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Restaurant Business Proposal

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					BUSINESS PROPOSAL TO SECURE LOAN FROM
PERBADANAN NASIONAL BERHAD (PNS) UNDER
       FRANCHISE LOAN PROGRAM

           December 10, 2007
                  By


              TAPCES ESSENTIAL (M) SDN. BHD.
   Confidentiality Disclosure Statement




   This document contains confidential material proprietary to TAPCES ESSENTIAL
    SDN BHD. The material, ideas, and concepts contained herein are to be used
 exclusively to evaluate the capabilities of TAPCES ESSENTIAL SDN BHD to secure
loan from PERBADANAN NASIONAL BERHAD. This information and the ideas herein
 may not be disclosed to anyone outside an employee of PERBADANAN NASIONAL
 BERHAD, or be used for purposes other than the evaluation of TAPCES ESSENTIAL
SDN BHD capabilities, without the prior written consent of TAPCES ESSENTIAL SDN
                                          BHD.




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  Content
   Executive Summary
   1. Introduction                           1.1 Franchisee’s Background
                                             1.2 Our Mission
                                             1.3 Franchisor’s Background
                                             1.4 Franchise System
                                             1.5 Franchise Benefits


   2. Start Up Summary                       2.1 Premise
                                             2.3 Project Milestone and Timeline


   3. Market Analysis Summary                3.1 Market Segmentation
                                             3.2 Market Analysis
                                             3.3 Target Market Segment Strategy
                                             3.4 Market Trends
                                             3.5 Main Competitors


   4. Strategy and Implementation Strategy   4.1 Marketing Strategy
                                             4.2 Organizational Structure
                                             4.3 Director’s Background


   5. Projection Financial Statement


   6. Appendices


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   Executive Summary



This business plan was created to secure loan from financial institution. Tapces Essential Sdn Bhd
(TESB), plans to operate an outlet of Laksa Shack Franchise, at Tesco Extra , Selayang. Laksa Shack ‘The
Laksa Specialist’ is a franchisor in the business café serving Malaysian delicacies, specializing in Laksa.
With a variety of Laksa and other Malaysian delicacies, Laksa Shack have proven to be a favorite with
Malaysians regardless of race and age.
There are two main reasons that Laksa Shack will succeed in Selayang; first is the lack of direct
competition (nothing like it in town) and second is the high demand for a product like this in Selayang.
Located about 5 Kilometers from Kuala Lumpur, Selayang is a well planed residential and commercial
area with a big potential for future developments. Based on the existing Tesco Extra outlets, the
occupancy rate at has been good and tenants are filling the mall up with a traffic of about 14,000 visitors
daily. We forecast to capture 2% of the visitors as our market share.
Government, private sectors employees, residents and students are our main target market. This is due
to the fact that Selayang is surrounded by offices, houses, and higher learning institutions. We also wish
to capitalize from the nearby office complexes whose workers frequently come for lunch break, which is
expected to contribute much to our sales volume.
With RM100,000 as our initial capital, we anticipate about RM500,000 will be needed to start the business
operation which will include the renovation and furnishing costs and other fixed assets required to run
the outlet. We also expect to record profit in our business, even in the first year of operation. A steady
and continuous increment is expected in our sales and profit recorded.




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INTRODUCTION




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   FRANCHISEE’S BACKGROUND:
           Name                 : Tapces Essential (M) Sdn Bhd (TESB)

           Registration no.     : 750466-H

           Address              :31C Pusat Bandar Taman Desa, Jalan Desa Bakti Taman Desa, 58100 Kuala Lumpur

           Phone & Fax no.      : 03 - 79806529

           Date of Incorporation :October 13 2006

           Authorized Capital   :RM 100,000

           Paid Up Capital      :RM 100,000

           Type of Business     : Franchise Restaurant

           Bank Account         : MBB 564128340817




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OUR MISSION
 To promote authentic home cooked delights without
  jeopardizing the originality and quality of the products.
 Provide a great work environment and treat employees
  with dignity and respect.
 Embrace diversity as an essential component in the
  way that we do business.
 Apply the highest standards of excellence to the food
  production, preparation, and service to customer.
 Build lasting relationships with the guests.
 Contribute positively to communities and our
  environment.
 Recognize that profitability is essential to our future
  success.



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FRANCHISOR’S BACKGROUND
 Name of Franchisor                                    Sierra Circle Sdn Bhd

 Company No                                            403009-T

 State whether Franchisor is the Master Franchisee     Franchisor

 Date of Incorporation of Franchisor                   September 21, 1996

 Principle Business Address of Franchisor              Lot 2D, Jalan SS5D/6
                                                       47301 Petaling Jaya
                                                       Selangor Darul Ehsan
                                                       Tel: 603-7880 2239
                                                       Fax: 603-7880 6692
                                                       E-mail: enquiry@laksa-shack.com.my
                                                       Website: www.laksa-shack.com.my


 Name and Trademark of Franchisor                      Laksa Shack
                                                       “The Laksa Specialist”

 Type of Business of Franchisor                        Business Café serving Malaysian delicacies, specialty noodles

 Business of franchisees, where the franchisor has     Not applicable
 been in operation prior to 8 October 1999 (list of
 franchisees’ names and addresses both in and out
 of operation

 Business experience of franchisor:-                   10 years in the business since 1996
 -in the business being franchised                     Not applicable
 -in other businesses

 Date of offer from franchisor to sell franchise       Immediately after approval from Kementerian Pembangunan
                                                       Usahawan dan Koperasi


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 FRANCHISE SYSTEM

                                             MARKETING
                                                AND
                                            ADVERTISING




               QUALITY                                                    COMPREHENSIVE
                                             FRANCHISE
              PRODUCTS                                                       SYSTEM




                                            TRAINING AND
                                              SUPPORT




   The franchise system is a comprehensive and distinctive system utilising and comprising of
   quality recipes for noodles preparation and other local food of a wide variety and origin and
   emphasizing prompt and courteous service attractive to patrons and customers and adhering
   to standard policies, specifications, techniques, selected ingredients and materials and
   insignia, logos and management methods with operational procedures and with prescribed
   and quality and services established by the franchisor.

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    FRANCHISE BENEFITS
•    Group advertising & marketing power

•    Owning your own business and making day-to-day decisions yourself, guided by the
     franchisor's experience

•    The ability to sell products and services to markets that cannot be serviced by company-
     owned outlets because of higher operational costs

•    The benefit of identification of service marks, brand awareness, trademarks, proprietary
     information, patents, and designs

•    Systematic training from experts

•    A lower risk of failure and/or loss of investments that if you were to start your own
     business from scratch

•    Being part of a uniform operations, which means all franchises will share the same interior
     and exterior physical appearance, similar products, and the same service and product
     quality

•    Assistance in financial and accounting matters from the franchisor, as well as ongoing
     support

•    The enhancement of your management abilities and benefits from an opportunity you
     could not have in most employment situations

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  SWOT Analysis


 Strengths    -   The support and benefits provided by a Franchise system greatly reduce a Franchisee's business
                  risks
              -   The Franchisee has the incentive of owning their own business with the additional benefit of
                  continuing assistance from the franchisor.
              -    The Franchisee benefits from operating under the name and reputation (brand image) of the
                  franchisor, which is already well established in the mind and eye of the public.
              -   The Franchisor helps the Franchisee obtain occupation rights to the trading location, comply with
                  planning (zoning) laws, prepare plans for layouts, shop fitting and refurbishment, and provide
                  general assistance in calculating the correct level and mix of stock for the opening launch of the
                  business
              -   The Franchisor trains the Franchisee (and very often, the Franchisee's staff as well) in all areas of
                  the business such as; manufacture, preparation, accounting, business controls, marketing,
                  promotion and merchandising

 Weaknesses   -   Soaring royalty fees. Every sales has a set percentage that goes to franchisor, no matter the expense
              -   Limited independence. Most franchisors impose price, appearance and design standards on
                  franchisees, limiting the ways you can operate the franchise.
              -   High startup costs. Before opening franchise, franchisee is required to pay a nonrefundable initial
                  franchise fee, which can cost thousand of dollars
              -   Higher material costs. To preserve quality standards, goods and materials to be bought strictly from
                  franchisor. The charges might be more than the market price.
              -   Lack of new product development for franchisees since there are restrictions on the sales of goods
                  and services by franchisor.



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 Opportunities   -   The Franchisor may negotiate better rates of finance, or more favorable conditions, for Franchisees
                     with financial institutions
                 -   The Franchisee receives the benefit on a national scale (if appropriate) of the Franchisors advertising
                     and promotional activities at a lower cost than if they were to attempt such marketing themselves
                 -   The Franchisee has access to use of the Franchisor's patents, trade marks, copyrights, trade secrets, and
                     any secret processes or formulae
                 -   The Franchisee has the benefit of the Franchisor's continuous research and development programs,
                     which are designed to improve the business and keep it up-to-date and competitive
                 -   The Franchisor provides a knowledge base developed from their own experience, as well as that of all
                     the Franchisees in the system, which would otherwise be impossible for a non-franchised business to
                     access

 Threats         -   Increase in price of necessity goods like oil, flour and chicken. People will spend less on outside food.
                 -   Price is higher compare to similar product in the market. People might turn to substitutes such as laksa
                     at food court since the price is cheaper.
                 -   Lack of legal recourse. As a franchisee, there is little legal recourse that can be taken if you are
                     wronged by the franchisor
                 -   Laksa Shack is new in market. The advertisement is very limited compare to other establish franchises
                     like McDonalds, KFC and Kenny Rogers.
                 -   Inflated pricing on supplies. The franchisor can designate supplies of goods and services. Franchisor
                     argues that this is done to maintain quality control, but almost all franchisors receive kickbacks from
                     the vendors. By not allowing shopping around and subsequently limiting competition, franchisees are
                     forced to pay higher prices on supplies


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      START UP SUMMARY



       Ciara Circle Sdn Bhd, owners of the Laksa Shack chain, has
       estimated overall start-up costs between RM450, 000 to
       RM550, 000. The numbers in the start-up cost table at the
       financial section are meant to reflect these estimates. The
       allocation into each category may not be exact, but the
       approximate costs have been estimated slightly higher.
       Overestimated costs will leave room for miscalculations, so
       that funding will be available and will ensure that everything
       runs smoothly. Please refer projection financial statement.




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   PREMISE

                                                                          Location: Lot F3, Tesco Extra
                                                                          Selayang, 1081, Jalan Ipoh,
                                                                          Mukim Batu, 51200 Kuala Lumpur.
                                                                          Premise’s size : 1149 square feet




  Why Tesco Extra Selayang: The concept behind Tesco Extra Selayang is simple: your shopping experience
  will be a memorable affair, right in the heart of selayang Commercial Center. Be it shopping, food, leisure, there's
  more than just great design and landscape; it's a shopper's destination providing endless shopping madness, fun
  and mouth-watering range of treats. Tesco brands are comparable in quality of perhaps better-known market
  leaders, yet they boast of innovative, value-added features that enhances the quality of life. All product categories
  are represented by the Tesco Brand, from daily necessities such as cheese and pasta, to cosmetics and clothing.
  This lifestyle shopping mall has a variety of shops, restaurants and food court. The centre also features Malaysia's
  first travelator within a shopping complex that will connect retail outlets and provice access directly to car parks.
  Another feature is its unique two level design that allows even distribution and smooth flow of shopppers within its
  well-spaced premises. Tesco Extra Selayang has 300,000 sq ft of retail space, with a dedicated car park buildings
  with approximately 3,000 carpark bays.

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   PROJECT MILESTONES AND TIMELINE
                    OCT                             NOV                                  DEC                           JAN
    Week        Week      Week       Week       Week       Week        Week       Week      Week     Week     Week    Week   Week
     2           3         4          1          2          3           4          1         2        3        4       1      2




                                                                  Loan
                                                                                                      Start
                                                                  approved
                                                                                                      operation

                                        Execution of
                                        Franchise
             Finalize                   agreement & fee
           discussion                                                                              Stage 3
               With
            franchisor

                                                       Stage 2
                                                                                                      Renovation of
                                                                                                      outlet

              Stage 1
                                               Submit
                                                                              Training &
                                               proposal to
                                                                              development
                                               PNS




                                                                                                       Idle Time
   It is assumed that F.I. will provide loan approval within five (5) working weeks.


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Market Analysis Summary




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   Market Segmentation


   Name : Selayang
   Location :

   It is strategically located along the high-traffic Jalan Kuching,
   thus ensuring good visibility and business opportunity. At a mere
   5km away from the busy city of Kuala Lumpur, its accessibility
   guarantees a thriving business in a prominent landmark.
   Direct access to major highways such as NKVE, KESAS, LDP and
   MRRII draws the crowd to Tesco Selayang from as near as the
   densely populated Ulu Klang, Gombak, Kepong, Batu Caves and
   Selayang areas, to as far as Petaling Jaya and Rawang.

   Population :
   The population of 500,000 within the 15km radius creates an oasis
   of market potential for a booming business.

   Commercial Components :
   Over the years, Selayang has matured into a community well-
   provided with amenities. The township has numerous schools,
   colleges, a hospital, places of worship, and vibrant commercial
   areas.
   Modern Transport and Telecommunications Systems :
   • Inter-city Transport System with three entry and exit points. The city has high-speed road and rail linkages to rest
   of the country
   • Intra-city Transport System consisting of komuters, buses and private vehicles
   • Broad Bandwidth Global Multimedia Communication Links



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                          Market Analysis (Pie)



                                                                            Government
                                                                            Private
                                                                            Student
                                                                            Residents




   Government Servants                                :    Currently there are Majlis Perbandaran
                                                           Selayang, Gombak District Office Complex
   Private Sector                                     :    About 12 commercial building within 1km
                                                           radius of Tesco Xtra Selayang
   Students                                           :    There are three, College Community Selayang,
                                                           College Cosmopoint, College Metropolitan
   Residents                                          :    Consists of government servants and private
                                                           sector workers who stays at Selayang

 Using basic demographic characteristics of age, gender, income, location, food preferences, ethnicity, an
 estimate of 100,000 potential customers was used in developing this plan. (refer appendix of places at Selayang)

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    Target Market Segment Strategy
    The target market for the quick casual dining industry is very broad and should
    incorporate most demographic regions. Almost all ages, genders, races and
    incomes should be considered potential customers.


    Market Trends
    In Tesco Extra Selayang there are no high-quality, quick casual Malaysian dining
    restaurants. Laksa Shack food will be 100% fresh prepared in front of our
    customers’ eyes. The competitive advantage that Laksa Shack has is the
    varieties of laksa offered which will allow customers to choose their laksa to their
    specific tastes.




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   Main Competitors

    Jom Bali Cafe : It is located besides of proposed Laksa Shack outlet. Even though the
    environment is more cozy, The price for their food is higher thus giving Laksa Shack the
    advantage in offering customers more value for money. Since Laksa Shack is a non smoking
    outlet, the atmosphere will be much cleaner and more comfortable. The food will be prepared
    in front of the customer, with no lard, canned food or shredded meats. Although the prices at
    Laksa Shack is cheaper, the final products is definitely better.
    Chicken Rice Shop : This is probably the most popular quick Malaysian delicacies restaurant
    at Tesco. Using canned foods and some lard products, this restaurant provides a far-from-
    fresh feeling. Again, they would be no comparison in quality of food. Though they will probably
    continue to attract the traditional style Malaysian food consumer. Menu prices will be very
    similar, though the final products will not be.
    Food Court :




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Strategy and Implementation Summary




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    Marketing Strategy

      Advertising costs can overwhelm a new business, so keeping marketing simple and creative will be
      challenging. Cost effective marketing is one of our keys to success, and fortunately a large portion of
      it will be taken care of by the franchisor.
      In the world of retail and franchise marketing, the rule is to be different. Laksa Shack’s business
      philosophy is built upon this and hence the company is constantly assessing its growth strategies
      and reviewing future plans aimed to extend the business reach and revenue. Among these are
      innovative concepts such as:


      Laksa Shack Delivery Service
      Laksa Shack Retail Market
      Laksa Shack Catering Services
      Dietary Laksa Market
      F&B HR Industry Training
      Laksa Shack’s Vending Machine




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ORGANIZATIONAL STRUCTURE OF TESB


                        Board of
                        Directors


           Finance                             Business
                        Operation
           Manager                            Development
                        Manager
                                                Manager

           Cashiers     Assistant
                        Operation
                        Managers


                        Workers




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   Director’s Background
   All the Directors in TESB, will also be managing the proposed outlet on a full-time basis.


   •Elmi Johar will hold the position of Finance Manager, responsible for the financial department of the outlet and
   keeping track of every sales and purchases transacted. The finance manager will also be responsible for keeping
   the outlet’s accounting and financial well-being


   •Azwin Bin Ishak – Diploma in Accountancy (UiTM), Covering the marketing and operation side of the business. As
   the Business Development Manager, he will also be responsible in negotiations and public relations of TESB. He
   has the record of accomplishment for meeting timeliness and adherence to structured approach and methodology.
   He has exceptional communication skills, able to bridge company and clients interests. He also has strong
   analytical and presentation abilities, with excellent problem solving skill. Prior in joining TESB, he is working with Al-
   Rajhi Bank as a home financing executive.
   HP No. : 016-2081400
   Address: 40 Jalan 14 Tmn Nirwana 68000 Ampang Selangor
   Next of kin : Noor Azfinah Bt. Ishak (Sister) 019 - 6601655
   •Rafiq Muizz, the Operation Manager will be responsible for the daily operation of the outlet run by TESB. His main
   responsibility is to ensure smooth operation and customer satisfaction with the food and service provided.




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DOCUMENT INFO
Description: This is my proposal to frachisor and finance institute for my first restaurant business. It was made using power point which is 2 in 1, it's for presentation and also hard copy. You may find it too simple, but I presented it for 2 hours to secure the loan..