BUSINESS PLAN Watch N Eat

1.0 EXECUTIVE SUMMARY

The fast pace of the world we live in leaves little time for extra things we would like to
do, like plan events, parties, and social get-togethers. Watch n Eat fills the need by
being available to provide customers to spend time on important things, like family and
friends.

The number of movie theaters is decreasing as the major chains create megaplexes
that pile more people into smaller spaces. This profit strategy has left once popular
downtown theaters vacant. Watch n Eat Pizza is a theater/restaurant business that
believes there is a significant number of theater-goers that are craving a more satisfying
and enjoyable way to catch a movie and a bit to eat. Watch n Eat Pizza is renovating
the downtown royal Theater and creating a medium-size restaurant that will show on
demand movies that have proven to still be popular to our target market. We will offer a
totally unique dining and movie experience at a affordable price that will fill the theater
space with repeat customers.

Watch n Eat will be a restaurant and exciting Dinner Show located in Clifton,Karachi.
Upstate that celebrates the era of cultural refinement, social elegance, and general
prosperity in the last decades. The decor will be similar to that of the restaurant/dance
hall/theatres of western countries and feature artwork of the Impressionist. Hosting and
serving staff will dress in period costume.

Our menu is a varied, international, tasteful extravaganza. Each page is highly

illustrated with artists' drawings of the regional cuisine, a tiny map of the world showing
the region and indigenous ingredients. The majority of the menu is the cuisine of Italian
and French pizza. A few pages are devoted to desi Pakistani flavored Pizza. We will
offer a 10 items of beverages, including all kind of seasonal juices and soft drinks.

Watch n Eat is the first in what hopefully will become a chain of similarly themed
restaurants. It offers a new and exciting concept that is already being done successfully
in other countries. These concepts are expanding with cash driven proofs of winning
financial operation. Originally laughed at and stereotyped as ridiculous for a dining
concept, these outlets are reaching new potential and breaking previously set sales
figures. We aim to attract customers from the same market niche, but with a point of
differentiation from others.

Our market and financial analyses indicate that with a start-up expenditure of Rs:
3,000,000 we can generate Rs: 6,000,000 in sales by the end of year one, and produce
high net profits by the end of year three.

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 BUSINESS PLAN Watch N Eat

2.0 COMPANY’S VISION AND MISSION

2.1 VISION
Watch n Eat is a new business aimed at the big time. In order to reach our lofty goals,
we must focus on the mission behind the vision. It will take all the employees, owners,
founders, and vendor’s daily living the vision that watches and eats represents.

The vision manifests itself in following ways:

• To be at the pinnacle in revolutionizing the restaurants into theatre.

• Our vision is to re invent the pizza experience into a unforgettable experience .

2.2 MISSION
Watch n Eats’ mission is to create a new theater experience for our customers that will
be so enjoyable and satisfying that they will return often and recommend Watch n Eat to
their friends and family. Our customers will be delighted with our level of service, the
quality of the food, and a theater environment that is second to none. When the film
ends and the applause die out, we believe that our customers will prefer to watch a new
movie at Watch n Eat rather than to ever be squeezed into just a cinema again.

3.0 COMPANY OWNERSHIP

Watch n Eat is the realization of the founder's dreams .Watch n Eat is a new restaurant
and is projected as a Limited Partnership business of the five partners. These partners
represent sales, management, marketing, finance/administration areas, respectively.
The partners will provide funding from their own savings, which will cover start-up
expenses and provide a financial cushion for the first months of operation

General Managing Partner, will have 20% ownership

All aspects of the business will be documented to ensure the smooth functioning of
restaurant

4.0 COMPANY’S HISTORY

Watch n Eat Pizza is a single-unit, medium-sized restaurant. We focus on pizza and a
few creative Italian dishes. The restaurant will have ZamZama, Defence, Karachi as the
current home with plans to expand to New branches within five years downtown near
the major shopping centers and evening entertainment establishments. Watch n Eat is a
staff of three professional managers with 3 assistants, 3 professional chefs, 10 meal-
serving waiters and a group of 4 members who would be in charge of selecting and

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 BUSINESS PLAN Watch N Eat

playing movies. Watch n Eat profoundly has mixed intense passion with a great deal of
motivation and a whole lot of researching.

Through careful planning on the part of the founders, the start-up costs for Watch n Eat
is high, as we have to compete with strong industry rivals. It is service based business
thus requires a lot of contracts. The start-up cost investment funds were assets saved
by the founders who did restaurant business on a part-time basis before establishing
themselves as a business. However, for a complete grab on the market initial setup
includes an event hosted by Watch n Eat enhance public relations. Recognizing that in
reality not all variables are controllable, outside financing was a viable option as the
restaurant increased the budget hence a bank loan would be required.

5.0 COMPANY’S PROFILE

5.1 START-UP SUMMARY
Start-up expenses include legal costs, artwork, property rent or purchase, remodeling,
logo design, computer software, stationery, movies projector, collection of movies and
related expenses.

Start-up assets required include short-term assets (office furniture, table wear, glass
wear, signage, kitchen equipment, utensils, employees uniforms and costumes etc.)
and initial cash to handle the first few months of operations - as sales and accounts
receivable play through the cash flow. Inventory for the first two weeks of operations
will need to be ordered and delivered in the week prior to opening.

Long-term assets include office computers, serving staff workstations, kitchen terminals,
POS terminals, security and fire alarm systems, shelving, and food storage. This plan
assumes moving into a retrofit of a former restaurant where tables, chairs, kitchen
stoves and equipment are in place. If that is not available an additional Rs.15, 500,000
to 20,000,000 will be needed for a scratch start.

5.2 COMPANY GOALS

Surely, till now you have got some idea what our restaurant/theater goals really are.
Some of the major company goals are

• Be one of the top Pizza specialists in Pakistan.

• Satisfy and promote the client to increase the identity of our restaurant.

• To serve pizza along with interesting movies at the lowest possible rates.

• To meet the needs of the new and existing customers.

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 BUSINESS PLAN Watch N Eat

• To provide clients with a very pleasant ambience that will have a lasting
impression on their mind.

• To acquire the best and the latest technology and equipment necessary to make
a delicious pizza and playing a movie.

• To hire educated employees and provide them training which can result in better
customer satisfaction.

• To establish and maintain lo g term relationships with customers.

5.3 KEYS TO SUCCESS

Our keys to success include the commitment to quality by every person who is part of
the team. Each of us will be responsible to push ourselves to a higher level of
professionalism in 4 areas:

• Selection of popular films that work best in the group viewing environment; i.e.
comedies, scary or adventure films.

• Provide exceptional service that leaves an impression.

• Consistent entertainment atmosphere and product quality.

• Managing our internal finances and cash flow to enable upward capital growth.

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 BUSINESS PLAN Watch N Eat

5.4 COMPANY STRUCTURE (ORGANIZATION

CHART)

Owners

5 partners

General
Managers Chief Chef

Assistant Group
Assistant Waiters
chefs assigned for
managers
the movies

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 BUSINESS PLAN Watch N Eat

5.5 COMPANY LOCATION

Watch n Eat is located inside the city limits of Karachi. The restaurant is situated on
Block 9 near Clifton underpass,Clifton, Karachi. This place will be used for the
restaurant and a movie theater. This location consists of 600 sq yards and will be
enough for sitting 200 people within the restaurant at the same time. When the
restaurant will reach its maturity point, Watch n Eat plans to have branches in other
locations in Karachi as well as in Lahore but that will require an entirely new market
research and strategy as restaurants industry is diverse and grouped according to
provinces.

6.0 INDUSTRY ANALYSIS

6.1 INDUSTRY BACKGROUND AND OVERVIEW

Although the restaurant industry is very competitive, the lifestyle changes created by
modern living continue to fuel its steady growth. More and more people have less time,
resources, and ability to cook for themselves. Trends are very important and Watch n
Eat is tasking interest to provide lighter, healthier foods along with very interesting
family genre movies at moderate to low prices depending on the customers demand .

6.2 COMPETITORS OF WATCH N EAT:

If we look at the market we will find that there is no direct Competitor is available to our
kind of restaurants in Karachi. No restaurants offers cinema services as we are planning
to do .so in this way we are bringing a totally new concept of restaurant in Pakistan.

However, We do face indirect competition from a number of Pizza restaurants which are
serving pizza in Karachi as well as from the Cineplex which is family cinema hall.

THE RESTAURANT INDUSTRY TODAY

The food service business is one of the largest industries in the country. This number
has been increasing for the couple of years. The basic cause of increase in the demand
is improving lifestyle of the people of Pakistan .In the past five years the restaurant
industry has out-performed the national GNP by 35%. The reasons are:

1) Lifestyle changes,

2) Economic climate, and

3) Increase of product variety.

To be the market leader one has to be innovative and at the same time look for ways to
attract the customers that is the core reason for which we have decided to open a

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 BUSINESS PLAN Watch N Eat

Restaurant along with a movie theater in Karachi, so that our customers can distinguish
our self from other restaurants.

6.3 FUTURE TRENDS & STRATEGIC OPPORTUNITIES

The predicated growth trend is very positive both in short and long-term projections, as
modern living creates more demands, people will be compelled to eat more meals away
from home and enjoy a movie simultaneously.

The restaurant business is not a stable industry. From external factors like snowstorms
to some internal factors like just one piece of broken equipment can affect the amount
of business you do on any given day. These are just some of the many restaurant
problems many managers face

The hospitality industry demands special skills and qualities of its people, particularly in
the area of customer relationships management to the consumers. The restaurant must
be able to incorporate the necessity of improve training and staff performance. Training
must include intense motivation and the ability to make the employees to know the
importance of the job and to work as a team. In addition, the business must be well
managed in order to create a sense of commitment and team spirit. Training gives
managers a greater overall confidence and a better positive outlook. Profit Chain in
which well-trained and engaged employees deliver outstanding service.

Furthermore, the ways to increase customer is also vital because it could also be the
way to see how customers are satisfied with the services prepared. This can be
achieved thru advertising primarily in the offer excellent friendly customer services.
Westport Newspaper Key messages in advertising: Quality, Freshness, Affordable, and
Variety, Value. It is also necessary for the company to venture into another set or type
of foods in order to give customers several choices because of variation. Customers
enjoy the experience, become loyal customers, and positively recommend the
restaurant to others, sales increase, profits increase.

In 2006, our own Matt Bradshaw reported on Hell's Ground (Zibahkhana; pictured), the
world's first movie with Muslim zombies, made by Pakistani "film historian and ice cream
shop owner" Omar Khan. Monika Bartyzelfollowed up a few months later, as the director
expressed the hope that his movie might inspire fellow Pakistani filmmakers to take
more risks. In his review, Scott Weinberg conceded that it was "unwaveringly derivative
and preposterously gory" yet provided "a pretty energetically good time," as well as the
novelty of witnessing "Pakistan's first gore movie."

Last year, In the Name of God (Khuda Kay Liye) became the first Pakistani film to be
distributed commercially in neighboring India in more than 40 years. The New York
Times claimed Lollywood had "produced little meriting distribution in India, which is well

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 BUSINESS PLAN Watch N Eat

served by its own film industry, Bollywood" and suggested that Indian movies "have
always been hugely popular" in Pakistan.

Ramchand Pakistani, produced independently, premiered at the Tribeca Film Festival

last year and also played at the Seattle International Film Festival. Laila Lazmi, writing
in Jazbah Magazine: Women of Pakistan, expressed hope for the future: "This film is yet
another sign that the Pakistani indie filmmakers may yet succeed in reviving the
country's ailing film industry and competing in the international film scene."

Pakistani blogger Adeel Akhter, 26 years of age, despairs that 2009 has been the worst
film year in Pakistan's history, blaming the war on terrorism, the lack of power
generation, and political problems: "As a result no films have been released this year ...
film makers are sitting and waiting for a miracle to happen!"

7.0 RESTAURANT PRODUCT AND SERVICES

7.1 THE MENU:
The menu is extremely simple. Pizza is the perfect finger food for watching a movie.
We will also include select Italian dishes that fit will in the viewing environment.

7.2 MOVIES:
The films will be chosen with two target audiences in mind. The first is the families that
will come to Watch n Eat Pizza to watch movies like Shrek and Spy Kids. These
movies will be shown three times during the afternoon. The second group is young
adults who will come to the evening shows to watch movies like Jeepers Peepers, the
Fast and the Furious, and Rush Hour 2. There will be three evening showings of these
films. In addition, there will be midnight movies for the college crowd on Friday and
Saturday.

8.0 MARKETING STRATEGIES

We believe that our unique dining environment will attract our target customers. The
central location of Watch n Eat Pizza to the downtown shopping and entertainment
center makes the restaurant easily accessible. Once inside, the customer will find
watching a movie at comfortable table seating, while enjoying great food, is a
experience to repeat again and again with friends.

Our strategy is simple, we intend to succeed by giving our target customers a

combination of great food and a relaxed enjoyable environment that creates a
memorable experience.

8.1 MARKET SEGMENTATION

8.1.1 DEMOGRAPHIC:

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 BUSINESS PLAN Watch N Eat

Watch n eat general market segments are families and younger generation. Who want a
good surroundings for relaxing. We want to target people from all walk of life who can
spend money on the best movie place in the market. Main age group is 12-50 years.

They segment high incomes and business class families which can spend money on the
best movie place in the market. Main age group is 12-30 years. Watch n eats offers the
quality services and foods to all its customers.

8.1.2 PSYCHOGRAPHIC:

Watch n eat psychographic segmentation includes people with having good attitude
about watching movies and food sense and they want to have a good time with their
friends and family as described.

8.1.3 BEHAVIORAL:

Watch n eats’ behavioral segment is the class where people love to spend money on
outing.

8.2 TARGET MARKET SEGMENTATION:

The dominant target market for Watch n Eat is a regular stream of local residents in
Defence housing Authorities and near by locations. Regular and expedient customer
service at a competitive price is key to maintaining the local market share of this target
market.

Upper middle and high class family background people are the target market of watch n
eat. Like it has been discussed above about the people who are highly paid employees
and good businessmen is the target market of watch n eats. But watch n eat focused a
broad variety of customers. We can also say that it is targeting the generation X which
is more active in spending money. Watch n eat is also very good place for the students
of colleges and universities. Many students can also arrange the treat parties in watch n
eat that made it to earn more and more.

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 BUSINESS PLAN Watch N Eat

8.2.1 FAMILIES:
We are focusing on parents with children who want to catch a movie with a pizza in the
afternoon or early evening, before or after shopping at the downtown mall.

8.2.2 YOUNG ADULTS:

The second group we are going to focus on is young adults ages 18 - 26 for the evening
shows. We believe that this target group will enjoy this unique way to watch a film and
Watch n Eat Pizza will become a common place for friends to have an affordable
evening's entertainment together.

8.3 POSITIONING STRATEGY

Watch n eat is will position itself as a place which is one of its kind. Here people can
watch movies with enjoy food with first class environment. Soon its customers will
recognize that watch n eat is providing specialized services. Our main focus in
marketing will be to increase customer awareness in the surrounding community. We
will direct all of our tactics and programs toward the goal of explaining who we are and
what we are all about. We will keep our standards high, and execute the concept so that
“word-of-mouth” will be our main marketing force.

8.4 PRICING STRATEGY:

As there are no such competitors of watch n eat which could compete, therefore, the
pricing strategy adopted by watch n eat is 'market skimming'. Watch n eat has adopted
this pricing strategy as they want to hold maximum share of the market by maximum
profit. This is a golden era for watch n eat, as there are no competitors and hence, it is
free to charge any price. Watch n eat is charging higher prices due to the uniqueness of
the services it is offering. They satisfy the target market as the service quality is worth
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 BUSINESS PLAN Watch N Eat

the price paid. The pricing strategy is not just to get the worth of quality but also to
gain maximum profits before any competitor enters because then watch n eat will
have to change its pricing strategy.

8.5 PROMOTION:
Watch n eat is using many promotional strategies. The main promotion is a coupon to
purchase. This promotion is also distributed mainly by mail, but also by fliers on college
campuses around the city in order to reach the target market. It is also using billboards
on main stream places to get their customer. Watch n eat tries to attract the younger
generation as their main market segment. Apart from this watch n eat is using intensive
marketing strategies by giving ads in magazines.

9.0 SALES STRATEGY:

Our initial sales strategy is to flood our target consumers with discounted movie
coupons for the first months of operation. The Rs.200 charge for the film will be waived
with the coupon. These coupons will be in the city's daily paper as well as on the
Internet on our website, Marco Store and Imtiaz Store.

The film charge is really incidental. Watch n Eat's profits will come from food sales.
Menu pricing will reflect this focus. Our prices will be higher than a traditional Pizza
restaurant but we believe the unique dining environment will justify those prices with our
customers.

On the traditional slow days (Monday and Tuesday) we will offer cheaper fare and
market these days to college students as movie night. In addition, we will have two for
one date nights, where couples will only be charged for one admission.

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 BUSINESS PLAN Watch N Eat

10.0 MANAGEMENT SUMMARY:

The management of Watch N Eat consisit fo 5 partners and 12 other staff members
initially.

Shahzaib‘has a good H.R experience so he will be responsible for hiring, Training and
supervision of all restaurant staff. As we stated previously, he is the best in his field and
will have no trouble in assembling a team that will be eager to participate in the success
of Watch n Eat.

Salman Management focus will be marketing and responsibilities related to the

presentation of the film. It is widely acknowledged that salman is very good is this field
and has a lot of experience.

Ahmed Financial background will enable him to Control the finance and Accounts of
watch N eat .he will make sure that that the company achieve its financial goals and
stays profitable.

Owais will be responsible to supervise and monitor the the quality of the Pizza served to
the customers. And he will ensure that the customers go home fully satisfied.

Samreen will be in charge of the décor of the restaurants and she will look after the
interior of the restaurant.

10.1 PERSONNEL PLAN:

As the personnel plan shows, we expect to invest in a good team, fairly compensated.
We think the planned staff is in good proportion to the size of the restaurant and
projected revenues. Personnel Plan was the restaurant will be

Year 1
Manager Rs.1, 200,000
Hostess 1,000,000
Kitchen Staff 900,000
Cleaning 500,000
Servers 200,000
Projectionist 300,000
Total People 20
Total Payroll Rs.3, 200,000

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 BUSINESS PLAN Watch N Eat

11.0 FINANCIAL FORECAST

11.1 PROJECTED INCOME STATEMENT:
The following table and chart shows projected profit and loss.

Pro Forma Profit and Loss

Year 1 Year 2
Sales 18,092,100 19,860,000
Direct Cost of Sales 1,077,255 1,113,500
Movie Screening Expenses 775,861 663,750
Total Cost of Sales 1,953,166 2,777,250
Gross Margin 15,648,984 17,083,000
Gross Margin % 89.24% 86.42%
Expenses
Payroll 3,200,000 3,400,000
Sales and Marketing and Other Expenses 1,000,600 980,000
Depreciation 0 0
Utilities 140,400 140,400
Insurance 61,600 21,600
Rent 7,200,000 7,500,000
Payroll Taxes 43,200 46,050
Other 0 0

Total Operating Expenses 13,365,800 12,087,050

Net Profit 2,283,184 4,996,000

Net Profit/Sales 12.84% 25.48%

11.2 Projected Balance Sheet

The table shows projected balance sheet for three years.
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 BUSINESS PLAN Watch N Eat

Year 1 Year 2

Asset
Current Assets

Cash 21,600,000 29,356,000

Other Current Assets 10,000,000 1,500,000

Total Current Assets 31,600,000 30,856,000

Long-term Assets 0 0

Accumulated Depreciation 0 0

Total Long-term Assets 0 0

Total Assets 31,356,000 31,600,000

Liabilities and Capital Year 1 Year 2

Current Liabilities

Accounts Payable 5,076,300 3,804,700

Current Borrowing 0 0

Other Current Liabilities 0 0

Subtotal Current Liabilities 5,076,300 3,804,700

Long-term Liabilities 0 0

Total Liabilities 5,076,300 3,804,700

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 BUSINESS PLAN Watch N Eat

Paid-in Capital 300,000 200,000

Retained Earnings 2,283,184

Earnings 5,726,300 1,208,700

Total Capital 1,754,200 564,000

Total Liabilities and Capital 7,480,500 5,977,400

Net Worth 24,119,500 25,378,600

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