurant people of Lahore rely more on internet and social
networking sites and blogs as it provides more detailed information and other
customers view point as well.
(a) Website. A website with simple layout will be made to attract as well as
provide details about the advantages of organic food and variety of dishes
available. The website will be divided under four main pages including:
Home: It will have a section on the recipe of the month highlighting
one recipe and its advantages in accordance with health to motivate
audience towards organic food. It will also highlight general
differentiating points about the restaurant and its ambiance.
Menu: It will provide detail regarding the dishes available and their
prices.

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8. Financials

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1.

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1.

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2.
3.

4.
5.

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6.

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7.

9.Action Plan
8.
9.
10.

11.
12.
13.

30

14.

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