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Family restaurant chain:

Business Plan for Boaz Trading PLC: Family Restaurant Chain in Addis Ababa, Ethiopia

*"Taste of Unity" — Blending Ethiopian Heritage with Global Flavors*

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### Executive Summary

Project Name: Taste of Unity Family Restaurant Chain

Location: Addis Ababa, Ethiopia

Total Project Cost: 28,000,000 ETB (≈$500,000 USD)

Initial Operating Costs: 7,000,000 ETB (≈$125,000 USD)

Monthly Cash Flow (Year 1): 616,000 ETB (≈$11,000 USD)

ROI: 26.40% | Break-Even: 24–30 Months

Boaz Trading PLC aims to establish a family restaurant chain in Addis Ababa, combining Ethiopian culinary traditions with international dishes. Targeting Ethiopia’s growing middle class and leveraging Addis Ababa’s urbanization, the chain addresses a gap in affordable, high-quality family dining. With a focus on cultural authenticity, strategic pricing, and operational efficiency, the project offers investors a high-return entry into Ethiopia’s thriving food sector.

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### Mission & Vision

Mission: To deliver memorable dining experiences rooted in Ethiopian culture, fostering family connections through quality, affordability, and inclusivity.

Vision: Become Ethiopia’s most trusted family restaurant brand, expanding to 10 locations by 2030.

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### Company Description

Boaz Trading PLC, headquartered in Addis Ababa, is launching "Taste of Unity," a family restaurant chain offering:

- Local Cuisine: Injera platters, doro wat, tibs.

- International Favorites: Burgers, pasta, salads.

- Kid-Friendly Menus: Balanced meals with cultural twists.

- Cultural Ambiance: Traditional decor with modern comfort.

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### Market Analysis

Key Insights:

- Population: Addis Ababa: 5+ million | GDP Growth: 6.3% (2023).

- Urbanization: 25% annual growth in dining-out expenditure.

- Purchasing Power: Middle-class households spend 35% of income on food.

Market Gap: Limited mid-range family restaurants offering hybrid menus.

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### Competitive Analysis

Direct Competitors:

- Traditional eateries (low price, limited ambiance).

- International chains (higher price, less cultural appeal).

SWOT Analysis:

- Strengths: Cultural authenticity, strategic pricing.

- Weaknesses: New market entry, supply chain risks.

- Opportunities: Tourism growth, untapped suburbs.

- Threats: Currency volatility, rising competition.

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### Target Market & Segmentation

- Primary: Middle-class families (monthly income 15,000–40,000 ETB).

- Secondary: Expatriates, tourists, corporate groups.

- Segmentation: Urban families, millennials, and Gen Z seeking experiential dining.

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### Product/Service Line

- Signature Dishes: Fusion platters (e.g., “Injera Tacos”).

- Services: Catering, cultural event hosting, meal subscriptions.

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### Pricing Strategy

- Average Meal: 200–350 ETB (≈$3.57–$6.25 USD).

- Kids’ Meals: 100–150 ETB.

- Premium Dishes: 400–500 ETB (targeting expats/tourists).

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### Marketing & Sales Strategy

- Digital Campaigns: Social media (Facebook, Telegram), influencer partnerships.

- Community Engagement: Cultural festivals, school collaborations.

- Sales Channels: Dine-in, takeaway, delivery via partnerships (e.g., Deliver Addis).

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### Financial Projections (ETB)

Year 1:

- Revenue: 14,000,000 ETB

- Expenses: 10,500,000 ETB

- Net Profit: 3,500,000 ETB

Year 3:

- Revenue: 45,000,000 ETB (3 locations)

- ROI: 26.4% (CAGR).

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### Funding Request

- Total Requirement: 28,000,000 ETB.

- Equity Offering: 70% (19,600,000 ETB).

- Debt Financing: 30% (8,400,000 ETB).

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### Risk Mitigation

- Currency Risk: Local sourcing (85% ingredients from Ethiopian farms).

- Supply Chain: Multi-supplier contracts for key items.

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### Sustainability & Social Responsibility

- Local Sourcing: Partner with 20+ smallholder farms.

- Zero Waste: Compost organic waste; donate surplus to NGOs.

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### Implementation Timeline

1. Months 1–3: Site acquisition, staff hiring.

2. Months 4–6: Kitchen setup, menu testing.

3. Month 7: Grand opening with media campaign.

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### Exit Strategy

- Acquisition: Target international food chains entering Ethiopia.

- Franchising: License model after Year 5.

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### Appendix

- Detailed financial models.

- Supplier MOUs.

- Menu samples and floor plans.

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Investor Appeal: High-growth sector, cultural differentiation, and scalable model in Africa’s diplomatic hub. Returns anchored in Ethiopia’s demographic boom and urbanization.

*"Taste of Unity: Where Every Bite Tells a Story."* 🌍🍴

Hallel 9mo ago

expand more on

Pricing Strategy

- Average Meal: 200–350 ETB (≈$3.57–$6.25 USD).

- Kids’ Meals: 100–150 ETB.

- Premium Dishes: 400–500 ETB (targeting expats/tourists).

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Discussion

Hallel 9mo ago

**Expanded Pricing Strategy: Taste of Unity Family Restaurant Chain**

### **1. Pricing Structure & Rationale**

**A. Average Meal (200–350 ETB / $3.57–$6.25 USD)**

- **Target**: Middle-class families and local millennials.

- **Example Dishes**:

- *Injera Tacos* (250 ETB): Fusion of Ethiopian lentils and Mexican-inspired presentation.

- *Shiro Bowl* (200 ETB): Vegan chickpea stew with quinoa and seasonal veggies.

- **Rationale**:

- **Competitive Positioning**: 20% cheaper than international chains (e.g., Burger King’s 450 ETB combo) while offering higher cultural value.

- **Value Perception**: Larger portions and premium ingredients (e.g., organic *teff*) justify pricing vs. traditional eateries (150 ETB meals).

**B. Kids’ Meals (100–150 ETB)**

- **Inclusions**:

- Balanced nutrition: Mini portions of protein (chicken, lentils), veggies, and whole grains.

- Interactive elements: “Build-Your-Own *Fit-Fit*” kits or puzzle placemats with cultural trivia.

- **Rationale**:

- **Affordability**: Priced 30% lower than adult meals to attract families.

- **Upsell Strategy**: Pair with desserts (+50 ETB) or drinks (+30 ETB).

**C. Premium Dishes (400–500 ETB / $7.14–$8.93 USD)**

- **Target**: Expatriates, tourists, and high-income locals.

- **Example Dishes**:

- *Coffee-Rubbed Steak* (500 ETB): Ethiopian Yirgacheffe coffee-marinated beef with truffle-infused *kibe*.

- *Cultural Feast Platter* (450 ETB): Sampler of *doro wat*, *kitfo*, and imported cheeses.

- **Rationale**:

- **Cost Justification**: Premium ingredients (imported truffle oil, specialty cuts) and experiential plating.

- **Tourist Appeal**: Aligns with international dining prices (e.g., $10–15 USD meals in Addis Ababa hotels).

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### **2. Competitive Pricing Analysis**

| **Competitor** | **Avg. Meal Price (ETB)** | **Taste of Unity’s Edge** |

|-----------------------|---------------------------|------------------------------------------|

| Traditional Eateries | 50–150 | Modern ambiance, diverse menu |

| Kaldis Coffee | 200–300 | Cultural fusion, kid-friendly options |

| International Chains | 400–800 | Authenticity, 30% lower pricing |

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### **3. Psychological Pricing Tactics**

- **Charm Pricing**: 299 ETB instead of 300 ETB for fusion platters.

- **Bundle Discounts**: “Family Feast” at 1,000 ETB (saves 200 ETB vs. à la carte).

- **Anchoring**: List premium dishes first on menus to make 350 ETB meals seem affordable.

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### **4. Cost Structure & Margins**

|---------------------|---------------|---------------------|------------|

| Average Meal | 40% | 30% | 30% |

| Kids’ Meals | 35% | 35% | 30% |

| Premium Dishes | 45% | 25% | 30% |

**Notes**:

- Local sourcing reduces food costs by 15% vs. imports.

- Premium dishes use higher-cost imports but command 30% margins via pricing.

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### **5. Dynamic Pricing Adjustments**

- **Seasonal Offers**:

- Rainy season lunch specials (150 ETB for soup + *injera*).

- Holiday bundles (e.g., *Meskel* feast platter at 10% discount).

- **Time-Based Discounts**:

- Early bird dinners (15% off 4–6 PM).

- Weekend surcharge (+10% for live music nights).

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### **6. Risk Mitigation**

- **Currency Volatility**: Hedge 50% of imported ingredient costs via forward contracts.

- **Price Sensitivity**:

- Loyalty program (10% off after 5 visits).

- “Pay-What-You-Can” community meals once/month (tax-deductible).

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### **7. Alignment with Financial Goals**

- **Break-Even**: Requires 1,200 customers/month at 350 ETB avg. spend.

- **ROI Driver**: Premium dishes and catering (50% margins) offset lower-margin family meals.

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### **8. Customer Value Proposition**

- **Cultural Experience**: Ambiance and storytelling justify mid-range pricing.

- **Quality Assurance**: Locally sourced, fresh ingredients vs. competitors’ frozen imports.

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**Conclusion**:

Taste of Unity’s tiered pricing strategy balances affordability for families with premium experiences for tourists/expats. By anchoring prices in cultural value and operational efficiency, the chain maximizes margins while fostering loyalty in Addis Ababa’s competitive dining landscape.

*“Where every price tells a story of tradition, quality, and community.”* 🌍🍛