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Table of Contents
1.0 Executive Summary...............................................................................................................................1
Chart: Highlights..................................................................................................................................1
1.1 Obectives..........................................................................................................................................1
1.! "ission...............................................................................................................................................!
1.# $eys to Success..................................................................................................................................!
!.0 Com%any Summary...............................................................................................................................#
!.1 Com%any O&nershi%.........................................................................................................................#
!.! Start'u% Summary..............................................................................................................................#
Table: Start'u%.....................................................................................................................................(
..............................................................................................................................................................(
Chart: Start'u%......................................................................................................................................)
!.# Com%any *ocations an+ ,acilities.....................................................................................................)
#.0 Pro+ucts..................................................................................................................................................-
#.1 Pro+uct .escri%tion...........................................................................................................................-
#.! Com%etitive Com%arison...................................................................................................................-
#.# Sales *iterature................................................................................................................................../
#.( Sourcing............................................................................................................................................./
#.0 Technology......................................................................................................................................../
#.) ,uture Pro+ucts................................................................................................................................../
(.0 "ar1et 2nalysis Summary..................................................................................................................../
(.1 "ar1et Segmentation.........................................................................................................................3
Table: "ar1et 2nalysis........................................................................................................................3
Chart: "ar1et 2nalysis 4Pie5.............................................................................................................10
(.! Target "ar1et Segment Strategy.....................................................................................................10
(.!.1 "ar1et 6ee+s............................................................................................................................10
(.!.! "ar1et Tren+s...........................................................................................................................11
(.!.# "ar1et 7ro&th..........................................................................................................................11
(.# 8n+ustry 2nalysis.............................................................................................................................11
(.#.1 Com%etition an+ 9uying Patterns.............................................................................................11
(.#.! "ain Com%etitors.....................................................................................................................1!
(.#.# 8n+ustry Partici%ants.................................................................................................................1#
0.0 Strategy an+ 8m%lementation Summary...............................................................................................1#
0.1 Com%etitive E+ge.............................................................................................................................1#
0.! :alue Pro%osition.............................................................................................................................1(
0.# Sales Strategy...................................................................................................................................1(
0.#.1 Sales ,orecast............................................................................................................................1(
Chart: Sales "onthly.....................................................................................................................10
Table: Sales ,orecast.....................................................................................................................10
0.( "ilestones........................................................................................................................................1)
Table: "ilestones...............................................................................................................................1)
0.0 "ar1eting Strategy...........................................................................................................................1)
0.0.1 Sales Programs..........................................................................................................................1)
0.0.! Positioning Statement...............................................................................................................1-
0.0.# Pricing Strategy.........................................................................................................................1-
Page 1
Table of Contents
0.0.( Promotion Strategy...................................................................................................................1-
0.0.0 "ar1eting Programs..................................................................................................................1-
0.) Strategic 2lliances...........................................................................................................................1-
).0 "anagement Summary........................................................................................................................1/
).1 Organi;ational Structure..................................................................................................................1/
).! Personnel Plan..................................................................................................................................13
Table: Personnel.................................................................................................................................13
).# "anagement Team...........................................................................................................................13
).( "anagement Team 7a%s.................................................................................................................!0
-.0 ,inancial Plan.......................................................................................................................................!1
-.1 8m%ortant 2ssum%tions....................................................................................................................!1
Table: 7eneral 2ssum%tions..............................................................................................................!1
................................................................................................................................................................!1
-.! Proecte+ Cash ,lo&........................................................................................................................!!
Table: Cash ,lo&...............................................................................................................................!!
Chart: Cash.........................................................................................................................................!#
-.# $ey ,inancial 8n+icators..................................................................................................................!(
Chart: 9enchmar1s.............................................................................................................................!(
-.( 9rea1'even 2nalysis........................................................................................................................!0
Chart: 9rea1'even 2nalysis...............................................................................................................!0
Table: 9rea1'even 2nalysis...............................................................................................................!0
................................................................................................................................................................!0
-.0 Proecte+ Profit an+ *oss.................................................................................................................!)
Chart: Profit "onthly.........................................................................................................................!)
Table: Profit an+ *oss........................................................................................................................!-
................................................................................................................................................................!-
-.) Proecte+ 9alance Sheet...................................................................................................................!/
Table: 9alance Sheet..........................................................................................................................!/
-.- 9usiness <atios................................................................................................................................!/
Table: <atios......................................................................................................................................!3
Table: Sales ,orecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................!
......................................................................................................................................................................!
Table: 7eneral 2ssum%tions........................................................................................................................#
......................................................................................................................................................................#
Table: Profit an+ *oss..................................................................................................................................(
......................................................................................................................................................................0
Page !
Table of Contents
Table: Cash ,lo&.........................................................................................................................................)
......................................................................................................................................................................)
Table: 9alance Sheet....................................................................................................................................-
Page #
The =aterto&er
9.+ C6ecutive #ummary
.he Watertower is a full:service restaurantDcafe located in the #weet Auburn Bistrict of Atlanta.
.he restaurant features a full menu of moderately priced EcomfortE food influenced by African
and )rench cooking traditions, but based upon time honored recipes from around the world.
.he cafe section of .he Watertower features a coffeehouse with a dessert bar, magaFines, and
space for live performers.
.he Watertower will be owned and operated by .he Watertower LL1, a Georgia limited liability
corporation managed by Bavid 5. atton ,H, a resident of the Cmpowerment Ione. .he
members of the LL1 are Bavid 5. atton ,H $;+3& and the Jistoric Bistrict Bevelopment
1orporation $*+3&.
.his business plan offers financial institutions an opportunity to review our vision and strategic
focus. ,t also provides a step:by:step plan for the business start:up, establishing favorable
sales numbers, gross margin, and profitability.
.his plan includes chapters on the company, products and services, market focus, action plans
and forecasts, management team, and financial plan.
1hart! Jighlights
9.9 Kbjectives
9. #ales approaching and surpassing L9.< million by the end of the first year.
*. .argeting and maintaining a net profit of at least 9M3 by the second year.
N. .o cultivate monthly sales to reach L9>=,+++ by the end of the fourth month of operation,
and L**+,+++ monthly by the end of the first year of operation.
Page 1
The =aterto&er
9.* Oission
.he Watertower concept is built upon the success stories of AtlantaPs many casual dining and
coffeehouse venues. Located in the #weet Auburn Bistrict of Atlanta adjacent to the #tudiople6
on Auburn residential loft development, .he Watertower will provide accessible and affordable
high -uality food, coffee:based products, and entertainment to the thousands of residents and
hotel visitors located within a five:mile radius. ,n time, .he Watertower will establish itself as a
EdestinationE of choice to the many residents of the greater Atlanta metropolitan area, as well
as numerous out:of:town visitors.
.he establishment will provide a Ecomplete, high:-ualityE evening e6perience for those
searching for something that is rapidly becoming popular among Atlanta diners. 5ot only will
patrons be able to dine on EcomfortE food based upon time honored recipes from the world
over, they will do so in a facility containing ample patio space for a favorite pastime of AtlantaPs
residents! alfresco dining. atrons will also have the option of enjoying coffee, desserts, and
live entertainment in .he WatertowerPs coffeehouse or, a rela6ed game of bocci in the gardens
located adjacent to the patio space.
.he cafePs aim is simple. ,t will provide a completely sophisticated, sensual, yet casual dining
andDor coffeehouse e6perience for the many Atlantans and visitors who fre-uent the cityPs
casual dining spots and entertainment venues. ,t will be an affordable venture for patrons, one
that will encourage them to return on many occasions. .he menu will feature hearty fare of the
type that is fre-uently out of the reach of the typical young professional...out of reach because
time fre-uently prevents herDhim from cooking hearty meals like those featured on our menu.
)inally, and -uite significantly, .he Watertower will provide a much needed neighborhood:based
retail food operation that is currently unavailable to the southern end of AtlantaPs Kld )ourth
Ward neighborhood. 5ot only is it projected that the business will generate *9 new jobs, the
partnership responsible for creating .he Watertower will generate additional revenue specifically
dedicated to assisting the Jistoric Bistrict Bevelopment 1orporation in its efforts to bring
affordable housing, new jobs, and commercial activity to the Kld )ourth Ward.
9.N Qeys to #uccess
.he keys to success in this business are!
9. roduct -uality! )ood, coffee:based beverages, and entertainment are our products. .hey
must be of the high -uality and value.
*. #ervice! Kur patrons are paying to have a good time. .heir e6perience will suffer if service
is not of the highest caliber. Cach member of the staff will be courteous, efficient, and
attentive.
N. Oarketing! We will need to target our audience early and often. While the business is
located in a central and accessible location, many people will have to be re:introduced to
the neighborhood surrounding the Oartin Luther Qing 5ational Jistoric #ite and Auburn
Avenue.
M. Oanagement! We will need to have a firm grasp on food, beverage, and labor costs. .he
diningDentertainmentDcoffeehouse e6perience must be delivered in a fashion that will not
only inspire repeat business, but encourage word:of:mouth recommendations to others.
roper inventory, employee management, and -uality control is key.
Page !
The =aterto&er
*.+ 1ompany #ummary
.he Watertower is a bistro and coffeehouse facility located in a renovated house immediately
adjacent to the #tudiople6 on Auburn residential loft development. .he Watertower derives its
name from an historic *++R foot tall watertower located on the grounds of the restaurant, and
immediately across the street from the main entrance of the #tudiople6 facility. Architecturally,
this watertower will serve as a beaconDlocator for our facility as it towers over the southern end
of the Kld )ourth Ward neighborhood and the eastern end of the #weet Auburn residential and
business district.
.he facility is bordered by Auburn Avenue to the south and ,rwin #treet to the north.
7esidential liveDwork townhouses are planned for construction across the street from, and
adjacent to, .he Watertower on ,rwin #treet.
*.9 1ompany Kwnership
.he Watertower is a privately held limited liability corporation wholly owned by Bavid 5. atton
,H$;+3& and the Jistoric Bistrict Bevelopment 1orporation $*+3&.
*.* #tart:up #ummary
.he start:up costs for .he Watertower cafe can be found in the chart and table below.
#ince the business property is located in an enterprise Fone, property ta6es on the property are
abated for the initial years covered by the business plan. .he ownerDgeneral manager will be
responsible for maintaining insurance that will cover the loss of the building and all of its
contents, as well as insurance covering business interruption and death or injury to himself.

Page #
The =aterto&er
.able! #tart:up
Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $500
Brochures $500
onsultants $!,500
"nsurance $!,#$5
%e&t Ser'ice $5,000
Licenses()ax(%eposits $!2,000
Expense* Equipment $+,,,00
Employee(-ayroll $2,,.+$
/ccounting $!,000
So0t 1pening Expense $$,000
2ran* 1pening /*'ertising $+,000
3isc. Expenses $2,000
)otal Start-up Expenses $4,,,#4
Start-up /ssets
ash Require* $!00,000
Start-up "n'entory $,!,!5#
1ther urrent /ssets $0
Long-term /ssets $545,0$0
)otal /ssets $#5,,!4#
Total Requirements $.52,.#,
Page (
The =aterto&er
Table: Start'u% ,un+ing
Start-up Funding
Start-up Expenses to 5un* $4,,,#4
Start-up /ssets to 5un* $#5,,!4#
)otal 5un*ing Require* $.52,.#,
/ssets
6on-cash /ssets 0rom Start-up $,5,,!4#
ash Requirements 0rom Start-up $!00,000
/**itional ash Raise* $0
ash Balance on Starting %ate $!00,000
)otal /ssets $#5,,!4#
Lia&ilities an* apital
Lia&ilities
urrent Borro7ing $24,.50
Long-term Lia&ilities $,45,+44
/ccounts -aya&le 81utstan*ing Bills9 $24,,2#
1ther urrent Lia&ilities 8interest-0ree9 $0
)otal Lia&ilities $#5$,.#,
apital
-lanne* "n'estment
"n'estor !8:ome Equity(-re-*e'elop. "n'est9 $,$,000
"n'estor 28-re-*e'elopment "n'estment9 $+$,000
1ther $0
/**itional "n'estment Requirement $0
)otal -lanne* "n'estment $4.,000
Loss at Start-up 8Start-up Expenses9 8$4,,,#49
)otal apital $!,+2!
)otal apital an* Lia&ilities $#5,,!4#
Total Funding $.52,.#,
Page 0
The =aterto&er
1hart! #tart:up
*.N 1ompany Locations and )acilities
.he Watertower will be located in a newly renovated facility designed by the architectural firm
of 7ichard 7auh S Associates, Atlanta, GA.
.he facility will be divided e-ually between the cafeDrestaurant function and the
coffeehouseDentertainment function. .he restaurant will feature dining room seating for
appro6imately 9++ patrons and fle6ible indoorDoutdoor patio seating for an additional M+
patrons. .he cafeDcoffeehouse will provide a full:service dine:in and carry:out coffee:based
beverages, as well as a dessert bar. .he coffeehouseDcafe portion of the business will also
contain a full:service bar, a small entertainment stage, and niche magaFines and newspapers
available for purchase. .he coffeehouse will maintain ample indoorDoutdoor seating under a
covered patio space shared with the restaurant.
.he facilityPs perimeter will feature a simple garden and bocci courts which will provide
comfortable waiting areas during the warm weather months.
)inally, an historic *++R foot watertower forms the centerpiece of the grounds immediately
adjacent to the proposed business. .his watertower, constructed in 9<+>, features
e6traordinary cathedral:like interior space. ,t is our hope that our construction plans will
support dramatic lighting of the tower after sundown, creating a rather visible nighttime
landmark for northeast Atlanta.
Page )
The =aterto&er
N.+ roducts
.he Watertower is a cafeDrestaurantDcoffeehouse venue that sells moderately:priced food to an
upscale casual dining market. .he venue features brewed coffee and espresso:based
beverages, granita ices, fruit smoothies and juices, and other beverages typically associated
with a coffee shop. A dessert bar will serve a range of freshly prepared desserts, as well as
baked goods associated with breakfast.
Luncheon offerings contain both carry:out and dine:in menu selections, while evening hours will
accommodate full:service dining and #panish tapas $appetiFer& service, a full:service bar and
light, weekend, live entertainment.
7eflecting a target niche market, a limited selection of out:of:town newspapers, as well as art,
architecture, cinema, design and lifestyle magaFines will be sold. Additionally, the venue will
feature art and products made by #tudiople6 artists, providing a cross:selling opportunity.
N.9 roduct Bescription
.he WatertowerPs menu will feature a selection of pan:ethnic dishes influenced by African and
)rench cooking traditions. Whether #outh American, 1aribbean, Oediterranean or African:
American, the menu items will have an identifiable African origin andDor influence.
Generally, the dishes will offer variations on EcountryE cooking themes. 'raised and smoked
meats and poultry, seafood, and vegetarian offerings will change seasonally.
Binner items will only be available in the dining room section of the establishment. #tandard
appetiFerDtapas offerings will be available in the coffee shop and patio area through the late
evening.
#pecialty coffees, espresso:based drinks, desserts and pastries, and light sandwiches will be
available in the coffee shop.
5iche:magaFines and newspapers will be readily available for purchase by the venuePs patrons.
Ousical offerings will span jaFF, Latin, and urban musical traditions. .he performance space will
also offer ample opportunities for space for an artist, poet, reader, etc. When not in use as a
stage, the space will double as a customer seating area with tables and chairs.
N.* 1ompetitive 1omparison
.he WatertowerPs closest competitors $relative to location& are HirginiaPs $,nman ark&, #otto
#otto $,nman ark&, .he 7oman Lily, and .humbPs Ap Biner $Kld )ourth Ward&, 1abbagetown
Grill $1abbagetown&, Cureka $1abbagetown&.
HirginiaPs, .he 7oman Lily, 1abbagetown Grill, and Cureka feature fairly similarly priced menus
and menu offerings with a notable traditional American southern influence. .he 7oman Lily is
notably more EdownscaleE from Cureka and 1abbagetown Grill. HirginiaPs decor and menu
offerings strikes s-uarely in between downscale casual and upscale casual. #otto #otto is an
upscale casual dining establishment featuring finer northern ,talian cuisine $the restaurant is
currently undergoing a significant e6pansion&.
Page -
The =aterto&er
5one of these establishments features a traditional coffeehouse atmosphere or live or recorded
evening entertainment.
7elative to the location of these establishments, .he Watertower is centrally geographically
located. ,tPs location will easily allow for patrons from these other establishments to finish an
evening with dessert, coffee, drinks, andDor dancing.
N.N #ales Literature
A sample copy of a menu to be featured at .he Watertower is attached in an appendi6 at the
end of this document.
**Some supplemental materials are not available for this sample plan.
N.M #ourcing
.he Watertower will buy from a select group of Atlanta restaurant suppliers and li-uor
distributors. Birect sales relationships will also be established with fresh produce, meat, and
seafood distributors based at the #weet Auburn 1urb Oarket. 5egotiations are also underway to
establish direct relationships with seafood suppliers on the )lorida Gulf coast.
.he cafe will receive substantial discounts from artists and artisans participating in the
manufacture of signature pieces of dinnerware, furniture, lighting, and sculpture to be featured
at .he Watertower. As part of a marketing agreement with #tudiople6 merchants, the business
will prominently feature their products in e6change for these discounted fi6tures and
e-uipment.
N.2 .echnology
.he Watertower logo is protected by federal trademark laws. All of our menu creations will not
necessarily have the same protections, however, when possible, popular Etrade:namesE will be
protected. .he business of .he Watertower is not dependent upon process technology or
patentable inventions.
N.> )uture roducts
While .he Watertower will initially focus upon the dining, coffeehouse, and entertainment
functions located on the immediate grounds of the establishment, future e6pansion efforts will
focus upon providing full:scale catering for #tudiople6 events as well as other off:site venues.
.he WatertowerPs owner has established relationships with Atlanta law firms and Cmory
Aniversity, these institutions offer many opportunities for cateringDspecial event service.
M.+ Oarket Analysis #ummary
.he casual diningDfull service restaurant market is a L9++R billion industry in the Anited #tates,
with annual increases in revenue outpacing 23 yearly. Oore and more people are choosing to
eat out. Kne of the most common reasons cited by restauranteurs and industry associations is
that women have joined the workforce in record numbers. ,n fact, from 9<22 to 9<<2, the
dollars spent for food away from home rose by almost *+3, coinciding with the number of
women entering the work force. With two income earners per household, neither person may
have time to fi6 meals. #ince the 9<2+s, commercial food service sales have continued to rise
as more and more people find that eating away from home suits their lifestyles.
Page /
The =aterto&er
#pecialty coffee is a L2R billion per year industry in the Anited #tates, and has grown at a rate
in e6cess of *+3 per year in the last decade. .hat sustained growth is e6pected into this
decade according the the #pecialty 1offee Association of America.
Atlanta in the mid:9<<+s had only a handful of specialty coffee retailers! #an )rancisco
7oasters, 1afe Biem, 1afe ,ntermeFFo, Aurora 1offee, T. OartineF, and others. 5ow, coffee
roasters, shops, and suppliers take more than two full pages in the Yellow ages. #tarbucks
announced last year that it e6pects to open >++ additional stores in *+++.
M.9 Oarket #egmentation
.he "Market Opportunity Analysis for Residential and Commerial !ses alon" the Auburn
Avenue Corridor#" written by 7obert 1harles Lesser S 1o., makes the following points about
food retail for .he Watertower at the #tudiople6 on Auburn site!
#tudiople6 is in pro6imity to new and e6isting residences, including the affluent, and
immediately adjacent ,nman ark neighborhood@ a restaurant would be a destination space
within the neighborhood.
A restaurantDcoffeehouse would provide one of the best food and beverage opportunities for the
more than 2++,+++ annual visitors to the Oartin Luther Qing Jistoric Bistrict.
Location is close to employment centers or within retail corridor.
#tudiople6 patrons and residents will provide primary support@ secondary support will come
from area residents and hotel visitorsDconventioneers.
1ross:selling opportunities e6ist with coffee beverages and magaFines.
.he coffee shop and the magaFines sold there will be positioned to fill a niche demand for
people interested in art, architecture, design photography, and home and garden pursuits.
.arget market audience is a mi6 of #tudiople6 residents, artists, patrons, intown residents,
downtown hotel visitorsDconventioneers, and workers.
.he immediate market area is within a four:mile radius of .he Watertower and #tudiople6 and
includes the neighborhoods of #weet Auburn, )airlie oplar, Bowntown, Grant ark, ,nman
ark, oncey Jighlands, Hirginia Jighland, Little )ive oints, Lake 1laire, Oidtown, Cast Atlanta,
1andler ark, Oorningside, 1abbagetown, Bruid Jills, and adjacent neighborhoods.

.able! Oarket Analysis
Market Analysis
;ear ! ;ear 2 ;ear + ;ear $ ;ear 5
-otential ustomers 2ro7th /2R
/tlanta /rea Resi*ents !0< 4!,5,. !00,#25 !!0,#4. !2!,.#. !+$,0,, !0.00<
:otel(on'ention(=isitors !5< +2,!00 +,,4!5 $2,$52 $.,.20 5,,!$+ !5.00<
%o7nto7n >or?ers 20< 2+,+50 2.,020 ++,,2$ $0,+$4 $.,$!4 20.00<
Total !2..#< !$#,0!. !,5,,,0 !.,,.#$ 2!!,0$# 2+.,,2. !2..#<
Page 3
The =aterto&er
1hart! Oarket Analysis $ie&
M.* .arget Oarket #egment #trategy
.he Watertower will appeal to urban professionals residing in the targeted intown
neighborhoods, the many downtown hotel visitorsDconventioneers, and workers who desire a
sophisticated yet casual eating, coffeehouse entertainment e6perience. .he business will also
meet an under:served need for a pedestrian:friendly diningDcoffeehouse establishment for the
numerous residents in the area, particularly newcomers to the immediate area.
Oembers of this market segment dine out fre-uently, appro6imately three times or more per
week. .he market segment is largely made up of singles between the ages of *2 and M+,
married couples in the same age bracket without children, graduate and professional students
attending area universities, tourists, and conventioneers.
M.*.9 Oarket 5eeds
Kur customerPs dining and entertainment needs are critical to the success of .he Watertower.
As a supplier of a full:service dining e6perience, .he Watertower must appeal to people who are
interested in integrating our type of cuisine regularly into their diningDfood purchase
e6periences. Ooreover, we must also appeal to those customers who regularly take advantage
of AtlantaPs coffeehouse andDor evening entertainment scene.
Kur customers are well educated and interested in partaking of new e6periences. Qeeping the
menu and the entertainment offerings EfreshE will remain a constant challenge to the business.
#egments of the target market tend to dine out, visit coffee shops, and seek evening
entertainment fre-uently. .hey tend to choose comfortable, affordable venues, and repeat
appearances at places that offer familiar scenery with new twists.
Page 10
The =aterto&er
M.*.* Oarket .rends
Atlanta is e6periencing a trend toward the creation of evening diningDentertainment venues.
.hey are popular and gaining more recognition. Cvidence of this is found in local news and
magaFine coverage. .hese venues are finding new homes in the areas close to andDor adjacent
to downtown.
.he cityPs burgeoning music scene is growing and in need of more venues to accommodate the
mainstream jaFF, acid jaFF, Latin, and live dance music artists that are choosing Atlanta as
home for their production efforts.
.he market opportunity for coffee shop establishments has never been better in this area of
Atlanta. .he immediate area surrounding the business venue is undergoing a building
renaissance as many residents chose to move into or return to the inner city.
M.*.N Oarket Growth
,ntown Atlanta is currently in the middle of a building and population e6plosion. Young singles
and couples are choosing to reject long commutes in favor of living closer to their work and
recreational venues. With the e6tra time that comes from being in a vibrant growing city with
an active nightlife, intown neighborhoods that were formerly dotted with a limited number of
night spots have seen their neighborhoods burgeon with new venues.
.he section of Oidtown Atlanta along 9+th #treet near eachtree #treet and iedmont Avenue
has e6perienced remarkable growth in itPs nightlife scene. After a devastating demolition in the
mid 9<;+s of buildings located in and around this area to make way for a mall that was never
built, the area is featuring a resurgence. .he development is rapidly moving south along Tuniper
#treet and eachtree #treet.
As the areaPs population increases and the frustration with 'uckhead congestion grows, people
are opting for dining, coffeehouse, and entertainment venues closer to and in Bowntown
Atlanta.
M.N ,ndustry Analysis
.he restaurants and coffeehouses that make up the community of establishments in the area
surrounding .he Watertower are -uite diverse. .heir concepts range from typical fast
foodDchain venues to e6pensive fine dining establishments. Jowever, the predominating nature
of the immediately surrounding restaurants and coffee shops is casualDupscale.
M.N.9 1ompetition and 'uying atterns
.he general nature of the competition is typically a =+ to 92+ seat restaurant with outdoor
seating. .he menu prices for entreePs range from L=.++ to over L*2.++. All of the surrounding
establishments serve, at a minimum, beer and wine. Oost serve li-uor:spirits as well.
#ome of these venues have added live entertainment to their offerings, however, most are
prevented by their facilities from e6panding into this area of service. Oost of the live
entertainmentDdancing venues are located in Oidtown and 'uckhead to the north with a few
more venues located west in Bowntown Atlanta, and to the east in Little )ive oints.
Page 11
The =aterto&er
While historically 'uckhead has remained a center for restaurants and entertainment venues,
Hirginia Jighland, Little )ive oints, and Oidtown have grown tremendously in their appeal to
diners and partygoers. With the tremendous rise in intown property values, a residential
building boom, and a decrease in crime statistics, venues closer to downtown have seen a
remarkable rise in business.
A busy population of urban professionals, intent upon working hard and playing hard, has fewer
and fewer opportunities to cook at home. .hese people eat out often and do so with friends.
'ecause this population tends to eat out far more than the typical population, they look for
value. While they might not regularly fre-uent a restaurant featuring entree prices of L9=.++
and higher, they will repeat appearances at restaurants featuring entrees ranging between
L=.++ and L9>.++.
Oany of these patrons also seek entertainment venues on the weekends that are close to their
dining venues and homes. Jistorically, live jaFF and Latin music venues in northeast Atlanta
have been unavailable to patrons. .he market currently suggests that such a venue on Auburn
Avenue is not only desired by the populations fre-uenting restaurants and clubs in northeast
Atlanta, it is suggested that it is needed. As 'uckhead traffic and appeal has grown beyond the
capacity of the neighborhood, patrons are now looking for EeasierE places to go out, eat, and
have fun..he parking and traffic woes of 'uckhead have grown to notorious proportions.
Oidtowners and residents in adjacent neighborhoods would much rather patroniFe venues
closer to downtown. .he Watertower offers them an attractive
diningDentertainmentDcoffeehouse option.
M.N.* Oain 1ompetitors
&oca &'na( Located in the heart of Oidtown, this establishment features a Latin house band
which is often a group of four 'raFilian musicians. .he menu is primarily a #panish tapas style
menu with other entree offerings. .he venue also features a small dance floor.
While its location near two longstanding Atlanta nightclubs, 'ackstreet and .he Armory, would
seem to offer considerable overflow, the restaurant is not easily seen from the street and
parking is at a premium. ,ts concept has received very favorable press in Atlanta.
)in )ang Cafe( Located on #pring #treet, just north of AtlantaPs landmark Harsity restaurant,
the club features a limited menu and a regular offering of acid jaFF, hip:hop, and 7S' acts.
.he location is very Eout:of:the:wayE and can be perceived as a marginally safe area.
5evertheless, the club remains wildly popular given the parking difficulties, its small siFe, and
itPs rather hidden location. ,t has become identified nationally as a residence of AtlantaPs
growing African:American music scene.
*aya( A bistro and large scale nightclub located on eachtree #treet in Oidtown, Qaya boasts
an impressive array of entertainment, from Latin music, to hip:hop, disco, and live bands. .he
restaurant is located on the eachtree #treet side of the club. ,n the evening, the restaurant
generally features a dj or a live band, while the large club portion in the rear of the
establishment features a large dance floor and a dj.
,t is very popular and regularly features large crowds. Qaya maintains limited parking
immediately adjacent to the club.
Page 1!
The =aterto&er
Cosmopolitan( 1osmopolitan is located in a converted house in Oidtown. ,t is a very small
venue featuring a casual:upscale dining menu. .he club is converted to a cocktail barDnightclub
in the evening with a small dance floor. ,t has no designated parking.
5ewly arrived to the Atlanta scene, the club features long lines in the evenings. Uuite often the
club is not able to accommodate the numbers of people interested in visiting the establishment.
The Som+er ,eptile( Located in downtown Atlanta on Oarietta #treet, the club features live
rock bands and a cajun oriented menu. .he clientele is growing steadily as the clubPs reputation
grows. ,t offers an alternative to the traditional Atlanta nightlife scene.
.he #omber 7eptile is part of the growing renovation trend taking place in the warehouse
district along Oarietta #treet just west of Bowntown Atlanta. While it naturally draws from the
nearby residents, it competes directly with the rock music venues located in Little )ive oints on
the east side of the Atlanta.
Cafe-Apres .iem( 1afe Biem, the first coffeehouseDrestaurant to be located south of once
Be Leon Avenue on the northeast side of Atlanta, has enjoyed e6traordinary success. )ormerly
located on Jighland Avenue, the business recently $and reluctantly& located to a strip mall in
midtown after a lengthy dispute with its former landlord. ,tPs departure from the immediate
area provides an e6traordinary opportunity for .he Watertower to capitaliFe on an even greater
unmet need for a casual restaurantDcoffeehouse e6perience.
/ighland Bagel-Cari+o' Coffee( Located on 5orth Jighland Avenue, this is a traditional
corporate coffeehouse which provides morning coffee and sandwich service. .he owners are
currently e6panding to provide evening service.
M.N.N ,ndustry articipants
Cstablishments which combine dining and entertainment functions are a smaller segment of the
overall, Bowntown, Oidtown, Hirginia Jighland, Little )ive oints dining market. .here are
appro6imately five venues that combine these functions and are regularly recogniFed by Atlanta
media outlets as EhitsE in the growing Atlanta nightlife scene.
2.+ #trategy and ,mplementation #ummary
.he WatertowerPs strategy is based upon targeting and serving!
.he atypical Atlanta intown resident. .his urban professional works long hours and has
relatively little time to cook at home. #heDhe has an active social life and spends a
substantial amount of disposable income maintaining it.
.he many downtown businesses which regularly use restaurant dining as an function of
conducting business.
.he tourist and convention populations centered in downtown venues.
2.9 1ompetitive Cdge
.he Watertower maintains a competitive edge in several significant areas!
.he facilityPs location puts it into close pro6imity to substantial populations of affluent
Atlantans.
Page 1#
The =aterto&er
.he owner, a 9>:year:resident of Atlanta, was educated in and works professionally in
northeast Atlanta. Jis early work e6perience included a substantial period working within a
casualDupscale restaurant in the mid:to:late 9<;+s in Hirginia Jighland. As the Bean of
#tudents at Cmory Aniversity #chool of Law, he has conferred over 9,N++ law degrees
during his tenure, most of them have remained in the Atlanta area. Jis position at Cmory
also re-uired him to manage significant catering budgets. .he owner, through his business,
academic, and community activities, maintains a substantial Atlanta:based network of
professionals.
.he facilityPs construction will easily allow for fle6ible diningDcoffeehouseDentertainment
options making it attractive to numerous populations.
.he facilityPs location in an Cmpowerment Ione and local Cnterprise Ione provides
significant ta6 advantages.
2.* Halue roposition
We think our value proposition is -uite clear and -uite easily distinguished from most others in
the market. We offer affordable and accessible menu items and entertainment as measured by
their inherently natural value, at an affordable price that will encourage regular visits.
2.N #ales #trategy
.he first category of our sales strategy is to establish and maintain a position with our primary
constituents! intown Atlanta residents within a M mile radius of .he WatertowerPs location. We
will depend upon keeping these people happy with our food and beverage products and
entertainment options.
Kur second strategy is to utiliFe the downtown hotelDconvention business through developing
and maintaining close relationships with the planners of upcoming conventions and their
respective attendees in order to create a Eprivate functionDpartyE option for corporations visiting
Atlanta during the early part of the week, as well as encouraging individual visits by
conventioneers later in the week. .his strategy will also target the many hotel concierges who
are available to promote dining options located within two miles of downtown hotel venues.
Kur third strategy targets the more than 2++,+++ visitors to the Oartin Luther Qing 5ational
Jistoric #ite. .his segment provides mainly lunch business.
)ourth, the restaurant will target sales to downtown and midtown businesses $particularly law
firms& for regular business lunch and dinner entertaining.
2.N.9 #ales )orecast
Kur sales forecast assumes no change in cost of prices, which is a reasonable assumption for
the last few years.
We are e6pecting to increase sales from L*.+ million at the end of *++*, to L*.2 million by the
end of *++M. .he growth forecast is in line with the restaurants in the area and is tied to the
projected increase in population of the immediate area.
.he combined sales figures $across all sale items for the restaurant and coffee shop& presume
an average of *.2 EturnsE per day for a 922 seat dining room with an average tab of L9*.2M.
.he business will be open an average of *> days per month.
Page 1(
The =aterto&er
.he projections show increases in!
5ovember, resulting from Jalloween party planning for Cmory Aniversity graduate and
professional students.
Tanuary, based upon corporate 1hristmas party and 5ew YearPs Cve programming.
Oay, as a result of catering programming scheduled for Cmory Aniversity 1ommencement
functions.
1hart! #ales Oonthly
.able! #ales )orecast
Sales Forecast
;ear ! ;ear 2 ;ear +
Sales
Restaurant $!,42,,2!# $2,0#.,!+. $2,2.5,45!
o00eehouse $2,0,+.$ $2#+,$0+ $2.#,0#+
)otal Sales $2,!.,,,0! $2,+5!,5$! $2,5#+,02$
%irect ost o0 Sales ;ear ! ;ear 2 ;ear +
Restaurant $!,2#0,!4, $!,2##,0!0 $!,+$0,.,0
o00eehouse $#.,!!2 $0 $0
Subtotal Direct Cost of Sales $!,+$.,+0. $!,2##,0!0 $!,+$0,.,0
Page 10
The =aterto&er
2.M Oilestones
.he accompanying table lists important program milestones, with dates and managers in
charge, and budgets for each. .he milestone schedule indicates our emphasis on planning for
implementation.
What the table doesnPt show is the commitment behind it. Kur business plan software includes
complete provisions for plan:vs.:actual analysis, and we will be holding monthly follow:up
meetings to discuss the variance and course corrections.
.able! Oilestones
Milestones
3ilestone Start %ate En* %ate Bu*get 3anager %epartment
Leasehol* Buil*out !!(!(2000 2(!(200! $+0,000 %a'i* -atton 17ner
Equipment "nstallation !(!(200! 2(!(200! $#5,000 %a'i* -atton 17ner
3ar?eting -lan !(!(200! 5(!(200! $$,500 in*y /&el 3ar?eting
5ixture(ta&le onstruction !2(!(2000 5(!(200! $+,500 %a'i* -atton %6-(-)
Begin onstruction -rocess !0(!(2000 +(!(200! $0 3.Syphoe :%%
%esign 3anagement 5(!(2000 !2(!(2000 $0 R.Rauh R./rchitects
Legal Research !(!(2000 $(!(2000 $!,000 -atton(3oser Legal
"nterior %esign !0(!(2000 #(!(2000 $0 @.Bro7n .oncepts
Entertainment Research 2(!(2000 !2(+!(2000 $0 %a'i* -atton 17ner
-urchasing Research !(!(2000 !0(!(2000 $0 %a'i* -atton 17ner
Totals $!!$,000
2.2 Oarketing #trategy
.he most important element of our marketing strategy is the delivery of a -uality product. Kur
food, beverage, newspaperDmagaFine, and entertainment products must first sell themselves
through word of mouth.
5e6t, the packaging of .he WatertowerPs concept and e6ternal messages have to fit our
positioning. We offer an upscale feel without a re-uired EpinchE in your wallet. We then
communicate this through the free weekly media $Creative $oafin", Southern %oie, and
others&, radio advertising on particular jaFF, acid:jaFF, Latin, and dance:oriented music shows,
and traditional public radio sponsorships.
.hrough establishing relationships with the concierges of the local hotels and with the Atlanta
1onvention and Hisitors 'ureau, we will then attempt to create opportunities for visitors to the
city to look forward to e6periencing .he Watertower.
2.2.9 #ales rograms
#pecific #ales rograms!
9. #pecial Cvent #ales! Bevelop opportunities to sell to companies for private parties and
special events. .he specific responsibility is with the owner with assistance from the
manager on staff and 7eal World 1ommunications.
*. Ousic 7elated #pecial Cvents! Bevelop relationships with artists and promoters in the area
to feature artists rising in popularity, either through 1B release parties or live performances.
Page 1)
The =aterto&er
N. ArtistD#tudiople6 #pecial Cvents! Bevelop opportunities to host or cater artist openings.
2.2.* ositioning #tatement
)or our most important target market, local residents who crave new and sophisticated
diningDentertainmentDcoffeehouse options, .he Watertower satisfies the need for a casual, all:
in:one dining and entertainment e6perience. Anlike our key competition, .he Watertower is
designed to handle this need from its inception, starting with the general construction of the
facility. .he general food programming, coupled with the entertainment programming, will offer
the customer an e6perience unlike anything he or she has currently available.
2.2.N ricing #trategy
Kur food, drinks, and entertainment options are priced to give us an attractive margin while at
the same time offering value to the consumer. We want repeat business. We also want the
e6perience to remain fresh. .herein lies why the food, beverages, and musicalDentertainment
programming will be relatively fle6ible.
A sample menu is included in an appendi6.
**Some supplemental materials are not available for this sample plan.
2.2.M romotion #trategy
We will promote our company name and label almost more than the product itself, because to
be successful we have to stand for brand:name integrity, e6cellent menu offerings, and first
class entertainment and fun. .herefore, our promotion strategy includes focusing on events and
messages that match!
9. Kur participation in the 1hocolate #oul and )unk TaFF QafeP special promotions and the
#weet Auburn and ,nman ark festivals is important because these are events that bring
our target market together.
*. Kur participation in local radio and specifically targeted '# shows on the local stations.
N. ublic relations programs focusing on related opportunities, guest appearances on local
radio, etc.
M. Advertising placed carefully, in mostly:alternative channels like Creative $oafin"# Southern
%oie# university newspapers, etc.
2.2.2 Oarketing rograms
Kur marketing program will be handled by 1indy Abel of 7eal World 1ommunications. With an
annual budget of L9>,+++, and with a milestone beginning in August, Os. Abel will assist with
the initial marketing programs and ongoing efforts to increase the visibility of .he Watertower
and its offerings.
2.> #trategic Alliances
We depend on our alliances with personnel at Cmory Aniversity, the Jistoric Bistrict
Bevelopment 1orporation, the Atlanta C6ecutive 5etwork, .he Atlanta 1onvention and Hisitors
'ureau, and local music promoters to generate continuous leads for new sales and promotional
opportunities. We need to make sure that the personnel of these allies are especially aware of
our support and reciprocation.
Page 1-
The =aterto&er
>.+ Oanagement #ummary
.he Watertower is owned by a limited liability corporation including Bavid 5. atton ,H and the
Jistoric Bistrict Bevelopment 1orporation. Or. atton will also operate as general
managerDmanaging partner. 1rucial employees include an additional manager who will assist in
maintaining and reviewing operations of the restaurant and the entertainment venueDbar, and a
chef who will manage kitchen operations.
Additionally, an assistant managerDsenior server and a sous:chefDline cook will perform
secondary management functions.
art:time personnel will be hired to handle bartending, serving, and dishwashing functions.
>.9 KrganiFational #tructure
.he Watertower is owned by Bavid 5. atton ,H $;+3& and the Jistoric Bistrict Bevelopment
1orporation $*+3&. Or. atton who will also operate as general managerDmanaging partner.
An additional manager $to be hired& will assist in maintaining and reviewing operations of the
restaurant and the entertainment venueDbar.
A chef $to be hired& will manage kitchen operations and be crucial to maintaining food inventory
stability and assistance in menu development.
An assistant managerDsenior server $to be hired& who will be a salaried employee, will provide
regular table service as well as assistance to the manager and the general manager.
A sous:chefDline cook $to be hired& will perform secondary management functions in the kitchen
as well as provide assistance to the chef in main kitchenDcooking functions.
art:time personnel will be hired to handle bartending, serving, and dishwashing functions.
.he marketing, and accounting function will be handled by independent
contractorsDconsultants.
Page 1/
The =aterto&er
>.* ersonnel lan
.he personnel plan calls for hiring 2 full:time salaried employees at start:up. art time
barristasDbartenders will have to be hired to manage appro6imately 9N2 hours of operation per
week, serversDwaiters will have to be hired for appro6imately *+N hours of operation per week,
and dishwashers will have to be hired to handle appro6imately >* hours of operation per week.
Any additional hires will be part time and devoted to the e6pansion of any catering function, as
well as increased capacityDoperation of a private party function.
Cmployee salaries are as follows!
Position Salary
KwnerDGeneral Oanager LN<,<++
1hef LN+,+++
Oanager L*;,+++
#ous:chefDLine 1ook L*N,+++
Assistant OgrD#enior #erver L9M,2>+ R .ips
'arristasD'artenders L=DJour
#ervers LNDJour R .ips
BishwashersD'ussers L>DJour
.able! ersonnel
Personnel Plan
;ear ! ;ear 2 ;ear +
17ner(3anager $+4,44, $+4,44, $+4,44,
Employees $2.2,0!2 $2.2,0!2 $2.2,0!2
)otal -eople 2! 2! 2!
Total Payroll $+22,00. $+22,00. $+22,00.
>.N Oanagement .eam
.a%id 0. Patton I1 " 2wner and 3eneral 4anager( Or. atton worked for > years as the
Bean of #tudents for Cmory Aniversity #chool of Law. While working at Cmory, he was
responsible for special event planning and catering, particularly related to student centered
events. Or. atton is the 1hairman of the 'oard of Birectors of the Jistoric Bistrict
Bevelopment 1orporation, an organiFation devoted to the redevelopment of the properties and
neighborhood surrounding AtlantaPs Oartin Luther Qing 5ational Jistoric #ite and reservation
Bistrict. Je is also a member of the Advisory 'oard for the Atlanta C6ecutive 5etwork, a
9,+++R member business organiFation in Atlanta, and the past 1hairman of the 'oard of
Birectors for )ulton 1ounty 1ourt Appointed #pecial Advocates. rior to his position at Cmory,
Or. atton worked as an attorney for a 1incinnati, Khio:based law where he specialiFed in
litigation and small business development. Or. atton received his law degree from the
Aniversity of Georgia in 9<<9 and his undergraduate degree from Cmory Aniversity in 9<;;. Or.
Page 13
The =aterto&er
atton put himself through college working in a casual dining establishment in the Hirginia
Jighland neighborhood in the late 9<;+s.
.he following potential managers are under consideration for employment
0icolas 3ode+ert " Chef( Or. Godebert is currently the C6ecutive 1hef of the 1hanteclair
7estaurant, #t. Oartin, ).W.,. Je has been in this position since 9<<=. rior to this
appointment, he was the sous:chef at Bessirier 7estaurant, aris, )rance and the sous:chef for
the 7aphael Jotel 7estaurant, aris, )rance. Je received his apprenticeship and cooking school
certificate from the #ous lPKlivier 7estaurant and the Ccole de aris des Oetiers de la .able in
9<<N, respectively.
Cristina Brito " 4anager( Os. 'rito, currently a food and beverage supervisor for the Westin
Atlanta 5orth hotel, received her start in the hotel and restaurant business in 7ecife:CD 'raFil.
At the Oar Jotel, she was responsible for the sales and marketing of a five:star establishment.
#he maintained e6tensive contact with corporate clients, thus re-uiring her to speak Cnglish,
)rench, ,talian, and ortuguese fluently. Os. 'rito has e6tensive e6perience in AtlantaPs catering
industry dating from 9<;;, as well as e6perience as a chef.
>.M Oanagement .eam Gaps
.he management team will have to partially rely upon outside contractorsDconsultants for both
the marketing and accounting functions.
.he management team is still in the early stages of formation. 5icolas Godebert and 1ristina
'rito are under heavy consideration. 1ristina 'rito is currently working as a consultant on many
issues facing the establishment of .he WatertowerPs start:up.
Page !0
The =aterto&er
=.+ )inancial lan
We want to finance growth mainly through cash flow. We recogniFe that this means we will
have to grow more slowly than we might like.
.he most important indicator in our case is inventory turnover. We have to make sure that food
inventory turnover stays at appro6imately four turns per month, or we risk loss through
spoilage.
We do not want to let our average collection days get above M2 under any circumstances. .his
could cause a serious problem with cash flow, because our working capital situation is tight.
Oost credit sales will be via credit and debit cards. We do have plans to initiate direct billing for
law firms and other businesses conducting regular visits.
We must target a net profit of 9M3 at the least, and hold marketing costs to no more than one
to three percent of gross sales.
=.9 ,mportant Assumptions
.he financial plan depends on important assumptions, most of which are shown in the following
table. .he key underlying assumptions are!
We assume a slow:growth economy, without major recession.
We assume of course that there are no unforeseen changes in technology to make
e-uipment immediately obsolete.
We assume access to e-uity capital and financing sufficient to maintain our financial plan as
shown in the tables.
.able! General Assumptions
General Assumptions
;ear ! ;ear 2 ;ear +
-lan 3onth ! 2 +
urrent "nterest Rate !2.25< !2.25< !2.25<
Long-term "nterest Rate ,.#5< ,.#5< ,.#5<
)ax Rate 25.$2< 25.00< 25.$2<
Other 0 0 0
Page !1
The =aterto&er
=.* rojected 1ash )low
We e6pect to manage cash flow over the ne6t three years with minimal new investment
re-uired over the first two years. ,t is our e6pectation that revenue beyond projected sales will
be invested in retiring long:term debt early.
.able! 1ash )low
Pro Forma Cash Flow
;ear ! ;ear 2 ;ear +
ash Recei'e*
ash 0rom 1perations
ash Sales $2,!.,,,0! $2,+5!,5$! $2,5#+,02$
Su&total ash 0rom 1perations $2,!.,,,0! $2,+5!,5$! $2,5#+,02$
/**itional ash Recei'e*
Sales )ax, =/), :S)(2S) Recei'e* $0 $0 $0
6e7 urrent Borro7ing $0 $0 $24,554
6e7 1ther Lia&ilities 8interest-0ree9 $0 $0 $0
6e7 Long-term Lia&ilities $0 $0 $0
Sales o0 1ther urrent /ssets $0 $0 $0
Sales o0 Long-term /ssets $0 $0 $0
6e7 "n'estment Recei'e* $0 $0 $0
Su&total ash Recei'e* $2,!.,,,0! $2,+5!,5$! $2,,02,5.+
Expen*itures ;ear ! ;ear 2 ;ear +
Expen*itures 0rom 1perations
ash Spen*ing $+22,00. $+22,00. $+22,00.
Bill -ayments $!,,++,##2 $!,,,,,55+ $!,#.+,24#
Su&total Spent on 1perations $!,455,#.0 $!,4..,5,! $2,!05,+05
/**itional ash Spent
Sales )ax, =/), :S)(2S) -ai* 1ut $0 $0 $0
-rincipal Repayment o0 urrent Borro7ing $2+,!,0 $2,,$+5 $0
1ther Lia&ilities -rincipal Repayment $0 $0 $0
Long-term Lia&ilities -rincipal Repayment $2#,$+0 $24,+24 $+!,++4
-urchase 1ther urrent /ssets $0 $0 $0
-urchase Long-term /ssets $0 $0 $0
%i'i*en*s $0 $0 $0
Su&total ash Spent $2,00,,+#0 $2,0$$,+25 $2,!+,,,$$
6et ash 5lo7 $!.0,2+! $+0#,2!, $$,5,4+4
Cash Balance $2.0,2+! $5.#,$$, $!,05+,+.5
Page !!
The =aterto&er
1hart! 1ash
Page !#
The =aterto&er
=.N Qey )inancial ,ndicators
.he most important indicators in our case are are daily seating EcountsE and weekly sales
numbers. We must also make sure that we are turning our inventory rapidly so as to avoid food
spoilage.
We must target net profitDsales figures toward the 9M3 level with gross margins never dipping
below N;3. Oarketing costs should never e6ceed three percent of sales.
1hart! 'enchmarks
Page !(
The =aterto&er
=.M 'reak:even Analysis
.he 'reak:even Analysis shows that .he Watertower has a good balance of fi6ed costs and
sufficient sales strength to remain healthy. Kur break:even point is L9+>,9+9 on sales
averaging L9*.2M per patron. .his break:even position is achieved on a monthly fi6ed cost of
L2=,;=N and and per unitDpatron variable cost of L2.=+.
1hart! 'reak:even Analysis
.able! 'reak:even Analysis
Break-even Analysis
3onthly Re'enue Brea?-e'en $!22,!#4
/ssumptionsA
/'erage -ercent =aria&le ost ,2<
Estimated Monthly Fied Cost $$,,.$!
Page !0
The =aterto&er
=.2 rojected rofit and Loss
We e6pect income to approach L*.9 million for calendar year *++*. ,t should increase to L*.2=
million by the end of the years covered in this plan.
1hart! rofit Oonthly
Page !)
The =aterto&er
.able! rofit and Loss
Pro Forma Profit and oss
;ear ! ;ear 2 ;ear +
Sales $2,!.,,,0! $2,+5!,5$! $2,5#+,02$
%irect ost o0 Sales $!,+$.,+0. $!,2##,0!0 $!,+$0,.,0
1ther $0 $0 $0
)otal ost o0 Sales $!,+$.,+0. $!,2##,0!0 $!,+$0,.,0
2ross 3argin $.+.,24+ $!,0#$,5+! $!,2+2,!,$
2ross 3argin < +..+$< $5.,4< $#..4<
Expenses
-ayroll $+22,00. $+22,00. $+22,00.
Sales an* 3ar?eting an* 1ther Expenses $.0,.00 $.0,.00 $.0,.00
%epreciation $,,400 $,,400 $,,400
Lease* Equip(=an(%ispensing Systems $!2,,00 $!2,,00 $!2,,00
Btilities $2$,000 $2$,000 $2$,000
"nsurance $20,4$0 $22,000 $2+,000
1ther )axes $2$,000 $2$,000 $2$,000
-ayroll )axes $#0,.$2 $#0,.$2 $#0,.$2
1ther $0 $0 $0
)otal 1perating Expenses $5,2,040 $5,+,!50 $5,$,!50
-ro0it Be0ore "nterest an* )axes $2#,,20+ $5!!,+.! $,,.,0!$
EB")%/ $2.+,!0+ $5!.,2.! $,#$,4!$
"nterest Expense $$.,045 $$+,24. $$!,$$2
)axes "ncurre* $55,,#5 $!!#,02! $!54,25$
6et -ro0it $!#2,$++ $+5!,0,2 $$,#,+!.
!et Profit"Sales #..4< !$.4+< !..!,<
Page !-
The =aterto&er
=.> rojected 'alance #heet
As shown in the 'alance #heet, we e6pect a healthy growth in net worth from appro6imately
L9=*,+++ at the end of *++* to almost L9 million by the end of the plan period.
.able! 'alance #heet
Pro Forma Balance Sheet
;ear ! ;ear 2 ;ear +
/ssets
urrent /ssets
ash $2.0,2+! $5.#,$$, $!,05+,+.5
"n'entory $!24,,#! $!!0,.,4 $!24,05.
1ther urrent /ssets $0 $0 $0
)otal urrent /ssets $$04,402 $,4.,+!, $!,!.2,$$+
Long-term /ssets
Long-term /ssets $545,0$0 $545,0$0 $545,0$0
/ccumulate* %epreciation $,,400 $!+,.00 $20,#00
)otal Long-term /ssets $5..,!$0 $5.!,2$0 $5#$,+$0
)otal /ssets $44.,0$2 $!,2#4,55, $!,#5,,#.+
Lia&ilities an* apital ;ear ! ;ear 2 ;ear +
urrent Lia&ilities
/ccounts -aya&le $!$4,,2. $!+5,.$$ $!$#,5++
urrent Borro7ing $,,,40 8$!4,#$59 $4,.!$
1ther urrent Lia&ilities $0 $0 $0
Su&total urrent Lia&ilities $!5,,+!. $!!,,044 $!5#,+$#
Long-term Lia&ilities $,,#,4,4 $,+.,,$0 $,0#,+0!
)otal Lia&ilities $.2$,2.# $#5$,#+4 $#,$,,$.
-ai*-in apital $4.,000 $4.,000 $4.,000
Retaine* Earnings 8$4,,,#49 $#5,#5$ $$2,,.!#
Earnings $!#2,$++ $+5!,0,2 $$,#,+!.
)otal apital $!#+,#5$ $52$,.!# $442,!+5
)otal Lia&ilities an* apital $44.,0$2 $!,2#4,55, $!,#5,,#.+
!et #orth $!#+,#5$ $52$,.!# $442,!+5
=.= 'usiness 7atios
'usiness ratios for the years of this plan are shown below. ,ndustry profile ratios based on the
#tandard ,ndustrial 1lassification $#,1& code 2;9*, Cating laces, are shown for comparison.
.he ratios show a plan for balanced, healthy growth.
Page !/
The =aterto&er
.able! 7atios
!atio Analysis
;ear ! ;ear 2 ;ear + "n*ustry -ro0ile
Sales 2ro7th n.a. #.5$< 4.$2< #.,0<
-ercent o0 )otal /ssets
"n'entory !2.44< ..,,< #.+5< +.,0<
1ther urrent /ssets 0.00< 0.00< 0.00< +5.,0<
)otal urrent /ssets $!.0#< 5$.5#< ,#.+!< $+.#0<
Long-term /ssets 5..4+< $5.$+< +2.,4< 5,.+0<
)otal /ssets !00.00< !00.00< !00.00< !00.00<
urrent Lia&ilities !5.,,< 4.0#< ..4,< +2.#0<
Long-term Lia&ilities ,,.4+< $4.4!< +$.5#< 2..50<
)otal Lia&ilities .2.54< 5..4.< $+.5+< ,!.20<
6et >orth !#.$!< $!.02< 5,.$#< +...0<
-ercent o0 Sales
Sales !00.00< !00.00< !00.00< !00.00<
2ross 3argin +..+$< $5.,4< $#..4< ,0.50<
Selling, 2eneral C /*ministrati'e Expenses +0.5!< +0.##< 24.,2< +4..0<
/*'ertising Expenses 0.#+< 0.,.< 0.,2< +.20<
-ro0it Be0ore "nterest an* )axes !2.,+< 2!.#5< 25.4,< 0.#0<
3ain Ratios
urrent 2.,2 ,.0! #.5! 0.4.
Duic? !.#4 5.0, ,.,4 0.,5
)otal %e&t to )otal /ssets .2.54< 5..4.< $+.5+< ,!.20<
-re-tax Return on 6et >orth !+!.2.< .4.!4< ,+.!5< !.#0<
-re-tax Return on /ssets 22..,< +,.5.< +5.,#< $.+0<
/**itional Ratios ;ear ! ;ear 2 ;ear +
6et -ro0it 3argin #..4< !$.4+< !..!,< n.a
Return on Equity 44.2$< ,,..4< $#.!0< n.a
/cti'ity Ratios
"n'entory )urno'er !0.4! !0.,2 !!.!. n.a
/ccounts -aya&le )urno'er !!.#2 !2.!# !2.!# n.a
-ayment %ays 2. +2 24 n.a
)otal /sset )urno'er 2.!4 !..$ !.$, n.a
%e&t Ratios
%e&t to 6et >orth $.#$ !.$$ 0.## n.a
urrent Lia&. to Lia&. 0.!4 0.!5 0.2! n.a
Liqui*ity Ratios
6et >or?ing apital $25+,5.+ $5.2,2!# $!,025,04, n.a
"nterest o'erage 5.#$ !!..! !,.!2 n.a
/**itional Ratios
/ssets to Sales 0.$, 0.5$ 0.,. n.a
urrent %e&t()otal /ssets !,< 4< 4< n.a
/ci* )est !.#4 5.0, ,.,4 n.a
Sales(6et >orth !2.5. $.$. 2.54 n.a
Page !3
The =aterto&er
Di$idend Payout 0.00 0.00 0.00 n.a
Page #0
2%%en+ix
.able! #ales )orecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Restaurant 0% $116,330 $126,271 $132,163 $150,898 $142,787 $153,458 $164,320 $190,700 $184,871 $184,871 $189,120 $190,428
Coffeehouse 0% $14,525 $14,525 $16,800 $16,800 $19,800 $19,800 $22,770 $22,770 $26,185 $26,185 $30,112 $30,112
Total Sales $130,855 $140,796 $148,963 $167,698 $162,587 $173,258 $187,090 $213,470 $211,056 $211,056 $219,232 $220,540
Dre!t Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Restaurant $101,350 $102,363 $103,386 $105,419 $104,420 $105,850 $106,908 $108,850 $107,350 $107,350 $108,100 $108,850
Coffeehouse $4,357 $4,357 $5,040 $5,040 $5,940 $5,940 $6,831 $6,831 $7,855 $7,855 $9,033 $9,033
Subtotal Direct Cost of Sales $105,707 $106,720 $108,426 $110,459 $110,360 $111,790 $113,739 $115,681 $115,205 $115,205 $117,133 $117,883
Page 1
2%%en+ix
.able! ersonnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
"#ner$Mana%er 0% $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
&'(lo)ees 0% $23,501 $23,501 $23,501 $23,501 $23,501 $23,501 $23,501 $23,501 $23,501 $23,501 $23,501 $23,501
Total *eo(le 21 21 21 21 21 21 21 21 21 21 21 21
Total Payroll $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834
Page !
2%%en+ix
.able! General Assumptions
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
*lan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current +nterest Rate 12,25% 12,25% 12,25% 12,25% 12,25% 12,25% 12,25% 12,25% 12,25% 12,25% 12,25% 12,25%
-on%.ter' +nterest Rate 6,75% 6,75% 6,75% 6,75% 6,75% 6,75% 6,75% 6,75% 6,75% 6,75% 6,75% 6,75%
Ta/ Rate 30,00% 25,00% 25,00% 25,00% 25,00% 25,00% 25,00% 25,00% 25,00% 25,00% 25,00% 25,00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page #
2%%en+ix
.able! rofit and Loss
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $130,855 $140,796 $148,963 $167,698 $162,587 $173,258 $187,090 $213,470 $211,056 $211,056 $219,232 $220,540
Dre!t Cost of Sales $105,707 $106,720 $108,426 $110,459 $110,360 $111,790 $113,739 $115,681 $115,205 $115,205 $117,133 $117,883
"ther $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $105,707 $106,720 $108,426 $110,459 $110,360 $111,790 $113,739 $115,681 $115,205 $115,205 $117,133 $117,883
0ross Mar%n $25,148 $34,076 $40,537 $57,239 $52,227 $61,468 $73,351 $97,789 $95,851 $95,851 $102,099 $102,657
0ross Mar%n % 19,22% 24,20% 27,21% 34,13% 32,12% 35,48% 39,21% 45,81% 45,41% 45,41% 46,57% 46,55%
&/(enses
*a)roll $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834
Sales an1 Mar2etn% an1 "ther
&/(enses
$7,900 $6,500 $7,900 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500
De(re!aton $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575
-ease1 &3u($4an$Ds(ensn% S)ste's $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050
5tltes $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
+nsuran!e $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745
"ther Ta/es $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
*a)roll Ta/es 22% $5,903 $5,903 $5,903 $5,903 $5,903 $5,903 $5,903 $5,903 $5,903 $5,903 $5,903 $5,903
"ther $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total "(eratn% &/(enses $48,007 $46,607 $48,007 $46,607 $46,607 $46,607 $46,607 $46,607 $46,607 $46,607 $46,607 $46,607
*roft 6efore +nterest an1 Ta/es 7$22,8598 7$12,5318 7$7,4708 $10,632 $5,620 $14,861 $26,744 $51,182 $49,244 $49,244 $55,492 $56,050
&6+TD9 7$22,2848 7$11,9568 7$6,8958 $11,207 $6,195 $15,436 $27,319 $51,757 $49,819 $49,819 $56,067 $56,625
+nterest &/(ense $4,185 $4,154 $4,122 $4,090 $4,058 $4,026 $3,993 $3,960 $3,927 $3,893 $3,860 $3,826
Ta/es +n!urre1 7$8,1138 7$4,1718 7$2,8988 $1,635 $390 $2,709 $5,688 $11,805 $11,329 $11,338 $12,908 $13,056
:et *roft 7$18,9318 7$12,5148 7$8,6958 $4,906 $1,171 $8,126 $17,063 $35,416 $33,987 $34,013 $38,724 $39,168
Net Profit/Sales .14,47% .8,89% .5,84% 2,93% 0,72% 4,69% 9,12% 16,59% 16,10% 16,12% 17,66% 17,76%
Page (
2%%en+ix
Page 0
2%%en+ix
.able! 1ash )low
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Re!e;e1
Cash fro' "(eratons
Cash Sales $130,855 $140,796 $148,963 $167,698 $162,587 $173,258 $187,090 $213,470 $211,056 $211,056 $219,232 $220,540
Su<total Cash fro' "(eratons $130,855 $140,796 $148,963 $167,698 $162,587 $173,258 $187,090 $213,470 $211,056 $211,056 $219,232 $220,540
911tonal Cash Re!e;e1
Sales Ta/, 49T, =ST$0ST Re!e;e1 0,00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
:e# Current 6orro#n% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
:e# "ther -a<ltes 7nterest.free8 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
:e# -on%.ter' -a<ltes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of "ther Current 9ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of -on%.ter' 9ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
:e# +n;est'ent Re!e;e1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Su<total Cash Re!e;e1 $130,855 $140,796 $148,963 $167,698 $162,587 $173,258 $187,090 $213,470 $211,056 $211,056 $219,232 $220,540
&/(en1tures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
&/(en1tures fro' "(eratons
Cash S(en1n% $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834 $26,834
6ll *a)'ents $35,544 $175,815 $127,186 $132,308 $137,495 $134,078 $139,478 $145,029 $152,660 $149,153 $149,821 $155,206
Su<total S(ent on "(eratons $62,378 $202,649 $154,020 $159,142 $164,329 $160,912 $166,312 $171,863 $179,494 $175,987 $176,655 $182,040
911tonal Cash S(ent
Sales Ta/, 49T, =ST$0ST *a1 "ut $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
*rn!(al Re(a)'ent of Current 6orro#n% $1,824 $1,843 $1,861 $1,880 $1,900 $1,919 $1,939 $1,958 $1,978 $1,999 $2,019 $2,040
"ther -a<ltes *rn!(al Re(a)'ent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-on%.ter' -a<ltes *rn!(al Re(a)'ent $2,221 $2,223 $2,243 $2,257 $2,268 $2,281 $2,292 $2,305 $2,317 $2,328 $2,341 $2,354
*ur!hase "ther Current 9ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
*ur!hase -on%.ter' 9ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
D;1en1s $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Su<total Cash S(ent $66,423 $206,715 $158,124 $163,279 $168,497 $165,112 $170,543 $176,126 $183,789 $180,314 $181,015 $186,434
:et Cash >lo# $64,432 7$65,9198 7$9,1618 $4,419 7$5,9108 $8,146 $16,547 $37,344 $27,267 $30,742 $38,217 $34,106
Cash Balance $164,432 $98,513 $89,352 $93,771 $87,861 $96,007 $112,553 $149,897 $177,164 $207,907 $246,124 $280,231
Page )
2%%en+ix
.able! 'alance #heet
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
9ssets Startn% 6alan!es
Current 9ssets
Cash $100,000 $164,432 $98,513 $89,352 $93,771 $87,861 $96,007 $112,553 $149,897 $177,164 $207,907 $246,124 $280,231
+n;entor) $61,157 $116,278 $117,392 $119,269 $121,505 $121,396 $122,969 $125,113 $127,249 $126,726 $126,726 $128,846 $129,671
"ther Current 9ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current 9ssets $161,157 $280,710 $215,905 $208,621 $215,276 $209,257 $218,976 $237,666 $277,146 $303,890 $334,632 $374,970 $409,902
-on%.ter' 9ssets
-on%.ter' 9ssets $595,040 $595,040 $595,040 $595,040 $595,040 $595,040 $595,040 $595,040 $595,040 $595,040 $595,040 $595,040 $595,040
9!!u'ulate1 De(re!aton $0 $575 $1,150 $1,725 $2,300 $2,875 $3,450 $4,025 $4,600 $5,175 $5,750 $6,325 $6,900
Total -on%.ter' 9ssets $595,040 $594,465 $593,890 $593,315 $592,740 $592,165 $591,590 $591,015 $590,440 $589,865 $589,290 $588,715 $588,140
Total 9ssets $756,197 $875,175 $809,795 $801,936 $808,016 $801,422 $810,566 $828,681 $867,586 $893,755 $923,922 $963,685 $998,042
-a<ltes an1 Ca(tal Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current -a<ltes
9!!ounts *a)a<le $29,627 $171,581 $122,781 $127,721 $133,032 $129,435 $134,653 $139,937 $147,688 $144,165 $144,647 $150,046 $149,628
Current 6orro#n% $29,850 $28,026 $26,183 $24,322 $22,442 $20,542 $18,623 $16,684 $14,726 $12,748 $10,749 $8,730 $6,690
"ther Current -a<ltes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Su<total Current -a<ltes $59,477 $199,607 $148,964 $152,043 $155,474 $149,977 $153,276 $156,621 $162,414 $156,913 $155,396 $158,776 $156,318
-on%.ter' -a<ltes $695,399 $693,178 $690,955 $688,712 $686,455 $684,187 $681,906 $679,614 $677,309 $674,992 $672,664 $670,323 $667,969
Total -a<ltes $754,876 $892,785 $839,919 $840,755 $841,929 $834,164 $835,182 $836,235 $839,723 $831,905 $828,060 $829,099 $824,287
*a1.n Ca(tal $98,000 $98,000 $98,000 $98,000 $98,000 $98,000 $98,000 $98,000 $98,000 $98,000 $98,000 $98,000 $98,000
Retane1 &arnn%s 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798 7$96,6798
&arnn%s $0 7$18,9318 7$31,4458 7$40,1408 7$35,2348 7$34,0638 7$25,9378 7$8,8748 $26,542 $60,529 $94,542 $133,266 $172,433
Total Ca(tal $1,321 7$17,6108 7$30,1248 7$38,8198 7$33,9138 7$32,7428 7$24,6168 7$7,5538 $27,863 $61,850 $95,863 $134,587 $173,754
Total -a<ltes an1 Ca(tal $756,197 $875,175 $809,795 $801,936 $808,016 $801,422 $810,566 $828,681 $867,586 $893,755 $923,922 $963,685 $998,042
Net Worth $1,321 7$17,6108 7$30,1248 7$38,8198 7$33,9138 7$32,7428 7$24,6168 7$7,5538 $27,863 $61,850 $95,863 $134,587 $173,754
Page -