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					Type of business
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                                   Miracosta College




                             CSIT 120 Group Project

                                     SDSU Group




      Nancy Huynh, Tina Collurafici, Jessica Rimorin, Josh Sullivan, Elliot Schulte


                                   CSIT 120: Online


                                    Margaret Mellot


                                     May 13, 2012
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Executive Summary
   This restaurant business plan is for Aztec Group, a new small-sized restaurant located in
   Carlsbad, California. Aztec Group's emphasis will be a casual California cuisine. The
   emphasis on California ingredients is based on Aztec Group's dedication to maintain
   authentic California culture.

J.Ten is a fast-food concept restaurant serving seasonal California fare in a casual, upscale
venue. Located in the Del Mar Highlands Town Center located east of the I-5, I-805, and I-56
corridors, it is in a prime location selling to the affluent communities of Del Mar, Rancho Santa
Fe, Carmel Valley and Solana Beach. The retail site offers a wide selection of dining, shopping,
and entertainment choices drawing high foot traffic daily. With high-end anchors like celebrity
chef Brian Malarky’s Burlap, Cinépolis Luxury Cinemas, and Jimbos Naturally, Del Mar
Highlands Town Center is a destination shopping center. From local residents to tourists, a wide
range of consumers come to find something better than the ordinary.
Located in the northwest corner at Del Mar Heights Rd. and El Camino Real, not only will J.Ten
share in the adjacent Burlap’s popular foot traffic, but it will have high visibility from the road.
Kilroy Realty, Inc. has proposed large construction projects, a hotel and office building, which
are expected to increase traffic along Del Mar Heights Rd. by an additional 11,400 additional
daily trips, if the project is passed. Regardless whether the construction project is passed, the
future prospects of Carmel Valley are upward growth.


Objectives
   1. Sales of $50K the first year, more than 100K the second.
   2. Personnel costs less than $40K the first year, less than $75K the second year.
   3. Profitable in year two, better than 7.5% profits on sales by year three.

Mission
   Aztec Group is a great place to eat, with excellent, interesting food that is also very
   good for the people to eat. “We want fair profit for the owners, and a rewarding place to
   work for the employees.”i

Keys to Success


   Services
   Aztec Group offers greater San Diego, an affordable place to have great food in a cozy
   environment. Aztec Group forecasts that the majority of purchases will be from popular
   California cuisine. Popular recipes will be used to provide the customers with delightful
   experience. Our Chef will emphasize healthy dishes, “recognizing the trend within the
   restaurant industry for the demand for healthy cuisine.”i
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  Customers
  Aztec Group believes their market will be targeted to young happy customers which are
  growing at an annual rate of 8% with 150,000 potential customers.

  Management
  Aztec Group has assembled a strong management team. The management team will
  consist of Nancy Huynh, Tina Collurafici, Elliot Shulte, Jessica Rimorin, and Josh
  Sullivan. Nancy Huynh will be the general manager. Elliot Shulte will be responsible for
  all of the finance and accounting functions. Jessica Rimorin will be responsible for the
  back-end production of the venture. Tina Collurafici will be responsible for Information
  Technologies.

  Aztec Group is committed to financial success which will be achieved through strict
  financial controls. Success will be ensured by offering a high-quality service and
  extremely clean environment.

  The market and financial analyses indicate that with a start-up expenditure of
  $141,000, Aztec Group can generate over $365,000 in sales by year one, $565,000 in
  sales by the end of year two and produce net profits of over 7.5% on sales by the end of
  year three. Profitability will be reached by year two. Need to update with correct
  numbers.

  Chart: Highlights
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Company Summary
Aztec Group is a single-unit, small-sized restaurant. We focus on great food and a fair price.
The restaurant will be located in a prime Carlsbad neighborhood. Most important to us is
our customer’s satisfaction, by which we believe will be achieved by offering high-quality
service and great tasting food.

The concept of J.Ten is to provide simple, yet exciting fresh plates that exude fresh, local
California cuisine. Bringing as much farm-to-table locally grown organic produce will give the
educated health conscious Del Mar community a dining experience not found at home or
elsewhere.

With lush seascape interiors reflecting the beach community it resides in, J.Ten will offer diners
the merging of familiar Del Mar with the fast-paced energy of Orange County.
The restaurant will feature an open kitchen as well as a 360 degree open bar seating up to 25
persons; both features enhancing a see-and-be seen venue. Upon entering the restaurant,
customers will be presented with the sound of soft falling water cascading down the entry wall.
The effect is to immediately give customers upon entering another environment; they step inside
to a relaxed dining experience catered to the socially active. Lighting will simulate the radiant
glow the setting sun affords upon complexions. As evening arrives, the lighting changes to
moonlight, setting the mood for late diners looking for night caps and small bites.

J.Ten brings sexy beach glamour to the farm fresh table surrounded by luxurious settings.

Our restaurant is located just 2 blocks from the beach, where locals and tourists walk right by
daily and can come in for a quick bite or sit and relax with a longer meal. Our cooking
techniques and ingredients will be innovative and therefore provide a twist on this simple, but
savory food group. Our menu is quiet simple: One type of salad and soup, two different entrees,
two different kinds of appetizers, two different kinds of desserts the our customers can indulge
in, and two different kinds of beverages that will guarantee to quench one's thirst (available in
cans and/or bottles).
The Contents: In our Garden Salad, fresh lettuce, ripe tomatoes and other delicious yet healthy
vegetables served with whatever type of salad dressing tickles your fancy. We serve chicken
noodle soup that, in our opinion, is the best on the west coast, considering we have our own
chicken broth that we make that beats the other competitors. Our appetizers consist of
Mozzarella sticks, and our homemade tortilla chips with our homemade guacamole dip that is to
die for. Next are our entrees. We serve a 1/2 pound, never-frozen 100% beef patty, topped with
your juicy bacon and your choice of all American cheddar cheese or jalapeno and jack. This
burger also comes with our regular fries, or one can spice it up with our seasoned waffle fries at
the same cost. The second delicious entree is our spicy buffalo wings that will put a kick in your
mouth. Our chicken is also never frozen, just like our meat, and because of this, the consumer
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can taste the freshness and the quality in our burgers and even taste the greatness of the chicken
passed the spiciness of our Buffalo wings sauce. This entree is also served with your choice of
steamed veggies or cold cut veggies. Our dessert menu has got to be looked at before leaving the
restaurant. We serve our Molten Lava Cake, which is chocolate cake with hot fudge being the
innards of the cake, topped off with more hot fudge on top of the cake. Our second treat for
dessert is our Strawberry Peach Parfait. We grow, pick, slice, and serve our strawberries for this
dessert delight, and you will taste the quality in our delicious, fresh strawberries. This is a nice
and sweet way to end dinner. The customers can either pick from a good old fashioned Coca
Cola in a can or a "take-me-back-to-the-50's" glass bottle, and if they don't feel like soda, they
can cool down with a house-made ice cold Raspberry Iced Tea. Our products are competitive
with other restaurants because we do not freeze our meat. Our vegetables and fruits that we serve
to the Californians and out of state residents are fresh and cleaned every day because we care
about the health of others, and especially want to make an impression on their taste buds. Our
storage facilities for our food is close by so when in need of more supplies, we do not have to
drive a long distance in order get restocked, making all of our products fresh on delivery. A clean
kitchen will be a must in our restaurant. Weekly inspections of cleanliness will be performed by
staff of the Environmental Health Section of the Health Department, ensuring that everything we
cook and the vegetables and fruits we prepare for the customers are being sliced and diced and
cooked on clean tables and grills.


Company ownership
   The restaurant will start out as a simple partnership, owned by its founders.

Start-up Summary
   We have found the location and secured the lease for $2,000 per month. We will be able
   to set up shop in time to begin turning back a profit by the end of month eleven and be
   profitable in the second year. The place is already equipped as a restaurant so we plan
   to come up with a total of $40,000 in capital, plus a $100,000 SBA-guaranteed loan, to
   start up the company.

Table: Start-up Funding

   Start-up Funding
   Start-up Expenses to Fund                                           $3,000
   Start-up Assets to Fund                                           $138,000
   Total Funding Required                                            $141,000

   Assets
   Non-cash Assets from Start-up                                      $50,000
   Cash Requirements from Start-up                                    $88,000
   Additional Cash Raised                                                  $0
   Cash Balance on Starting Date                                      $88,000
   Total Assets                                                      $138,000
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  Liabilities and Capital


  Liabilities
  Current Borrowing                                 $0
  Long-term Liabilities                       $100,000
  Accounts Payable (Outstanding Bills)          $1,000
  Other Current Liabilities (interest-free)         $0
  Total Liabilities                           $101,000

  Capital


  Planned Investment
  Investor 1                                   $25,000
  Investor 2                                   $15,000
  Additional Investment Requirement                 $0
  Total Planned Investment                     $40,000

  Loss at Start-up (Start-up Expenses)        ($3,000)
  Total Capital                               $37,000



  Total Capital and Liabilities               $138,000

  Total Funding                               $141,000




  Chart: Start-up
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Table: Start-up

   Start-up


   Requirements


   Start-up Expenses
   Legal                                                            $2,000
   Stationery etc.                                                  $1,000
   Other                                                            $1,000
   Total Start-up Expenses                                          $3,000

   Start-up Assets
   Cash Required                                                   $88,000
   Other Current Assets                                            $50,000
   Long-term Assets                                                     $0
   Total Assets                                                   $138,000

   Total Requirements                                             $141,000


Company locations


Product
Product description
   The Menu
   The menu is going to be extremely simple but changing every day. We will keep a small
   group of constants on the menu and then feature a chef's recommendation that we plan
   to have 85% of meals ordering. This will help us to reduce waste and plan ingredients
   and purchasing.

   Organic Ingredients
   The organic ingredient element will allow us to price to the extremely wealthy Internet
   entrepreneurs who are looking to spend an exorbitant amount of money to have peace
   of mind that their money is still coming back to themselves. We will be extremely
   ecologically conscious as well, and spread this across our literature. Eating at Aztec
   Group will feel like having contributed to the Sierra Club and drinking fresh squeezed
   orange juice.

   Ethnic Ingredients and Recipes
   Our chef will have great latitude in designing and producing menu offerings from many
   different world cultures. We will endeavor to procure all the traditional, authentic
   ingredients necessary to hold true to these varied and interesting cultural recipes.

   Interior Accoutrements
   People need to keep life interesting, and our artwork will reflect the world influences that
   are core to the attitude of the Aztec Group chef.
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Competitive Comparison
Sales Literature
Sourcing
Sales Program
Research Approach/Online Tools
Trying to maintain a low start-up cost, our main methods of promotion will be word of mouth
and social networking, along with some advertisements in local publications, and in some local
known blogs in the area. Social Networking Utilization of the many social networking sites on
the World Wide Web will be instrumental in gaining and maintaining a following of our
restaurant. There are only benefits coming out of networking like this because there are millions
of users, but there is no cost to be paid. Social networking will allow us to stay up-to-date with
our customers and on our products, current and future locations, and also our specials that we
send out to the public. Customers can even send feedback of the food and the experience.
Customers can find us at the following social networking sites:
     Facebook
     Myspace
     Twitter
     YouTube
We will be using Excel for our spreadsheets and to keep track of the amount of our products and
the firms that we do business with. We will be using the "Aldelofor Restaurants Software"
Features rich and easy to use, Aldelo will automate many of our restaurant management
functions. The comprehensive "Aldelo for Restaurants feature list functions as inventory, gift
cards, table management, customer loyalty, easy graphical layout and much more. We have
looked into the United States Bureau and have seen the ups and downs of the area and are in a
prime location where people are spending money at local restaurants and can afford to go out and
have a tasty meal. The intake of how much consumers are buying meat and chicken have come
into account and since those are our two famous entrees, we are glad to inform that chicken and
meat are rising in demand and we got it on the menu.

MIS Solutions
As this first restaurant will seat up to 85 persons, the POS system must be able to manage a host
of functions at any given time. The essential function is order taking and kitchen receiving. The
process of taking orders through check closing must be seamless with little room for error.
Management will help keep business functions running efficiently, but the POS system is the
backbone of the restaurant. Not only will it take different ordering functions, but it also must
integrate employee scheduling, inventory control, back office functions, recipe control and
finally a reservation and seating queue.
For Customer Relations Management, a database function is also desirable. Using Access from
Microsoft Office suites can accomplish this. However, setting up an online presense through
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social networking sites can also accomplish this will little to no cost except time. J.Ten will use
the popular Facebook, Twitter, and MySpace to bridge customer relations to the restaurant. We
will be offering monthly specials for those loyal followers and surprise deals. The restaurant will
also have its very own website detailing menu items, specials, and other interesting facts.
Customers can sign up their email to receive special offers and monthly newsletters on company
happenings. Having a blog from the website will enhance customer relations by relaying
important issues customers value.
There will be no need to outsource payroll functions. Payroll can be done in-house by one of
the owners, a licensed CPA, reducing overhead costs.

Future Products


Market Analysis Summary
   Because of the founders' connections within the very trendy area of Portland, we have
   an excellent feel for the area and its core group of customers. They will all share
   something alike, which is a feeling of being in the "in crowd" and having "gotten it" in
   life. Although the crew will be different and not connect with each other in each
   segment, each segment is complementary to the others. We do plan to raise menu rates
   as the restaurant gets more and more crowded, and to make sure we are charging a
   premium for the feeling of being in the "in crowd."



Market Segmentation
   The Lonely Rich
   Most of the lonely rich are tech workers these days, and most of those tech workers are
   Internet workers. Their life has become their website servers and code they write, and
   the people who help them to make the decisions in that world. They hang out with each
   other, but desperately want to get away from it and use the money they are racking up.
   Because this wealth has come fairly easily for them, it is particularly easy to separate
   them from their money again - they spend the most on drinks, appetizers and tips.

   Young Happy Couples
   The restaurant will have an atmosphere that encourages people to bring dates and to
   have couples arrive. It won't be awkward for others, and Aztec Group does want to be a
   social place where people meet each other and develop a network. These young couples
   are generally very successful but balanced and won't be spending as much on drinks.

   The Rich Hippies
   The rich hippies in Portland are a massive group with tremendous influence over the
   city's government and private enterprise. They wear tie-die but drive BMWs and crave
   the feeling of being in a social circle that is changing the world - even if in different ways
   than in their glory days. We will cater to their ecological ideology and contribute to
   charities to help them part with more of their money.
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   Dieting Women
   The organic food menu will always have a line of extremely delicious very low-fat meals.
   Aztec Group will have tables of women meeting like they do in shows like Sex and the
   City, to discuss all types of matters while feeling good about the food they eat.

   Chart: Market Analysis (Pie)




       Target Market Segmentation Strategy
Industry Analysis
       Trends
       Main Competitors
Market Analysis
Consumer spending has lagged from expected projections. The age group 35-44 is the greatest
spender averaging an annual $3,227 for food outside the home according the US. Bureau of
Labor (2010). This age group generally has established their careers and is enjoying a larger
income than their younger counterparts. They are also developing their families and enjoy the
occasional family outing. This is the primary target group for J.Ten.
Because our easy menu offers low cost healthy foods, it also appeals to a wide range of age
groups. For the youngsters where money is tight, it is an affordable eatery and hip place to hang
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out. For the older crowd, the classic easy to pick from menu is a kick back to the old days when
they still served coke in glass bottles.
The third segment group is targeted towards tourists. Like In-n-out or 5 Guys, we offer fresh
made to order food from an easy intuitive menu. But unlike these chains, we also offer chicken
on the menu. In 2011, a Zaggat national survey posted In-n-out and Chik-fil-A as the top 2
favorite fast food chains in service and quality. That has to say something about consumer
tastes; they like quality foods delivered at affordable low prices. With our prime tourist location
near the beach and downtown shopping, J.Ten is the better alternative to the national chains.
The rate of pay increases is not keeping up with inflation. Therefore, consumer buying power is
weakening. Because of this, consumers are more careful with their expenditures. When they
buy into something, it must be worth the expense. Fortunately, the city of Carlsbad
demographics show that the target age group 35-44 is dominant over others at 32%. The city is
also investing $100,000 for the Endless Summer Campaign to boost tourism in the area. The city
is also considering development and business incentives to increase economic development.
Future prospects for growth are inclined upwards.


Strategy & Implementation Strategy
   Our strategy is simple, we intend to succeed by giving people a combination of
   great,healthy, interesting food, and an environment that attracts "trendy" people like a
   magnet. Implementation isn't simple, but that's in the doing of it, not in the plan.



Competitive Advantage
   Our competitive edge is the menu, the chef, the environment, and the tie-in to what's
   trendy.

Requirements/features of MIS solutions
What we are looking for in MIS is a Point of Sale system that can encompass most of J.Ten’s
business processes. These include:
      Tip tracking
      Employee time record/Payroll
      Order entry
      Kitchen printing/receiving
      Check handling
      Recipe costing
      Menu management
      Inventory management
      Customer Relations Management (CRM)
      E-commerce
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         Back office functions

Cost consideration must be taken into account as well. These include:
         Installation fees
         Initial start-up costs
         License fees
         Monthly recurring usage fees
         Maintenance fees
         Replacement costs
         Paper costs (checks/receipts)
         Ink costs if any
         Buy or Lease options
         Depreciation expense

Other requirements are ease of use, intuitive design, dependability, durability, payment
processing times, and overall efficiency to increase J.Ten’s productivity.


Requirements Aldelo               Aloha     Ambur         Brink         Dell          Micros
Hardware

Software

Data

Procedures

People

Cost

Overall
Rating

Approach to gain information
In approaching how to determine the best MIS for J.Ten, we looked to Michael Porter’s five
forces model to define organizational strategy.
We first analyzed the industry structure determining competitive and bargaining power forces.
Competitive forces were deemed a medium risk as there are many substitutes for our food
products and few barriers to market entry. Bargaining forces of both suppliers and customers are
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weak since we already offer low cost and are determined to find the freshest products every day.
Overall, J.Ten must focus on its competitive forces and avoid increasing that risk and losing
market share.
Second, we defined our competitive strategy. The 4 factors: cost, differentiation, industry-wide
and focused. J.Ten is focused within a niche market. Although low prices are our company’s
goals, we cannot afford to offer the absolute lowest prices like our chain competitors do since
we lack leverage. Therefore, we must provide differentiation by offering better service within
our industry segment. J.Ten’s competitive strategy is focus-differentiation.
Next, we looked to the added value activities that make up our value chain. In keeping with
FIFO (first in-first out) concept, we strive to keep a lean business model. Although inventory is
always preferable to empty shelves, we look to Just-in-time inventory controls to order only that
which we need. This way, we can decrease overhead costs, and have better quality control
through high inventory turnover.

Different online tools used
To find the best Restaurant Point of Sale system for J.Ten, we went through a series of different
websites. We started off with a general search of the best industry systems. From that, we got a
feel of what industry experts preferred. However, most of these experts also deal in sales and
could have a margin of bias. So we moved on to user forums and searched for preferred POS
systems. We found that while each system offered similar functions, it was the hidden fees and
high start-up costs that turned people away from some systems. While laying down a good
infrastructure is important, the goodly costs can be extreme upwards of $25,000. Maintenance
issues were the number one concern. While most systems are reliable and durable, accidents
happen and a POS terminal down can literally stop business for the day. Recurring fees were
also of concern. Some systems offered low cost start-up only to charge monthly service fee for
using the software, even after buying the license. So within the breadth of the kind of segment
industry we are entering, we found the POS systems that were tried and true were the best
options. The trend is to go wireless and have cloud computing available, but as that is relatively
new technology, it’s best to stick with what has been proven to work and for its lower total end
cost.
We prefer Aldelo Pro Restaurant systems for their low one-time cost. For less than $4,000, a
complete system can be installed. There is integrated inventory management, recipe
management, employee time scheduler, and other relevant back of house functions. It’s intuitive
design can change to adapt to changing menus and environments. Further, customer information
can be inputted into the system via the database or Access. Since Aldelo operates on the
Windows platform, a user can easily switch from restaurant application to other applications with
a click of the button. A magnetic strip reader (MSR) can be installed to make credit transactions
process faster.

Marketing Strategy
      Pricing Strategy
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       Brand Challenges
       Marketing programs
Sales Strategy
   As the table shows, we intend to deliver sales of about $350K in the first year, and to
   double that by the third year of the plan.

   Chart: Sales Monthly




Table: Sales Forecast

   Sales Forecast
                                                       Year 1           Year 2           Year 3
   Unit Sales
   Meals                                               22,822           35,000           45,000
   Drinks                                              11,415           17,500           22,500
   Other                                                  240              500            1,000
   Total Unit Sales                                    34,477           53,000           68,500

   Unit Prices                                         Year 1           Year 2           Year 3
   Meals                                               $15.00           $15.00           $15.00
   Drinks                                               $2.00            $2.00            $2.00
   Other                                               $10.00           $10.00           $10.00

   Sales
   Meals                                             $342,330         $525,000         $675,000
   Drinks                                             $22,830          $35,000          $45,000
   Other                                               $2,400           $5,000          $10,000
   Total Sales                                       $367,560         $565,000         $730,000
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   Direct Unit Costs                                         Year 1            Year 2             Year 3
   Meals                                                      $2.00             $2.00              $2.00
   Drinks                                                     $0.50             $0.50              $0.50
   Other                                                      $1.00             $1.00              $1.00

   Direct Cost of Sales
   Meals                                                    $45,644           $70,000           $90,000
   Drinks                                                    $5,708            $8,750           $11,250
   Other                                                       $240              $500            $1,000
   Subtotal Direct Cost of Sales                            $51,592           $79,250          $102,250




Sales Forecast
Summary
The restaurant industry is one that provides a simple, but necessary service to its customers. A
restaurant owner uses the food, the service, and the atmosphere to craft a unique and enjoyable
experience for the guest. Whether it's the presentation of the dish, the knowledge of the staff, or
the actual layout of the restaurant itself, the owner is striving to project his or her vision to the
guest in hope that it will leave a positive and lasting impression. Our goal with this restaurant is
to bring an experience to the customer that they have never had before, with our great
atmosphere, our friendly staff, and our great tasting food. They can have the pleasure of eating
outside with the sun on their faces as they enjoy the ocean breeze because of our location that is
two blocks away from the beach. We have a simple but delicious menu, with fresh ingredients
that we take pride making sure it stays fresh until it enters the customers' mouths. We make
people happy with our food and quality service. The location is just such a great spot to have a
bite to eat and to enjoy the Californian sun. Our restaurant will make its mark on Southern
California and have people coming back and back again.


Web Plan Strategy
Website Marketing
Development Requirements


Financial Plan
   We expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteed
   by the SBA as a 10-year loan. This provides the bulk of the start-up financing required.



Start-up Funding
Break-Even Analysis
   Our break-even analysis is based on the average of the first-year numbers for total sales
   by meal served, total cost of sales, and all operating expenses. These are presented as
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   per-unit revenue, per-unit cost, and fixed costs. We realize that this is not really the
   same as fixed cost, but these conservative assumptions make for a better estimate of
   real risk.

Table: Break-even Analysis


   Break-even Analysis


   Monthly Units Break-even                               3,205
   Monthly Revenue Break-even                           $34,171

   Assumptions:
   Average Per-Unit Revenue                              $10.66
   Average Per-Unit Variable Cost                         $1.50
   Estimated Monthly Fixed Cost                         $29,375




   Chart: Break-even Analysis




Profit/Loss
   As the profit and loss table shows, we expect to become barely profitable in the second
   year of business, and to make an acceptable profit in the third year.
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   Chart: Profit Monthly




Table: Profit and Loss

   Pro Forma Profit and Loss
                                              Year 1      Year 2     Year 3
   Sales                                    $367,560    $565,000   $730,000
   Direct Cost of Sales                      $51,592     $79,250   $102,250
   Other                                          $0          $0         $0
   Total Cost of Sales                       $51,592     $79,250   $102,250

   Gross Margin                             $315,969    $485,750   $627,750
   Gross Margin %                            85.96%      85.97%     85.99%



   Expenses
   Payroll                                  $282,000    $357,000   $410,000
   Sales and Marketing and Other Expenses    $27,000     $35,830    $72,122
   Depreciation                                   $0          $0         $0
   Utilities                                  $1,200      $1,260     $1,323
   Payroll Taxes                             $42,300     $53,550    $61,500
   Other                                          $0          $0         $0

   Total Operating Expenses                 $352,500    $447,640   $544,945

   Profit Before Interest and Taxes         ($36,532)    $38,110    $82,806
   EBITDA                                   ($36,532)    $38,110    $82,806
    Interest Expense                           $9,673     $8,887     $7,637
    Taxes Incurred                                 $0     $7,306    $19,105
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs
   Net Profit                                     ($46,204)         $21,917          $56,063
   Net Profit/Sales                                -12.57%           3.88%            7.68%




Gross Margin Monthly
Cash Flow
   The cash flow projection shows that starting cost and provisions for ongoing expenses
   are adequate to meet our needs until the business itself generates its own cash flow
   sufficient to support operations.

Table: Cash Flow

   Pro Forma Cash Flow
                                                        Year 1         Year 2         Year 3
   Cash Received


   Cash from Operations
   Cash Sales                                        $367,560        $565,000       $730,000
   Subtotal Cash from Operations                     $367,560        $565,000       $730,000

   Additional Cash Received
   Sales Tax, VAT, HST/GST Received                        $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                            $367,560        $565,000       $730,000

   Expenditures                                         Year 1         Year 2         Year 3

   Expenditures from Operations
   Cash Spending                                     $282,000        $357,000       $410,000
   Bill Payments                                     $117,968        $185,584       $257,538
   Subtotal Spent on Operations                      $399,968        $542,584       $667,538

   Additional Cash Spent
   Sales Tax, VAT, HST/GST Paid Out                        $0              $0             $0
   Principal Repayment of Current Borrowing                $0              $0             $0
   Other Liabilities Principal Repayment                   $0              $0             $0
   Long-term Liabilities Principal Repayment           $6,133         $10,000        $15,000
   Purchase Other Current Assets                           $0              $0             $0
   Purchase Long-term Assets                               $0              $0             $0
   Dividends                                               $0              $0             $0
   Subtotal Cash Spent                               $406,101        $552,584       $682,538

   Net Cash Flow                                     ($38,541)        $12,416        $47,462
   Cash Balance                                        $49,459        $61,875       $109,337
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs



  Chart: Cash
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs


Appendix
Sales Forecast
              Meals          Drinks         Other
 Month
 1               5000             500            250       1
 Month                                                  0.98
 2               5750             575            288    0.96
 Month                                                  0.94
 3               7188             719            359
                                                        0.92
 Month
                                                         0.9
 4               9344             934            467
 Month                                                  0.88
 5              12147           1215             607    0.86
 Month                                                  0.84
 6              12268           1227             613    0.82
 Month                                                   0.8
 7              12391           1239             620
 Month
 8              12143           1214             607
 Month
 9              12508           1251             625
 Month
 10             13133           1313             657
 Month
 11             15103           1510             755
 Month
 12            15707            1571             785
              132681                                           11750

 Sales
 Forecast
              Year 1         Year 2         Year 3
 Unit Sales
 Meals           22,822         35,000         45,000
 Drinks          11,415         17,500         22,500
 Other                 240            500       1,000
 Total Unit      34,477         53,000         68,500
 Sales
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs
Unit Prices    Year 1         Year 2      Year 3
Meals                $15.00      $15.00      $15.00
Drinks                $2.00       $2.00       $2.00
Other                $10.00      $10.00      $10.00


Sales
Meals           $342,330       $525,000    $675,000
Drinks              $22,830     $35,000     $45,000
Other                $2,400      $5,000     $10,000
Total Sales     $367,560       $565,000    $730,000


Direct Unit    Year 1         Year 2      Year 3
Costs
Meals                 $2.00       $2.00       $2.00
Drinks                $0.50       $0.50       $0.50
Other                 $1.00       $1.00       $1.00


Direct Cost
of Sales
Meals               $45,644     $70,000     $90,000
Drinks               $5,708      $8,750     $11,250
Other                 $240         $500      $1,000

Subtotal            $51,592     $79,250    $102,250
Direct
Cost of
Sales



 Initial Restaurant Setup

        Item                                           Price
I. Building Purchase
II. Furniture
                                                          $
           Tables                                     3,788.50
                                                          $
           Chairs                                     5,280.00
                                                          $
         Shelves                                       195.00
III. Janitorial Supplies
           Mops                                          $
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs

                                    18.42
                                       $
      Brooms                        146.69
                                       $
      Buckets                       118.29
                                       $
      Cleaning Liquids/Powders      25.00
                                       $
      Paper Goods                   59.00
                                       $
      Trash Bags                    20.00
                                       $
      Trash Cans                    72.78
                                       $
        Commercial Sink            1,400.00
IV. Kitchen/Dining Room Supplies
                                     $
      Utensils                     951.69
                                     $
      Napkins                      79.96
                                     $
      Plates                       389.09
                                     $
      Mixing Bowls                 57.94
                                     $
      Baking Sheet                 13.19
                                     $
       Glasses                     227.97
V. Appliances
                                       $
      Walk in Refrigerators        4,385.00
                                       $
      Reach in Freezer             1,706.33
                                       $
      Range w/Grill                4,240.00
                                       $
      Deep Fryer                    577.98
                                       $
      Mixer                         387.00
                                       $
      Venitlation System           1,026.00
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs

                                            $
       Dishwasher                       3,700.00
                                            $
       Ice machine                      2,453.73
                                            $
       Soda Machine                     2,100.00
VI. Miscellaneous
                                            $
       Mats                              67.99
                                            $
       Lightbulbs                        363.00
                                            $
       Register paper                    35.98
                                            $
       Order pads                        99.90
                                            $
        Pens/Pencils                      8.20
VII. Decorations
                                           $
       Artwork                           200.00
                                           $
         Centerpieces                    300.00
VIII. Electronics
                                            $
       Cash Registers                   1,049.00
                                            $
       Stereo system                     299.99
                                            $
       Speakers (+installation)          300.00
                                            $
       Surveillance system               799.99

                                            $
                             Total:     36,943.61


   Menu Profitability Projection


                                      Portion Cost*   Menu Price   Food Cost   G
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs

I. Soup & Salad
                                                             $
    Garden Salad                $            0.79          3.99            20%
                                                             $
    Chicken Noodle Soup         $            1.25          4.49            28%
II. Appetizers
                                                             $
    Mozerella Sticks            $            1.99          4.99            40%
                                                             $
    Chips w/Guacamole Dip       $            0.49          2.99            16%
III. Entrees
    Bacon Cheeseburger                                       $
w/Fries                         $            3.00          7.49            40%
    Buffalo Wings w/veggies &                                $
dip                             $            3.25          8.99            36%
IV. Desserts
                                                             $
    Molten Lava Cake            $            1.50          3.49            43%
                                                             $
    Strawberry Peach Parfait    $            0.59          2.99            20%
V. Beverages
                                                             $
    Coca Cola                   $            0.49          1.99            25%
                                                             $
    Raspberry Iced Tea          $            0.49          1.99            25%




  Weekly Food Order Sheet

                                Maximum
Description:                    Needed              On hand       Need to Order          Unit P
I. Meat & Poutlry
                                                                                  $
     Ground Beef                    20 lbs             0             20 lbs       1.75
     Chicken Breast                 30 lbs             0             30 lbs       $
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs

                                                                   3.00
                                                                   $
    Bacon                 2 cases          0             2 case    15.00
II. Dairy
                                                                   $
    Eggs                  3 cases          0             3 cases   16.00
                                                                   $
    Vanilla Yogurt          5 lbs          0             5 lbs     8.00
                                                                   $
    Milk                   1 case          0             1 case    15.00
                                                                   $
    American Cheese         5 lbs          0             5 lbs     7.00
                                                                   $
    Mozerella Cheese       10 lbs          0            10 lbs     11.00
                                                                   $
    Parmesan Cheese         3 lbs          0             3 lbs     10.00
                                                                   $
    Ranch Dressing         1 case          0             1 case    8.00
                                                                   $
    Bleu Cheese            1 case          0             1 case    9.00
                                                                   $
    Butter                  5 lbs          0             5 lbs     5.00
III. Vegetables
                                                                   $
    Iceburg Lettuce        1 case          0             1 case    5.00
                                                                   $
    Roma Tomatoes          1 case          0             1 case    6.00
                                                                   $
    Carrots                1 case          0             1 case    5.00
                                                                   $
    Onions                 1 case          0             1 case    4.00
                                                                   $
    Celery                 1 case          0             1 case    5.00
                                                                   $
    Avocados              2 cases          0             2 cases   8.00
IV. Miscellaneous
    Breading              5 cases          0             5 cases   $
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs

                                                                   10.00
                                                                   $
    Croutons              2 cases          0             2 cases   6.00
                                                                   $
    Chips                 5 cases          0             5 cases   8.00
                                                                   $
    Egg Noodles           3 cases          0             3 cases   15.00
                                                                   $
    Burger Buns           5 cases          0             5 cases   16.00
                                                                   $
    Salt                  2 cases          0             2 cases   6.00
                                                                   $
    Pepper                2 cases          0             2 cases   4.00
                                                                   $
    Vegetable Broth        1 case          0             1 case    10.00
                                                                   $
    Chicken Broth          1 case          0             1 case    12.00
                                                                   $
    Canola Oil             1 case          0             1 case    15.00
                                                                   $
    Mayonaise             2 cases          0             2 cases   12.00
                                                                   $
    Ketchup               2 cases          0             2 cases   10.00
                                                                   $
    Flour                   5 lbs          0             5 lbs     8.00
                                                                   $
    Sugar                   8 lbs          0             8 lbs     10.00
                                                                   $
    Vanilla Extract        1 case          0             1 case    15.00
V. Beverages
                                                                   $
    Coca Cola              1 case          0             1 case    60.00
                                                                   $
    Raspberry Iced Tea     1 case          0             1 case    60.00
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs

Personnel (Payroll)
    Base Payroll

                                       # of
Associate   Pay          Hourly?      Hours        Income       Frequency
Owner     Salaried         No                      50,000       year
              $
Manager    22.00          Yes          40           880         week
              $
Cooks      12.00          Yes          40           480         week
              $
Servers     9.00          Yes          30           270         week
              $
Hosts       8.50          Yes          30           255         week
              $
Busboys     8.00          Yes          30           240         week

          Associate Base Weekly Schedule

                                                                                                           Hours Per W

                Owner Manager          Cook 1        Cook 2         Cook 3        Server 1   Server 2   Server 3   Se
Monday              8           8             8                           8           6                     6
Tuesday             8                         8             8             8           6          6
Wednesday           8           8             8             8             8           6          6          6
Thursday            8           8             8             8                         6          6          6
Friday              8           8             8             8             8           6          6          6
Saturday            8           8                           8             8                      6          6
Total Hours        48         40           40            40               40         30         30         30
                               $            $             $                $          $          $          $
Wages              N/A      22.00        12.00         12.00            12.00       9.00       9.00       9.00
                               $            $             $                $          $          $          $
Pay                N/A      880.00       480.00        480.00           480.00     270.00     270.00     270.00
(Monthly                       $            $             $                $          $          $          $
Pay)               N/A     3,520.00     1,920.00      1,920.00         1,920.00   1,080.00   1,080.00   1,080.00    1
Type of business
Requirement/features of MIS
Approach taken to gain information
Different online tools used and why (google, etc.)
Summary of how you plan to move forward and associated costs




i
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