Overview of the venue

Venue Type – Upscale Casual Dining & Bar (2 Floors) Lower Level is Restaurant/Upper Level is Bar

Services & Products – Will be serving contemporary food and wine. A bit of fusion. Picnic Baskets with prepped meals, prepared sandwiches, charcuterie, seafood baskets for the customers to enjoy. Includes alcohol or non-alcoholic drinks according to customers’ preferences. Picnic baskets will be asked to return to the restaurant after.

Target Market – Local, Picnic goers, families, tourists. Mostly ages between 25-55. Middle to high income customers. Outdoor lovers. Students. Customers who do not have enough time or money to go out of the cities for activities.

Trading Time – Mon to Thurs : 8am to 6pm / Fri, Sat, Sun : 8am to 9.30pm

Average Menu Price Range – $25 to $35

Floor Plan (Ground Floor – Restaurant)

Staffing

Professional outfits
Multicultural staffs
Well-trained staffs
Great terms & conditions for good and loyalty staffs

Feasibility Analysis

Market feasibility

Since the Barangaroo precinct first came to fruition in 2016, this 22 hectare, $6+ billion development has evolved into a dynamic retail, cultural and financial hub. With over 75 retails and 8 streets, it is promised to become heaven place for eat, drink and play in. And The Treehouse restaurant will be a part of this heaven. The Treehouse is bar and dining restaurant located in Stargazer Lawn (Barangaroo Reverse). This gently sloping, elevated parkland offers a generous, open lawn area and harbour views. Combine with Walumil Lawns for greater capacity and views to the Harbour Bridge. It is a perfect location for picnics, community events or filming and photography.

Understanding people needs, Treehouse uses “picnic baskets service” as the idea of our concept. To bring new experience to people who want to go picnics and enjoy wonderful views in city area or a short break after long hours taking photos, filming in Strargazer Lawn. People do not need to waste time preparing, plaining for a picnic just go whenever they are in mood of enjoying their free time in a beautiful place. Treehouse will cover you with a great combination of foods and drinks. In night time, customers can enjoy the beautiful views in Harbour bridge from the bar area of our restaurant. It will become a cool destination for many couples to relax and enjoy their time after hours of working, teenagers to hang out or students after school.

According to Meryment.E (2016), the success of restaurants in Barragaroo has revealed that people are interested in this area as a dining destination. There are around 34,000 people looking for lunch from Monday to Friday in this area. In addition, Sydney is Australia’s picnic playground with waterfront parklands, beautiful beaches and no shortage of long Summer days. According to ABC news, just only Sydney’s first breakfast festival, there were already about 6,000 picnic goers joined in. With all of the facts above, we can see that there are many competitors that The Treehouse needs to consider such as Palisade hotel or Pop Up picnic, they are strong but does not mean they don’t have weakness. Following to tripadvisor website, here are few reviews about our competitors:

The Hotel Palisade was an amazing quaint hotel located perfectly in the Rocks area of Sydney with fantasist food and magnificent view. They have very long time experience since they started in 1921. In addition, the great customer service that very fantastic from the time of booking and answering any questions customers have before their visiting. However, there are many restrictions such as no sport shoes or hats when customers go to the top floor and there some areas that are not allowable for people under 18 years old. The lack of facility since they only have Wi-Fi and Air conditioner in bar area.

Picnic pop up, they offer 2 styles of picnics – They have picnic parties which are fully catered events and can provide equipment, unique picnic entertainment and activities and also assist with location selection. They have very large size of business which is not only in Sydney. However, when comparing with us, they have some disadvantages such as: long time waiting on food, delivery fee charged, their products are less fresh than us since we can serve straight away from the kitchen to the customers.

To stay strong against other competitors, besides our special picnic baskets service, the Treehouse restaurant also has large area that can contain 120 serves at the same time, with well-trained and professional service team that are not only local staffs but also international staffs. Therefore, they can help customer not only to understand more about the restaurant products but also to know more about other interested things of local area such as history, beautiful places or special events around in different languages likes French, Spanish or Chinese. To ensure we can provide the best quality of our service, beside serving dine-in customers, we also provide take away service through Uber Eats and Deliveroo in Barangaroo area. In addition, we also have social media profiles to help customers keep in track with us such as seasonal menus, big promotions, special events. Finally, membership cards will be applied for long-term customers who are willing to support us in present and future giving a hand to create a strong customer service. We also connect to Bio Pak as they are eco friendly food packaging service so that customers can enjoy the food on the go without any negative impact on the environment.

Porter’s Five Forces

Supplier power: with the strong development of hospitality industry in Sydney nowadays, there are several of hospitality suppliers that help the restaurant in operating the business such as Johnton’s GlassMaster about glasswahser and dis washing equipment, Do Your Own Pest Control about health and food safety programs or Bondi Chai about drinking stuffs, etc…their substitutions are big, therefore we have more benefits than them in price discussion.

Buyer power: with a beautiful location and a big service area, the restaurant can easily attract the huge number of customers. However, with many competitors in the same area, it makes customers ability to substitute is very high. To resolve this situation, The restaurant will try to act more aggressive in the pricing strategy so we will not lose customers to the rivals.

Competitive rivalry: There are over 40 Café, restaurants and Bars in Barangaroo and still increasing in the future. They have their own loyal customers, trustworthy suppliers, and also have more experiences about the current market. Therefore, The restaurant has some difficulties in dealing with competitors and convincing the buyers to switch to us. To handle this issue, The Treehouse will try develop some strategies such as gain an information from the competitor’s customers or insider, focus selling on certain products and services, and also make picnics baskets become a unique thing that the other competitors cannot copy.

Threat of substitution: Since it is a great location for hospitality business. There will be many competitors that sell kind of similar products or substitutes with a slightly cheaper prices or quality. Since customers tend to choose or switch to buy products which have similar utilities, the restaurant will try to maintain the customer’s loyalty by keeping improving the quality of service and the variety of menu which match with the consumers’ preferences.

Threat of new entry: Starting a restaurant can seem very attractive, due in part to the survivorship bias. Survivorship bias means that we, the public, do not see the restaurants that fail, only the ones still in operation. There might have many new entrants may bring bunch of business risk such as the competitors growth. They may have lots of business tactics and strategies to dominate the market. For example; offering a better and lower pricing foods and active marketing strategies in purpose to beat the existing restaurants. To handle it, Treehouse will keep building our reputation become stronger and bigger to maintain our loyalty customers and attract new customers.

Environmental Impacts

As a restaurant, we would like to have a positive impact the environment by implementing the following practices —– one is the use of solar energy and another is by ensuring that water usage is reduced.

Using solar energy is not a new technology. It’s been around for quite a while and is even being endorsed by the Australian Government. As such, Australia has a rapidly increasing number of people utilizing solar energy. Since the technology is readily available, the restaurant can easily tap on resources to ensure that the restaurant will be able to use Solar Energy. Since it is a renewable kind of energy, the restaurant is reducing risks of causing harmful effects to the environment.

There are two ways that solar energy can be incorporated in the restaurant. The first option is solar photovoltaic which uses photovoltaic cells that are combined in panels that are usually put in rooftops can be integrated in the building design. The second option is solar thermal which converts sunlight into thermal energy. The restaurant will be using solar photovoltaic or solar panels to aid in the restaurant’s need for energy.

Another way on how the restaurant can reduce its negative impact to the environment is reducing its water usage. There are a lot of ways on how the restaurant can be water positive and contribute to the conservation of water. One way is by ensuring that the restaurant only uses appliances and equipment that optimises the use of water. This means that the machinery inside the restaurant will need less water to operate therefore leading to water being conserved. Another way that the restaurant can reduce water usage is by recycling water. The water that has been used can be reused especially when cleaning the restaurant. Aside from recycling, there is now this practice known as “capturing and recapturing”. This practice advocates utilising rain or storm water instead of tapping into the water reserve in the area.

Suppliers and Supply Chains

These are just some of the suppliers that the restaurant can partner with when it comes to sourcing the ingredients and produce needed for the restaurant. One primary reason why the restaurant as a business chose these suppliers is because they are local and are within the area. This meant that long distance deliveries are avoided and fuel consumption is lessened. This is in line with the restaurant’s goal of reducing it’s negative effect to the environment. Also, these suppliers are supporting local farmers which contributes to the growth of the community. By supporting the local farmers, we are also promoting the local produce and industry.

Revenue Projections

Financial

Rent	$25,000 per Week
Construction Cost	$3,000,000
Kitchen & Bar Equip. Cost	$150,000
Initial Supply of Food and Beverage	$15,000
Permits and License	$8,000
Labor Cost	$90,000 per Month
Utility Bills (Including Internet & Phone)	$3,000 per Month
Total Start Up Cost For 1^st Month	$3,366,000