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.......................................................................................................................................Expansion as a Business Goal.................... 23 3 ..............

The last group which is particularly interested in the menu's healthy offerings is dieting women which number 350. 4 . island atmosphere. The second group that will be targeted is young happy customers which are growing at an annual rate of 8% with 150. American. Services Ethnic recipes will be used to provide the customers with a diverse.000 potential customers. The restaurant will focus on West Indian cuisine. and Mexican restaurants. recognizing the trend within the restaurant industry for the demand for healthy cuisine. Chef Mario will also be emphasizing healthy dishes.000 in the Portland area.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. This will help us to reduce waste and plan ingredients and purchasing. 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.Executive Summary Company Name: Western Islands F. The third group is rich hippies who naturally desire organic foods as well as ethnic cuisine. The first group is the lonely rich which number 400. The locWestern Islands on of the restaurant will offer patrons "something different" in an area swamped with Italian.000 people. The Menu The menu is going to be extremely simple but changing every day. background music (reggae and calypso) and traditional West Indian hospitality. unusual menu. Customers Western Islands believes that the market can be segmented into four distinct groups that it aims to target.

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

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

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

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

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

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

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

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

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

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

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

960 Rs12.700 at start up (Rs84.960 Rs8.800 Rs0 25 Rs 23210712 Rs18.288 Rs12. Chartered Documents Division.800 Rs0 25 Rs23280912 Rs18.700 Rs11.800 Rs11. A WESTERN ISLANDS is organized as a Domestic LLC organizWestern Islands on.960 Rs12. That there are no unforeseen changes in consumer‟s tastes or interests to make our concept less competitive. most of which are shown in the following table.900.    The Owners intend to invest Rs254.960 Rs12.760 Rs0 20 Rs 21577752 Rs18. City. Income taxes will pass to OrganizWestern Islands on Partners.288 Rs12. CorporWestern Islands ons Bureau.Cook 2 Prep Cook/Dishwasher Prep Cook/Dishwasher/Cleaning Dishwasher 1 Dishwasher 2 Cleaning/Dishwasher Open Total People Total Payroll Rs18.00 each).960 Rs8.640 Rs5.288 Rs12.800 Rs11.  That personnel burden rates will remain at the current rate during the period of the financial models represented.760 Rs0 24 RS 21642552 Rs18. without a major recession.640 Rs5.640 Rs5.960 Rs8. Assumptions made on the financial models presented as exhibits to this plan are listed under Financial Plan Assumptions.960 Rs8.960 Rs8. 16 . and illustrated in more detail in the referenced appendices or financial analysis sources cited.800 Rs0 25 Rs 23367312 FINANCIAL PLAN OVERVIEW.800 Rs11. 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.288 Rs12.960 Rs12.640 Rs5. and is assumed at the rate of 27%  The financial models contained in this plan are based on important assumptions. The economy will remain strong.288 Rs12. AnyState.640 Rs5.960 Rs12.800 Rs11.

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

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.Rs49. 18 .first year of operWestern Islands on.000 3-5 Years Risk Analysis/Mitigation 1.000 Gold: Projected Annual IRR on Investment of Rs50.000 or more 11% 12% + Residuals 10% 20% Max Rs200.000 Platinum: Projected Annual IRR on Investment of Rs100. facility layout. initial financial records processes. We addressed the financial risk as follows:   We looked at our monthly break-even.Rs99.000 Rs15. A Western Islands will engage the services of The InnovWestern Islands ons Group (hospitality professional advisors). and assistance in selection of staff.000 .000 .000 Investment) Starting Year 2 Silver: Projected Annual IRR on Investment of Rs15.000 in investor capital. Investment Opportunities The Western Islands Investment Program allocates equity position of 20% for a total of Rs200. These services will include market planning. 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.  We budgeted operational shortfall in an operational contingency budget that we will utilize if the need arises. Start-up costs will include the initial 6 months of advisory service. We calculated worst-case monthly financial shortfall based on the ramp-up sales percentages outlined in our financial assumptions.

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

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

Daytime 480 Max/day Assumed number of patrons at start: Evening 66/day.55 23. Daytime 49/day Assumed number of patrons after 2 months: Evening 150/day.2% 21 .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.00 40 137 120 Rs 590 Menu Price Per Plate: Gross Profit Per Meal: Rs 18.5% Rs 9. 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 0.55 18.

800 each visit – scheduled 3 events Balance Sheet A. 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. In addition Year 2 brings an increased sales and profit margin to sustain the addition of a full-time General Manager.000 3. By second quarter of Year 2. as well as a contingency in the event the business is unsuccessful. Current Liabilities includes unpaid (2 week) expenses and salaries. the owners will look to launch a second restaurant concept.000 each partner) and initial supply purchases (inventory) for start-up. Expansion.85 each at 22. with greater sales capacity 22 . Payback & Exit Strategy In addressing this question we look at the Exit Strategy as a definition of our business vision and goals. B. E. Printed Material: Coupons and brochures at area hotels at Rs. Fixed Assets includes lease amounts (Equipment and sign leases have low buy-outs). Expansion (Option 1): Our overall goal to maintain Western Islands as a unique and eclectic concept. C. Radio Advertising: Drive time Rs130/60 second slot at 4 slots per day 2. Expansion (Option 2): Throughout our business plan we have stayed focus that Western Islands would be successful as a larger venue. Long-Term Liabilities includes exposed lease payments (1 year terms).Marketing Costs: 1.000 (Rs10. Current Assets includes starting capital of Rs30. Promotions: Area DJ on site at Rs4. D. Based on projections. and compound the profit return for Western Islands Investors. 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.

Financial Solvency: The financial projections indicate that exit will be achievable over 3 years for the operating capital line of credit. We step into this venture with confidence and the success of our respective prior business efforts. At this stage the business debt is reduced. We will look at the private sale of the majority interest via A) Leveraged Buyout. The entire financial debt would be retired by Year 7.000 in cash in the bank after income taxes the second year. Sales and profit margins will be based on the restaurant valuation in Year 3.and revenue potential. Under a realistic scenario the Company should have over Rs70. or B) A larger Restaurant consortium. Private Sale: We are in the business of making money.4% of its optimum sales potential with the current seating and space allocation. Exit Strategy to Retire the Business We at Western Islands are committed to our concept and its viability. No one attempts a business anticipating failure. 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. we will first attempt to sell the operation and use the proceeds to clear all outstanding balances. 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. our interest is in delivering healthy profits to our Investors and Financial backers. we see Western Islands as meeting 80. profit margins are increasing. In the event that our venture cannot achieve profitability and retire the encumbrances. In both cases. however sometimes ventures do not fulfill their promise. At the close of Year 3. and Western Islands has established market share. 23 .

Restaurant map 24 .

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