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Ethnic Food Restaurant
Submitted as an Internship Project Report In partial fulfillment of the requirements for the Award of degree of Master of Business Administration International Business 2009 2011
Submitted by Ankit Jain MBA IB (IV Sem)
Guided by Mr. Navneet Gera
BHARATI VIDYAPEETH DEEMED UNIVERSITY INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI An ISO 9001:2008 Certified Institute NAAC Accredited Grade A University CRISIL Grading MBA Programme A * - National Level A ** - State Level
BUSINESS PLAN ± Golden Moments Restaurant
Certificate of Originality
This is to certify that the Business Plan entitled Ethnic Food Restaurant Submitted to Bharati Vidyapeeth Deemed in University Institute of
Management & Research, New Delhi
requirement for the award of the degree of MBA is an original work carried out by Mr. Ankit Jain under the guidance of Mr. Navneet Gera. The matter embodied in this project is a genuine work done by Ankit Jain to the best of my knowledge and belief and has been submitted neither to this University nor to any other University for the fulfillment of the requirement of the course of study.
Signature of the Student
Signature of the Guide Designation
BUSINESS PLAN ± Golden Moments Restaurant
This is to certify that the Business Plan titled Ethnic Food Restaurant is an academic work done by Ankit Jain under the guidance of Mr. Navneet Gera submitted in the partial fulfillment of the requirement for the award of the Degree of MBA from Bharati Vidyapeeth Deemed University, Pune . The authenticity of the Business plan will be verified by the viva examiner which includes the verification of data the contents therein and may be rejected due to non-fulfillment of quality standards.
Prof (Dr.) Sachin S. Vernekar (Director)
BUSINESS PLAN ± Golden Moments Restaurant
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Mr. Navneet Gera for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time.
My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.
ANKIT JAIN (MBA IB & FINANCE)
BUSINESS PLAN ± Golden Moments Restaurant
creating a new dish. There are several new styles of restaurants. and delivery of their products and services has changed as well. The twenty-first century finds the restaurant business enjoying record sales but also rising labor and other costs. attending to your level of service or establishing an ambiencethese factors all contribute to exceeding the expectations of your guests. Developing the menu. leaving financial scars on some operators. Helping to meet the continuing restaurant challenges is the oncoming wave of students who have studied the culinary arts and restaurants management and who view the restaurant business as a career of choice. Tom Monaghan. designing the décor. Foods formerly considered exotic are now routinely accepted and expected. The conditions for restaurants success may change quickly. A restaurant can be fun to operate. Taste titillation comes by offering interesting foods and flavor combinations that challenge chefs and owners.Preface Opening a restaurant is a distinct challenge. It is interesting to learn that at least one billionaire. and that dozens on millionaires have acquired fortunes in restaurants. and the profit margins can be substantial. It is also a thrill that gives one the opportunity for tremendous creative expression. Ankit Jain (MBA IB & FINANCE) BUSINESS PLAN ± Golden Moments Restaurant 5 . made his fortune in the pizza business.
Limitations of Business 19 20 21 21 21 V: Manufacturing and Operations A. Opportunities and Reasons of Entry of Business D. Brief description of management team 14 14 IV: Environmental Scanning of Business A.INDEX I: Executive Summary of Business Plan A. Key elements of the plan B. Personnel needed to manage Business B. Plans for expansion 23 24 26 28 VI: Personnel Strategies A. Experience and expertise of existing personnel C. Capacity of existing facilities C. Competitors Analysis (SWOT of Competitors) C. Description of Business and target markets 8 10 11 II: Objectives of Business Plan 12 III: People (Management Team) A. Industry Analysis B. Training needs of existing personnel 30 31 32 34 BUSINESS PLAN ± Golden Moments Restaurant 6 . Location of Production facilities B.
Product Strategy IX: Financial Decisions A. Distribution Strategies B. Promotion Strategy D.VII: Market Research A. Tax Consequences of Business E. Competition 36 37 37 40 VIII: Marketing Plan 44 45 45 46 49 A. Performa financial statements and projected cash flows B. Existing Demand of target Market 2. Pricing Strategy C. Financial needs and future needs of funding D. Market Conditions 1. Current sources of funding Private and Bank funding C. Potential risk and sources of protection 52 54 56 58 60 61 X: Risk in Business 66 XI: Implementation Schedule 69 73 Appendices BUSINESS PLAN ± Golden Moments Restaurant 7 .
Chapter One Executive Summary of Business Plan BUSINESS PLAN ± Golden Moments Restaurant 8 .
We. A buffered financial plan that ensures adequate capitalization. we analyzed the market findings and built a concept around our consumers. 3. our business is built to service an unmet consumer 'want'. A common mistake for new entrepreneurs. but is utilized as our daily business roadmap. is a candid disclosure of the Golden Moments Restaurant & Lounge business proposal . Our intent is to have a definitive business. financial. have a vested stake and financial commitment in the success of this restaurant. We have based costs on our vast industry and practical experience with similar ventures. We have taken a collective look at all figures to make solid business estimates. Our financial model is rooted in industry facts. as business owners. We have taken all precautions to validate our business and financial models. not optimism. and marketing plan that not only serves our need for capital financing. focusing on realistic projections. highlighting strengths and camouflaging the risks. this restaurant/ethnic food business plan. but fully addressed in this business plan. as well as giving the business adequate funding to sustain it in the first six months of start-up. Instead of building a business around a preconceived concept. Entrepreneurs have a tendency to paint the restaurant business plan with a very optimistic brush. In other words. Our business concept was derived from detailed Market Analyses. BUSINESS PLAN ± Golden Moments Restaurant 9 . validation against National Restaurant industry cost averages. A contingency buffer is included in the start-up cost to ensure the business in not under financed. 2.our intent is to set realistic business expectations. We have accomplished this as follows: 1. and eliminate any questions about the profitability of this business venture.Executive Summary Our initial statement to Investors and Financial Lenders. and analysis against local New Delhi market averages. Our industry experience confirms a longer ramp-up stage for restaurants over other retail/service businesses.
45. Even with the worst-case sales scenario. We have evaluated traditional and non-traditional risks associated with Restaurant failure and accounted for them directly in the business plan. A solid Risk Mitigation Plan. Golden Moments will be the restaurant of choice for a mature and adult crowd. young and old. Mr. male or female.customer satisfaction is our paramount objective. The total capital requirement to launch Golden Moments Restaurant & Lounge is Rs1.000. involved with over 86 restaurant openings. the company should have over Rs.12. couples and singles. will contribute the remaining Rs30. who will be part owners with a non-managerial interest in the business.60.11. The loan will be used towards Equipment purchase.000 is allocated to start-up capital.000 in personal capital. and a rewarding place to work for the employees. Instead of dismissing the risks.000 as business operations cash reserve.000. On a linear projection. We offer fair profits for the owners and investors.4. and have addressed all financial shortfalls to ensure a successful business start-up. Our concept combines variety. y y BUSINESS PLAN ± Golden Moments Restaurant 10 . As owners. Everyone is treated fairly and with the utmost respect. Owners.50. and Rs14. We have taken the necessary precautions to ensure the business is fully capitalized. The mission is to have not only a great food selection. and training are equally important to our success. ambiance. but also efficient and superior service . Our management team has 20 years combined experience. combining an eclectic atmosphere with excellent and interesting food. entertainment and a superior staff to create a sense of 'place' in order to reach our goal of overall value in the dining/entertainment experience. Deep Management Experience. our commitment is to take personal accountability for all financial debt.00.000 in cash balance the third year. Manoj Aggarwal and Mr. participation. of which Rs96. Mission y Golden Moments will be an inspiring restaurant. and deep involvement with the New Delhi restaurant industry. we reach a Net Worth break even at the end of Year 5. 5. Construction.000. and Operational StartUp expenses. Employee welfare. the entire financial debt will be retired by Year 7. we have identified valid mitigation strategies for each. Our employees will feel a part of the success of Golden Moments Restaurant & Lounge. Design.50. Private Investors. This Plan is being submitted in order to secure a Business loan for Rs64. Ankit Jain are investing Rs16. Under a realistic scenario.55.00.
great service and atmosphere. 5. we will be able to draw seasoned and elite professionals and build a committed work force. Bank Deposits and Accounts Payable.interpreting and comparing the numbers that impact the bottom line. Portioning. Midtown/Downtown New Delhi redevelopment requires a place that will fit into the 'new look' of the community. Our eclectic menu features regional specialties around the globe. Cost Control will be an integrated function of the restaurant from the onset. Our focus is to reduce the cost of goods sold to meet our profit margin goals by managing the following crucial elements of cost: Purchasing. Employee Retention Focus: Employee retention and development programs will be a primary focus and success platform for this business. Storage. 3. We will offer a fine dining experience in an electric atmosphere. Cost Control Focus: We will control costs at all times. This lowers our immediate overhead and attracts quality staff. Receiving. We will use of this restaurant/ethnic food business plan to track actual costs against our forecasts in managing the business. Golden Moments will fill that niche. Product quality: great food. BUSINESS PLAN ± Golden Moments Restaurant 11 . Issuing Inventory. Spice of Life' Menu: The menu will appeal to a wide and varied clientele. 80 percent of the success of a restaurant is determined before it opens. to Thai and Indian curries. Order Taking. from Indian crevice. Due to intense competition. to local crab cakes. Cost control is about managing the numbers . The restaurant will stand out from the other restaurants in the area because of the unique design and decor. We have budgeted for a stock option program for Chef and Management positions to subsidize a lower salary base. 2. Rough Preparation. without exception. Service Preparation. Through these programs. one that is contemporary and entertaining. Innovative & Contemporary: The creation of a unique and innovative fine dining atmosphere will differentiate us from the competition. Cash Receipts. restaurateurs must look for ways to differentiate their business to achieve and maintain a competitive advantage. 4.Keys to Success 1. Unique.
Chapter Two Objectives of Business Plan BUSINESS PLAN ± Golden Moments Restaurant 12 .
Achieving a profitable investment return for investors for Years 2 . These are attainable targets. our stretch' is to attain 70.000 2.41% in Year 1 to 67.00.80. Averaging sales between Rs1. Expanding our marketing and advertising in New Delhi and in the neighboring suburbs to increase our customer base. Promoting and expanding the Golden Moments restaurant concept as a unique Midtown destination restaurant.25. Remaining a small. Keeping employee labor cost between 37-39% of total sales.73% by Year 3.000 per year. Improving our Gross Margin from 65.10 in Year 2.00. BUSINESS PLAN ± Golden Moments Restaurant 13 . unique restaurant with eclectic food and service.6.Objectives Golden Moments Restaurant & Lounge's objectives for the first three years of operation include: y y y y y y y y Keeping food costs at less than 35% of revenue.
Chapter Three People (Management Team) BUSINESS PLAN ± Golden Moments Restaurant 14 .
the restaurant will provide seating for 110 patrons.000 square feet. For lack of a better term we are launching a multi-ethnic' cuisine restaurant . and marketing arenas. We will draw on our Advisory Board as part of the site selection and lease negotiation. Where possible. business management. The Midtown demographics fit this concept perfectly.a restaurant concept that responds to New Delhi need for selection and choice. This concept offers customers variety. and accessibility issues will be reviewed as key criteria. Total space requirements are 3.Company Summary The Design Golden Moments Restaurant & Lounge is unique to Midtown New Delhi. consideration will be given to incorporate a dining patio. This is not a family dining establishment. BUSINESS PLAN ± Golden Moments Restaurant 15 . The restaurant features 3 venues in one (a concept called Multi-Branding'): A Tapas Lounge. parking. The Management Our management team has over 48 years combined experience in food. offering multiple dining and entertainment options within a single establishment. The spatial and menu divisions will broaden our appeal and provide our customers with a different experience on each visit. The atmosphere caters to a young but mature adult crowd. Cosmopolitan Bar. restaurant and hotel. finance. Golden Moments is a complimentary mingling of international cuisine on a single menu. In total. and Full Service Dining. Zoning. The Menu Golden Moments is focused on servicing New Delhi growing demand for an ethnic eating experience.
and have the practical experience to make this venture another great success. we will hire a General Manager to handle the day-to-day Restaurant management. owned by its founders. Ankit Jain will function as the General Manager and Executive Chef. have considerable experience in the restaurant industry. but you can inspire confidence based on what you have done. including marketing and restaurant management. These Golden Moments Management teams has deep roots in the restaurant segment. and is certified in Restaurant and Hotel Management. BUSINESS PLAN ± Golden Moments Restaurant 16 . Day to day operational management will be conducted by Manoj Aggarwal and Ankit Jain. accomplished professionals with expertise in all areas of the business. Manoj Aggarwal and Ankit Jain have a long-standing professional relationship in the restaurant industry. Management Summary The strength of our management staff positions us for success. Manoj Aggarwal (Managing Partner) and Ankit Jain (Executive Chef). Ankit Jain and Manoj Aggarwal. Management Team Golden Moments Restaurant & Lounge. with more than 20 years of experience between the key officers. understands the importance of a strong management team. You can't build investor confidence based on what you will do. as hands on managers. The strength of our management staff positions us for success. In Year 2. Attached is the portfolio of past success. Manoj Aggarwal has a background in International Business Management. We have assembled a team that embraces different disciplines. and Manoj Aggarwal as Managing Partner. The owners. This will assist Golden Moments Restaurant & Lounge to grow even further.Company Ownership The restaurant will start out as an LLC corporation.
Ownership & Management Manoj Aggarwal brings over 15 years of experience in the restaurant industry to the new joint venture. Menu and Operations Management. and is certified in Restaurant and Hotel Management. Staff Selection. Degrees. and Professional Affiliations: y MBA in International Business Management y Certified in Restaurant & Hotel Management from Bangalore University y PMP (Project Management Professional) certification y Member of the Midtown Alliance Ankit Jain: Managing Partner (Executive Chef and Restaurant Operations) Ankit Jain is an accomplished restaurateur. Manoj has over 17 years of business management in the Information Technology industry. Ankit Jain contributes the experience of his past successes. with yearly sales targets of Rs 10. Financial and Business Development) Manoj Aggarwal brings to Golden Moments an accomplished restaurant background. Start-Up and Financial forecast. Ankit Jain is responsible for the concept and the daily operations management. Manoj understands of day-to-day cash flow planning and staff management will be critical to Golden Moments financial success. as well as Implementation and Launch Management. Manoj will be the management lead for all public relations. With a degree in Economics and an accomplished career. Manoj Aggarwal is a strong business leader responsible for strategic planning and continued growth of restaurant services and business development. financial and investor services.5 crores. Like IT. Jain's Contracting responsibilities for Golden Moments included logistics. and a lifetime passion for the restaurant experience. Marketing. Certifications. BUSINESS PLAN ± Golden Moments Restaurant 17 . Mr. and is charged with leading the Restaurant Operations. Site and Lease Negotiations. In addition. having owned several full-service restaurants. successful ventures in the restaurant industry must balance capitalizing on new trends with continual quality assessment. As co-owner. Manoj Aggarwal is responsible for overall direction and operational management. Manoj Aggarwal has a background in International Business Management and Business Start-ups. Menu Definition and Training initiatives for Golden Moments Restaurant & Lounge. Manoj Aggarwal: Managing Partner (Operations. Concept Definition. exceptional business acumen.
pricing and inventory control. They will plan. Perform financial forecasting. explain. including receivables. and earnings. including reports which outline the company's income. and write. y y y BUSINESS PLAN ± Golden Moments Restaurant 18 . cash flow analysis. inventory. Prepare financial analyses of operations for guiding management. portioning. Direct preparation of budgets and financial forecasts and arrange for audits of company's accounts. including approval of all financial obligations of the company. will oversee menu development. both managers. and any decisions in these areas will be made jointly. expenses. develop. pro forma financial statements. and enforce an employee's manual for all employee-related policies. They will: y Manage working capital. as principals within the company. including capital budgeting.Managing Partner Responsibilities In addition to the management of day to day operations. cash and marketable securities. and establish customer service policies and objectives. and external financing requirements. Responsibilities for hiring and firing employees lie solely with the two operations managers. purchasing.
Chapter Four Environmental Scanning of Business BUSINESS PLAN ± Golden Moments Restaurant 19 .
The Restaurant Industry Today The food service business is the third largest industry in the country. The average American spends 15% of his/her income on meals away from home." BUSINESS PLAN ± Golden Moments Restaurant 20 . and 3) increase of product variety. The National Restaurant Association released the Foodservice Industry 2000 report that forecasted how the industry might look in the coming years. 2) economic climate. In the past five years the restaurant industry has out-performed the national GNP by 40%. healthier foods at moderate to low prices. The independent restaurant accounts for 15% of that total. This number has been increasing for the past seven years. people will be compelled to eat more meals away from home. There are 600 new restaurants opening every month and over 200 more needed to keep pace with increasing demand. Trends are very important and current interest is in lighter. Some highlights from the panel's findings: y y y y "Consumers will spend a greater proportion of their food dollar away from home. Independent operators and entrepreneurs will be the main source of new restaurant concepts. As modern living creates more demands. The reasons are 1) lifestyle changes. The Industrial Report estimates this as high as 30% over the next five years. resources. and food flavors will be important. More and more people have less time. Future Trends & Strategic Opportunities The predicated growth trend is very positive both in short and long-term projections. the lifestyle changes created by modern living continue to fuel its steady growth. Nutritional concerns will be critical at all types of foodservice operations. and ability to cook for themselves. Environmental concerns will receive increased attention.Industry Analysis Although the restaurant industry is very competitive.
A main competitor has closed down. Have a branded image. Opportunities: A new office complex is opening nearby. Have limited funds available. Employment of well-trained staff. Have a take-away option for your customers. Prices are cheaper than your competitors. A new housing development is being built nearby.SWOT Strengths: Restaurant exterior is clean and tidy. Service style is new to the area. BUSINESS PLAN ± Golden Moments Restaurant 21 . Restaurant has poor disabled facilities. Weaknesses: Restaurant is new and not established. Offer a product no other business offers. The local council offers grants for regeneration for the unused building you would like to develop. Have a good choice of items available on your menu.
BUSINESS PLAN ± Golden Moments Restaurant 22 . at a lower price and you are unable to match this. A main competitor has lowered their prices and started a price war with you. Your operating costs are set to increase soon.Threats: A high street brand is moving into the area. Another restaurant has started offering similar products to your own.
Chapter Five Manufacturing and Operations BUSINESS PLAN ± Golden Moments Restaurant 23 .
The restaurant will service lunch. BUSINESS PLAN ± Golden Moments Restaurant 24 . Restaurant Design Single-Level Design Concept: The total space requirement is 3. and after-hours dining during the week and weekends.Market brunch takeout only. and accessibility issues will be reviewed as part of this analysis. Operating Criteria The restaurant will be located in Midtown New Delhi.12 midnights Sundays .m. and after-hour patronage from the entertainment facilities in the area. dinner. Where possible. and the dining bar with 12 seats. The outlook for the future of New Delhi Midtown district is exceptionally positive and the most progressive development area in the city. 11 a. The central dining area will allocate 76 seats. Service will be available during the following hours: Lunch: Monday to Saturday.000 renovation grant for restoring and renovating the 100 year old property we plan to lease. consideration will be given to incorporate a dining patio. exotic drinks. The restaurant will operate during peak service time to take advantage of street traffic. featuring lighter fare. Dinner: Monday to Saturday. Optional Patio: During the busy summer months customers can also sit outside on our patio and we will offer a special summer menu. The market has been carefully selected and tested for the necessary demographics and retail traffic necessary to meet the goals laid down for profitability. Golden Moments will benefit from New Delhi desire to revamp the Midtown district with Rs19. 5:30 p. In total. Zoning. as well as non-alcoholic offerings.000 square feet. the lounge 22 seats.2:30 p.Location & Operations Restaurant Location Midtown New Delhi is the location selected for the Golden Moments concept.50. . The patio setting will be a fun and casual atmosphere for the summer crowd. The restaurant will feature a comfortable and open concept design.000 cars daily. the restaurant will provide seating for 110 patrons. parking.m. .m. The busy Midtown commercial/residential location has been chosen based upon a successful demographic model and a traffic count of more than 33.
Chairs.785 Rs1.81.225 25 BUSINESS PLAN ± Golden Moments Restaurant .520 Rs32.930 Rs46. Air Ducts.Lease Stools.18.88.225 Rs69. Tap & Permit Fees Business License & Temp Certificate of Occ.3000 sq.660 Rs2.835 Rs1.000 Rs46.460 Rs61.24.915 Rs1.375 Rs0 Rs49.) Flooring Fire Alarm System Security & Phone System EQUIPMENT Liquor Control System .06. Ice & Glasswasher . Interior & Dining) Engineer & Architect Fees CONSTRUCTION Plumbing HVAC (Air Return.925 Rs20.200 Rs82. Smallware (Bar & Lounge) Glassware. Flatware.470 Rs1.820 Rs0 Rs1. ft. Tables.070 Rs2. Liquor Licenses Rs0 Rs2.Lease Glassware.470 Rs0 Rs35.500 Rs184.108.40.2060 Rs1. etc.725 Rs24.775 Rs220.127.116.11. Smallware & Supplies (FOH) Dishwasher.) Electrical Disposal & Demolition Structural Construction (4 Months General Labour) Facade (Exterior Construction) Plaster (Dry Wall) Mill & Metal Work Interior Finishes (2500 .19.325 Rs17. Investor Agreements) Software: Restaurant/Inventory Software: Cost Control Impact.225 Rs0 Rs0 Rs5.Start-up Requirements Start-up Expenses PROJECT MANAGEMENT Restaurant Consultant (4 months) DESIGN Architectural Design Structural & Plumbing Design Mechanical & Electrical Design Graphic Design Electrical & Structural Engineering Fees Design Consultants (Kitchen.98.660 Rs2.05.750 Rs1.Lease Kitchen Equipment Freight Fees FF&E Taxes (Taxes on Purchase) OPERATIONAL Capitalized Legal Fees (LLC.665 Rs0 Rs32.380 Rs69.380 Rs30.600 Rs0 Rs4.36. Flatware. Uniforms POS (Point of Sale System) .485 Rs46.830 Rs7.
Training & PR Research & Development Start-Up Salary (Mngt & Chefs) Recruiting (Staff) Inspections Initial Cleaning Services Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements Rs1.25.750 Rs2.125 Rs93.650 Rs1.93.08.750 Rs18.104.22.168.785 BUSINESS PLAN ± Golden Moments Restaurant 26 .750 Rs93.135 Rs14.250 Rs2.665 Rs9.750 Rs8.000 Rs2.485 Rs4.43. Disposal. Tax & Insurance Security Deposits (Phone/Elec/Gas/Water) Initial Lease Deposits Bank & Loan Closing Costs Web Site Construction Initial Marketing.99.250 Rs11.39.000 Rs39.500 Rs10.03.000 Rs64.75.Utilities.70.750 Rs87.56.250 Rs45.
000 Rs6.00.87.165 Rs14.000 BUSINESS PLAN ± Golden Moments Restaurant 27 .51.000 Rs0 Rs66.11.00.00.91.00.135 Rs39.43.03.650 Rs1.785 Rs24.215 Rs22.865 Rs1.700 Rs46.08.56.000 Rs6.000 Rs6.08.485 Rs7.00.00.000 (Rs64.50.50.00.135) Rs1.000 Rs0 Rs0 Rs45.00.000 Rs9.91.865 Rs46.91.865 Rs0 Rs45.000 Rs7.Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Manoj Aggarwal Ankit Jain Investor 1 Investor 2 Investor 3 Investor 4 Investor 5 Midtown Revitalization Grant Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding Rs64.000 Rs6.48.04.000 Rs6.00.00.000 Rs19.
from which we will choose a modest rotating selection. The Golden Moments bar features a comprehensive selection of local and international spirits. Tapas. Golden Moments Menus Golden Moments varied international menu will feature Thai. We will also feature a moderate international beer selection on tap and in bottles. The list below offers a small selection of our opening menu offerings: Golden Moments Tapas y Shrimp Baskets w/ sweet & sour peanut caulis Minced curry beef/chicken w/ onions in roti wrap (or spring roll) y Mixed Seafood Crevice w/ couscous siding y Bamboo Chicken Satay w/ kaffir lime and Sesame marmalade Golden Moments Appetizers y Bread basket served with Olive oil. Portions will be modestly sized. Spain. beer. and other regional flavors. and Argentina. The final menu will be defined by the Executive Chef and paired with the wine menu. and the Tapas menu will play up this idea with drink suggestions. or other mixed drinks. Portugal. and the remaining labels will be available by the bottle. Our food will be of the finest quality and prepared with exotic flare. Their creative talents will complement one another. Customer satisfaction is the driving force behind our success. Approximately 25% will be available exclusively by the glass. The lounge and restaurant staff will offer the finest service in an electric atmosphere and offer customers an extraordinary dining experience.Services Golden Moments Restaurant & Lounge will feature international dishes. and Goat Cheese dip y Blue Crab Fritters with Mango-Tamarind sauce y Crab Cake medallions w/ Shrimp & Lobster Golden Moments' BUSINESS PLAN ± Golden Moments Restaurant 28 . Indian. Appetizer and Entrée selection. Black Pepper. but our hours. wine. are small dishes meant for sharing while drinking sangria. in particular. but maintain the 'favorites' for loyal patrons. target market. The menu flows together to create complementary elements. The kitchen staff will have the best in culinary education and work experience. and superior service. We have carefully selected a premium wine. an eclectic ambiance. garnished with stunning presentation. Normal dining will have a reduced Tapas. while the Fusion Dim Sum menu will have special items featured only for after-hours dining. Golden Moments marketing will focus on our exotic foods. and location will produce significant alcoholic drinks sales. Chinese. We will change our menu every 4 months. Our wine list will be modest and primarily focused on wines from California. and alcohol listing.
142. as well as a large non-alcoholic selection. Non-alcoholic drinks will be in the higher price bracket due to preparation requirements.Salads y Mixed Greens with Indian sherry wine vinaigrette y Asian Pear and Endive Salad with Blue Cheese & Walnuts Entrees y Tequila Scallops w/ a Indian sherry reduction y Thai Red Chili rubbed shrimp y Voodoo Prince Curry Chicken and Bock Chow w/sticky rice in Banana Leaf y Herb Roasted Chicken with Golden Moments' Coo-Chee (House) spices Desserts y Chocolate Chunk Bread Pudding w/ Bourbon Cherry sauce y Golden Moments Chocolate Explosion Milk.25. The restaurant will feature exotic drinks on a separate menu.5) A key source of revenue for the restaurant will be alcohol and bar sales.5 to 104. prices range from Rs52.25 to 142.50. Prices will range from Rs71. Dark and White chocolate y Golden Moments Fruit Plate Specialty Drinks & Coffees (Rs52. BUSINESS PLAN ± Golden Moments Restaurant 29 . After-hours bar service will feature selections of non-alcoholic drinks to increase bar sales during lunch and after regulatory hours. Alcoholic drink specials will be featured. Bar pricing is competitive.5.
Chapter Six Personnel Strategies BUSINESS PLAN ± Golden Moments Restaurant 30 .
620 for the first year in business. Full-time busboy (2). busboys. BUSINESS PLAN ± Golden Moments Restaurant 31 . and Investor Services. who will work a total of 754 man-hours per week and generate an average monthly gross payroll of Rs4. Ankit Jain will be the Restaurant Manager. The staff will include 13 full-time employees and 8 part-time employees. Prep cooks/dishwasher (2). taking care of Waiters and Bar Staff.Personnel Plan We believe the personnel plan is in good proportion to the size of the restaurant and projected revenues. A Sous chef with considerable experience in different restaurants (1). The estimated gross annual payroll of Rs59. Ankit will also take lead as the Executive Chef working with the Head Chef. Skilled waitresses and bartenders on weekends and evenings will make substantially more. Full-time bartender (1). he will have servers that will work as captains' (these people have experience in managing. Part-time busboy (1). y y y y y y To help Ankit. Restaurant Operations: Manoj Aggarwal will manage the Financial Management. Kitchen: The Executive Chef will be assisted by: y y y y y An Assistant Chef from a national search (1).09. bartenders) do not include anticipated tips. With average tipping rates for the New Delhi.93. He will be the primary responsible for daily Restaurant Operations. and our menu prices. waiting tables and bartending) and take care of service and make sure the restaurant is in excellent shape (2). People cleaning the restaurant (2). Cooks that work directly with Ankit or the sous chef (2). Rohini area. Servers that work part time (4). Bookkeeping. service employees should average at least twice the minimum wage in any given shift. Manoj Aggarwal will also manage the daily Restaurant Operations. Wage salaries for service personnel (waiters staff. PR/Media Advertising.820 (including Partner Salaries) is 37% of total sales. Part-time bartender (1).
20.000 per year y Ankit Jain R 4.400 per year BUSINESS PLAN ± Golden Moments Restaurant 32 .Administrative Salaries (Partners): y Manoj Aggarwal : Rs 7.82.
82.600 Rs84.600 Rs84.600 Year 2 Rs0 Rs7.56. Rs4.00 0 Rs2.00 0 Rs7.56.40 0 Rs22.214.171.1240 Rs126.96.36.1990 Rs84.Personnel Plan Year 1 General Manager (Year Rs0 2+) Partner/Manager Rs7.00 0 Rs2.02.20.00 Rs1.56.00 Rs6.60.600 Year 3 Rs4.600 Rs84.600 Rs1.08.36.00 0 0 0 0 BUSINESS PLAN ± Golden Moments Restaurant Rs84.600 Rs84.00 0 Rs7.76.08.76.00 0 Partner/Asst.00 0 Rs6.600 Rs84.16.60.00 Rs1.60.600 Rs84.600 Rs84.600 Rs188.8.131.52.40 Rs1.600 Rs84.80 0 Rs1.600 Waitperson 3 Waitperson 4 Waitperson 5 Waitperson 6 Waitperson 7 Waitperson 8 Waitperson 9 Wait/Barperson Bartender 1 Bartender 2 Busboy 1 Busboy 2 Busboy 3 Assistant Chef Rs84.00 0 Rs84.00 Rs6.40 0 Rs3.56.600 Rs84.600 Rs84.600 Rs84.600 Rs84.60.40 0 Rs184.108.40.206.60 Rs1.00 0 Rs1.98.600 Year 4 Rs4.08.12.50 0 Rs2.82.600 Rs220.127.116.110 Rs18.104.22.168.600 Rs84.600 Rs84.600 Rs84.600 Rs84.40 0 Rs1.40 0 0 0 0 Rs1.60 Rs1.600 Rs84.12.600 Rs84.80 Rs1.600 Rs84.12.40 0 Rs3.36.00 0 Rs4.36.600 Rs1.80 Rs1.600 Rs84.20.600 .00 Rs1.40 Manager/Exec.600 Rs84.60 0 Rs2.50 0 Rs84.00 0 0 0 0 Rs1.00 Rs2.00 0 Waitperson 1 Rs84.600 Rs84.600 Rs84.00 0 Rs22.214.171.124.20.00 Rs126.96.36.199.50 Rs1.00 0 Rs4.60 Rs1.00 0 Rs1.56.00 Rs2.90.600 Rs84.00 0 Hostess (Part Time) Rs1.00 0 Rs4.14.50 0 Rs2.600 Rs84.50 Rs1.36.08.08.00 0 Rs84.14.600 Rs84.40 Rs1.80 Rs1.600 Rs84.00 Rs6. Chef 0 Hostess (Full Time) Rs3.50 0 Rs7.600 Rs84.00 0 33 Rs84.60 0 0 0 0 Rs2.08.600 Rs84.22.00 0 0 0 0 Rs6.600 Rs84.600 Year 5 Rs4.600 Rs84.50 0 0 0 0 Rs1.00 Rs1.40 Rs1.50 0 Rs84.600 Waitperson 2 Rs84.80 0 0 0 0 Rs1.10.
Rs14. liquor license.40 0 Rs188.8.131.52.665 worth of current assets during start-up: y y y y Fixtures and Lighting: Rs 4.29.4 20 Rs4.40 0 Rs1.00 0 Rs3. This is especially key during the site selection and start-up stage.76.40 0 Rs0 20 Rs59.40 0 Rs0 24 Rs60. furniture.84.84. Rohini.90.750 Bar Equipment: Rs 3.000 will be allocated for business operations reserve.32 0 Rs1. We have budgeted for the services for a premier Restaurant Consultant familiar with the New Delhi Market.76.40 0 Rs1.40 0 Rs0 25 Rs64.60 0 Rs85. This company will have an integral role in validating the final restaurant location and personnel selection.8 20 Rs4. and participate on the Golden Moments Advisory Board.60 0 Rs2. Safe): Rs 97. start-up labor. and will open Golden Moments in October of this year.00 0 Rs3. ft.184.108.40.206.60 0 Rs85. At the start of business.60 0 Rs2.32 0 Rs1.84.00 0 Rs3. in Midtown New Delhi.500 Rs1.500 Rs1.55.93. rent.84. Printer. reconstruction.32 0 Rs1.84.500 Long-term Assets in the amount of Rs9.32 0 Rs1.60 0 Rs85.60 0 Rs2.94.40 0 Rs0 25 Rs64.40 0 Rs1.40 0 Rs1.40 0 Rs1.60 0 Rs220.127.116.11.84.29.63.00 0 Rs3.500 Rs1.40 0 Rs1. BUSINESS PLAN ± Golden Moments Restaurant 34 .76.99.40 0 Rs18.104.22.168.76.Sous Chef Cook 1 Cook 2 Prep Cook/Dishwasher Prep Cook/Dishwasher/Clea ning Dishwasher 1 Dishwasher 2 Cleaning/Dishwasher Open Total People Total Payroll Rs4.9 20 Start-up Summary We are currently negotiating a restaurant space of 3.63.9 20 Rs22.214.171.124.60 0 Rs126.96.36.199.86.47.745 Sound and Televisions: Rs 1.60 0 Rs85.000 sq.40 0 Rs1.86.40 0 Rs0 25 Rs64.500 Rs1.76. This is a solid start-up forecast based on our market analysis and our knowledge and experience in the industry.670 Office Equipment (2 Computers. and legal and consulting costs associated with opening our restaurant. Our start-up costs are mostly expensed equipment.86.8 20 Rs4. We will purchase the following Rs10.84.32 0 Rs1.92.40 0 Rs1. painting.500 Rs1. Fax.00 0 Rs3.94.60 0 Rs2.000 include all kitchen equipment.
with no entire over Rs300.000 in 2007 and recorded sales of Rs457. we have obtained an Rs19. and other options to improve the dining experience are also factors in customer decisions. Reasonable Prices: This was no surprise given the economic tide. The proliferation of international cookbooks. allowing budget dining in a fullservice restaurant. 50. variety is the underlying element for this concept.000 of equity investment to fully fund Golden Moments startup costs. 4.The two owners are personally committing Rs16. 3. TV cooking shows and imported goods offers ample evidence that India. customers are demanding value for their dining rupee. In addition. as a whole. Our market analysis identified the following key drivers as areas of opportunity to service New Delhi restaurant customers: 1. eating places that identify themselves as ethnic establishments numbered nearly 78.5. In fact.5crores. 00. Golden Moments takes all these factors in consideration for the design of this cosmopolitan restaurant. In addition we have an extended Tapas and Appetizer selection priced between Rs52. Our research results do not identify any single ethnic style of restaurant as desired. Golden Moments Tapas concept is built to offer differentsized portions. Our customers want the option to choose what satisfies their appetite. but our findings indicate that the décor. plus an Rs45. BUSINESS PLAN ± Golden Moments Restaurant 35 . 00. 2. Menu Variety: Ethnic restaurants are increasing in New Delhi. contingent upon locating in the proposed space. we conducted market research and built a concept around our consumers. Golden Moments menu is priced at a midtier level. We are seeking Rs30. but rather suggest that incorporating strong multi-ethnic influences in the menu selection will be popular. as part of the city's Midtown revitalization program. food magazines.5-142.Market Analysis Summary Instead of building a business around a preconceived concept. bar. Again. The Dining Experience: Customer satisfaction with food and service has been and continues to be of utmost importance. Portion Selection: Nearly 95% of our surveyed focus group endorsed having a choice of different size portions. 50.000 SBA 7(A) loan guaranty.000 grants from the city towards restoration of our historical building. This statistic is in line with findings reported by the Table service Operator Survey. is currently on an international tasting spree. Although the restaurant industry as a whole has seen growth in 2007/2008. lighting.000 of capital.
Chapter Seven Market Research BUSINESS PLAN ± Golden Moments Restaurant 36 .
BUSINESS PLAN ± Golden Moments Restaurant 37 . and comfortable restaurant options. have disposable income. They are also the most open to trying something new. cosmopolitan. and are seeking upscale. We want everyone to feel welcome and entertained. These are the types of people who frequent other restaurants and bars in the area. and sophisticated. food wise. They are likely to spend more on experiences they perceive as unique. We have defined the following groups as targeted segments that contribute to our growth projections: y y y y y The Business Person Downtown New Delhi Couples The Destination Customer High-End Singles Tourists These particular market segments are 25-45 years old.Market Segmentation Golden Moments Restaurant & Lounge intends to cater to a wide customer base. trendy. and will embrace our international fusion cuisine.
Golden Moments will break these habits.23% 5. they want to relax and use the money they are making (or is expensed by their company).76% 15. High-end Singles: We will attract them with our eclectic atmosphere and layout. They have disposable income. These are the individuals that pride themselves on socializing and dining at the premier locations .Market Analysis Year 1 Potential Customers Business Person Downtown New Delhi Couples Tourists The Destination Customer High-end Singles Total Growth 18% 32% 9.95% 6.168 4. Many of these consumers are new to New Delhi from larger cities.499 7. striking decor. away from the kids.593 12. Golden Moments will be especially appealing to married suburban couples indulging themselves with a "date night" downtown. They need a competent establishment that helps impress clients and prospects. excellent service and engaging clientele will confirm the feeling of being in "the in place" in New Delhi.348 19.47% 2.74% 29% 5.054 4. The Destination Customer: New Delhi is a much 'sectioned' city.565 11. romantic.215 4. whether they live in and around New Delhi or are here for work.527 11.311 4. These young Midtown couples are generally very successful working professionals.724 8.348 20.510 18. Our Destination Clients tend to be new suburbanites that miss the excitement of the inner city. Afterward. They spend the most on drinks.47% 13% 8% 7.141 68. Golden Moments will be a destination restaurant.The Image Seekers.223 18.950 57.982 7. BUSINESS PLAN ± Golden Moments Restaurant 38 . In most cases they are budgeting to eat out on a regular basis. and consumers often look only in their own neighborhoods for restaurant options.815 63.673 Year 2 Year 3 Year 4 Year 5 CAGR 4.411 7. accustomed to dining within the city and at non-franchised restaurants.925 17.688 21. as they don't have the time to prepare food nightly.645 10.097 21. Our international menu.818 8. enticing adult atmosphere that suggests "date." Golden Moments will be the best date location in town.914 3.944 66.140 16. using marketing to draw customers from outside the main city limits.76% Target Market Segment Strategy The Business Person: They work hard all day and often stay overnight in a strange city. and will spend quite a bit on such outings.896 4.991 55. food and tips.039 22. entertainment and events. Downtown New Delhi Couples: The restaurant will have an intimate. Golden Moments cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people.
And half of them were located in Midtown. international menu. but so is atmosphere and distinctiveness. The owners know this through their many years of experience opening. especially when combined with prior experience in the restaurant industry. New Delhi consumers are seeking variety and new experiences. Most new restaurants opened by inexperienced owners struggle or fail. Service Business Analysis The restaurant industry is highly competitive and risky. Location is clearly important. and the organizational skills to bring off what is essentially a giant catered party. running. taking orders or preparing food is money walking away. Golden Moments will be a destination dining locale. here to socialize and be entertained. with its attractive atmosphere. the ability to handle enormous pressure.Tourists: New Delhi attracts many vacationers during the summer months of May through September. Our marketing challenge is thus to stand out from our competitors. Maintaining our edge will depend partly on marketing ourselves as an adult-only destination. Any ingredients wasted in the kitchen are money thrown out. Restaurants make money by taking inexpensive ingredients. but only Golden Moments is based on sound market research in the local market. Only one of them offered traditional "southern" cooking. While some entrepreneurs think that success is as simple as a good location and a trendy concept. regionally specialized menus. However. but as one that offers consistently high quality food. A large percentage of the tourist population is vacationing singles. combining them in creative ways. and selling them at a much higher price. and management of inventory and staff have a much higher chance of success.they are not interested in family establishments. Our competitors are heading in the right direction. Any time wasted in seating customers. the top ten New Delhi restaurants shared two things: cozy. you need an understanding of the risks and financial conditions. Competition and Buying Patterns In 2007. BUSINESS PLAN ± Golden Moments Restaurant 39 . not only as the "new" restaurant. we know the truth: To succeed in the restaurant industry. cooking them properly. and lounge. menu variety. This is especially true for the tourist population that visits for sporting and social events . and a unique atmosphere. two to three times a day. those based on solid understandings of the market needs. and not a family restaurant. hip interiors and reasonably priced. and improving restaurants across North India.
6. so that word-of-mouth will be our main marketing force. Our main focus in marketing thereafter will be to increase customer awareness in the surrounding communities. Inner and Outer City Marketing campaign (i. Competitive Edge Golden Moments competitive edges are: 1. 7. We will direct all of our tactics and programs toward the goal of explaining who we are and what we do. and is willing to travel to establishments that accommodate their needs. 2) Midtown is a prime restaurant location. The Kitchen (Direct Competitor): We were able to draw some conclusions from this analysis that helped defined the concept and positioning for Golden Moments: 1) Keep the menu pricing modest but offer superior food quality and presentation. the execution of our concept is the most critical element of our plan. 3. and 3) The customer base in this segment of New Delhi is ready for after-hours dining. We intend to succeed by giving people a combination of excellent and interesting food in an environment that appeals to a wide and varied group of successful adults.Strategy and Implementation Summary Our strategy is simple. We will focus on establishing a strong identity in our community with a grand opening. 5. We will create an appealing and entertaining environment with unbeatable quality at an exceptional price. 3-Tiered spatial layout Chef Co-op program to allow new entrants. we will be the talk of the town. 8. While we are not striving to be the lowest-priced restaurant. 2. Therefore. 4. we are aiming to offer exceptional food at reasonable prices for the average restaurant diner.e. One Midtown Kitchen is in an obscure location but has thrived as one of the more successful restaurants in the area. As an exciting and eclectic restaurant. We plan to keep the menu prices under Rs300. BUSINESS PLAN ± Golden Moments Restaurant 40 . "Come to Town" promotions) Employee Training. All menu items are moderately priced for the area. We will keep our standards high and execute the concept flawlessly. The owners' thorough understandings of opening and running a restaurant An extraordinary contemporary restaurant design International menu with featured menu changes every 4 months Unique. 1. Incentive and Retention program Competitor Analysis Below are excerpts from our competitive analysis study. trainee and featured chef Chef/Management Stock Incentive Program.
to Hosting. The menu is somewhat formal for this market segment. I do feel that it has some very special elements that have helped it succeed over the past 3 years. to Wait. This serves as a true validation that the timing is right for the Golden Moments Restaurant & Lounge concept. although we do consider it an indirect' competitor. 4. 2) the evolving need for after-hours dining. but the bar attracts a good crowd. a casual dining restaurant that has evolved to be a great success story for the Midtown district. 3) Exceptional Service. 2) A club type atmosphere to entice the single scene and to drive bar sales. Swing validates some of the elements uncovered in our market research as to what the new New Delhi diners are looking for. 3. but I don't see it as a direct competitor of Golden Moments. Those elements are: 1) A Tapas and Entrée menu realizing that customers want varied meal size and variety. Cheesecake Factory (1 Restaurant Comparison): Although Cheesecake Factory is outside of Golden Moments restaurant district and not considered a direct competitor. Swing incorporates some of the characteristics that we have mapped out for Golden Moments. smaller price). 4) the appeal of live Entertainment. without any intent of dining in the restaurant. offering a broad array of menu items. During this study it was evident that some patrons came exclusively to sit at the bar. and Bar staff. situated in a busy/popular area for both business and residential traffic. Bus.2. which Golden Moments can benefit from. Swing Restaurant (Indirect Competitor): This restaurant is not in our market district and therefore not a direct competitor. 2) Location selection to benefit from core customer demographics. and 4) Menu Variety. BUSINESS PLAN ± Golden Moments Restaurant 41 . it was beneficial to analyze the most profitable restaurant in New Delhi to understand what contributes to their success. This restaurant served to validate 1) the tapas concept appeal for Midtown customers. Cheesecake Factor offers several key elements that would also benefit Golden Moments: 1) Customer Satisfaction through moderate pricing and high-quality food. Cumulus is more of a formal dining restaurant and meets a certain need within the community. and has gained popularity as a destination restaurant that can cater to business professionals as well as the local residents. 5. from the Valet. Lunacies (Direct Competitor): This restaurant is a main competitor for Golden Moments. 3) tapas as a good food concept for after-hours dining (smaller portions. Cumulus (Indirect Competitor) This restaurant has grown in popularity over the years.
we have determined that the downtown core is not a good fit for the Golden Moments concept. Lesson Learned: Golden Moments target market demographics are perfectly in alignment with the Midtown profile. this restaurant also suffered from poor visibility. New Delhi downtown core is a business district. In addition. Several factors led to closing of this restaurant: Location: This was a very common restaurant located in a core business community. We will limit our site selection to the core Midtown district and the upper Downtown district. Mumbo Jumbo depended on the business segment for their lunch and dinner profits. but to our residential core for our dinner and after-hours patronage. I also completed an analysis of this restaurant back in 2006 and compared it to this current analysis in 2008. Midtown has a business core as well as a residential core. Lesson Learned: As part of this analysis. This was a destination restaurant and a secondary selection for the general customer base in this area. and residential development for this area is at the Genesis state. Mumbo Jumbo would not be a primary selection in either case. Customer Segment: New Delhi downtown core is not ready for this type of restaurant. The business and tourist customers tend to select a restaurant from touring the area and accessibility. In the downtown core a large percentage of business is from walk-in traffic. Mumbo Jumbo was situated on a cross street behind the main street. BUSINESS PLAN ± Golden Moments Restaurant 42 . Visibility: Hand-in-hand with location. The primary customer base is the business person and tourist. We will look to the business core for our primary daytime business. The largest percentage of this customer segment will be looking for a restaurant in which to conduct business or a family establishment.Failed Restaurant Analysis: Mumbo Jumbo Mumbo Jumbo was an New Delhi restaurant attraction in the downtown core. Midtown is New Delhi major growth district and is developing the residential infrastructure in pace with the business infrastructure. the business core will look to Golden Moments as a place of socialization for dinner and after-hours unwinding. and customers who would travel from outside the downtown district to eat at the restaurant there was no static dinner segment. The restaurant was hidden in cross streets and away from the general street traffic. a strong competitor that was severely impacted by the patronage demise after 9/11.
everyone that sells prepared meals in this district is a Golden Moments competitor. but the solution is to deliver the best food at the best price with the highest level of service in one establishment. if the food and service is better at a fine dining restaurant than a casual restaurant. Market Analysis Conclusion: At the end of the day. This is the very definition of value and the concept at the heart of Golden Moments business model. BUSINESS PLAN ± Golden Moments Restaurant 43 . where is a customer more likely to go? There is no absolute answer to the question. In addition. In all. because we all compete for the same home meal replacement dollar. we will use signage and exterior décor as means to attract customers and get noticed. So.Lesson Learned: Although being situated on a main street is not as key in the Midtown district. but key restaurant disciplines (Location. but price has become a factor as a result of the economic turns. we will ensure that visibility is part of our site selection criteria. However. Customer Segment. there are two segments of the restaurant industry that are our main competition: the casual dining restaurant and the fine dining value restaurant. this restaurant was a staple in New Delhi downtown core for over 10 years. Visibility) came back to hurt them as the economic climate changed.
Chapter Eight Marketing Plan BUSINESS PLAN ± Golden Moments Restaurant 44 .
VIP lists. positioning advertisements in or near entertainment/food related editorial. BUSINESS PLAN ± Golden Moments Restaurant 45 . couples. The full Marketing program is as follows: Media Objectives and Strategy: Establish our image as a unique Midtown restaurant with great service. See attached Logo and Web design. Advertising and Promotion: Our Advertising Plan and media schedule call for targeting customers directly through local publications aimed at . making certain that they are content and satisfied with their dining experience. and every 90 days they undergo a performance appraisal. y Redirecting customers to our website to register for upcoming functions. and Social Diva.Marketing Strategy Golden Moments Restaurant & Lounge's Marketing strategy will be to promote our electric food. which all reach our targeted demographics. respectively. singles. This must be done aggressively in order to accomplish our service goals. and great food served in an eclectic atmosphere. and our new sign. y Where possible. value. and Operations Manual guide. and flash media promotions. We budgeted a great deal into the renovations and decor to generate the aesthetic appeal of Golden Moments. y Scheduling adequate frequency of ads to impact market with menu items and promotions. Wait-staff are thoroughly trained. Customer Service: In our years within the restaurant industry. We will maximize efficiency in the selection and scheduling of advertisements by: y Selecting primary business publications with high specific market penetration. customer service has always been the major draw for the dining clientele. Management recognizes the key to success at this time of initial opening is extensive media promotion. superior service. and destination customers. The New Delhi Journal Constitution. A primary part of the budget is allocated to create the media and customer buzz for the month prior to opening and the next three months after the grand opening. and exciting concepts to draw in the local repeat customers. using The Creative Loafing Dining Section. This is part of our Employee Manual. reservations. Food and atmosphere is far out-shadowed by superior customer service that turns a new customer into a repeat customer. Marketing initiatives will concentrate on the following: Building and Signage: The most important Marketing tool that we have is the exterior of our building. A healthy budget is allocated for the first year. New Delhi City Search. Management will demand the wait-staff provide the very best in quality services to the customer.
Working with The Reynolds Group Media Co. keeping key editors abreast of all new promotions.y Maximizing ad life with monthly and weekly publications." In addition to standard advertising practices. and over the first 6 months of operations. BUSINESS PLAN ± Golden Moments Restaurant 46 . with ongoing contact between key editors and top-level personnel at local dining publications. targeting each specific customer segment within a five-mile radius. We will support this plan with ads that reinforce the Golden Moments dining concept. (Golden Moments Advisory Board). location. newsletters and public announcements. we will invite the most influential reporters and editors from all local publications to Golden Moments Restaurant in order to evaluate our menu. y Produce a complete Golden Moments Restaurant history and menu offering piece to be used as the primary public relations tool for all target media editorial contact. and atmosphere. Press Release/Grand Opening: Golden Moments Restaurant will release a series of press releases on the Grand opening. y Establish contact with editorial staff for the purpose of being included in entertainment "round-ups"--product comparisons in dining publications and the local papers. Golden Moments will focus on the following publicity strategies: y Develop a sustained public relations effort. Promotional Campaign: The best way to reach our potential customers is to develop an intense advertising campaign promoting our Golden Moments concept of "Spice of Life. Our periodic customer surveys and weekly menu item sales evaluations will help us to understand what advertising is working and what is not. service. and menu introductions. Editorial Visitation: Leading up to the Grand Opening. Additionally. past happenings. Publicity Strategy: Working with The Reynolds Group. menu offering. and decor.' who still appreciate in-town dining. Our goal is to understand our customer. basically. This will also be effective for inclusion in press kits. y Develop a regular and consistent package update program for the major target media. Consumers will be encouraged to visit our website to be greeted with a flash media intro that highlights the restaurant. upcoming attractions and our dynamic menu. we will develop an advertising campaign built around our Golden Moments Diner theme. and redirect advertising as effectively as possible. who we are reaching. measure the success of our direct marketing and media activities. we will develop a consistent reach and frequency throughout the year. and new 'suburbanites. we will gain considerable recognition through newspapers.
in order to better our community.' This will serve the dual purpose of training our staff and introducing ourselves to the community. Community: Golden Moments will look for key opportunities to pair with local community development organizations and radio stations to interface with our customers. A perfect night for the local area's restaurant owners.I. Rohini Hospitality & Tourism. In addition to food and beverages. customers can choose from an array of dating packages up for auction. Our most important tactic will be word-ofmouth/in-restaurant marketing. and Media Marketing. We will continually look for local community programs in which we can participate. The list of individuals we will invite comes from the Chamber of Commerce. and give something back. the restaurant will offer a monthly dating night. we will employ three different marketing tactics to increase customer awareness of Golden Moments: In-Restaurant Marketing. Party: We will host a V. and possible Co-op efforts to promote the Midtown district. Wait Area Marketing: Wait staff will service appetizers to customers waiting to be seated or on the wait list. Public Relations Marketing. We will also invite the Midtown Alliance committee for their participation. Marketing Program In line with our Marketing strategy. Dinner before the 'Grand Opening.P. and releases on new menu items will be made monthly. chefs and staff to get together to discuss the market and food trends. Word-of-mouth/In-Restaurant Marketing y Restaurant Night: Every first Monday of the quarter. and Midtown BUSINESS PLAN ± Golden Moments Restaurant 47 . y Monthly Dating Connection: With the increasing appeal of Internet and speed dating. This will be by far the cheapest and most effective of our marketing programs. Live Entertainment parties Special Events Valentine's Day Golden Moments Halloween Masquerade party Wine tasting weekend New Year's Eve party y y y y y y y Public Relations Marketing y Rohini Hospitality & Tourism V. we will have a special evening for restaurant people. it is an effort to increase visibility and patronage across the Midtown district.Publicity Revenues: We anticipate at least 10% of our annual sales will be generated directly from our publicity.I. This is not a conflict of interest. A full media kit will be sent to all local publications.P.
This initial review and input will give critics and media commenter s a stake in Golden Moments success. Inner & Outer City Marketing: We will budget to attract customers from the suburbs. Entertainment and Dining segments. service and food. distinct billboard ads will advertise the launch of the Restaurant. We will approach them to cater business luncheons and private functions. y Critics' Choice: Prior to the Grand Opening there will be two preliminary parties catering to the Media and Critics community. through their contributions to the final design. navigable. y Restaurant and Special Events Website: We have contracted with local design teams to deliver a high-quality. Word-of-mouth referral is very powerful and particularly amongst the business community. containing interior pictures of our restaurant. This will offer us higher visibility for future functions and community events. Brochures: Make a brochure for the in-town hotels and business establishments to provide to their guests and staff. Notices of all live entertainment segments and special features will be posted to local newspapers' calendar announcements.Development group. where we will consider constructive input to make minor revisions prior to the true Grand Opening. We want their full commitment to the restaurant to draw the tourist dollars. Media Relations: Several media relations teams will be utilized to market the Restaurant. constantly updated website. Private Functions: Target marketing to businesses for regular business lunch and dinner entertaining. BUSINESS PLAN ± Golden Moments Restaurant 48 y y y . Government Relations: There are several Government offices in the Midtown/Downtown area. Billboard Advertisement: One month prior to the opening. This will be a preliminary review. menus and prices. y y y Media Marketing y Newspaper campaign: A much targeted media campaign to obtain featured articles about the restaurant in their Living. We will encourage the media and restaurant critics to meet at the restaurant and review the decor. Both companies have an insightful presence and connection with our target market. and private functions. Social Diva and Green Frog are two media companies we will utilize for media relations.
Our marketing strategies are designed to get critics and initial customers into our doors. so they know that their feedback goes directly to the owners Evaluating food choices for popularity. and keeping favorites on the menu as we rotate seasonal foods and specials Sales Forecast The following sales graph is based on first year start-up estimates only. and are unable to maintain the initial quality customers expect on return visits. or they spend all of their efforts at opening.Sales Strategy Our strategy is simple: we intend to succeed by giving our customers a combination of delicious and interesting food in an appealing environment. and to tell all their friends and acquaintances about the great experiences they just had at Golden Moments. We anticipate that the business will not be at full operating capacity until the sixth month of operations.) Although we hope to do catering for local businesses and government offices with time. This is due to the competitive nature of the market and existing customer loyalty. Golden Moments sales strategy requires consistently high quality food. and atmosphere. we will insist on payment at delivery . with excellent customer service. New restaurants often make one of two mistakes: they are unprepared or underprepared for opening. We can accomplish this by: y y y y Hiring employees who genuinely enjoy their jobs and appreciate Golden Moments unique offerings Continually assessing the quality of all aspects mentioned above. speed. Our sales strategies must take the next step and encourage customers to become repeat customers. or quality discourages customers from returning. (See Ratios table for comparisons.we will not sell on credit. service. and immediately addressing any problems Interacting with our customers personally. and initial poor service. All factors governing our sales progress are outlined below in the Important Assumptions section. BUSINESS PLAN ± Golden Moments Restaurant 49 . Our sales forecasts for years 3 through 5 are very conservative compared to industry standard growth rates. speed. whether on their first visit or their hundredth. decreasing word of mouth advertising and leading to poor revenues.
955 BUSINESS PLAN ± Golden Moments Restaurant 50 .11.5 50 Rs188.8.131.52 85 Rs44.3 20 Year 2 Rs48.51.02.00.57.88.505 Rs0 Rs1.81.335 Rs11.01.71.61.42.83.060 Year 4 Rs1.09.80.03.850 Rs0 Rs1.09.63.7 05 Rs37.Sales Forecast Year 1 Sales Total Sales Food Total Sales Bar/Beverag es Other Total Sales Direct of Sales Total Cost of Sales: Food Total Cost of Sales: Bar/Beverag es Other Subtotal Direct Cost of Sales Rs1.29.9 25 Rs33.430 Rs12.66.9 85 Rs40.04.04.305 Rs0 Rs2.33.62.06.88.720 Rs11.105 Rs0 Rs61.43.370 Rs10.610 Year 2 Rs1.600 Rs11.9 00 Year 4 Rs184.108.40.206.220.127.116.110 Rs0 Rs2.615 Year 3 Rs1.715 Year 5 Rs1.37.140 Rs0 Rs63.525 Rs0 Rs55.5 35 Cost Year 1 Rs44.89.485 Rs0 Rs1.640 Rs0 Rs62.0 50 Year 5 Rs51.76.0 60 Year 3 Rs18.104.22.168 Rs0 Rs59.39.
We will also have a monthly Paparazzi Review about what did happen at Golden Moments to get new customers interested in our restaurant. contemporary and well designed. reviews and happenings at Golden Moments. simple. Selections will be based on our pre-packaged meals available during the Sunday Market Brunch. This is also a potential for customers needing catering.Web Plan Summary Golden Moments Restaurant & Lounge will have a dedicated website. Our site will offer our menus. Our website will be used to try out new offers. prices. The website will include email capabilities and online reservations and special events scheduling. BUSINESS PLAN ± Golden Moments Restaurant 51 . A customer will be able to order a selection for pickup using a credit card. It will be the virtual business card and portfolio for the company. starting with an on-line order feature for the Sunday Market Brunch. and expanding if the concept gains favor with our customers.
Chapter Nine Financial Decisions
BUSINESS PLAN ± Golden Moments Restaurant
Golden Moments Restaurant & Lounge financial model is based on a business concept to "Plan for the Worst, but Manage for the Best." We have approached the financial plan as follows: The First Year projections anticipates a below average sales volume, below average seat turn, and above average food/beverage cost. This position will help us ensure sufficient financial planning to accommodate a reasonable ramp-up period, and business success, also ensuring that we do not enter this venture under-capitalized. Financial Pro Forma In addition to the Rs.16,50,000 of owner investment and Rs.19, 50,000 in grant monies, Golden Moments is seeking Rs 45,00,000 in long-term loans and Rs30,00,000 in investment for renovations, furniture, kitchen equipment, liquor license, food & restaurant supplies, legal fees, working capital, marketing and personnel. The Financial Plan includes:
y y y y y y y
Important Assumptions Risk Analysis & Mitigation Plan Sales Forecast (5.3.1, above) Break Even Analysis Profit and Loss Statement Cash Flow Statement Balance Sheet
Investment Opportunities The Golden Moments Investment Program allocates equity position of 20% for a total of Rs30, 00,000 in investor capital. The Investment structure is as follows:
BUSINESS PLAN ± Golden Moments Restaurant
Investment Opportunity Total Investor Funding Opportunity: Rs30,00,000 Minimum Investment Amount Rs2,25,000 Investment Term (Investor Selection) 3-5 Years Total Equity Offering (1% per Rs2,25,000 Investment) 20% Max Starting Year 2 Silver: Projected Annual IRR on Investment of Rs2,25,000 10% Rs7,35,000 Gold: Projected Annual IRR on Investment of Rs7,50,000 11% Rs14,85,000 Platinum: Projected Annual IRR on Investment of rs15,00,000 or 12% + more Residuals
Investor Payback Program Each Investor will receive equity shares as a part owner, with a non-managerial interest in the Restaurant. Based on financial estimates, the maximum annual IRR is 12%. Over and above the interest and principal repayment, Investors contributing Rs15, 00,000 or more will receive residuals for the life of the business as a bonus incentive. As with our investors, our primary goal is to earn real profits and not Paper Profits'. As such we will focus on expediting returns to investors where possible. Our existing payback structure will begin paying dividend every quarter, starting in Year 2 of business operations. Investors will receive quarterly interest and annual principal reduction payments over the full term of the investment. Payback to Financial and Private Investors will take priority over any profit shares to the owners, Manoj Aggarwal and Ankit Jain.
The financial plan depends on important assumptions, most of which are reflected in the financial statements that follow. We have been cautious with our projections, and incorporate mitigation for all manageable risks. The key underlying assumptions are:
Economy Slow Economic Recovery. We anticipate a slow-growth economy, recovering from an economic recession.
BUSINESS PLAN ± Golden Moments Restaurant
Business Growth Annual Growth Rate Percentage. We anticipate modest growth over the coming years. The financials account for the following growth projections: o Year 2: 6% Year 4: 4% o Year 3: 5% Year 5: 4% Weekly Sales Variance. Saturday will typically be our best sales for the week. The sales volume for all other days is represented as a percentage relative to Saturday. Therefore our weekly sales will vary as follows: Monday: 55% Thursday: 95% Tuesday: 60% Friday: 90% Wednesday: 75% Saturday: 100% Seasonal Sales Variance. In New Delhi, October through the late season is the most productive sales period, while the summer months tend to be the slowest restaurant period. This trend is reflected in the financials though a seasonal variance as follows (where October is targeted to be our most successful sales month): June: 70% July: 75% August: 80% September: 85% October: 100% November: 95% December: 95% January: 85% February: 95% March: 85% April: 90% May: 90%
Industry & Start-Up Fiscal Year-1 Ramp-up. Our experience in the industry confirms a longer ramp-up stage for restaurants over other retail/service businesses. Our Annual Sales Growth is based on attaining the following seating capacity percentage per dining period: y Year 1: After-Hours = 53%, Lunch = 70%, Dinner = 88% y Year 2: After-Hours = 70%, Lunch = 82%, Dinner = 100% (implied wait period) y Year 3: After-Hours = 80%, Lunch = 87%, Dinner = 100% (implied wait period) Six-Month Start-Up Stage. As a new restaurant entry to the Midtown market, the rampup in customer draw is expected to extend over 6 months. This is reflected in a higher than average monthly sales variance shown as follows (Worst-case / Expected-case): y Month 1: 32% / 51% Month 4: 64% / 75% y Month 2: 41% / 58% Month 5: 80% / 90% y Month 3: 52% / 66% Month 6: 90% / 92% Market Analysis findings are static. We assume that there are no unforeseen changes in findings outlined in the Market Analysis.
BUSINESS PLAN ± Golden Moments Restaurant
The following are baseline assumptions on Average Check Totals. Inventory turnover and Accounts Payable.7. and Average Seat Turns: Daily average for lunch spending is Rs157. Operations and Business Management Experience. How do we ensure we have addressed all resource gaps.5per person. With a focus on Cost Control.0.Pricing & Cost Control Competitive Pricing Model. Cost of goods sold have been calculated as a percentage of sales and will be monitored on a daily basis in order to keep Cost of Food within the range of 31 . Dinner = 1. We calculated worst-case monthly financial shortfall based on the ramp-up sales percentages outlined in our financial assumptions.33%.0 Year 2: After-Hours = 0. and have the right industry knowledge? Owner Manoj Aggarwal has 15 years of Restaurant Management. How do we allow an adequate startup period and capital to launch the concept and grow our customer base in a competitive sector? Our financial plan is budgeted to support the Worst-Case business scenario. Risk Analysis/Mitigation 1. Dinner = 1. Revenue calculations are based upon competitive price comparisons and established menu values in the current marketplace.0. Inventory is turned on a 7 day cycle as inventory is used daily within all categories. Their services are budgeted for the business start-up analysis. we anticipate 6 months to fine tune the restaurant operations and manage our costs within the defined tolerance range.25 Cost Control.5 per person.0. as payment is rendered with service. dinner at Rs412. 2. Seat Turn averages are modestly estimated at: y y y Year 1: After-Hours = 0.7.0. and on retainer for 4 months of business operations BUSINESS PLAN ± Golden Moments Restaurant 56 . and Cost of Beverages (Non Alcohol) below 9%. and accounts payable are projected to be 30 days. Lunch = 1. Dinner = 1. Accounts receivable turnover is calculated to be 0 days. Bar Costs within 28 . Lunch = 1.5 per person for After-Hours dining (All check totals include Beverages.0 Year 3: After-Hours = 1. We budgeted operational shortfall in an operational contingency budget that we will utilize if the need arises. but not bar). We addressed the financial risk as follows: y y y We looked at our monthly break-even.31%. Lunch = 1. rollout. and Rs262. The Financial Plan incorporates a budget for a New Delhi Restaurant Consulting group.
How do we know we have selected the right location for this concept? Again we will draw on the Consulting group that has the expertise in site selection and lease negotiation. we have an extended Tapas and Appetizer selection priced between Rs52. there are no guarantees with location. Additionally. 4. The current Economic slowdown and recovery state was a key consideration in our restaurant concept. but we took a very objective approach with our concept. the city grant award confirmed our decision. allowing budget dining in a distinguished restaurant. visibility. and business operating capital. In all. We will be offering an equity interest to our select Chef to maintain the industry knowledge. we included a contingency buffer in the financial estimates to account for any potential cost variance. 6. We have the menu priced at a midtier level with no entrée over Rs300. In addition. Our Accounting service will be contracted to a firm specializing in Restaurant accounting. As we are in the midst of an economic recovery. we have looked at this risk. What if there is an additional need for Business Capital after the Restaurant has exhausted its 6-month buffer? Our intent is to be a self-sufficient business far in advance of the 6-month probation period. Site selection was based on space. Mitigation has been our overall Restaurant concept. startup requirements. How do we confirm that our Funding Requirement is sufficient? Ankit Jain has an extensive background in restaurant startup We have leveraged our membership with the National Restaurant Association to look at industry averages for this market segment for Restaurant startup and Operations. and functionality. But as we are considering all contingencies. We have accounted for an operational contingency budget that will be used to supplement any BUSINESS PLAN ± Golden Moments Restaurant 57 .50. the Golden Moments Restaurant concept was formed specific to Midtown New Delhi. we have scaled back the size to reduce business overhead. 3. We have worked with our Restaurant Consulting firm to validate our cost estimates to their industry knowledge. Based on the results. How do we manage a successful restaurant in current market conditions? Our original effort was to open a restaurant twice the proposed size. we let the Market Analysis define the need.We will be recruiting a seasoned chef (national search) whose style is in accord with the Restaurant concept and our market segment. 5. Instead of going in with a predefined business concept.5 Rs142.
the restaurant will develop its customer base and reputation and the growth will pick up more rapidly towards the second and third years of business. and gaining efficiency and customer loyalty.slow periods.00% 0 Year 5 5 6.00% 7.00% 0 Profit and Loss Statement The most important assumption in the Projected Profit and Loss statement is the gross margin. We would also look to the partners' capital reserves as another source of funds.00% 30.00% Other 0 Year 2 2 6.00% 7.00% Long-term Interest Rate 7.00% 30.00% 30. Our next step would be to approach our private investors for capital by extending their return on investment. This transition shows the restaurant managing through its start-up period.00% 7. Month-by-month assumptions for Profit and Loss are included in the appendices. In summary.00% 7.00% Tax Rate 30. BUSINESS PLAN ± Golden Moments Restaurant 58 . General Assumptions Year 1 Plan Month 1 Current Interest Rate 6.00% 0 Year 3 3 6.00% 0 Year 4 4 6. We show an adjustment increase in Year 2 as we exit our start-up phase of the business and move into our expected annual sales forecast.00% 30.
00 .80.99.1 95 Rs0 59 Rs22.214.171.124.1 40 Rs0 Rs62.60 5 Rs18.0 Cost (Lease) 00 Payroll Taxes Rs0 (FICA/FUTA/SUTA) & BUSINESS PLAN ± Golden Moments Restaurant .000 Rs56.54.160 Rs90.00 0 Rs4.00 0 Rs97.66 .160 Rs90.06.00 0 Utility Services Rs3.Pro Forma Profit and Loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Leased Equipment Accounting/Payroll Processing Legal Retainer Fees Business Licenses Permits Credit Card Expense Year 1 Rs1.89 .68.000 Rs3.00 Fire/Theft/Liability/Liquor 0 /Product Restaurant Occupancy Rs11.000 Rs3.75.000 Rs36.00 0 Rs99.17.89% Rs64.30.000 n Expense Insurance: Rs3.900 Rs62.000 Year 2 Rs1.04.41% Rs59.2 40 Rs1.93.215 67.00 0 Rs99.94 (Gas/Electric/Water/Sewe 0 r) Telephone/Communicatio Rs27.35.00 0 Rs99.535 Rs126.96.36.199 20 Rs0 Year 4 Rs2.8 20 Rs2.000 Rs188.8.131.52 20 Rs3.500 Rs1.74 5 Rs18.000 Rs90.84 0 Rs97.40.000 Rs90.1 05 Rs1.4 20 Rs3.04.120 Rs1.04% Rs64.00 0 Rs184.108.40.206.10% Rs60.000 Rs36.11.000 Rs36.000 & Rs90.19 5 Rs12.500 Rs1.000 Rs36.000 Rs90.64 0 Bank Fees Rs18.9 20 Rs2.71.1 40 Rs220.127.116.110 Rs18.104.22.168.00 0 Rs99.79.9 55 Rs1.00 0 Rs97.9 20 Rs2.6 40 Rs22.214.171.124.96 5 Rs18.18 .050 Rs63.25.57 5 Rs11.420 68.000 Rs3.16.500 Rs1.91.00 0 Rs4.3 25 Rs0 Year 5 Rs2.060 Rs61.88 .000 Rs90.7 50 Rs0 Year 3 Rs1.160 Rs75.78.05.11.90 .74.760 69.120 Rs1.76.295 65.320 Rs59.000 Rs3.000 Rs3.31 5 Rs27.500 Rs1.29.37 0 Rs12.38.1 05 Rs0 Rs59.080 69.80.46 .06 .00 0 Rs4.000 Music & Entertainment Rs56.97.31.000 Rs56.00 0 Rs3.120 Rs1.01.25.24.83 .47.30.19% Rs126.96.36.199 5 Rs188.8.131.52 0 Rs18.9 55 Rs0 Rs63.00 0 Rs99.000 Rs56.80.44 0 Rs27.000 Rs3.47.000 Rs36.00 0 Rs97.2 40 Rs0 Rs55.99 5 Rs184.108.40.206 Rs90.36 0 Rs11.160 Training / Employee Rs0 Retention Programs Repairs & Maintenance Rs1.000 Rs3.120 Rs1.35 .6 40 Rs0 Rs61.000 Rs56.
87 5 Rs31.03.86.00 0 Owner Comps Rs31.46.83 5 Taxes Incurred Rs1.99 0 Rs1.860 Rs63.50 0 Rs54. etc.18 0 Rs1.000 Rs3.86.000 Rs3. rent. 81.87 5 Rs31.75 0 Rs31.33 5 Rs1.00 Taxes 0 EBITDA Rs7.73 0 Rs20.88. BUSINESS PLAN ± Golden Moments Restaurant 60 .860 Rs63.000 Rs3.35 5 Rs1.03.41% Rs36.1 90 12.370 Rs22.09.970 Rs38. and an estimation of other running costs.62 .000 Rs1.79.6 55 Rs26.000 Rs2.66.000 Rs1.50 0 Rs54.42.22. in this plan) at 35% of sales.50.000 Rs1.000 Rs1.37.0 50 Rs23.50 0 Rs54.08.600 Rs33.02.19% Rs36.600 Rs72. As we exit the start-up phase of the business and focus on cost control.76 0 Rs5.78.580 Rs19.22.450 per month which includes our full payroll.42.21.68 0 Net Profit/Sales 1.60 0 Rs6.860 Rs63.600 Rs72.34% Break-even Analysis For our First Year Break-Even Analysis. With direct cost of goods (inventory.08.1 25 Rs39.000 Rs2.46.860 Rs63.87 5 Rs31.280 Rs11.4 95 Profit Before Interest and Rs6.39.30 0 Interest Expense Rs2.34 0 Rs49.42.215.000 Rs1.) Total Operating Expenses Rs98. and increasing our Gross Margin.Employee Benefits Exterminator/Trash Removal Dishware/Uniforms/Cleani ng Supplies/Decor Printing/Paper/Postage/S ubscriptions Facility (Exterior Cleaning/Grease Trap/Hood/Windows.4 20 6.5 50 Rs1.68.24.000 Rs1.42. we will drive the Cost of Goods Sold (COGS) down.42.000 (ComAreaMaint.89. and utilities.39.21 .74% Rs36.96.210 Rs30.000 Rs3. We will surpass our breakeven point in October of our first year.08.87.) R&D Meals General Business Comps Rs72.37 .04.80. dropping our break-even value.09.86.76. we have an average running fixed costs of Rs9. our monthly break-even point is Rs220.127.116.11 0 Rs8.40 0 Rs1.46.1 34 Rs2.000 Rs1.43 5 Rs14.6 35 Rs20.600 Rs72.860 Other Expenses Rs63.5 65 Rs31.30 0 Net Profit Rs2.3 80 10.18.49% Rs36.6 25 Rs89.995 Rs72.47 0 Rs11.000 Rs1.0 65 Rs1.0 15 7. etc.65 .05.05.46.20.50 0 Rs54.
61.32 0 Rs1.61. and is reasonable and customary in the restaurant industry.18. Month-by-month assumptions for projected cash flow are included in the appendices.90 0 Rs2. so our cash flow does not track accounts receivable.20. Rs0 VAT. HST/GST Received New Rs0 Current Borrowing New Other Rs0 Liabilities (interestfree) Year 2 Year 3 Year 4 Year 5 Rs1.05 0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 BUSINESS PLAN ± Golden Moments Restaurant 61 . as the downturns are incorporated into the monthly revenue variance figures.05 0 Rs2. We have no sales on credit.450 Assumptions: Average Percent Variable Cost 35% Estimated Monthly Fixed Cost Rs8.18. Our projected same-day collection is critical.06 0 Rs1.88.06.Break-even Analysis Monthly Revenue Break-even Rs12.53 5 Subtotal Rs1.66. Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Rs1.81.90 0 Rs2.01. even when we reach the less profitable months.11.00.11.66.81.53 Cash from 5 Operations Additional Cash Received Sales Tax.88.06.91.91.545 Cash Flow Statement The cash flow depends on assumptions for inventory turnover and payment days.00. We do not expect to need any additional financial support.54.32 0 Rs1.01.06 0 Rs2.
64 0 Rs1.66.710 Rs18.104.22.168.47.08.88.83 5 Rs1.580 Rs22.214.171.124.53 Rs1.32 Rs1. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs1.86.920 Rs126.96.36.199.580 Rs7.83.420 Rs1.820 Rs64.06.18.27.10.New Longterm Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditur es Expenditur es from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.93.00.86 0 Rs188.8.131.520 Rs184.108.40.206.56 0 Rs64. VAT.01.55 0 Rs1.28 0 Rs64.16.90 Rs2.65 0 5 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs7.66.60 0 Rs1.580 Rs7.06 Rs2.53 Rs220.127.116.110 Rs18.104.22.168.16.91.05 5 0 0 0 0 Year 1 Year 2 Year 3 Year 4 Year 5 Rs59.580 Rs7.79.580 BUSINESS PLAN ± Golden Moments Restaurant 62 .11.16.
22.214.171.124. We do not anticipate difficulty meeting our debt obligations based on achieving the specific goals outlined in this plan.665 Rs126.96.36.199.13 0 Rs17.665 Rs45.425 Rs5.93.94.000 Rs3.500 Rs9.140 Rs3.140 Inventory Rs5.99.000 Rs1.86 0 Rs6.635 Rs10.625 Rs10.12.19.000 Rs1.000 Rs9.71.23 5 Rs2.000 Rs9.585 Other Rs10.99.14 0 Rs12.665 Rs35.90.875 Rs9.645 Rs10.18.225 Rs188.8.131.52.000 Rs184.108.40.206.220.127.116.11.085 Rs28.95.185 Rs5.000 Rs1.495 Rs83.090 Balance Sheet Statement The projected Balance Sheet is quite solid.84.120 Rs10. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Rs25.03.75.00.18.104.22.168.11 0 Rs3. On a linear projection.390 Current Assets Long-term Assets Long-term Rs9.425 Rs25.51.425 Rs22.214.171.1245 Rs66.760 Rs48. Golden Moments Restaurant & Lounge has a positive Net Worth beginning in Year 3.37.200 Rs35.000 Rs4.500 Rs126.96.36.1995 Current Assets Total Rs42.665 Rs48.87.000 Rs188.8.131.52.184.108.40.206.67.090 Rs5.000 Rs2.500 BUSINESS PLAN ± Golden Moments Restaurant 63 .710 Rs65.500 d Depreciatio n Year 2 Year 3 Year 4 Year 5 Rs28.34.000 Assets Accumulate Rs97.63.225 Rs5.185 Rs2.47.Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs1.
79.04.95.66.190 Rs69.02.46.980 Rs58.015 Rs26.725 Rs37.455 Rs9.95.100 Rs18.000 (Rs220.127.116.110 Rs30.80.62.03.375 Year 5 Rs8.51.02.910 Rs0 Rs0 Rs8.695 Rs9.890 Year 1 Rs7.95.565 BUSINESS PLAN ± Golden Moments Restaurant 64 .375 Rs69.000 (Rs23.28.910 Rs8.680 Rs25.14.000 Rs71.840 Rs39.00.71.680 Rs4.50.970 Rs18.104.22.168.23.725 Rs0 Rs0 Rs8.210 Year 3 Rs5.560 Rs51.20.420 Rs46.72.03 5) Rs14.02 0) Rs20.00.000 Rs22.214.171.1245 Rs26.560 Rs13.13 5) Rs126.96.36.199.210 Rs16.79.000 (Rs64.00.00.82.375 Rs4.330 Rs66.00.77.260 Rs32.96.44 0) Rs11.33.965 Rs53.Total Longterm Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Rs8.04.230 Rs66.00.08.495 Rs9.72.380 Rs45.62 5) Rs26.495 Year 4 Rs4.500 Rs51.000 (Rs188.8.131.52.695 Rs0 Rs0 Rs9.500 Rs58.500 Rs87.980 Rs45.375 Rs71.420 Rs184.108.40.206 Rs66.17.500 Year 2 Rs6.970 Rs0 Rs0 Rs9.24.80.000 (Rs53.72.825 Rs66.455 Rs0 Rs0 Rs9.535 Rs220.127.116.110 Rs18.104.22.168.87.27.565 Rs87.
96% Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales n. Ratio Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Industr y Profile 6. 62.77% 90.58% 100.56% 78.69% 9.75% 12.88% 11.79% 5.00% Gross 65.49% 44.39% 59.07% 21.46% 37.21% 14.44% 62. The following table outlines some of the more important ratios from the Ethnic Food Restaurants industry.19% 69.20% 15.02% 73. Industry Profile.31% 39.00% 100.00% 13.85% 4.42% 91.42% 21.a.32% 88.32% 23.00% 100.00% 17. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812.70% 18.87% 55. 12.85% 57.23% 100.68% 17.00% 36. are shown for comparison.17% 29.31% General & Administrati ve Expenses BUSINESS PLAN ± Golden Moments Restaurant 100.62% 100.34% 57.62% 39.Business Ratios Business ratios for the years of this plan are shown below.68% 5.51% 8.00 % 59.00% 100.79% 9.48% 6.44% 11.77% 94.06% 20.89% 85.00% 100.44% 11.54% 100.68% 100.62% 4.10% 68.71% 74.90% 28.32% 100.04% 69.00% 15.00 % 19. Ethnic Food Restaurants.00% 16.01. The final column. details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code.09% 65 .13% 10.89% Margin Selling.56% 25.11% 100.95% 58.21% 48.65% 8. 5812.39% 82.41% 67.00% 11.32% 63.50% 3.38% 51.09% 59.
65 n.a 9.14 30 3.27 0.38% 7.41% 54.49% 6.40 n.83 29 2.25% 0.62% 77.75% 1.8 05 8.28% 2.71 Rs55.74% 59.4 80 2.37 0.59% 2.82% 31.05% 2.38.19% 45.Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.04 55.25 0.a n.73.48 7.23% 42.27% 84.56% 1.32% Year 5 12.24% Year 3 7.a 27 3.52 n.46% 41.a n.66 5.00% 15.74% 4.a 10.01 Rs73.06 4.88% 54.a Rs33.91 11.19 2.87 3.0 55 22.70% 34.85 0.79 12.17 10.26 0.71% n.79% 5.a n.89 6.56% 5.a n.26% 7.34% 37.7 40 11.33 10.19% Year 4 10.85% 124.57 0.a 66 BUSINESS PLAN ± Golden Moments Restaurant .42% 64.80 12.39 Rs36.07% 10.88 21.93 0. Liquidity Ratios Net Working Capital Interest Coverage 1.a n.25 30 2.03 Rs42.87 4.58% 0.00% 11. to Liab.28 0.41 74.91.32% 8.27 36.23 1.35 12.74% 53.42 30 3.49% 87.17 n.22 90.17 10.00% 18.1 50 42.32.53 12.17 10.40% Year 2 6.59% 4.78.17% Year 1 1.
31 0. we see Golden Moments as meeting 80. the business has captured market share by the end of the first year. 2.a n.32 17% 0.a 4.00 4. By second quarter of Year 2. This is not a chain. Based on projections. Expansion (Option 2): Throughout our business plan we have stayed focus that Golden Moments would be successful as a larger venue.27 4.29 17% 0. At the close of Year 3.Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 0. 1. Private Sale: We are in the business of making money. profit margins are increasing. our interest is in delivering healthy BUSINESS PLAN ± Golden Moments Restaurant 67 .88 3.a n. with greater sales capacity and revenue potential. the owners will look to launch a second restaurant concept.11 6. 3. and compound the profit return for Golden Moments Investors. Payback & Exit Strategy In addressing this question we look at the Exit Strategy as a definition of our business vision and goals.4% of its optimum sales potential with the current seating and space allocation. Expansion (Option 1): Our overall goal to maintain Golden Moments as a unique and eclectic concept.44 0. At this stage the business debt is reduced.09 n.08 0. In both cases. In addition Year 2 brings an increased sales and profit margin to sustain the addition of a full-time General Manager. or B) A larger Restaurant consortium.25 5. as well as a contingency in the event the business is unsuccessful.a Expansion.a n.31 16% 0.45 0. We have addressed this question at several levels: Expansion as a Business Goal We have set multiple financial goals to grow the success of the Golden Moments concept.07 7.06 0.42 11% n.41 13. but another unique restaurant concept with strong growth potential. Expansion will be considered with our financial backers and Investor partners. and Golden Moments has established market share. Our objective with the site selection and lease negotiation is to have the opportunity to expand the restaurant as a logical growth and profit plan.35 13% 0.04 7.22 34. We will look at the private sale of the majority interest via A) Leveraged Buyout.
Under a realistic scenario the Company should have over Rs10. We step into this venture with confidence and the success of our respective prior business efforts. however sometimes ventures do not fulfill their promise. Any further outstanding balances will be borne by the investors on a weighted percentage basis of the total amounts due. BUSINESS PLAN ± Golden Moments Restaurant 68 . The entire financial debt would be retired by Year 7. In the event that our venture cannot achieve profitability and retire the encumbrances. No one attempt a business anticipating failure. Sales and profit margins will be based on the restaurant valuation in Year 3.profits to our Investors and Financial backers. If we are unable to sell the operation for sufficient proceeds we will forced to default whereby the SBA loan will be in senior standing.000 in cash in the bank after income taxes the second year. we will first attempt to sell the operation and use the proceeds to clear all outstanding balances. Financial Solvency: The financial projections indicate that exit will be achievable over 3 years for the operating capital line of credit. Exit Strategy to Retire the Business We at Golden Moments are committed to our concept and its viability. 50. 4.
Chapter Ten Implementation Schedule BUSINESS PLAN ± Golden Moments Restaurant 69 .
with dates and managers in charge of each deliverable.K.Milestones The following Milestones table lists important business milestones. Gupta Contractor X Contractor Y Contractor Z Manoj /Ankit Chef/Ankit Manoj /V.Sharma Department Owners Consultant Owners Owners Owners Legal Owners Owners Owner Owners Owners Owners Owners Owners Owners Legal Gen.Verma Contractor A Manoj /Ankit S.Verma Manoj /Ankit Manoj Manoj N. Milestones Milestone Engage Consulting Firm Site Selection Start Date Restaurant 7/31/2012 9/8/2012 9/30/2012 8/22/2012 10/27/2012 10/28/2012 10/28/2012 10/28/2012 11/4/2012 11/19/2012 11/1/2012 11/20/2012 11/20/2012 11/20/2012 11/20/2012 11/15/2012 11/24/2012 11/24/2012 11/28/2012 11/25/2012 11/25/2012 11/25/2012 12/15/2012 11/21/2012 12/15/2012 End Date 7/31/2012 9/29/2012 10/1/2012 Budget Manager Rs0 Manoj /Ankit Rs0 Rs0 Manoj /N. Contractor Owners Consultants Design Contract Design Contract Design Contract Owners Kitchen/Owner PR Marketing Final Restaurant Location Approved Investor Finance Phase Investor Capital Secured Investor Partnership LLC Formed Interview for Construction Team Recruit Chef (Equity Partner) Receive Final Contractor Bids Construction Budget Approved Secured SBA Loan Hire Restaurant Architect Hire Interior Design Firm Hire Kitchen Engineer Hire General Contractor Finalize Chef Partnership Construction Project Kickoff Finalize Lease Holder Budget Finalize Lease Restaurant Design Complete Interior Design Complete Kitchen Design Complete Restaurant Opening Date Approved Finalize Menu & Wine Selection Media Plan Review 10/22/2012 Rs0 10/27/2012 Rs0 10/31/2012 Rs0 11/3/2012 Rs0 11/14/2012 Rs0 11/17/2012 Rs0 11/19/2012 Rs0 11/21/2012 11/21/2012 11/21/2012 11/21/2012 11/21/2012 11/21/2012 11/24/2012 11/27/2012 11/28/2012 12/12/2012 12/12/2012 12/12/2012 12/15/2012 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 12/15/2012 Rs0 12/19/2012 Rs0 BUSINESS PLAN ± Golden Moments Restaurant 70 . The milestone schedule indicates our emphasis on planning and managing the details.Verma Manoj Manoj /Ankit Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit N.
Sharma Contractor A Manoj /Ankit Chef/Ankit Ankit Manoj /Ankit V. Owner/Legal Verma Contractor A Gen.Sharma Chef/Ankit Contractor A Manoj /Ankit Chef/Ankit Ankit V.K. Contractor Owners Kitchen/Owner Wine Distributor PR Marketing Gen.K.K. Contractor Owners Kitchen/Owner Wine Distributor Owners PR Marketing PR Marketing 71 BUSINESS PLAN ± Golden Moments Restaurant .Sharma Manoj /Ankit Manoj Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit V.K.K.Apply for Liquor License Apply for Construction Permit Submit Kitchen Plan for Approval Board of Health Approval for Kitchen Liquor License Approved Architect Review Board Approval Corporate Brochure Review Business & Marketing Plan Launch Golden Moments Website Order Kitchen Equipment Order Restaurant/Lounge Furniture Order Office Furniture & Supplies Business & Marketing Plan Review PR/Media Advertising (Phase 1) Production and Completion of Menus Construction of Restaurant Pre-Opening of Golden Moments Restaurant Employee Training (Phase 1) Wine Class for Employees (Phase 1) Critics' Choice VIP Party Final Construction Punch Out Restaurant Revisions Employee Training (Phase 2) Wine Class for Employees (Phase 2) Grand Opening of Fusion Restaurant VIP Party 1 VIP Party 2 12/15/2012 12/15/2012 12/15/2012 12/29/2012 12/29/2012 12/29/2012 2/2/2012 3/1/2013 3/15/2013 2/1/2013 2/2/2013 2/2/2013 4/26/2013 5/1/2013 5/5/2013 2/2/2013 5/24/2013 5/18/2013 5/18/2013 5/25/2013 5/21/2013 5/27/2013 5/27/2013 5/27/2013 6/3/2013 6/3/2013 6/4/2013 12/19/2012 Rs0 12/19/2012 Rs0 12/19/2012 Rs0 1/31/2013 1/31/2005 1/31/2013 2/13/2013 3/5/2013 3/15/2013 3/20/2013 3/20/2013 3/20/2013 4/30/2013 5/15/2013 5/17/2013 5/20/2013 5/24/2013 5/24/2013 5/24/2013 5/26/2013 5/28/2013 6/2/2013 6/2/2013 6/2/2013 6/3/2013 6/3/2013 6/4/2013 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Manoj /N.Sharma V.Sharma Design Contract City City Design Contract PR Marketing Owners Media Marketing Owners Owners Owners Owners PR Marketing Kitchen/Owner Gen. Contractor Contractor Z Board Board Contractor X V.
K.Sharma Manoj Manoj /Ankit Manoj /Ankit Manoj Manoj V.K.K.Sharma Manoj Manoj/Ankit V.K.Sharma Media Marketing Owners PR Marketing PR Marketing Owners Owners Media Marketing Media Marketing PR Marketing PR Marketing Media Marketing Owners PR Marketing PR Marketing PR Marketing Advertising (Phase 3) 9/1/2013 Golden Moments 10/31/2013 Masquerade Party Direct Mail 11/1/2013 New Corporate Accounts (5) Advertising (Phase 4) Advertising (Phase 5) Golden Moments New Year's Party Totals 9/1/2013 11/15/2013 12/15/2013 12/20/2013 9/15/2013 Rs0 10/31/2013 Rs0 11/1/2013 11/1/2013 11/19/2013 12/30/2013 1/1/2014 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 BUSINESS PLAN ± Golden Moments Restaurant 72 .Sharma V.Web Site & E-Mail Media Launch General Public Opening Launch 30-Day Grand Opening PR/Media Advertising (Phase 2) Business & Marketing Plan Review Business & Marketing Plan Review Update Brochure Direct Mail 5/1/2013 6/5/2013 5/1/2013 6/1/2013 7/5/2013 8/2/2013 8/2/2013 8/16/2013 6/5/2013 6/5/2013 6/5/2013 6/14/2013 7/9/2013 8/6/2013 8/13/2013 8/16/2013 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Manoj Manoj /Ankit V.Sharma V.Sharma V.K.K.
29.485 Rs0 Rs1.76.06.525 Rs0 Rs55.5 35 Cost Year 1 Rs44.04.060 Year 4 Rs1.9 00 Year 4 Rs50.335 Rs11.1 85 Rs44.5 50 Rs47.09.12.66.91.420 Rs0 Rs2.0 60 Year 3 Rs49.01.305 Rs0 Rs2.57.715 Year 5 Rs1.140 Rs0 Rs63.720 Rs11.105 Rs0 Rs22.214.171.124 50 Year 5 Rs51.40.7 05 Rs37.80.9 85 Rs40.88.640 Rs0 Rs62.955 BUSINESS PLAN ± Golden Moments Restaurant 73 .430 Rs12.62.505 Rs0 Rs1.04.81.41.600 Rs11.89.240 Rs0 Rs126.96.36.199.81.610 Year 2 Rs1.370 Rs10.615 Year 3 Rs188.8.131.52 25 Rs184.108.40.206.42.09.83.61.02.88.00.855 Rs0 Rs1.03.11.Appendix Sales Forecast Year 1 Sales Total Sales Food Total Sales Bar/Beverag es Other Total Sales Direct of Sales Total Cost of Sales: Food Total Cost of Sales: Bar/Beverag es Other Subtotal Direct Cost of Sales Rs1.85.3 20 Year 2 Rs48.33.
84 0 Rs97.57 5 Rs11.9 20 Rs2.71.000 Rs36.060 Rs61.31 5 Rs27.44 0 Rs220.127.116.11.74 5 Rs18.320 Rs59.36 0 Rs11.66.96 5 Rs18.80.7 50 Rs0 Year 3 Rs1.160 Rs90.000 Rs36.1 95 Rs0 74 Rs2.215 67.15 0 Rs18.1 05 Rs0 Rs59.9 55 Rs1.160 Training / Employee Rs0 Retention Programs Repairs & Maintenance Rs1.000 Rs3.1 40 Rs1.61.06.21.000 Rs56.000 Rs90.19% Rs64.4 20 Rs3.000 Rs3.53.35 .24.00 0 Rs97.000 Rs3.33.000 Rs3.88 .00 Fire/Theft/Liability/Liquor 0 /Product Restaurant Occupancy Rs11.500 Rs18.104.22.168.00 0 Utility Services Rs3.160 Rs75.35.05.00 0 Rs97.89 .41% Rs59.000 Rs3.11.000 Year 2 Rs1.1 40 Rs0 Rs62.0 Cost (Lease) 00 Payroll Taxes Rs0 (FICA/FUTA/SUTA) & BUSINESS PLAN ± Golden Moments Restaurant .19 5 Rs12.160 Rs90.900 Rs22.214.171.124% Rs126.96.36.1990 Rs1.66.120 Rs1.66 .35.36 5 Rs27.000 Rs3.000 Rs90.35.6 40 Rs1.00 .000 Rs90.16.81.04% Rs64.00 0 Rs4.000 Rs36.29.000 Rs3.000 Rs2.Pro Forma Profit and Loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Leased Equipment Accounting/Payroll Processing Legal Retainer Fees Business Licenses Permits Credit Card Expense Year 1 Rs1.00 0 Rs99.97.000 Music & Entertainment Rs56.1 05 Rs1.90 .080 188.8.131.525 Rs55.91.00 0 Rs184.108.40.206.74.8 20 Rs3.2 40 Rs1.000 & Rs220.127.116.11 40 Rs0 Rs55.40.120 Rs1.25.120 Rs1.79.00 0 Rs99.04.00 0 Rs99.00 0 Rs99.04.90.000 Rs90.00 0 Rs4.00 0 Rs99.94 (Gas/Electric/Water/Sewe 0 r) Telephone/Communicatio Rs27.000 Rs36.80.00 0 Rs97.3 25 Rs0 Year 5 Rs18.104.22.1680 Rs1.120 Rs1.760 69.17.8 20 Rs2.500 Rs1.050 Rs63.89% Rs64.00 0 Rs3.83 .5 20 Rs0 Year 4 Rs2.00 0 Rs22.214.171.1245 65.68.46 .160 Rs126.96.36.199.000 Rs56.500 Rs1.420 68.99 5 Rs27.30.93.06 .64 0 Bank Fees Rs18.000 n Expense Insurance: Rs3.000 Rs56.6 40 Rs0 Rs61.9 20 Rs2.99.9 55 Rs0 Rs63.37 0 Rs12.000 Rs56.01.000 Rs36.29.60 5 Rs18.18 .25.
08.76.600 Rs33.40 0 Rs1.42.05.000 Rs2.30 0 Interest Expense Rs2.68 0 Net Profit/Sales 1.19% Rs36.75 0 Rs31.09.000 Rs1.08.000 Rs1.04.000 Rs2.1 90 12.30 0 Net Profit Rs2.) R&D Meals General Business Comps Rs72.0 15 7.000 Rs3.50 0 Rs54.73 0 Rs20.3 80 10.00 0 Owner Comps Rs31.86.76 0 Rs5.65 .860 Rs63.03.6 35 Rs20.280 Rs11.6 25 Rs89.46.18.000 Rs1.860 Other Expenses Rs63.09.35 5 Rs1.370 Rs22.0 50 Rs188.8.131.52 0 Rs6.89.50 0 Rs54.33 5 Rs1.970 Rs38.0 65 Rs1.24.860 Rs63.000 Rs184.108.40.206 .99 0 Rs1.47 0 Rs11.580 Rs19.000 Rs3.18 0 Rs1.1 25 Rs39.44 0 Rs220.127.116.11.000 Rs3.995 Rs72.42.34 0 Rs49.000 (ComAreaMaint.46.000 Rs1.62 .74% Rs36.860 Rs63.5 65 Rs31.02.600 Rs72. etc.42.87 5 Rs31.37.000 Rs1.79.210 Rs30.43 5 Rs18.104.22.168.00 Taxes 0 EBITDA Rs7.600 Rs22.214.171.124 5 Taxes Incurred Rs1.87.50 0 Rs54.600 Rs72.1 34 Rs2.6 55 Rs26.000 Rs1.4 95 Profit Before Interest and Rs6.50 0 Rs54.12.5 50 Rs1. etc.126.96.36.199.05.4 20 6.46.Employee Benefits Exterminator/Trash Removal Dishware/Uniforms/Cleani ng Supplies/Decor Printing/Paper/Postage/S ubscriptions Facility (Exterior Cleaning/Grease Trap/Hood/Windows.87 5 Rs31.15.34% BUSINESS PLAN ± Golden Moments Restaurant 75 .49% Rs36.) Total Operating Expenses Rs98.21 .860 Rs63.000 Rs3.87 5 Rs31.39.08.41% Rs36.42.000 Rs1.
66.66.06 0 Rs2.06 0 Rs1.88.81.06.32 Rs1.53 Cash 5 Received Expenditur Year 1 es Expenditur es from Year 2 Year 3 Year 4 Year 5 Rs188.8.131.52 0 Rs1.32 0 Rs1.Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Rs1.53 Cash from 5 Operations Additional Cash Received Sales Tax. Rs0 VAT.01.61. HST/GST Received New Rs0 Current Borrowing New Other Rs0 Liabilities (interestfree) New Long.90 0 Rs184.108.40.206.81.90 0 Rs2.00.05 0 Rs2.61.06.88.Rs0 term Liabilities Sales of Rs0 Other Current Assets Sales of Rs0 Long-term Assets New Rs0 Investment Received Subtotal Rs1.11.53 5 Subtotal Rs220.127.116.11.91.05 0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs1.00.66.06 Rs2.90 Rs2.18.00.01.05 0 0 0 0 Year 2 Year 3 Year 4 Year 5 BUSINESS PLAN ± Golden Moments Restaurant 76 .81.06.01.
86.93.425 Rs18.104.22.1680 Rs1.00.79.000 Rs1.140 Rs3.580 Rs22.214.171.124.13 0 Rs17.79.085 Rs28.000 Rs1.000 Rs1.47.56 0 Rs64.14.000 Rs1.23.905 Rs66.16.11 0 Rs3.710 Rs126.96.36.199.86.28 0 Rs64.63.185 Rs2.820 Rs64.47.86 0 Rs6.53 Rs1.420 Rs1.18. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Rs188.8.131.52.580 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs184.108.40.206.79.55 0 Rs220.127.116.11.580 Rs7.03.74.60 0 Rs18.104.22.168 0 Rs1.Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.920 Rs1.760 Rs48.76.580 Rs7.225 Rs1.23 5 Rs2.08.50.11.820 Rs90.84.200 Rs35.83 5 Rs22.214.171.124.65 0 5 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs126.96.36.199.41.64 0 Rs1.88. VAT.93.425 Rs1.66.580 Rs7.16.090 BUSINESS PLAN ± Golden Moments Restaurant 77 .14 0 Rs12.11.37.
000 Rs53.000 Rs2.455 Rs9.500 Rs188.8.131.520 Rs9.44 Rs184.108.40.206.695 Rs0 Rs0 Rs9.455 Rs0 Rs0 Rs9.725 Rs30.03 Rs16.11.225 Rs5.27.000 (Rs220.127.116.11 Rs66.13 Year 2 Year 3 Year 4 Year 5 Rs28.000 Assets Accumulate Rs97.87.79.000 (Rs41.500 Rs9.Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Rs18.104.22.168.14.390 Current Assets Long-term Assets Long-term Rs9.260 Rs22.214.171.124.92.17.95.02 Rs9.08.495 Year 4 Rs4.665 Rs45.84.000 Capital Retained (Rs64.710 Rs65.47.20.000 Rs126.96.36.199.665 Rs35.825 Rs66.00.95.80.000 (Rs23.87.00.62.95.000 Rs188.8.131.52.500 d Depreciatio n Total Long.00.Rs8.140 Inventory Rs5.665 Rs48.77.18.000 Rs4.100 Rs18.375 Year 5 Rs8.645 Rs10.28.970 Rs0 Rs0 Rs9.875 Rs9.500 Rs58.535 Rs66.000 Rs9.890 Liabilities Year 1 and Capital Current Liabilities Accounts Rs8.000 Rs3.420 Liabilities Total Rs46.500 term Assets Total Assets Rs51.62 78 BUSINESS PLAN ± Golden Moments Restaurant .19.680 Rs184.108.40.2060 Rs87.75.840 Rs39.99.500 Rs52.90.000 Rs71.04.87.79.500 Year 2 Rs6.00.82.72.220.127.116.11.495 Rs83.96.230 Rs66.00.99.910 Payable Current Rs0 Borrowing Other Rs0 Current Liabilities Subtotal Rs8.725 Rs0 Rs0 Rs8.185 Rs5.71.425 Rs5.75.120 Rs10.330 Liabilities Paid-in Rs66.625 Rs10.910 Current Liabilities Long-term Rs37.665 Current Assets Total Rs42.695 Rs9.090 Rs5.99.210 Year 3 Rs5.00.75.635 Rs10.85.80.000 (Rs64.75.665 Rs66.585 Other Rs10.
04.980 Rs45.95.965 Rs18.104.22.1680 Rs51.375 Rs71.500 5) Rs14.420 Rs13.24.190 Rs69.03.Earnings Earnings Total Capital Total Liabilities and Capital Net Worth 5) Rs2.14.380 Rs45.28.495 5) Rs26.980 Rs58.965 Rs26.99.565 Rs87.210 0) Rs20.015 Rs26.680 Rs4.375 Rs4.565 BUSINESS PLAN ± Golden Moments Restaurant 79 .23.02.51.51.890 0) Rs22.214.171.124.560 Rs13.24.02.50.79.375 Rs69.
net http://www.com/ Books Kotler Philips.indyethnicfood.com/ http://www.Bibliography y y y http://whatscookingamerica. Marketing Management Analysis.sallybernstein. New Delhi. BUSINESS PLAN ± Golden Moments Restaurant 80 . Planning Implementations & Control Edition. 1998. Prentice Hall of India Ltd.
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