Ethnic Food Restaurant Business Plan

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Table of Contents
1.0 Executive Summary...............................................................................................................................1 Chart: Highlights..................................................................................................................................2 1.1 ission...............................................................................................................................................2 1.2 !eys to Success..................................................................................................................................2 1." #b$ectives.........................................................................................................................................." 2.0 Com%any Summary...............................................................................................................................& 2.1 Com%any #'nershi%.........................................................................................................................& 2.2 Start(u% Summary..............................................................................................................................& 2.2.1 )ocation * #%erations................................................................................................................+ Chart: Start(u%......................................................................................................................................, Table: Start(u%.....................................................................................................................................Table: Start(u% .un/ing.......................................................................................................................0 ......................................................................................................................................................................0 ".0 Services..................................................................................................................................................1 ".1 2ara enus........................................................................................................................................1 &.0 ar3et 4nalysis Summary..................................................................................................................10 &.1 ar3et Segmentation.......................................................................................................................11 Table: ar3et 4nalysis......................................................................................................................11 Chart: ar3et Profile 5Pie6................................................................................................................12 &.2 Target ar3et Segment Strategy.....................................................................................................12 &." Service 7usiness 4nalysis...............................................................................................................1" &.".1 Com%etition an/ 7uying Patterns.............................................................................................1" +.0 Strategy an/ 8m%lementation Summary...............................................................................................1" +.1 Com%etitive E/ge.............................................................................................................................1& +.1.1 Com%etitor 4nalysis.................................................................................................................1& +.2 ar3eting Strategy...........................................................................................................................1, +.2.1 ar3eting Program...................................................................................................................10 +." Sales Strategy...................................................................................................................................11 +.".1 Sales .orecast............................................................................................................................20 Table: Sales .orecast.....................................................................................................................20 Chart: Sales onthly.....................................................................................................................21 Chart: Sales by 9ear......................................................................................................................21 +.& ilestones........................................................................................................................................22 Table: ilestones...............................................................................................................................22 ,.0 :eb Plan Summary.............................................................................................................................2" -.0 anagement Summary........................................................................................................................2" -.1 anagement Team...........................................................................................................................2& -.2 Personnel Plan..................................................................................................................................2+ Table: Personnel.................................................................................................................................2....................................................................................................................................................................20.0 .inancial Plan.......................................................................................................................................20 0.1 8nvestment #%%ortunities.................................................................................................................20 0.2 8m%ortant 4ssum%tions....................................................................................................................21 Page 1
Table of Contents
0.2.1 ;is3 4nalysis< itigation.........................................................................................................."1 Table: =eneral 4ssum%tions.............................................................................................................."2 ................................................................................................................................................................"2 0." Profit an/ )oss Statement................................................................................................................"" Chart: Profit onthly........................................................................................................................."& Chart: Profit 9early............................................................................................................................"& Chart: =ross argin onthly............................................................................................................"+ Chart: =ross argin 9early..............................................................................................................."+ Table: Profit an/ )oss........................................................................................................................", ................................................................................................................................................................", 0.& 7rea3(even 4nalysis........................................................................................................................"Table: 7rea3(even 4nalysis..............................................................................................................."Chart: 7rea3(even 4nalysis..............................................................................................................."0.+ Cash .lo' Statement......................................................................................................................."0 Chart: Cash........................................................................................................................................."0 Table: Cash .lo'..............................................................................................................................."1 ................................................................................................................................................................"1 0., 7alance Sheet Statement..................................................................................................................&0 Table: 7alance Sheet..........................................................................................................................&0 ................................................................................................................................................................&0 0.- 7usiness ;atios................................................................................................................................&1 Table: ;atios......................................................................................................................................&1 0.0 Ex%ansion> Paybac3 * Exit Strategy...............................................................................................&2 Table: Sales .orecast...................................................................................................................................1 ......................................................................................................................................................................1 Table: =eneral 4ssum%tions........................................................................................................................2 ......................................................................................................................................................................2 Table: Profit an/ )oss.................................................................................................................................." ......................................................................................................................................................................& Table: Cash .lo'.........................................................................................................................................+ ......................................................................................................................................................................, Table: 7alance Sheet..........................................................................................................................................................................................................................................................................................................Table: Personnel...........................................................................................................................................0
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2ara ;estaurant * )ounge
9.+ C6ecutive #ummary Dur initial statement to ,nvestors and )inancial Lenders, this restaurantEethnic food business plan, is a candid disclosure of the Fara 7estaurant G Lounge business proposal : our intent is to set realistic business e6pectations, and eliminate any -uestions about the profitability of this business venture. Cntrepreneurs have a tendency to paint the restaurant business plan with a very optimistic brush, highlighting strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the success of this restaurant. Dur intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but is utiliHed as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows! 9. &'r financial model is rooted in ind'stry facts, not optimism. We have based costs on our vast industry and practical e6perience with similar ventures, validation against 5ational 7estaurant industry cost averages, and analysis against local Atlanta market averages. We have taken a collective look at all figures to make solid business estimates. *. &'r ('siness concept was deri%ed from detailed )arket Analyses. ,nstead of building a business around a preconceived concept, we analysed the market findings and built a concept around our consumers. ,n other words, our business is built to service an unmet consumer IwantI. J. A ('ffered financial plan that ens'res ade*'ate capitali+ation. A contingency buffer is included in the start:up cost to ensure the business in not under financed, as well as giving the business ade-uate funding to sustain it in the first si6 months of start:up. Dur industry e6perience confirms a longer ramp:up stage for restaurants over other retailEservice businesses. A common mistake for new entrepreneurs , but fully addressed in this business plan. K. A solid ,isk )itigation Plan. We have evaluated traditional and non:traditional risks associated with 7estaurant failure and accounted for them directly in the business plan. ,nstead of dismissing the risks, we have identified valid mitigation strategies for each. 2. -eep )anagement ./perience. Dur management team has *+ years combined e6perience, involved with over ;> restaurant openings, and deep involvement with the Atlanta restaurant industry. .he total capital re-uirement to launch Fara 7estaurant G Lounge is L=K+,+++, of which L>KJ,+++ is allocated to start:up capital, and L<=,+++ as business operations cash reserve. .his lan is being submitted in order to secure a 'usiness loan for LKJ+,+++. .he loan will be used towards C-uipment purchase, Besign, 1onstruction, and Dperational #tart:Ap e6penses. Dwners, Mr. Ale6 Nunte and Mr. eter #mith are investing L99+,+++ in personal capital. rivate ,nvestors, who will be part owners with a non:managerial interest in the business, will contribute the remaining L*++,+++. As owners, our commitment is to take personal accountability for all financial debt. We have taken the necessary precautions to ensure the business is fully capitaliHed, and have addressed all financial shortfalls to ensure a successful business start:up. Ander a realistic scenario, the
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company should have over L;K,+++ in cash balance the third year. Cven with the worst:case sales scenario, we reach a 5et Worth break even at the end of Year 2. Dn a linear projection, the entire financial debt will be retired by Year =.
Chart: Highlights
1.1 Mission Fara will be an inspiring restaurant, combining an eclectic atmosphere with e6cellent and interesting food. .he mission is to have not only a great food selection, but also efficient and superior service : customer satisfaction is our paramount objective. Fara will be the restaurant of choice for a mature and adult crowd, couples and singles, young and old, male or female. Cmployee welfare, participation, and training are e-ually important to our success. Cveryone is treated fairly and with the utmost respect. Dur employees will feel a part of the success of Fara 7estaurant G Lounge. Dur concept combines variety, ambiance, entertainment and a superior staff to create a sense of IplaceI in order to reach our goal of overall value in the diningEentertainment e6perience. We offer fair profits for the owners and investors, and a rewarding place to work for the employees.
9.* Oeys to #uccess 9. 0ni*'e, Inno%ati%e 1 Contemporary2 .he creation of a uni-ue and innovative fine dining atmosphere will differentiate us from the competition. .he restaurant will stand out from the other restaurants in the area because of the uni-ue design and decor. We will offer a fine dining e6perience in an electric atmosphere.
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*. Prod'ct *'ality2 great food, great service and atmosphere. J. 3Spice of 4ife5 )en'2 .he menu will appeal to a wide and varied clientele. Dur eclectic menu features regional specialties around the globe, from #panish ceviche, to .hai and ,ndian curries, to local crabcakes. K. .mployee ,etention 6oc's2 Cmployee retention and development programs will be a primary focus and success platform for this business. .hrough these programs, we will be able to draw seasoned and elite professionals and build a committed work force. We have budgeted for a stock option program for 1hef and Management positions to subsidiHe a lower salary base. .his lowers our immediate overhead and attracts -uality staff. 2. Cost Control 6oc's2 We will control costs at all times, without e6ception. 1ost 1ontrol will be an integrated function of the restaurant from the onset. 1ost control is about managing the numbers : interpreting and comparing the numbers that impact the bottom line. ;+ percent of the success of a restaurant is determined before it opens. Dur focus is to reduce the cost of goods sold to meet our profit margin goals by managing the following crucial elements of cost! urchasing, 7eceiving, #torage, ,ssuing ,nventory, 7ough reparation, #ervice reparation, ortioning, Drder .aking, 1ash 7eceipts, 'ank Beposits and Accounts ayable. We will use of this restaurantEethnic food business plan to track actual costs against our forecasts in managing the business. Bue to intense competition, restauranteurs must look for ways to differentiate their business to achieve and maintain a competitive advantage. MidtownEBowntown AtlantaIs redevelopment re-uires a place that will fit into the Inew lookI of the community, one that is contemporary and entertaining. Fara will fill that niche. 9.J Dbjectives Fara 7estaurant G LoungeIs objectives for the first three years of operation include! Oeeping food costs at less than J23 of revenue. ,mproving our Pross Margin from >2.K93 in Year 9 to >=.9+ in Year *. .hese are attainable targets@ our QstretchI is to attain =+.=J3 by Year J. Oeeping employee labor cost between J=:J<3 of total sales. 7emaining a small, uni-ue restaurant with eclectic food and service. Averaging sales between L9,*++,+++ : 9,2++,+++ per year. romoting and e6panding the Fara restaurant concept as a uni-ue Midtown destination restaurant. C6panding our marketing and advertising in Atlanta and in the neighboring suburbs to increase our customer base. Achieving a profitable investment return for investors for Years * : >.
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*.+ 1ompany #ummary The -esign Fara 7estaurant G Lounge is uni-ue to Midtown Atlanta. .he restaurant features J venues in one $a concept called Multi-Branding' &! A .apas Lounge, 1osmopolitan 'ar, and )ull #ervice Bining. .his concept offers customers variety, offering multiple dining and entertainment options within a single establishment. .he spatial and menu divisions will broaden our appeal and provide our customers with a different e6perience on each visit. .he atmosphere caters to a young but mature adult crowd. .his is not a family dining establishment. .otal space re-uirements are J,+++ s-uare feet. ,n total, the restaurant will provide seating for 99+ patrons. Where possible, consideration will be given to incorporate a dining patio. Foning, parking, and accessibility issues will be reviewed as key criteria. We will draw on our Advisory 'oard as part of the site selection and lease negotiation. The )en' Fara is focused on servicing AtlantaIs growing demand for an ethnic eating e6perience. )or lack of a better term we are launching a Qmulti:ethnicI cuisine restaurant : a restaurant concept that responds to AtlantaIs need for selection and choice. Fara is a complimentary mingling of international cuisine on a single menu. .he Midtown demographics fit this concept perfectly. The )anagement Dur management team has over K; years combined e6perience in food, restaurant and hotel, business management, finance, and marketing arenas. *.9 1ompany Dwnership .he restaurant will start out as an LL1 corporation, owned by its founders, Fander Nunte and eter #mith. Mr. #mith will function as the Peneral Manager and C6ecutive 1hef, and Mr. Nunte as Managing artner. Mr. Nunte and Mr. #mith have a long:standing professional relationship in the restaurant industry, stemming back to .oronto, 1anada. Mr. #mith is an accomplished restauranteur, having owned several full:service restaurants. Ne currently owns 'rassaii 7estaurant $www.brassaii.com&, and 'auhaus 'ar and 5ightclub. Mr. #mith is also an international 7estaurant 1onsultant for top organiHations such as the #tarwood Proup, who own the hotel chains of .he Westin, #heraton Notels, )our oints, #t. 7egis, and W Notels. Mr. Nunte has a background in ,nternational 'usiness Management, and is certified in 7estaurant and Notel Management. Ander the management of Fander Nunte, Myth 7estaurant was a feature restaurant in .oronto, and distinguished as a top 9+ restaurant while under his management from 9<<* : 9<<2. *.* #tart:up #ummary We are currently negotiating a restaurant space of J,+++ s-. ft. in Midtown Atlanta, Peorgia, and will open Fara in Dctober of this year. Dur start:up costs are mostly e6pensed e-uipment, furniture, painting, reconstruction, rent, start:up labor, li-uor license, and legal and consulting costs associated with opening our restaurant. At the start of business, L<=,+++ will be allocated for business operations reserve.
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.his is a solid start:up forecast based on our market analysis and our knowledge and e6perience in the industry. We will purchase the following L=J,J99 worth of current assets during start:up ! 6i/t'res and 4ighting2 LJ*,*2+ Bar .*'ipment2 L*>,9;J So'nd and Tele%isions2 L;,J=; &ffice .*'ipment 7# Comp'ters, 6a/, Printer, Safe82 L>,2++
Long:term Assets in the amount of L>2,+++ include all kitchen e-uipment. We have budgeted for the services for a premier 7estaurant 1onsultant familiar with the Atlanta Market. .his is especially key during the site selection and start:up stage. .his company will have an integral role in validating the final restaurant location and personnel selection, and participate on the Fara Advisory 'oard. .he two owners are personally committing L99+,+++ of capital, plus a LJ++,+++ #'A =$A& loan guaranty. ,n addition, we have obtained a L9J+,+++ grant from the city towards restoration of our historical building, as part of the cityIs Midtown revitaliHation program, contingent upon locating in the proposed space. We are seeking L*++,+++ of e-uity investment to fully fund FaraIs startup costs. *.*.9 Location G Dperations ,esta'rant 4ocation Midtown Atlanta is the location selected for the Fara concept. .he outlook for the future of AtlantaIs Midtown district is e6ceptionally positive and the most progressive development area in the city. Bevelopers are infusing over L2+ billion in 1ommercial, 7esidential, and 7etail development. FaraIs will benefit from AtlantaIs desire to revamp the Midtown district with a L9J+,+++ renovation grant for restoring and renovating the 9++ year old property we plan to lease. .he market has been carefully selected and tested for the necessary demographics and retail traffic necessary to meet the goals laid down for profitability. .he busy Midtown commercialEresidential location has been chosen based upon a successful demographic model and a traffic count of more than JJ,+++ cars daily. ,esta'rant -esign #ingle:Level Besign 1oncept! .he total space re-uirement is J,+++ s-uare feet. .he restaurant will feature a comfortable and open concept design. .he central dining area will allocate => seats, the lounge ** seats, and the dining bar with 9* seats. ,n total, the restaurant will provide seating for 99+ patrons. Where possible, consideration will be given to incorporate a dining patio. Foning, parking, and accessibility issues will be reviewed as part of this analysis. Dptional atio! Buring the busy summer months customers can also sit outside on our patio and we will offer a special summer menu, featuring lighter fare, e6otic drinks, as well as non: alcoholic offerings. .he patio setting will be a fun and casual atmosphere for the summer crowd. &perating Criteria .he restaurant will be located in Midtown Atlanta. .he restaurant will service lunch, dinner, and
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after:hours dining during the week and weekends. .he restaurant will operate during peak service time to take advantage of street traffic, and after:hour patronage from the entertainment facilities in the area. #ervice will be available during the following hours! 4'nch2 Monday to #aturday, 99 a.m. : *!J+ p.m.
-inner2 Monday to #aturday, 2!J+ p.m. : 9* midnight S'ndays " )arket (r'nch takeo't only.
1hart! #tart:up
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.able! #tart:up
Start-up Requirements Start-up Expenses PROJECT MANAGEMENT Restaurant Consultant ( mont!s" 'ES(GN Ar)!ite)tural 'esi*n Stru)tural , Plum-in* 'esi*n Me)!ani)al , Ele)tri)al 'esi*n Grap!i) 'esi*n Ele)tri)al , Stru)tural En*ineerin* 1ees 'esi*n Consultants (2it)!en% (nterior , 'inin*" En*ineer , Ar)!ite)t 1ees CONSTR4CT(ON Plum-in* 56AC (Air Return% Air 'u)ts% et)7" Ele)tri)al 'isposal , 'emolition Stru)tural Constru)tion ( Mont!s General 8a-our" 1a)a9e (Exterior Constru)tion" Plaster ('r: ;all" Mill , Metal ;or< (nterior 1inis!es (+$00 - .000 sq7 =t7" 1loorin* 1ire Alarm S:stem Se)urit: , P!one S:stem E>4(PMENT 8iquor Control S:stem - 8ease Stools% C!airs% Ta-les% 4ni=orms POS (Point o= Sale S:stem" - 8ease Glass?are% 1lat?are% Small?are (@ar , 8oun*e" Glass?are% 1lat?are% Small?are , Supplies (1O5" 'is!?as!er% ()e , Glass?as!er - 8ease 2it)!en Equipment 1rei*!t 1ees 11,E Taxes (Taxes on Pur)!ase" OPERAT(ONA8 CapitaliAe9 8e*al 1ees (88C% (nBestor A*reements" So=t?areC RestaurantD(nBentor: So=t?areC Cost Control (mpa)t% Tap , Permit 1ees @usiness 8i)ense , Temp Certi=i)ate o= O))7 8iquor 8i)enses 4tilities% 'isposal% Tax , (nsuran)e Se)urit: 'eposits (P!oneDEle)DGasD;ater" (nitial 8ease 'eposits @an< , 8oan Closin* Costs ;e- Site Constru)tion (nitial Mar<etin*% Trainin* , PR Resear)! , 'eBelopment Start-4p Salar: (Mn*t , C!e=s" Re)ruitin* (Sta==" (nspe)tions (nitial Cleanin* SerBi)es Total Start-up Expenses Start-up Assets Cas! Require9 Start-up (nBentor: Ot!er Current Assets 8on*-term Assets Total Assets Total Requirements $&3%0&& $+3%$00 $3.%.## $/$%000 $+/+%&#0 $/&0%##& $0 $#$%&## $0 $+%#&$ $#%./0 $+%#$$ $#%#0$ $+%$&+ $&%##& $3%0 0 $0 $..%+ $#&%+$0 $3%&/ $ %#++ $$+%0&& $.%0&+ $+%0/# $0%+ $# %$.0 $# %/++ $.%0&+ $ %/#$ $0 $0 $.0%0+$ $0 $.%+&0 $0%+&0 $0 $+%.0& $3%&00 $0 $3%000 $$%$00 $/%000 $.%##$ $#%/#$ $ %/#$ $&%+3$ $/%+$0 $/%+$0 $/%+$0 $$%000 $#&%$$0 $.%0$0 $$0%0$0 $# %$$0 $3$0 $#%000 $ +3%+0&
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.able! #tart:up )unding
Start-up Funding Start-up Expenses to 1un9 Start-up Assets to 1un9 Total 1un9in* Require9 Assets Non-)as! Assets =rom Start-up Cas! Requirements =rom Start-up A99itional Cas! Raise9 Cas! @alan)e on Startin* 'ate Total Assets $#/$%0## $&3%0&& $ &%00# $# /%&00 $.#+%3&# $ +3%+0& $+/+%&#0 $/&0%##&
8ia-ilities an9 Capital 8ia-ilities Current @orro?in* 8on*-term 8ia-ilities A))ounts Pa:a-le (Outstan9in* @ills" Ot!er Current 8ia-ilities (interest-=ree" Total 8ia-ilities Capital Planne9 (nBestment Ean9er 5unte Peter Smit! (nBestor # (nBestor + (nBestor . (nBestor (nBestor $ Mi9to?n ReBitaliAation Grant A99itional (nBestment Requirement Total Planne9 (nBestment 8oss at Start-up (Start-up Expenses" Total Capital $/0%000 $$0%000 $ 0%000 $ 0%000 $ 0%000 $ 0%000 $ 0%000 $#.0%000 $0 $ 0%000 ($ +3%+0&" $#+%3&# $0 $.00%000 $0 $0 $.00%000
Total Capital an9 8ia-ilities Total Funding
$.#+%3&# $3 0%000
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J.+ #ervices Fara 7estaurant G Lounge will feature international dishes, an eclectic ambiance, and superior service. Dur food will be of the finest -uality and prepared with e6otic flare. 1ustomer satisfaction is the driving force behind our success. We will change our menu every K months, but maintain the IfavoritesI for loyal patrons. ortions will be modestly siHed, garnished with stunning presentation. Dur wine list will be modest and primarily focused on wines from 1alifornia, #pain, ortugal, and Argentina. Appro6imately *23 will be available e6clusively by the glass, and the remaining labels will be available by the bottle. We will also feature a moderate international beer selection on tap and in bottles. .he Fara bar features a comprehensive selection of local and international spirits. .he kitchen staff will have the best in culinary education and work e6perience. .heir creative talents will compliment one another. .he lounge and restaurant staff will offer the finest service in an electric atmosphere and offer customers an e6traordinary dining e6perience. J.9 Fara Menus FaraIs varied international menu will feature .hai, 1hinese, #panish, and other regional flavors. .he menu flows together to create complementary elements. 5ormal dining will have a reduced .apas, AppetiHer and CntrRe selection, while the )usion Bim #um menu will have special items featured only for after:hours dining. .he final menu will be defined by the C6ecutive 1hef and paired with the wine menu. We have carefully selected a premium wine, beer, and alcohol listing, from which we will choose a modest rotating selection. FaraIs marketing will focus on our e6otic foods, but our hours, target market, and location will produce significant alcoholic drinks sales. .apas, in particular, are small dishes meant for sharing while drinking sangria, wine, or other mi6ed drinks, and the .apas menu will play up this idea with drink suggestions. .he list below offers a small selection of our opening menu offerings! 9ara Tapas #hrimp 'askets wE sweet G sour peanut coulis Minced curry beefEchicken wE onions in roti wrap $or spring roll& Mi6ed #eafood 1eviche wE couscous siding 'amboo 1hicken #atay wE kaffir lime and #esame marmalade
9ara Appeti+ers 'read basket served with Dlive oil, 'lack epper, and Poat 1heese dip 'lue 1rab )ritters with Mango:.amarind sauce 1rab 1ake medallions wE #hrimp G Lobster QFaraI
Salads Mi6ed Preens with #panish sherry wine vinaigrette
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Asian ear and Cndive #alad with 'lue 1heese G Walnuts
.ntrees .e-uila #callops wE a #panish sherry reduction .hai 7ed 1hili rubbed shrimp Soodoo rince 1urry 1hicken and 'ock 1how wEsticky rice in 'anana Leaf Nerb 7oasted 1hicken with QFaraI 1oo:1hee $Nouse& spices
-esserts 1hocolate 1hunk 'read udding wE 'ourbon 1herry sauce Fara 1hocolate C6plosion 0 Milk, Bark and White chocolate Fara )ruit late
Specialty -rinks 1 Coffees 7:;.! " .!8 A key source of revenue for the restaurant will be alcohol and bar sales. .he restaurant will feature e6otic drinks on a separate menu. Alcoholic drink specials will be featured, as well as a large non:alcoholic selection. After:hours bar service will feature selections of non:alcoholic drinks to increase bar sales during lunch and after regulatory hours. 'ar pricing is competitive@ prices range from LJ.2+ to >.<2. 5on:alcoholic drinks will be in the higher price bracket due to preparation re-uirements. rices will range from LK.=2 to <.2+. K.+ Market Analysis #ummary ,nstead of building a business around a preconceived concept, we conducted market research and built a concept around our consumers. Dur market analysis identified the following key drivers as areas of opportunity to service AtlantaIs restaurant customers! 9. Portion Selection2 5early <23 of our surveyed focus group endorsed having a choice of different siHe portions. .his statistic is in line with findings reported by the Tableservice Operator urve!. FaraIs .apas concept is built to offer different:siHed portions. Dur customers want the option to choose what satisfies their appetite. *. )en' <ariety2 Cthnic restaurants are increasing in Atlanta. .he proliferation of international cookbooks, food magaHines, .S cooking shows and imported goods offers ample evidence that America, as a whole, is currently on an international tasting spree. ,n fact, eating places that identify themselves as ethnic establishments numbered nearly =;,+++ in 9<<< and recorded sales of LJ+.2 billion. Dur research results do not identify any single ethnic style of restaurant as desired, but rather suggest that incorporating strong multi:ethnic influences in the menu selection will be popular. Again, variety is the underlying element for this concept. J. The -ining ./perience2 1ustomer satisfaction with food and service has been and continues to be of utmost importance, but our findings indicate that the dRcor, lighting, bar, and other options to improve the dining e6perience are also factors in customer decisions. Fara takes all these factors in consideration for the design of this cosmopolitan restaurant. K. ,easona(le Prices2 .his was no surprise given the economic tide. Although the restaurant industry as a whole has seen growth in *++*E*++J, customers are demanding value for their dining dollar. FaraIs menu is priced at a mid:tier level, with no entrRe over L*+. ,n
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addition we have an e6tended .apas and AppetiHer selection priced between LJ.2+ : L<.2+, allowing budget dining in a full:service restaurant. K.9 Market #egmentation FaraIs 7estaurant G Lounge intends to cater to a wide customer base. We want everyone to feel welcome and entertained. We have defined the following groups as targeted segments that contribute to our growth projections! .he 'usiness erson Bowntown Atlanta 1ouples .he Bestination 1ustomer Nigh:Cnd #ingles .ourists
.hese particular market segments are *2:K2 years old, have disposable income, and are seeking upscale, trendy, and comfortable restaurant options. .hese are the types of people who fre-uent other restaurants and bars in the area. .hey are likely to spend more on e6periences they perceive as uni-ue, cosmopolitan, and sophisticated. .hey are also the most open to trying something new, foodwise, and will embrace our international fusion cuisine. .able! Market Analysis
Market Analysis Fear # Potential Customers @usiness Person 'o?nto?n Atlanta Couples Tourists T!e 'estination Customer 5i*!-en9 Sin*les Total Gro?t! #0G .+G #.G 0G +&G $73/G &%&+$ #3%/ $ 3%#/0 % ## #$%&&# $$%# 0 #0%++. #0%$+3 3%.## % && #/%&$0 $3%$#0 ##%. 0 +0%$/$ 3%0&/ %3+ #0%0#$ /.%. 0 ##%/00 +#%$&. 0%0$ %0#0 #&%& //%0&3 #+%0.& ++%/3. 0%+#$ %&# +#%# # /0%&0+ Fear + Fear . Fear Fear $ CAGR 7&$G /7 3G .7 3G +73 G 37+.G $73/G
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1hart! Market rofile $ ie&
K.* .arget Market #egment #trategy The B'siness Person2 .hey work hard all day and often stay overnight in a strange city. .hey need a competent establishment that helps impress clients and prospects. Afterward, they want to rela6 and use the money they are making $or is e6pensed by their company&. .hey spend the most on drinks, food and tips. FaraIs cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people, whether they live in and around Atlanta or are here for work. -owntown Atlanta Co'ples2 .he restaurant will have an intimate, romantic, enticing adult atmosphere that suggests Tdate.T FaraIs will be the best date location in town. .hese young Midtown couples are generally very successful working professionals. ,n most cases they are budgeting to eat out on a regular basis, as they donIt have the time to prepare food nightly. The -estination C'stomer2 Atlanta is a very IsectionedI city, and consumers often look only in their own neighborhoods for restaurant options. Fara will break these habits, using marketing to draw customers from outside the main city limits. Fara will be a destination restaurant. Dur Bestination 1lients tend to be new suburbanites that miss the e6citement of the inner city. .hey have disposable income, and will spend -uite a bit on such outings. FaraIs will be especially appealing to married suburban couples indulging themselves with a Tdate nightT downtown, away from the kids. Many of these consumers are new to Atlanta from larger cities, accustomed to dining within the city and at non:franchised restaurants. =igh"end Singles2 We will attract them with our eclectic atmosphere and layout. Dur international menu, striking decor, entertainment and events, e6cellent service and engaging clientele will confirm the feeling of being in Tthe in placeT in Atlanta. .hese are the individuals that pride themselves on socialiHing and dining at the premier locations : .he ,mage #eekers. To'rists2 Atlanta attracts many vacationers during the summer months of May through #eptember. FaraIs will be a destination dining locale, with its attractive atmosphere,
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international menu, and lounge. A large percentage of the tourist population are vacationing singles, here to socialiHe and be entertained. .his is especially true for the tourist population that visit for sporting and social events : they are not interested in family establishments. K.J #ervice 'usiness Analysis .he restaurant industry is highly competitive and risky. .he owners know this through their many years of e6perience opening, running, and improving restaurants across 5orth America. Most new restaurants opened by ine6perienced owners struggle or fail. Nowever, those based on solid understandings of the market needs, and management of inventory and staff have a much higher chance of success, especially when combined with prior e6perience in the restaurant industry. 7estaurants make money by taking ine6pensive ingredients, combining them in creative ways, cooking them properly, and selling them at a much higher price. Any ingredients wasted in the kitchen are money thrown out. Any time wasted in seating customers, taking orders or preparing food is money walking away. While some entrepreneurs think that success is as simple as a good location and a trendy concept, we know the truth! To s'cceed in the resta'rant ind'stry, yo' need an 'nderstanding of the risks and financial conditions, the a(ility to handle enormo's press're, and the organi+ational skills to (ring off what is essentially a giant catered party, two to three times a day.
K.J.9 1ompetition and 'uying atterns ,n *++J, the top ten Atlanta restaurants shared two things! coHy, hip interiors and reasonably priced, regionally specialiHed menus. Dnly one of them offered traditional TsouthernT cooking. And half of them were located in Midtown. Dur competitors are heading in the right direction, but only Fara is based on sound market research in the local market. Atlanta consumers are seeking variety and new e6periences. Location is clearly important, but so is atmosphere and distinctiveness. Dur marketing challenge is thus to stand out from our competitors, not only as the TnewT restaurant, but as one that offers consistently high -uality food, menu variety, and a uni-ue atmosphere. Maintaining our edge will depend partly on marketing ourselves as an adult:only destination, and not a family restaurant. 2.+ #trategy and ,mplementation #ummary Dur strategy is simple. We intend to succeed by giving people a combination of e6cellent and interesting food in an environment that appeals to a wide and varied group of successful adults. We will focus on establishing a strong identity in our community with a grand opening. Dur main focus in marketing thereafter will be to increase customer awareness in the surrounding communities. We will direct all of our tactics and programs toward the goal of e6plaining who we are and what we do. We will keep our standards high and e6ecute the concept flawlessly, so that word:of:mouth will be our main marketing force. We will create an appealing and entertaining environment with unbeatable -uality at an e6ceptional price. As an e6citing and eclectic restaurant, we will be the talk of the town. .herefore, the e6ecution of our concept is the most critical element of our plan.
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All menu items are moderately priced for the area. While we are not striving to be the lowest: priced restaurant, we are aiming to offer e6ceptional food at reasonable prices for the average restaurant diner. 2.9 1ompetitive Cdge FaraIs competitive edges are! 9. *. J. K. 2. >. =. ;. .he ownersI thorough understandings of opening and running a restaurant An e6traordinary contemporary restaurant design ,nternational menu with featured menu changes every K months Ani-ue, J:.iered spatial layout 1hef 1o:op program to allow new entrants, trainee and featured chef 1hefEManagement #tock ,ncentive rogram. ,nner and Duter 1ity Marketing campaign $i.e. T1ome to .ownT promotions& Cmployee .raining, ,ncentive and 7etention program
2.9.9 1ompetitor Analysis 'elow are e6cerpts from our competitive analysis study. 1. The >itchen 7-irect Competitor82 We were able to draw some conclusions from this analysis that helped defined the concept and positioning for Fara! 9& Oeep the menu pricing modest but offer superior food -uality and presentation. We plan to keep the menu prices under L*+@ *& Midtown is a prime restaurant location. Dne Midtown Oitchen is in an obscure location but has thrived as one of the more successful restaurants in the area@ and J& .he customer base in this segment of Atlanta is ready for after:hours dining, and is willing to travel to establishments that accommodate their needs. #. 4'naci 7-irect Competitor82 .his restaurant is a main competitor for Fara, a casual dining restaurant that has evolved to be a great success story for the Midtown district. .his restaurant served to validate 9& the tapas concept appeal for Midtown customers@ *& the evolving need for after:hours dining@ J& tapas as a good food concept for after:hours dining $smaller portions, smaller price&@ K& the appeal of live Cntertainment. ;. C'm'l's 7Indirect Competitor8 .his restaurant has grown in popularity over the years, and has gained popularity as a destination restaurant that can cater to business professionals as well as the local residents. .he menu is somewhat formal for this market segment, but the bar attracts a good crowd. Buring this study it was evident that some patrons came e6clusively to sit at the bar, without any intent of dining in the restaurant. 1umulus is more of a formal dining restaurant and meets a certain need within the community, but , donIt see it as a direct competitor of Fara. , do feel that it has some very special elements that have helped it succeed over the past J years, which Fara can benefit from.
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?. Cheesecake 6actory 7@1 ,esta'rant Comparison82 Although 1heesecake )actory is outside of FaraIs restaurant district and not considered a direct competitor, it was beneficial to analyHe the most profitable restaurant in Atlanta to understand what contributes to their success. 1heesecake )actor offers several key elements that would also benefit Fara! 9& 1ustomer #atisfaction through moderate pricing and high:-uality food@ *& Location selection to benefit from core customer demographics, situated in a busyEpopular area for both business and residential traffic@ J& C6ceptional #ervice, from the Salet, to Nosting, to Wait, 'us, and 'ar staff@ and K& Menu Sariety, offering a broad array of menu items. !. Swing ,esta'rant 7Indirect Competitor82 .his restaurant is not in our market district and therefore not a direct competitor, although we do consider it an QindirectI competitor. #wing incorporates some of the characteristics that we have mapped out for Fara. .hose elements are! 9& A .apas and CntrRe menu 0 realiHing that customers want varied meal siHe and variety@ *& A club type atmosphere to entice the single scene and to drive bar sales. #wing validates some of the elements uncovered in our market research as to what the new Atlanta diners are looking for. .his serves as a true validation that the timing is right for the Fara 7estaurant G Lounge concept.
6ailed ,esta'rant Analysis2 )'m(o A'm(o Mumbo Uumbo was an Atlanta restaurant attraction in the downtown core, a strong competitor that was severely impacted by the patronage demise after <E99. , also completed an analysis of this restaurant back in 9<<< and compared it to this current analysis in *++J. #everal factors led to closing of this restaurant! 4ocation2 .his was a very cosmopolitan restaurant located in a core business community. .he restaurant was hidden in cross streets and away from the general street traffic. .his was a destination restaurant and a secondary selection for the general customer base in this area. 4esson 4earned2 As part of this analysis, we have determined that the downtown core is not a good fit for the Fara concept. We will limit our site selection to the core Midtown district and the upper Bowntown district. Midtown is AtlantaIs major growth district and is developing the residential infrastructure in pace with the business infrastructure. C'stomer Segment2 AtlantaIs downtown core is not ready for this type of restaurant. AtlantaIs downtown core is a business district, and residential development for this area is at the Penesis state. .he primary customer base is the business person and tourist. .he largest percentage of this customer segment will be looking for a restaurant in which to conduct business or a family establishment@ Mumbo Uumbo would not be a primary selection in either case. 4esson 4earned2 FaraIs target market demographics are perfectly in alignment with the Midtown profile. Midtown has a business core as well as a residential core. We will look to the business core for our primary daytime business, but to our residential core for our dinner and after:hours patronage. ,n addition, the business core will look to Fara as a place of socialiHation for dinner and after:hours unwinding. Mumbo Uumbo depended on the business segment for
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their lunch and dinner profits, and customers who would travel from outside the downtown district to eat at the restaurant 0 there was no static dinner segment. <isi(ility2 Nand:in:hand with location, this restaurant also suffered from poor visibility. ,n the downtown core a large percentage of business is from walk:in traffic. .he business and tourist customers tend to select a restaurant from touring the area and accessibility. Mumbo Uumbo was situated on a cross street behind the main street. 4esson 4earned2 Although being situated on a main street is not as key in the Midtown district, we will ensure that visibility is part of our site selection criteria. ,n addition, we will use signage and e6terior dRcor as means to attract customers and get noticed. ,n all, this restaurant was a staple in AtlantaIs downtown core for over 9+ years, but key restaurant disciplines $Location, 1ustomer #egment, Sisibility& came back to hurt them as the economic climate changed. )arket Analysis Concl'sion2 At the end of the day, everyone that sells prepared meals in this district is a Fara competitor, because we all compete for the same home meal replacement dollar. Nowever, there are two segments of the restaurant industry that are our main competition! the casual dining restaurant and the fine dining value restaurant. #o, if the food and service is better at a fine dining restaurant than a casual restaurant, but price has become a factor as a result of the economic turns, where is a customer more likely to goV .here is no absolute answer to the -uestion, but the solution is to deliver the best food at the best price with the highest level of service in one establishment. .his is the very definition of value and the concept at the heart of FaraIs business model. 2.* Marketing #trategy Fara 7estaurant G LoungeIs Marketing strategy will be to promote our electric food, superior service, and e6citing concepts to draw in the local repeat customers. Marketing initiatives will concentrate on the following! B'ilding and Signage2 .he most important Marketing tool that we have is the e6terior of our building, and our new sign. We budgeted a great deal into the renovations and decor to generate the aesthetic appeal of Fara. #ee attached Logo and Web design. C'stomer Ser%ice2 ,n our years within the restaurant industry, customer service has always been the major draw for the dining clientele. )ood and atmosphere is far out:shadowed by superior customer service that turns a new customer into a repeat customer. Management will demand the wait:staff provide the very best in -uality services to the customer, making certain that they are content and satisfied with their dining e6perience. Wait: staff are thoroughly trained, and every <+ days they undergo a performance appraisal. .his is part of our Cmployee Manual, and Dperations Manual guide.
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Ad%ertising and Promotion2 Dur Advertising lan and media schedule call for targeting customers directly through local publications aimed at , respectively, singles, couples, and destination customers. Management recogniHes the key to success at this time of initial opening is e6tensive media promotion. .his must be done aggressively in order to accomplish our service goals. A healthy budget is allocated for the first year. A primary part of the budget is allocated to create the media and customer buHH for the month prior to opening and the ne6t three months after the grand opening. .he full Marketing program is as follows!. Media Dbjectives and #trategy! Cstablish our image as a uni-ue Midtown restaurant with great service, value, and great food served in an eclectic atmosphere. We will ma6imiHe efficiency in the selection and scheduling of advertisements by! #electing primary business publications with high specific market penetration, using .he 1reative Loafing Bining #ection, .he Atlanta Uournal 1onstitution, Atlanta 1ity #earch, and #ocial Biva, which all reach our targeted demographics. #cheduling ade-uate fre-uency of ads to impact market with menu items and promotions. Where possible, positioning advertisements in or near entertainmentEfood related editorial. 7edirecting customers to our website to register for upcoming functions, S, lists, reservations, and flash media promotions. Ma6imiHing ad life with monthly and weekly publications.
Working with .he 7eynolds Proup Media 1o. $Fara Advisory 'oard&, we will develop an advertising campaign built around our Fara Biner theme, menu offering, location, and decor. We will support this plan with ads that reinforce the Fara dining concept. Additionally, we will develop a consistent reach and fre-uency throughout the year, targeting each specific customer segment within a five:mile radius, and new Isuburbanites,I who still appreciate in:town dining. Promotional Campaign2 .he best way to reach our potential customers is to develop an intense advertising campaign promoting our Fara concept of T pice o" #i"e.T ,n addition to standard advertising practices, we will gain considerable recognition through newspapers, newsletters and public announcements. 1onsumers will be encouraged to visit our website to be greeted with a flash media intro that highlights the restaurant, past happenings, upcoming attractions and our dynamic menu. Dur periodic customer surveys and weekly menu item sales evaluations will help us to understand what advertising is working and what is not@ basically, who we are reaching. Dur goal is to understand our customer, measure the success of our direct marketing and media activities, and redirect advertising as effectively as possible. P'(licity Strategy2 Working with .he 7eynolds Proup, Fara will focus on the following publicity strategies! Bevelop a sustained public relations effort, with ongoing contact between key editors and top:level personnel at local dining publications. Bevelop a regular and consistent package update program for the major target media, keeping key editors abreast of all new promotions, and menu introductions.
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Cstablish contact with editorial staff for the purpose of being included in entertainment Tround:upsT::product comparisons in dining publications and the local papers. roduce a complete Fara 7estaurant history and menu offering piece to be used as the primary public relations tool for all target media editorial contact. .his will also be effective for inclusion in press kits.
Press ,eleaseBCrand &pening2 Fara 7estaurant will release a series of press releases on the Prand opening. .ditorial <isitation2 Leading up to the Prand Dpening, and over the first > months of operations, we will invite the most influential reporters and editors from all local publications to Fara 7estaurant in order to evaluate our menu, service, and atmosphere. P'(licity ,e%en'es2 We anticipate at least 9+3 of our annual sales will be generated directly from our publicity. A full media kit will be sent to all local publications, and releases on new menu items will be made monthly. Comm'nity2 Fara will look for key opportunities to pair with local community development organiHations and radio stations to interface with our customers. We will continually look for local community programs in which we can participate, in order to better our community, and give something back. 2.*.9 Marketing rogram ,n line with our Marketing strategy, we will employ three different marketing tactics to increase customer awareness of Fara! ,n:7estaurant Marketing, ublic 7elations Marketing, and Media Marketing. Dur most important tactic will be word:of:mouthEin:restaurant marketing. .his will be by far the cheapest and most effective of our marketing programs. Dord"of"mo'thBIn",esta'rant )arketing ,esta'rant Eight2 Cvery first Monday of the -uarter, we will have a special evening for restaurant people. A perfect night for the local areaIs restaurant owners, chefs and staff to get together to discuss the market and food trends, and possible 1o:op efforts to promote the Midtown district. .his is not a conflict of interest, it is an effort to increase visibility and patronage across the Midtown district. We will also invite the Midtown Alliance committee for their participation. )onthly -ating Connection2 With the increasing appeal of ,nternet and speed dating, the restaurant will offer a monthly dating night. ,n addition to food and beverages, customers can choose from an array of dating packages up for auction. Dait Area )arketing2 Wait staff will service appetiHers to customers waiting to be seated or on the wait list. Live Cntertainment parties #pecial Cvents SalentineIs Bay Fara Nalloween Mas-uerade party Wine tasting weekend 5ew YearIs Cve party
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P'(lic ,elations )arketing Ceorgia =ospitality 1 To'rism <.I.P. Party2 We will host a S.,. . Binner before the IPrand Dpening.I .his will serve the dual purpose of training our staff and introducing ourselves to the community. .he list of individuals we will invite comes from the 1hamber of 1ommerce, Peorgia Nospitality G .ourism, and Midtown Bevelopment group. We want their full committment to the restaurant to draw the tourist dollars. Critics5 Choice2 rior to the Prand Dpening there will be two preliminary parties catering to the Media and 1ritics community. We will encourage the media and restaurant critics to meet at the restaurant and review the decor, service and food. .his will be a preliminary review, where we will consider constructive input to make minor revisions prior to the true Prand Dpening. .his initial review and input will give critics and media commentors a stake in FaraIs success, through their contributions to the final design. Broch'res2 Make a brochure for the in:town hotels and business establishments to provide to their guests and staff, containing interior pictures of our restaurant, menus and prices. Co%ernment ,elations2 .here are several Povernment offices in the MidtownEBowntown area. We will approach them to cater business luncheons and private functions. .his will offer us higher visibility for future functions and community events. Word:of:mouth referral is very powerful and particularly amongst the business community. Pri%ate 6'nctions2 .arget marketing to businesses for regular business lunch and dinner entertaining, and private functions.
)edia )arketing Eewspaper campaign2 A very targeted media campaign to obtain featured articles about the restaurant in their Living, Cntertainment and Bining segments. 5otices of all live entertainment segments and special features will be posted to local newspapersI calendar announcements. ,esta'rant and Special .%ents De(site2 We have contracted with local design teams to deliver a high:-uality, navigable, constantly updated website. )edia ,elations2 #everal media relations teams will be utiliHed to market the 7estaurant. #ocial Biva and Preen )rog are two media companies we will utiliHe for media relations. 'oth companies have an insightful presence and connection with our target market. Bill(oard Ad%ertisement2 Dne month prior to the opening, distinct billboard ads will advertise the launch of the 7estaurant. Inner 1 &'ter City )arketing2 We will budget to attract customers from the suburbs.
2.J #ales #trategy Dur strategy is simple! we intend to succeed by giving our customers a combination of delicious and interesting food in an appealing environment, with e6cellent customer service, whether on their first visit or their hundredth.
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Dur marketing strategies are designed to get critics and initial customers into our doors. Dur sales strategies must take the ne6t step and encourage customers to become repeat customers, and to tell all their friends and ac-uaintances about the great e6periences they just had at Fara. 5ew restaurants often make one of two mistakes! they are unprepared or underprepared for opening, and initial poor service, speed, or -uality discourages customers from returning, or they spend all of their efforts at opening, and are unable to maintain the initial -uality customers e6pect on return visits, decreasing word of mouth advertising and leading to poor revenues. FaraIs sales strategy re-uires consistently high -uality food, service, speed, and atmosphere. We can accomplish this by! Niring employees who genuinely enjoy their jobs and appreciate FaraIs uni-ue offerings 1ontinually assessing the -uality of all aspects mentioned above, and immediately addressing any problems ,nteracting with our customers personally, so they know that their feedback goes directly to the owners Cvaluating food choices for popularity, and keeping favorites on the menu as we rotate seasonal foods and specials
2.J.9 #ales )orecast .he following sales graph is based on first year start:up estimates only. We anticipate that the business will not be at full operating capacity until the si6th month of operations. .his is due to the competitive nature of the market and e6isting customer loyalty. All factors governing our sales progress are outlined below in the ,mportant Assumptions section. Dur sales forecasts for years J through 2 are very conservative, compared to industry standard growth rates. $#ee 7atios table for comparisons.& Although we hope to do catering for local businesses and government offices with time, we will insist on payment at delivery : we will not sell on credit.
.able! #ales )orecast
Sales Forecast Fear # Sales Total Sales 1oo9 Total Sales @arD@eBera*es Ot!er Total Sales 'ire)t Cost o= Sales Total Cost o= SalesC 1oo9 Total Cost o= SalesC @arD@eBera*es Ot!er Subtotal Direct Cost of Sales $0$.%$&$ $++0%#3 $0 $#%03.%3/& Fear # $+&0%3$0 $3+%/$3 $0 $.3#% #/ $&$&%0 3 $+$+%0 # $0 $#%+##%000 Fear + $.++%+ 0 $3/%#/3 $0 $.&0% 03 $#%00/%&&& $+3+%+0 $0 $#%+3&%+0 Fear . $.+&%+0& $33%/03 $0 $ 0/%&3/ $#%0 3%+3& $+&.%&0# $0 $#%. #%+/0 Fear $../%0 0 $3&%++0 $0 $ #$%+3/ $#%00&%#30 $.#3% && $0 $#% 0/%/30 Fear $ $. +%3/+ $00%0.$ $0 $ +.%$&3 Fear + Fear . Fear Fear $
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1hart! #ales Monthly
1hart! #ales by Year
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2.K Milestones .he following Milestones table lists important business milestones, with dates and managers in charge of each deliverable. .he milestone schedule indicates our emphasis on planning and managing the details.
.able! Milestones
Milestones Milestone En*a*e Restaurant Consultin* 1irm Site Sele)tion 1inal Restaurant 8o)ation ApproBe9 (nBestor 1inan)e P!ase (nBestor Capital Se)ure9 (nBestor Partners!ip 88C 1orme9 (nterBie? =or Constru)tion Team Re)ruit C!e= (Equit: Partner" Re)eiBe 1inal Contra)tor @i9s Constru)tion @u9*et ApproBe9 Se)ure9 S@A 8oan 5ire Restaurant Ar)!ite)t 5ire (nterior 'esi*n 1irm 5ire 2it)!en En*ineer 5ire General Contra)tor 1inaliAe C!e= Partners!ip Constru)tion ProHe)t 2i)<o== 1inaliAe 8ease 5ol9er @u9*et 1inaliAe 8ease Restaurant 'esi*n Complete (nterior 'esi*n Complete 2it)!en 'esi*n Complete Restaurant Openin* 'ate ApproBe9 1inaliAe Menu , ;ine Sele)tion Me9ia Plan ReBie? Appl: =or 8iquor 8i)ense Appl: =or Constru)tion Permit Su-mit 2it)!en Plan =or ApproBal @oar9 o= 5ealt! ApproBal =or 2it)!en 8iquor 8i)ense ApproBe9 Ar)!ite)t ReBie? @oar9 ApproBal Corporate @ro)!ure ReBie? @usiness , Mar<etin* Plan 8aun)! Eara ;e-site Or9er 2it)!en Equipment Or9er RestaurantD8oun*e 1urniture Or9er O==i)e 1urniture , Supplies @usiness , Mar<etin* Plan ReBie? PRDMe9ia A9Bertisin* (P!ase #" Pro9u)tion an9 Completion o= Menus Constru)tion o= Restaurant Pre-Openin* o= Eara Restaurant Emplo:ee Trainin* (P!ase #" ;ine Class =or Emplo:ees (P!ase #" Criti)sJ C!oi)e 6(P Part: Start 'ate 3D.#D+00 &D0D+00 &D.0D+00 0D++D+00 #0D+3D+00 #0D+0D+00 #0D+0D+00 #0D+0D+00 ##D D+00 ##D#&D+00 ##D#D+00 ##D+0D+00 ##D+0D+00 ##D+0D+00 ##D+0D+00 ##D#$D+00 ##D+ D+00 ##D+ D+00 ##D+0D+00 ##D+$D+00 ##D+$D+00 ##D+$D+00 #+D#$D+00 ##D+#D+00 #+D#$D+00 #+D#$D+00 #+D#$D+00 #+D#$D+00 #+D+&D+00 #+D+&D+00 #+D+&D+00 +D+D+00$ .D#D+00$ .D#$D+00$ +D#D+00$ +D+D+00$ +D+D+00$ D+/D+00$ $D#D+00$ $D$D+00$ +D+D+00$ $D+ D+00$ $D#0D+00$ $D#0D+00$ $D+$D+00$ En9 'ate 3D.#D+00 &D+&D+00 #0D#D+00 #0D++D+00 #0D+3D+00 #0D.#D+00 ##D.D+00 ##D# D+00 ##D#3D+00 ##D#&D+00 ##D+#D+00 ##D+#D+00 ##D+#D+00 ##D+#D+00 ##D+#D+00 ##D+#D+00 ##D+ D+00 ##D+3D+00 ##D+0D+00 #+D#+D+00 #+D#+D+00 #+D#+D+00 #+D#$D+00 #+D#$D+00 #+D#&D+00 #+D#&D+00 #+D#&D+00 #+D#&D+00 #D.#D+00$ #D.#D+00$ #D.#D+00$ +D#.D+00$ .D$D+00$ .D#$D+00$ .D+0D+00$ .D+0D+00$ .D+0D+00$ D.0D+00$ $D#$D+00$ $D#3D+00$ $D+0D+00$ $D+ D+00$ $D+ D+00$ $D+ D+00$ $D+/D+00$ @u9*et $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mana*er AlexDPeter AlexDR7S!a=er AlexDPeter Alex Alex S7 5ollier Alex AlexDPeter Peter AlexDPeter AlexDPeter AlexDPeter AlexDPeter AlexDPeter AlexDPeter S7 5ollier Contra)tor A AlexDPeter R7 S!a=er Contra)tor I Contra)tor F Contra)tor E AlexDPeter C!e=DPeter AlexDM7Eimm AlexDS75ollier Contra)tor A Contra)tor E @oar9 @oar9 Contra)tor I M7Eimmerman AlexDPeter Alex AlexDPeter AlexDPeter AlexDPeter AlexDPeter M7Eimmerman C!e=DPeter Contra)tor A AlexDPeter C!e=DPeter Peter M7Eimmerman 'epartment O?ners Consultant O?ners O?ners O?ners 8e*al O?ners O?ners O?ner O?ners O?ners O?ners O?ners O?ners O?ners 8e*al Gen7 Contra)tor O?ners Consultants 'esi*n Contra)t 'esi*n Contra)t 'esi*n Contra)t O?ners 2it)!enDO?ner PR Mar<etin* O?nerD8e*al Gen7 Contra)tor 'esi*n Contra)t Cit: Cit: 'esi*n Contra)t PR Mar<etin* O?ners Me9ia Mar<etin* O?ners O?ners O?ners O?ners PR Mar<etin* 2it)!enDO?ner Gen7 Contra)tor O?ners 2it)!enDO?ner ;ine 'istri-utor PR Mar<etin*
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1inal Constru)tion Pun)! Out Restaurant ReBisions Emplo:ee Trainin* (P!ase +" ;ine Class =or Emplo:ees (P!ase +" Gran9 Openin* o= 1usion Restaurant 6(P Part: # 6(P Part: + ;e- Site , E-Mail Me9ia 8aun)! General Pu-li) Openin* 8aun)! .0-'a: Gran9 Openin* PRDMe9ia A9Bertisin* (P!ase +" @usiness , Mar<etin* Plan ReBie? @usiness , Mar<etin* Plan ReBie? 4p9ate @ro)!ure 'ire)t Mail A9Bertisin* (P!ase ." Eara Masquera9e Part: 'ire)t Mail Ne? Corporate A))ounts ($" A9Bertisin* (P!ase " A9Bertisin* (P!ase $" Eara Ne? FearJs Part: Totals
$D+#D+00$ $D+3D+00$ $D+3D+00$ $D+3D+00$ /D.D+00$ /D.D+00$ /D D+00$ $D#D+00$ /D$D+00$ $D#D+00$ /D#D+00$ 3D$D+00$ 0D+D+00$ 0D+D+00$ 0D#/D+00$ &D#D+00$ #0D.#D+00$ ##D#D+00$ &D#D+00$ ##D#$D+00$ #+D#$D+00$ #+D+0D+00$
$D+0D+00$ /D+D+00$ /D+D+00$ /D+D+00$ /D.D+00$ /D.D+00$ /D D+00$ /D$D+00$ /D$D+00$ /D$D+00$ /D# D+00$ 3D&D+00$ 0D/D+00$ 0D#.D+00$ 0D#/D+00$ &D#$D+00$ #0D.#D+00$ ##D#D+00$ ##D#D+00$ ##D#&D+00$ #+D.0D+00$ #D#D+00/
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contra)tor A AlexDPeter C!e=DPeter Peter AlexDPeter M7Eimmerman M7Eimmerman Alex AlexDPeter M7Eimmerman Alex AlexDPeter AlexDPeter Alex Alex M7Eimmerman M7Eimmerman Alex Ean9erDPeter M7Eimmerman M7Eimmerman M7Eimmerman
Gen7 Contra)tor O?ners 2it)!enDO?ner ;ine 'istri-utor O?ners PR Mar<etin* PR Mar<etin* Me9ia Mar<etin* O?ners PR Mar<etin* PR Mar<etin* O?ners O?ners Me9ia Mar<etin* Me9ia Mar<etin* PR Mar<etin* PR Mar<etin* Me9ia Mar<etin* O?ners PR Mar<etin* PR Mar<etin* PR Mar<etin*
>.+ Web lan #ummary Fara 7estaurant G Lounge will have a dedicated website. ,t will be the virtual business card and portfolio for the company, simple, contemporary and well designed. Dur site will offer our menus, prices, reviews and happenings at Fara. We will also have a monthly aparaHHi 7eview about what did happen at Fara to get new customers interested in our restaurant. Dur website will be used to try out new offers, starting with an on:line order feature for the #unday Market 'runch, and e6panding if the concept gains favor with our customers. A customer will be able to order a selection for pickup using a credit card. #elections will be based on our pre:packaged meals available during the #unday Market 'runch. .his is also a potential for customers needing catering. .he website will include email capabilities and online reservations and special events scheduling.
=.+ Management #ummary .he strength of our management staff positions us for success. We have assembled a team that embraces different disciplines, accomplished professionals with e6pertise in all areas of the business, including marketing and restaurant management. .he owners, Fander Nunte $Managing artner& and eter #mith $C6ecutive 1hef&, have considerable e6perience in the restaurant industry. ,n Year *, we will hire a Peneral Manager to handle the day:to:day 7estaurant management. .his will assist FaraIs 7estaurant G Lounge to grow even further.
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You canIt build investor confidence based on what you will do, but you can inspire confidence based on what you have done. Attached is the portfolio of past success. .his Fara Management team has deep roots in the restaurant segment, and have the practical e6perience to make this venture another great success. =.9 Management .eam Fara 7estaurant G Lounge, with more than K; years of e6perience between the key officers, understands the importance of a strong management team. .he strength of our management staff positions us for success. Bay to day operational management will be conducted by Ale6 Nunte and eter #mith, as hands on managers. .hey will advised and supported by their Advisory 'oard. 9ara5s Ad%isory Board #tephen Nollier of Nollier 1ollier G Loewenthal! 1orporate Attorney Uohn OatH of ##GP )inancial #ervices! 1 A 7obert #haefer of #hafer Nospitality #ervices! 7estaurant 1onsultant Mary Fimmerman of .he Fimmerman Proup! Media G ublic 7elations consultant
&wnership 1 )anagement .ogether, Ale6 Nunte and eter #mith bring over *+ years of e6perience in the restaurant industry to their new joint venture. Ale/ ='nte2 )anaging Partner $Dperations, Marketing, )inancial and 'usiness Bevelopment& Mr. Nunte brings to Fara an accomplished restaurant background, e6ceptional business acumen, and a lifetime passion for the restaurant e6perience. Ale6 has over 9= years of business management in the ,nformation .echnology industry. Like ,., successful ventures in the restaurant industry must balance capitaliHing on new trends with continual -uality assessment. Ale6Is understanding of day:to:day cash flow planning and staff management will be critical to FaraIs financial success. Mr. Nunte has a background in ,nternational 'usiness Management and 'usiness #tart:ups, and is certified in 7estaurant and Notel Management. As co:owner, Ale6 Nunte is responsible for overall direction and operational management. Mr. Nunte is a strong business leader responsible for strategic planning and continued growth of restaurant services and business development. ,n addition, Ale6 will be the management lead for all public relations, financial and investor services. -egrees, Certifications, and Professional Affiliations2 M'A in ,nternational 'usiness Management '.#. in 1omputer #cience 1ertified in 7estaurant G Notel Management from 7yerson Aniversity M $ roject Management rofessional& certification Member of the Midtown Alliance 'usiness partner member of the 5ational 7estaurant Association.
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Peter Smith2 )anaging Partner $C6ecutive 1hef and 7estaurant Dperations& Mr. #mith is an accomplished restaurateur, having owned several full:service restaurants. Mr. #mith is responsible for the concept and the daily operations management, with yearly sales targets of L= million. ,n addition, eter is the owner of 'auhaus 'ar and 5ightclub, and former owner of Myth 7estaurant, DuHeri, and Oapilyo 7estaurant, all financial and critical successes. Mr. #mith is also an international restaurant consultant for top international organiHations. Mr. #mithIs 1ontracting responsibilities for Fara included logistics, #ite and Lease 5egotiations, 1oncept Befinition, #tart:Ap and )inancial forecast, Menu and Dperations Management, as well as ,mplementation and Launch Management. With a degree in Cconomics and an accomplished career, Mr. #mith contributes the e6perience of his past successes, and is charged with leading the 7estaurant Dperations, #taff #election, Menu Befinition and .raining initiatives for Fara 7estaurant G Lounge. )anaging Partner ,esponsi(ilities ,n addition to the management of day to day operations, both managers, as principals within the company, will oversee menu development, purchasing, portioning, pricing and inventory control, including approval of all financial obligations of the company. .hey will plan, develop, and establish customer service policies and objectives, and write, e6plain, and enforce an employeeIs manual for all employee:related policies. 7esponsibilities for hiring and firing employees lie solely with the two operations managers, and any decisions in these areas will be made jointly. They will2 Manage working capital, including receivables, inventory, cash and marketable securities. erform financial forecasting, including capital budgeting, cash flow analysis, pro forma financial statements, and e6ternal financing re-uirements. repare financial analyses of operations for guiding management, including reports which outline the companyIs income, e6penses, and earnings. Birect preparation of budgets and financial forecasts and arrange for audits of companyIs accounts.
=.* ersonnel lan We believe the personnel plan is in good proportion to the siHe of the restaurant and projected revenues. .he staff will include 9J full:time employees and ; part:time employees, who will work a total of =2K manhours per week and generate an average monthly gross payroll of L*=,J+; for the first year in business. .he estimated gross annual payroll of LJ<<,2;; $including artner #alaries& is J=3 of total sales.
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Wage salaries for service personnel $waitstaff, busboys, bartenders& do not include anticipated tips. With average tipping rates for the Atlanta, Peorgia area, and our menu prices, service employees should average at least twice the minimum wage in any given shift. #killed waitresses and bartenders on weekends and evenings will make substantially more. >itchen2 .he C6ecutive 1hef will be assisted by! An Assistant 1hef from a national search $9&. A #ou chef with considerable e6perience in different restaurants $9&. 1ooks that work directly with eter or the sous chef $*&. rep cooksEdishwasher $*&. eople cleaning the restaurant $*&.
,esta'rant &perations2 Ale6 Nunte will manage the )inancial Management, 'ookkeeping, 7EMedia Advertising, and ,nvestor #ervices. Ale6 Nunte will also manage the daily 7estaurant Dperations. eter #mith will be the 7estaurant Manager. Ne will be the primary responsible for daily 7estaurant Dperations, taking care of Wait and 'ar #taff. eter will also take lead as the C6ecutive 1hef working with the Nead 1hef. .o help eter, he will have servers that will work as QcaptainsI $these people have e6perience in managing, waiting tables and bartending& and take care of service and make sure the restaurant is in e6cellent shape $*&. #ervers that work part time $K&. )ull:time bartender $9&. art:time bartender $9&. )ull:time busboy $*&. art:time busboy $9&.
Administrati%e Salaries 7Partners82 Fander Nunte! L K;,+++ per year eter #mith L J*,9>+ per year
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.able! ersonnel
Personnel Plan Fear # General Mana*er (Fear +K" PartnerDMana*er PartnerDAsst7 Mana*erDExe)7 C!e= 5ostess (1ull Time" 5ostess (Part Time" ;aitperson # ;aitperson + ;aitperson . ;aitperson ;aitperson $ ;aitperson / ;aitperson 3 ;aitperson 0 ;aitperson & ;aitD@arperson @arten9er # @arten9er + @us-o: # @us-o: + @us-o: . Assistant C!e= Sous C!e= Coo< # Coo< + Prep Coo<D'is!?as!er Prep Coo<D'is!?as!erDCleanin* 'is!?as!er # 'is!?as!er + Cleanin*D'is!?as!er Open Total People Total Payroll $0 $ 0%000 $.+%#/0 $+ %000 $#.%+00 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $#0% 0 $# % 00 $3%+00 $&%#+0 $##%3/0 $3%+00 $ % 00 $.+% 00 $+ %+ 0 $#0%&/0 $#+%+00 $#+%&/0 $0%/ 0 $$%300 $##%3/0 $0 +0 $.&&%$00 Fear + $0 $ 0%000 $.+%#/0 $+ %$00 $#.%$00 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $#0% 0 $# % 00 $3%$00 $&%#+0 $##%3/0 $3%+00 $ % 00 $.+% 00 $+ %+ 0 $#0%&/0 $#+%+00 $#+%&/0 $0%/ 0 $$%000 $##%3/0 $0 + $ 00%300 Fear . $+0%000 $ 0%000 $.+%#/0 $+$%000 $# %000 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $#0% 0 $# % 00 $3%$00 $&%#+0 $##%3/0 $3%+00 $ % 00 $.+% 00 $+ %+ 0 $#0%&/0 $#+%+00 $#+%&/0 $0%/ 0 $$%000 $##%000 $0 +$ $ +&%0+0 Fear $+0%$00 $ 0%000 $.+%#/0 $+$%$00 $# %.00 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $#0% 0 $# % 00 $3%$00 $&%#+0 $##%3/0 $3%+00 $ % 00 $.+% 00 $+ %+ 0 $#0%&/0 $#+%+00 $#+%&/0 $0%/ 0 $$%000 $##%000 $0 +$ $ .#%#+0 Fear $ $+&%000 $ 0%000 $.+%#/0 $+/%000 $# %000 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $$%/ 0 $#0% 0 $# % 00 $3%/00 $&%#+0 $##%3/0 $3%+00 $ % 00 $.+% 00 $+ %+ 0 $#0%&/0 $#+%+00 $#+%&/0 $0%/ 0 $$%000 $##%000 $0 +$ $ .+%3+0
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;.+ )inancial lan Fara 7estaurant G Lounge financial model is based on a business concept to T lan for the Worst, but Manage for the 'est.T We have approached the financial plan as follows! .he )irst Year projections anticipates a below average sales volume, below average seat turn, and above average foodEbeverage cost. .his position will help us ensure sufficient financial planning to accommodate a reasonable ramp:up period, and business success, also ensuring that we do not enter this venture under:capitaliHed.
)inancial ro )orma ,n addition to the L99+,+++ of owner investment and L9J+,+++ in grant monies, Fara is seeking LJ++,+++ in long:term loans and L*++,+++ in investment for renovations, furniture, kitchen e-uipment, li-uor license, food G restaurant supplies, legal fees, working capital, marketing and personnel. .he )inancial lan includes! ,mportant Assumptions 7isk Analysis G Mitigation lan #ales )orecast $2.J.9, above& 'reak Cven Analysis rofit and Loss #tatement 1ash )low #tatement 'alance #heet
;.9 ,nvestment Dpportunities .he Fara ,nvestment rogram allocates e-uity position of *+3 for a total of L*++,+++ in investor capital. .he ,nvestment structure is as follows! ,nvestment Dpportunity .otal ,nvestor )unding Dpportunity! Minimum ,nvestment Amount ,nvestment .erm $,nvestor #election& .otal C-uity Dffering $93 per L92,+++ ,nvestment& #tarting Year * #ilver! rojected Annual ,77 on ,nvestment of L92,+++ : LK<,+++ Pold! rojected Annual ,77 on ,nvestment of L2+,+++ : L<<,+++ latinum! rojected Annual ,77 on ,nvestment of L9++,+++ or more 9+3 993 9*3 W 7esiduals L*++,+++ L92,+++ J:2 Years *+3 Ma6
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,nvestor ayback rogram Cach ,nvestor will receive e-uity shares as a part owner, with a non:managerial interest in the 7estaurant. 'ased on financial estimates, the ma6imum annual ,77 is 9*3. Dver and above the interest and principal repayment, ,nvestors contributing L9++,+++ or more will receive residuals for the life of the business as a bonus incentive. As with our investors, our primary goal is to earn real profits and not Q aper rofitsI. As such we will focus on e6pediting returns to investors where possible. Dur e6isting payback structure will begin paying dividend every -uarter, starting in Year * of business operations. ,nvestors will receive -uarterly interest and annual principal reduction payments over the full term of the investment. ayback to )inancial and rivate investors will take priority over any profit shares to the owners, Ale6 Nunte and eter #mith. ;.* ,mportant Assumptions .he financial plan depends on important assumptions, most of which are reflected in the financial statements that follow. We have been cautious with our projections, and incorporate a mitigation for all manageable risks. .he key underlying assumptions are! .conomy #low Cconomic 7ecovery. We anticipate a slow:growth economy, recovering from an economic recession. B'siness Crowth
Ann'al Crowth ,ate Percentage. We anticipate modest growth over the coming years. .he financials account for the following growth projections! o o Year *! >3 Year J! 23 Year K! K3 Year 2! K3
Deekly Sales <ariance. #aturday will typically be our best sales for the week. .he sales volume for all other days is represented as a percentage relative to #aturday. .herefore our weekly sales will vary as follows! Monday! 223 .uesday! >+3 Wednesday! =23 .hursday! <23 )riday! <+3 #aturday! 9++3
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Seasonal Sales <ariance. ,n Atlanta, Dctober through the late season is the most productive sales period, while the summer months tend to be the slowest restaurant period. .his trend is reflected in the financials though a seasonal variance as follows $%here October is targeted to be our &ost success"ul sales &onth&! Uune! =+3 Uuly! =23 August! ;+3 #eptember! ;23 Dctober! 9++3 5ovember! <23 Becember! <23 Uanuary! ;23 )ebruary! <23 March! ;23 April! <+3 May! <+3
Ind'stry 1 Start"0p 6iscal Fear"1 ,amp"'p. Dur e6perience in the industry confirms a longer ramp:up stage for restaurants over other retailEservice businesses. Dur Annual #ales Prowth is based on attaining the following seating capacity percentage per dining period! Year 9! After:Nours X 2J3, Lunch X =+3, Binner X ;;3 Year *! After:Nours X =+3, Lunch X ;*3, Binner X 9++3 $implied wait period& Year J! After:Nours X ;+3, Lunch X ;=3, Binner X 9++3 $implied wait period&
Si/")onth Start"0p Stage. As a new restaurant entry to the Midtown market, the ramp:up in customer draw is e6pected to e6tend over > months. .his is reflected in a higher than average monthly sales variance shown as follows $Worst:case E C6pected:case&! Month 9! J*3 E 293 Month *! K93 E 2;3 Month J! 2*3 E >>3 Month K! >K3 E =23 Month 2! ;+3 E <+3 Month >! <+3 E <*3
)arket Analysis findings are static. We assume that there are no unforeseen changes in findings outlined in the Market Analysis.
Pricing 1 Cost Control 1ompetitive ricing Model. 7evenue calculations are based upon competitive price comparisons and established menu values in the current marketplace. .he following are baseline assumptions on Average 1heck .otals, and Average #eat .urns! Baily average for lunch spending is L9+.2+ per person, dinner at L*=.2+ per person@ and L9=.2+ per person for After:Nours dining $All check totals include 'everages, but not 'ar&. #eat .urn averages are modestly estimated at! Year 9! After:Nours X +.=, Lunch X 9.+, Binner X 9.+ Year *! After:Nours X +.=, Lunch X 9.+, Binner X 9.+
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Year J! After:Nours X 9.+, Lunch X 9.+, Binner X 9.*2
Cost Control. 1ost of goods sold have been calculated as a percentage of sales and will be monitored on a daily basis in order to keep 1ost of )ood within the range of J9 : JJ3, 'ar 1osts within *; : J93, and 1ost of 'everages $5on Alcohol& below <3. With a focus on 1ost 1ontrol, we anticipate > months to fine tune the restaurant operations and manage our costs within the defined tolerance range. In%entory t'rno%er and Acco'nts Paya(le. Accounts receivable turnover is calculated to be + days, as payment is rendered with service. ,nventory is turned on a = day cycle as inventory is used daily within all categories, and accounts payable are projected to be J+ days. ;.*.9 7isk AnalysisEMitigation 1. =ow do we allow an ade*'ate start'p period and capital to la'nch the concept and grow o'r c'stomer (ase in a competiti%e sectorG Dur financial plan is budgeted to support the Worst:1ase business scenario. We addressed the financial risk as follows! We looked at our monthly break:even. We calculated worst:case monthly financial shortfall based on the ramp:up sales percentages outlined in our financial assumptions. We budgeted operational shortfall in an operational contingency budget that we will utiliHe if the need arises.
#. =ow do we ens're we ha%e addressed all reso'rce gaps, and ha%e the right ind'stry knowledgeG Dwners Ale6 Nunte and eter #mith have a combined *+ years of 7estaurant Management, Dperations and 'usiness Management C6perience. .he )inancial lan incorporates a budget for an Atlanta 7estaurant 1onsulting group. .heir services are budgeted for the business start:up analysis, rollout, and on retainer for K months of business operations. .he selected firm has e6perience with over =* 7estaurant launches, specialiHing in the Atlanta Market. We will be recruiting a seasoned chef $national search& whose style is in accord with the 7estaurant concept and our market segment. We will be offering an e-uity interest to our select 1hef to maintain the industry knowledge. Dur Accounting service will be contracted to a firm specialiHing in 7estaurant accounting. ;. The c'rrent .conomic slowdown and reco%ery state was a key consideration in o'r resta'rant concept. =ow do we manage a s'ccessf'l resta'rant in c'rrent market conditionsG Dur original effort was to open a restaurant twice the proposed siHe. As we are in the midst of an economic recovery, we have scaled back the siHe to reduce business overhead, startup re-uirements, and business operating capital.
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Another mitigation has been our overall 7estaurant concept. We have the menu priced at a mid:tier level with no entrRe over L*+. ,n addition, we have an e6tended .apas and AppetiHer selection priced between LJ.2+ : L<.2+, allowing budget dining in a distinguished restaurant. ?. =ow do we confirm that o'r 6'nding ,e*'irement is s'fficientG eter #mith has an e6tensive background in restaurant startup. Ne is currently an ,nternational 1onsultant for various restaurant ventures, and we will use his e6pertise in past projects as a comparative basis. We have leveraged our membership with the 5ational 7estaurant Association to look at industry averages for this market segment for 7estaurant startup and Dperations. Additionally, we included a contingency buffer in the financial estimates to account for any potential cost variance. We have worked with our 7estaurant 1onsulting firm to validate our cost estimates to their industry knowledge. !. =ow do we know we ha%e selected the right location for this conceptG Again we will draw on the 1onsulting group that has the e6pertise in site selection and lease negotiation. ,n all, there are no guarantees with location, but we took a very objective approach with our concept. ,nstead of going in with a predefined business concept, we let the Market Analysis define the need. 'ased on the results, the Fara 7estaurant concept was formed specific to Midtown Atlanta. #ite selection was based on space, visibility, and functionality@ the city grant award confirmed our decision. H. Dhat if there is an additional need for B'siness Capital after the ,esta'rant has e/ha'sted its H"month ('fferG Dur intent is to be a self:sufficient business far in advance of the >:month probation period. 'ut as we are considering all contingencies, we have looked at this risk. We have accounted for an operational contingency budget that will be used to supplement any slow periods. Dur ne6t step would be to approach our private investors for capital by e6tending their return on investment. We would also look to the partnersI capital reserves as another source of funds. .able! Peneral Assumptions
General Assumptions Fear # Plan Mont! Current (nterest Rate 8on*-term (nterest Rate Tax Rate Other # /700G 3700G .0700G 0 Fear + + /700G 3700G .0700G 0 Fear . . /700G 3700G .0700G 0 Fear /700G 3700G .0700G 0 Fear $ $ /700G 3700G .0700G 0
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;.J rofit and Loss #tatement .he most important assumption in the rojected rofit and Loss statement is the gross margin. We show an adjustment increase in Year * as we e6it our start:up phase of the business and move into our e6pected annual sales forecast. .his transition shows the restaurant managing through its start:up period, and gaining efficiency and customer loyalty. ,n summary, the restaurant will develop its customer base and reputation and the growth will pick up more rapidly towards the second and third years of business. Month:by:month assumptions for rofit and Loss are included in the appendices.
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1hart! rofit Monthly
1hart! rofit Yearly
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1hart! Pross Margin Monthly
1hart! Pross Margin Yearly
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.able! rofit and Loss
Pro Forma Profit and Loss Fear # Sales 'ire)t Cost o= Sales Ot!er Total Cost o= Sales Gross Mar*in Gross Mar*in G $#%03.%3/& $.3#% #/ $0 $.3#% #/ $30+%.$. /$7 #G Fear + $#%+##%000 $.&0% 03 $0 $.&0% 03 $0#+%/0# /37#0G Fear . $#%+3&%+0 $ 0/%&3/ $0 $ 0/%&3/ $03+%++0 /07#&G Fear $#%. #%+/0 $ #$%+3/ $0 $ #$%+3/ $&+$%&0 /&70 G Fear $ $#% 0/%/30 $ +.%$&3 $0 $ +.%$&3 $&0.%03+ /&70&G
Expenses Pa:roll Mar<etin*DPromotion 'epre)iation 8ease9 Equipment A))ountin*DPa:roll Pro)essin* 8e*al Retainer 1ees @usiness 8i)enses , Permits Cre9it Car9 Expense @an< 1ees Musi) , Entertainment Trainin* D Emplo:ee Retention Pro*rams Repairs , Maintenan)e 4tilit: SerBi)es (GasDEle)tri)D;aterDSe?er" Telep!oneDCommuni)ation Expense (nsuran)eC 1ireDT!e=tD8ia-ilit:D8iquorDPro9u)t Restaurant O))upan): Cost (8ease" Pa:roll Taxes (1(CAD14TADS4TA" , Emplo:ee @ene=its ExterminatorDTras! RemoBal 'is!?areD4ni=ormsDCleanin* SuppliesD'e)or Printin*DPaperDPosta*eDSu-s)riptions 1a)ilit: (Exterior Cleanin*DGrease TrapD5oo9D;in9o?s%et)7" R,' Meals General @usiness Comps O?ner Comps Ot!er Expenses (ComAreaMaint% et)7" Total Operatin* Expenses Pro=it @e=ore (nterest an9 Taxes E@(T'A (nterest Expense Taxes (n)urre9 Net Pro=it Net Profit/Sales $.&&%$00 $#0%/$/ $/%$00 $#+%000 $/%/00 $+% 00 $/%000 $#0%$3/ $#%+00 $.%3 $0 $&%000 $+ %&&/ $#%000 $+0% 00 $3$%000 $0 $ %000 $##%3/0 $&%#$/ $.%... $+%+00 $#+% 00 $+%#+ $ %+00 $/$/% .. $ $%&+0 $$+% +0 $#&%#0& $0%0+0 $#0%3#+ #73 G $ 00%300 $++%000 $/%$00 $#+%000 $/%/00 $+% 00 $/%000 $#&%&0. $#%+00 $.%3 $$%000 $&%000 $+/% &/ $#%000 $+#%/+ $33%+$0 $0 $ %000 $#+% // $&%$00 $.%/ 0 $+% 00 $++%0$0 $+%#+ $ %+00 $/0 %.3+ $#+0%.0& $#. %00& $#$%&0 $..%/&0 $30%/+0 /7 &G $ +&%0+0 $+$%000 $/%$00 $#+%000 $/%/00 $+% 00 $/%000 $+#%#03 $#%+00 $.%3 $/%000 $&%000 $+3%0+# $#%000 $++%30$ $3&%$/0 $0 $ %000 $#.%00& $&%$00 $.%/ 0 $+% 00 $+.%#+$ $+%#+ $ %+00 $3+ %#$0 $# 0%030 $#$ %$30 $#+%/ 0 $ 0%/+& $& %00# 37 #G $ .#%#+0 $#$%000 $/%$00 $#+%000 $/%/00 $+% 00 $/%000 $++%#.# $#%+00 $.%3 $/%000 $&%000 $+0%&.. $#%000 $+.%/#. $0#%&$$ $0 $ %000 $#.%/#+ $&%$00 $.%/ 0 $+% 00 $+.%#+$ $+%#+ $ %+00 $3+#% # $+0 %$3# $+##%03# $&%+&/ $$0%$0+ $#./%/&+ #07#&G $ .+%3+0 $#$%000 $/%$00 $#+%000 $/%/00 $+% 00 $/%000 $+.%+#0 $#%+00 $.%3 $/%000 $&%000 $.0%0&# $#%000 $+ %$$0 $0 % #. $0 $ %000 $# %#$3 $&%$00 $.%/ 0 $+% 00 $+.%#+$ $+%#+ $ %+00 $3+&%#&0 $+$.%03$ $+/0%.3$ $$%&$+ $3 %.33 $#3.%$ / #+7. G
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;.K 'reak:even Analysis )or our )irst Year 'reak:Cven Analysis, we have an average running fi6ed costs of L>+,*J+ per month which includes our full payroll, rent, and utilities, and an estimation of other running costs. With direct cost of goods $inventory, in this plan& at J23 of sales, our monthly break: even point is L<*,+;9. We will surpass our break:even point in Dctober of our first year. As we e6it the start:up phase of the business and focus on cost control, we will drive the 1ost of Poods #old $1DP#& down, dropping our break:even value, and increasing our Pross Margin. .able! 'reak:even Analysis
Break-even Analysis Mont!l: ReBenue @rea<-eBen AssumptionsC ABera*e Per)ent 6aria-le Cost Estimated onthly Fi!ed Cost .$G $$ %30. $0.%/.0
1hart! 'reak:even Analysis
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;.2 1ash )low #tatement .he cash flow depends on assumptions for inventory turnover and payment days. We have no sales on credit, so our cash flow does not track accounts receivable. Dur projected same:day collection is critical, and is reasonable and customary in the restaurant industry. We do not e6pect to need any additional financial support, even when we reach the less profitable months, as the downturns are incorporated into the monthly revenue variance figures. Month:by:month assumptions for projected cash flow are included in the appendices.
1hart! 1ash
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.able! 1ash )low
Pro Forma Cash Flo Fear # Cas! Re)eiBe9 Fear + Fear . Fear Fear $
Cas! =rom Operations Cas! Sales Su-total Cas! =rom Operations A99itional Cas! Re)eiBe9 Sales Tax% 6AT% 5STDGST Re)eiBe9 Ne? Current @orro?in* Ne? Ot!er 8ia-ilities (interest-=ree" Ne? 8on*-term 8ia-ilities Sales o= Ot!er Current Assets Sales o= 8on*-term Assets Ne? (nBestment Re)eiBe9 Su-total Cas! Re)eiBe9 Expen9itures Expen9itures =rom Operations Cas! Spen9in* @ill Pa:ments Su-total Spent on Operations A99itional Cas! Spent Sales Tax% 6AT% 5STDGST Pai9 Out Prin)ipal Repa:ment o= Current @orro?in* Ot!er 8ia-ilities Prin)ipal Repa:ment 8on*-term 8ia-ilities Prin)ipal Repa:ment Pur)!ase Ot!er Current Assets Pur)!ase 8on*-term Assets 'iBi9en9s Su-total Cas! Spent Net Cas! 1lo? Cash "alance $0 $0 $0 $ 3%33+ $0 $0 $0 $#%0 0% 3 $+$%+&$ $#3+%+3/ $0 $0 $0 $ 3%33+ $0 $0 $+0%000 $#%#&.%$ & $#3%$.& $#0&%0#$ $0 $0 $0 $ 3%33+ $0 $0 $#0%000 $#%+.+%&+ $ /%+00 $+./%0&$ $0 $0 $0 $ 3%33+ $0 $0 $#0%000 $#%+$ %03/ $0/%.0 $.++% 3& $0 $0 $0 $ 3%33+ $0 $0 $#$%000 $#%+03%& + $##0%3+3 $ #%+0/ $.&&%$00 $/0#%## $#%000%30+ $ 00%300 $3+ %&0& $#%#+$%333 $ +&%0+0 $3 $%.+ $#%#3$%#$+ $ .#%#+0 $3/$%&3/ $#%#&3%#0 $ .+%3+0 $3&+% + $#%++$%#30 $0 $0 $0 $0 $0 $0 $0 $#%03.%3/& Fear # $0 $0 $0 $0 $0 $0 $0 $#%+##%000 Fear + $0 $0 $0 $0 $0 $0 $0 $#%+3&%+0 Fear . $0 $0 $0 $0 $0 $0 $0 $#%. #%+/0 Fear $0 $0 $0 $0 $0 $0 $0 $#% 0/%/30 Fear $ $#%03.%3/& $#%03.%3/& $#%+##%000 $#%+##%000 $#%+3&%+0 $#%+3&%+0 $#%. #%+/0 $#%. #%+/0 $#% 0/%/30 $#% 0/%/30
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;.> 'alance #heet #tatement .he projected 'alance #heet is -uite solid. We do not anticipate difficulty meeting our debt obligations based on achieving the specific goals outlined in this plan. Dn a linear projection, Fara 7estaurant G Lounge has a positive 5et Worth beginning in Year J. .able! 'alance #heet
Pro Forma Balance Sheet Fear # Assets Fear + Fear . Fear Fear $
Current Assets Cas! (nBentor: Ot!er Current Assets Total Current Assets 8on*-term Assets 8on*-term Assets A))umulate9 'epre)iation Total 8on*-term Assets Total Assets 8ia-ilities an9 Capital Current 8ia-ilities A))ounts Pa:a-le Current @orro?in* Ot!er Current 8ia-ilities Su-total Current 8ia-ilities 8on*-term 8ia-ilities Total 8ia-ilities Pai9-in Capital Retaine9 Earnin*s Earnin*s Total Capital Total 8ia-ilities an9 Capital Net #orth $$0%#& $0 $0 $$0%#& $+$+%++0 $.#0% ++ $ 0%000 ($ +3%+0&" $#0%3#+ $.#%$0 $. #%&+/ $.#%$0 $$&%3#. $0 $0 $$&%3#. $+0 % $/ $+/ %#/& $ 0%000 ($ +0% &/" $30%/+0 $&0%#.# $.$ %.00 $&0%#.# $/#%.&0 $0 $0 $/#%.&0 $#$/%/0 $+#0%00+ $ 0%000 ($.$&%0/&" $& %00# $#3 %&.+ $.&.%0# $#3 %&.+ $/.%0&3 $0 $0 $/.%0&3 $#00%&#+ $#3+%00& $ 0%000 ($+3$%0/0" $#./%/&+ $.0#%/+$ $ 3.%/.. $.0#%/+$ $/$%.#$ $0 $0 $/$%.#$ $/#%# 0 $#+/% $$ $ 0%000 ($#$.%.3$" $#3.%$ / $ /0%#3# $$0/%/+$ $ /0%#3# $/$%000 $/%$00 $$0%$00 $. #%&+/ Fear # $/$%000 $#.%000 $$+%000 $.$ %.00 Fear + $/$%000 $#&%$00 $ $%$00 $.&.%0# Fear . $/$%000 $+/%000 $.&%000 $ 3.%/.. Fear $/$%000 $.+%$00 $.+%$00 $$0/%/+$ Fear $ $#3+%+3/ $.3%0.& $3.%.## $+0.% +/ $#0&%0#$ $.&%#3$ $3.%.## $.0+%.00 $+./%0&$ $.0%#0& $3.%.## $. 3%$# $.++% 3& $.0%0 . $3.%.## $ . %/.. $ #%+0/ $.&%/00 $3.%.## $$$ %#+$
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;.= 'usiness 7atios 'usiness ratios for the years of this plan are shown below. ,ndustry profile ratios based on the #tandard ,ndustrial 1lassification $#,1& code 2;9*, Cthnic )ood 7estaurants, are shown for comparison. .he following table outlines some of the more important ratios from the Cthnic )ood 7estaurants industry. .he final column, ,ndustry rofile, details specific ratios based on the industry as it is classified by the #tandard ,ndustry 1lassification $#,1& code, 2;9*.+9. .able! 7atios
!atio Analysis Fear # Sales Gro?t! Per)ent o= Total Assets (nBentor: Ot!er Current Assets Total Current Assets 8on*-term Assets Total Assets Current 8ia-ilities 8on*-term 8ia-ilities Total 8ia-ilities Net ;ort! Per)ent o= Sales Sales Gross Mar*in Sellin*% General , A9ministratiBe Expenses A9Bertisin* Expenses Pro=it @e=ore (nterest an9 Taxes Main Ratios Current >ui)< Total 'e-t to Total Assets Pre-tax Return on Net ;ort! Pre-tax Return on Assets A99itional Ratios Net Pro=it Mar*in Return on Equit: A)tiBit: Ratios (nBentor: TurnoBer A))ounts Pa:a-le TurnoBer Pa:ment 'a:s Total Asset TurnoBer 'e-t Ratios #07&# ##7.. +3 .7# #07.$ #+7#3 .0 .7 + #07$. #+7#3 .0 .7+$ #073& #+7#3 .0 +70. #0700 #+7#3 +& +7 0 n7a n7a n7a n7a 703 7++ &073&G 0 70$G 370+G Fear # #73 G $&7 0G $70/ 7 # 3 7$/G #+ 7/+G .#730G Fear + /7 &G 037+ G $7// $70 $$7 &G 337 +G . 7 /G Fear . 37 #G $ 7#&G /70& /7+3 ./7.+G / 73 G #7+.G Fear #07#&G $7.+G 07 0 3700 +#7$/G $.700G +7+/G Fear $ #+7. G .373#G n7a n7a #7+/ 0703 .7+3G $ 7.0G 37#3G #00700G /$7 #G /+70&G #73 G 7+0G #00700G /37#0G $&7.&G +703G #07$&G #00700G /07#&G $&7&$G +700G ##7$0G #00700G /&70 G $07. G 0700G #$7+$G #00700G /&70&G $37.#G 0700G #070$G #00700G $&7.#G .&70&G +73$G #7$&G ##703G +#7 G 0+70&G #37##G #00700G #370+G 3.733G &073&G &7+#G ##70/G +07/&G 0$7.+G # 7/0G #00700G #/70$G $373#G 3 7$/G +$7 G &730G #07/$G 007 +G ##7$0G #00700G #$7/+G .&703G $$7 &G 7$#G 07+0G #$7 0G &#733G 07+.G #00700G #.7.+G +.700G ./7.+G /.7/0G /73$G #+7$0G & 7 /G $7$ G #00700G ##7#.G #07 +G +#7$/G 307 G .7&0G +07.&G .37/0G /+7.+G #00700G #&7#3G +&7+#G 07.0G $#7/+G n7a7 Fear + #+73&G Fear . $7/+G Fear 70$G Fear $ 700G (n9ustr: Pro=ile /7&/G
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'e-t to Net ;ort! Current 8ia-7 to 8ia-7 8iqui9it: Ratios Net ;or<in* Capital (nterest CoBera*e A99itional Ratios Assets to Sales Current 'e-tDTotal Assets A)i9 Test SalesDNet ;ort! Di$idend Payout
&70$ 07#&
+7&. 07+.
#7+$ 07+0
07$3 07.3
07+3 07$+
n7a n7a
$++$%+.+ +7.&
$+ +%$03 070.
$+0/%##/ ##73#
$.3#%$.3 ++70#
$ 00%0#0 +7/$
n7a n7a
07.+ #3G 7++ . 700 0700
07+& #3G 7 # #.7 07+$
07.# #/G $70 37.# 07##
07.$ #.G /7+3 7 $ 0703
07 + ##G 3700 .70/ 070&
n7a n7a n7a n7a n7a
;.; C6pansion, ayback G C6it #trategy ,n addressing this -uestion we look at the C6it #trategy as a definition of our business vision and goals, as well as a contingency in the event the business is unsuccessful. We have addressed this -uestion at several levels! C6pansion as a 'usiness Poal We have set multiple financial goals to grow the success of the Fara concept, and compound the profit return for Fara ,nvestors. 9. C6pansion $Dption 9&! Dur overall goal to maintain Fara as a uni-ue and eclectic concept. 'ased on projections, the business has captured market share by the end of the first year. ,n addition Year * brings an increased sales and profit margin to sustain the addition of a full:time Peneral Manager. 'y second -uarter of Year *, the owners will look to launch a second restaurant concept. .his is not a chain, but another uni-ue restaurant concept with strong growth potential. C6pansion will be considered with our )inancial backers and ,nvestor partners. *. C6pansion $Dption *&! .hroughout our business plan we have stayed focus that Fara would be successful as a larger venue, with greater sales capacity and revenue potential. Dur objective with the site selection and lease negotiation is to have the opportunity to e6pand the restaurant as a logical growth and profit plan. J. rivate #ale! We are in the business of making money. At the close of Year J, we see Fara as meeting ;+.K3 of its optimum sales potential with the current seating and space allocation. At this stage the business debt is reduced, profit margins are increasing, and Fara has established market share. We will look at the private sale of the majority interest via A& Leveraged 'uyout, or '& A larger 7estaurant consortium. ,n both cases, our interest is in delivering healthy profits to our ,nvestors and )inancial backers. #ales and profit margins will be based on the restaurant valuation in Year J.
K. )inancial #olvency! .he financial projections indicate that e6it will be achievable over J years for the operating capital line of credit. Ander a realistic scenario the 1ompany should have over L=+,+++ in cash in the bank after income ta6es the second year. .he entire financial debt would be retired by Year =.
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C6it #trategy to 7etire the 'usiness We at Fara are committed to our concept and its viability. We step into this venture with confidence and the success of our respective prior business efforts. 5o one attempts a business anticipating failure, however sometimes ventures do not fulfill their promise. ,n the event that our venture cannot achieve profitability and retire the encumbrances, we will first attempt to sell the operation and use the proceeds to clear all outstanding balances. ,f we are unable to sell the operation for sufficient proceeds we will forced to default whereby the #'A loan will be in senior standing. Any further outstanding balances will be borne by the investors on a weighted percentage basis of the total amounts due.
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.able! #ales )orecast
Sales Forecast Month 1 Sales Total Sales Food Total Sales Bar/Bevera es !ther Total Sales 0% 0% 0% $44,579 $11,499 $0 $56,078 $50,948 $13,141 $0 $64,089 $57,975 $14,954 $0 $72,929 $65,441 $16,880 $0 $82,321 $79,057 $20,392 $0 $99,449 $81,253 $20,958 $0 $102,211 $83,449 $21,524 $0 $104,973 $74,665 $19,259 $0 $93,924 $83,449 $21,524 $0 $104,973 $74,665 $19,259 $0 $93,924 $79,057 $20,392 $0 $99,449 $79,057 $20,392 $0 $99,449 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
"#re$t %ost o& Sales Total %ost o& Sales' Food Total %ost o& Sales' Bar/Bevera es !ther Subtotal Direct Cost of Sales
Month 1 $15,603 $3,795 $0 $19,397
Month 2 $17,832 $4,337 $0 $22,168
Month 3 $20,291 $4,935 $0 $25,226
Month 4 $22,904 $5,570 $0 $28,475
Month 5 $27,670 $6,729 $0 $34,399
Month 6 $28,439 $6,916 $0 $35,355
Month 7 $29,207 $7,103 $0 $36,310
Month 8 $26,133 $6,355 $0 $32,488
Month 9 $29,207 $7,103 $0 $36,310
Month 10 $26,133 $6,355 $0 $32,488
Month 11 $27,670 $6,729 $0 $34,399
Month 12 $27,670 $6,729 $0 $34,399
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.able! Peneral Assumptions
General Assumptions Month 1 (lan Month %)rrent *nterest +ate -on .ter/ *nterest +ate Ta0 +ate Other 1 6,00% 7,00% 30,00% 0 Month 2 2 6,00% 7,00% 30,00% 0 Month 3 3 6,00% 7,00% 30,00% 0 Month 4 4 6,00% 7,00% 30,00% 0 Month 5 5 6,00% 7,00% 30,00% 0 Month 6 6 6,00% 7,00% 30,00% 0 Month 7 7 6,00% 7,00% 30,00% 0 Month 8 8 6,00% 7,00% 30,00% 0 Month 9 9 6,00% 7,00% 30,00% 0 Month 10 10 6,00% 7,00% 30,00% 0 Month 11 11 6,00% 7,00% 30,00% 0 Month 12 12 6,00% 7,00% 30,00% 0
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.able! rofit and Loss
Pro Forma Profit and Loss Month 1 Sales "#re$t %ost o& Sales !ther Total %ost o& Sales $56,078 $19,397 $0 $19,397 Month 2 $64,089 $22,168 $0 $22,168 Month 3 $72,929 $25,226 $0 $25,226 Month 4 $82,321 $28,475 $0 $28,475 Month 5 $99,449 $34,399 $0 $34,399 Month 6 $102,211 $35,355 $0 $35,355 Month 7 $104,973 $36,310 $0 $36,310 Month 8 $93,924 $32,488 $0 $32,488 Month 9 $104,973 $36,310 $0 $36,310 Month 10 $93,924 $32,488 $0 $32,488 Month 11 $99,449 $34,399 $0 $34,399 Month 12 $99,449 $34,399 $0 $34,399
1ross Mar #n 1ross Mar #n %
$36,681 65,41%
$41,921 65,41%
$47,703 65,41%
$53,846 65,41%
$65,050 65,41%
$66,856 65,41%
$68,663 65,41%
$61,436 65,41%
$68,663 65,41%
$61,436 65,41%
$65,050 65,41%
$65,050 65,41%
203enses (a4roll Mar5et#n /(ro/ot#on "e3re$#at#on -eased 26)#3/ent 7$$o)nt#n /(a4roll (ro$ess#n -e al +eta#ner Fees B)s#ness -#$enses 8 (er/#ts %red#t %ard 203ense Ban5 Fees M)s#$ 8 2nterta#n/ent Tra#n#n / 2/3lo4ee +etent#on (ro ra/s +e3a#rs 8 Ma#ntenan$e 9t#l#t4 Serv#$es :1as/2le$tr#$/;ater/Se<er= Tele3hone/%o//)n#$at#on 203ense *ns)ran$e' F#re/The&t/-#a>#l#t4/-#6)or/(rod)$t +esta)rant !$$)3an$4 %ost :-ease= (a4roll Ta0es :F*%7/F9T7/S9T7= 8 2/3lo4ee Bene&#ts 20ter/#nator/Trash +e/oval "#sh<are/9n#&or/s/%lean#n S)33l#es/"e$or 17% $33,299 $1,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $1,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $1,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $6,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $0 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $1,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $2,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $1,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $0 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $0 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $0 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980 $33,299 $2,457 $542 $1,000 $550 $200 $500 $1,548 $100 $312 $0 $750 $2,083 $150 $1,700 $6,250 $0 $400 $980
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(r#nt#n /(a3er/(osta e/S)>s$r#3t#ons Fa$#l#t4 :20ter#or %lean#n /1rease Tra3/?ood/;#ndo<s,et$,= +8" Meals 1eneral B)s#ness %o/3s !<ner %o/3s !ther 203enses :%o/7reaMa#nt, et$,= 15% $763 $0 $0 $0 $177 $350 $763 $303 $200 $0 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350 $763 $303 $200 $1,240 $177 $350
Total !3erat#n 203enses
$53,111
$53,614
$54,854
$59,854
$53,397
$54,854
$55,854
$54,854
$53,397
$53,397
$53,397
$55,854
(ro&#t Be&ore *nterest and Ta0es 2B*T"7 *nterest 203ense Ta0es *n$)rred
:$16,430= :$15,888= $1,727 :$5,447=
:$11,693= :$11,151= $1,704 :$4,019=
:$7,151= :$6,609= $1,680 :$2,649=
:$6,007= :$5,466= $1,657 :$2,299=
$11,653 $12,195 $1,634 $3,006
$12,003 $12,544 $1,611 $3,118
$12,809 $13,351 $1,587 $3,367
$6,582 $7,124 $1,564 $1,505
$15,266 $15,808 $1,541 $4,118
$8,039 $8,581 $1,518 $1,956
$11,653 $12,195 $1,495 $3,048
$9,196 $9,738 $1,471 $2,317
@et (ro&#t Net Profit/Sales
:$12,710= .22,66%
:$9,378= .14,63%
:$6,182= .8,48%
:$5,365= .6,52%
$7,013 7,05%
$7,274 7,12%
$7,855 7,48%
$3,513 3,74%
$9,608 9,15%
$4,565 4,86%
$7,111 7,15%
$5,407 5,44%
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.able! 1ash )low
Pro Forma Cash Flow Month 1 %ash +e$e#ved Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
%ash &ro/ !3erat#ons %ash Sales S)>total %ash &ro/ !3erat#ons $56,078 $56,078 $64,089 $64,089 $72,929 $72,929 $82,321 $82,321 $99,449 $99,449 $102,211 $102,211 $104,973 $104,973 $93,924 $93,924 $104,973 $104,973 $93,924 $93,924 $99,449 $99,449 $99,449 $99,449
7dd#t#onal %ash +e$e#ved Sales Ta0, A7T, ?ST/1ST +e$e#ved @e< %)rrent Borro<#n @e< !ther -#a>#l#t#es :#nterest.&ree= @e< -on .ter/ -#a>#l#t#es Sales o& !ther %)rrent 7ssets Sales o& -on .ter/ 7ssets @e< *nvest/ent +e$e#ved S)>total %ash +e$e#ved 0,00% $0 $0 $0 $0 $0 $0 $0 $56,078 $0 $0 $0 $0 $0 $0 $0 $64,089 $0 $0 $0 $0 $0 $0 $0 $72,929 $0 $0 $0 $0 $0 $0 $0 $82,321 $0 $0 $0 $0 $0 $0 $0 $99,449 $0 $0 $0 $0 $0 $0 $0 $102,211 $0 $0 $0 $0 $0 $0 $0 $104,973 $0 $0 $0 $0 $0 $0 $0 $93,924 $0 $0 $0 $0 $0 $0 $0 $104,973 $0 $0 $0 $0 $0 $0 $0 $93,924 $0 $0 $0 $0 $0 $0 $0 $99,449 $0 $0 $0 $0 $0 $0 $0 $99,449
203end#t)res
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
203end#t)res &ro/ !3erat#ons %ash S3end#n B#ll (a4/ents S)>total S3ent on !3erat#ons $33,299 $959 $34,258 $33,299 $29,247 $62,546 $33,299 $42,873 $76,172 $33,299 $48,926 $82,225 $33,299 $57,675 $90,974 $33,299 $65,013 $98,312 $33,299 $62,220 $95,519 $33,299 $63,929 $97,228 $33,299 $52,812 $86,111 $33,299 $65,248 $98,547 $33,299 $51,624 $84,923 $33,299 $60,586 $93,885
7dd#t#onal %ash S3ent Sales Ta0, A7T, ?ST/1ST (a#d !)t (r#n$#3al +e3a4/ent o& %)rrent Borro<#n !ther -#a>#l#t#es (r#n$#3al +e3a4/ent -on .ter/ -#a>#l#t#es (r#n$#3al +e3a4/ent ()r$hase !ther %)rrent 7ssets ()r$hase -on .ter/ 7ssets "#v#dends $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0 $0 $0 $0 $3,981 $0 $0 $0
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S)>total %ash S3ent $38,239 $66,527 $80,153 $86,206 $94,955 $102,293 $99,500 $101,209 $90,092 $102,528 $88,904 $97,866
@et %ash Flo< Cash Balance
$17,839 $164,819
:$2,438= $162,381
:$7,224= $155,157
:$3,885= $151,272
$4,494 $155,765
:$82= $155,683
$5,473 $161,157
:$7,285= $153,871
$14,881 $168,752
:$8,604= $160,148
$10,545 $170,693
$1,583 $172,276
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.able! 'alance #heet
Pro Forma Balance Sheet Month 1 7ssets Start#n Balan$es Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
%)rrent 7ssets %ash *nventor4 !ther %)rrent 7ssets Total %)rrent 7ssets -on .ter/ 7ssets -on .ter/ 7ssets 7$$)/)lated "e3re$#at#on Total -on .ter/ 7ssets Total 7ssets -#a>#l#t#es and %a3#tal $65,000 $0 $65,000 $312,791 $65,000 $542 $64,458 $323,925 Month 1 $65,000 $1,083 $63,917 $323,994 Month 2 $65,000 $1,625 $63,375 $319,592 Month 3 $65,000 $2,167 $62,833 $318,738 Month 4 $65,000 $2,708 $62,292 $329,207 Month 5 $65,000 $3,250 $61,750 $329,634 Month 6 $65,000 $3,792 $61,208 $335,617 Month 7 $65,000 $4,333 $60,667 $323,586 Month 8 $65,000 $4,875 $60,125 $342,129 Month 9 $65,000 $5,417 $59,583 $328,779 Month 10 $65,000 $5,958 $59,042 $340,885 Month 11 $65,000 $6,500 $58,500 $341,926 Month 12 $146,980 $27,500 $73,311 $247,791 $164,819 $21,337 $73,311 $259,467 $162,381 $24,385 $73,311 $260,077 $155,157 $27,749 $73,311 $256,217 $151,272 $31,322 $73,311 $255,905 $155,765 $37,839 $73,311 $266,915 $155,683 $38,890 $73,311 $267,884 $161,157 $39,941 $73,311 $274,409 $153,871 $35,737 $73,311 $262,919 $168,752 $39,941 $73,311 $282,004 $160,148 $35,737 $73,311 $269,196 $170,693 $37,839 $73,311 $281,843 $172,276 $37,839 $73,311 $283,426
%)rrent -#a>#l#t#es 7$$o)nts (a4a>le %)rrent Borro<#n !ther %)rrent -#a>#l#t#es S)>total %)rrent -#a>#l#t#es -on .ter/ -#a>#l#t#es Total -#a>#l#t#es (a#d.#n %a3#tal +eta#ned 2arn#n s 2arn#n s Total %a3#tal Total -#a>#l#t#es and %a3#tal Net Worth $0 $0 $0 $0 $300,000 $300,000 $440,000 :$427,209= $0 $12,791 $312,791 $12,791 $27,825 $0 $0 $27,825 $296,019 $323,844 $440,000 :$427,209= :$12,710= $82 $323,925 $82 $41,252 $0 $0 $41,252 $292,038 $333,290 $440,000 :$427,209= :$22,087= :$9,296= $323,994 :$9,296= $47,012 $0 $0 $47,012 $288,057 $335,069 $440,000 :$427,209= :$28,269= :$15,478= $319,592 :$15,478= $55,505 $0 $0 $55,505 $284,076 $339,581 $440,000 :$427,209= :$33,634= :$20,843= $318,738 :$20,843= $62,942 $0 $0 $62,942 $280,095 $343,037 $440,000 :$427,209= :$26,621= :$13,829= $329,207 :$13,829= $60,075 $0 $0 $60,075 $276,114 $336,189 $440,000 :$427,209= :$19,346= :$6,555= $329,634 :$6,555= $62,184 $0 $0 $62,184 $272,133 $334,317 $440,000 :$427,209= :$11,491= $1,300 $335,617 $1,300 $50,621 $0 $0 $50,621 $268,152 $318,773 $440,000 :$427,209= :$7,979= $4,813 $323,586 $4,813 $63,538 $0 $0 $63,538 $264,171 $327,709 $440,000 :$427,209= $1,629 $14,420 $342,129 $14,420 $49,604 $0 $0 $49,604 $260,190 $309,794 $440,000 :$427,209= $6,194 $18,985 $328,779 $18,985 $58,580 $0 $0 $58,580 $256,209 $314,789 $440,000 :$427,209= $13,305 $26,096 $340,885 $26,096 $58,194 $0 $0 $58,194 $252,228 $310,422 $440,000 :$427,209= $18,712 $31,504 $341,926 $31,504
Page -
4%%en/ix
.able! ersonnel
Personnel Plan Month 1 1eneral Mana er :Bear 2C= (artner/Mana er (artner/7sst, Mana er/20e$, %he& ?ostess :F)ll T#/e= ?ostess :(art T#/e= ;a#t3erson 1 ;a#t3erson 2 ;a#t3erson 3 ;a#t3erson 4 ;a#t3erson 5 ;a#t3erson 6 ;a#t3erson 7 ;a#t3erson 8 ;a#t3erson 9 ;a#t/Bar3erson Bartender 1 Bartender 2 B)s>o4 1 B)s>o4 2 B)s>o4 3 7ss#stant %he& So)s %he& %oo5 1 %oo5 2 (re3 %oo5/"#sh<asher (re3 %oo5/"#sh<asher/%lean#n "#sh<asher 1 "#sh<asher 2 %lean#n /"#sh<asher !3en Total (eo3le 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 2 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 3 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 4 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 5 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 6 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 7 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 8 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 9 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 10 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 11 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20 Month 12 $0 $4,000 $2,680 $2,000 $1,100 $470 $470 $470 $470 $470 $470 $470 $470 $470 $870 $1,200 $600 $760 $980 $600 $3,700 $2,700 $2,020 $1,580 $1,024 $1,080 $720 $475 $980 $0 20
Total Payroll
$33,299
$33,299
$33,299
$33,299
$33,299
$33,299
$33,299
$33,299
$33,299
$33,299
$33,299
$33,299
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.able! #tart:up )unding

Total Capital an9 8ia-ilities Total Funding

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Salads Mi6ed Preens with #panish sherry wine vinaigrette

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Asian ear and Cndive #alad with 'lue 1heese G Walnuts

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1hart! Market rofile $ ie&

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.able! #ales )orecast

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1hart! #ales Monthly

1hart! #ales by Year

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Year J! After:Nours X 9.+, Lunch X 9.+, Binner X 9.*2

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1hart! rofit Monthly

1hart! rofit Yearly

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1hart! Pross Margin Monthly

1hart! Pross Margin Yearly

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.able! rofit and Loss

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1hart! 'reak:even Analysis

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.able! 1ash )low

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