1.

0 Executive Summary
The Ayalne burger will be a one of a kind burger house that located in bus station, Jijiga. The
1,000 square foot house will be located around Traffic light located on the northwest corner of
06 Kebele Street towards to the new Taiwan Road . The anchor tenant, the Price Chopper
grocery store, has already taken occupancy and the excellent location brings more than 1000
customers weekly.

1.1 back ground and history

The Ayalne burger center starts with 500,000 birr in Jigjiga, around Traffic Light in 20013
E.C.The operation capital is composition of loan liability and saving deposit. During operation
we may face many challenges from external and internal factor. Internal factor is lack of enough
capital, unfamiliar of business managing system, strangeness of work employees, etc. external
factors is gov’t rule and regulation, competitors, lack of customer ideology, low material supply,
low demand and etc. We start our business on our agreement base when we operate business. We
agree that we should divide profit equally.

1.1 Business Objectives

The primary objectives of the business plan for Ayalne Burger are below:

• To increase revenues 75,000 birr or 15% in Year 2 and $130,000 or 26% by Year 3
• Achieve a profit margin of 14.8% in Year 2 and 26% by Year 3
• Be the Burger of Choice in the Jijiga area and recipient of the Best Burger House Award Our
site is confirming in May, therefore our goal is to be up and running by July Our B&L and
balance sheet all begin in July. Startup costs b/n May and July may be find in the startup
summary section. The burger center will turn a profit by beginning of our fiscal year of operation
we will pay down our 300,000 birr CBE loan to 50,000 birr by the end of one year. Repeat
customer will constitute 60% of our overall business by the end of one year. We will track
customer habit loyalty through a local marketing research firm, publish the results of these
finding to our employees once a quarter. Net profit for year one will be 20%.

1.2 Mission
Our mission is to bring to market the taste and healthiest fast food with reduced cost and good
quality over other fast food restaurants. Our high standards of quality and clean lines will
establish our reputation as the cleanest fast food restaurant in Jigjiga. Our community is as
important to us as making a profit we will devote 1.5% of profit to a local women shelters, and
1% to local environment conservation fund. This company is find on the concept that good
works and good deed not only serve the needs of community, but will also keep our company
healthy and committed to success of its customers.

1.3 Guiding Principles

The Ayalne Burger is committed to values such as excellence, passion, quality, integrity and
leadership which allow them to navigate challenges and provide for future opportunities. These
core beliefs start with their commitment to their products and their employees. The Ayalne
Burger rewards excellence and cherishes loyalty. The café will work with its employees to build
strong businesses and a secure future.
1.3 Key to success
The most important key to success is our location. It is very important that our location live up to
our expectation, and is convenient to as many potential customers as possible. As stipulated by
the franchise agreement our “Article 9 sub article 3” location must contain a minimum of 500
customers with in a three block radius (or four-minute walk time). The pedestrian traffic must be
adequate and the lunch habits of the customers must be conductive to eating out. The Ayalne
Burger stands out from the competition. Below are their Keys to Success:

• Great Products – providing exemplary products at market prices – will make customers want
to return again and again

• Hire Quality Baristas – Pay employees rates similar to the larger chains with opportunities for
long term careers and opportunities for advancement with long term plans to open a second
facility Another key to success lies with our ability to execute our plan. If we neglect one or
more aspects of our plan whether that is our numbers, our cleaning and food standards, or our
commitment to customer we will not success and thrive.

2.0 Company summary

“The Ayanle Burger center “partnership franchises and sometimes own and operate quick service
Ethiopian style Burger center. The Ayanle upscale concept fits a niche b/n fast food and fine
dining offering the customer the best benefit of both segments. The company provides the
convenience of fast food. With rapid response time affordability as well as carry out and home
meal replacement options. The Ayanle also offers a fresher and tastier alternative to typical fried
fast food products such as hamburger and French fries(chip). The Ayanle concept was born in
the kitchen of popular Ethiopian dararo restaurant called Dakacha’. The goal of the original
owner was to provide great Ethiopian food in a clean, urban environment, and at a reasonable
price after two years as Dakacha’s.

2.1 Company ownership

90 percent of the restaurant belongs to Hawlitu Mesfin, Melaku Balcha and Ermiyas
Worku limited liability partnership. The company is formed in Jijiga in 2013 E.C, and is owned
by Hawlitu Mesfin and Melaku Balcha, and Ermiyas Worku about 30% each limited partnership.
The remaining 10% is held by store manager.

2.2 Legal Form

The Ayanle Burger will be formed as an S-Corporation wholly owned by Hawlitu Mesfin,
Melaku Balcha, and Ermiyas Worku.

2.3 startup summary

The startup table shows a summary of our overall startup cost. The highest initial outlay is for
franchise fee. This is required to launch the franchise. After paying our franchise fee our only
liability to the franchise will be the 10% cost of sales, and 1.2% advertising charge. Normally the
franchise fee would be paid interest accruing installment, but we decided to fore go this to keep
the books as clean as possible and to reduce the possibility of “parent/child “conflict b/n our
company and the constitutes. Cash requirement for startup are 1000,000 birr, and most this will
site in a zero interest bearing, highly liquid bank account. The first month our change in accounts
payable will top 290,000birr, so we need this 1,000,000 birr in case sales are not what we
expected. If sales are 30% off projected, this 1,000,000 birr will help us gather enough cash to
pay off our accounts payable within 30 days. The principle will invest a combined 1,500,000 birr
to start up the franchise. We expect that the majority of this will be paid back to the owner with
in two year of operation in the form of dividend. This investment makes up over 7% of the total
start up requirement for the company. The remainder consists of one 3,200,000-birr short term
interest bearing, unsecured personal loan, one 860,000-birr interest free “First Card visa” 0%
promotional loan, and a 18,000,000-birr long term loan guaranteed by the NBE program. The
term of expected loan is 10 years. The NBE loan that we are seeking will be secured via the pre
appraised market value of the land and property as well as the improvement to be made on the
property through 2013 E.C. The estimated net market value of the property following all
improvement is approximately 18,000,000 birr.

Startup requirements
Startup expense

Business license ……………. 4,000 birr

Refrigerator /freezer………. 21,000 birr

Building improvements…… 60,000 birr

Franchise fee …………………. 70,000 birr

3 % Loan origination fee …. 9,000 birr

Insurance ………………………. 1,200 birr

Research and development …… 1,300 birr

Total start up expense………… 166,500birr

Startup assets

Cash required ………… 100,000 birr

Startup inventory …….. 80,000 birr

Other current assets …… 40,000 birr

Long term assets …………. 500,000 birr

Total assets ………………….. 720,000 birr

Total requirement…………… 553,500 birr

Startup funding

Startup expense to fund …. 47,390 birr

Startup assets to fund……….. 120,500 birr

Total funding required ………… 73,110 birr

Assets

Non cash assets from startup ……. 105,400 birr

Cash requirement from startup……. 10,000 birr

Additional cash raised ………………. 0 birr

Cash balance on starting date ………. 10,000 birr

Total assets…………………….. 125,400 birr

Liabilities and capital

Liabilities

Current borrowing …………………….. 32,000 birr

Long term liabilities ……………….. 180,000 birr

Accounts payable (outstanding bill) ……… 15,000 birr

Other current liability (interest free)……… 8,600 birr

Total liabilities …………………………… 44,800 birr

Capital

Planned investment

Habte capital …………………… 10,000 birr

Kebe capital ………………………. 10,000birr

Requirement

Total investment ……………………… 20,000 birr

Loss at start up (startup expense)……. 50,000 birr

Total capital………………………… 10,000 birr

Total capital liabilities……………….. 54,800 birr

Total funding……………………… 143,710 birr

2.4 Company location and facilities

The company is located in Hawassa specific address is called bus station on the main street
which takes to Hawassa University. It is the busiest shopping district and is very close to the bus
station.
 3.0 product

We will offer a large variety sandwiches, cheese burger ham burger and sodas. The sandwiches
made is unique sweet mustard sauce and each loaf of burger is made fresh daily. The burger is
toasted for every order the soups are made daily.

3.1 product description

All of our burger are available for customization. In addition, customer will love the fresh
toasted burger, and the freshly sliced meats and cheeses. We purchase the needed product from
the following regions. From Tula: salami roast beef, tomatoes onion, bell pepper, cheese,
vinegar, oil, salt, and pepper upon request. From shamena: cheese, tomato, onion, bell pepper,
vinegar, oil, salt, and, pepper upon request. From shashemene: cheeses, white meat chicken,
sauce, tomato, carrot, onion, bell pepper, oil, salt, and pepper upon request.

3.2 Competition
Our competition is with different restaurants which offer burger service to customers. They are
dararo restaurant, fast food restaurant, and down to eateries, lew hotel No.1 etc. We decided to
win these fierce competition in which following different competition strategy. Our competition
strategy is based on situation of demand and satisfaction of customers. To compete we have
chosen quality based and price based competition strategy as demand. The competition will be
fierce, but our specialized burger will set us apart from competition as will our focus on healthy,
yet tasty fast food. Others competitors have emphasized the benefit of healthy burger yet their
burger is often tasteless and stales they don’t toasted their burger, they don’t use a special sauce,
and their production facilities are rarely clean enough to make dining in their restaurant an
appetizing venture The other fast food restaurant in town will offer a more serious challenges
How do we position ourselves so that people food is both healthy and tasty. Many people who
eat fast food burger and fries are not concerned with healthy benefits of such activities but rather
the way the food tastes. To competitive our sales literatures and promotion will makes it clear
that our product are tastier than any greasy ham burger, yet will provide a fun guilty free eating
experience.

3.3 sales
Our sales literatures consist of menus supplied by the Hidase and custom flyer designed in house.
The custom flyer will offer catering prices explain the difference between our lunch special and
those of our competitors and show our hours of operations.

3.4 Technology

We will take advantages of the latest technology in order to speed our business process and
develop more efficient operation. In planning for the launch, we have purchased three copies of
business plan pro software. Each principle has been given a segment of the plan to work on.
George G is in charge of writing all business specific topics. Habtamu D is in charge of
generating and explaining the numbers and managers is responsible for all operations specific
topics. each person synchronizes their machine with the secure plan come secure server making
the most recent version of the business plan available at all times on the web.

4.0 Market analysis

Our market consists of tourists down town workers and students from southern region university.
Over 362,000 tourists visit Hidase burger each year. 100,000 for the fiche festival and 262,000
for other recreational /feeding activities. Tourists’ makes up the largest segment of our target
market at all about 85% of the total market for our products. There are about 18,000 people
living and working in Hawassa. If we can convince just 15% of those people to buy our burger
twice a month we will sell 65,000 sandwiches to that market alone in 2006. Add that amount to
20% of all tourists the Iceland area and those two segment alone will buy 138,000 meals. In
additional demographics have shifted in recent year from the traditional house hold (two parent
with children) to more nontraditional house hold as a result many adults feel they have less free
times. Consumers’ reports that they are eating out more often in order to free up times normally
spent cooking and uses that times to enjoy their families and to take advantages of others leisure
activities

4.1 Market needs

There are two market needs we are attempting to fill. First there’s needs for a fast food restaurant
that produces tasty fast food at low cost in a clean environment. There are many people
considered in the traditional sense to be “middle class “ and above who will not set foot inside a
fast food restaurant due to a) The restaurant’s lack of cleanliness and b) The relatives poverty
and despair displayed by the people working in these fast food restaurant. To fill the needs of
these customers we will market products that appeals to their healthy lifestyle their taste buds
and their sense of “place”. In addition, our food lines tables, floors and counters will be cleaned
constantly throughout the day and we will maintain a very high standards of clean lines.

4.2 Market trends

The market for fast food is becoming more demanding while’s fast food chains such as cookies
and others in the mid 2007s failed in their attempt to market low calories fast food, since the 90s
some companies have found that healthy fast food pays off. Garden burger have become
prevalent at many fast food restaurants and even some fast food burger franchises are beginning
to offer garden burger, and other so alternatives.

4.3 Market growth

The national restaurant associated predicts that they are QSR market will grow slightly slower
than overall market for food services. This is due to reduced discretionary economic pressures in
2000 and 2001, The overall growth rate in the fast food business is the expected to be2.7% in
2001 growth catering services is expected to be at around 6.5%. Based on the fact that only about
20% of our sales will be generated from catering service and that our business resides in the QSR
sub-market of the fast food market a slower growing market during recession we have pegged
our overall market growth rate at a weighted 4.82%. However because of the faster than average
growth of the town area, and the increase in tourism in Hawassa area over last few years we have
estimated that our potentials customer base will grow at healthy 5.9%.

4.4 Distribution patterns

We distribute our product direct to customer both through retails and through catering service.
We don’t rely a channels of resellers or distributors to get our products into hands of customers.
4.5 Competition and buying patterns

The fast-food business is based largely on the impulsive choice customers. Many people buy the
business lunch or family dinners at a fast food restaurant and those fast food restaurant offers not
necessarily the best selection but the most reliable menu and fastest order completion times.
Customer will try other fast food restaurants and shop around but the majority of their fast food
purchase are from one of their favorite fast food or inner restaurants. Our goals is to capture
those customers and to build loyalty to the products through purchase punch cards consistent
daily specials and direct mails list.

4.6 Main competitors

Our main competitors are major national fast food franchises. Blue Nile restaurants is our largest
competitors with 12,868 franchises in Hawassa alone.Blue Nile restaurants franchises throughout
the nation and offers two locations in the Hawassa area. Blue Nile restaurants contributes to the
growth in our markets by the advocating for healthy eating habits online. TV and radio
advertising. They are our largest competitors yet they also contribute to the national’s wide
growth of healthy food segments of this markets. We can counts on them to bring peoples into
our stores and will targets their local operations through direct mails flyer that offers specials to
customers that bring in their Blue Nile 10 sandwiches punch cards
5. Strategies and Implementation
Our no.1 strategy is to focus on our customer experience. Our success hinges on whether
customer receive what we promised them and pleased enough to come back for more. Our KISS
(keep it simple stupid) approach will be successful only if we don’t distract ourselves from the
core business of making good burger, and of treating customer as if they are special .As with any
business model in the new millennium we must adapt our strategy to the customer and market
trend while maintaining consistency of brand and message. This is challenge for any business in
any industry because the nature of business will always and has always determined that the best
strategy with the most resources behind it will survive. This millennium has proved to be very
successful in growing this market and of supporting business. Contributed to customer desires to
eat their meals in comfortable healthy environment.

5.1 Competitive edge

We have a competitive edge in regard to the overall quality and differentiation of our product,
and cleanliness and ambiance of our seating area. Our hamburger, soups etc. are all of the finest
quality and have been refined through taste –tests sponsored by Blue Nile restaurant. Our seating
area will be clean the murals and print on the wall will feature airy Italians land escape and
European lifestyle motifs. The walls will painted a rich yellow color the table and chairs are a
rich walnut color and the floor will consist of high quality tile we will differentiate our food from
Blue-Nile restaurant in regards to taste quality of bread and contents attentiveness to customer
and overall experience. We will build off the Blue-Nile national marketing strategy so that we
gain from their conversion of burger eaters to sandwiches eaters but alternately prove that we are
more responsive to customer and offer better fare than Blue Nile restaurant.

5.2 Marketing strategy

Our market strategy is to reach the largest amount of tourist resident and student for least amount
of money. Our strategy will focus on three sold points:

1. Building customer loyalty.

2. Extending the franchise brand locally.

3. Develop local word of mouth advertising (buzz

5.3 pricing strategy

Our pricing strategy is different for customers. Prices to retails customers will be fixed by the
chairs and based on a relative cost of living indicator. Retails prices will be competitive at about
86 birr for average meal, this is about 30% above McDonald’s and burger King prices, but only
about 15% above average prices of a Blue Nile restaurant. Customer are simple willing to pay
more for healthy flavorful food served in clean comfortable environment.
Our highest margins will come from our catering services and large sub product. We will focus
on expanding this segments of the market as soon and as aggressively as possible.

5.4 Promotion strategy

The chairs will promote our products on the national level .In order to reach our local customer
and build loyalty we will offer special mid-days promotion sponsor local community events,
advertise in the local classified paper and our president will become a leading figures and
spokesman in the community. Our strategy is to focus on promoting the business through local
PR efforts, rather than paid advertising.

5.5 Distributions Strategy

We plan distribute our product direct to customer without the use of a separate channel of
distributors.

5.6 Marketing programs

Our marketing program will include customer centric appeal to switch from competition, build
loyalty, provide cost value to the customer and build words of mouth marketing.

Here’s list of sales and marketing programs we intend to implement with in next 15 months:

 Five daily in store regular specials at least 15% off one particular burger item.
 A direct mails coupon offering 50%off your first burger when you bring in a stamped
menu card and sign up for our coupon mailing list.
 High profile sponsorship of two local sporting or charity events.
 20% off a menu item when we bring in our festivals ticket stub.
 Free delivery to any of the local hotels (market only through hotels), and offers to pay
hotels a slotting fee.

We may institute more programs as we see fit. This list of programs is aggressive when
compared to the local marketing done by our competitors so this should give us an early
advantages as long as we can keep cash balance and sales numbers up.

5.7 sales strategy

Our sales strategy will be to reach the largest amount of Jackson county resident and tourists
with consistent value added incentives to purchase our products and visit our restaurant. In
this industry and especially as a franchise our marketing programs are almost
indistinguishable from our sales program. The distinguishable handles a lot of national and
regional marketing and we just pay our fee to have it done Our flexibility will lie in our
ability to push the bounders freedom the indistinguishable has given us and to take
advantages of opportunities to differentiate ourselves on sales by sale level.
 5.8 Sales forecast

The majority of our revenue will be regenerated through medium subs and cookies
/desserts .The break down by product is below:

Sales forecast year 1 year 2 year 3 year 4 year 5

Unit sales

Large subs

Medium subs

Small subs

Entrée salads

Side salads

Chips

Party subs and /or trays

Desserts

Cookies and desserts

Soups and chili

Drinks

Totals unit sales

Unit prices year 1 year 2 year 3 year4 year 5

Large subs

Medium sales

Small sales

Entrée salads

Sides salads

Chips

Party subs and Trays

Desserts

Cookies and desserts

Soups and chili

Drinks

Sales

Large subs

Medium subs

Small subs

Entrée salads

Side salads

Chips

Party and Trays

Desserts

Cookies and desserts

Soups and chili

Drinks

Total sales

Direct unit costs year 1 year 2 year 3 year 4 year 5

Large subs

Medium subs

Small subs

Entrée salads

Side salads

Chips

Party and Trays

Desserts

Cookies and desserts

Soups and chili

Drinks

Direct cost of sales

Large subs

Medium subs

Small subs

Entrée salads

Side salads

Chips

Party subs and Trays

Desserts

Cookies and desserts

Soups and chili

Drinks

Subtotal direct cost of sales

6.0 management information

Our manager is well skilled and experienced. We want our manager to take a personal stake in
the success of the company and for that reason we have given them a motivation rewards.
Specific information about each manager is available in the following topics.

6.1 personal plan

Most of our employees will come from the University of Hawassa. They will be part time
students and will not need healthcare benefits. This will hold our pay roll burden to less than
8%of total payroll. Our employees will be respected and will wear a company poor sweatshirt,
not a tight fitting, artificial fibers ,company man date jumpsuit . our employees will be paid more
(in salary @benefits) employees than at most other fast food restaurant will be given tuition
reimbursements there by making them more empowered and more content workers. In this way
we will meet the needs of our markets and differentiate our company from myriad of fast food
behemoths whose primary goals is to churn out worthless, tasteless food in a degraded facility
and by degraded employees.

Personal plan year 1 year 2

Assistant manager 32,400birr 34,344birr

Store manager 44,400birr 47,064birr

Student help (pt) 16,320birr 17,299birr

6.2 Management team

The management has a combined 30yearsof experience food service industry with 15years of
delicatessen experience. They are:-

Owners
Assistant mangers
Audit and book keeping recorded accountants
Waitresses
Cleaners
Tourist visitors and etc.

7.0 Financial plan

The financial plan will cover the following:

• Required Cost of Start-Up

• Profit and Loss

• Cash Flow

• Balance Sheet

• Financial Ratios

7.1 Important Assumptions

• The sales forecast is conservative and assumes a 5% increase in Year 2, and a 10% in Year 3.
• The analysis accounts for economic seasonality – wherein some month’s revenues peak (such
as holidays) and wane in slower months.

• The analysis assumes the owner will take a much smaller salary compared to his baristas; at
any time, it is assumed that owner’s withdrawal is available at his discretion.

• Sales are cash basis – nonaccrual accounting

• Moderate ramp- up in staff over the 3 years’ forecast

• The average barista salary in 2012 is $50,000.

• In general, most cafes have an 85% gross profit margin

• In general most cafes have a 3% net profit margin

Table 7.2 Start-Up Costs

Start-Up Expenses Amount
Operating Capital Br. -
Salaries and Wages Br. -
Insurance Premiums Br. 158,400
Beginning Inventory Br.
Legal and Accounting Fees Br.-
Rent Deposits Br. 68,475
Utility Deposits Br. -
Supplies Br. 66,000
Advertising and promotions Br. 132,000
Licenses Br. -
Other initial Costs Br. 264,000
Work Capital(Cash On Hand) Br. 264,000
Total Start-Up Expense Br. 952,875
Start-Up Assets
Real Estate Br. -
Buildings Br. -
Leasehold Improvements Br. 2,366,925
Equipment Br. 1,263,075
Furniture and Fixtures Br. 462,000
Vehicles Br. -
Other Fixed Assets Br. -
 Total Start-UP Assets Br. 4,092,000
Total Required Start-up Costs Br. 5,044,875

7.3 Projected cash flow

The following chart and table shows the projected cash flow.

Perform cash flow year 1 year 2 year 3 year 4 year 5

Cash received

Cash from operation

Cash sales subtotal cash from operation

Additional cash received

Subtotal cash received

Expenditures

Expenditures from operations

Cash spending

Bill payments

Subtotal spent on operation

Additional cash spent

Sales tax vat hst /gst paid out

Principle repayment of current borrowing

Other liabilities principle repayment

Long term liabilities repayment

Purchase other current assets

Purchase lond term assets

Dividends

Subtotal cash spent

Net cash flow

 Cash balance

74 projected balance sheet

Pro forma balance year 1 year 2 year 3
sheet

Assets

Current assets

Cash

Inventory

Other current assets

Total current assets

Long term assets

Long term assets

Accumulated
depreciation

Total long term assets

Total assets

Liabilities and capitals

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

Total liabilities and capital

Net worth