Location/Operations

Location/Facility

The proposed location for the Pizza House the first Pizza House Inc. facility will
be a single story 4000 square foot storefront located at 13185 Biscayne Blvd. in
North Miami, Florida. Pizza House, Inc. has negotiated an agreement for the lease
of this property for $2,500.00/month and lease holder will provide ample parking
with 50 parking spaces, or additional spaces on a first come first served basis. The
facility is zoned commercial, arterial C-2. Pizza House Inc. has budgeted and
already selected bids for the remodeling of the facility at $65,587, (see supporting
Documents section Buildout Estimates). The Pizza House will have ample lounge
space and table service as well as counter service for the commuter on the go. The
Ambiance will be inviting to attract frequency of locals and commuters alike. The
property is located on Biscayne Boulevard. It is the only major North/South
highway connecting downtown Miami to the affluent and densely populated Miami
Shores, North Miami, and Aventura neighborhoods east of I-95...(See supporting
Documents section Demographics). The 2001 traffic count places 66,000 cars past
the front of the Pizza House on a daily basis, and within two miles there is also
1,600,000 square feet of commercial office space for the lunch time commercial
crowd. This highway was just recently renovated and widened in 1998 to six lanes
in order to accommodate the intense daily morning and evening commuter traffic
into the city. A beautification project is scheduled to begin in 2002 and will not
affect traffic to the establishment.

Licenses and Government Regulation

Local Regulations

Pizza House Inc. (has/will) obtained the following permits required for operations
in the State of Florida, City of North Miami, and Dade County;

Permits

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We have received approval for renovation and submitted our remodeling plans to
the City of North Miami for approval. The Following is a list of permits and fees
necessary to complete our remodeling plan.

Building Permit; total estimate for renovations , $35,000.00. The fee is estimated
to be $255.00 with an application fee of $10.00 for a total of $265.00.

Electrical Permit; We will require an electrical permit for these renovations

estimated to be $ 170.00.

Plumbing Permit; A plumbing permit will be required for $ 198.50.

Sign Permit; Permit application fee of $62.00, a fee of $ 42.00, and an electrical
permit of $42.50.

TOTAL REMODELING PERMIT FEES: ............................ $ 780.00

Occupational Licenses

City of North Miami ; Total annual fee $ 147.00.

City of Miami; Total annual fee $ 125.00.

Zoning
C2, commercial arterial, Restaurant.

Health Department;

Our kitchen design plans and menu for the Pizza House have been reviewed and
have met with (tentative) approval from the Health Department. The initial
application fee review was $75.00 and with final inspection we will be required to
pay an additional fee of $265.00. Final approval and payment of this fee to the
inspector will give us the ability to open immediately.( see supporting documents
Health Department requirements.).

Liquor License (Optional)

We are applying to the State of Florida's Alcoholic Beverage Department to carry a

Beer and Wine Liquor license. The previous Restaurant was approved however the
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time to transfer has expired. The license costs $392.00 annually and $100.00 to
apply. We have included a copy of the Loan application in the supporting
documents section under Liquor License.

Fire Marshal

We have requested and will receive upon final inspection preliminary approval of
our building plan design from the Dade County Fire Marshal's office. According to
preliminary discussions our restaurant will be approved for an official capacity of
80 people subject to final inspections prior to the city's issuing our occupational
license, after the remodeling of the interior has been completed. We will be
required to pay an annual fee of $50.00 for ongoing annual inspections, as our
restaurant will seat over 40 in the dining area.

TOTAL LICENSING FEES.................................................$ 1,154.00

Utilities;

Electricity;
Total deposit necessary for activation to Florida Power and Light, $2,045.00. This
is the average of two months of the last tenant's electric bill.
Natural Gas;

Total deposit to reestablish meter and turn on service, deposit $310.00, service
charge $50.00.

Telephone;
An initial deposit of $250.00 is required for both the fax and telephone line. A
Service fee of $56 is charged for the rerunning of phone jack locations for a total of
$112.00.

Water/Sewer;

The City of North Miami is requiring a deposit of $410.00 for water/sewer

services.

Garbage/Waste Removal/Recycling;
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We will require a garbage container and route service. We have tentatively
contracted with Southern and they will require a deposit of $265.00 for the first
container delivery.

TOTAL UTILITIES DEPOSITS AND FEES.........................$ 3,442.00

Capital Expenses/Improvement Budgets:

The $150,000.00 long term, (5 year) loan in the Realistic forecast will be used for;
(see copies of all estimates in the supporting documents section).

Leasehold Deposits

The leasehold for the Pizza House requires a deposit of first and last months lease
payments in the amount of $2500.00 for a total of $5,000.00.

Leasehold Improvements ;

Remodeling build-out estimates;

Carpentry $ 5,000.00
Flooring $ 7,500.00
Painting Interior $ 2,500.00
Painting Exterior $ 3,500.00
Parking lot painting / space lines $ 750.00
Landscaping $ 1,500.00
Fixtures $ 5,000.00
Plumbing $ 10,000.00
Subtotal $ 35,750.00
Contingency, ( 20% ) $ 3,350.00
TOTAL Leasehold Improvements $ 39,100.00

(See supporting documents Build-Out)

Total Capital Expenditures;

Lease hold Deposits/First/Last $ 5,000.00

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Building Permits $ 780.00
Licensing $ 1,554.00
Utility Deposits $ 3,442.00
Remodeling Build-out $ 65,587.00
Restaurant Equipment $ 45,936.00
Furniture/Fixtures other $ 20,150.00
Total Capital Expenditures $ 142,449.00

Menu

Menu development is so important to the management of Pizza House ,Inc. that the
menu is reevaluated on a daily basis and all promotional menu items are tracked
according to popularity and operating margin. Our entire menu is priced and
portioned to reflect a minimum 30% cost of goods sold, food and 23%, beverage
( See supporting documents section, portion and pricing model, MENU) , and we
monitor the competitions advertisements daily in order to remain competitive. Our
most important offer within our menu versus our current competition is Pizza
delivery. Our classic Pizza House fare has also been designed to take advantage of
the current trends within the Industry. Our main focus is the family and locals so
we have developed our own signature New York Style . Freshness is a key
component to our menu and reflected throughout the menu, including the way that
we prepare the food to order. The customer will get it their way. Harry Smith
learned years ago that food has to touch all of the senses, and nothing smells quite
like a fresh hot garlic roll out of the oven to entice hunger.

Made in our ovens around the clock the Pizza House provides fresh garlic rolls to
every full service customer. Different types of fresh bread are made to coincide
with the Pizza House Specials and as the customer sits down, complimentary fresh
hot garlic rolls or a sample of our fresh Italian baked breads are brought
immediately to the table.

The Pizza House Menu!

New York Style Pizzas

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Medium (12") $ 9.99
Large (16") $ 10.99
Sicilian (12 slice) $ 13.50
Deluxe Medium $ 13.99 Deluxe Large ( $ 16.99)
Toppings available: Pepperoni, Sausage, Mushrooms, Meatball, Onion, Green
Peppers, Anchovies, Extra Cheese, Ham, Black Olives, Fresh garlic

Toppings per slice .75

Pizza by the slice (Cheese) $ 1.60

Calzone

Ham and Cheese 4.75

Ham and Cheese in Sauce 5.25

Grinders

New York Steak and Cheese 5.00

Meatball 4.50
Meatball with cheese 5.00
Sausage 4.75
Sausage and Peppers 5.25
Eggplant Parmigiana 5.00
Chicken Parmigiana 5.75
Veal Cutlet Parmigiana 6.00
Italian Cold Cut 4.75
(Lettuce, Tomato, and Onions)
Chicken Breast 6.00
(Lettuce, Tomato, and Onions)
Tuna 5.00
Add...cheese, peppers, or onions .75

Large Chicken Wings

Spicy or BBQ 10 piece (4.99) 20 piece (8.99)

Appetizers/Sides

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French Fries 1.95
Garden Fresh Salad 2.95
Chicken Caesar Salad 5.95
Caesar Salad 3.95
Antipasto (for two) 6.50

Entrees

Veal Cutlet Parmigiana 9.00

Veal with Peppers 9.50
Chicken Parmigiana 8.75
Italian Sausage and peppers 8.25
Eggplant Parmigiana 8.25

(Choice of Spaghetti or Salad with Entrees only)

Specialties

Lasagna 7.50
Stuffed Shells (4) 7.00
Linguini with Clam Sauce 7.25
Red or White

Baked Manicotti 7.00

Fettucini Alfredo 7.50
Ravioli (Cheese) 6.75

(Side Order of Meatballs or Sausage 2.75 )

Spaghetti

& Tomato Sauce 4.25

& Meat Sauce 5.50
& Meat Balls 5.50
& Sausage 5.50
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& Mushrooms 5.50

Beverages

Coke, Diet Coke, Birch Beer, Sprite, Grape, Orange, Iced Tea
Medium 1.00 Large 1.25

Coffee .75
Expresso 1.75

Deserts

Key Lime Pie 2.50

Canoli 2.50
Snickers Pie 2.50
Apple Pie 2.50

Personnel/Service

The Pizza House will be opened 360 days out of the year from 6:00 am to 8:00pm.
and we will use three shifts of personnel led under the management of Harry Smith
and Jim O'Neil, (See supporting documents section staff schedule, Operations
Procedures, and Employee Manual/ job descriptions)
All staff will have gone through a 2 week training program designed to educate
them on our coffees and menu as well as service.

Procedures/Controls

Cash Register/Till procedures ;

The Pizza House will be using a point of sale "Magic Touch", touch screen
operating system with two terminals for the maximum 3 waitstaff on the floor
during the lunch and Pizza House rush. Two printers, one for hot food preparation
and one for cold food preparation will be tied into the system for the kitchen, and
this same operating system will also interface with the inventory control program,
" FoodTrac " that we will be employing for real time cost control of key line item
perishables.
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Inventory;

We will be using the entire "FoodTrac" software program interfaced with our point
of sale touch screen system. This system will give us a detailed report analysis
daily of our current par and bulk inventories and allow us to catch any
discrepancies in food preparations, or pilferage. This will also allow us to
completely control our perishable consumption and manage our inventory costs
keeping necessary working capital off of the shelf and in the bank.

Ambiance and Entertainment

The Pizza House motif will be that of a New York Style Pizzeria, with comfortable
table and booth seating. Customers will feel invited to stay for any length of time
during our operating hours. Lighting will be bright and cheery during the day and
soft light with glowing candles during the evening hours. The Pizza House will
have Italian music during the morning and afternoon hours and will invite local
talent to perform on certain evenings. Once our customer has indulged in one of
our specialty pizzas and/ or one of our delectable menu items, he will certainly
return time and again.

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