Business Plans Handbook: Pizza Businesses
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Business Plans Handbook - Gale
Business Plans Handbook
Business Plans Handbook, A Compilation of Business Plans Developed by Individuals Throughout North America
ISBN-13: 9781410365422
© 2017 Gale, Cengage Learning
While every effort has been made to ensure the reliability of the information presented in this publication, Gale, a part of Cengage Learning, does not guarantee the accuracy of the data contained herein. Gale accepts no payment for listing; and inclusion in the publication of any organization, agency, institution, publication, service, or individual does not imply endorsement of the editors or publisher. Errors brought to the attention of the publisher and verified to the satisfaction of the publisher will be corrected in future editions.
ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner.
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Gale, a part of Cengage Learning
27500 Drake Rd.
Farmington Hills, MI 48331-3535
Printed in the United States of America
1 2 3 4 5 6 7 20 19 18 17 16
Contents
Highlights
Introduction
Business Plans
Geno's Pizza & Pasta Restaurant
Pizza2go—go Inc.
Italy To You Inc.
Appendixes
Appendix A
Business Plan Template
Appendix B
Associations
Consultants
SBA Regional Offices
Small Business Development Centers
Service Corps of Retired Executives Offices
Venture Capital & Financing Companies
Appendix C
Glossary of Small Business Terms
Highlights
Business Plans Handbook (BPH) is a collection of business plans compiled by entrepreneurs seeking funding for small businesses throughout North America. For those looking for examples of how to approach, structure, and compose their own business plans, this volume presents sample plans for the following businesses:
Geno's Pizza & Pasta Restaurant
Pizza2go—go Inc.
Italy To You Inc.
Features and Benefits
This volume offers many features not provided by other business planning references including:
Business plans that represent an attempt at clarifying (for themselves and others) the reasons that the business should exist or expand and why a lender should fund the enterprise.
Extensive financial documentation required to solicit funding from small business lenders. You will find examples of Cash Flows, Balance Sheets, Income Projections, and other financial information included with the textual portions of the business plans.
A directory section that includes listings for venture capital and finance companies, which specialize in funding start-up and second-stage small business ventures, and a comprehensive listing of Service Corps of Retired Executives (SCORE) offices. In addition, the Appendix also contains updated listings of all Small Business Development Centers (SBDCs); associations of interest to entrepreneurs; Small Business Administration (SBA) Regional Offices; and consultants specializing in small business planning and advice. It is strongly advised that you consult supporting organizations while planning your business, as they can provide a wealth of useful information.
A Small Business Term Glossary to help you decipher the sometimes confusing terminology used by lenders and others in the financial and small business communities.
A Business Plan Template which serves as a model to help you construct your own business plan. This generic outline lists all the essential elements of a complete business plan and their components, including the Summary, Business History and Industry Outlook, Market Examination, Competition, Marketing, Administration and Management, Financial Information, and other key sections. Use this guide as a starting point for compiling your plan.
Introduction
Perhaps the most important aspect of business planning is simply doing it. More and more business owners are beginning to compile business plans even if they don't need a bank loan. Others discover the value of planning when they must provide a business plan for the bank. The sheer act of putting thoughts on paper seems to clarify priorities and provide focus. Sometimes business owners completely change strategies when compiling their plan, deciding on a different product mix or advertising scheme after finding that their assumptions were incorrect. This kind of healthy thinking and re-thinking via business planning is becoming the norm. The editors of Business Plans Handbook (BPH) sincerely hope that this publication is a helpful tool in the successful completion of your business plan, no matter what the reason for creating it.
New Business Opportunities
This publication offers business plans created by real people. BPH provides actual business plans written by entrepreneurs engaged in creative endeavors within the same industry. The business and personal names and addresses and general locations have been changed to protect the privacy of the plan authors.
Comprehensive financial documentation has become increasingly important as today's entrepreneurs compete for the finite resources of business lenders. Our plans illustrate the financial data generally required of loan applicants, including Income Statements, Financial Projections, Cash Flows, and Balance Sheets.
Enhanced Appendixes
In an effort to provide the most relevant and valuable information for our readers, we have updated the coverage of small business resources. For instance, you will find a directory section, which includes listings of all of the Service Corps of Retired Executives (SCORE) offices; Small Business Development Centers (SBDCs); Small Business Administration Regional Offices; venture capital and finance companies, which specialize in funding start-up and second-stage small business enterprises; associations of interest to entrepreneurs; and consultants, specializing in small business advice and planning. In addition, you will find a comprehensive glossary of business terms to help the small business planner navigate the sometimes confusing language of entrepreneurship. For your reference, we have also reprinted a business plan template used by small business counselors, which provides a comprehensive overview of the essential components of a business plan.
Comments Welcome
Your comments on Business Plans Handbook are appreciated. Please direct all correspondence, suggestions for future volumes of BPH, and other recommendations to the following:
Project Editor
Business Plans Handbook
Gale, a part of Cengage Learning
27500 Drake Rd.
Farmington Hills, MI 48331-3535
Phone: (248)699-4253
Toll-Free: 800-877-GALE
www.gale.com
Geno's Pizza & Pasta Restaurant
999 Alligator Way
Miami, FL 33109
Gerald Rekve
This business plan for Geno's Pizza & Pasta Restaurant—Miami reflects the opportunity to purchase the assets and leasehold improvements of the restaurant currently operating as Anthony's. The current owner is interested in selling the operations, as the store is not doing the volume he thought it would and he would like to get out of this location and the debt service he has incurred. My goal is to submit this business plan to his bank in the event he is unable to make loan or rent payments and defaults on the loan. We will be in a position to take over the SBA loan, and with additional funds added, convert this location to a profitable Geno's Pizza & Pasta Co. franchise restaurant.
1.0 EXECUTIVE SUMMARY
This business plan for Geno's Pizza & Pasta Restaurant—Miami reflects the opportunity to purchase the assets and leasehold improvements of the restaurant currently operating as Anthony's. The current owner is interested in selling the operations, as the store is not doing the volume he thought it would and he would like to get out of this location and the debt service he has incurred. My goal is to submit this business plan to his bank in the event he is unable to make loan or rent payments and defaults on the loan. We will be in a position to take over the SBA loan, and with additional funds added, convert this location to a profitable Geno's Pizza & Pasta Restaurant Co. franchise restaurant.
The location is only 1/4 of a mile away from the largest land moving project to put in a major shopping complex in the state of Florida. The rent is half what it would be for other retail shops in Miami, yet the location offers the same opportunity for sales. The recently completed Highway 123 offers access to hundreds of thousands of local residents, shoppers from outside the area, and travelers that use this new highway. Despite this high concentration of customers, there are no Italian restaurants in the area and therefore there is a tremendous need for an upscale family restaurant that offers items for both children and adults.
This restaurant will seat 150 customers and is the perfect size for a family operation. With the current leasehold improvements and quality kitchen equipment it would take very little to renovate this location to the legendary winning formula. The growth in numbers of middle to high income families in the Miami area is projected at over 30%. There is a need for a fine dining, family restaurant in the Miami area. It would be the perfect neighborhood restaurant in the perfect neighborhood.
Geno's Pizza & Pasta Restaurant in Miami will be the second location for Geno Brown who has operated a successful franchise unit in Miami, Florida for 20 years. Geno's Pizza & Pasta Restaurant is based out of Miami, and now has over 3 successful company and franchise locations in the United States.
Geno's will have a prime location, great food, a proven concept, super franchise support, no competition, a senior management and crew, a fantastic neighborhood marketing program, a huge catering base to build on, personalized service in a warm Italian imported grocery store atmosphere, and the support of the community resulting in a highly profitable restaurant.
1.1 Objectives
The goal is to purchase the current assets and leasehold improvements of Anthony's and convert the existing restaurant to a profitable and successful Geno's Pizza & Pasta Restaurant Co. franchise unit. I plan to duplicate the successful formula used at Geno's Pizza & Pasta Restaurant, Adam Crescent location, which I have owned and operated for over 20 years. Using the same strategies and having an in-depth management crew to back me up will ensure outstanding results at this new fast-growing location. My objectives are as follows:
Provide the highest quality Geno's Pizza & Pasta Restaurant food and service that the community has been receiving for over 20 years at the Adam Crescent location.
Create an atmosphere where each person can work as a team member, with clear goals and high standards that profit everyone.
Combine the corporate marketing strategies with my own to build volume quickly.
First year sales to hit between $1.7 and $2.4 million with 11% growth in first few years.
Gross margin of 71% with a net profit of 5% of total sales.
Maintain food and labor costs consistently.
Maintain and expand my outstanding reputation.
Remain a neighborhood family restaurant.
Be the first fine dining Italian Restaurant in the fastest growing community in Florida.
1.2 Mission
Geno's mission is to be a full service, family Italian restaurant offering affordable, high-quality Italian cuisine inspired by authentic family recipes. Our goal is to provide our customers with an entire dining experience that exceeds their expectations on every visit. We do this by recommending add-on items that will enhance their dining experience. Our restaurant is clean and the quality is always high.
We value the people who work for us. Quality employees make quality food, keep the restaurant cleaner, give better service, and stay employed longer because they like working at Geno's Pizza & Pasta Restaurant. We have found that friendly managers hire friendly crew people and friendly crew people attract customers.
1.3 Keys to Success
Geno's Pizza & Pasta Restaurant's name and reputation is well known in the area.
The products we serve are of the highest quality. We combine this quality with great service and atmosphere. We then add menu items that appeal to all ages of the family as well as single adults.
Current management staff and crew have a great deal of experience.
Location, Location, Location! Some people have named the intersection of Hwy 22 and 55 Street, the open road.
Miami is the fastest growing community in the entire state of Florida!
This shopping center location is three years old. Every spot in the center is filled and the main anchor is a Denny Gas & Confectionary store, the highest-quality service station chain in the area.
This location offers private rooms on a reservation basis. I have developed the bulk food and catering large parties' concept at my other location and plan to promote it with the party rooms.
A frequent diner program and birthday club will be available to promote repeat customers as well as a tool to track sales.
Management that treats every employee equally. We create an atmosphere where employees love coming to work and can earn good money.
Great employees make for a great restaurant.
2.0 COMPANY SUMMARY
Geno's Pizza & Pasta Restaurant in Adam Crescent has been very successfully serving the Adam Crescent area for 20 years. We have sponsored 25 Little League baseball teams, donated to thousands of events, worked with schools and churches to better the community, catered thousands of events in the area, and hired and worked with hundreds of young people, adults, and their families. Topic 5.3.1, Sales Forecast
shows our tremendous yearly sales growth rate over the last 20 years. This year is on track to be another record year.
Our Frequent Diner Program
is in place at Adam Crescent with over 4,000 customers who frequent the restaurant. This loyalty program rewards customers with a $45.00 Gift Certificate when they spend $150.00, as well as a Birthday and Anniversary cards to celebrate a meal with us. The program has been a huge success for the past three years, rewarding customers and insuring future repeat business. Ask anyone who lives in Miami and you will find we have developed quite a reputation in the community.
Geno's Pizza & Pasta Restaurant was founded in 1994, and they have built it to 4 locations in USA.
The Miami restaurant will reflect the intimate charm of an Italian Grocery Store with framed Italian prints and Italian American pop art. Both the menu and ambiance will appeal to an upscale customer as well as the entire family.
2.1 Start-up Summary
The Geno's facility would come with all equipment, food, liquor, leasehold improvements, employees, and management staff.
We would assume the current SBA loan of $125,000, and start-up expense of $250,000. With cash input from investors of $55,000 the loan balance using an SBA secured loan would be $500,000 at 9.5% interest over a 15-year term.
A starting bank account of $90,000 will be used, only if needed, for unexpected costs associated with the start up.
Start-up equipment list would include the following items: (quality used equipment will be purchased whenever possible to control costs, and then, only if equipment is in like-new condition)
Fifty quart Hobart mixer
Three Steam kettle
Refrigerated 4 drawer system
Freezer 2 drawer system
Pizza box refrigerated stand alone box
Dessert display case
Eight-burner commercial gas stove
Commercial Parmesan cheese grinder
Meat slicer
Flip top refrigerated 6-foot saute box
Stand up Freezer
Kitchen and dining room small wares
Less trade-in or sale of used equipment not needed in the current operations
3.0 PRODUCTS
Geno's Pizza & Pasta Restaurant's menu offers large pasta varieties and nine specialty chicken, veal, and seafood entries, along with an assortment of appetizers, sandwiches and salads, including the famous special salad
served in unlimited refills. It serves an interesting variety of wines, cocktails, and desserts to