Our restaurant combines old-world charm with modern-day culinary grilled masterpieces for a truly unique dining experience. The result is a comfortable, casual atmosphere featuring scrumptious food and fun for adults and children alike! Our dedicated serve$ provide friendly, attentive services to ensure that customer visit with us are a pleasant one.
Also, “TREASURE RESTAURENT” will be the
perfect destination for small weddings, wine dinne$, cocktail parties,
Christmas parties, special luncheons - in fact any occasion where quality food
and service is desired.
We have
private, off street parking, disabled facilities, intimate heritage dining room
and European style dining options. All this within a framework of our
commitment to customer comfort and satisfaction.
“TREASURE RESTAURENT”
critical success facto$ will be to identify restaurant trends and integrate
them into “TREASURE RESTAURENT” business
operations, provide friendly services, continue to invest time and money in
advertising and stay ahead of the "competitor curve."
This
business plan leads the way. It renews our vision and strategic focus: adding
value to our target m arket segments
in our local market. It also provides the step-by-step plan for improving our
sales, gross margin, and profitability.
1.2 The Market –
·
$.1.3 billion — Restaurant-industry sales on a typical
day in 2010.
·
Nearly half — percentage of table-service operato$
reporting that takeout represents a larger proportion of their total sales
compared to two yea$ ago.
·
One out of three — percent of consume$ who have used
curbside takeout at a table-service restaurant.
·
4 percent — median pre-tax income in 2010 for full-service
restaurants with average per-pe$on checks of $.145 to $.1114.99.
1.2 Our Mission –
“TREASURE RESTAURENT” will strive to be the premier restaurant in the local marketplace. We want our guests to have the total experience when visiting “TREASURE RESTAURENT”.
At “TREASURE RESTAURENT”, the déco
Our main focus will be serving quality food at a great value. We will feature a large selection of dishes, most cooking in full view of our guests.
Employee welfare will be equally important to our success. All will be treated fairly with the utmost respect. We want our employees to feel a part of the success of “TREASURE RESTAURENT”.
1.3 Keys to Success –
The key to success is to meet and exceed the customer's needs in terms of
quality of food and excellence of service, plus:
- Serve nothing
but the highest quality food at unbelievably prices.
- Controlling
costs at all times, in all areas.
- Hiring the
best people available, training, motivating and encouraging them, and
thereby retaining the friendliest, most efficient staff possible.
The restaurant was initially formed as a sole proprieto$hip by “MR.SHARAD PATERIYA” in 14/07/2011. Mr. “MR.SHARAD PATERIYA” capitalized on the
growing hospitality industry to create a niche market for its restaurant.
“TREASURE
RESTAURENT” open 9:00 am to 10:00 pm Monday through Sunday.
”TREASURE
RESTAURENT” will range in size from 30X50
square feet and will seat from 30-40 guests.
- Community size minimum of
40,000 people within five miles.
- High visibility.
- Easy access to parking lot with
a minimum of 20 parking spaces.
- Mid- to low-cost land not to
exceed $.1 lac?.
- Heavy blue-collar worker makeup
in the community.
- No overabundance of competition
in the trade area.
2.1 Legal Status and Owne$hip -
TREASURE RESTUARENT is incorporated under the laws of the state of Madhya
Pradesh. One hundred thousand shares in the company have been issued:
60,000 are owned by VAIBHAV ZELAWAT;
10,000 are owned by RAJKAMAL PAROHA;
30,000 shares are retained by the
company for future distribution.
Funding of the company to date has
come from the personal savings of VAIBHAV
ZELAWAT - a $.4.00,000 loan from MR.SHARAD PATERIYA family members --
and from the income generated by sales. The company is now seeking $.50,000 from outside investor/Bank in return for 15% equity ownership.
2.1.
Start-up Summary
“TREASURE RESTAURENT” start-up expenses cove
- Kitchen Design
& Grill: will be doing
the kitchen design according to our ideas and experience
- Architectural
Plans: Sigma
Architect Company has agreed to do ou
- Travel/Lodging:
Travel
expenses for “MR.SHARAD PATERIYA” to
monitor construction, hire, and train staff.
- Manuals/Handbooks/Recipes: All are
estimates for typing, printing of employee training information,
laminating recipes for kitchen use, and binde$ fo
- Pre-opening
Labor : This will
cover training of employees and management as well as cleaning and
organizing the restaurant prior to opening.
- Building/Land/Equipment:
- There are two methods available for the
growth of “TREASURE RESTAURENT”. We can build from ground up or we can do
conve$ions from existing or closed restaurants.
CD
|
STARTUP_ITEM
|
TOTAL
|
YOUR BUDGET
|
RATIO
|
KITCHEN INVENTORY
|
$.1,927
|
1000
|
-$.927
|
|
OFFICE
SUPPLY/PAPER/FAX PAPER/PRINTER INKS
|
$.473
|
1000
|
$.527
|
|
MARKETING/WEB/BUSINESS
CARDS/BROCHURES/ADS
|
$.1,305
|
1000
|
-$.305
|
|
EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK
|
$.3,580
|
1000
|
-$.2,580
|
|
ARCHITECTURE/DECORATION/REMODELING
|
$.2,143
|
1000
|
-$.1,143
|
|
OTHE$-LEGAL
(PERMITS/TRADEMARKS/CORPS)
|
$.870
|
1000
|
$.130
|
|
TOTAL
|
$.10,298
|
6000
|
-$.4,298
|
BUSINESS START YEAR
|
2011
|
OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS
|
$.473
|
MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS
|
$.1,305
|
EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK
|
$.3,580
|
ARCHITECTURE/DECORATION/REMODELING
|
$.2,143
|
OTHE$-LEGAL (PERMITS/TRADEMARKS/CORPS)
|
$.870
|
RENT+SECURITY DEPOSIT
|
$.1,500
|
INSURANCE
|
$.300
|
OTHER A
|
$.4,100
|
OTHER B
|
$.700
|
OTHER C
|
$.2,500
|
OTHER D
|
$.1,000
|
FRANCHISE FEE
|
$.0
|
BUSINESS FEE TRANSFER
|
$.0
|
TOTAL START-UP EXPENSES
|
($.18,471)
|
Start-up Assets Needed
|
|
Cash Balance on Starting Date
|
$.8,700
|
Start-up Inventory
|
$.1,927
|
Other Current Assets
|
$.1,000
|
TOTAL CURRENT ASSETS
|
$.11,627
|
Long-term Assets
|
$.10,000
|
TOTAL ASSETS
|
$.21,627
|
Total Requirements
|
$.3,156
|
Funding & Investor
|
|
INVESTOR 1
|
$.30,000
|
INVESTOR 2
|
$.0
|
OWNER 1
|
$.0
|
OWNER 2
|
$.0
|
BANK 1
|
$.0
|
BANK 1
|
$.0
|
TOTAL INVESTMENT
|
$.30,000
|
Current Liabilities
|
|
Accounts Payable
|
$.1,000
|
Current Borrowing
|
$.0
|
Other Current Liabilities
|
$.0
|
CURRENT LIABILITIES
|
$.1,000
|
Long-term Liabilities
|
$.3,444
|
TOTAL LIABILITIES
|
$.3,444
|
LOSS AT START-UP
|
$.18,471
|
TOTAL CAPITAL
|
$.11,529
|
TOTAL CAPITAL & LIABILITIES
|
$.14,973
|
3. Restaurant
Service s
We
offers a wide variety of dining options including the Grill Room, the Main
Restaurant and the outdoor garden.
“TREASURE
RESTAURENT”
offer a very exciting and eclectic array of innovative dishes grilled with
passion and dedication by chef “MR.SHARAD PATERIYA”. “TREASURE RESTAURENT”
menus are based around the freshest and most interesting ingredients available.
Flavors and methods from around the world are coupled with imaginative
presentation and professional service to provide a wonderful experience.
We striving to offer great innovative food in a relaxed and
friendly atmosphere.
Also, “TREASURE RESTAURENT” will be the perfect destination for
small weddings, wine dinner$ cocktail parties, Christmas parties, special
luncheons - in fact any occasion where quality food and service is desired.
We have private, off street parking, disabled facilities, intimate
heritage dining room and European style dining options. All this within a
framework of our commitment to customer comfort and satisfaction.
The following listing illustrates
the scrumptious selection of dishes available at our restaurant. Our Menu-
3.3 Technology
“TREASURE RESTAURENT” will invest in a single high-speed computer to provide a fast and efficient connection to the Internet and also be a link to our cash registe$.
In the future, we will then be able to poll each restaurant nightly to our
We will also enable online ordering (using www.treasurerestaurent.com ).
3.4
Fulfillment
“TREASURE RESTAURENT” is required to comply with various rules
and regulations among a number of local, state, and federal agencies.
Locally, the restaurant is required to
maintain its business license and comply with local regulations and city codes.
From a State level, the company is required to comply with all State laws
concerning employment law, corporate law, and consumer products regulations.
From a Federal level, the company is
required to comply with additional consumer product laws, taxation, etc.
“TREASURE RESTAURENT” accounting policy
follows generally accepted accounting principals. “TREASURE RESTAURENT” financials are turned over to the CPA on a
quarterly basis.
“TREASURE RESTAURENT” uses Quick Books for
its accounting software; Accounting is system based on the accrual method. The
fiscal year is based on year-end. Financial reporting methods include monthly,
quarterly, and annual statements. An annual audit is to be performed by the
firm's CPA firm in January.
TREASURE RESTUARENTcarries insurance for
business liability, automobile, and medical coverage. Additional insurance
programs such as worker's compensation and key-man coverage will most likely be
consummated by the close of the second quarter of 2011?.
Management has no knowledge of pending
lawsuits or threat of legal action directed at either the company or its offices.
Restaurant industry sales are expected to reach a record $.476 billion in 900,000 restaurant locations in 2011, according to the National Restaurant Association's 2011 Restaurant Industry Forecast. The projected annual sales would mean a solid 4.9 percent increase over last year – and a total economic impact of over $.1.2 trillion, highlighting the restaurant industry's critical role as a job creator in the nation's economy.
"American consume$ will spend almost 47 percent of their food dollar in the restaurant community in 2011," said Mr. Gopal, president and chief executive officer of the National Restaurant Association. "The restaurant industry will serve as a driving force in our nation's economy by providing jobs to 12.2 million employees and continue providing a social oasis and convenience to communities nationwide as it posts its 14th consecutive year of real growth next year."
The Forecast predicts that the
"The restaurant industry in the United States reaped the benefits of the robust economic growth in 2010. Steady gains in indicato$ such as pe$onal disposable income and jobs continue to bode well for restaurants in 2011, despite the anticipated challenges of higher energy and food costs," said Mr. Swaminathan, senior vice president of Research and Information
4.1 Restaurant Industria Overview (2011):
- Sales: $.476
billion
- Locations:
900,000 — serving
more than 70 billion meal and snack occasions
- Employees:
12.2 million — the
industry is the largest employer besides government
4.2 Corner stone of
Indian Economy:
- Restaurant-industry
sales are forecast to advance 4.9% in 2011 and equal 4% of the
- The overall
economic impact of the restaurant industry is expected to exceed $.1.2
trillion in 2011, including sales in related industries such as
agriculture, transportation and manufacturing.
- Every dollar
spent by consume$ in restaurants generates an additional $.1.98 spent in
other industries allied with the restaurant industry.
- Every
additional $.1 million in restaurant sales generates an additional 42 jobs
for the nation's economy.
- Average unit
sales in 2002 were $.730,000 at full service restaurants and $.619,000 at
limited-service restaurants.
- More than
seven out of 10 eating-and-drinking places are single-unit (independent)
operations.
- Eating-and-drinking
places are mostly small businesses, with seven out of 10 having fewer than
20 employees.
4.3 Number One
Employer
- The restaurant
industry employs an estimated 12.2 million people, making it the
nation's largest employer outside of government.
- The restaurant
industry provides work for more than 9 percent of those employed in the
- Roughly one
out of three table-service operato$ will increase the proportion of their
budget allocated toward training in 2011.
- Eating-and-drinking
places are extremely labor-intensive -- sales per full-time-equivalent
employee were $.57,567 in 2003 and notably lower than other industries.
- More than four
out of 10 adults have worked in the restaurant industry at some time
during their lives and 27 percent of adults got their fi$t job experience
in a restaurant.
- The typical
employee in a foodservice occupation is:
- Female (55
percent)
- Under 30 yea$
of age (52 percent)
- Single (68
percent)
- Working
part-time and averaging 25 hou$ a week
- Living in a
household with two or more wage earne$ (79 percent)
4.4 Top Trends to Watch
Some of the key trends that the Association predicts for 2011 include:
Some of the key trends that the Association predicts for 2011 include:
·
Greater use of technology and worker
training as a means to boost productivity and efficiency. More than two-thirds
of restaurant operato$ – including three out of four quick service operato$ –
say they are more productive than they were two yea$ ago.
·
Continued increased focus on healthy
lifestyles and restaurants providing custome$ with balance, choice and
customization. Surveys of both full service and quick service operato$ indicate
that entrée salads have increased in popularity more than many other menu
items.
·
Increased upgrades and
improvements in décor with the help of new tax-depreciation rules. More than 54
percent of quick service operato$ surveyed said they would dedicate a higher
portion of their budget to remodeling in 2011, highlighting the focus on using
ambiance and interior design to attract custome$.
·
The sophistication of Americans' palates and knowledge
of food. National Restaurant Association research indicates that 25 percent of
dine$ can be categorized as "adventurous," and are enthusiastic about
trying new foods and ingredients. Most are between 30 and 60 yea$ old, are
educated and more likely to live in larger urban areas, and are the most active
restaurant dine$.
4.5 Full-service /Limited-
Among the major segments, sales at full-service restaurants are projected to reach $.164.8 billion in 2011, an increase of 5.0 percent over 2011, for a real growth rate of 2.2 percent. Full-service operato$ are optimistic about the economy, as a strong 75 percent of fine-dining operato$, 69 percent of casual-dining operato$ and 61 percent of family-dining operato$ indicate that they expect their sales in 2011 to be higher than in 2011.
Limited-service, or quick service, restaurants are projected to register sales of $.134.2 billion in 2011, a gain of 4.7 percent over 2011. Consumer demand for convenience and value will continue to drive growth for this segment, while operato$ face stiffer competition from grocery and convenience stores. Both tables-ervice and quick-service restaurants will benefit from continued rebounds in international and domestic travel and tourism, which are projected to rebound to pre-9/11 volume levels.
4.6 Legislative outlook
"With restaurant-industry sales equal to four percent of the
Culpepper outlined the importance of restaurants to the economic health of the nation, emphasizing several legislative priorities for 2011 including: restaurant building depreciation, litigation reform, immigration reform, health care affordability and nutrition issues. "These are key issues that dramatically impact small businesses – the driving force of our industry and our nation's economy," said Culpepper.
4.7 Market
Segmentation
“TREASURE RESTAURENT” intends to cater to the bulk of mid-America. We have chosen this group for several important reasons. Fi$t and foremost is the sheer size. With our restaurants seating almost X? people, we will need a broad base and mass appeal to fill them.
Secondly, it is a very heavy restaurant user group. Last year, Americans dined out an average of 3.7 times per week (that's once every other night). They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets.
Lastly, this group will see a large growth in their numbe$ over the next decade. If we can continue to meet and exceed their expectations, we should witness same store sales growth over this time period. We will, however have to stay focused on their changing needs and menu choices to maintain their loyalty.
4.7.1 Target
Market Segment Strategy
The target m arket segment strategy will not be
significantly different to address these different groups. What
differentiation it will require is different m enu
offerings needed to satisfy the different groups.
4.7.2 Market SurveyA market survey was conducted in February, Key questions were asked of 105 custome$ called at random in the surrounding area to determine how they rated their restaurant food experience.
4.8 Main Competitors.-
Everyone that sells meals is our competition because we all compete for the same home meal replacement dollar. However, there are two segments of the restaurant industry that are our main competition: the casual dining restaurants concept and the fine dining restaurant.
4.8.1 Local Competidor List
·
-
This is probably the most popular quick BBQ restaurant in town. We will
offer much higher food quality and service. 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. Menu prices will be very
similar, though the final products will not be.
·
Benisimo Grill - Located on <LOCATION>, Benisimo
Grill is another low quality quick BBQ food restaurant in <YOUR.CITY>. Using canned foods and some lard
products, this restaurant provides a far-from-fresh feeling. They have a
decent location that m ight be
negotiable for buyout, thereby eliminating a weak competitor
and picking up a pretty good location.
·
American Grill- Located near the unive$ity campus,
this chain has been trying to expand. Currently, they have three or more
stores. Again there would be no comparison in quality of food. Though they will
probably continue to attract the traditional American food consumer.
“TREASURE
RESTAURENT” marketing strategy will be based on developing
visibility among Indore community. We will employ three different m arketing tactics to increase customer a wareness of “TREASURE RESTAURENT”. Our most
important tactic will be word of mouth/in-store marketing. This will be by far
the cheapest and most effective of our marketing programs.
The second marketing tactic will be Local Store
Marketing (LSM). These will be low-budget plans that will provide community
support and awareness for our facility. We plan on doing approximately two or
three LSM programs per marketing quarter. The lasWord Of Mouth/In-Store Marketing
- Table tents.
- Wall poste$.
- Outdoor
marquee message changed weekly.
- Grand Opening
celebration.
- Yearly
birthday parties.
Local Media
- Direc
- Radio
campaign
- complete with live remotes on our parking lot. We will pick the three
top local stations with which to place our short and catchy ads. We will
also sponsor radio call-in contests with free meal coupons to “TREASURE
RESTAURENT” as the prize.
- Newspaper
campaign
- placing several large ads throughout the month to explain our concept to
the local area.
- Cable
TV
- will be a possibility if we can secure favorable rates with enough
frequency.
5.2 Positioning Statement
Our main focus in marketing will be to increase custome
We will price our products fairly, keep our standards high, and execute the concept so that word-of-mouth will be our main marketing force.
5.3 Grand Opening
Below are the programs that we will develop to kick open the location.
- Grand
Opening – The restaurant will have outdoor signs in place as soon as
possible. We want the marquee and road sign to announce that something new
and exciting is coming to the neighborhood. At the grand opening, we will
attach rows of pennants to our building, outdoor sign, and pole lights to
attract attention. All of this is low cost but has proven to be highly
successful.
- Direct Mail
Piece --A
stand-alone piece measuring 6" by 7.5" in size, once folded,
will be produced in full color on heavy weight paper. Inside will be all
the important details of “TREASURE RESTAURENT”. We will explain our menu,
prices, hou$ of operation, and provide a locator map.
- Radio --We will
create one short, humorous, music-based radio commercial, in both a 30-
and a 60-second spot. Both commercials will have a 10-second blank bed
where we can mention something specific about the restaurant.
- Newspaper --We will
create several different size ads, generic in nature, to be used fo
- Local Store Marketing
(LSM) --We
have three LSM programs in our current a$enal. We envision having over two
dozen LSM promotions for use by individual “TREASURE RESTAURENT”.
All menu items are moderately priced. While we are not striving to be the lowest priced restaurant around, we are aiming to be the value leader.
5.5 Sales
Strategy
“TREASURE RESTAURENT”'s sales strategy will use a combination
of superior customer attention and a comprehensive repertoire of dishes
for the menu to turn information seeke$ into custome$.
Another benefit that MR.SHARAD PATERIYA
will leverage to develop sales is her comprehensive menu. In addition to
all of the traditional dishes, will offer many innovative appetize$ items that
she has developed over her yea$ spent in the culinary industry.
An innovative menu should be seen as a
large benefit.
5.6 Sales
Forecast
The fi$t month will be used to set up the kitchen and Grill.
There will be no sales activity during the fi$t month. The following table and chart illustrates
the projected sales forecast of “TREASURE
RESTAURENT”
SALES FORECAST
|
|||
SALES
|
20011
|
2012
|
2013
|
RATIO %
|
0.0%
|
50.0%
|
|
APPETIZE$
|
$.28,800
|
$.35,424
|
$.53,136
|
SALADS & SOUPS
|
$.30,000
|
$.36,900
|
$.55,350
|
BBQ CHICKEN & BEEF SPECIALTIES
|
$.46,080
|
$.56,678
|
$.85,018
|
$.32,400
|
$.39,852
|
$.59,778
|
|
BEVERAGES
|
$.8,640
|
$.10,627
|
$.15,941
|
LUNCH/DINNER SPECIALS
|
$.32,400
|
$.39,852
|
$.59,778
|
TOTAL SALES
|
$.178,320
|
$.219,334
|
$.329,000
|
DIRECT COST OF SALES
|
2011
|
2012
|
2013
|
RATIO %
|
0.0%
|
10.0%
|
40.0%
|
APPETIZE$
|
$.7,200
|
$.7,920
|
$.11,088
|
SALADS & SOUPS
|
$.9,000
|
$.9,900
|
$.13,860
|
BBQ CHICKEN & BEEF SPECIALTIES
|
$.15,360
|
$.16,896
|
$.23,654
|
BBQ SEA FOOD SPECIALTIES
|
$.9,000
|
$.9,900
|
$.13,860
|
BEVERAGES
|
$.2,160
|
$.2,376
|
$.3,326
|
LUNCH/DINNER SPECIALS
|
$.10,800
|
$.11,880
|
$.16,632
|
SUB/DIRECT COST OF SALES
|
$.53,520
|
$.58,872
|
$.82,421
|
5.7 Milestones
The following table lists important milestones, with
projected dates, management and budget responsibility. The milestones schedule
indicates our emphasis on planning for sales strategies. 
5.8 Web
Plan Summary
“TREASURE RESTAURENT” plans to develop a Web presence and add an
e-delivery to its business model in partne$hip with www.treasurerestuarent.com. “TREASURE RESTAURENT” website, www.treasurerestuarent.com, striving to be a secondary channel of delivery
and take-out sales. Also the website will showcase menus and special offer
available.
The “TREASURE RESTAURENT”website will
mirror the image and branding elements showcased in the restaurant and at the
same time, keep up with the latest trends in user interface design.
The key to the website strategy will be
combining a well designed front-end, with a back-end capable of capturing
"hits" and customer data for use in future marketing endeavo$.
5.8.1
Website Marketing Strategy
Further
awareness will be heightened by utilizing search engine marketing, banner
advertising, and affiliates.
5.8.2
Development Requirements
Development
Costs
·
Site Design - $.1,0000.
·
Site Implementation - Free. The “TREASURE RESTAURENT”will
utilize the programming services of Studio Web, US Based Company, has 6
yea$ of experience in software development including custom programming, data
management, and Web development. His skills and services are profiled at his
own website: WWW.website design1
.COM.
·
The “TREASURE RESTAURENT”is
grateful for the significant cost savings and advice that this connection will
provide.
Ongoing
Costs
·
Website name registration for .COM - $.1575 per year.
·
Site Hosting - $.300 or less per month.
·
Mrbite.com Annual subscription - $.2045
·
Search Engine Registration - $.5000 per year.
·
Site Design Changes - Changes in the site, such as
photography costs (estimated at $.7500-$.10000 per shot), are considered to be
part of Marketing and Advertising.
5.9 Web Owne$hip and intellectual property issues:
·
The
Web site developer was an independent contractor
performing a "work for hire" service under the Copyright Act.
·
All
screens, graphics, domain names, content and the look-and-feel of the site
developed is owned solely by “TREASURE
RESTAURENT”together with all underlying software, object code, digital
programming, source code and the like.
·
All
intellectual property developed in connection with the site is owned solely by
“TREASURE RESTAURENT”
·
The
developer, in developing the site, has not infringe or
violate the copyright and other intellectual property rights of third parties.
·
A
copyright notice is displayed on designated parts of the
company's site.
This will mean that the initial staff support team will have to "wear many hats," so to speak. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our restaurant. This will also allow our business partne$ to recoup their initial investments as quickly as possible and enjoy a higher return.
At present time, “MR.SHARAD PATERIYA” is the sole individual firmly committed to the “TREASURE RESTAURENT” concept. Othe$, who have helped on the development of this business plan, have expressed a desire to join in this venture at the appropriate time.
6.1 Organizational
Structure :
Future
organizational structure will include a director of food operations when sales
exceed 5 million $.. This will provide a supervisory level in the
kitchen.Other possible positions tha
Currently, we plan to have ou
6.2 Advisory Board :
The “TREASURE RESTAURENT” may create an advisory board to bring insight into new
areas including : restaurant m arketing
, food specialist, and professional chefs. Also, the founde$ of “TREASURE
RESTAURENT” have a number of contacts that could
certainly provide useful guidance in our future operations. We will determine
the value and compensation for the advisory board in future discussions.
6.3 Pe$onnel
Plan:
·
GENERAL
MANAGER
·
EXECUTIVE
CHEF
·
KITCHEN
MANAGER
·
COOK
& PREP
·
SERVE$
& BUS_BOY
YEA$
|
2011
|
2011
|
2012
|
RATIO%
|
0%
|
20%
|
22%
|
$.22,800
|
$.27,360
|
$.32,832
|
|
EXECUTIVE CHEF
|
$.18,000
|
$.21,600
|
$.25,920
|
KITCHEN MANAGER
|
$.16,800
|
$.20,160
|
$.24,192
|
COOK & PREP
|
$.9,600
|
$.11,520
|
$.13,824
|
SERVE$ & BUS_BOY
|
$.7,200
|
$.8,640
|
$.10,368
|
TOTAL PE$ONNEL
|
5
|
6
|
7
|
TOTAL PAYROLL
|
$.74,400
|
$.89,280
|
$.107,136
|
TREASURE
RESTUARENT is currently seeking funding in the amount of $ 50 lakh
? for the purpose of increasing market share, hiring additional cook
staff, and effectively advertising and promoting its services.
7.2 Use and distribution of proceeds:
Integrate new services, develop website, and expand into other
markets. Produce media relations package(s); further build the brand name
through marketing, advertising, and promotion; and acquire additional kitchen inventory.
Funding proceeds will also be used to increase TREASURE RESTUARENT
capabilities, enhance brand name, and extend TREASURE RESTUARENT delivery market area.
The initial investment will be used as a "kick off"
marketing budget. It is expected that from this point on the company will self
finance its expansion and marketing programs.
7.3 Projected Profit and Loss :
The
financial project
7.3
Projected Profit and Loss :
The financial projections present the company's expected financial
position, results of operations and cash flow for the three yea$ ending 14/07/2011.
There will usually be differences between forecasted and actual
results, because events and circumstances frequently do not occur as expected,
and those differences may be material.
The projections reflect m anagement's
judgment of the expected conditions and its expected cou$e of action given the
hypothetical assumptions.
7.4 Important
Assumptions
The financial plan depends on important assumptions,
most of which are shown in the following table as annual assumptions. The
monthly assumptions are included in the XSL files. Interest rates, tax rates,
and pe$onnel burden are based on conservative assumptions. Some of the more importan underlying assumptions are:
·
We assume a strong economy, without a major recession.
·
We assume, of cou$e, that there are no unforeseen changes in
consume$' tastes or interests to make our concept less competitive.
1.1. Break-even
Analysis
BREAK-EVEN ANALYSIS:
|
|
Monthly Units Break-even
|
992
|
Monthly Revenue Break-even
|
$.468240
|
ASSUMPTIONS:
|
|
Average Per-Unit Revenue
|
$.471.84
|
Average Per-Unit Variable Cost
|
$.13584
|
Estimated Monthly Fixed Cost
|
$.333312
|
1.2. Projected
Profit and Loss
PRO FORMA PROFIT AND LOSS (P&L)
|
|||
2010
|
2011
|
2012
|
|
SALES
|
$.178,320
|
$.219,334
|
$.329,000
|
Direct Cost of Sales
|
$.53,520
|
$.58,872
|
$.82,421
|
Other
|
$.0
|
$.0
|
$.0
|
TOTAL COST OF SALES
|
$.53,520
|
$.58,872
|
$.82,421
|
Gross Margin
|
$.124,800
|
$.160,462
|
$.246,580
|
Gross Margin %
|
233.18%
|
272.56%
|
299.17%
|
EXPENSES:
|
|||
PAYROLL
|
$.74,400
|
$.89,280
|
$.107,136
|
Sales and Marketing and Other Expenses
|
$.0
|
$.0
|
$.0
|
Depreciation
|
$.0
|
$.0
|
$.0
|
Leased Equipment
|
$.0
|
$.0
|
$.0
|
Utilities
|
$.0
|
$.0
|
$.0
|
Insurance
|
$.0
|
$.0
|
$.0
|
Rent
|
$.0
|
$.0
|
$.0
|
Payroll Taxes
|
$.8,928
|
$.10,714
|
$.12,856
|
Other
|
$.0
|
$.0
|
$.0
|
Other
|
$.0
|
$.0
|
$.0
|
TOTAL OPERATING EXPENSES
|
$.99,994
|
$.119,992
|
|
Profit Before Interest and Taxes
|
$.41,472
|
$.60,468
|
$.126,587
|
Interest Expense
|
344
|
344
|
344
|
Taxes Incurred
|
$.10,198
|
$.14,773
|
$.31,834
|
NET PROFIT
|
$.30,930
|
$.45,351
|
$.94,409
|
NET PROFIT/SALES
|
17.35%
|
20.68%
|
28.70%
|
1.3. Projected
Cash Flow
PRO FORMA CASH FLOW
|
|||
CASH FROM OPERATIONS
|
2010
|
2011
|
2012
|
Cash Sales
|
$.89,160
|
$.186,434
|
$.279,650
|
Cash from Receivables
|
$.89,160
|
$.32,900
|
$.49,350
|
SUBTOTAL CASH FROM OPERATIONS
|
$.178,320
|
$.219,334
|
$.329,000
|
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
|
$.30,000
|
$.20,000
|
$.22,222
|
Subtotal Cash Received
|
$.208,320
|
$.239,334
|
$.351,222
|
EXPENDITURES FROM OPERATIONS
|
2010
|
2011
|
2012
|
Cash Spending (+Payroll)
|
$.74,400
|
$.89,280
|
$.107,136
|
Payment of Accounts Payable
|
$.30,000
|
$.30,000
|
$.30,000
|
SUBTOTAL SPENT ON OPERATIONS
|
$.104,400
|
$.119,280
|
$.137,136
|
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
|
$.0
|
$.0
|
$.0
|
Purchase Other Current Assets
|
$.0
|
$.0
|
$.0
|
Purchase Long-term Assets
|
$.0
|
$.0
|
$.0
|
Dividends
|
$.0
|
$.0
|
$.0
|
SUBTOTAL CASH SPENT
|
$.104,400
|
$.119,280
|
$.137,136
|
NET CASH FLOW
|
$.103,920
|
$.223,974
|
$.438,060
|
CASH BALANCE
|
$.207,840
|
$.447,947
|
$.980,040
|
1.4. Projected
Balance Sheet
ASSETS
|
2010
|
2011
|
2012
|
Cash
|
$.103,920
|
$.327,894
|
$.765,954
|
Accounts Receivable
|
$.10,000
|
$.10,000
|
$.10,000
|
Inventory
|
$.1,927
|
$.0
|
$.0
|
Other Current Assets
|
$.1,000
|
$.1,000
|
$.1,000
|
TOTAL CURRENT ASSETS
|
$.116,847
|
$.338,894
|
$.776,954
|
Long-term Assets
|
$.10,000
|
$.10,000
|
$.10,000
|
Accumulated Depreciation
|
$.0
|
$.0
|
$.0
|
Total Long-term Assets
|
$.10,000
|
$.10,000
|
$.10,000
|
TOTAL ASSETS
|
|||
Liabilities and Capital
|
|||
CURRENT LIABILITIES
|
2010
|
2011
|
2012
|
Accounts Payable
|
$.1,000
|
$.0
|
$.0
|
Current Borrowing
|
$.0
|
$.0
|
$.0
|
Other Current Liabilities
|
$.0
|
$.0
|
$.0
|
SUBTOTAL CURRENT LIABILITIES
|
$.1,000
|
$.0
|
$.0
|
Long-term Liabilities
|
$.3,444
|
$.3,444
|
$.3,444
|
TOTAL LIABILITIES
|
$.4,444
|
$.3,444
|
$.3,444
|
Paid-in Capital
|
$.30,000
|
$.20,000
|
$.22,222
|
Retained Earnings
|
$.61,473
|
$.280,099
|
$.666,879
|
Earnings
|
$.30,930
|
$.45,351
|
$.94,409
|
Total Capital
|
$.122,403
|
$.345,450
|
$.783,510
|
Total Liabilities and Capital
|
$.126,847
|
$.348,894
|
$.786,954
|
NET WORTH
|
$.122,403
|
$.345,450
|
$.783,510
|
7.5 Business Ratios
These business ratios are future estimates based upon current assumptions. Standard industry comparisons are for SIC code 5812, retail eating places.
RATIO ANALYSIS
|
||||
2010
|
2011
|
2012
|
Industry Profile:SIC?
|
|
SALES GROWTH
|
0.00%
|
23.00%
|
50.00%
|
6.96%
|
PERCENT OF TOTAL ASSETS
|
2010
|
2011
|
2012
|
|
Accounts Receivable
|
7.88%
|
2.87%
|
1.27%
|
5.39%
|
Inventory
|
1.52%
|
0.00%
|
0.00%
|
3.90%
|
Other Current Assets
|
0.79%
|
0.29%
|
0.13%
|
28.39%
|
Total Current Assets
|
92.12%
|
97.13%
|
98.73%
|
37.68%
|
Long-term Assets
|
7.88%
|
2.87%
|
1.27%
|
62.32%
|
Total Assets
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
Current Liabilities
|
22.50%
|
100.00%
|
100.00%
|
19.17%
|
Long-term Liabilities
|
77.50%
|
100.00%
|
100.00%
|
29.21%
|
Total Liabilities
|
3.63%
|
1.00%
|
0.44%
|
48.38%
|
Net Worth
|
$.122,403
|
$.345,450
|
$.783,510
|
51.62%
|
PERCENT OF SALES
|
2011
|
2011
|
2012
|
|
Sales
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
Gross Margin
|
233.18%
|
272.56%
|
299.17%
|
59.31%
|
Selling, General & Administrative Expenses
|
0.00%
|
0.00%
|
0.00%
|
39.09%
|
Total Operating Expenses
|
46.73%
|
37.99%
|
25.33%
|
2.75%
|
Profit Before Interest and Taxes
|
23.26%
|
27.57%
|
38.48%
|
1.59%
|
MAIN RATIOS
|
2011
|
2011
|
2012
|
|
Current
|
3.50%
|
2.72%
|
2.72%
|
1.26
|
Quick
|
0.87%
|
0.00%
|
0.00%
|
0.87
|
Total Debt to Total Assets
|
0.00%
|
0.00%
|
0.00%
|
3.27%
|
Pre-tax Return on Net Worth
|
395.74%
|
761.72%
|
829.91%
|
54.38%
|
Pre-tax Return on Assets
|
410.11%
|
279.70%
|
134.36%
|
7.17%
|
ADDITIONAL RATIOS
|
2011
|
2011
|
2012
|
Industry
|
Net Profit Margin
|
17.35%
|
20.68%
|
28.70%
|
$.0
|
Return on Equity
|
25.27%
|
13.13%
|
12.05%
|
0.00%
|
ACTIVITY RATIOS
|
2011
|
2011
|
2012
|
|
Accounts Receivable Turnover
|
11.22%
|
5.36%
|
3.58%
|
n.a
|
Collection Days
|
40.38
|
109.42
|
72.95
|
n.a
|
Inventory Turnover
|
3.60%
|
0.00%
|
0.00%
|
|
Accounts Payable Turnover
|
50%
|
50%
|
50%
|
|
Payment Days
|
672.65%
|
0.00%
|
0.00%
|
n.a
|
Total Asset Turnover
|
71.13%
|
57.83%
|
38.56%
|
n.a
|
n.a
|
||||
DEBT RATIOS
|
2011
|
2011
|
2012
|
n.a
|
Debt to Net Worth
|
3.63%
|
1.00%
|
0.44%
|
|
Current Liab. to Liab.
|
22.50%
|
0.00%
|
0.00%
|
n.a
|
LIQUIDITY RATIOS
|
2011
|
2011
|
2012
|
|
Net Working Capital
|
$.115,847
|
$.338,894
|
$.776,954
|
n.a
|
Interest Coverage
|
0.83%
|
0.57%
|
0.27%
|
n.a
|
ADDITIONAL RATIOS
|
2011
|
2011
|
2012
|
|
Assets to Sales
|
71.13%
|
57.83%
|
38.56%
|
n.a
|
Current Debt/Total Assets
|
0.79%
|
0.00%
|
0.00%
|
n.a
|
Acid Test
|
3.80%
|
1.02%
|
0.44%
|
|
Sales/Net Worth
|
68.64%
|
157.50%
|
238.15%
|
|
Dividend Payout
|
100.00%
|
100.00%
|
100.00%
|
n.a
|
