On the Water, a Mediterranean-inspired restaurant on the Sunset Strip is the latest addition to the scene. On the Water will target both fun-seeking as well as sophisticated diners looking for good food in a fascinating atmosphere. On the Water will try to make 85% gross margins with an innovative setting, an excellent menu and an experienced restaurateur.
The Market
On the Water is targeting tourists and locals that are active restaurant hunters. There will be a special focus on young adults with $15K-$60K of income looking for good food and a great time. On the Water will be targeting tourists and adults who frequent Sunset Blvd., along with young adults with disposable income. Males and women between the ages of 20 and 50 with some or all college degrees are the general demographic. On the Water can serve not only local Hollywood area residents, but also tourists and party animals.
Historically, if there is a dip in the general economy, the restaurant industry is usually effected far less that the overall economy. People perceive that food is essential to their lives and will spend accordingly.
The Service and Products
On the Water has a consistent quality: their unfailing service. All server staff hired have extensive experience and all go through three weeks of training, ensuring benchmarked customer service. All services offered by On the Water are delivered in an extraordinary environment that includes a large collection of art and culture from Mediterranean Europe. This authentic setting can be distracting at times as people look through the wealth of artifacts.
Lily Valdivia is proud of the menu. It’s the result of more than twenty years of experience in cooking. There are many traditional favorites, such as tabouli and baba ganouj. These classic favorites are distinguished by the use of organic ingredients. Many people don’t know how much better food tastes when it is prepared with fresh ingredients and lovingly prepared. Other menu items are kebobs, chutneys, flat breads and desserts. Everything is freshly prepared, made from scratch, and served fresh every day.
Management
Lily Valdivia – a restaurant veteran – is in charge of the restaurant. Her restaurant experience began 12 years ago as a server. She quickly rose to the top of the food service industry, becoming a manager. Lily was the manager for a European restaurant that had over $2.5 million in annual revenue for the past five years. Lily began cooking as a child in Greece 20 years ago. Lily came from a large family and it quickly became her responsibility to cook for the entire family. She was trained by her mother, who has three generations of traditional recipes. Lily quickly mastered these and began experimenting with her own dishes. Her family’s feedback was always positive. She knew that one day, she would need to turn her skills into a business opportunity.
On the Water should reach profitability in the second month. Sales are expected to grow to $1,785,000 over the next two years and to $2,345,000 by three. These sales will bring in a large net profit.
1.1 Objectives
- The third year saw sales increase to over $2,345,000
- Maintain a gross margin of around 80%
- Increase inventory turnover to 2100 turns in year 2, and to 240 by year 3.
1.2 Mission
On The Water is an establishment that offers high-quality fine dining in a unique, mediterranean setting. It also has a bar and grill. It is our mission to not only provide great food but also friendly and efficient service. Our dining environment is both sophisticated and welcoming. We focus on customer satisfaction. Quality food is always fresh and hand-picked. We won’t judge anyone based upon their appearance or class. On The Water grill should be a place where everyone can enjoy a great meal and make new friends at our tropical Mediterranean Honey Bar located inside.