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Business Plan Prateek Agarkar D 32

Business Plan Prateek Agarkar D 32

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Indira School of Business Studies

Global Management Program
PGDM-IB
Batch 2012-14

Business Plan On Setting up theRestaurant (Western Islands )
Submitted BY: Prateek Agarkar PGDM-IB ROLL No.:- D-32

1

Contents
Executive Summary ............................................................................................................ 4 Company Name: ............................................................................................................. 4 Key Personnel: ................................................................................................................ 4 Brief Description:............................................................................................................ 4 Services ........................................................................................................................... 4 Customers ....................................................................................................................... 4 The Menu ........................................................................................................................ 4 Restaurant Location ........................................................................................................ 5 Vision And Mission Statement ....................................................................................... 5 Management Summary ....................................................................................................... 6 Management Team.......................................................................................................... 6 Managing Partner Responsibilities ................................................................................. 6 Personnel Plan................................................................................................................. 7 Restaurant Operations: .................................................................................................... 7 Business and Industry Profile. ............................................................................................ 8 Market Demographics ..................................................................................................... 8 SWOT Analysis. ............................................................................................................. 9 Weaknesses ..................................................................................................................... 9 Opportunities................................................................................................................... 9 Marketing and Sales strategy .............................................................................................. 9 In-Restaurant Marketing ............................................................................................... 10 Sales strategy ................................................................................................................ 11 Sales Forecast .......................................................................................................... 12 Critical Job Description Summary ................................................................................ 13 Web Plan Summary ...................................................................................................... 14 Future Personnel Plan(After 5 yrs) ............................................................................... 15 FINANCIAL PLAN.......................................................................................................... 16 Start up Costs ................................................................................................................ 17 Investment Opportunities .............................................................................................. 18 Risk Analysis/Mitigation .............................................................................................. 18 Balance Sheet .................................................................................................................... 22 Expansion, Payback & Exit Strategy ................................................................................ 22 2

......... 22 Exit Strategy to Retire the Business....... 23 3 ..............................................................................................................Expansion as a Business Goal............................................

Chef Mario will also be emphasizing healthy dishes.000 people. Services Ethnic recipes will be used to provide the customers with a diverse. The last group which is particularly interested in the menu's healthy offerings is dieting women which number 350. island atmosphere. The restaurant will focus on West Indian cuisine. background music (reggae and calypso) and traditional West Indian hospitality. The locWestern Islands on of the restaurant will offer patrons "something different" in an area swamped with Italian. The Menu The menu is going to be extremely simple but changing every day. American. unusual menu. Customers Western Islands believes that the market can be segmented into four distinct groups that it aims to target. This will help us to reduce waste and plan ingredients and purchasing.000 in the Portland area. The first group is the lonely rich which number 400.C road Pune Key Personnel:  Business Manager   General Manager Assistant Manager Brief Description: A Western Islands is a West Indian themed restaurant that will be located in the Northeast quadrant of the City of Anytown. The third group is rich hippies who naturally desire organic foods as well as ethnic cuisine. and Mexican restaurants. 4 . recognizing the trend within the restaurant industry for the demand for healthy cuisine. The second group that will be targeted is young happy customers which are growing at an annual rate of 8% with 150.000 potential customers.Executive Summary Company Name: Western Islands F. We will keep a small group of constants on the menu and then feature a chef's recommendWestern Islands on that we plan to have 85% of meals ordering.

Keep food costs below 35% of revenue. 5 . c.  We will combine menu variety. atmosphere. AnyState. male and female. Keep employee labor costs between 16-18% of revenue. Our customer service support will show that we want to be the restaurant of choice for families and singles. offering multiple dining and entertainment options within a single establishment. Cosmopolitan Bar. and friendly service to customers. We will be doing unique things.Restaurant Location The market has been carefully selected and tested for the necessary demographics and retail traffic necessary to meet the goals laid down for profitability. Mission.000 cars daily. We want our guest to have the total experience of the Caribbean Islands. Employee welfare will be equally important to our success. Our focus will be concentrate on four major areas:    We will serve quality food for a competitive price. but also be provided with the atmosphere. such as Island style brunches. and West Indian Festival and Holiday celebrWestern Islands ons. The restaurant features 3 venues in one (a concept called ‘Multi-Branding'): A Tapas Lounge. with a large selection of West Indian Cuisine. Maintain tight controls on cost and operWestern Islands ons through partnership management. b. ambiance. A Western Islands will strive to be the premier specialty restaurant in the Northeast Heights of Anytown. Western Islands is unique to Midtown Pune. young and old. We want our employees to feel as a part of the success of A Western Islands Happy employees make happy guests. Grow two units within the first five years. d. The spatial and menu divisions will broaden our appeal and provide our customers with a different experience on each visit. This concept offers customers variety. Vision And Mission Statement Vision. and Full Service Dining. The objectives for “A Western Islands ” for the first five years of operWestern Islands on is: a. The busy Midtown commercial/residential location has been chosen based upon a successful demographic model and a traffic count of more than 33. not only with a great meal.

inventory. including receivables. including capital budgeting. pricing and inventory control. Responsibilities for hiring and firing employees lie solely with the two operations managers. and external financing requirements. and enforce an employee's manual for all employee-related policies. have considerable experience in the restaurant industry. They will:   Manage working capital. Perform financial forecasting. portioning. They will advised and supported by their Advisory Board. explain.Management Summary The strength of our management staff positions us for success. Management Team Western Islands Restaurant & Lounge. we will hire a General Manager to handle the day-to-day Restaurant management. but you can inspire confidence based on what you have done. including approval of all financial obligations of the company. cash flow analysis. as principals within the company. 6 . This Western Islands Management team has deep roots in the restaurant segment. and write. purchasing. cash and marketable securities. pro forma financial statements. They will plan. including marketing and restaurant management. understands the importance of a strong management team. You can't build investor confidence based on what you will do. This will assist Western Islands 's Restaurant & Lounge to grow even further. Managing Partner Responsibilities In addition to the management of day to day operations. both managers. as hands on managers. The strength of our management staff positions us for success. Attached is the portfolio of past success. Day to day operational management will be conducted by Prateek Agarkar and Mohit Maru. accomplished professionals with expertise in all areas of the business. We have assembled a team that embraces different disciplines. and any decisions in these areas will be made jointly. develop. In Year 2. will oversee menu development. and establish customer service policies and objectives. The owners. Prateek Agarkar (Managing Partner) and Mohit Maru (Executive Chef). with more than 48 years of experience between the key officers. and have the practical experience to make this venture another great success.

Kitchen: The Executive Chef will be assisted by:      An Assistant Chef from a national search (1). and our menu prices. Personnel Plan We believe the personnel plan is in good proportion to the size of the restaurant and projected revenues. and Investor Services. Prep cooks/dishwasher (2). busboys. service employees should average at least twice the minimum wage in any given shift. Direct preparation of budgets and financial forecasts and arrange for audits of company's accounts. A Sou chef with considerable experience in different restaurants (1). Peter will also take lead as the Executive Chef working with the Head Chef. Georgia area. He will be the primary responsible for daily Restaurant Operations. Wage salaries for service personnel (waitstaff. who will work a total of 754 manhours per week and generate an average monthly gross payroll of Rs27. Mohit Maru will be the Restaurant Manager. Cooks that work directly with Peter or the sous chef (2).  To help Peter. he will have servers that will work as „captains' (these people have experience in managing.  Prepare financial analyses of operations for guiding management. including reports which outline the company's income. taking care of Wait and Bar Staff. With average tipping rates for the Atlanta.308 for the first year in business.588 (including Partner Salaries) is 37% of total sales. The estimated gross annual payroll of Rs399. Bookkeeping. PR/Media Advertising. Prateek Agarkarwill also manage the daily Restaurant Operations. waiting tables and bartending) and take care of service and make sure the restaurant is in excellent shape (2). The staff will include 13 full-time employees and 8 part-time employees. bartenders) do not include anticipated tips. 7 . and earnings. Skilled waitresses and bartenders on weekends and evenings will make substantially more. expenses. People cleaning the restaurant (2). Restaurant Operations: Prateek Agarkarwill manage the Financial Management.

A Western Islands is a start-up venture.853. (A Western Islands ‟ target market) Growth Rate: In order to be successful. locally owned enterprises.326. Business and Industry Profile. The current restaurant industry in the Anytown market is strong.00. Part-time bartender (1). with a very high success rate. a new restaurant must control its growth to match the demand for its cuisine.627 Households with a mean disposable income of Rs15. Total PopulWestern Islands on (Anytown Metropolitan Area): 292. According to recent estimates. there are 9 major restaurants started each year. etc. Part-time busboy (1).) dominate the American food and more popular cuisine markets (Italian. the three partners have extensive experience in West Indian Food Service (see key personnel). Each restaurant will be designed for small to 8 . Stage of Growth. Restaurants with nWestern Islands onal affiliWestern Islands on (Olive Garden. the spending potential index for restaurants is 94.     Servers that work part time (4). Landry‟s. The Anytown market holds a lifestyle rank of 61. dominate the Mexican food markets. Industry Analysis. Market Demographics: The target market for A Western Islands includes families with disposable incomes above the area mean. This locWestern Islands on will assist in the success of the venture. The selected locWestern Islands on for the restaurant is located in a high traffic. A Western Islands includes expansion to two restaurants within the first 5 years only. Of this. The target market demographic breakdown includes the following: a. etc. Median income: Rs38. French. Full-time bartender (1). Full-time busboy (2).) and small to medium. Although it is not an ongoing operWestern Islands on. b. shopping area of Anytown. with a majority above the median income between 45 and 64 years old.

informal (less expensive) atmosphere. Households dine out an average of 4 times per week (AnyState Restaurant Association). WESTERN ISLANDS will utilize special promotions to advertise the grand opening. with unheard of entrees.2 above. and continue to seek different cuisines. Competition may present “differences” with lower prices. A Western Islands (WESTERN ISLANDS ) has several distinct advantages over its competitors. These promotions will be targeted to residents and employees in the Northeast quadrant of Anytown. WESTERN ISLANDS ‟s menu will be “different”. do not include a “themed” atmosphere. and a memorable environment The Competition. and wage demands. Strengths. special events. The atmosphere will be authentic. Constriction in this venture include pricing. The worst threat that ATI will face is the indifference toward its theme.seWestern Islands ng for 75). SWOT Analysis. Catering to the casual dining market requires good service. WESTERN ISLANDS competition includes 15 specialty restaurant types. The competition (especially themed restaurants) product price is within the range offered by WESTERN ISLANDS Marketing and Sales strategy Promotions. if properly executed. and seasonal finales. In terms of product strengths. reinforcing the desire to return. Dining out is becoming a regular occurrence in the Anytown area. ATI can create a “niche” for its patrons.medium patron count (+/. excellent food. and rely on the popularity of their food. ethnicity. Many of the restaurants listed in 3. Weaknesses. Management‟s extensive experience in West Indian cuisine will also be a strength for this venture. West Indian costume and island setting. and national chain affiliation. The promotions will 9 . These weaknesses can be overcome with extensive planning and on target marketing efforts Opportunities. WESTERN ISLANDS will include an atmosphere that will be as memorable as its food. The addition of a lunch or brunch menu will also increase the opportunity to attract patrons. with calypso and reggae music.

b. it is an effort to increase visibility and patronage across the Midtown district. and businesses entertaining out of town guests. Advertising. and possible Co-op efforts to promote the Midtown district.concentrate on the age group between 45 and 64. Advertising will also be done with four 30 second spots during drive time radio. In addition to food and beverages.   Monthly Dating Connection: With the increasing appeal of Internet and speed dating. we will have a special evening for restaurant people. c. A perfect night for the local area's restaurant owners. Special Promotions. customers can choose from an array of dating packages up for auction. This is not a conflict of interest. the restaurant will offer a monthly dating night. In-Restaurant Marketing Restaurant Night: Every first Monday of the quarter. you can do it right here!" It will be important to differentiate "West Indian" from other ethnic cuisines. The media message will be "you don't have to go to the islands to experience them. with very little print advertising (flyers at restaurants. The advertising will be sponsored by a Advertising will be concentrated on Radio. live. A Taste of the Island‟s special menu changes based on seasonal foods.  Wait Area Marketing: Wait staff will service appetizers to customers waiting to be seated or on the wait list. The advertising program (see cash flow) includes funds for the promotions outlined above. Popular “Reggae” artists. the “bunch for lunch” crowd. coupons in entertainment books. five days per week. a. and weekly local magazines).Local DJ on site.      Live Entertainment parties Special Events Valentine's Day Western Islands Halloween Masquerade party Wine tasting weekend 10 . OpeningPromotion. We will also invite the Midtown Alliance committee for their participation. chefs and staff to get together to discuss the market and food trends. morning and afternoon. Seasonal promotions.

Advertisement in media (print. and immediately addressing any problems  Interacting with our customers personally. or quality discourages customers from returning. New Year's Eve party Sales strategy Our strategy is simple: we intend to succeed by giving our customers a combination of delicious and interesting food in an appealing environment. and are unable to maintain the initial quality customers expect on return visits. Alcoholic beverages will include beer and wine only. service. lunch and dinner menus. with excellent customer service.Rs9. with some patrons for the remainder of our County.a complete West Indian menu and environment (ambiance). Price – Breakfast through lunch to be competitive . Western Islands 's sales strategy requires consistently high quality food. speed. radio) as required based on target market research. We can accomplish this by:  Hiring employees who genuinely enjoy their jobs and appreciate Western Islands 's unique offerings  Continually assessing the quality of all aspects mentioned above. The hours of operWestern Islands on will be 10:00 AM to 10:00 PM with full breakfast. decreasing word of mouth advertising and leading to poor revenues. and initial poor service. speed. 11   . Promotion will concentrate on target customer needs and wants. and to tell all their friends and acquaintances about the great experiences they just had at Western Islands . Our marketing strategies are designed to get critics and initial customers into our doors. New restaurants often make one of two mistakes: they are unprepared or underprepared for opening. so they know that their feedback goes directly to the owners Marketing Mix  The description of the marketing mix for this venture includes:  Product .55 Promotion . or they spend all of their efforts at opening. Our sales strategies must take the next step and encourage customers to become repeat customers.Rs18. whether on their first visit or their hundredth.55 Dinner .  Place – Predominantly Northeast quadrant of Anytown. and atmosphere.

we will insist on payment at delivery . compared to industry standard growth rates. Our sales forecasts for years 3 through 5 are very conservative. We anticipate that the business will not be at full operating capacity until the sixth month of operations. All factors governing our sales progress are outlined below in the Important Assumptions section. This is due to the competitive nature of the market and existing customer loyalty. 12 . (See Ratios table for comparisons.Sales Forecast The following sales graph is based on first year start-up estimates only.we will not sell on credit.) Although we hope to do catering for local businesses and government offices with time.

“A Western Islands ” has adopted the human resource philosophy that “You are your environment”. Associate of Applied Science Degree. spreadsheet. Regis University.Business AdministrWestern Islands major. presentWestern Islands on and be responsible for environmental health 13 . data base. general entry accounting. CO. menu planning. Critical Job Description Summary Supervisor The supervisory cook is responsible for directing the activities of other kitchen staff. strategic planning and records management. scheduling and programming. Anytown Technical VocWestern Islands onal Community College. NM Experience: 9 years experience as Office manager. organizWestern Islands onal. My responsibilities include supervision of day-to-day operWestern Islands on and administrWestern Islands on. pre-qualified potential employees approach the establishment for employment. proficient in business management computer software programs to include word processing. Present. School Skills: NWestern Islands ve West Indian with demonstrated communicWestern Islands ve. Key Personnel Business Manager – Principal EducWestern Islands : of Professional Studies. purchasing.HUMAN RESOURCES Philosophy. and administrWestern Islands ve skills. by its reputWestern Islands on alone. Policy. budget. and will strive to create an environment of mutual respect. contract management. accounting. Business AdministrWestern Islands on. food and supply requests. fair treatment and equitable compensWestern Islands on. recipe creWestern Islands on. human resource management. All staff members of the establishment are an integral part of its success. accounts receivable and payable management. payroll. specialty cooking duties. “A Western Islands ” will implement human resource policies to effectively “brand” the establishment to have the highest-quality.

simple. A customer will be able to order a selection for pickup using a credit card. Hostess The hostess will be responsible for all aspects of table management. contemporary and well designed. reviews and happenings at Western Islands . This include taking reservWestern Islands ons. The management staff will create an environment to instill “Quality as Everyone‟s Business”. logging of events and functions in the reservWestern Islands on book. Duties of the first cook will include the preparWestern Islands on of menu items in accordance with recipes prepared for each dish. logging and tracking of members checks. QUALITY CONTROL/CUSTOMER SERVICE Quality Control. starting with an on-line order feature for the Sunday Market Brunch. We will also have a monthly Paparazzi Review about what did happen at Western Islands to get new customers interested in our restaurant. supervise pastry and salad preparWestern Islands on and perform cooking duties for day to day menu orders. coordinWestern Islands ng of wait staff levels in dining rooms. greeting and seWestern Islands ng customers. The supervisory cook will report to the General Manager and serve on the quality assurance team. service. Quality control techniques will include product. Our website will be used to try out new offers.regulatory compliance. reception. It will be the virtual business card and portfolio for the company. Web Plan Summary Western Islands Restaurant & Lounge will have a dedicated website. Selections will 14 . prices. and coverage of the dining room phone during business hours. Our site will offer our menus. and expanding if the concept gains favor with our customers. First Cook The first cook will act as supervisor in the absence of the supervisory cook. assignment of tables and sections to staff. Quality control will implement Demming‟s 14 points of integrWestern Islands ng Total Quality Management (TQM) into every day business operWestern Islands ons. presentWestern Islands on and environment.

400 Rs32.120 Rs11.120 Rs11.400 Rs7.640 Rs5.500 Rs13.640 Rs5.440 Rs14.000 Rs13.640 Rs5.400 Rs32.160 Rs24. Future Personnel Plan(After 5 yrs) Year 1 General Manager (Year 2+) Partner/Manager Partner/Asst.640 Rs5.000 Rs14.500 Rs9.640 Rs5.400 Rs7.640 Rs5.640 Rs5.640 Rs5.640 Rs5.160 Rs24.640 Rs5.640 Rs5.400 Rs24.400 Rs7. This is also a potential for customers needing catering.640 Rs10.760 Rs7.640 Rs5.160 Rs25.400 Rs24.400 Rs32.760 Rs7.640 Rs10.200 Rs5.640 Rs10.000 Rs48.640 Rs5.440 Rs14.640 Rs5.400 Rs32.be based on our pre-packaged meals available during the Sunday Market Brunch.640 Rs10.640 Rs5.160 Rs25.000 Rs32.640 Rs5.500 Rs5.240 Year 2 Rs27000 Rs48.000 Rs32.640 Rs5.640 Rs5.640 Rs5.640 Rs5.500 Rs14.160 Rs26.200 Rs44.500 Rs9.200 Rs44.000 Rs14.120 Rs11.640 Rs5.800 Rs5.240 Year 4 Rs28.000 Rs5.500 Rs9.640 Rs5. Manager/Exec.200 Rs44.760 Rs7. The website will include email capabilities and online reservations and special events scheduling.500 Rs48.640 Rs5.400 Rs32.000 Rs32.640 Rs5.000 Rs32.400 Rs24.120 Rs11.640 Rs5.400 Rs24.640 Rs5.640 Rs5.240 Year 3 Rs28.640 Rs5.400 Rs7.640 Rs5.400 Rs24.640 Rs5.640 Rs5.240 Year 5 Rs29.200 Rs44.440 Rs14. Chef Hostess (Full Time) Hostess (Part Time) Waitperson 1 Waitperson 2 Waitperson 3 Waitperson 4 Waitperson 5 Waitperson 6 Waitperson 7 Waitperson 8 Waitperson 9 Wait/Barperson Bartender 1 Bartender 2 Busboy 1 Busboy 2 Busboy 3 Assistant Chef Sous Chef Cook 1 Rs25000 Rs48.440 Rs14.240 15 .440 Rs14.300 Rs5.640 Rs5.640 Rs5.200 Rs9.000 Rs48.640 Rs5.760 Rs7.000 Rs32.600 Rs9.120 Rs11.640 Rs5.640 Rs5.640 Rs5.760 Rs7.640 Rs5.640 Rs5.400 Rs7.640 Rs10.640 Rs5.200 Rs44.

City.640 Rs5. and illustrated in more detail in the referenced appendices or financial analysis sources cited.960 Rs12.Cook 2 Prep Cook/Dishwasher Prep Cook/Dishwasher/Cleaning Dishwasher 1 Dishwasher 2 Cleaning/Dishwasher Open Total People Total Payroll Rs18.760 Rs0 24 RS 21642552 Rs18.960 Rs12.800 Rs0 25 Rs 23210712 Rs18.900.640 Rs5.800 Rs11.960 Rs8.960 Rs12. without a major recession. Assumptions made on the financial models presented as exhibits to this plan are listed under Financial Plan Assumptions.    The Owners intend to invest Rs254. and is assumed at the rate of 27%  The financial models contained in this plan are based on important assumptions.960 Rs8.960 Rs12.800 Rs11.800 Rs0 25 Rs23280912 Rs18. The economy will remain strong. under the requirements for organizing a AnyState Limited Liability Company (53-19-7 to 55-19-10 NMSA 1978) wi th Articles of OrganizWestern Islands on filed with the Public RegulWestern Islands on Commission.960 Rs8.288 Rs12.960 Rs8.640 Rs5. CorporWestern Islands ons Bureau.00 each). most of which are shown in the following table.288 Rs12.800 Rs0 25 Rs 23367312 FINANCIAL PLAN OVERVIEW.800 Rs11.640 Rs5.800 Rs11. That there are no unforeseen changes in consumer‟s tastes or interests to make our concept less competitive.288 Rs12.960 Rs8. 16 . Chartered Documents Division.640 Rs5.700 Rs11.288 Rs12.760 Rs0 20 Rs 21577752 Rs18. AnyState.960 Rs12.700 at start up (Rs84. Income taxes will pass to OrganizWestern Islands on Partners. A WESTERN ISLANDS is organized as a Domestic LLC organizWestern Islands on.  That personnel burden rates will remain at the current rate during the period of the financial models represented.288 Rs12.

dining furniture and serve ware necessary for a dining capacity of 75 patrons. in leased facilities located within a major shopping hub offering ample parking. The advertising started in these promotions will continue during popular drive slots.500 square feet of dining area. FIXTURES AND EQUIPMENT Furniture. etc. as shown on the projected cash flow (Exhibit FP-4). FURNITURE. Marketing and Promotion also includes print material. ranges.) will be leased through a major supply house in Anytown. FEES In order to ensure that proper programming and planning are conducted throughout the 17 . These costs also include the first year lease cost of the beer and wine license. and the remainder of the equipment needed (Rs32. 200 square feet of storage. 600 square feet of kitchen area. The Major food preparWestern Islands on equipment (freezers.104. tools. It is assumed that the facility will cost Rs14. and office stWestern Islands onery.00) will be purchased with start-up capital. menus. access and visibility from a major thoroughfare.00/square foot/year. Facility costs associated with Start-up costs include the first and last month lease payment. licensing and environmental inspections necessary prior to the start of business. and 350 square feet of waiting/entry area.Start up Costs Facilities A WESTERN ISLANDS will be located in the North Eastern Quadrant of the City of Anytown.00. under a one-year lease agreement with 4 automWestern Islands c extensions (5 year lease). work tables. prior to opening. MARKETING It is the intent to conduct special promotions to “kick off” the venture. due upon execution of the lease. REGULATORY Regulatory compliance costs include all costs associated with the permitting.760. fixtures and equipment contained in the start-up costs include all major food preparWestern Islands on equipment. appliances. The facility will include approximately 1. Annual facility costs will be Rs37.

first year of operWestern Islands on.  We budgeted operational shortfall in an operational contingency budget that we will utilize if the need arises.000 . and assistance in selection of staff. Investment Opportunities The Western Islands Investment Program allocates equity position of 20% for a total of Rs200. 18 . A Western Islands will engage the services of The InnovWestern Islands ons Group (hospitality professional advisors).000 in investor capital. How do we allow an adequate startup period and capital to launch the concept and grow our customer base in a competitive sector? Our financial plan is budgeted to support the Worst-Case business scenario.000 Investment) Starting Year 2 Silver: Projected Annual IRR on Investment of Rs15. We calculated worst-case monthly financial shortfall based on the ramp-up sales percentages outlined in our financial assumptions. The Investment structure is as follows: Investment Opportunity Total Investor Funding Opportunity: Minimum Investment Amount Investment Term (Investor Selection) Total Equity Offering (1% per Rs15.000 3-5 Years Risk Analysis/Mitigation 1. Start-up costs will include the initial 6 months of advisory service.Rs49. facility layout. We addressed the financial risk as follows:   We looked at our monthly break-even.000 Gold: Projected Annual IRR on Investment of Rs50. initial financial records processes.Rs99.000 .000 or more 11% 12% + Residuals 10% 20% Max Rs200.000 Platinum: Projected Annual IRR on Investment of Rs100.000 Rs15. These services will include market planning.

How do we confirm that our Funding Requirement is sufficient? Mohit Maru has an extensive background in restaurant startup. Another mitigation has been our overall Restaurant concept. We will be recruiting a seasoned chef (national search) whose style is in accord with the Restaurant concept and our market segment. and on retainer for 4 months of business operations. The Financial Plan incorporates a budget for an Atlanta Restaurant Consulting group. Their services are budgeted for the business start-up analysis. The current Economic slowdown and recovery state was a key consideration in our restaurant concept. and have the right industry knowledge? Owners Prateek Agarkar and Mohit Maru have a combined 20 years of Restaurant Management. 4. We have the menu priced at a mid-tier level with no entrée over Rs20. How do we ensure we have addressed all resource gaps. and we will use his expertise in past projects as a comparative basis. Operations and Business Management Experience. In addition. Additionally. and business operating capital. As we are in the midst of an economic recovery. we included a contingency buffer in the financial estimates to account for any potential cost variance. 3. rollout. How do we manage a successful restaurant in current market conditions? Our original effort was to open a restaurant twice the proposed size. specializing in the Atlanta Market. we have scaled back the size to reduce business overhead.Rs600. we have an extended Tapas and Appetizer selection priced between Rs160. allowing budget dining in a distinguished restaurant. We will be offering an equity interest to our select Chef to maintain the industry knowledge. He is currently an International Consultant for various restaurant ventures. Our Accounting service will be contracted to a firm specializing in Restaurant accounting. The selected firm has experience with over 72 Restaurant launches. 19 . startup requirements. We have leveraged our membership with the National Restaurant Association to look at industry averages for this market segment for Restaurant startup and Operations.2.

We would also look to the partners' capital reserves as another source of funds. But as we are considering all contingencies. Based on the results. the city grant award confirmed our decision.900 and Rs10.000 will be used as cash injection for operWestern Islands on. Additional start-up costs (if any) will be shared equally by the limited partners. Instead of going in with a predefined business concept. 5. we have looked at this risk. or included in operWestern Islands ng cash flow. Our next step would be to approach our private investors for capital by extending their return on investment.We have worked with our Restaurant Consulting firm to validate our cost estimates to their industry knowledge. 6. 20 . interior decorWestern Islands ng (West Indian Artifacts). C. These costs include staff orientWestern Islands on and training. Funds needed for additional start-up will not be deducted from cash flow injection. How do we know we have selected the right location for this concept? Again we will draw on the Consulting group that has the expertise in site selection and lease negotiation. visibility. Limited Partners will invest Rs84. but we took a very objective approach with our concept.900 each.000 due at the beginning of Western Islands on. What if there is an additional need for Business Capital after the Restaurant has exhausted its 6-month buffer? Our intent is to be a self-sufficient business far in advance of the 6-month probation period. special opening promotion. as described in the Articles of Western Islands on. there are no guarantees with location. In all. Funds not used as specified in start-up expenses will be deposited in the reserve account. B.000 due at the end of the first month of Western Islands on. and facility cleaning and set-up. The additional Rs20. with initial funds of Rs64. We have accounted for an operational contingency budget that will be used to supplement any slow periods. and an additional Rs10. the Western Islands Restaurant concept was formed specific to Midtown Atlanta. FINANCIAL PLAN EXHIBITS START-UP COSTS A. we let the Market Analysis define the need. Site selection was based on space. PRE-OPEN Pre-opening costs include all costs associated with opening the doors on the first day. and functionality.

Daytime 480 Max/day Assumed number of patrons at start: Evening 66/day.00 40 137 120 Rs 590 Menu Price Per Plate: Gross Profit Per Meal: Rs 18.55 18.5% Rs 9.55 23.INCOME STATEMENT and CASH FLOW        Hours of Western Islands : 10:00 AM to 10:00 PM – 7 days per week Hours of Staffing: 9:00 Am to 11:00 PM 7 days per week Western Island Capacity: 75 Number of patrons: Evening 240 Max/day. Daytime 50/day Occupancy Rate at Beginning: 27% After 2 months: 62% PER PLATE EVENING DAYTIME Raw food costs Dry Goods Sundries Condiments Paper Goods Linen Labor with burden Marketing Allowance Other Expenses Total 160 25 17 65 55 30 28 130 180 Rs 700 120 25 25 65 55 0. Daytime 49/day Assumed number of patrons after 2 months: Evening 150/day.2% 21 .

Marketing Costs: 1. Radio Advertising: Drive time Rs130/60 second slot at 4 slots per day 2.85 each at 22. Fixed Assets includes lease amounts (Equipment and sign leases have low buy-outs). Printed Material: Coupons and brochures at area hotels at Rs. E.000 each partner) and initial supply purchases (inventory) for start-up. Expansion. B. Long-Term Liabilities includes exposed lease payments (1 year terms).800 each visit – scheduled 3 events Balance Sheet A. Current Liabilities includes unpaid (2 week) expenses and salaries. In addition Year 2 brings an increased sales and profit margin to sustain the addition of a full-time General Manager. Expansion (Option 1): Our overall goal to maintain Western Islands as a unique and eclectic concept. We have addressed this question at several levels: Expansion as a Business Goal We have set multiple financial goals to grow the success of the Western Islands concept. Expansion (Option 2): Throughout our business plan we have stayed focus that Western Islands would be successful as a larger venue. C. Payback & Exit Strategy In addressing this question we look at the Exit Strategy as a definition of our business vision and goals. the business has captured market share by the end of the first year. Balance sheet includes projections at start-up and at the end of 12 months operWestern Islands on. as well as a contingency in the event the business is unsuccessful. Based on projections. Current Assets includes starting capital of Rs30. the owners will look to launch a second restaurant concept. and compound the profit return for Western Islands Investors. D.000 (Rs10. Promotions: Area DJ on site at Rs4. By second quarter of Year 2.000 3. with greater sales capacity 22 .

4% of its optimum sales potential with the current seating and space allocation. we will first attempt to sell the operation and use the proceeds to clear all outstanding balances. Financial Solvency: The financial projections indicate that exit will be achievable over 3 years for the operating capital line of credit. Exit Strategy to Retire the Business We at Western Islands are committed to our concept and its viability. We will look at the private sale of the majority interest via A) Leveraged Buyout. we see Western Islands as meeting 80. Under a realistic scenario the Company should have over Rs70.and revenue potential. In the event that our venture cannot achieve profitability and retire the encumbrances. profit margins are increasing. In both cases. our interest is in delivering healthy profits to our Investors and Financial backers. If we are unable to sell the operation for sufficient proceeds we will forced to default whereby the SBA loan will be in senior standing. Our objective with the site selection and lease negotiation is to have the opportunity to expand the restaurant as a logical growth and profit plan.000 in cash in the bank after income taxes the second year. The entire financial debt would be retired by Year 7. At this stage the business debt is reduced. and Western Islands has established market share. however sometimes ventures do not fulfill their promise. Private Sale: We are in the business of making money. At the close of Year 3. We step into this venture with confidence and the success of our respective prior business efforts. 23 . or B) A larger Restaurant consortium. Sales and profit margins will be based on the restaurant valuation in Year 3. No one attempts a business anticipating failure.

Restaurant map 24 .

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