Moma Monaz Tapas Lounge Business Description

Executive Summary

Moma Monaz is a small Tapas and speakeasy restaurant that has been in business for the last four years. It aims to deliver delicious and healthy food to customers in small portions, consistent with the concept of tapas. Additionally, it serves as a bar, especially in the evenings, using the tapas as accompanying snacks. The restaurant serves the local area by providing sit-in dining as well as delivery services. It is currently trying to attract additional customers, to which end the author is reconsidering the menu, target population, and marketing approaches. They intend to expand their word of mouth promotions, establish a social media presence, and begin building stronger relationships with their customers. This report consists of a company overview, a marketing plan, a business layout plan, and a preliminary menu.

Company Overview

Mission

Moma Monaz aims to combine high-quality ingredients and innovative recipes to deliver excellent, healthy products to customers. To that end, it is mindful of demographics and local preferences, open to new perspectives, and ready to deal with challenges.

Vision

Moma Monaz’s vision is to create a shared and inclusive experience that involves community members and encourages them to tell their stories.

Goals and Objectives

• Occupancy. Ensure that at least 60% of seats are occupied throughout the period from 45 minutes after opening to 45 minutes before closing.
• Sales. Generate $1,500 or more in average daily sales.
• Menu Adjustment. Learn the customers’ preferences and develop menu items that will be more popular than current offerings.
• Cost Control. Find ways to lower costs, such as sourcing ingredients from local, high-quality suppliers and reducing wastage.

Overall Strategic Direction

Moma Monaz aims to increase the number of its customers by adjusting its menu to suit their tastes. It will create a reputation of a friendly and affordable location with excellent, high-value, and healthy food.

Reasons for Starting the Business

The business was started to fulfill the demand for a local location that serves tapas, as the author had a passion for cooking and proficiency in making such recipes.

Description of Product Offered

Moma Monaz offers customers quick and healthy food in small portions with the option of delivery. It also serves alcohol and non-alcoholic drinks at the establishment, enabling customers to relax and enjoy their stay.

Marketing Plan

Demographic Analysis

There are approximately 10,000 people living in the neighborhood where Moma Monaz operates. The number increases to 15,000 once its delivery range, which is slightly higher than the area where people regularly visit the restaurant, is taken into consideration. They are majority white, though substantial percentages of both Hispanics and African Americans also live in the area. The gender distribution is mostly even, with men and women constituting approximately 50% of the population each. The average personal income in the community is $32,000, increasing with one’s age. Most of the people above 30 are married, often with children, though the situation changes with people between 19 and 29, with most of them having never married. A majority of the adults in the community are high school graduates, and less than a third have a bachelor’s degree or higher.

Competitive Analysis

Moma Monaz has to compete with other fast-food restaurants as well as local bars. There are McDonald’s, Wendy’s, KFC, and Subway restaurants in the area, as well as multiple non-chain locations that also satisfy the fast food criteria to a degree. None of these restaurants serve tapas or other Spanish, Mexican, or South American-themed food to any significant degrees, though some offer a limited number of such menu items. However, the chain stores, specifically, present a substantial amount of competition to Moma Monaz, drawing away potential customers with their quick service, low prices, and brand power. Other restaurants offer alternate options that cater to different customer bases’ tastes without necessarily harming Moma Monaz’s performance excessively. They do not have a significant competitive advantage over it and are similarly struggling to address the threat of chain restaurants.

With regard to Moma Monaz’s function as a speakeasy, the situation is somewhat less problematic. There are several bars in the area, both budget-oriented and premium ones, and the establishment competes with the former. Its price range is substantially lower than that in the second category, and they appeal to a different variety of customers. The low-priced bars with which Moma Monaz competes are designed to imitate saloons and Irish pubs, offering an appropriate selection of products. The ranges of the alcohol provided at the locations, including the author’s speakeasy, are similar, but the food offerings are substantially different. Moma Monaz offers tapas selections that serve as snacks with one’s beer, while the other locations focus on Western menu items such as burgers. As such, it is substantially differentiated from the competition, though its advantages in terms of factors such as price are limited.

Target Market

Moma Monaz’s target market consists of young adults between the ages of 18 and 24, both male and female. Older community members also visit, but at a lower rate than the category above. Young people are more likely to be interested in the restaurant’s products, often coming to enjoy affordable alcohol paired with quick, fresh tapas made on-demand. These customers are typically worried over prices more than any other factor, though quality is also a noteworthy concern. They are generally willing to spend up to $15 for a full meal, potentially going up to $30 when they drink. Many of the young adults in the community come from a Hispanic background and enjoy the tapas food style. The author estimates that approximately 1,000 members of the community fit the criteria of the target demographic.

Marketing Mix

• Product: the primary offering of Moma Monaz is its tapas, which are made using a special recipe that incorporates excellent taste and healthiness. The dishes can be adjusted to the customer’s request, which makes them suitable to a broader target audience. Due to their small base size, the tapas can be used as a full-fledged meal or snacks to go with drinks for a person or group of friends.
• Price: the products are priced moderately given the target market, higher than in fast food chains but comparable to other inexpensive restaurants. The prices are higher because the restaurant uses fresh ingredients, which cost more than the frozen items common in fast food franchises. Customer prices are based on the production costs, including both ingredients and labor, with the addition of a 7% profit margin.
• Place: the food sold by the restaurant is primarily sold at its physical location, where there are tables set out for them to relax while they make their orders and consume them. The alcoholic beverages on the menu are only available there, enabling customers to enjoy the atmosphere while drinking responsibly. All other menu items can be delivered via the restaurant’s partnership with DoorDash and UberEats, which provide the service cost-effectively.
• Promotion: Moma Monaz does not actively advertise on the mass media at the moment due to the costs of doing so. However, it is present on Google Maps and has a profile on several review services such as Yelp. It has a noticeable façade and a sign set out by the road briefly describing the establishment. Lastly, Moma Monaz regularly holds events and engages in promotional campaigns to attract the attention of new customers who pass by the restaurant.

Marketing Approaches

Word of mouth marketing

A small business such as Moma Monaz is dependent on having a positive reputation in the community for survival. As such, it would be beneficial for it to capitalize on this reputation by asking satisfied customers to tell others about the business. They will inform their acquaintances, who, in turn, may come to visit the restaurant when they are nearby. If Moma Monaz can maintain consistently high service quality, these people will then also be satisfied and spread the knowledge further. In a small community such as that served by the restaurant, the reach provided by word of mouth may be sufficient to reach a majority of the target market.

Moma Monaz will become a well-known destination in the community that people will visit for a quick meal or an evening outing. Afterward, the business may consider growth opportunities or stay in its current state, depending on the situation. However, not all people who are told about Moma Monaz will visit the location, choosing not to do so for a variety of reasons. As such, it is best to supplement the approach with some additional measures.

Social media marketing

Social media provide an excellent outlet for Moma Monaz’s advertising because of their ability to connect it with potential customers at little to no cost. One advantage it has over word of mouth marketing is that it is able to communicate current information about various events and promotions that are active at the moment. As such, social media provide an additional incentive for customers to check Moma Monaz’s account regularly and visit the location when an attractive offer is available. Another useful feature of social media is their ability to connect the establishment’s owner and employees with potential and current customers.

By facilitating effective communication, they create a more accurate picture of the restaurant and improve feedback collection. Moreover, the restaurant can attract the interest of locals who have not heard of it before, accelerating the process of awareness-spreading. Lastly, social media may be used to share images and videos of particularly memorable moments at Moma Monaz, creating an organic atmosphere that expresses the restaurant’s welcoming environment. Unlike many other modes of advertising, social media can display such a sentiment in a genuine manner.

Customer relationship building

Due to the limited reach of the business, it is best to establish long-term relationships with existing customers to ensure that they return repeatedly. Methods that can be used at larger enterprises, such as loyalty programs, will not necessarily be effective for Moma Monaz because of their complexity. Instead, the business owner and workers will establish personal relationships with repeated clients, befriending them and learning about their preferences.

The customers will enjoy the atmosphere added by the increased familiarity with the staff and be more comfortable at the establishment. As a result, they will return more often and choose Moma Monaz over other options, generating additional revenue for the business. With that said, the needs of the non-regular customers should not be ignored in favor of these repeat visitors. The quality of the service should stay consistently high, and the business should be open to feedback to spur necessary change and innovation. As such, it is essential to strike a balance between serving the needs of long-time customers and attracting new ones through the measures described above.

Business Layout

Business Permits

For the business to operate, multiple permits are required, with the specific requirements varying by state. Per Navarra (2019), the minimum licensing needed to open a restaurant includes a business, food service, and liquor licenses, as well as a food handler’s permit and an employer identification number. The costs of getting these permissions should amount to approximately $7,000. There is also a variety of other licenses that the business would benefit from getting, such as a music license and sign permit. It may also be necessary to obtain resale and sales tax permits for the sale of alcohol. The costs of these licenses should be lower, and a $1,500 allowance should be adequate to get them. The sum should also be enough to cover any other permissions that may become necessary as the business develops.

Layout and Facility Design

The business will consist of a single building that conducts all of the business’s operations. To that end, it will require a refrigerator, a storage area for non-perishable items, a kitchen, a reception, a dining area, an employee lounge, and a manager’s office for the owner. The refrigerator and storage area should be connected to the outside via a back exit for purposes of receiving deliveries. Additionally, they should be located as close to the kitchen as possible to make it easier to procure the required ingredients. The reception will be placed at the front entrance, where an employee will greet new guests and direct them to a table or seat in the dining area. The author expects to rent an approximately 1000 square feet location at the cost of $5 per square foot per year, resulting in an estimate of $50,000 per year spent on rent.

Equipment and Technology Needs

For the dining area, the author will need to remodel and improve the dining area to create a particular style for it. Additionally, it will be necessary to purchase the equipment required to outfit it, such as tables, chairs, other furniture, and tableware for the customers. Lastly, a payment processing system will be necessary, one that is capable of accepting both cash and cards. “How much does it cost” (n.d.) suggests that, for a small restaurant, the costs can reach $200,000 to $250,000 when these factors are combined and the remodeling of the kitchen area is included. However, they may be somewhat lower than expected because of the restaurant’s small size, as the estimates concern an average location. Regardless, the cost is likely to be substantial and require a considerable investment before the site can open.

The kitchen is another area that is likely to require a substantial investment because of the necessary equipment for large-scale food production. Stoves, grills, ovens, and various other kinds of industrial-scale appliances will be needed to cook the food. Additionally, a fridge and a large-scale dishwasher will be required to store the food and wash the used tableware, respectively. It is better to purchase high-quality equipment that will serve for a long time without breaking rather than budget variants with inferior durability. “How much does it cost” (n.d.) reports that the costs of purchasing the required appliances will amount to approximately $50,000 for a small-scale restaurant. There is no particular reason for Moma Monaz to have a significantly different cost, as the uniqueness of its food products comes from the recipes rather than the equipment used.

Lastly, it will be necessary to find an accounting solution to manage the business’s costs, supplies, and performance. It is best to manage these matters with specialized software to avoid clerical errors and identify problematic areas automatically. The author will use a free restaurant accounting tool, of which there are many available on the Internet. Given the size of the business, the advantages conferred by more premium, non-free software will likely be negligible and fail to justify the expense. The specific tool that will be used will have to be decided after the author has an opportunity to examine the available options and pick the one best suited to their preferences. The only cost associated with the software will be that of installing a PC in the office, which should amount to $800 once the necessary components are taken into consideration.

Menu

Soups and Salads

• Caesar Salad – lettuce, sliced chicken breast, croutons, grated Parmesan cheese, and special-made dressing
• Greek Salad – olive oil-based dressing, feta cheese, cucumbers, tomatoes, and red onions
• Quinoa Salad – quinoa, chicken breast, avocadoes, peppers, celery, red onions, and salsa
• Chicken Tortilla Soup – tomato paste, chicken stock, corn tortillas, avocadoes, crumbled cotija cheese, chili powder, scallions
• Black Bean Soup – black beans, yellow onions, jalapenos, garlic, cumin, vegetable stock
• Posole Soup – pork, lard, onion, garlic, cumin, green chili peppers, white hominy, pinto beans, pork stock

Tapas

• Stuffed Mushrooms – mushrooms, walnuts, cream cheese, spinach, artichokes, mozzarella, breadcrumbs, scallion
• Patatas Bravas – fingerling potatoes, olive oil, mayonnaise, lemon juice, spice, garlic aioli dip
• Marinated Olives – olives, fennel seeds, garlic, red pepper, olive oil
• Fried Peppers with Prosciutto – shishito peppers, prosciutto, chopped mint, olive oil
• Garlicky Shrimp – shrimp, red chiles, garlic, olive oil, crusty bread
• Apples on Horseback – pancetta slices, apple, cheese
• Sardines on Toast – baguette slices, balsamic vinegar, sardines, olive oil
• Chorizo Poached in Red Wine – chorizo, red wine, garlic, bay leaves, cayenne pepper
• Grilled Okra – okra, red curry paste, olive oil, lime juice
• Pan con Tomate – ciabatta slices, garlic, tomatoes, Garrotxa cheese, garlic, olive oil
• Baked Churro Chips – naan bread, butter, mocha fudge sauce, caramel sauce
• Black Olive Tapenade – black olives, capers, olive oil, garlic, lemon juice
• Shrimp and Chorizo Flatbreads – tomatoes, pita bread, chorizo, shrimp, Manchego cheese, hummus, shallots, garlic, spices.

Drinks

Non-alcoholic

• Coca-Cola, Diet Coke, etc.
• Seltzer.
• Iced Tea.
• Espresso, Americano, Latte, Cappuccino, etc.

Alcoholic

• Heineken, Heineken Light.
• Corona, Corona Light.
• Locally Brewed Beer.
• Red and White Wine.
• Strong Alcoholic Beverages.
• Imported Mexican Beer.

References

Navarra, T. (2019). Learn how to get your business, food service, and liquor licenses. Upserve. Web.

How much does it cost to open a restaurant?. (n.d.). Sage. Web.