Training programs

All training will be done in-house. Each new employee will have two days of
orientation and job
shadowing before working independently. During this training all roles and duties
will be explained,
observed and performed. Additional all corporate ideologies and strategies will be
reviewed with store
management to ensure all employees are following the same basic strategy and
promoting the
company vision. Initial training will be provided to employees by the store manager
and will require a 2
hour session of business history and values orientation.
Labour and management costs
Three full-time-equivalent staff will be hired (one full-time employee and four
part-time employees).
During the operating hours, one staff will serve the customers; one will clean up
tables and restock
napkins as well as clean windows before store opens [This includes managers].
Employees on shift
will be required to come in 1hour before opening hours to assistant in preparing
the doughnut and
dough for the day. Employees are trained to perform different duties and are
rotated to different roles
on a weekly basis.
All staff will receive $10.00 per hour [Minimum wage $9.25 as at May 1, 2009 for
Saskatchewan].
Salaries and wages increase by 2.5% per year to adjust for inflation. CPP, EI and
WCB benefits are
provided to all staff. Considering the nature and size of the business, we plan to
hire extra staff
members based on business sales growth. We will require at least 10,000 additional
doughnut sales
from our project at a contribution margin of $1.48 to justify hiring another part-
time staff member to help
prepare for increase production and customer service efficiency [Part-time cost
would be based on 22
hours/ week for annual wage expense of $13,650]. At our current projections an
additional employee
will be hireable in 2014 in growth assumptions hold ture, however we have decided
not to include the
additional labour cost as it is undeterminable if the hiring will occur within the
next 5 years. Over the
next 5 years we anticipate Zara and Angela running all the management duties of the
operation. Zara
and Angela will be taking out a fixed amount from the company each year to cover
their living expenses
[starting at $50,000 each per year and by 2014 taking $80,000 each]. A 5-year
projected payroll
expenses is provided as follows: