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Shahi Bani
An Eritrean Farm to Table Restaurant

Business Plan Overview

By: Mical Woldemichael
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Business Letter to Investors

Mical Woldemichael

1600 Holloway Ave.

San Francisco, 94132

September 28, 2017

Tessa Kappe

Education Program Coordinator

CUESA

One Ferry Building, Suite 50

San Francisco, CA 94111

Dear Tessa,

Thank you for your interest in supporting Shahi Bani, a world-renown local and organic

restaurant, known for its exquisite Eritrean cuisine. We are a new business attracting many locals

and tourists with our commitment to flavor, the health of consumers, and environment. As a

CEO and Nutrition professional, I value sustainability especially with supporting local farms. We

would like to partner with you and receive a one-time discount for your produce, where we could

receive $10,000 in produce with a cost of $5,000.

With this money, we hope to increase our profits and use five percent of our sales to support

vegetable gardens and farm to school programs across San Francisco. We value how your

organization promotes vegetables and fruits to youth and want to support your endeavor within 6

months.
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Our business prides itself upon principles of food justice and sustainable health systems which

aligns with CUESA. We would love to collaborate and help our community-local schools with

seed to plate education.

Sincerely,

Mical Woldemichael

Shahi Bani Owner

Enclosures: #

Introduction

Shahi Bani, an Eritrean restaurant, believes in bringing Eritrean cuisine with a focus on organic

local farm produce and meats to Fillmore St. Fillmore St. is an epicenter of vibrant and diverse cultures,

personalities, music and cuisines. We believe the addition of Eritrean food and drinks would be

welcomed. Our restaurant aims to introduce people to the delicious food of Eritrea or give customers an

opportunity to fall in love again, by offering nutritious and seasonal meals.

Mission Statement

A growing demand and increase of consciousness have fueled people’s search of food

that can be healthy yet satisfying. As evident from the fast food chains and other businesses,

Fillmore St. lacks restaurants that meet these health and taste concerns until Shahi Bani. Our

cuisine centers on unique spices which flavor many plant-based and sustainable meat items.

Additionally, with our emphasis on nutrition and sustainability, we use the different parts of

pastured animals. To support healthy digestion, we follow the traditional way of preparing our

foods. We take pride in making quality food that nourishes our bodies.

Concept

Food Justice
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Our business follows a sustainable and food justice model .We are working towards

positive changes on the “local economies, environmental sustainability, valued workforce,

animal welfare, and nutrition” which Michelle Chen states as issues in “Can the Foodie Trend

Also Help Food Workers?”(2017). To address these issues, Chen notes a local food system

should comprise a partnership of “local government agencies, businesses, institutions, non-

profits, and farms” (2017). Our business plans to partner with CUESA (Center for Urban

Education of Sustainable Agriculture) and other organizations in order to support our local

economy. To stimulate our local economy, we also provide fair wages and choose farms that

support the rights and liveliness of their workers.

By supporting and providing higher paying food jobs, we support a ripple effect where

more people can access healthy food. Increasing access to healthful foods: a qualitative study

with residents of low-income communities (2015) mentions how the associated high cost often

deters low income people’s access to local fruits and vegetables (Evans and Banks). Therefore,

by partnering up with local organizations such as CUESA that carry Cal Fresh (formerly known

as Food Stamps), we lower the disparities that hinder access to high quality food. For instance,

Shahi Bani chefs plan to host food demos at the Fillmore Farmer’ Market to encourage Cal Fresh

enrollment.

The demo will attract many residents of the Western Addition(Fillmore) neighborhood

with fliers and other advertisements. Not only will we demonstrate how to cook, we are also

showing how low income people can maximize their EBT (CalFresh) money with the

MarketMatch. As an incentive, the MarketMatch program matches up to $10 dollars at the

Fillmore Farmers Market and also works with other partnering farmer’s markets(MarketMatch).

From these demos, the Cal Fresh recipients will be able to gain knowledge and find affordable
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way to eat well. Thus, this ripple effect will cause positive changes not only on the economy, but

on the health of our local low income community by reducing the onset of diet related diseases.

Evan and Bank(2015) mention geographical and economical access will increase healthy eating

behaviors among low income people. These healthy eating behaviors decrease the rate of

diabetes, high blood pressure, high cholesterol, and other chronic illnesses that plague low

income Americans.

Donations

In addition to partnering with nonprofits, we also partner with after school programs in

the Western Addition district of San Francisco to increase nutrition education and access. We

donate five percent of our sales to Rosa Parks elementary school and the Community Grows

program located in the African American Cultural Complex Center. These donations will be used

for growing vegetable gardens and cultivating it for these children’s meals. We invest in our

youth’s health through the means of early nutrition and gardening education. This education

empowers youth to try new foods and connect with the healthy food they planted. For instance,

an elementary aged student in the Seed to Mouth program(Community Grows)) exclaimed “Can

we have green salad every week?” This positive impact is the change we want to see among our

youth. These early years can help solidify their lifelong healthy eating habits. Our business also

plans to donate to the other programs under Community Grows such as the “Band of

Environmentally Educated and Employable Teens or BEET to encourage gardening and

leadership for disadvantaged adolescents(Community Grows). In the future, we aim to increase

profits to donate more towards seed to plate programs and expand to other schools. We also plan

to hire those who completed the BEET program and other local high school and adults.
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Additionally, we want to address food insecurity in Eritrea as we access more resources and

connect to more nonprofits.

B-corporation

Our organization will be undergoing the process to get B-corporation certification.

Benefit Corporation, mainly known as B Corp, is an organization that has demonstrated a strong

commitment to social and environmental goals. To keep organizations accountable to these

goals, B Lab, a nonprofit, helps entrepreneurs navigate and solve social and environmental

problems(B Corporation).

The process differs for each type of organization and involves a few steps. To begin the

B-corporation certification, we must pass the B Lab’s B Corp assessment with a score of at least

80 out of 200. The assessment includes questions about corporate policies and practices, relating

to everything from management and governance to community involvement, evaluation of

suppliers, and disposal of hazardous waste (B Corporation). According to B Lab, it is best to

complete the assessment after 6 months of full operation and revenue generation because it asks

about these operations in depth. As a Sole Proprietor, our organization is not formally organized

as a corporation, therefore, it has no corporate governing documents to complete(B Corporation).

Though, we have to sign the B Corporation Declaration and Term Sheet to complete the process.

The outcome of receiving B-corporation certification is building trust and transparency.

With this certification, our business demonstrates itself with high repertoire that earns the trust

of consumers. B Corp certification gives organizations the ability to brand themselves among

other “responsible companies, including Etsy, Patagonia, and King Arthur Flour, and be

nationally recognized for their commitment to positive social and environmental values”( Our B

Corp Declaration). By passing the test, B-Corps offers perks such as a partnership to raise funds,

share sustainability strategies, and recruit for job opportunities (Our B Corp Declaration). This
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collaboration will help our business by giving us a pool of applicants for open job. By meeting

the B Corp standards, our business stands out as credible and becomes a member of a community

that consumers and investors want to support. Therefore, this certification and investment will

allow us to continue our high quality foods and jobs.

Sustainability

Sourcing

We aim for a minimum of 95 percent of our food to originate locally. We will purchase

most of our produce from the Fillmore Farmers’ Market and other ingredients from the Rainbow

Cooperative Grocery. By purchasing close to SF, we are lowering our carbon footprint and

preserving more of the natural resources. In addition to produce, we also purchase our meats

from Community Supported Agriculture (CSA) organizations. As opposed to conventional farm

meat laden with antibiotics, all of the meats we purchase are local and grass fed to prevent the

release of environmental pollutants such as methane.

The Fillmore Farmers’ Market on Saturday will account for the majority of the produce

and determine how our cyclic menu changes. If not available locally, our business commits to

buying only organic and fair trade from other areas. Our priority is knowing that the workers are

treated with respect and dignity.

Waste

We work towards minimizing food waste and any other negative environmental impact to

preserve our resources for future generations. To eliminate excessive water waste, we use a

pulper for the garbage which works by grinding solid waste and extracting solids, thus only
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discharging water into sewer system (Hudson, 2013). Other water and energy saving transitions

we are in the process of implementing include low flow valves in sinks, sensor faucets, low flow

toilets, hot water recirculating systems, and tank less water heaters(Hudson,2013). In terms of

waste management, we mitigate landfilling by recycling, composting, and reusing. By providing

an incentive, a discounted cost, for customers to bring their own reusable containers, we believe

our take-out box usage will greatly decrease. We follow sustainable agriculture practices that

support soil quality and the environment by choosing Organic. In addition, we make sure the

farms we access treat their workers well. As the Fair-Trade certification includes, we believe and

choose farms that make sure farm workers receive shade, adequate water, restroom, facilities, no

exposure to pesticides, and a fair share of the benefits of trade or profit (Hudson, 2013).

Target Population and Location

Consumers

From SF Gate’s Younger Consumers Are More Health-Conscious Than Previous

Generations, Studies Find, Timi Gustafson(RD) discusses how millennials and baby boomers

alike are shifting towards a wellness-oriented lifestyle (2017). Gustafson further elaborates on

the informed health-conscious consumers and their approach to their health needs. Not only are

they “proactive and progressive in their approaches, they can also influence and redefine the

existing food culture around them, even impact the larger social and cultural environment they

live in”(Gustafson, 2017). Shahi Bani caters to these consumers through appealing to their taste

buds and their overall health.

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Our nutritious food and delicious flavor set our cuisine apart which attracts consumers.

Our traditional flatbread like dough called Injera, uses only fermented Teff. Fermenting Teff

reduces the phytic acid and increases the bioavailability of the soluble fibers and minerals as Vad

states in Injera – Ethiopian Flat Bread from Fermented Teff Flour (2017). Injera made from

Teff, a gluten free grain, rivals quinoa with higher amount of protein, calcium, and iron as Dr.

Getaneh states (2011). Additionally, it has a high concentration of micronutrients. We also use a

lot of spices that are freshly ground from Eritrea called Berbere that can be adjusted to heat

tolerance. Onions, garlic, and tomato not only enhance our dishes with their aromatics, they also

contain fiber and other health benefits. Our Shahi, spiced black tea, consists of loose leaf tea with

sweetness and milk adjustments to cater to any health concerns. Our nutritious menu and

delicious taste guarantees our guests will return for more especially when they learn our

principles.

Our target population, the foodies and other health conscious people, are often concerned

over the welfare of the local community and workers that make their food. Firstly, according to

the Food and Health Survey, a foodie is defined as someone who sacrifices convenience and cost

in search of a quality product, particularly one that is tasty, healthy, and made in a way that

aligns with their personal beliefs (Kubitz, 2017). Therefore, our B Corp certification responds to

more than the quality aspect. We share the same food justice beliefs as many foodies which

signals to our customers and investors of our dedication to environmental and social

responsibility. Seeing the positive nutrition impact we make at local underserved schools in the

neighborhood will show the consumers our mission goes beyond sales and towards community

and sustainability. Our radical business model will appeal to customers and make it more likely

that they will pay premium cost, knowing they are doing well to their health and others. Foodies
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prioritize their personal moral code and high quality nutritious food, so, we aim to supply these

demands. Foodies Sacrifice Cost and Convenience for Quality notes how foodies determine

nutrition on three principles: being “free from artificial ingredients, additives” and “high in

healthy components or nutrients,” and minimally processed” (Kubitz, 2017). All the food we

prepare falls under these principles. Additionally we offer gluten free, nut free, soy free and

vegan options to address the common diet restrictions.

Setting

Our clientele desire tasty yet healthy options in a relaxing environment. Our full-service

dine in only restaurant provides a quiet oasis from the city. We welcome people to eat and enjoy

our food without the fuss and noise. Shahi Bani delivers exceptional service and overall

experience by allowing our customers time to look over the menu and see the meals cooked for

them. Food is eaten with our hands. We want a positive and warm environment where people can

be exposed to Eritrean culture. For instance, we will have paintings from local Eritrean artists for

sale.

Staffing

Our staff is comprised of highly-skilled Eritrean chefs, friendly and knowledgeable wait

staff, a general manager, and back of the house staff. We hope to hire mostly from the Western

Addition/ Fillmore area to give local high school students and adults quality job training. This

also supports our goal of strengthening our local economy by hiring locally. We provide a homey

atmosphere for our staff and pay competitive wages. We value our staff and make it apparent by

giving them free meals per shift and half off when they are not working. Our restaurant treats
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staff and our clientele both with the highest regard and it shows in how we work and how we

care for our guests.

Additionally, we provide opportunities for growth and cross-training. Our cross-

training involves back of the house and front of the house learning each other’s duties.

Therefore, when one staff member is on break, someone else can cover them. Shahi Bani sees

cross training as important for efficiency and productivity because everyone is capable of doing

different positions and can fill in for someone who called out sick. This training will allow

workers to challenge themselves and equipped at different duties, keeping the job interesting as

they continuously learn. Furthermore, we will offer more management roles as our business

grows such as Assistant Managers.

Food Service Classification

Instead of the common quick service and fast food restaurants on Fillmore St., the

customers desire variety and a mindful experience of our delicious food. We are a full service

dine in only restaurant that includes ordering and serving. To achieve our high standards of

quality, we have also create a cyclic menu that changes with the seasons, allowing our produce

be the freshest and full of flavor. As opposed to static menus that do not change, cyclic menus

allow us to showcase our creativity with a varied menu that lasts for two months (Hudson, 2013)

Menu

Our menu consists of sustainable pastured meat options such as beef and lamb as well as

vegetable options and a legume dish which can vary in spice level. In addition to food, we have

crafted a spiced black tea called Shahi, as our signature drink. The appendix details a sample

menu and nutritional information.

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Market Analysis

Marketing

Our target populations are the health-conscious people of SF which also includes the

“foodies”. These foodies can help publicize our restaurant on social media outlets such as

Instagram and Yelp. Building a social media presence for our business will help us expand our

customer base because many people use apps to look up new restaurants. For instance, Jenn

Chen mentions in The Complete Guide to Social Media for Restaurants & Bars that 88% of

people are influenced by reviews and online comments which makes it important for a restaurant

to use an “intentional digital strategy” ( 2017). It is imperative that we use social media

effectively to reach more people which we can achieve through high ratings. Therefore, our

ratings from Yelp and Instagram can set us apart from our competition.

We aim to use Instagram and our website to broadcast our business. Shahi Bani will

showcase our partnership with local schools by showing a picture of the garden the children

helped plant. Additionally, we plan to use Instagram to show the weekly specials and staff

appreciation. Not only do we believe in strengthening our neighborhood, we also believe in

building a community at work. Therefore, we recognize our staff for their hard work while also

demonstrating to the guests our team dynamics.

Customer service

Lastly, our restaurant desires to exceed our customers’ expectations. To measure our

customer’s satisfaction, we will use restaurant ratings such as Yelp. We also value suggestions

and comments that we will receive through our email on the website shahibani.com. By

observing customers’ opinions and using the feedback, we work to build a lasting business that

continuously improves. We train our staff to be courteous and knowledgeable and consider their
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personality traits when hiring. Our business prides itself on our quality staff that welcomes the

guests and diffuse any negative encounters. The general manager will get involved in any case to

avoid escalation of events, though we reserve the right to refuse service if the guests disrespect

our staff or other guests.

Competition

According to Yelp, there are three Eritrean restaurants in San Francisco: Assab Eritrea,

Massawa, and New Eritrea. These restaurants are not located in close proximity as they are

found in Inner Sunset, Inner Richmond, and North Beach (yelp.com). However, one competitor,

The Sheba Piano Lounge, an Ethiopian inspired Jazz club and restaurant is also located on

Fillmore St. From all the restaurants listed above, we distinguish ourselves by being thoughtful

of where are food comes from and making sure it is all organic and traditionally prepared, no

fillers or preservatives. For instance, most Eritrean and Ethiopian restaurants make injera with a

combination of other flours such as white flour, but ours is exclusively Teff. Also, Shahi Bani is

unlike most of the other restaurants of SF because we ensure a relaxing dining experience.

Our location, Fillmore St. is the prime area for food and drinks of San Francisco. Both Boba

Guys, an artisan Boba drink place, and Statebirds, a Michelin awarded fine dining place generate

lines out the door. To increase the cultural food presence on Fillmore St., we decided to open

here and appeal to the heavy foot traffic that the Fillmore already gets. Additionally, our location

is also a block away from the Farmer’s Market, which we will primarily use for our menu. While

gaining easy access to fresher and organic produce, we also are achieving our goals of support

our local and organic growing farmers.

Financial Plan

Pricing
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Our high-quality entrees and drink options including Shahi tea allow us to set our prices

above our competitors. Our vegan combo which include a vegetable and a legume dish will be

priced at $20. Comparing to The Sheba Piano Lounge, where they set their vegetable combo at

$18, Shahi Bani delivers more nutritious option with the vegetables, oils used, and our 100% teff

injera (Sheba Piano Lounge). Our price point also accounts for the 5 percent given to local seed

to plate programs and the more expensive produce. Our meat combo with vegetables will cost

$23 dollars compared to $17.90 from the Ethiopian lounge that only includes the meat dish. Our

high-quality meats and good portions make it reasonable. Additionally, we expect our Shahi, a

spiced black tea, to be a popular option. Due to the expected high demand, we price it at $4

which also accounts for our organic loose leaf black tea and spice blend. Our target population,

the foodies, are willing to pay these costs as they realize our exceptional quality, community

investment, and high real estate costs.

Sales

To calculate our financial operating budget, we are factoring in the 75 seats in the

restaurant, the days we are open, seat turnover, the average check and revenues. We will be

open Tuesday through Sunday from 10 to 9PM, so we will calculate lunch and dinner sales. As a

relaxing sit-down atmosphere, we expect our turnover rate will be 1 percent. We expect a lunch

and dinner check to average at $50. Therefore, our total food sales will total at $1,170,000. We

expect beverage revenue to be 20% of lunch and dinner sales. Our total beverage sales will be

$234,000. Combining the food and beverage sales gives Shahi Bani $1,404,000 in total sales.

Our food cost is expected to be 40% of total food revenue and beverage cost to be 20% of total

beverage revenue. Our employee wages are expected to be 15% and benefits are expected to be

20% of our total sales.

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Costs

Our food cost is expected to be 40% of total food revenue and beverage cost to be 20% of

total beverage revenue. Shahi Bani’s food cost is $468,000 and beverage cost is $46,800.

Together, our total cost of sales is $514,800. So, our gross profit equals $889,200. Employee

wages, both fixed and variable, are expected to be 15% and benefits are expected to be 20% of

our total sales. Therefore, payroll is $351,000 and benefits is $70,200.

Other expenditures include 5 percent for operation costs such as the TouchBistro.

According to TouchBistro.com, this POS system will cost us $249 per month for our medium

sized business, allowing us to manage tableside orders, floor plans & tables, mobile payment

processing, staff and scheduling, iPad menu, and inventory. The operations expenses cost

$58,500. Occupancy cost will average at $130,000 and interest at $10,000 and lower

depreciation cost $5000 since we use sustainable energy efficient items when possible. After

deducting all the costs, the restaurant profits at $264,500 and then we donate 5 percent to the

local school programs which equals $13,225.

Conclusion

Shahi Bani prioritizes sustainability, community investment, and nutrition over the

business norms of capitalism. We see a growing population of the people desiring local and

organic food while also trying to escape the hustle and bustle of SF. We have created a restaurant

that caters to everyone’s health concerns without sacrificing the traditional and unique flavors of

Eritrean food. Our business tries to make a positive impact not only on the customers we serve
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and our staff, but also on our community through nutrition programs for youth. We hope to

expand as a certified B corporation and give back to people in Eritrea.

References

B Corporation. (n.d.). Retrieved December 19, 2017, from

https://www.bcorporation.net/become-a-b-corp

Chen, J. (2017, January 11). The Complete Guide to Social Media for Restaurants & Bars.

Retrieved from https://sproutsocial.com/insights/bars-restaurants-social-media-guide/

Evans, A., Banks, K. (2015). Increasing access to healthful foods: a qualitative study with

residents of low-income communities. Retrieved December 7, 2017, from

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4658775/

Hudson, N. (2013). Management Practice in Dietetics. San Diego, CA: Cognella Academic

Publishing

Introduction to Food System Issues. (n.d.). Retrieved December 7, 2017, from

http://goodfoodla.org/good-food/overview-of-food-issues/introduction-to-food-system-issues/

Marketmatch.org. (2017). Partners Market Match. Retrieved December 7,2017,from

http://marketmatch.org/partners/

Our B Corp Declaration. (n.d.). Retrieved December 7, 2017, from

http://www.loyaltolocal.com/our-b-corp-declaration/
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Seed to Mouth. (2017, May 11). Retrieved December 7, 2017, from

http://www.communitygrows.org/programs/seed-to-mouth/

Sheba Piano Lounge. (n.d.). Retrieved from http://www.shebapianolounge.com/https/

netsanet-alemayehu-yvnbsquarespacecom/config/pages/welcomeeat-together-1/

Yelp. (n.d.). Retrieved from https://www.yelp.com/

search?find_desc=Eritrean+Restaurant&find_loc=San+Francisco%2C+CA%2C+US&ns=1
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Appendix: Sample Menu

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Nutritional Information

Teff Injera

Serving size: 12 inches across; calories: 112, protein: 4 g, carbohydrates: 23

g, fiber: 3g Iron: 7% of RDA, Magnesium 26% of RDA

Shahi

Serving size: 16 ounces; calories: 0, protein: 0 g, carbohydrates: 0 g

Beet Salad

Serving size: 1.5 cups calories: 182.5, total fat: 3.6 g, sodium: 25mg,
carbohydrates: 17g, fiber: 5 g, protein: 3g

Rainbow Chard

Serving size: 1 cups calories: 110, total fat: 7 g, sodium: 50 mg,

carbohydrates: 6g, fiber: 3 g, protein: 3 g

Timtimo

Serving size: 65 g calories: 244, total fat: 8 g, cholesterol: 20 mg sodium: 182

mg, carbohydrates: 30g, fiber: 15 g, protein: 13 g, Iron: 21%

Beef Kulwha

Serving size: 6 ounces calories: 269, total fat: 14 g, cholesterol: 54 mg,

sodium: 187 mg, carbohydrates: 13g, fiber: 2 g, protein: 23g, Iron: 17% of
RDA, Vitamin C: 48%

Lamb Kulwha

Serving size: 6 ounces calories: 293, total fat: 20 g, cholesterol: 71 mg,

sodium: 83 mg, carbohydrates: 4g, fiber: 1 g, protein: 18g, Vitamin C: 48%
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