Business Plan

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

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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

partial

fulfillment

of the

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

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Certificate

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

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Acknowledgement

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

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It is also a thrill that gives one the opportunity for tremendous creative expression.Preface Opening a restaurant is a distinct challenge. and that dozens on millionaires have acquired fortunes in restaurants. Developing the menu. Foods formerly considered exotic are now routinely accepted and expected. and delivery of their products and services has changed as well. Taste titillation comes by offering interesting foods and flavor combinations that challenge chefs and owners. 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. designing the décor. It is interesting to learn that at least one billionaire. Tom Monaghan. attending to your level of service or establishing an ambiencethese factors all contribute to exceeding the expectations of your guests. and the profit margins can be substantial. creating a new dish. A restaurant can be fun to operate. The conditions for restaurants success may change quickly. The twenty-first century finds the restaurant business enjoying record sales but also rising labor and other costs. Ankit Jain (MBA IB & FINANCE) BUSINESS PLAN ± Golden Moments Restaurant 5 . leaving financial scars on some operators. There are several new styles of restaurants. made his fortune in the pizza business.

Plans for expansion 23 24 26 28 VI: Personnel Strategies A. Experience and expertise of existing personnel C. Brief description of management team 14 14 IV: Environmental Scanning of Business A. Description of Business and target markets 8 10 11 II: Objectives of Business Plan 12 III: People (Management Team) A. Limitations of Business 19 20 21 21 21 V: Manufacturing and Operations A. Location of Production facilities B. Industry Analysis B. Personnel needed to manage Business B. Training needs of existing personnel 30 31 32 34 BUSINESS PLAN ± Golden Moments Restaurant 6 . Capacity of existing facilities C.INDEX I: Executive Summary of Business Plan A. Opportunities and Reasons of Entry of Business D. Key elements of the plan B. Competitors Analysis (SWOT of Competitors) C.

Performa financial statements and projected cash flows B. Market Conditions 1. Current sources of funding Private and Bank funding C. Tax Consequences of Business E. Existing Demand of target Market 2. 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 . Pricing Strategy C.VII: Market Research A. Competition 36 37 37 40 VIII: Marketing Plan 44 45 45 46 49 A. Financial needs and future needs of funding D. Distribution Strategies B. Promotion Strategy D. Product Strategy IX: Financial Decisions A.

Chapter One Executive Summary of Business Plan BUSINESS PLAN ± Golden Moments Restaurant 8 .

validation against National Restaurant industry cost averages. Our intent is to have a definitive business. highlighting strengths and camouflaging the risks. BUSINESS PLAN ± Golden Moments Restaurant 9 . but is utilized as our daily business roadmap. but fully addressed in this business plan. We have taken all precautions to validate our business and financial models. have a vested stake and financial commitment in the success of this restaurant. our business is built to service an unmet consumer 'want'. Our industry experience confirms a longer ramp-up stage for restaurants over other retail/service businesses. We.Executive Summary Our initial statement to Investors and Financial Lenders. Entrepreneurs have a tendency to paint the restaurant business plan with a very optimistic brush. 2. and analysis against local New Delhi market averages. not optimism. focusing on realistic projections. and marketing plan that not only serves our need for capital financing. as business owners. We have taken a collective look at all figures to make solid business estimates. this restaurant/ethnic food business plan. as well as giving the business adequate funding to sustain it in the first six months of start-up. is a candid disclosure of the Golden Moments Restaurant & Lounge business proposal . 3. A buffered financial plan that ensures adequate capitalization. Our financial model is rooted in industry facts. we analyzed the market findings and built a concept around our consumers.our intent is to set realistic business expectations. and eliminate any questions about the profitability of this business venture. Instead of building a business around a preconceived concept. A common mistake for new entrepreneurs. Our business concept was derived from detailed Market Analyses. We have accomplished this as follows: 1. A contingency buffer is included in the start-up cost to ensure the business in not under financed. In other words. We have based costs on our vast industry and practical experience with similar ventures. financial.

Even with the worst-case sales scenario. Manoj Aggarwal and Mr. Golden Moments will be the restaurant of choice for a mature and adult crowd. The mission is to have not only a great food selection. young and old.000 in cash balance the third year. involved with over 86 restaurant openings. y y BUSINESS PLAN ± Golden Moments Restaurant 10 . The total capital requirement to launch Golden Moments Restaurant & Lounge is Rs1.12. Instead of dismissing the risks.45. Our management team has 20 years combined experience. Owners. As owners. We offer fair profits for the owners and investors.000 is allocated to start-up capital.00.000.50. Employee welfare. This Plan is being submitted in order to secure a Business loan for Rs64. our commitment is to take personal accountability for all financial debt.60. Mission y Golden Moments will be an inspiring restaurant. participation. 5. On a linear projection. combining an eclectic atmosphere with excellent and interesting food. Private Investors. Everyone is treated fairly and with the utmost respect.11.55. and Operational StartUp expenses. Under a realistic scenario.00. and a rewarding place to work for the employees. and deep involvement with the New Delhi restaurant industry.50. will contribute the remaining Rs30. We have taken the necessary precautions to ensure the business is fully capitalized. 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. Design. couples and singles. Deep Management Experience. and have addressed all financial shortfalls to ensure a successful business start-up. but also efficient and superior service . we have identified valid mitigation strategies for each. Ankit Jain are investing Rs16. We have evaluated traditional and non-traditional risks associated with Restaurant failure and accounted for them directly in the business plan. ambiance.customer satisfaction is our paramount objective. who will be part owners with a non-managerial interest in the business. Our concept combines variety. and training are equally important to our success.000 in personal capital.000.4. male or female. we reach a Net Worth break even at the end of Year 5.000 as business operations cash reserve. of which Rs96. the company should have over Rs.000. The loan will be used towards Equipment purchase. Our employees will feel a part of the success of Golden Moments Restaurant & Lounge. Construction. the entire financial debt will be retired by Year 7. and Rs14. A solid Risk Mitigation Plan. Mr.

Cash Receipts. We will use of this restaurant/ethnic food business plan to track actual costs against our forecasts in managing the business. Cost Control will be an integrated function of the restaurant from the onset. Midtown/Downtown New Delhi redevelopment requires a place that will fit into the 'new look' of the community. 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. Golden Moments will fill that niche. Issuing Inventory. 4. Through these programs. from Indian crevice. Employee Retention Focus: Employee retention and development programs will be a primary focus and success platform for this business. restaurateurs must look for ways to differentiate their business to achieve and maintain a competitive advantage. Portioning.interpreting and comparing the numbers that impact the bottom line. Unique. We have budgeted for a stock option program for Chef and Management positions to subsidize a lower salary base. BUSINESS PLAN ± Golden Moments Restaurant 11 . to local crab cakes. without exception. Bank Deposits and Accounts Payable. This lowers our immediate overhead and attracts quality staff.Keys to Success 1. Cost control is about managing the numbers . Our eclectic menu features regional specialties around the globe. Rough Preparation. 3. Innovative & Contemporary: The creation of a unique and innovative fine dining atmosphere will differentiate us from the competition. The restaurant will stand out from the other restaurants in the area because of the unique design and decor. We will offer a fine dining experience in an electric atmosphere. Receiving. Order Taking. Spice of Life' Menu: The menu will appeal to a wide and varied clientele. Service Preparation. one that is contemporary and entertaining. Cost Control Focus: We will control costs at all times. Storage. Due to intense competition. great service and atmosphere. we will be able to draw seasoned and elite professionals and build a committed work force. Product quality: great food. 5. 80 percent of the success of a restaurant is determined before it opens. 2. to Thai and Indian curries.

Chapter Two Objectives of Business Plan BUSINESS PLAN ± Golden Moments Restaurant 12 .

80.00. our stretch' is to attain 70.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.000 per year. Averaging sales between Rs1.73% by Year 3. Remaining a small.41% in Year 1 to 67. Achieving a profitable investment return for investors for Years 2 . Improving our Gross Margin from 65.000 2.10 in Year 2. These are attainable targets. BUSINESS PLAN ± Golden Moments Restaurant 13 . unique restaurant with eclectic food and service. Promoting and expanding the Golden Moments restaurant concept as a unique Midtown destination restaurant. Expanding our marketing and advertising in New Delhi and in the neighboring suburbs to increase our customer base.6.00. Keeping employee labor cost between 37-39% of total sales.25.

Chapter Three People (Management Team) BUSINESS PLAN ± Golden Moments Restaurant 14 .

consideration will be given to incorporate a dining patio. Cosmopolitan Bar. For lack of a better term we are launching a multi-ethnic' cuisine restaurant . finance. The atmosphere caters to a young but mature adult crowd. and accessibility issues will be reviewed as key criteria. The restaurant features 3 venues in one (a concept called Multi-Branding'): A Tapas Lounge.a restaurant concept that responds to New Delhi need for selection and choice. Golden Moments is a complimentary mingling of international cuisine on a single menu.Company Summary The Design Golden Moments Restaurant & Lounge is unique to Midtown New Delhi. This concept offers customers variety. Total space requirements are 3. BUSINESS PLAN ± Golden Moments Restaurant 15 .000 square feet. and marketing arenas. 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 Management Our management team has over 48 years combined experience in food. This is not a family dining establishment. Zoning. We will draw on our Advisory Board as part of the site selection and lease negotiation. The Midtown demographics fit this concept perfectly. parking. In total. The Menu Golden Moments is focused on servicing New Delhi growing demand for an ethnic eating experience. business management. Where possible. the restaurant will provide seating for 110 patrons. and Full Service Dining. restaurant and hotel.

and Manoj Aggarwal as Managing Partner. Ankit Jain and Manoj Aggarwal. This will assist Golden Moments Restaurant & Lounge to grow even further. The strength of our management staff positions us for success. BUSINESS PLAN ± Golden Moments Restaurant 16 . owned by its founders. we will hire a General Manager to handle the day-to-day Restaurant management. but you can inspire confidence based on what you have done. We have assembled a team that embraces different disciplines. In Year 2. Management Team Golden Moments Restaurant & Lounge. Day to day operational management will be conducted by Manoj Aggarwal and Ankit Jain. including marketing and restaurant management. These Golden Moments Management teams has deep roots in the restaurant segment. as hands on managers. Manoj Aggarwal (Managing Partner) and Ankit Jain (Executive Chef). Manoj Aggarwal has a background in International Business Management. Attached is the portfolio of past success. have considerable experience in the restaurant industry. and have the practical experience to make this venture another great success. The owners. Management Summary The strength of our management staff positions us for success. with more than 20 years of experience between the key officers.Company Ownership The restaurant will start out as an LLC corporation. and is certified in Restaurant and Hotel Management. You can't build investor confidence based on what you will do. Ankit Jain will function as the General Manager and Executive Chef. understands the importance of a strong management team. Manoj Aggarwal and Ankit Jain have a long-standing professional relationship in the restaurant industry. accomplished professionals with expertise in all areas of the business.

Mr. Ankit Jain is responsible for the concept and the daily operations management. Concept Definition. Manoj Aggarwal has a background in International Business Management and Business Start-ups. Financial and Business Development) Manoj Aggarwal brings to Golden Moments an accomplished restaurant background. Manoj has over 17 years of business management in the Information Technology industry. Like IT. Manoj Aggarwal is a strong business leader responsible for strategic planning and continued growth of restaurant services and business development. BUSINESS PLAN ± Golden Moments Restaurant 17 . and a lifetime passion for the restaurant experience. Manoj understands of day-to-day cash flow planning and staff management will be critical to Golden Moments financial success. and is charged with leading the Restaurant Operations.5 crores. Jain's Contracting responsibilities for Golden Moments included logistics. Marketing. as well as Implementation and Launch Management. Certifications. successful ventures in the restaurant industry must balance capitalizing on new trends with continual quality assessment. and is certified in Restaurant and Hotel Management. Menu Definition and Training initiatives for Golden Moments Restaurant & Lounge. having owned several full-service restaurants. As co-owner. Manoj will be the management lead for all public relations. Site and Lease Negotiations. Manoj Aggarwal: Managing Partner (Operations.Ownership & Management Manoj Aggarwal brings over 15 years of experience in the restaurant industry to the new joint venture. With a degree in Economics and an accomplished career. Staff Selection. Manoj Aggarwal is responsible for overall direction and operational management. Degrees. Start-Up and Financial forecast. exceptional business acumen. Menu and Operations Management. Ankit Jain contributes the experience of his past successes. 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. with yearly sales targets of Rs 10. financial and investor services. In addition.

and any decisions in these areas will be made jointly. develop. explain. expenses. and enforce an employee's manual for all employee-related policies. Responsibilities for hiring and firing employees lie solely with the two operations managers. cash and marketable securities. and establish customer service policies and objectives. including reports which outline the company's income. including receivables. and earnings. Perform financial forecasting. portioning. including capital budgeting. pricing and inventory control. will oversee menu development. Direct preparation of budgets and financial forecasts and arrange for audits of company's accounts. They will: y Manage working capital. Prepare financial analyses of operations for guiding management. including approval of all financial obligations of the company. pro forma financial statements. inventory. y y y BUSINESS PLAN ± Golden Moments Restaurant 18 .Managing Partner Responsibilities In addition to the management of day to day operations. cash flow analysis. and external financing requirements. and write. They will plan. as principals within the company. purchasing. both managers.

Chapter Four Environmental Scanning of Business BUSINESS PLAN ± Golden Moments Restaurant 19 .

The average American spends 15% of his/her income on meals away from home. The Industrial Report estimates this as high as 30% over the next five years. As modern living creates more demands. and food flavors will be important. The National Restaurant Association released the Foodservice Industry 2000 report that forecasted how the industry might look in the coming years." BUSINESS PLAN ± Golden Moments Restaurant 20 . The independent restaurant accounts for 15% of that total. resources.Industry Analysis Although the restaurant industry is very competitive. and ability to cook for themselves. The Restaurant Industry Today The food service business is the third largest industry in the country. Independent operators and entrepreneurs will be the main source of new restaurant concepts. Nutritional concerns will be critical at all types of foodservice operations. Future Trends & Strategic Opportunities The predicated growth trend is very positive both in short and long-term projections. In the past five years the restaurant industry has out-performed the national GNP by 40%. More and more people have less time. people will be compelled to eat more meals away from home. This number has been increasing for the past seven years. Trends are very important and current interest is in lighter. The reasons are 1) lifestyle changes. There are 600 new restaurants opening every month and over 200 more needed to keep pace with increasing demand. the lifestyle changes created by modern living continue to fuel its steady growth. Environmental concerns will receive increased attention. Some highlights from the panel's findings: y y y y "Consumers will spend a greater proportion of their food dollar away from home. healthier foods at moderate to low prices. 2) economic climate. and 3) increase of product variety.

Restaurant has poor disabled facilities. A main competitor has closed down. Prices are cheaper than your competitors. Have a good choice of items available on your menu. BUSINESS PLAN ± Golden Moments Restaurant 21 . A new housing development is being built nearby. Offer a product no other business offers. The local council offers grants for regeneration for the unused building you would like to develop. Opportunities: A new office complex is opening nearby. Service style is new to the area. Have a branded image. Employment of well-trained staff. Have a take-away option for your customers.SWOT Strengths: Restaurant exterior is clean and tidy. Have limited funds available. Weaknesses: Restaurant is new and not established.

BUSINESS PLAN ± Golden Moments Restaurant 22 . at a lower price and you are unable to match this.Threats: A high street brand is moving into the area. Your operating costs are set to increase soon. Another restaurant has started offering similar products to your own. A main competitor has lowered their prices and started a price war with you.

Chapter Five Manufacturing and Operations BUSINESS PLAN ± Golden Moments Restaurant 23 .

Golden Moments will benefit from New Delhi desire to revamp the Midtown district with Rs19. Zoning. Where possible.12 midnights Sundays . and after-hour patronage from the entertainment facilities in the area. The patio setting will be a fun and casual atmosphere for the summer crowd. the restaurant will provide seating for 110 patrons.50. Dinner: Monday to Saturday. The outlook for the future of New Delhi Midtown district is exceptionally positive and the most progressive development area in the city. The restaurant will service lunch. Operating Criteria The restaurant will be located in Midtown New Delhi. Optional Patio: During the busy summer months customers can also sit outside on our patio and we will offer a special summer menu.000 renovation grant for restoring and renovating the 100 year old property we plan to lease. Restaurant Design Single-Level Design Concept: The total space requirement is 3. and after-hours dining during the week and weekends. and accessibility issues will be reviewed as part of this analysis.m. Service will be available during the following hours: Lunch: Monday to Saturday. the lounge 22 seats.2:30 p.000 square feet.000 cars daily. The busy Midtown commercial/residential location has been chosen based upon a successful demographic model and a traffic count of more than 33.m.m. The restaurant will operate during peak service time to take advantage of street traffic. The restaurant will feature a comfortable and open concept design. featuring lighter fare. parking.Location & Operations Restaurant Location Midtown New Delhi is the location selected for the Golden Moments concept.Market brunch takeout only. The market has been carefully selected and tested for the necessary demographics and retail traffic necessary to meet the goals laid down for profitability. exotic drinks. dinner. . and the dining bar with 12 seats. BUSINESS PLAN ± Golden Moments Restaurant 24 . . The central dining area will allocate 76 seats. consideration will be given to incorporate a dining patio. 5:30 p. as well as non-alcoholic offerings. In total. 11 a.

225 Rs0 Rs0 Rs5. ft.375 Rs0 Rs49. Smallware & Supplies (FOH) Dishwasher.3000 sq.880 Rs1.98. Liquor Licenses Rs0 Rs2.81.470 Rs1.Lease Glassware.19. Air Ducts. Tap & Permit Fees Business License & Temp Certificate of Occ.500 Rs90.660 Rs2.380 Rs69.36. Flatware.38.600 Rs0 Rs4.925 Rs20. Uniforms POS (Point of Sale System) .820 Rs0 Rs1.05.835 Rs1.23. Chairs.785 Rs1.225 Rs69.750 Rs1.24. Investor Agreements) Software: Restaurant/Inventory Software: Cost Control Impact. Smallware (Bar & Lounge) Glassware. etc. Interior & Dining) Engineer & Architect Fees CONSTRUCTION Plumbing HVAC (Air Return.775 Rs38.725 Rs24.660 Rs2. Ice & Glasswasher .18.) Electrical Disposal & Demolition Structural Construction (4 Months General Labour) Facade (Exterior Construction) Plaster (Dry Wall) Mill & Metal Work Interior Finishes (2500 .380 Rs30.200 Rs82.520 Rs32.000 Rs46.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.830 Rs7.19.665 Rs0 Rs32. Flatware.Lease Kitchen Equipment Freight Fees FF&E Taxes (Taxes on Purchase) OPERATIONAL Capitalized Legal Fees (LLC.88.Lease Stools.06. Tables.915 Rs1.325 Rs17.930 Rs46.225 25 BUSINESS PLAN ± Golden Moments Restaurant .460 Rs61.) Flooring Fire Alarm System Security & Phone System EQUIPMENT Liquor Control System .70.070 Rs2.470 Rs0 Rs35.485 Rs46.19.

000 Rs39.650 Rs1.70.250 Rs45.39.750 Rs87.43.135 Rs14.500 Rs10.750 Rs2.25.12.485 Rs4.250 Rs2.56.08. Disposal.000 Rs64.665 Rs9.750 Rs93.93.000 Rs2. 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 Rs1.24.125 Rs93.250 Rs11.785 BUSINESS PLAN ± Golden Moments Restaurant 26 . Tax & Insurance Security Deposits (Phone/Elec/Gas/Water) Initial Lease Deposits Bank & Loan Closing Costs Web Site Construction Initial Marketing.750 Rs8.75.18.03.750 Rs93.99.Utilities.

000 Rs6.00.08.00.00.03.50.000 Rs6.11.00.04.43.00.000 Rs6.87.000 Rs19.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 Rs64.650 Rs1.215 Rs22.91.000 Rs6.91.000 (Rs64.000 Rs7.00.785 Rs24.000 BUSINESS PLAN ± Golden Moments Restaurant 27 .00.135) Rs1.000 Rs0 Rs66.50.51.00.485 Rs7.165 Rs14.000 Rs9.91.865 Rs0 Rs45.00.700 Rs46.08.000 Rs6.00.135 Rs39.865 Rs1.56.865 Rs46.48.000 Rs0 Rs0 Rs45.

but maintain the 'favorites' for loyal patrons. and alcohol listing. Normal dining will have a reduced Tapas. and the remaining labels will be available by the bottle. Portugal. We will also feature a moderate international beer selection on tap and in bottles. garnished with stunning presentation. while the Fusion Dim Sum menu will have special items featured only for after-hours dining. target market. beer. Approximately 25% will be available exclusively by the glass. and the Tapas menu will play up this idea with drink suggestions. The menu flows together to create complementary elements. We have carefully selected a premium wine. and other regional flavors. Customer satisfaction is the driving force behind our success. or other mixed drinks. Indian. and superior service. are small dishes meant for sharing while drinking sangria. from which we will choose a modest rotating selection. and Argentina. an eclectic ambiance. Portions will be modestly sized. Appetizer and Entrée selection. The Golden Moments bar features a comprehensive selection of local and international spirits. 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. wine. The final menu will be defined by the Executive Chef and paired with the wine menu. and location will produce significant alcoholic drinks sales. Tapas. Their creative talents will complement one another. We will change our menu every 4 months. Our food will be of the finest quality and prepared with exotic flare. The kitchen staff will have the best in culinary education and work experience. Golden Moments marketing will focus on our exotic foods. Golden Moments Menus Golden Moments varied international menu will feature Thai. but our hours. Black Pepper. 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 . Our wine list will be modest and primarily focused on wines from California. Chinese.Services Golden Moments Restaurant & Lounge will feature international dishes. The lounge and restaurant staff will offer the finest service in an electric atmosphere and offer customers an extraordinary dining experience. in particular. Spain.

25. BUSINESS PLAN ± Golden Moments Restaurant 29 .5 to 104. The restaurant will feature exotic drinks on a separate menu. Non-alcoholic drinks will be in the higher price bracket due to preparation requirements. Bar pricing is competitive.25 to 142. as well as a large non-alcoholic selection. 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.5) A key source of revenue for the restaurant will be alcohol and bar sales.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.5.50. prices range from Rs52.142. Prices will range from Rs71. Dark and White chocolate y Golden Moments Fruit Plate Specialty Drinks & Coffees (Rs52.

Chapter Six Personnel Strategies BUSINESS PLAN ± Golden Moments Restaurant 30 .

and Investor Services. waiting tables and bartending) and take care of service and make sure the restaurant is in excellent shape (2). With average tipping rates for the New Delhi. he will have servers that will work as captains' (these people have experience in managing. Ankit Jain will be the Restaurant Manager. Rohini area. Manoj Aggarwal will also manage the daily Restaurant Operations. busboys. A Sous chef with considerable experience in different restaurants (1). taking care of Waiters and Bar Staff. The estimated gross annual payroll of Rs59. The staff will include 13 full-time employees and 8 part-time employees. Prep cooks/dishwasher (2).93. Servers that work part time (4). Full-time bartender (1). bartenders) do not include anticipated tips. Restaurant Operations: Manoj Aggarwal will manage the Financial Management. Part-time bartender (1). Part-time busboy (1). Bookkeeping. y y y y y y To help Ankit. Full-time busboy (2).09.Personnel Plan We believe the personnel plan is in good proportion to the size of the restaurant and projected revenues. He will be the primary responsible for daily Restaurant Operations. and our menu prices. who will work a total of 754 man-hours per week and generate an average monthly gross payroll of Rs4. Kitchen: The Executive Chef will be assisted by: y y y y y An Assistant Chef from a national search (1). PR/Media Advertising. Cooks that work directly with Ankit or the sous chef (2).820 (including Partner Salaries) is 37% of total sales.620 for the first year in business. Skilled waitresses and bartenders on weekends and evenings will make substantially more. Ankit will also take lead as the Executive Chef working with the Head Chef. BUSINESS PLAN ± Golden Moments Restaurant 31 . service employees should average at least twice the minimum wage in any given shift. People cleaning the restaurant (2). Wage salaries for service personnel (waiters staff.

000 per year y Ankit Jain R 4.400 per year BUSINESS PLAN ± Golden Moments Restaurant 32 .20.Administrative Salaries (Partners): y Manoj Aggarwal : Rs 7.82.

08.00 0 Rs4.600 Rs1.600 Rs84.00 0 Rs2.600 Rs84.00 0 Rs1.Personnel Plan Year 1 General Manager (Year Rs0 2+) Partner/Manager Rs7.00 0 Rs84.600 Rs84.12.12.10.600 Rs84.08.00 0 Partner/Asst.600 Rs84.56.600 Rs84.00 0 Waitperson 1 Rs84.20.600 Year 4 Rs4.36.08.50 0 Rs84.82.600 Rs84.36.56.50 0 Rs2.82.600 Year 3 Rs4.56.60.80 Rs1.36.600 Rs84.60.00 0 Rs6.00 0 Rs1.600 Rs84.600 Rs84.60 0 0 0 0 Rs2.36.16.600 Year 2 Rs0 Rs7.600 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 Rs84.60.600 Rs84.00 0 Rs7.98.60 0 Rs2.50 0 0 0 0 Rs1.600 Rs84.80 0 0 0 0 Rs1.600 Waitperson 2 Rs84.16.600 Rs84.60 Rs1.76.600 Rs84.00 0 0 0 0 BUSINESS PLAN ± Golden Moments Restaurant Rs84.12.27.600 Rs84.600 Rs1.82.600 Rs84.14.600 Rs84.600 Rs84.02.08.00 Rs2.80 Rs1.00 Rs1.16.00 Rs6.20.60.76.00 Rs1.40 0 0 0 0 Rs1.600 Rs84.60 Rs1.40 0 Rs3.16.80 Rs1.600 Rs84.600 Rs84.00 Rs2.40 0 Rs3.600 Rs84.600 Year 5 Rs4.20.56.600 Rs84.60 Rs1.00 Rs2.60.00 0 0 0 0 Rs1.00 Rs1.40 0 Rs3.35.50 Rs1.20.600 Rs84.08.16.600 Rs84.600 Rs84.00 Rs6.00 0 Rs2.82.20.20.600 Rs84.40 Rs1.80 0 Rs1.600 Rs84.36.40 0 Rs3.00 0 Rs7.50 0 Rs2.50 0 Rs84.600 Rs84.600 Rs84.00 0 Rs4.600 Rs84.600 .40 Rs1.82.00 0 Rs4.600 Rs84.50 0 Rs7.00 0 33 Rs84. Rs4.00 0 Hostess (Part Time) Rs1.67.00 Rs1.56.76.76.76.40 0 Rs1.22.50 Rs1.00 Rs6.82.60.600 Rs84.75.00 0 Rs4.600 Rs84.00 0 Rs84.40 Rs1.600 Rs84.600 Rs84.40 Manager/Exec.14.90. Chef 0 Hostess (Full Time) Rs3.08.00 0 0 0 0 Rs6.

76.84.86.000 will be allocated for business operations reserve.500 Rs1.40 0 Rs1. Rs14.63.83.63.40 0 Rs1.60 0 Rs2. furniture.60 0 Rs85.40 0 Rs0 25 Rs64.000 include all kitchen equipment.745 Sound and Televisions: Rs 1.84.40 0 Rs1.40 0 Rs1.99.29.60 0 Rs2.32 0 Rs1.86.32 0 Rs1.9 20 Rs4.60 0 Rs85. and will open Golden Moments in October of this year. Fax.63.665 worth of current assets during start-up: y y y y Fixtures and Lighting: Rs 4.8 20 Rs4.94. reconstruction.84. BUSINESS PLAN ± Golden Moments Restaurant 34 .500 Rs1.60 0 Rs85. painting.93.40 0 Rs0 25 Rs64.29.32 0 Rs1.76.00 0 Rs3.29.40 0 Rs1. This company will have an integral role in validating the final restaurant location and personnel selection.750 Bar Equipment: Rs 3.40 0 Rs0 24 Rs60.000 sq.84.40 0 Rs0 25 Rs64.00 0 Rs3. We have budgeted for the services for a premier Restaurant Consultant familiar with the New Delhi Market.32 0 Rs1. and participate on the Golden Moments Advisory Board. start-up labor.40 0 Rs1.40 0 Rs0 20 Rs59.90.40 0 Rs1.47.4 20 Rs4.60 0 Rs2. and legal and consulting costs associated with opening our restaurant. rent.86.86.55.84. ft.63.40 0 Rs1.60 0 Rs85.500 Rs1.63.84.8 20 Rs4.60 0 Rs2.500 Rs1.00 0 Rs3.00 0 Rs3. 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.500 Long-term Assets in the amount of Rs9.25.60 0 Rs85.40 0 Rs1.60 0 Rs2. in Midtown New Delhi. Safe): Rs 97.9 20 Start-up Summary We are currently negotiating a restaurant space of 3.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 Rs4.29.00 0 Rs3.76.75. This is especially key during the site selection and start-up stage.29. Our start-up costs are mostly expensed equipment.92. Printer.84.40 0 Rs1.84.94.94.84.32 0 Rs1. liquor license.76. At the start of business. Rohini.86.76.84.11.94.94.500 Rs1.66. We will purchase the following Rs10.

Menu Variety: Ethnic restaurants are increasing in New Delhi. Golden Moments menu is priced at a midtier level. Portion Selection: Nearly 95% of our surveyed focus group endorsed having a choice of different size portions.000 of capital. 4. In addition we have an extended Tapas and Appetizer selection priced between Rs52. The Dining Experience: Customer satisfaction with food and service has been and continues to be of utmost importance.5.5crores. Our market analysis identified the following key drivers as areas of opportunity to service New Delhi restaurant customers: 1. BUSINESS PLAN ± Golden Moments Restaurant 35 . is currently on an international tasting spree.5-142. we conducted market research and built a concept around our consumers. Our research results do not identify any single ethnic style of restaurant as desired. with no entire over Rs300. This statistic is in line with findings reported by the Table service Operator Survey. 3. 00. 00. Golden Moments Tapas concept is built to offer differentsized portions. 50.Market Analysis Summary Instead of building a business around a preconceived concept. Golden Moments takes all these factors in consideration for the design of this cosmopolitan restaurant. we have obtained an Rs19.000 grants from the city towards restoration of our historical building. as part of the city's Midtown revitalization program. contingent upon locating in the proposed space. variety is the underlying element for this concept. Reasonable Prices: This was no surprise given the economic tide. We are seeking Rs30. 50. lighting. bar.000 in 2007 and recorded sales of Rs457.The two owners are personally committing Rs16. allowing budget dining in a fullservice restaurant. plus an Rs45. 2. as a whole. Although the restaurant industry as a whole has seen growth in 2007/2008. TV cooking shows and imported goods offers ample evidence that India.000 of equity investment to fully fund Golden Moments startup costs. Again. The proliferation of international cookbooks. eating places that identify themselves as ethnic establishments numbered nearly 78. In fact. but rather suggest that incorporating strong multi-ethnic influences in the menu selection will be popular. and other options to improve the dining experience are also factors in customer decisions. Our customers want the option to choose what satisfies their appetite. but our findings indicate that the décor. customers are demanding value for their dining rupee.000 SBA 7(A) loan guaranty. food magazines. In addition.

Chapter Seven Market Research BUSINESS PLAN ± Golden Moments Restaurant 36 .

These are the types of people who frequent other restaurants and bars in the area. food wise. BUSINESS PLAN ± Golden Moments Restaurant 37 . and comfortable restaurant options. and are seeking upscale. 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. cosmopolitan. and will embrace our international fusion cuisine. They are also the most open to trying something new. They are likely to spend more on experiences they perceive as unique. and sophisticated. We want everyone to feel welcome and entertained.Market Segmentation Golden Moments Restaurant & Lounge intends to cater to a wide customer base. trendy. have disposable income.

815 63.097 21.348 20. Many of these consumers are new to New Delhi from larger cities. Golden Moments cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people. away from the kids. BUSINESS PLAN ± Golden Moments Restaurant 38 . as they don't have the time to prepare food nightly. Our Destination Clients tend to be new suburbanites that miss the excitement of the inner city.982 7. These young Midtown couples are generally very successful working professionals." Golden Moments will be the best date location in town.510 18.499 7. High-end Singles: We will attract them with our eclectic atmosphere and layout.914 3. These are the individuals that pride themselves on socializing and dining at the premier locations .991 55. they want to relax and use the money they are making (or is expensed by their company).896 4.47% 13% 8% 7. In most cases they are budgeting to eat out on a regular basis.223 18. Downtown New Delhi Couples: The restaurant will have an intimate.593 12.141 68. Afterward. accustomed to dining within the city and at non-franchised restaurants.688 21.95% 6.039 22.74% 29% 5. They need a competent establishment that helps impress clients and prospects.673 Year 2 Year 3 Year 4 Year 5 CAGR 4.054 4. enticing adult atmosphere that suggests "date.168 4. and consumers often look only in their own neighborhoods for restaurant options. food and tips.411 7. They have disposable income.140 16.Market Analysis Year 1 Potential Customers Business Person Downtown New Delhi Couples Tourists The Destination Customer High-end Singles Total Growth 18% 32% 9.76% Target Market Segment Strategy The Business Person: They work hard all day and often stay overnight in a strange city. Golden Moments will be a destination restaurant.724 8.645 10.925 17. excellent service and engaging clientele will confirm the feeling of being in "the in place" in New Delhi.311 4.818 8. entertainment and events. whether they live in and around New Delhi or are here for work.215 4. and will spend quite a bit on such outings.944 66. Golden Moments will be especially appealing to married suburban couples indulging themselves with a "date night" downtown. romantic.The Image Seekers.76% 15. Golden Moments will break these habits.23% 5. They spend the most on drinks. striking decor.950 57. The Destination Customer: New Delhi is a much 'sectioned' city. Our international menu.527 11.565 11.348 19.47% 2. using marketing to draw customers from outside the main city limits.

Only one of them offered traditional "southern" cooking. we know the truth: To succeed in the restaurant industry. BUSINESS PLAN ± Golden Moments Restaurant 39 . However. but only Golden Moments is based on sound market research in the local market. Any ingredients wasted in the kitchen are money thrown out. regionally specialized menus. here to socialize and be entertained. you need an understanding of the risks and financial conditions. The owners know this through their many years of experience opening. New Delhi consumers are seeking variety and new experiences. cooking them properly. running. Location is clearly important. two to three times a day. hip interiors and reasonably priced. Maintaining our edge will depend partly on marketing ourselves as an adult-only destination. Any time wasted in seating customers. While some entrepreneurs think that success is as simple as a good location and a trendy concept. those based on solid understandings of the market needs. A large percentage of the tourist population is vacationing singles. not only as the "new" restaurant. menu variety. Golden Moments will be a destination dining locale. Most new restaurants opened by inexperienced owners struggle or fail. taking orders or preparing food is money walking away. and a unique atmosphere. And half of them were located in Midtown. Competition and Buying Patterns In 2007.they are not interested in family establishments. especially when combined with prior experience in the restaurant industry. This is especially true for the tourist population that visits for sporting and social events . Our marketing challenge is thus to stand out from our competitors. and lounge. and selling them at a much higher price. and the organizational skills to bring off what is essentially a giant catered party. Service Business Analysis The restaurant industry is highly competitive and risky. and management of inventory and staff have a much higher chance of success. combining them in creative ways. but as one that offers consistently high quality food. international menu. but so is atmosphere and distinctiveness. and improving restaurants across North India. with its attractive atmosphere. and not a family restaurant. Our competitors are heading in the right direction. Restaurants make money by taking inexpensive ingredients.Tourists: New Delhi attracts many vacationers during the summer months of May through September. the top ten New Delhi restaurants shared two things: cozy. the ability to handle enormous pressure.

3-Tiered spatial layout Chef Co-op program to allow new entrants. 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.Strategy and Implementation Summary Our strategy is simple. While we are not striving to be the lowest-priced restaurant. Incentive and Retention program Competitor Analysis Below are excerpts from our competitive analysis study. As an exciting and eclectic restaurant. we will be the talk of the town. 6. trainee and featured chef Chef/Management Stock Incentive Program. We will keep our standards high and execute the concept flawlessly. "Come to Town" promotions) Employee Training. One Midtown Kitchen is in an obscure location but has thrived as one of the more successful restaurants in the area. 4. Competitive Edge Golden Moments competitive edges are: 1. the execution of our concept is the most critical element of our plan. We will direct all of our tactics and programs toward the goal of explaining who we are and what we do. and 3) The customer base in this segment of New Delhi is ready for after-hours dining. 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. We will create an appealing and entertaining environment with unbeatable quality at an exceptional price. we are aiming to offer exceptional food at reasonable prices for the average restaurant diner. 1. We will focus on establishing a strong identity in our community with a grand opening. 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. Our main focus in marketing thereafter will be to increase customer awareness in the surrounding communities. 5. 3. We plan to keep the menu prices under Rs300. Inner and Outer City Marketing campaign (i. 7. Therefore. All menu items are moderately priced for the area. BUSINESS PLAN ± Golden Moments Restaurant 40 . 2) Midtown is a prime restaurant location.e. so that word-of-mouth will be our main marketing force. 8. 2. and is willing to travel to establishments that accommodate their needs.

to Hosting. it was beneficial to analyze the most profitable restaurant in New Delhi to understand what contributes to their success. The menu is somewhat formal for this market segment. This restaurant served to validate 1) the tapas concept appeal for Midtown customers. and 4) Menu Variety. which Golden Moments can benefit from. Those elements are: 1) A Tapas and Entrée menu realizing that customers want varied meal size and variety. but the bar attracts a good crowd. from the Valet. although we do consider it an indirect' competitor. Cumulus is more of a formal dining restaurant and meets a certain need within the community. offering a broad array of menu items. without any intent of dining in the restaurant. Cumulus (Indirect Competitor) This restaurant has grown in popularity over the years. a casual dining restaurant that has evolved to be a great success story for the Midtown district. 3. and Bar staff. 3) Exceptional Service. to Wait. This serves as a true validation that the timing is right for the Golden Moments Restaurant & Lounge concept. 2) A club type atmosphere to entice the single scene and to drive bar sales. 5.2. smaller price). BUSINESS PLAN ± Golden Moments Restaurant 41 . 3) tapas as a good food concept for after-hours dining (smaller portions. Bus. Lunacies (Direct Competitor): This restaurant is a main competitor for Golden Moments. Swing Restaurant (Indirect Competitor): This restaurant is not in our market district and therefore not a direct competitor. Swing validates some of the elements uncovered in our market research as to what the new New Delhi diners are looking for. Swing incorporates some of the characteristics that we have mapped out for Golden Moments. 2) Location selection to benefit from core customer demographics. During this study it was evident that some patrons came exclusively to sit at the bar. I do feel that it has some very special elements that have helped it succeed over the past 3 years. but I don't see it as a direct competitor of Golden Moments. and has gained popularity as a destination restaurant that can cater to business professionals as well as the local residents. 4. Cheesecake Factory (1 Restaurant Comparison): Although Cheesecake Factory is outside of Golden Moments restaurant district and not considered a direct competitor. 4) the appeal of live Entertainment. situated in a busy/popular area for both business and residential traffic. Cheesecake Factor offers several key elements that would also benefit Golden Moments: 1) Customer Satisfaction through moderate pricing and high-quality food. 2) the evolving need for after-hours dining.

but to our residential core for our dinner and after-hours patronage. We will look to the business core for our primary daytime business. Lesson Learned: As part of this analysis. New Delhi downtown core is a business district. The restaurant was hidden in cross streets and away from the general street traffic. The largest percentage of this customer segment will be looking for a restaurant in which to conduct business or a family establishment. Midtown is New Delhi major growth district and is developing the residential infrastructure in pace with the business infrastructure. Several factors led to closing of this restaurant: Location: This was a very common restaurant located in a core business community. Mumbo Jumbo would not be a primary selection in either case. Visibility: Hand-in-hand with location. Midtown has a business core as well as a residential core. This was a destination restaurant and a secondary selection for the general customer base in this area.Failed Restaurant Analysis: Mumbo Jumbo Mumbo Jumbo was an New Delhi restaurant attraction in the downtown core. The business and tourist customers tend to select a restaurant from touring the area and accessibility. Mumbo Jumbo was situated on a cross street behind the main street. We will limit our site selection to the core Midtown district and the upper Downtown district. and residential development for this area is at the Genesis state. In the downtown core a large percentage of business is from walk-in traffic. Lesson Learned: Golden Moments target market demographics are perfectly in alignment with the Midtown profile. I also completed an analysis of this restaurant back in 2006 and compared it to this current analysis in 2008. Mumbo Jumbo depended on the business segment for their lunch and dinner profits. this restaurant also suffered from poor visibility. In addition. BUSINESS PLAN ± Golden Moments Restaurant 42 . Customer Segment: New Delhi downtown core is not ready for this type of restaurant. we have determined that the downtown core is not a good fit for the Golden Moments concept. 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. a strong competitor that was severely impacted by the patronage demise after 9/11. The primary customer base is the business person and tourist.

but price has become a factor as a result of the economic turns. Market Analysis Conclusion: At the end of the day. but the solution is to deliver the best food at the best price with the highest level of service in one establishment. In addition. there are two segments of the restaurant industry that are our main competition: the casual dining restaurant and the fine dining value restaurant. Customer Segment. Visibility) came back to hurt them as the economic climate changed. everyone that sells prepared meals in this district is a Golden Moments competitor. we will use signage and exterior décor as means to attract customers and get noticed. However. In all. if the food and service is better at a fine dining restaurant than a casual restaurant. This is the very definition of value and the concept at the heart of Golden Moments business model. where is a customer more likely to go? There is no absolute answer to the question. So. because we all compete for the same home meal replacement dollar. but key restaurant disciplines (Location.Lesson Learned: Although being situated on a main street is not as key in the Midtown district. we will ensure that visibility is part of our site selection criteria. BUSINESS PLAN ± Golden Moments Restaurant 43 . this restaurant was a staple in New Delhi downtown core for over 10 years.

Chapter Eight Marketing Plan BUSINESS PLAN ± Golden Moments Restaurant 44 .

and flash media promotions. The New Delhi Journal Constitution. BUSINESS PLAN ± Golden Moments Restaurant 45 . Advertising and Promotion: Our Advertising Plan and media schedule call for targeting customers directly through local publications aimed at . VIP lists.Marketing Strategy Golden Moments Restaurant & Lounge's Marketing strategy will be to promote our electric food. 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. y Where possible. reservations. This is part of our Employee Manual. and every 90 days they undergo a performance appraisal. and exciting concepts to draw in the local repeat customers. Marketing initiatives will concentrate on the following: Building and Signage: The most important Marketing tool that we have is the exterior of our building. y Scheduling adequate frequency of ads to impact market with menu items and promotions. The full Marketing program is as follows: Media Objectives and Strategy: Establish our image as a unique Midtown restaurant with great service. Management will demand the wait-staff provide the very best in quality services to the customer. We will maximize efficiency in the selection and scheduling of advertisements by: y Selecting primary business publications with high specific market penetration. A healthy budget is allocated for the first year. couples. and Operations Manual guide. Food and atmosphere is far out-shadowed by superior customer service that turns a new customer into a repeat customer. and destination customers. y Redirecting customers to our website to register for upcoming functions. Wait-staff are thoroughly trained. respectively. positioning advertisements in or near entertainment/food related editorial. which all reach our targeted demographics. singles. customer service has always been the major draw for the dining clientele. and great food served in an eclectic atmosphere. value. making certain that they are content and satisfied with their dining experience. New Delhi City Search. and Social Diva. See attached Logo and Web design. Customer Service: In our years within the restaurant industry. We budgeted a great deal into the renovations and decor to generate the aesthetic appeal of Golden Moments. using The Creative Loafing Dining Section. This must be done aggressively in order to accomplish our service goals. Management recognizes the key to success at this time of initial opening is extensive media promotion. superior service. and our new sign.

we will gain considerable recognition through newspapers. we will invite the most influential reporters and editors from all local publications to Golden Moments Restaurant in order to evaluate our menu. Golden Moments will focus on the following publicity strategies: y Develop a sustained public relations effort. service. targeting each specific customer segment within a five-mile radius. who we are reaching. This will also be effective for inclusion in press kits. location." In addition to standard advertising practices. 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. with ongoing contact between key editors and top-level personnel at local dining publications. Our goal is to understand our customer. and decor. past happenings.y Maximizing ad life with monthly and weekly publications. and atmosphere. We will support this plan with ads that reinforce the Golden Moments dining concept. menu offering. Working with The Reynolds Group Media Co. newsletters and public announcements.' who still appreciate in-town dining. upcoming attractions and our dynamic menu. Additionally. basically. Consumers will be encouraged to visit our website to be greeted with a flash media intro that highlights the restaurant. 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. we will develop an advertising campaign built around our Golden Moments Diner theme. Our periodic customer surveys and weekly menu item sales evaluations will help us to understand what advertising is working and what is not. keeping key editors abreast of all new promotions. Publicity Strategy: Working with The Reynolds Group. Press Release/Grand Opening: Golden Moments Restaurant will release a series of press releases on the Grand opening. and redirect advertising as effectively as possible. we will develop a consistent reach and frequency throughout the year. measure the success of our direct marketing and media activities. and menu introductions. BUSINESS PLAN ± Golden Moments Restaurant 46 . Editorial Visitation: Leading up to the Grand Opening. y Develop a regular and consistent package update program for the major target media. (Golden Moments Advisory Board). 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. and over the first 6 months of operations. and new 'suburbanites.

I. and Midtown BUSINESS PLAN ± Golden Moments Restaurant 47 . In addition to food and beverages.P. y Monthly Dating Connection: With the increasing appeal of Internet and speed dating.Publicity Revenues: We anticipate at least 10% of our annual sales will be generated directly from our publicity. chefs and staff to get together to discuss the market and food trends. it is an effort to increase visibility and patronage across the Midtown district. A full media kit will be sent to all local publications. Dinner before the 'Grand Opening. The list of individuals we will invite comes from the Chamber of Commerce. customers can choose from an array of dating packages up for auction.P. in order to better our community. we will employ three different marketing tactics to increase customer awareness of Golden Moments: In-Restaurant Marketing. Word-of-mouth/In-Restaurant Marketing y Restaurant Night: Every first Monday of the quarter. Community: Golden Moments will look for key opportunities to pair with local community development organizations and radio stations to interface with our customers. Wait Area Marketing: Wait staff will service appetizers to customers waiting to be seated or on the wait list. Party: We will host a V. Our most important tactic will be word-ofmouth/in-restaurant marketing. Marketing Program In line with our Marketing strategy. This will be by far the cheapest and most effective of our marketing programs. We will continually look for local community programs in which we can participate. and possible Co-op efforts to promote the Midtown district. We will also invite the Midtown Alliance committee for their participation. we will have a special evening for restaurant people. and give something back. and releases on new menu items will be made monthly. 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. the restaurant will offer a monthly dating night. and Media Marketing. This is not a conflict of interest. Rohini Hospitality & Tourism.' This will serve the dual purpose of training our staff and introducing ourselves to the community. Public Relations Marketing. A perfect night for the local area's restaurant owners.I.

We will encourage the media and restaurant critics to meet at the restaurant and review the decor.Development group. Word-of-mouth referral is very powerful and particularly amongst the business community. Social Diva and Green Frog are two media companies we will utilize for media relations. This will be a preliminary review. y Restaurant and Special Events Website: We have contracted with local design teams to deliver a high-quality. This will offer us higher visibility for future functions and community events. We want their full commitment to the restaurant to draw the tourist dollars. navigable. y y y Media Marketing y Newspaper campaign: A much targeted media campaign to obtain featured articles about the restaurant in their Living. BUSINESS PLAN ± Golden Moments Restaurant 48 y y y . service and food. through their contributions to the final design. and private functions. Inner & Outer City Marketing: We will budget to attract customers from the suburbs. Brochures: Make a brochure for the in-town hotels and business establishments to provide to their guests and staff. Media Relations: Several media relations teams will be utilized to market the Restaurant. distinct billboard ads will advertise the launch of the Restaurant. Billboard Advertisement: One month prior to the opening. This initial review and input will give critics and media commenter s a stake in Golden Moments success. We will approach them to cater business luncheons and private functions. Private Functions: Target marketing to businesses for regular business lunch and dinner entertaining. Notices of all live entertainment segments and special features will be posted to local newspapers' calendar announcements. menus and prices. Both companies have an insightful presence and connection with our target market. where we will consider constructive input to make minor revisions prior to the true Grand Opening. constantly updated website. y Critics' Choice: Prior to the Grand Opening there will be two preliminary parties catering to the Media and Critics community. Government Relations: There are several Government offices in the Midtown/Downtown area. Entertainment and Dining segments. containing interior pictures of our restaurant.

) Although we hope to do catering for local businesses and government offices with time. and atmosphere. 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. (See Ratios table for comparisons. Our marketing strategies are designed to get critics and initial customers into our doors. decreasing word of mouth advertising and leading to poor revenues. BUSINESS PLAN ± Golden Moments Restaurant 49 . All factors governing our sales progress are outlined below in the Important Assumptions section. and to tell all their friends and acquaintances about the great experiences they just had at Golden Moments. or they spend all of their efforts at opening. Golden Moments sales strategy requires consistently high quality food. so they know that their feedback goes directly to the owners Evaluating food choices for popularity. speed. we will insist on payment at delivery . 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. whether on their first visit or their hundredth. with excellent customer service. Our sales forecasts for years 3 through 5 are very conservative compared to industry standard growth rates. and are unable to maintain the initial quality customers expect on return visits. service. and initial poor service. We anticipate that the business will not be at full operating capacity until the sixth month of operations. or quality discourages customers from returning. speed. This is due to the competitive nature of the market and existing customer loyalty.we will not sell on credit. New restaurants often make one of two mistakes: they are unprepared or underprepared for 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. Our sales strategies must take the next step and encourage customers to become repeat customers. and immediately addressing any problems Interacting with our customers personally.

0 60 Year 3 Rs49.5 50 Rs47.09.02.83.955 BUSINESS PLAN ± Golden Moments Restaurant 50 .80.62.18.04.505 Rs0 Rs1.29.88.370 Rs10.63.9 00 Year 4 Rs50.9 85 Rs40.12.33.39.40.51.850 Rs0 Rs1.525 Rs0 Rs55.485 Rs0 Rs1.600 Rs11.060 Year 4 Rs1.09.11.0 50 Year 5 Rs51.9 25 Rs33.420 Rs0 Rs2.57.04.335 Rs11.640 Rs0 Rs62.88.71.5 35 Cost Year 1 Rs44.03.305 Rs0 Rs2.91.61.53.430 Rs12.85.610 Year 2 Rs1.41.3 20 Year 2 Rs48.65.06.1 85 Rs44.240 Rs0 Rs59.37.7 05 Rs37.105 Rs0 Rs61.01.615 Year 3 Rs1.00.140 Rs0 Rs63.715 Year 5 Rs1.43.81.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 Rs1.720 Rs11.89.81.66.28.76.42.

Web Plan Summary Golden Moments Restaurant & Lounge will have a dedicated website. reviews and happenings at Golden Moments. Our site will offer our menus. We will also have a monthly Paparazzi Review about what did happen at Golden Moments to get new customers interested in our restaurant. BUSINESS PLAN ± Golden Moments Restaurant 51 . A customer will be able to order a selection for pickup using a credit card. contemporary and well designed. starting with an on-line order feature for the Sunday Market Brunch. simple. This is also a potential for customers needing catering. It will be the virtual business card and portfolio for the company. Our website will be used to try out new offers. The website will include email capabilities and online reservations and special events scheduling. Selections will be based on our pre-packaged meals available during the Sunday Market Brunch. prices. and expanding if the concept gains favor with our customers.

Chapter Nine Financial Decisions

BUSINESS PLAN ± Golden Moments Restaurant

52

Financial Plan
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

53

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.

Important Assumptions
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

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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

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0.Pricing & Cost Control Competitive Pricing Model.5 per person for After-Hours dining (All check totals include Beverages.7. we anticipate 6 months to fine tune the restaurant operations and manage our costs within the defined tolerance range. and Cost of Beverages (Non Alcohol) below 9%.0 Year 2: After-Hours = 0. We calculated worst-case monthly financial shortfall based on the ramp-up sales percentages outlined in our financial assumptions. 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. rollout. We budgeted operational shortfall in an operational contingency budget that we will utilize if the need arises. Dinner = 1. Inventory turnover and Accounts Payable.33%. 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 . but not bar). Bar Costs within 28 . and on retainer for 4 months of business operations BUSINESS PLAN ± Golden Moments Restaurant 56 . Lunch = 1. and have the right industry knowledge? Owner Manoj Aggarwal has 15 years of Restaurant Management.0. 2.5 per person.0. and Average Seat Turns: Daily average for lunch spending is Rs157. The Financial Plan incorporates a budget for a New Delhi Restaurant Consulting group. Their services are budgeted for the business start-up analysis.31%.0 Year 3: After-Hours = 1. and accounts payable are projected to be 30 days. Operations and Business Management Experience. dinner at Rs412. With a focus on Cost Control. Lunch = 1. Risk Analysis/Mitigation 1. How do we ensure we have addressed all resource gaps. Seat Turn averages are modestly estimated at: y y y Year 1: After-Hours = 0.7. Revenue calculations are based upon competitive price comparisons and established menu values in the current marketplace. The following are baseline assumptions on Average Check Totals. We addressed the financial risk as follows: y y y We looked at our monthly break-even.5per person. Inventory is turned on a 7 day cycle as inventory is used daily within all categories. and Rs262. Lunch = 1.0. Dinner = 1.25 Cost Control. Dinner = 1. Accounts receivable turnover is calculated to be 0 days. as payment is rendered with service.

We have accounted for an operational contingency budget that will be used to supplement any BUSINESS PLAN ± Golden Moments Restaurant 57 . But as we are considering all contingencies. 4. and business operating capital. allowing budget dining in a distinguished restaurant. the city grant award confirmed our decision. Our Accounting service will be contracted to a firm specializing in Restaurant accounting. and functionality. Mitigation has been our overall Restaurant concept.50. 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. 6. Additionally. Instead of going in with a predefined business concept. there are no guarantees with location. Site selection was based on space. Based on the results. We have worked with our Restaurant Consulting firm to validate our cost estimates to their industry knowledge. but we took a very objective approach with our concept. visibility. We will be offering an equity interest to our select Chef to maintain the industry knowledge. we have scaled back the size to reduce business overhead. we included a contingency buffer in the financial estimates to account for any potential cost variance. We have the menu priced at a midtier level with no entrée over Rs300. we have looked at this risk. The current Economic slowdown and recovery state was a key consideration in our restaurant concept. In all. 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. In addition. 5. the Golden Moments Restaurant concept was formed specific to Midtown New Delhi. we have an extended Tapas and Appetizer selection priced between Rs52. 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. 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.5 Rs142. As we are in the midst of an economic recovery. 3.

00% Other 0 Year 2 2 6.00% 0 Profit and Loss Statement The most important assumption in the Projected Profit and Loss statement is the gross margin. 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. This transition shows the restaurant managing through its start-up period. Our next step would be to approach our private investors for capital by extending their return on investment. In summary.00% 0 Year 4 4 6.00% 7. General Assumptions Year 1 Plan Month 1 Current Interest Rate 6.00% Tax Rate 30.00% 30.00% 7.slow periods.00% 7.00% 30.00% Long-term Interest Rate 7.00% 0 Year 3 3 6. We would also look to the partners' capital reserves as another source of funds. BUSINESS PLAN ± Golden Moments Restaurant 58 . Month-by-month assumptions for Profit and Loss are included in the appendices.00% 30. 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.00% 7. and gaining efficiency and customer loyalty.00% 0 Year 5 5 6.

35.000 Rs90.500 Rs1.160 Training / Employee Rs0 Retention Programs Repairs & Maintenance Rs1.000 Rs3.0 Cost (Lease) 00 Payroll Taxes Rs0 (FICA/FUTA/SUTA) & BUSINESS PLAN ± Golden Moments Restaurant .79.84 0 Rs97.30.4 20 Rs3.80.51.74.000 Rs56.89% Rs64.93.00 0 Rs4.000 Rs90.89 .1 95 Rs0 59 Rs2.11.44 0 Rs27.25.160 Rs90.295 65.000 Year 2 Rs1.35.25.04.00 0 Rs97.81.48.500 Rs1.66.000 n Expense Insurance: Rs3.000 Rs3.91.000 Rs56.00 0 Rs99.83 .00 0 Rs4.000 Rs3.25.29.60 5 Rs18.500 Rs1.1 40 Rs0 Rs62.000 Rs2.000 Rs56.04% Rs64.2 40 Rs1.80.46 .76.15 0 Rs18.500 Rs1.36 5 Rs27.97.160 Rs90.320 Rs59.30.050 Rs63.9 20 Rs2.53.160 Rs75.11.000 Rs36.05.000 Music & Entertainment Rs56.060 Rs61.00 0 Rs97.41% Rs59.8 20 Rs3.04.64 0 Bank Fees Rs18.00 0 Rs4.54.000 Rs36.31 5 Rs27.8 20 Rs2.535 Rs55.68.35.00 0 Rs99.1 05 Rs0 Rs59.37 0 Rs12.61.38.31.10% Rs60.66 .1 05 Rs1.21.99 5 Rs27.57 5 Rs11.420 68.00 0 Utility Services Rs3.080 69.16.7 50 Rs0 Year 3 Rs1.66.99.90.3 25 Rs0 Year 5 Rs2.93.88 .000 Rs36.9 55 Rs0 Rs63.29.000 Rs3.71.35.35 .33.9 55 Rs1.01.80.06 .80.71.6 40 Rs1.000 Rs3.215 67.00 .760 69.000 Rs90.94 (Gas/Electric/Water/Sewe 0 r) Telephone/Communicatio Rs27.00 0 Rs97.17.6 40 Rs0 Rs61.9 20 Rs2.120 Rs1.1 40 Rs1.000 Rs36.76.120 Rs1.74 5 Rs18.06.40.000 Rs3.000 Rs36.900 Rs62.58.00 0 Rs97.00 0 Rs99.90 .000 & Rs90.29.00 Fire/Theft/Liability/Liquor 0 /Product Restaurant Occupancy Rs11.47.5 20 Rs0 Year 4 Rs2.35.500 Rs1.00 0 Rs3.19 5 Rs12.75.47.24.000 Rs90.2 40 Rs0 Rs55.00 0 Rs99.80.18 .19% Rs64.000 Rs3.160 Rs90.78.36 0 Rs11.96 5 Rs18.00 0 Rs99.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 Rs1.53.120 Rs1.120 Rs1.000 Rs56.

We will surpass our breakeven point in October of our first year.600 Rs72.5 65 Rs31.42.00 0 Owner Comps Rs31.62 .79.99 0 Rs1.860 Other Expenses Rs63.000 Rs1.04.000 Rs3.46.00 Taxes 0 EBITDA Rs7.42. we will drive the Cost of Goods Sold (COGS) down.000 Rs1.Employee Benefits Exterminator/Trash Removal Dishware/Uniforms/Cleani ng Supplies/Decor Printing/Paper/Postage/S ubscriptions Facility (Exterior Cleaning/Grease Trap/Hood/Windows.86.5 50 Rs1.39.21 .68 0 Net Profit/Sales 1.18.05.46.09.860 Rs63. in this plan) at 35% of sales.09.000 Rs1.86.1 34 Rs2.000 Rs3.73 0 Rs20.22.87 5 Rs31.24.000 Rs1.60 0 Rs6.37.0 65 Rs1.600 Rs72.6 25 Rs89.1 90 12.19% Rs36. and utilities. our monthly break-even point is Rs13.000 Rs1.215.600 Rs33.450 per month which includes our full payroll.860 Rs63.37 .000 Rs3.000 Rs2. etc.30 0 Interest Expense Rs2.65 .600 Rs72.76.50 0 Rs54.4 20 6.47 0 Rs11.18 0 Rs1.0 15 7.75 0 Rs31.370 Rs22.34% Break-even Analysis For our First Year Break-Even Analysis.42.42.) Total Operating Expenses Rs98.580 Rs19.860 Rs63.970 Rs38.80.66. etc.1 25 Rs39. and increasing our Gross Margin.000 Rs2.46.96.40 0 Rs1.89.6 35 Rs20. 81.08.280 Rs11.02.49% Rs36.39.42.50 0 Rs54.86.000 (ComAreaMaint.87 5 Rs31.12.74% Rs36.68.20.15.08. With direct cost of goods (inventory.30 0 Net Profit Rs2.4 95 Profit Before Interest and Rs6.34 0 Rs49. rent.41% Rs36.21.0 50 Rs23.05.35 5 Rs1. we have an average running fixed costs of Rs9.33 5 Rs1.50 0 Rs54.78. BUSINESS PLAN ± Golden Moments Restaurant 60 .76 0 Rs5. As we exit the start-up phase of the business and focus on cost control.03.995 Rs72. and an estimation of other running costs.50 0 Rs54.22.000 Rs1.000 Rs1.210 Rs30.88.44 0 Rs8.50.46.6 55 Rs26.08.03.87. dropping our break-even value.860 Rs63.87 5 Rs31.000 Rs1.000 Rs3.83 5 Taxes Incurred Rs1.3 80 10.43 5 Rs14.) R&D Meals General Business Comps Rs72.

Break-even Analysis Monthly Revenue Break-even Rs12.18. HST/GST Received New Rs0 Current Borrowing New Other Rs0 Liabilities (interestfree) Year 2 Year 3 Year 4 Year 5 Rs1.01.06.91. Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Rs1.00. Month-by-month assumptions for projected cash flow are included in the appendices. We have no sales on credit.66.90 0 Rs2.06 0 Rs1.450 Assumptions: Average Percent Variable Cost 35% Estimated Monthly Fixed Cost Rs8.06. and is reasonable and customary in the restaurant industry.88.90 0 Rs2.81.91.54.20.01.61.66.18.88.545 Cash Flow Statement The cash flow depends on assumptions for inventory turnover and payment days. so our cash flow does not track accounts receivable.11.00. as the downturns are incorporated into the monthly revenue variance figures.81.32 0 Rs1.06 0 Rs2.05 0 Rs2.05 0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 BUSINESS PLAN ± Golden Moments Restaurant 61 .53 5 Subtotal Rs1. Our projected same-day collection is critical.61.53 Cash from 5 Operations Additional Cash Received Sales Tax. We do not expect to need any additional financial support.32 0 Rs1. Rs0 VAT. even when we reach the less profitable months.11.

93.18.83 5 Rs1.820 Rs90.18.16.79.16.920 Rs1.16.90.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.61.60 0 Rs1.06.56 0 Rs64.81.11.65 0 5 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs7.53 Rs1.86 0 Rs1.47.86.88.420 Rs1.14.710 Rs60.16.91.580 Rs7.90 Rs2.820 Rs64.86.11.56.53 Rs1.05 5 0 0 0 0 Year 1 Year 2 Year 3 Year 4 Year 5 Rs59.83. 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 Rs1.08.00.66.77.68.580 Rs7.920 Rs1.89.580 Rs7.79.01.64 0 Rs1.76.28 0 Rs64.10.16.66. VAT.580 BUSINESS PLAN ± Golden Moments Restaurant 62 .74.32 Rs1.50.580 Rs7.55 0 Rs1.06 Rs2.11.27.16.

090 Balance Sheet Statement The projected Balance Sheet is quite solid.71.425 Rs5.19.50.37.665 Current Assets Total Rs42.665 Rs48.34.425 Rs25.645 Rs10.84.390 Current Assets Long-term Assets Long-term Rs9.41.13 0 Rs17. On a linear projection.80.200 Rs35.625 Rs10.79.79.90.99.425 Rs1.665 Rs45.500 Rs52.185 Rs5.000 Rs4.95.760 Rs48.000 Rs1.92.67.03.225 Rs5.37.710 Rs65.47.905 Rs66.75.75.82.94.51.99.12.87.88.120 Rs10.99.87.93.75.140 Rs3. Golden Moments Restaurant & Lounge has a positive Net Worth beginning in Year 3.99.000 Rs1.27.085 Rs28. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Rs25.00.000 Rs1.47.000 Rs1.225 Rs1.75.14 0 Rs12.11 0 Rs3.000 Rs3.875 Rs9.635 Rs10.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 Rs1.140 Inventory Rs5.95. We do not anticipate difficulty meeting our debt obligations based on achieving the specific goals outlined in this plan.000 Rs9.93.500 d Depreciatio n Year 2 Year 3 Year 4 Year 5 Rs28.41.18.23 5 Rs2.75.500 Rs9.57.495 Rs83.000 Rs1.18.185 Rs2.090 Rs5.585 Other Rs10.50.19.11.86 0 Rs6.63.84.25.665 Rs66.500 BUSINESS PLAN ± Golden Moments Restaurant 63 .99.23.000 Rs2.84.665 Rs35.000 Rs9.000 Assets Accumulate Rs97.94.

210 Rs16.87.04.24.20.680 Rs4.190 Rs69.66.00.380 Rs45.015 Rs26.00.51.17.495 Year 4 Rs4.82.26.50.46.80.95.535 Rs66.08.420 Rs13.20.500 Year 2 Rs6.46.28.000 (Rs64.725 Rs37.965 Rs26.970 Rs9.62.560 Rs51.04.210 Year 3 Rs5.79.495 Rs9.28.72.44 0) Rs11.02.375 Rs4.00.695 Rs9.825 Rs66.83.500 Rs87.840 Rs39.420 Rs46.13 5) Rs2.50.14.980 Rs58.02 0) Rs20.95.24.260 Rs32.62 5) Rs26.680 Rs25.890 Year 1 Rs7.910 Rs0 Rs0 Rs8.96.230 Rs66.455 Rs9.000 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 Rs8.000 Rs71.000 (Rs53.80.890 Rs30.80.72.135 Rs66.100 Rs18.970 Rs0 Rs0 Rs9.455 Rs0 Rs0 Rs9.565 Rs87.99.85.98.77.500 Rs58.375 Rs69.03 5) Rs14.27.375 Rs71.330 Rs66.95.00.500 Rs23.000 (Rs41.79.695 Rs0 Rs0 Rs9.375 Year 5 Rs8.000 (Rs23.725 Rs0 Rs0 Rs8.23.910 Rs8.03.51.72.000 (Rs64.95.14.00.33.23.560 Rs13.965 Rs53.980 Rs45.72.22.56.99.71.00.79.500 Rs51.565 BUSINESS PLAN ± Golden Moments Restaurant 64 .02.

32% 23.46% 37.69% 9.00% 15.21% 48.49% 44. 5812.31% 39. Industry Profile.23% 100.32% 88.11% 100.00% 100.Business Ratios Business ratios for the years of this plan are shown below.19% 69.41% 67.87% 55. are shown for comparison.09% 65 .79% 9.00 % 19.00% 11.85% 4.00% 100.50% 3.42% 91. Ethnic Food Restaurants.00% 100.77% 94.44% 62.56% 78.20% 15.88% 11. details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code.04% 69.68% 17.85% 57.02% 73.68% 100.06% 20.54% 100.70% 18.65% 8.39% 59.39% 82. 62. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812. The following table outlines some of the more important ratios from the Ethnic Food Restaurants industry.34% 57.10% 68.00% 36.42% 21.62% 39.32% 63.48% 6.56% 25.00% 100.75% 12.00% 13.31% General & Administrati ve Expenses BUSINESS PLAN ± Golden Moments Restaurant 100.38% 51. 12.00 % 59.09% 59.a.68% 5.71% 74.79% 5.51% 8.95% 58.96% 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.13% 10. The final column.62% 100.32% 100.21% 14.89% Margin Selling.44% 11.89% 85.58% 100.62% 4.07% 21.17% 29.00% 16.90% 28. Ratio Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Industr y Profile 6.00% Gross 65.44% 11.77% 90.00% 17.01.

a 9.48 7.85% 124.71 Rs55.59% 2.a 66 BUSINESS PLAN ± Golden Moments Restaurant .19% Year 4 10. to Liab.7 40 11.34% 37.1 50 42.17 10.88 21.0 55 22.73.40% Year 2 6.24% Year 3 7.89 6.8 05 8.25 30 2.66 5.42% 64.38.39 Rs36. Liquidity Ratios Net Working Capital Interest Coverage 1.a n.37 0.05% 2.04 55.27% 84.79 12.71% n.32% 8.17 10.19 2.62% 77.a 10.32.23 1.53 12.4 80 2.19% 45.91.49% 87.17% Year 1 1.82% 31.26% 7.00% 15.a n.40 n.38% 7.14 30 3.42 30 3.74% 59.27 36.70% 34.52 n.23% 42.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.a n.a n.87 4.17 10.41 74.79% 5.80 12.a 27 3.75% 1.26 0.49% 6.25 0.78.58% 0.00% 11.28 0.41% 54.56% 1.17 n.46% 41.25% 0.85 0.07% 10.74% 4.a n.57 0.01 Rs73.22 90.35 12.91 11.88% 54.56% 5.33 10.83 29 2.74% 53.32% Year 5 12.59% 4.03 Rs42.28% 2.00% 18.93 0.87 3.a Rs33.06 4.27 0.65 n.

04 7. 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. with greater sales capacity and revenue potential. In addition Year 2 brings an increased sales and profit margin to sustain the addition of a full-time General Manager.41 13. 3.32 17% 0.45 0. or B) A larger Restaurant consortium. Expansion (Option 1): Our overall goal to maintain Golden Moments as a unique and eclectic concept. Expansion will be considered with our financial backers and Investor partners.07 7. We will look at the private sale of the majority interest via A) Leveraged Buyout.27 4. but another unique restaurant concept with strong growth potential. and compound the profit return for Golden Moments Investors. as well as a contingency in the event the business is unsuccessful.22 34.35 13% 0.09 n.08 0.a n. By second quarter of Year 2. 1.00 4. the business has captured market share by the end of the first year. Private Sale: We are in the business of making money. In both cases. 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.31 16% 0.42 11% n.11 6. Expansion (Option 2): Throughout our business plan we have stayed focus that Golden Moments would be successful as a larger venue.29 17% 0.25 5. 2.44 0.88 3.Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 0. our interest is in delivering healthy BUSINESS PLAN ± Golden Moments Restaurant 67 .a n.a n. This is not a chain.06 0. the owners will look to launch a second restaurant concept.31 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. we see Golden Moments as meeting 80.a 4. and Golden Moments has established market share. Based on projections. At this stage the business debt is reduced. At the close of Year 3.a Expansion. profit margins are increasing.

Under a realistic scenario the Company should have over Rs10. 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. No one attempt a business anticipating failure.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. The entire financial debt would be retired by Year 7. however sometimes ventures do not fulfill their promise. We step into this venture with confidence and the success of our respective prior business efforts. 50. BUSINESS PLAN ± Golden Moments Restaurant 68 . In the event that our venture cannot achieve profitability and retire the encumbrances. Financial Solvency: The financial projections indicate that exit will be achievable over 3 years for the operating capital line of credit. 4. Any further outstanding balances will be borne by the investors on a weighted percentage basis of the total amounts due.profits to our Investors and Financial backers. Exit Strategy to Retire the Business We at Golden Moments are committed to our concept and its viability. Sales and profit margins will be based on the restaurant valuation in Year 3.

Chapter Ten Implementation Schedule BUSINESS PLAN ± Golden Moments Restaurant 69 .

K. 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.Verma Manoj Manoj /Ankit Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit N.Verma Contractor A Manoj /Ankit S. with dates and managers in charge of each deliverable.Verma Manoj /Ankit Manoj 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 .Sharma Department Owners Consultant Owners Owners Owners Legal Owners Owners Owner Owners Owners Owners Owners Owners Owners Legal Gen. Gupta Contractor X Contractor Y Contractor Z Manoj /Ankit Chef/Ankit Manoj /V. The milestone schedule indicates our emphasis on planning and managing the details.Milestones The following Milestones table lists important business milestones.

Sharma Manoj /Ankit Manoj Manoj /Ankit Manoj /Ankit Manoj /Ankit Manoj /Ankit V. Contractor Owners Kitchen/Owner Wine Distributor Owners PR Marketing PR Marketing 71 BUSINESS PLAN ± Golden Moments Restaurant .Sharma Chef/Ankit Contractor A Manoj /Ankit Chef/Ankit Ankit V.Sharma Design Contract City City Design Contract PR Marketing Owners Media Marketing Owners Owners Owners Owners PR Marketing Kitchen/Owner Gen. Owner/Legal Verma Contractor A Gen.K.Sharma Contractor A Manoj /Ankit Chef/Ankit Ankit Manoj /Ankit V.K.Sharma 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. Contractor Contractor Z Board Board Contractor X V. Contractor Owners Kitchen/Owner Wine Distributor PR Marketing Gen.K.

Sharma Manoj Manoj/Ankit V.K.Sharma Manoj Manoj /Ankit Manoj /Ankit Manoj Manoj V.K.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.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.K.K.K.Sharma V.Sharma V.

53.060 Year 4 Rs1.335 Rs11.18.640 Rs0 Rs62.305 Rs0 Rs2.105 Rs0 Rs61.3 20 Year 2 Rs48.5 35 Cost Year 1 Rs44.09.71.41.02.91.0 60 Year 3 Rs49.51.39.33.5 50 Rs47.03.240 Rs0 Rs59.04.430 Rs12.505 Rs0 Rs1.81.610 Year 2 Rs1.37.0 50 Year 5 Rs51.04.01.600 Rs11.85.40.420 Rs0 Rs2.9 85 Rs40.29.1 85 Rs44.525 Rs0 Rs55.715 Year 5 Rs1.9 00 Year 4 Rs50.7 05 Rs37.43.485 Rs0 Rs1.140 Rs0 Rs63.9 25 Rs33.720 Rs11.855 Rs0 Rs1.00.88.615 Year 3 Rs1.81.65.76.89.63.955 BUSINESS PLAN ± Golden Moments Restaurant 73 .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 Rs1.11.42.66.06.88.62.09.370 Rs10.61.28.83.57.12.80.

420 68.500 Rs1.00 0 Rs3.215 67.35.000 Rs36.160 Rs75.25.8 20 Rs3.44 0 Rs27.90 .35.35.000 Music & Entertainment Rs56.00 Fire/Theft/Liability/Liquor 0 /Product Restaurant Occupancy Rs11.53.00 0 Rs4.06.15 0 Rs18.00 0 Utility Services Rs3.000 Rs3.1 40 Rs1.000 Rs90.00 0 Rs99.19 5 Rs12.96 5 Rs18.00 0 Rs99.04.6 40 Rs0 Rs61.16.295 65.33.21.81.120 Rs1.11.97.080 69.00 0 Rs4.05.19% Rs64.000 Rs3.36 0 Rs11.500 Rs1.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 Rs1.99.47.120 Rs1.000 Rs36.88 .120 Rs1.500 Rs1.71.320 Rs59.760 69.000 Rs3.79.000 n Expense Insurance: Rs3.050 Rs63.000 Rs36.80.00 0 Rs97.11.80.80.74.46 .9 20 Rs2.1 05 Rs1.9 55 Rs1.000 Rs56.00 0 Rs99.535 Rs55.51.18 .000 Rs3.000 Rs3.24.71.7 50 Rs0 Year 3 Rs1.00 0 Rs4.30.83 .000 Rs56.41% Rs59.1 95 Rs0 74 Rs2.54.1 40 Rs0 Rs62.60 5 Rs18.35.99 5 Rs27.160 Training / Employee Rs0 Retention Programs Repairs & Maintenance Rs1.160 Rs90.78.89% Rs64.900 Rs62.3 25 Rs0 Year 5 Rs2.120 Rs1.91.30.0 Cost (Lease) 00 Payroll Taxes Rs0 (FICA/FUTA/SUTA) & BUSINESS PLAN ± Golden Moments Restaurant .500 Rs1.76.2 40 Rs1.06 .31.37 0 Rs12.000 Year 2 Rs1.00 0 Rs99.500 Rs1.04% Rs64.000 Rs90.66.00 0 Rs97.000 Rs36.53.160 Rs90.25.89 .00 .1 05 Rs0 Rs59.000 Rs90.000 Rs90.58.36 5 Rs27.4 20 Rs3.6 40 Rs1.9 55 Rs0 Rs63.9 20 Rs2.66.35.31 5 Rs27.64 0 Bank Fees Rs18.000 Rs3.35 .75.00 0 Rs97.10% Rs60.80.000 Rs3.2 40 Rs0 Rs55.74 5 Rs18.25.93.160 Rs90.66 .04.94 (Gas/Electric/Water/Sewe 0 r) Telephone/Communicatio Rs27.5 20 Rs0 Year 4 Rs2.93.47.01.29.29.68.000 & Rs90.000 Rs2.000 Rs56.17.90.61.00 0 Rs97.000 Rs36.80.76.060 Rs61.40.000 Rs56.84 0 Rs97.8 20 Rs2.00 0 Rs99.29.38.57 5 Rs11.48.

42.86.87 5 Rs31.860 Other Expenses Rs63.000 Rs1.0 50 Rs23.3 80 10.08.42.09.46.65 .78.66.18.12.43 5 Rs14.000 Rs3.00 0 Owner Comps Rs31.39.22.96.000 Rs1.80.75 0 Rs31.6 35 Rs20.34% BUSINESS PLAN ± Golden Moments Restaurant 75 .000 Rs1.74% Rs36.68.99 0 Rs1.0 65 Rs1.02. etc.50 0 Rs54.68 0 Net Profit/Sales 1.37.50 0 Rs54.000 Rs2.20.000 (ComAreaMaint.87 5 Rs31.89.600 Rs72.18 0 Rs1.37 .000 Rs3.04.000 Rs1.19% Rs36.15.0 15 7.87.05.87 5 Rs31.46.970 Rs38.41% Rs36.05.46.4 20 6.40 0 Rs1.860 Rs63.46.6 25 Rs89.42.50 0 Rs54.1 90 12.86.30 0 Net Profit Rs2.35 5 Rs1.580 Rs19.600 Rs72.73 0 Rs20.860 Rs63.42.42. etc.1 34 Rs2.86.) R&D Meals General Business Comps Rs72.09.000 Rs1.08.62 .000 Rs3.210 Rs30.000 Rs1.21.860 Rs63.860 Rs63.000 Rs1.60 0 Rs6.000 Rs2.34 0 Rs49.24.30 0 Interest Expense Rs2.79.22.76.995 Rs72.88.) Total Operating Expenses Rs98.08.00 Taxes 0 EBITDA Rs7.000 Rs1.5 65 Rs31.600 Rs72.000 Rs3.44 0 Rs8.280 Rs11.39.50 0 Rs54.6 55 Rs26.21 .4 95 Profit Before Interest and Rs6.Employee Benefits Exterminator/Trash Removal Dishware/Uniforms/Cleani ng Supplies/Decor Printing/Paper/Postage/S ubscriptions Facility (Exterior Cleaning/Grease Trap/Hood/Windows.83 5 Taxes Incurred Rs1.47 0 Rs11.600 Rs33.49% Rs36.03.370 Rs22.1 25 Rs39.33 5 Rs1.76 0 Rs5.5 50 Rs1.50.

66.00.61.61.01.61.06 Rs2.91.06 0 Rs1.06.11.32 Rs1.05 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 Rs1.88.32 0 Rs1.05 0 Rs2.88.06.01.53 Cash from 5 Operations Additional Cash Received Sales Tax.91.66.00.11.91.06 0 Rs2.32 0 Rs1.88.53 Cash 5 Received Expenditur Year 1 es Expenditur es from Year 2 Year 3 Year 4 Year 5 Rs1.11. HST/GST Received New Rs0 Current Borrowing New Other Rs0 Liabilities (interestfree) New Long.18.18.90 Rs2.81.00.05 0 0 0 0 Year 2 Year 3 Year 4 Year 5 BUSINESS PLAN ± Golden Moments Restaurant 76 .06.66.18.Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Rs1.Rs0 term Liabilities Sales of Rs0 Other Current Assets Sales of Rs0 Long-term Assets New Rs0 Investment Received Subtotal Rs1.90 0 Rs2.01.81.53 5 Subtotal Rs1. Rs0 VAT.81.90 0 Rs2.

580 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs1.28 0 Rs64.920 Rs1.14.63.14 0 Rs12.11.50.60 0 Rs1.10.79.11 0 Rs3.Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.77.23 5 Rs2.95.79.420 Rs1.820 Rs64.74.425 Rs25.16.200 Rs35.00.55 0 Rs1.80.225 Rs1.000 Rs1.65 0 5 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs7.18.86 0 Rs1.000 Rs1.580 Rs7.76.83 5 Rs1.140 Rs3.47.580 Rs7.18.93.84.47.88.710 Rs60.86.93.83.53 Rs1.425 Rs1.37.580 Rs7.760 Rs48.57.56.90.16.27.27.16.64 0 Rs1.03.89.41.08.16.13 0 Rs17.56 0 Rs64.86. VAT.66.94.185 Rs2. 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 Rs59.11.86 0 Rs6.19.68.79.50.25.000 Rs1.905 Rs66.000 Rs1.16.090 BUSINESS PLAN ± Golden Moments Restaurant 77 .580 Rs7.085 Rs28.820 Rs90.84.79.920 Rs1.23.16.50.93.

87.79.00.420 Liabilities Total Rs46.185 Rs5.95.500 d Depreciatio n Total Long.67.330 Liabilities Paid-in Rs66.585 Other Rs10.00.665 Rs66.500 Rs9.12.455 Rs9.99.000 Rs9.645 Rs10.390 Current Assets Long-term Assets Long-term Rs9.000 Rs71.210 Year 3 Rs5.90.33.225 Rs5.99.695 Rs0 Rs0 Rs9.000 (Rs41.710 Rs65.75.000 Capital Retained (Rs64.665 Rs35.00.95.910 Payable Current Rs0 Borrowing Other Rs0 Current Liabilities Subtotal Rs8.96.66.500 Rs87.79.47.80.83.455 Rs0 Rs0 Rs9.41.20.000 Rs3.99.80.090 Rs5.75.Rs8.500 term Assets Total Assets Rs51.000 (Rs23.00.120 Rs10.04.000 Rs4.75.99.970 Rs0 Rs0 Rs9.72.37.85.99.00.46.500 Rs52.72.500 Rs58.665 Rs45.26.635 Rs10.44 Rs23.000 Rs53.890 Liabilities Year 1 and Capital Current Liabilities Accounts Rs8.725 Rs0 Rs0 Rs8.000 Rs1.18.71.970 Rs9.17.87.500 Rs7.000 (Rs64.135 Rs66.62 78 BUSINESS PLAN ± Golden Moments Restaurant .56.13 Year 2 Year 3 Year 4 Year 5 Rs28.03 Rs16.00.99.50.71.425 Rs5.75.20.Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Rs25.875 Rs9.92.84.495 Year 4 Rs4.840 Rs39.725 Rs30.62.495 Rs83.000 Rs2.825 Rs66.46.230 Rs66.000 (Rs53.535 Rs66.94.19.260 Rs32.28.27.665 Current Assets Total Rs42.02 Rs9.11.08.98.51.000 Rs9.14.100 Rs18.665 Rs48.82.95.75.680 Rs25.910 Current Liabilities Long-term Rs37.625 Rs10.695 Rs9.95.34.82.140 Inventory Rs5.77.000 Assets Accumulate Rs97.500 Year 2 Rs6.87.375 Year 5 Rs8.

375 Rs4.24.560 Rs13.565 Rs87.420 Rs13.02.210 0) Rs20.02.190 Rs69.99.980 Rs45.965 Rs53.23.560 Rs51.03.495 5) Rs26.375 Rs69.015 Rs26.95.80.565 BUSINESS PLAN ± Golden Moments Restaurant 79 .22.51.51.28.Earnings Earnings Total Capital Total Liabilities and Capital Net Worth 5) Rs2.680 Rs4.50.79.500 5) Rs14.380 Rs45.72.965 Rs26.24.72.04.980 Rs58.375 Rs71.890 0) Rs11.23.14.

Planning Implementations & Control Edition.indyethnicfood.com/ Books Kotler Philips.com/ http://www. New Delhi.Bibliography y y y http://whatscookingamerica. 1998. Marketing Management Analysis. Prentice Hall of India Ltd.net http://www.sallybernstein. BUSINESS PLAN ± Golden Moments Restaurant 80 .