Business plan

By

Executive Summary
The purpose of this business plan is to secure open Subway franchise in Southall, London.

The owner of the company is willing to invest £200,000 to secure the funding for inventory,

and early operations.

The franchiser, "Subway." is one of the fastest growing franchises in United Kingdom. The

chain will be positioned somewhere between traditional fast food restaurants, and sit-

down restaurants. This segment of the market is attuned to the health benefits of their

eating habits, are more conscious of their buying habits than the general population, and

more importantly, they have higher incomes and are willing to pay more for a better Healthy

fast food choice. The prime aim of the business is to focus upon the freshness and

customer satisfaction, which creates an exceptional Subway experience.

To succeed with our goal, and to encourage a healthy lifestyle, we will sponsor local

sporting events, and give 3% of profits to local charities. We will build roots into the

community. We will also market our products with local businesses, the famous

Shakespearean Festival, to local hotels, and offer catering services through local party

supply stores and through close ties to local hotel managers and executives. Our goal will

be to build value for our constituents, ourselves, our employees, our customers, and the

community.

Details of owner
Name: ===========

Position/main responsibilities: Director

Experience and knowledge of fast food industry: Expert

Key skills brought to the business: Critical Thinking, Persuasion and Effective

Communication

Business experience and any training undertaken: Five years Experience in the Fast

food Industries.

Academic/professional qualifications: Master of Business Administration in marketing

Most recent salary: £1, 2000.00 per year

Business Overview

Objectives

My first objective is to open the Franchise restaurant four months from the day that my site
is confirmed by the realtor. My site was confirmed in January,2013, therefore our goal is to
be up and running by June,2013. The P&L and Balance Sheet all begin in June. Start-up
costs between will be found in the Start-up Summary Section. The Business will turn a profit
by the beginning of our second fiscal year of operations. Repeat customers will constitute
70% of our overall business by the end of year one. We will track customer habits and
loyalty through a local marketing research firm, and publish the results of these findings to
our employees once a quarter.

Mission

Mission is to bring to market the tastiest and healthiest fast food in Southall, at a slight cost
premium over other fast food restaurants. The high standards of quality and
cleanliness will establish business reputation as the cleanest fast food restaurant in
Southall. The community is as important to us as making a profit. This company is founded
on the concept that good works and good deeds not only serve the needs of the community,
but will also keep the company healthy and committed to the success of its customers.

Keys to Success

The most important key to success is our location. It is very important that our location live
up to our expectations, and is convenient to as many potential customers as possible.
Another key to success lies with the ability to execute plan. If we neglect one or more
aspects of our plan, whether that is our numbers, our employees, our cleaning and food
standards, or our commitment to customers, we will not succeed and thrive.

Company Information

Company Summary

The Subway brand is the largest specialist sandwich provider in the UK & Ireland, with more
than 1,500 stores. Worldwide, the SUBWAY® brand has more than 38,000 stores in 100
countries. Stores offer customers a delicious range of Subs made right in front of them on
freshly baked bread - just the way they want it. The Subway franchisees benefit from
operating in a tried and tested system with great training and a solid support structure with
aspects such as site selection, leasing, purchasing, marketing and more.
The Subway brand's franchise system has widespread appeal. The low investment, simple
operation and unparalleled support make it an attractive proposition for entrepreneurs
across the world. The company provides the convenience of fast food with rapid response
times, affordability, as well as carry-out and home meal replacement options.

Start-up Summary

Graphical presentation

Business Strategy

Strategy

Our prime strategy is to focus on our customer experience. Our success hinges on whether
customers receive what we promise them, and are pleased enough to come back for more.
Our KISS (Keep it Simple & Smart) approach will be successful only if we don't distract
ourselves from the core business of making good sub fast, and of treating the customers as
if they are special. As with any business model in the new millennium, we must adapt our
strategy to the customer and market trends, while maintaining consistency of brand and
message. This is a 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 it's franchises.

Value Proposition

Our value proposition is that we offer high-quality, healthy fast food at a reasonable price.
The business facilities are clean and our food is tastier than that of our competitors. The
ambiance of our facilities will contribute to customers' desire to eat their meals in a
comfortable, healthy environment.

Competitive Edge

We have a competitive edge in regards to the overall quality and differentiation of our
products, and in the cleanliness and ambiance of our seating area. Our sandwiches are all
of the finest quality, and have been refined through taste-tests sponsored by The Sub
way Corporate. We will differentiate our food from our competitors in regards to taste,
quality of bread and contents, attentiveness to customers, and overall experience. We gain
from their conversion of burger eaters to sandwich eaters, but alternately prove that we are
more responsive to customers and offer better fare than other franchises.

Strategic Alliances

The fast-food business is based largely on the impulsive choice of consumers. Many people
buy their business lunch, lunch, or family dinners at a fast food restaurant, and those fast
food restaurants offer not necessarily the best selection, but the most reliable menu and the
fastest order completion time. Customers will try other fast food restaurants, and shop
around, but the majority of their fast food purchases are made through one retailer. Our goal
is to capture those customers, and to build loyalty to the product through purchase punch
cards, consistent daily specials, and a direct mail list.

Marketing Strategy

Marketing
Our Marketing Strategy is to reach the largest amount of tourists residents, and students for
the least amount of money.

Our strategy will focus on three solid points:

To develop customer loyalty

To extend the franchise brand locally.

Develop local word-of-mouth advertising (buzz).

Pricing Strategy

Our pricing strategy is different for different customers. Prices to retail customers will be
fixed by the chairs, and based on a relative cost of living indicator. Retail prices will be
competitive at about £6 for the average meal. This is about 30% above McDonald's and
Burger King prices, Customers are simply willing to pay more for healthy, flavorful food
served in a clean, comfortable environment.

Promotion Strategy The chairs will promote our products on the national level. In order to
reach our local customers, and build loyalty, we will offer special mid-day promotions,
sponsor local community events, advertise in the local classified paper, and our President
will become a leading figure and spokesman in the community.

Distribution Strategy

We plan to distribute our products direct to customers, without the use of a separate
channel of distributors.

Sales Strategy

Our sales strategy will be to reach the largest amount of Jackson county residents 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 programs. The indistinguishable handles a lot of the
national and regional marketing, and we just pay our fee to have it done. Our flexibility will
lie in our ability to push the boundaries of freedom the indistinguishable has given us, and to
take advantage of opportunities to differentiate ourselves on sales by sale level.

Personnel Plan

The human resource management is considered to be an important part in every

organisation. In context of Subway franchise it is essential for the company to recruit and
develop skilled workforce to serve the customers in the best possible way. In the initial
stage the business will employ three time employees working 20 hours per week at 7 pound
per hour. it is important for fast food outlet to recruit and develop skilful work force in its
initial stage to serve the customers in an efficient manners by operating the business in an
efficient manner. The business owned and managed by Sawkat. He is a business graduate
from Cardiff Metropolitan University. As part career development he served for a well-known
car fast food as Shift manager for the last 5 years. Therefore it can be observed that the
owner of the business has the skills and expertise in the area of business. In addition to it is
also important for the business to establish a customer friendly environment that when any
hands to retain the existing customers and to bring new customer group. Therefore the
business has future plan to provide training and development opportunity for the employees.
As a result it would develop good organisational skills among the workforce to serve the
customers and to attend the organisational objective of the business.

Payroll plan

Year 1 Year 2 Year 3 Year 4 Year 5

Store Manager £26,000 £26,000 £26,000 £26,000 £26,000

Part-time employee £12500 £12500 £12500 £12500 £12500

Part-time employee £12500 £12500 £12500 £12500 £12500

Part-time employee £12500 £12500 £12500 £12500 £12500

Financial Plan

The financial part is considered to be an important determinant during the establishment of

new franchise business proposal. The projected financial plan will enhance the company to
develop and expand its business. At present in UK the fast food industries are in a
competitive position. Therefore it is important for subway to focus upon the estimated
financial plan to establish itself in the leading position.

Projected cash flow statement (Appendix A)

The projected cash flow statement indicates the overall cash inflow in ABC car rental
agency during the next 3 years. It is considered as the inflow of cash in the business. On
the other hand the cash spending and bill payments are the projected cash out flows of the
business.

Projected, profit and loss account (Appendix B)

The prime objective of profit and loss account is to focus upon the overall income and
expenditure of the business. In this stage in context of business the profit and loss account
demonstrates the income of the company in form of sales revenue.

Projected balance sheet: (Appendix C)

The projected balance sheet reflects the overall financial condition and performance of the
business. From the balance sheet of business it is observed that the company is reflecting a
favourable financial position from the start up of the business.
 Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales
£76818 £186100 £370000

Subtotal Cash from Operations

£76818 £186100 £370000

Additional Cash Received

Sales Tax £0 £0 £0

New Current Borrowing £0 £0 £0

New Other Liabilities (interest-free) £0 £0 £0

New Long-term Liabilities £0 £0 £0

Sales of Other Current Assets £0 £0 £0

Sales of Long-term Assets £0 £0 £0

New Investment Received £0 £0 £0

Subtotal Cash Received

£76818 £186100 £370000

Expenditures Year 1 Year 2 Year 3

 Cash flow Statement

Projected, profit and loss account (Appendix B)

 Year 1 Year 2 Year 3
Sales £76818 £186100 £370000
Direct Cost of Sales £20653 £41300 £82600
Other Costs of Sales £0 £0 £0
Total Cost of Sales £20653 £41300 £82600

Gross Margin £56255 £144800 £287400

Expenses
Payroll £63500 £63500 £63500
Marketing/Promotion £10,000 £10,000 £10,000
Depreciation £0 £0 £0
Rent £30,000 £30,000 £30,000
Utilities £2,550 £2,550 £2,550
Total Operating
£106050 £106050 £106050
Expenses

Profit Before Interest

(£49795) £38750 £181350
and Taxes
EBITDA (£49795)) 185913 617326
Interest Expense £0 £0 £0
Taxes Incurred £0 £0 £0
 Projected balance sheet: (Appendix C)

Assets

Current Assets
Cash £157705 £225750 £355350
Other Current
£0 £0 £0
Assets
Total Current
£157705 £225750 £355350
Assets
Long-term Assets
Long-term Assets £0 £0 £0
Accumulated
£0 £0 £0
Depreciation
Total Long-term
£0 £0 £0
Assets
Total Assets £22000 £190000 £210000
Liabilities and
Year 1 Year 2 Year 3
Capital

Current Liabilities
Accounts Payable £9500 11000 £16000
Current Borrowing £0 £0 £0
Other Current
£0 £0 £0
Liabilities
Subtotal Current
£9500 11000 £16000
Liabilities

Long-term
£0 £0 £0
Liabilities
Total Liabilities £9500 £11000 £16000

Paid-in Capital £200,000 £200,000 £200000

Retained Earnings (£20000) (£35000) (£42000)
Earnings (£49795) £38750 £181350
Total Capital £148205 £214750 £339350
Total Liabilities
£157705 £225750 £355350
and Capital