Business Plan in Bachelors Restaurant

Term paper on: Business Plan
in
Bachelors Restaurant
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Executive Summary
This restaurant business plan is for Bachelors Restaurant, a new medium-sized restaurant
located in a trendy neighborhood of Bangladesh. Bachelors Restaurant emphasis will be
on organic and creative ethnic food. An emphasis on organic ingredients is based on
Bachelors Restaurant dedication to sustainable development. Additionally, the restaurant
procures local foods when possible, reducing their dependence on fossil fuels used for
transportation.
Table of contents
Introduction1
Step One: Making the Commitment....2
Mission.2
Objectives....2
Step two: Analyzing oneself..2
Company Ownership...3
Start-up Summary....3
Start Up Requirement..4
Step Three: Choosing a product or Services..5
Services5
The Menu.6
Organic Ingredients..6
Ethnic Ingredients and Recipes....6
Interior Accoutrements....6
Product.7
Step Four: Market Research Analysis.9
Market Segmentation...9
The Lonely Rich..9
Young Happy Couples.....9
The Rich Hippies.....9
Dieting Women..10
Market Analysis.10
Step Five: Forecasting Sales Revenue: ..11
Competitive Edge...11
Sales Strategy.11
Website Marketing Strategy..12
Sales Forecast.....13
Step Six: Management Summary...14
Personnel Plan....15
Step Seven: Developing A Financial Plan..16
Break-even Analysis..16
Projected Profit and Loss...17
Pro Forma Profit and Loss.18
Projected Cash Flow..19
Projected Balance Sheet.22
Business Ratios..23
Step Eight: Developing a Legal Plan..26
Step Nine: Developing a Insurance Plan....26
Conclusion....27
Bibliography.28
Introduction:
Health is wealth. The knowledge persons of all the years & times said this valuable
comment forever. Really its true. A healthy body can build a healthy human; a healthy
human can develop a civil society. A good civil society can build a strong nation. So it is
never ever can underestimate the necessity of human health. What is inside the sound
human body? If we postmortem the causes then we will get that, a healthy balanced diet
is the one of the main reason of maintaining the good health. Now a day the world has
become more & more professional. In most of the families who duels in the city area the
husband also wife are engaged with service. They get a very little or negligible time to
cook food in home. And the demand of first food is increasing highly. In accordance with
the similarity we have decided to set up a restaurant named Bachelors Restaurant. Its
the institution where we are providing guarantee of healthy & balanced diet, nutrition
food as well as in cheap rate.
Step One: Making the Commitment

Bachelor restaurant fast-casual restaurant, serving fast, fresh, healthy grilled
meats and vegetables. The first store will be located in Dhaka. . The restaurant will be
located at 16/2 Baily road in Dhaka. The founder and president of bachelors
restaurant is Mr. Ahmed Khairul.
Mission
Bachelors Restaurant is a great place to eat, combining an intriguing atmosphere
with excellent, interesting food that is also very good for the people who eat there. We
want fair profit for the owners, and a rewarding place to work for the employees.
Objectives
1. Sales of $350K the first year, more than half a million the second.
2. Personnel costs less than $300K the first year, less than $400K the second year.
3. Profitable in year two, better than 7.5% profits on sales by year three.
Step Two: Analyzing oneself

Bachelors Restaurant is a single-unit, medium-sized restaurant. We focus on organic and
creative food. The restaurant will be located in a Baily Road. Most important to us is our
financial success, but we believe this will be achieved by offering high-quality service
and extremely clean, non-greasy food with interesting twists.
2.1 Company Ownership

The restaurant will start out as a simple sole proprietorship, owned by its founders.
2.2 Start-up Summary

The founders of the company are Mr. Ahmed Khairul. And his companion Ahmed Al
Faisal. focuses on the financial issues and Ahmed Khairul on the personnel issues.
Ahmed Al Faisal earned her business major undergraduate degree from the University of
Berkeley.
We have found the location and secured the lease for $2,000 per month. We will be able
to set up shop in time to begin turning back a profit by the end of month eleven and be
profitable in the second year. The place is already equipped as a restaurant so we plan to
come up with a total of $40,000 in capital, plus a $100,000 SBL-guaranteed loan, to start
up the company.
Start Up Requirement:
Start Up Funding:
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$3,000
$138,000
$141,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$50,000
$88,000
$0
$88,000
$138,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
Capital
Planned Investment
Investor 1
Investor 2
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital
Total Capital and Liabilities
Total Funding
Particulars
Start-up Expenses
Legal
Stationery etc.
Other
Total Start-up Expenses
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
Total Requirements
$0
$100,000
$1,000
$0
$101,000
$25,000
$15,000
$0
$40,000
($3,000)
$37,000
$138,000
$141,000
Amount ($)
$1,000
$1,000
$1,000
$3,000
$88,000
$50,000
$0
$138,000
$141,000
Step Three: Choosing a product or Services

3.1 Services
Bachelors Restaurant offers a trendy, fun place to have great food in a social
environment. Chef Rafiq Badsha has a large reputation of ethnic ingredients and recipes.
Bachelors Restaurant forecasts that the majority of purchases will be from the chef's
recommendations. Ethnic recipes will be used to provide the customers with a diverse,
unusual menu. Chef Rafiq Badsha will also be emphasizing healthy dishes, recognizing
the trend within the restaurant industry for the demand for healthy cuisine.
3.2 The Menu

The menu is going to be extremely simple but changing every day. We will keep a small
group of constants on the menu and then feature a chef's recommendation that we plan to
have 85% of meals ordering. This will help us to reduce waste and plan ingredients and
purchasing.
3.3 Organic Ingredients
The organic ingredient element will allow us to price to the extremely wealthy Internet
entrepreneurs who are looking to spend an exorbitant amount of money to have peace of
mind that their money is still coming back to themselves. We will be extremely
ecologically conscious as well, and spread this across our literature. Eating at Bachelors
Restaurant will feel like having contributed to the Anjuman Mufudul and drinking fresh
squeezed orange juice.
3.4 Ethnic Ingredients and Recipes

Our chef will have great latitude in designing and producing menu offerings from many
different world cultures. We will endeavor to procure all the traditional, authentic
ingredients necessary to hold true to these varied and interesting cultural recipes.
3.5 Interior Accoutrements
People need to keep life interesting, and our artwork will reflect the world influences that
are core to the attitude of the Bachelors Restaurant chef.
3.6 Product
Step Four: Market Research Analysis

Because of the founders' connections within the very trendy area of Bangladesh, we have
an excellent feel for the area and its core group of customers. They will all share
something alike, which is a feeling of being in the "in crowd" and having "gotten it" in
life. Although the crew will be different and not connect with each other in each segment,
each segment is complementary to the others. We do plan to raise menu rates as the
restaurant gets more and more crowded, and to make sure we are charging a premium for
the feeling of being in the "in crowd."
4.1 Market Segmentation

4.1.1 The Lonely Rich
Most of the lonely rich are tech workers these days, and most of those tech workers are
Internet workers. Their life has become their website servers and code they write, and the
people who help them to make the decisions in that world. They hang out with each other,
but desperately want to get away from it and use the money they are racking up. Because
this wealth has come fairly easily for them, it is particularly easy to separate them from
their money again - they spend the most on drinks, appetizers and tips.
4.1.2 Young Happy Couples
The restaurant will have an atmosphere that encourages people to bring dates and to have
couples arrive. It won't be awkward for others, and Bachelors Restaurant does want to be
a social place where people meet each other and develop a network. These young couples
are generally very successful but balanced and won't be spending as much on drinks.
4.1.3The Rich Hippies
The rich hippies in Bangladesh are a massive group with tremendous influence over the
city's government and private enterprise. They wear tie-die but drive BMWs and crave
the feeling of being in a social circle that is changing the world - even if in different ways
than in their glory days. We will cater to their ecological ideology and contribute to
charities to help them part with more of their money.
4.1.4 Dieting Women

The organic food menu will always have a line of extremely delicious very low-fat meals.
Bachelors Restaurant will have tables of women meeting like they do in shows like Sex
and the City, to discuss all types of matters while feeling good about the food they eat.
4.2 Market Analysis:

Year 1
Potential
Growth
Customers
Lonely
10%
400,000
Rich
Young
8%
150,000
Happy
Couples
Year 2
Year 3
Year 4
Year 5
CAGR
440,000
484,000
532,400
585,640
10.00%
162,000
174,960
188,957
204,074
8.00%
Rich
Hippies
Dieting
Women
Other
Total
6%
250,000
265,000
280,900
297,754
315,619
6.00%
7%
350,000
374,500
400,715
428,765
458,779
7.00%
5%
7.87%
50,000
52,500
55,125
57,881
60,775
5.00%
1,200,000 1,294,000 1,395,700 1,505,757 1,624,887 7.87%
Step Five: Forecasting Sales Revenue

Our strategy is simple; we intend to succeed by giving people a combination of great,
healthy, interesting food, and an environment that attracts "trendy" people like a magnet.
Implementation isn't simple, but that's in the doing of it, not in the plan.
5.1 Competitive Edge

Our competitive edge is the menu, the chef, the environment, and the tie-in to what's
trendy.
5.2 Sales Strategy

As the table shows, we intend to deliver sales of about $350K in the first year, and to
double that by the third year of the plan.
The strategy of the sales effort will be to convert potential and first-time customers into
long-term customers. This will be accomplished using several techniques.
Punch cards: After 10 meals purchased, the 11th will be free. Punch cards are an
effective way of increasing sales from a specific customer. They are effective
because they provide the customer with a sense of additional value; it gives the
feeling of value with the free entree. People love getting something beyond what
they pay for and the punch card provides this.
Concentrating on the customer's experience: Customers will not come back if they are not
happy with their dining experience. All employees go through a comprehensive training
process that includes training on how to offer the customer the finest experience. The
employees are empowered to resolve issues and are encouraged to seek assistance from
the manager for a conflict that they are unable to resolve.
5.3 Website Marketing Strategy

The website will rely on two methods of marketing as a means for developing awareness
of the site and increasing the number of visitors.
Search engine submission: The website will be submitted to various search

engines.
Printed material: Bachelor restaurant will reference the website address on all
printed material that is passed out including menus, business cards, and
advertising media.
5.3 Sales Forecast

Year 1
Year 2
Year 3
Unit Sales
Meals
Drinks
Other
Total Unit Sales
22,822
11,415
240
34,477
35,000
17,500
500
53,000
45,000
22,500
1,000
68,500
Unit Prices
Meals
Year 1
$15.00
Year 2
$15.00
Year 3
$15.00
Drinks
$2.00
$2.00
$2.00
Other
$10.00
$10.00
$10.00
Meals
$342,330
$525,000
$675,000
Drinks
$22,830
$35,000
$45,000
Other
$2,400
$5,000
$10,000
Total Sales
$367,560
$565,000
$730,000
Sales
Direct Unit Costs
Year 1
Year 2
Year 3
Meals
$2.00
$2.00
$2.00
Drinks
$0.50
$0.50
$0.50
Other
$1.00
$1.00
$1.00
Meals
$45,644
$70,000
$90,000
Drinks
$5,708
$8,750
$11,250
Other
$240
$500
$1,000
Subtotal Direct Cost of Sales
$51,592
$79,250
$102,250
Direct Cost of Sales
Step Six: Managemnt Summary

Bachelors Restaurant has assembled a strong management team. Ahmed Khairul will be
the general manager. Ahmed Khairul has extensive management experience of
organizations ranging from six to 45 people. Ahmed Al Faisal will be responsible for all
of the finance and accounting functions. Ahmed Al Faisal has seven years experience as
an Arthur Andersen CPA. Ahmed Al Faisal financial control skills will be invaluable in
keeping Bachelors Restaurant on track and profitable. Lastly, Bachelors Restaurant has
Chef Rafiq Badsha who will be responsible for the back-end production of the venture.
Rafiq Badsha has over 12 years of experience and is a published, visible fixture in the
Portland community.
Ahmed Khairul has great experience managing personnel and we are quite confident of
his ability to find the best staff possible. Our chef, Rafiq Badsha, is already on board and
has a published cookbook that will add prestige to the restaurant immediately. We will be
looking to find a young, ultra-hip staff to make sure we add the edge that makes
Bachelors Restaurant so trendy.
Most important to Bachelors Restaurant is the financial success which will be achieved
through strict financial controls. Additionally, success will be ensured by offering a highquality service and extremely clean, non-greasy food with interesting twists. Bachelors
Restaurant does plan to raise menu rates as the restaurant gets more and more crowded,
and to make sure that they are charging a premium for the feeling of being in the "in
crowd."
The market and financial analyses indicate that with a start-up expenditure of
$141,000, Studio67 can generate over $365,000 in sales by year one, $565,000 in sales
by the end of year two and produce net profits of over 7.5% on sales by the end of year
three. Profitability will be reached by year two.
Sales of $350K the first year, more than half a million the second.
1. Personnel costs less than $300K the first year, less than $400K the second year.
2. Profitable in year two, better than 7.5% profits on sales by year three.
6.1 Personnel Plan

As the personnel plan shows, we expect to invest in a good team, fairly compensated. We
think the planned staff is in good proportion to the size of the restaurant and projected
revenues.
Personnel Plan
Manager
Hostess
Chef
Cleaning
Waiters
Other
Total People
Year 1
$60,000
$42,000
$54,000
$30,000
$72,000
$24,000
8
Year 2
$65,000
$45,000
$60,000
$35,000
$100,000
$52,000
10
Year 3
$70,000
$50,000
$65,000
$40,000
$130,000
$55,000
12
Total Payroll
$282,000 $357,000 $410,000
Step Seven: Developing A Financial Plan

We expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteed by the
SBA as a 10-year loan. This provides the bulk of the start-up financing required.
7.1 Break-even Analysis

Our break-even analysis is based on the average of the first-year numbers for total sales
by meal served, total cost of sales, and all operating expenses. These are presented as perunit revenue, per-unit cost, and fixed costs. We realize that this is not really the same as
fixed cost, but these conservative assumptions make for a better estimate of real risk.
Break-even Analysis
Monthly Units Break-even
3,205
Monthly Revenue Break-even
$34,171
Assumptions:
Average Per-Unit Revenue
$10.66
Average Per-Unit Variable Cost
$1.50
Estimated Monthly Fixed Cost
$29,375
7.2 Projected Profit and Loss

As the profit and loss table shows, we expect to become barely profitable in the second
year of business, and to make an acceptable profit in the third year.
7.3 Pro Forma Profit and Loss

Sales
Direct Cost of Sales
Other
Total Cost of Sales
Year 1
$367,560
$51,592
$0
$51,592
Year 2
$565,000
$79,250
$0
$79,250
Year 3
$730,000
$102,250
$0
$102,250
Gross Margin
Gross Margin %
$315,969
85.96%
$485,750
85.97%
$627,750
85.99%
$282,000
$27,000
$357,000
$35,830
$410,000
$72,122
$0
$1,200
$42,300
$0
$0
$1,260
$53,550
$0
$0
$1,323
$61,500
$0
Total Operating Expenses
$352,500
$447,640
$544,945
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
($36,532)
($36,532)
$9,673
$0
$38,110
$38,110
$8,887
$7,306
$82,806
$82,806
$7,637
$19,105
Net Profit
Net Profit/Sales
($46,204)
-12.57%
$21,917
3.88%
$56,063
7.68%
Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Utilities
Payroll Taxes
Other
7.4 Projected Cash Flow

The cash flow projection shows that starting cost and provisions for ongoing expenses are
adequate to meet our needs until the business itself generates its own cash flow sufficient
to support operations.
7.5 Pro Forma Cash Flow

Year 1
Year 2
Year 3
Cash from Operations

Cash Sales
Subtotal Cash from Operations
$367,560
$367,560
$565,000
$565,000
$730,000
$730,000
Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
$0
$0
$0
$0
$0
$0
$0
$367,560
$0
$0
$0
$0
$0
$0
$0
$565,000
$0
$0
$0
$0
$0
$0
$0
$730,000
Expenditures
Year 1
Year 2
Year 3
Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
$282,000
$117,968
$399,968
$357,000
$185,584
$542,584
$410,000
$257,538
$667,538
$0
$0
$0
$0
$0
$0
$0
$6,133
$0
$10,000
$0
$15,000
$0
$0
$0
$406,101
$0
$0
$0
$552,584
$0
$0
$0
$682,538
($38,541)
$49,459
$12,416
$61,875
$47,462
$109,337
Cash Received
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current
Borrowing
Other Liabilities Principal Repayment
Long-term
Liabilities
Principal
Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
7.5 Projected Balance Sheet

The table shows projected balance sheet for three years.
Pro Forma Balance Sheet

Year 1
Year 2
Year 3
Current Assets
Cash
Total Current Assets
$49,459
$50,000
$99,459
$61,875
$50,000
$111,875
$109,337
$50,000
$159,337
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$0
$0
$0
$99,459
$0
$0
$0
$111,875
$0
$0
$0
$159,337
Liabilities and Capital
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$14,796
$0
$0
$14,796
$15,294
$0
$0
$15,294
$21,693
$0
$0
$21,693
Total Liabilities
$93,867
$108,663
$83,867
$99,161
$68,867
$90,560
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$40,000
($3,000)
($46,204)
($9,204)
$99,459
$40,000
($49,204)
$21,917
$12,713
$111,875
$40,000
($27,287)
$56,063
$68,776
$159,337
Net Worth
($9,204)
$12,713
$68,776
Assets
7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry Profile ratios based
on the Standard Industrial Classification (SIC) code 5813, Eating Places, are shown for
comparison.
Ratio Analysis
Year 1
Year 2
Year 3
Sales Growth
N.A
53.72%
29.20%
Industry
Profile
7.60%
Percent of Total Assets

Total Current Assets
Long-term Assets
Total Assets
50.27%
100.00%
0.00%
100.00%
44.69%
100.00%
0.00%
100.00%
31.38%
100.00%
0.00%
100.00%
35.60%
43.70%
56.30%
100.00%
Current Liabilities
Total Liabilities
Net Worth
14.88%
94.38%
109.25%
-9.25%
13.67%
74.97%
88.64%
11.36%
13.61%
43.22%
56.84%
43.16%
32.70%
28.50%
61.20%
38.80%
100.00%
85.96%
98.90%
100.00%
85.97%
82.32%
100.00%
85.99%
78.45%
100.00%
60.50%
39.80%
0.65%
-9.94%
1.77%
6.75%
6.16%
11.34%
3.20%
0.70%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
6.72
6.72
109.25%
501.98%
-46.46%
7.31
7.31
88.64%
229.87%
26.12%
7.34
7.34
56.84%
109.29%
47.18%
0.98
0.65
61.20%
1.70%
4.30%
Additional Ratios
Net Profit Margin
Year 1
-12.57%
Year 2
3.88%
Year 3
7.68%
n.a
Percent of Sales
Sales
Gross Margin
Selling,
General
&
Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Return on Equity
0.00%
172.40%
81.52%
n.a
Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover
8.91
27
3.70
12.17
30
5.05
12.17
26
4.58
n.a
n.a
n.a
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
0.00
0.14
7.80
0.15
1.32
0.24
n.a
n.a
Liquidity Ratios
Net Working Capital
Interest Coverage
$84,663
-3.78
$96,580
4.29
$137,643
10.84
n.a
n.a
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
0.27
15%
6.72
0.00
0.00
0.20
14%
7.31
44.44
0.00
0.22
14%
7.34
10.61
0.00
n.a
n.a
n.a
n.a
n.a
Step Eight: Developing a Legal Plan:

Legal policy is the most important issue to set up an organization. We have the copyright
to our products & brand name. we have the government registration number RG004732/2011. we have also resistered from the BSTI (Bangladesh Standards Testing
Institutions) and all our food products are been made & tested by the BSTI. So we can
strongly assure that, our products are 100 percent halal, safe, hygienic, healthy & best
suitable for all ages of people.
We have not the interest to franchise or dealership in any parts of the country. We have
the wish to spread our own branches by the own management in the seven division of
Bangladesh. Not by set up by the others.
Step Nine: Developing a Insurance Plan

We have the insurance plan under the most renowned insurance company in the world
Met life ALICO. Our insurance policy number is BO- 0851298. We have insured under
the fire insurance in the main office. We have the policy of 100 Crore Taka. That is if the
institution burns by fire by short circuit & other causes, then according to the loss we will
get the compensation. But the most extreme value is 100 crore.
Conclusion:
Bachelor restaurant will operate within the large restaurant industry. While the industry
has its upswings and downturns, the variance is less than the economy itself. People need
to eat, they can eat in and save money, but the convenience of dining out creates a
significant incentive. This is not to suggest that restaurants are recession proof, they are
less affected by the general state of the economy.
Bibliography:
1. Google
2. Some Information from renowned restaurant.

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Term paper on: Business Plan

Step One: Making the Commitment

Step Two: Analyzing oneself

2.1 Company Ownership

2.2 Start-up Summary

Liabilities and Capital

Step Three: Choosing a product or Services

3.2 The Menu

3.4 Ethnic Ingredients and Recipes

Step Four: Market Research Analysis

4.1 Market Segmentation

4.1.4 Dieting Women

4.2 Market Analysis:

Step Five: Forecasting Sales Revenue

5.1 Competitive Edge

5.2 Sales Strategy

5.3 Website Marketing Strategy

Search engine submission: The website will be submitted to various search

5.3 Sales Forecast

Direct Unit Costs

Subtotal Direct Cost of Sales

Direct Cost of Sales

Step Six: Managemnt Summary

6.1 Personnel Plan

$282,000 $357,000 $410,000

Step Seven: Developing A Financial Plan

7.1 Break-even Analysis

Monthly Units Break-even

Monthly Revenue Break-even

Average Per-Unit Variable Cost

Estimated Monthly Fixed Cost

7.2 Projected Profit and Loss

7.3 Pro Forma Profit and Loss

Total Operating Expenses

Profit Before Interest and Taxes

7.4 Projected Cash Flow

7.5 Pro Forma Cash Flow

Cash from Operations

Additional Cash Received

Expenditures from Operations

Additional Cash Spent

7.5 Projected Balance Sheet

Pro Forma Balance Sheet

Liabilities and Capital

7.6 Business Ratios

Percent of Total Assets

Step Eight: Developing a Legal Plan:

Step Nine: Developing a Insurance Plan

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