JANET CATERING SERVICES (JCS) BUSINESS PLAN

1.1 Executive summary……………………………………………………....3

1.2 Business description………………………………………………………3

1.3.1 Date of commencement………………………………..………………...3

1.3.2 Company Locations and Facilities……………………………………….3

1.3.3 Form of the business……………………………………………………...4

1.3.4 Ownership……………………………………………………………..…4

1.3.5 Business objectives……………………………………………………….4

1.3.6 Mission…………………………………………………………………....4

1.3.7 Objectives………………………………………………………………...4

1.4 Keys to success…………………………………………………………… 5

1.5 Products and services………………………………………………………5

1.6 sales literature……………………………………………………………..5

1.7 Financial considerations…………………………………………………..6

1.8 Entry and growth strategy………………………………………………...6

1.8.1 Entry strategy…………………………………………………………...6

1.8.2 Growth strategy……………………………………………………........6

1.9 Marketing plan……………………………………………………………6

1.9.1 Market analysis summary……………………………………………….7

1.9.2 Industry analysis………………………………………………………...7

1.9.3 Market segmentation…………………………………………………....8

1.9.4 Middle………………………………………………………..………….8

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1.9.5Upper………………………………………………………………....8

1.9.6 Events…………………………………………………………….….8

1.9.7 Target market segment strategy……………………………………..8

1.9.8 Implementation summary………………………………………..….8

2.0 Competitors…………………………………………………………….9

2.1.1 Competitive edge…………………………………………………....9

2.1.2 Strategy pyramid……………………………………………………10

2.1.3 Pricing strategy……………………………………………………..10

2.1.4 Promotion strategy………………………………………………….10

2.1.5 Sales strategy……………………………………………………..…10

2.1.6 Sales forecast………………………………………………………..11

3.0 Organizational plan……………………………………………………12

3.1.1 Management summary……………………………………………...12

3.1.2 Personal plan……………………………………………………..…12

4.0 Financial plan………………………………………………………...14

Table: cash flows………………………………………………………...14

Table: profit and loss………………………………………………..……16

Table: Balance sheet ………………………………………......................18

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1.1 EXECUTIVE SUMMARY

JCS is a catering is a Swahili catering company that serves the Bamburi and the larger Mombasa
market.  JCS offers creative, colorful, and unusual food options for Swahili dishes as well as the
traditional standbys.  The service offerings are quite a change relative to the existing Swahili
dishes catering market which is quite stagnant.  Most people make the incorrect assumption that
Swahili food means ordinary, boring food.  This assumption prevails throughout the coastal
community so there is not much demand for new offerings.

Janet catering will inject new life into the Swahili catering market, leveraging chef Janet skills to
develop creative new catering options.  Janet's advanced skills, industry insight, and a great
market opportunity will allow JCS to reach profitability by month 11 and generate 395,000 in
revenues for year three. JCS expects to raise 200000 of its own capital, and to borrow 200000
guaranteed by the Equity bank as a 3-year loan. This provides the bulk of the current financing
required. JCS anticipates sales of about 83,017 from middle income clients and 95,422 from
upper income clients, in the first year, 170,992 and 196,543 in the second year, and 183,774 and
211,234 in the third year of the plan. JCS should break even by the fourth month of its operation
as it steadily increases its sales. Profits are expected to start rising from the second year.

1.2 BUSINESS DESCRIPTION

Our aim is to serve the catering needs of our clients in Mombasa and its outcasts at their own
venues .We provide flexible, traditional and innovative catering delivered with flawless
executive at affordable prices. We offer services to corporate and government events at a full
range of events including business meetings, conferences, exhibitions, special events, weddings
and other social occasions.

1.3.1 Date of commencement

The business will kick start operations from the 21st of December 2022

1.3.2 Company Locations and Facilities

The business will operate in a spacious room in a two storey building in Bamburi, Mombasa.

It will have the following equipment;

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 a) Two commercial stoves with ovens.
b) Dishwasher.
c) Two sets of cookware.
d) Two sets of dishware.
e) One van with rolling racks built in (a rolling rack is a wheeled rolling cart system that is
insulated for both hot and cold food).
f) Assorted serving trays and utensils, knives and cutting boards (two each). 
g) Desk and chair.
h) Computer with printer, CD-RW, Microsoft Office, and QuickBooks Pro. 
i) Copier and fax machine.

1.3.3 Form of the business

JCS is incorporated in Mombasa County. It is incorporated as a sole proprietorship enterprise.

This form of ownership was picked because of the ease with which decisions are made.

1.3.4 Ownership

JCS is a sole proprietorship owned by Janet Gandani

1.3.6 Mission

JCS's mission is to provide the customer with the best of food catering.  We exist to attract and
maintain customers.  When we adhere to this maximum, everything else will fall into place.  Our
services will exceed the expectations of our customers

1.3.7 Objectives

Profit - To generate sufficient profit to finance future growth and to provide the resources needed
to achieve the other objectives of the company and its owners. (Net profit of at least 40% of sales
in first year).

Growth - To grow the business at a rate that is both challenging and manageable, leading the
market with innovation and adaptability.

Contribute 6 hours per week as volunteer; contribute 10% of pretax profits to educational
sponsorship programs).
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To create a service-based company whose primary goal is to exceed customer's expectations

To increase the number of client's served by 20% per year through superior service.

To develop a sustainable start-up business.

To develop enough cash flow to pay all salaries as well as grow the business.

1.4 Keys to Success

The key to success is to meet and exceed the customer's needs in terms of quality of food and
excellence of service.

Fair pricing will also create competitive advantage for us.

1.Products and Services

We will offer the following foods;

Mandi; this is one type of dish made with meat (chicken or lamb), spices and rice all smoked to
give that spectacular aroma. it serves as a main dish, lunch or dinner.

Biryani dish; this is a specialty of Mombasa. The meat is marinated and then layered with half-
cooked rice in a tight pot and then cooked together, which makes this a little bit adventurous but
an incredibly easy and delicious recipe nonetheless.

Pilau; this is one of the most popular dishes in Kenyan homes. It is a coastal dish served with
Kachumbari. It can be cooked with beef, chicken, mutton, soya etc.

White Chicken Korma is a creamy; this is yogurt based curry that’s beautifully spiced yet mild
enough for the whole family. Serve with steamed coconut rice to soak up all the delicious sauce.

1.6 Sales Literature

JCS will start with some basic self-generated literature to establish initial positioning:

Logo and theme - A national catalog sales paper goods company has a wonderful line of blank
papers with a Coffee and pastry theme that will serve as the "look" for BLS. A graphic artist
friend of the owner has already commenced work on a matching logo.

Stationery - The theme paper is available in various formats for use as company stationery.
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Brochure - Likewise, pre-printed paper is available, along with software templates for generating
brochures

Web Presence - Eventually a website will be developed as an "electronic brochure" as well as a

resource site for the owner's established client base.

1.7 Financial Considerations

JCS expects to raise 200000 of its own capital, and to borrow 200000 guaranteed by the Equity
bank as a 3-year loan. This provides the bulk of the current financing required. JCS anticipates
sales of about 83,017 from middle income clients and 95,422 from upper income clients, in the
first year, 170,992 and 196,543 in the second year, and 183,774 and 211,234 in the third year of
the plan. JCS should break even by the fourth month of its operation as it steadily increases its
sales. Profits are expected to start rising from the second year.

1.8.1 Entry strategy/plan

Mombasa’s food market is competitive that’s why a lot needs to be invested in the entry strategy.
Some of the strategies to be employed is start with offering low prices then start increasing them
slowly until they equal market prices.

To sell at half the prices for the first week and have periodic promotions offering trade discounts.

1.8.2 Growth strategy/plan

Growth strategies to employ will be spending heavily on social media advertising through the
use of social media influencers. Participation in social programs like orphan sponsorship and
environmental cleaning will boost our image and increase our clientele in the long run.

1.9 MARKETING PLAN

1.9.1 Market Analysis Summary

The Mombasa catering market is very intriguing.  There are several caters that offer services that
are quite similar to each other in terms of price and menu options.  For some arcane reasons,
there has been little demand by consumers to get caters to innovate their menu.  JCS will occupy
a niche in the food catering market that offers new, creative menu items, broadening people's

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conception of Swahili food.  This market consists of two target segments that are differentiated
by household income.

Market
Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Growth
Customers

Middle-class 8% 120,547 130,191 140,606 151,854 164,002 8.00%

customers

Upper-class 9% 80,457 87,698 95,591 104,194 113,571 9.00%

customers

Other 0% 0 0 0 0 0 0.00%

Total 8.40% 201,004 217,889 236,197 256,048 277,573 8.40%

1.9.2 Industry Analysis

Due to regulatory constraints, the wholesale and retail food business in Mombasa is comprised of
many independent participants. Chain stores are not allowed. No change is seen in this structure
for the foreseeable future, although some changes are afoot in Internet-driven distribution
operations, particularly for wholesalers.

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1.9.3 Market Segmentation

JCS focuses on the middle- and upper-income markets and events

Upper class kosher clients. This group has intertwined kosher values throughout their lives and is
willing to spend whatever it takes to throw a high-end kosher dinner function.  Typically, this
group is characterized by a wealthy one-income family where the male works and the female
does not.  The female of the household typically thoroughly enjoys the planning of these events

1.9. Middle class clients

Middle class Swahili food clients. This group of people does not have huge amounts of
disposable income, recognizes that it is costly to sponsor a Swahili dinner party, and is willing to
incur the expenses, but will try to minimize them

1.9.6 Upper class clients

Upper class food clients. This group has intertwined Swahili values throughout their lives and is
willing to spend whatever it takes to throw a high-end Swahili dinner function.  Typically, this
group is characterized by a wealthy one-income family where the male works and the female
does not.  The female of the household typically thoroughly enjoys the planning of these events

1.9.7 Events

Both social and corporate events accounts to a significant amount of revenue to be specific 12
percent.

1.9.9 Strategy implementation Summary

JCS will gradually gain market share in the Swahili food catering market by leveraging its
competitive edges. These edges are superior attention to detail and innovative nouveau cuisine
Swahili meals. The edges that JCS will leverage are areas that have been ignored in this market
for some time now. These competitive edges coupled with a targeted advertising campaign and
networking will be JCS’s game plan for increasing their market share.

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2.0 Competitors

The business will contend the market with;

County connections catering

Riverside catering services

Aisha catering services.

2.1.1 Marketing strategy

The marketing strategy will be based on developing visibility among Mombasa’s Swahili food
community.  This will be accomplished through two ways.

2.1.2 Competitive Edge

Janet catering's competitive edge is its attention to servicing customers and inventive approach to
swahili cuisine. JCSs customer attention differentiates them in the world of Swahili dishes
catering which is dominated by several businesses that have plenty of demand.  The consequence
of market demand is a decreased pressure to accommodate customers. JCS is approaching the
market as if there was significant competition between the different service providers.  By
making customer satisfaction a priority, over time, local customers will come to appreciate the
attention that their needs are given and form a long lasting relationship with Janet Catering.

JCS's other competitive edge is their nouveau cuisine approach to Swahili food. Traditionally,
Swahili food has remained stable and unimaginative for a long time.  Most people believe that
there are large compromises that must be made when serving Swahili dishes. These compromises
need not be made however, and JCS is changing these misperceptions.  Just because there are
strict rules regarding the types of foods that may be used and the way it must be prepared does
not eliminate creativity.  JCS is taking their knowledge of nouveau cuisine and creating
inventive, colorful, and delicious Swahili dishes alternatives.

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2.1.3 Strategy Pyramid

Strategy 1 - Networking & Referrals - Using existing contacts and clients to build a larger
network of potential clients.

Strategy 2 - Web promotion - Using a web page to showcase the owner's skills and knowledge,
providing an "electronic brochure" as well as useful technical information free of charge.

Strategy 3 - Advertising - Traditional methods such as Yellow Page ads, newspaper classified
and display ads, local television cable access advertisements.

Strategy 4 - Non-traditional - Creative and unique advertising such as door hangers, bumper
stickers, etc.

2.1.4 Pricing Strategy

JCS will adopt a price matching strategy rather than entry pricing. A survey of local liquor
businesses revealed the following:

All our products will have a price that is at least 1 percent less of what our competitors are
setting at to lure customers.

2.1. Promotion Strategy

The primary promotion strategy for JCS will be directly in line with the strategy pyramids
mentioned previously. The lead strategy will be to focus on cultivating existing relationships,
using known networking techniques to develop referrals and new customer leads. Added to this
will be a blend of web based marketing and traditional public relations and media marketing. The
ultimate promotion strategy, however, will be in guaranteeing customer satisfaction: happy
customers will generate repeat and new business.

2.1.6 Sales Strategy

JCS's sales strategy will use a combination of superior customer attention and a comprehensive
report of dishes for the menu to turn information seekers into customers.  Janet recognizes when
a prospective customer calls to get information about JCS, it is her main opportunity to turn them
into a customer.  She will do this by spending as much time on the phone as necessary. 

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Another benefit that Janet will leverage to develop sales is her comprehensive menu.  In addition
to all of the traditional Swahili dishes, Janet will offer many innovative nouveau cuisine Swahili
items that she has developed over her years spent in the food industry.  An innovative available
menu should be seen as a large benefit.  There is no intuitive or logical reason that people
who adhere to kosher are any less adventurous when it comes to food other than the fact that they
have been raised that way.

. 2.1.7 Sales forecast

The first month will be used to set up the kitchen and office.  There will be no sales activity
during the first month. The second month will see a few catering jobs, but still will not be a
significant source of income. Months three and four will see a steady increase in sales. Word will
have gotten out from the advertising as well as networking that JCS is the new Swahili caterer in
town and offers a very high-quality service. Throughout the year it is forecasted that sales will
incrementally grow in size until profitability is reached toward the end of year one.

Table: Sales Forecast

Sales Forecast

Year 1 Year 2 Year 3

Sales

Middle class 83,017 170,992 183,774

Upper class 95,422 196,543 211,234

Total Sales 178,439 367,535 395,008

Direct Cost of Sales Year 1 Year 2 Year 3

Middle class 24,905 51,298 55,132

Upper class 28,627 58,963 63,370

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 Subtotal Direct Cost of Sales 53,532 110,261 118,502

3.0 ORGANIZATION PLAN

3.1.1 Management summary

Janet, the founder and owner received her Bachelor of Arts from the University of Nairobi. 
After college, she went to work in the restaurant industry because it was a good source of
money.  While serving at an upscale restaurant in Nairobi, she befriended one of the chefs there
who began to teach her cooking techniques.  She began to find this instruction very interesting
and enjoyable.  After six months of this tutoring, she decided that she wanted to remain in the
restaurant industry, but wanted to learn the skills needed to be a chef.  She decided to enter the
Mombasa chefs’ school, a well-regarded training school for chefs.  She completed the one year
program and graduated near the top of her class. 

With this education, she went to work as a chef at one of the nicer Swahili dishes restaurants in
Mombasa.  She thoroughly enjoyed the five years spent as head chef, but she longed to work for
herself, running her own business.  She thought she would appreciate the ability to set her own
hours, to be her own boss which compelled her to want to open her own catering agency.

3.1.1 Personnel Plan

Besides utilizing Janet’s skills full time, JCS will require the following personnel:

Swahili dishes expert: a part-time position where he/she serves as (supervisor) to inspect and
confirm that all of the ingredients and preparation follow the rules of kashrut.

Servers: two will be hired.  The servers will be the people who serve the food at the events as
well as clear the plates and help with set up and take down of the event.  In the event of a large
party, the back end kitchen people will be trained to help out with serving.

Cooks: two will be hired to prepare the dishes that Susan has developed.

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Back kitchen help: these two people will be used to help clean up in the kitchen as well as assist
at functions.

Personnel Plan

Year 1 Year 2 Year 3

Susan 36,000 36,000 40,000

expert 11,000 12,000 12,000

Cook 30,800 33,600 33,600

Cook 22,400 33,600 33,600

Server 9,240 10,800 10,800

Server 6,720 10,800 10,800

Backend kitchen helper 9,240 10,800 10,800

Backend kitchen helper 6,720 10,800 10,800

Total People 8 8 8

Total Payroll 132,120 158,400 162,400

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4.0 FINANCIAL PLAN

Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales 178,439 367,535 395,008

Subtotal Cash from Operations 178,439 367,535 395,008

Additional Cash Received

Subtotal Cash Received 178,439 367,535 395,008

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending 132,120 158,400 162,400

Bill Payments 75,198 160,615 175,363

Subtotal Spent on Operations 207,318 319,015 337,763

Subtotal Cash Spent 207,318 319,015 337,763

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 Net Cash Flow (28,879) 48,521 57,245

Cash Balance 7,821 56,342 113,586

Table: Profit and Loss

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Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales 178,439 367,535 395,008

Direct Cost of Sales 53,532 110,261 118,502

Total Cost of Sales $53,532 $110,261 $118,502

Gross Margin 124,907 257,275 276,505

Gross Margin % 70.00% 70.00% 70.00%

Expenses

Payroll 132,120 158,400 162,400

Sales and Marketing and Other 1,800 1,600 1,500

Expenses

Depreciation 6,504 6,504 6,504

Utilities 600 600 600

Insurance/ licenses 1,800 1,800 1,800

Rent 8,400 8,400 8,400

Payroll Taxes 19,818 23,760 24,360

Total Operating Expenses 171,042 201,064 205,564

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 Profit Before Interest and Taxes (46,135) 56,211 70,941

EBITDA (39,631) 62,715 77,445

Taxes Incurred 0 16,863 21,282

Net Profit (46,135) 39,348 49,659

Net Profit/Sales -25.85% 10.71% 12.57%

Projected Balance Sheet

The following table will indicate the projected balance sheet.

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Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash 7,821 56,342 113,586

Total Current Assets 7,821 56,342 113,586

Long-term Assets

Long-term Assets 32,500 32,500 32,500

Accumulated Depreciation 6,504 13,008 19,512

Total Long-term Assets 25,996 19,492 12,988

Total Assets 33,817 75,834 126,574

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable 10,752 13,421 14,502

Subtotal Current Liabilities 10,752 13,421 14,502

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Total Liabilities 10,752 13,421 14,502

Paid-in Capital 70,000 70,000 70,000

Retained Earnings (800) (46,935) (7,587)

Earnings (46,135) 39,348 49,659

Total Capital 23,065 62,413 112,072

Total Liabilities and Capital 33,817 75,834 126,574

Net Worth 23,065 62,413 112,072

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