Syed Kashif Ali

Entrepreneurship
Student ID # 15966
Business Plan
 Assignment # 1

Branded Cover

Owner’s name: Syed kashif Ali

Brand name: seed n salt

Concept
 A steakhouse or chophouse is
a restaurant that specializes
in steaks and chops. Modern steakhouses may also carry other
cuts of meat including poultry, roast prime rib, and veal, as
well as fish and other seafood.

Chophouses started in London in the 1690s and served

individual portions of meat, known as chops. The traditional
nature of the food served was zealously maintained through
the later 19th century despite the new cooking styles from
the Continent, which were becoming fashionable. The houses
were normally only open for men.

The steakhouse started in the United States in the mid-19th

century as a development from traditional inns and
bars. Steakhouses can be casual or formal fine dining
restaurants.

The oldest continuously operating steakhouse in the United

States is the Old Homestead Steakhouse in New York City,
established in 1868. Prior to that there were chophouses in
New York City such as Cobweb Hall, owned by David Pattullo,
which was known for their mutton chops and offered
additional menu options such as beefsteaks, lamb
kidneys, bacon, and potatoes.
Today, Steak houses are a part of many major cities and
metropolitan areas. From the cold Northeast to
the mountainous foothills around Atlanta, steakhouses can be
found in abundance. Western from Texas to California, steak
houses with Mexican and Latin American influences proliferate
the landscape.

Sample Menu

Service
 The color scheme is chosen specifically to stimulate the
appetite. You might have noticed the red and yellow
undertones in the McDonalds, KFC, Burger King, Hardees and
Subway outlets. It’s not a coincidence – these colors are there
to make you feel hungrier.

Management Team
Effective restaurant management involves several challenges,
such as public relations, inventory, staff, and customer
service. In some instances, a restaurant owner may also serve
as the manager.

Either way, a strong manager is an essential component of a

successful restaurant—they are usually the person who
handles both staff and customer issues. I & my team members
are also the motivated to welcome our costumers & deal with
them.

Thinking of my team is “The customer is always

right" continues to be the golden rule of any business. Even if
you disagree with a customer’s complaint, how you handle the
situation will determine whether the customer returns. Your
goal is to keep the customer experience positive.

Our Key differentiation will be…

 Effectively deal with customer complaints to encourage

return visits.
 Manage job expectations of staff to ensure they give
optimum effort.
 Take advantage of current modes of advertising to gain
the most exposure.
  Monitor revenue and expenses to ensure the restaurant is
operating optimally.
 Determine ways to increase sales such as special
promotions, catering services, menu changes, and
entertainment.

Design
Target Market
Targeting your market is one thing, but making sure they're
close by is another consideration that could impact your future
profitability. It won't matter that you have the exact
demographic profile for your anticipated clientele if that target
population is nowhere near your restaurant. Close proximity --
meaning within a 1- to 5-mile radius -- and placement of your
restaurant in relation to the targeted groups ensure you are
giving these groups a chance to find you.

As an upscale steakhouse establishment, presumably our

target audience is gone to upper SEL families. The key,
seemingly obvious, upshot here is to match the experience to
the market: in other words, give your upscale clientele an
upscale experience.

Location
Location: DHA phase. V Zamzama commercial lane

As we discussed above we want to meet our standard to Elite

class so our target customers will be from nearby DHA
Zamzama, Clifton etc.

Market Overview
Our restaurant is faced with the exciting opportunity of being
the first mover in the “all-you-can-eat steak buffet” concept to
become a national player. The consistent popularity of steak,
combined with a value price point in a buffet concept, has
proven to be a winning concept in other markets and will
produce the same results nationally.

In looking at our market analysis, we have defined the

following groups as targeted segments. The only exception
comes when we define our targeted segment for lunch. We
firmly believe, and have witnessed, that a much broader
appeal exists for this midday time slot because we have priced
it so low and feature our Sam’s Specialty Beef burger. Below
are our targeted market segments.
Age — Senior, Baby-Boomers, young married couples with
children, and blue-collar workers of all ages.

Family Unit — we will appeal to young families with new

babies or mature families with children under the driving age.
Most of our family units will have two wage earners.

Gender — we will equally target both sexes with a slight skew

for males due to their heavy consumption of red meat.

Income — we will appeal to the high side of low income

individuals and to all in the middle income bracket.

Occupation — we will target the blue-collar worker, young

professionals with a family, and most of mid-karachi.

Education — High school graduates, or individuals with some

college.

By our definition, we will have very broad appeal for our

concept. It is our goal to be the restaurant of choice for the
largest dining audience in Karachi.

Our lunch strategy is dual purposed. First, we are featuring

fresh ground our Specialty Beef burgers with all the fixin’s to
fill Karachi craving for hamburgers. Most folks’ idea of lunch is
a quick sandwich, not a heavy meal. Half of our hot food
selection will be replaced with sliced tomatoes and onions,
pickles and relish, and chopped or leaf lettuce. Our guests will
pick up our Specialty Beef burger at our display grill, add
melted cheese or hot BBQ sauce, and help themselves to the
hottest French fries in town seasoned with our special blend of
spices. What’s not to like about a hot, juicy our Specialty Beef
burger served right off the grill!!!
Second, we want to keep the price point at lunch as low as
possible to keep us in competition with fast-food restaurants.
At $. We are only slightly above the QSR segment and we offer
much, much more. Not only do our guests get a sandwich,
drink, and fries but also a salad, dessert and a selection of hot
food items. By reducing the hot food assortment from dinner,
we will be able to keep our food cost in line with the reduced
price. All in all, this is a win-win strategy that will broaden our
customer base at lunch to include singles, teens, and
professionals while still maintaining our core market segment

Market Trends
The trends in the market rely heavily on visual appeal, and
locations. Most restaurants overlook targeting kids as a way
to market to the parents. Our restaurant does not seek to
market to kids to get them to eat at our restaurant, but rather
as a way to get their parents to eat there.

Market Growth
Steak restaurants comprise less than 5% of the total
restaurant market. Service oriented steak houses have room
to grow. Meat and potatoes is still what local people want, and
they want it with good service.

Market Needs
The market suffers from a lack of service oriented restaurants.
The market needs a restaurant that values the customer as its
number one priority, & that value our restaurant would give.

Service Business Analysis

All restaurants combined, from fast food to fine dining, show
an average bottom line profit of 3-10%. Margins are much
better in full service restaurants with good management, good
staff, good concepts, good menus, good location and good
financial controls. A full service steakhouse with all of these
factors should show a bottom line profit of 13% – 25%.

Competition and Buying Patterns

The general nature of competition in this business, and how
the customers seem to choose one provider over another can
be measured by customer loyalty and positive word of mouth.
Customer loyalty and brand preference come from developing
a trust between the customer and the business. To be
successful in the hospitality business, one must truly believe
in, and always apply, the fundamental meaning of hospitality,
which simply stated is, one must always be hospitable, and
the customer must truly be made to feel welcome and cared
for. The trust that a customer feels, is based upon the
business’ ability to recognize what it takes to please a
customer, and then is built upon by continuously delivering to
that customer at, or above, the level of expectation that the
customer expects. Our restaurant has carefully selected a
management team that has been specially trained in the high
art of exceptional customer service. The screening, hiring and
training standards for front-of-the house staff are the highest
in the industry.

The level of attention and care that our staff bestows upon our
customers sets us far above our competition. Our restaurant
also has extremely high standards for professionalism in the
kitchen. Cleanliness, freshness of ingredients, adherence to
recipe and cooking standards, and efficiency are constantly
applied. Prices are reasonable, and are perceived as being an
exceptional value. Our restaurant offers extremely delicious
steaks, tantalizing chicken dishes, savory grilled sea foods,
tender prime rib, fresh salads, sensational appetizers,
tempting desserts and refreshing beverages. All of this can be
found in an environment with an ambience that is unusual, and
very comfortable.

“Seed n salt” is conveniently located on a highly visible

ingress near a successful mall. The restaurant has a huge,
secure parking lot, excellent ingress and egress, and a
beautiful and highly noticeable exterior. This area has other
restaurants, which is a definite plus for us. This allows us to
capitalize on a positive “clustering” effect, and works well
with our marketing strategy.

Main Competitors
Competition comes from major chains and from various
independents.

Business Participants
The general category is eating and drinking places. Typically,
this can be broken down as follows:
Fine dining (white tablecloths, expensive beverages).
Private Clubs and Country Clubs
Upscale
Upscale casual (good prices, fun) 
Boiler plate casual
Neighborhood places
Breakfast/lunch/dinner chains
Fast Food
The seed n salt will participate in the upscale casual category.

Marketing & Publicity

The restaurant business is highly competitive; we can
differentiate our business by putting in place an effective
marketing strategy.

The first step to successfully marketing your restaurant is to

create an in-depth marketing plan. This will help us to define
our brand and ensure us to know what your restaurant
marketing efforts need to achieve.

 Create a Great Website

As with any modern business, restaurants must have a
website. Your website is where customers will come for
information, such as your menu and bookings. It will also act
as a central point for your restaurant’s marketing activities.
It shows there are plenty of things restaurants can include on
their website to stand out. However, these are some of the
most effective.

Fit the website to the target audience.

Include a menu.

Show high-quality pictures.

Tell the story of your restaurant (more on that below).

Highlight your restaurant’s USP.

Let customers book directly.

There are plenty of platforms out there that can help you build
a website: WordPress, Bento Box, and Square Space are three
popular options.

 Use Your Website to Drive Reservations

Many restaurant websites allow customers to make
reservations. By making it as easy as possible for customers
to make reservations, they are more likely to do so.
Automating the reservation process also frees up the staff who
would otherwise have had to spend time answering the phone
to take reservations.

 Build a Customer App

As a platform that has helped plenty of businesses build apps,
we know how effective they can be as part of a restaurant
marketing strategy.
Apps allow businesses to showcase their menu, accept orders,
and provide coupons or offers. We found that after 12 months
of app adoption, businesses increase both their average spend
per order and their average number of orders per customer per
month.

 Timely Notifications
Restaurants with apps can use push notifications to
encourage people to visit the restaurant.

Notifications are an effective way to get in touch with

customers. As most people have their mobile device with them
at pretty much all times, notifications mean you can get
through to customers wherever they are.

According to some studies Notifications have a 26 percent

higher open rate than Email. Here are some ways our
restaurant could use notifications:

 Send reminders about bookings to decrease the chance of

no shows.
 Send offers to users to encourage them to come to the
restaurant.
 Use geo-targeting to send notifications to customers
when they are nearby the restaurant.
 Send notifications at times when users may be
considering what to eat. For example, late on a Friday
afternoon.
  Run Paid Ads
Paid social media ads are a good way to extend the reach of
your restaurant beyond your current audience.

It can be cheap to run a campaign, and social media targeting

features mean you can put your ad in front of the exact people
whom you think will be interested in your restaurant.

In short, when creating ads, it’s important to:

Be clear about what you want the ad to achieve (social media

likes, awareness, restaurant visits, etc.).

Have a clear and appealing offer.

Know your target audience and target the ad to this audience.

Use high-quality images and text.

Test different versions of your ads to see what is effective.

 Master Search Engine Optimization

Getting your restaurant on search engines can be a great way
to market your restaurant. It’ll ensure people can find your
restaurant when they are trying to decide where to eat.

While it isn’t easy to get to the first page of Google for high-
volume searches, restaurants can use local SEO and their
Google Business listing to increase the chances of being found
for lower volume searches.
These lower volume searches are often more valuable anyway.
While it is highly unlikely that someone searching for “Mexican
Food” will ever be able to visit your restaurant, someone
searching for “Mexican food near me” is practically begging to
find you.

 Optimize Your Restaurant for Local SEO

Local SEO helps small businesses get in front of people in their
local area. It helps them show up in search results when users
search for queries like “restaurants near me,” or “Mexican
food in Birmingham.” Focusing on local SEO can be effective;
back in 2018, Google said that 48% of all searches have local
intent.

Specialists & Consultants

List of outside contractors those who plan to retain, such as:

 Accountant
Our accountant will be Mr. Asif Khan, He has very much
experience about accounts & finance matters.

 Attorney Mr. Hanif will be our legal agent about tax

consultancy, he is a chartered accountant & so much
experienced person about tax matters.
  PR & Marketing
“Bulls Eye” will be our restaurant promotional agent, they will
arrange our sales promotional events through different
strategy, & they are one of the best of Activations &
promotional firm.

 Restaurant place
Our restaurant will saturated at near zamzama mall
commercial lane on 5 year’s rental contract at very
economical rent.

Business Structure
This will be a partnership business because we are asking to
our joint venture for our startup capital investment.
 Assignment # 2

Financials
 Pro forma profit and loss statement for the first three to
five years of operation
 Break even analysis
 Capital requirements budget

Mr. Syed Kashif Ali is seeking to raise 5 Million’s from as a

bank loan. The interest rate and loan agreement are to be
further discussed during negotiation. This business plan
assumes that the business will receive a 10 year loan with a
9% fixed interest rate. The financing will be used for the
following:

• Development of the location

• Financing for the first six months of operation

• Capital to purchase kitchen equipment

• Working capital

Mr. Syed Kashif Ali will contribute 3 Million’s to the venture.

Sales Forecasts
Mr. Syed Kashif Ali expects a strong rate of growth at the start
of operations. Below are the expected financials over the next
three years.

Pro forma profit and loss (yearly)

Pro forma profit and loss (yearly)

Year 1 2 3 4 5

Sales 1,000000 2,00,0000 3,500,000 4,500,000 5,50,0000

(Operating 400000 1000000 2000000 2500000 3200000

Costs)

EBITDA 600000 1000000 1500000 2000000 2300000

(Taxes, interest,

Depreciation) 100000 200000 400000 700000 880000

Net profit 500,000 800,000 1100000 1,300000 1,420000

Sales, operating costs, and profit forecast

Projected startup costs

Initial lease payments and deposits 1,000,000

Working capital 2,000000

FF&E 500000

Leasehold improvements 800000

Security deposits 500000

Insurance 200000

Kitchen equipment 2000000

Marketing budget 800000

Miscellaneous and unforeseen costs 200000

Total startup costs 8000000

Personnel plan—yearly

Year 1 2 3 4 5

Owner 40000 50000 55000 60000 70000

chef 100000 110000 120000 13000 140000

0
waiting staff 20000 25000 28000 32000
30000
busing staff 15000 17000 20000 25000
22000
administrative 10000 12000 15000 18000
17000
total 185000 204000 238000 285000
25900
0
Numbers of personnel 1 2 3 4 5

Owner 1 1 1 1 1

Chefs 3 3 3 3 3

Wait staff 4 4 4 4 4

Busing staff 2 2 2 2 2

Administrative 1 1 1 1 1

Totals 11 11 11 11 11

Source of Funds
Financing
Equity contributions

Management investment 3000000

Total equity financing 3000000

Banks and lenders Banks and lenders 5000000

Total debt financing 5000000

Total financing 8000000

General Assumptions
Year 1 2 3 4 5

Short term interest rate 9.5 9.5 9.5 9.5 9.5

Long term interest rate 10 10 10 10 10

Federal tax rate 33.3 33.3 33.3 33.3 33.3

State tax rate 5.0 5.0 5.0 5.0 5.0

Personnel taxes 15.0 15.0 15.0 15.0 15.0

Profit and Loss Statements

Years 1 2 3 4 5

Sales 1,000000 2,00,0000 3,500,000 4,500,000 5,50,0000

C.O.G.S 350000 700000 1200000 1520000 1780000

Gross Margin 65% 65% 65.7% 66% 67.3%

(Operating

Income) 650000 1300000 2300000 2980000 3720000

(Operating 400000 1000000 2000000 2500000 3200000

Costs)
EBITDA 250000 300000 300000 480000 520000

Federal tax 82500 30000 30000 25000 20000

State tax 12500 10000 8000 7000 6000

(Interest 25000 10000 8000 5000 4000

10%)

Depreciation 12500 10000 8000 7000 6000

Net profit 117500 240000 240000 436000 484000

Profit Margin 11.75% 12 % 12 % 12.75% 13.01 %

Balance Sheet
Pro forma balance sheet—yearly

Year 1

Assets Equities

cash 50000 Account payable 70000

kitchen 400000 Long term Liabilities 350000

FF & E 100000

Accumulated Net profit 117500

Depreciation 12500
 537500
537500

Year 2

Assets Equities

cash 55000 Account payable 1050000

kitchen 400000 Long term Liabilities 200000

FF & E 100000

Accumulated Net profit 240000

Depreciation 10000

545000
545000

Year 3

Assets Equities

cash 70000 Account payable 122000

kitchen 400000 Long term Liabilities 300000

FF & E 100000

Accumulated Net profit 240000

Depreciation 8000

562000
562000

Year 4

Assets Equities

cash 80000 Account payable 33000

kitchen 400000 Long term Liabilities 100000

FF & E 100000

Accumulated Net profit 436000

Depreciation 7000

573000
573000

Year 5

Assets Equities

cash 100000 Account payable 10000

kitchen 400000 Long term Liabilities 100000

FF & E 100000

Accumulated Net profit 484000

Depreciation 6000
 594000
594000

Addressing to venture capitalist

As we discuss briefly above our projections of financials that
is based on facts n figures & this will become a successful
project if you would invest your money in this business.