1

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INDIAN RESTAURANT BUSINESS PLAN

1.0 Executive Summary

2.1
2.2
2.3
2.4
2.5

Company Ownership & Structure

History
Start up Funding
Source of Funds
Company Locations and Facilities

3.1 Service Description

3.2 Competitive Landscape
4.1
4.2
4.3
4.4
4.5
4.6
4.7

Target Market: Population, Household Statistics Summary

Target Market: Pusiness Statistics Summary
Target Market: Age & Race Demographics
Target Market: Income & Housing Demographics
Target Market: Education Profile
Target Market: Occupational Analysis of Population
Industry Analysis: Household Food Expenditure Analysis

5.1
5.2
5.3
5.4
5.5
5.6
5.7

Competitive Edge
Positioning
Advertising Strategy
Strategic Alliances
Sales Strategy
Sales Projections
Milestones

6.1 Financials: Pro-forma Income & Expense Statement

6.2 Financials: Pro-forma Balance Sheet

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1.0 Executive Summary

Welcome Restaurants USA Inc. a wholly owned subsidiary of Welcome Restaurants Private
Limited (Indian Parent Company) is looking to expand its operations by buying a 50% stake
in Indian Express Restaurant Inc., a New York corporation that currently owns and operates
a full service Indian restaurant in New York City. After the investment of $1,000,000 is
completed, Welcome Restaurants USA Inc. will look to expand the existing operations of
Indian Express and also look to open up to 2 more restaurants offering a delectable Indian
cuisine that blends foods from all parts of the Indian subcontinent. Given the excellent
management team and experience of the principals these ventures are sure to be profitable
and generate employment and revenues in the communities they serve.
2.1 Company Ownership & Structure
Welcome Restaurants USA Inc. (US subsidiary) is a New York State Corporation and is a
wholly owned subsidiary of Welcome Restaurants Private Limited a corporation based in
Bangalore, India with interests in hospitality. Welcome Restaurants USA Inc. will be making
an investment of $1,000,000 to buy a 50% stake of Indian Express Restaurant Inc., a New
York corporation.

2.2 History
Welcome Restaurants Private Limited is the Parent company of Welcome Restaurants USA
Inc. Over the years Welcome Restaurants Private Limited has developed an expertise in the
hospitality and restaurant business and is now looking to expand overseas. With this
strategic focus a United States subsidiary called Welcome Restaurants USA Inc. was
established in August of 2007. The purpose of the subsidiary is to grow the Welcome brand
internationally by making strategic acquisitions and growing organically by opening new
restaurants in the United States.

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2.3 Start up Funding

Welcome Restaurants USA Inc. will begin its expansion into the United States market by
making a strategic acquisition and buying a 50% stake in the operations of Indian Express
Restaurant Inc. a New York corporation. The funds will be used by Welcome Restaurants
USA Inc. to expand the existing operations of Indian Express Restaurant Inc. and also to
start two new restaurants in the New York metro area.
2.4 Source of Funds
Welcome Restaurants USA Inc. will be making the investment of $1,000,000 from its own
cash reserves that are derived from the hospitality interests of its parent company Welcome
Restaurants Private Limited in Mumbai, India.
2.5 Company Locations and Facilities
Welcome Restaurants USA Inc. will be purchasing a 50% stake in Indian Express Restaurant
Inc. located at 147 West, 16th Street between Park and Lexington Avenues, New York, NY
10016.
3.1 Service Description
Welcome Restaurants USA Inc. through its investment in Indian Express Restaurant Inc. will
be able to offer its clientele a unique blend of Indian cooking different from the typical
North or South Indian fare dished out by most restaurants. Using the concept of fusion
cooking, Welcome will be able to present unique and eclectic assortments of appetizers,
entrees and deserts that are rare to find in a typical Indian restaurant.
3.2 Competitive Landscape
With its incredibly diverse population New York City is able to support many restaurants
serving up different varieties of foods. The Indian full service restaurant is no different and
New York City currently boasts around 200 restaurants that serve some kind of India fare.
However of the 200 odd full service Indian restaurants the vast majority of them focus on
providing the traditional and dependable delicacies of North Indian cooking; around 20% of
the all Indian restaurants offer South India delicacies and very few of them are true
competitors to Welcomes Hotels USA Inc. Given the unique blend of foods from the entire
sub-continent Welcome Restaurants USA Inc. will be able to offer improved derivatives of
classic Indian cooking.
4.1 Target Market: Population, Household Statistics Summary
New York City is widely regarded as the most culturally diverse city in the United States with
a population that boasts residents from all over the world. Also New York City has a much
higher per capital income and median household income when compared to the average for
the country.

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4.1 Target Market: Population, Household Statistics Summary (cont'd)
Population & Household & Business statistics summary for New York, NY

Item

New York NY

United States

Resident total population estimate 2007

1,620,867

299,398,484

Resident population 2000

1,537,195

281,421,906

Resident population 1990

1,487,536

248,709,873

Resident population 1980

1,428,285

226,545,805

13.48%

32.16%

37.5

37.6

Civilian labor force 2007

916,053

151,428,000

Civilian labor force 2000

855,227

142,583,000

Civilian labor force 1990

780,346

125,840,000

Change in labor force 1990 - 2007

17.39%

20.33%

Households

772,957

108,954,329

1.98

2.6

$55,208

$44,334

$110,292

$34,471

Persons below poverty line

18.06%

12.70%

Male Population

47.73%

48.65%

Female Population

52.27%

51.35%

Married Population

39.34%

58.89%

Single Population

60.66%

41.11%

% Change in population (1980 to 2007)

Median Age

Household Size
Median Household Income
Income per Capita

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4.2 Target Market: Business Statistics Summary
Minority owned businesses are well represented in New York City as we can see with Black,
Hispanic and women owned firms running better than the national averages. Having a
diverse population is key to the success of Welcome Restaurants USA Inc. since Indian food
is most appealing to clients who prefer diversity in their food habits.
Retail sales per capita another measure of the spending power of local New York City
residents is $16,178 a good 57% above the national average retail sales per capita of
$10,615. This again bodes well for us in the restaurant business.
Business statistics summary for New York, NY

Item

New York, NY

United States

Black-owned firms, percent

12.40%

5.2%

Asian-owned firms, percent

14.20%

4.8%

Hispanic-owned firms

16.40%

6.8%

Women-owned firms

31.80%

28.2%

$10,950,335

$3,916,136,712

$140,669,286

$4,634,755,112

$25,904,575

$3,056,421,997

$16,718

$10,615

$10,714,578

$449,498,718

8790

1,838,903

Current Unemployment Rate

4.40%

5.50%

Sales Taxes

8.63%

6.00%

Manufacturers shipments ($1000)

Wholesale trade sales ($1000)
Retail sales ($1000)
Retail sales per capita
Accommodation and foodservices sales ($1000)
Building permits

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4.3 Target Market: Age & Race Demographics
The Age chart below highlights the fact that New York City has a good share of its
population between the ages of 18 and 65 a good 64% - higher than the national average
of 61%. We believe that is an important element of success in the restaurant business since
this is the age group that is most likely to have disposable income and eat away from their
homes.

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The race graph below simply reiterates the earlier mentioned diversity that New York City
has come to be known for. With 24% of its population claiming Hispanic origin and 11% and
18% claiming Asian and Black heritage, NYC offers restaurants serving Indian foods like
ours an excellent client base.

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4.4 Target Market: Income & Housing Demographics
The Income distribution of households in New York City shows a substantial amount of
households earning between $35k and $100k what is very important however is to
understand that in New York City the composition of households is very different from the
rest of the country. For example only 39% of the population in New York City is married
versus 52% for the national average. A lot more single people means a lot less cooking at
home!
Estimated Households by Income class for New
York, NY

Income Category
Less than 15k
Between 15k and 25k
Between 25k and 35k
Between 35k and 50k
Between 50k and 75k
Between 75k and 100k
Between 100k and 150k
Between 150k and 250k
Between 250k and 500k
Greater than 500k

New
York,
NY

United
States

18.12%
8.97%
8.27%
11.73%
14.69%
9.64%
11.74%
8.61%
4.46%
3.78%

13.64%
11.21%
11.46%
15.84%
19.28%
11.53%
10.70%
4.43%
1.31%
0.61%

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When the value of owner occupied housing metrics is compared we can see that New York
City is way ahead of the rest of the country with most of its housing stock valued higher
than $300k. It has always been expensive to purchase a home in New York City due to the
relatively higher values of property and we believe that this strongly points to the economic
strength and vitality in the local market place a very important element for us in the
restaurant business.
New York, NY - Owner occupied housing units analysis
Value
Less Than $20k
$20k to $39k
$40k to $59k
$60k to $79k
$80k to $99k
$100k to $149k
$150k to $199k
$200k to $299k
$300k to $399k
$400k to $499k
$500k to $749k
$ 1mil or more

New York, NY

United States

1.76%
1.64%
0.68%
0.33%
0.56%
2.42%
4.79%
10.50%
9.86%
9.27%
15.85%
30.96%

3.01%
4.37%
5.74%
7.07%
8.41%
19.74%
14.06%
16.59%
8.21%
4.53%
4.75%
1.86%

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4.5 Target Market: Education Profile
With more 4 year college students and graduates than the national average, New York City
easily stands out as having a population of relatively better educated citizens. For
restaurants serving ethnic cuisine like Indian foods this is a very important element in the
marketplace. We strongly believe that fusion Indian cooking is well received by clients with
relatively higher education and economic backgrounds.
New York, NY - Education profile of population
Education

New York, NY

United States

School Expenditure
Pupil / Teacher Ratio
Students per Librarian
Students per Counselor

$7,461
20
1441
597

$6,058
15.9
907
546

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3.45%
25.48%
23.06%
77.69%

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2 yr College Graduates
4 yr College Graduates
Graduate Degrees
High School Graduates

8.22%
15.16%
7.16%
79.62%

4.6 Target Market: Occupational Analysis of Population

A quick look at the occupations of the New York City residents clearly shows a relatively high
proportion of the workforce involved in Management and Professional occupations. Since the
office crowd is a very important element of our revenues and brings in almost 40% of our
total income, we think that this demographic pattern works very well in our favor.
New York, NY - Occupation analysis of population
Occupation
Management, Business & Financial Operations
Professional and Related Occupations
Service
Sales & Office
Farming, Fishing & Forestry
Construction, Extraction & Maintenance
Production & Transportation

New York, NY

United States

21.44%
33.76%
12.73%
23.54%
0.03%
2.35%
6.16%

13.61%
20.24%
14.75%
26.74%
0.74%
9.48%
14.44%

4.7 Industry Analysis: Household Food Expenditure Analysis

In the following table we have analyzed the major trends that affect our industry and that is
the amount spent by households. While the larger survey deals with monies spent by a

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household on every item, we have decided to focus on the part that matters the most to us
and that of course the amount of money spent by households nationally on foods away from
home.
In 1997 we find that out of the total 104 million households in the nation the
annual expenditure was approximately $33k per household. Of this $2,876 or
8.50% of the total household expenditure was spent on foods consumed at home.
$1,823 or roughly 5.40% was spent on foods away from home. Also, $ 309 or
0.90% was spent on alcoholic beverages.

average
roughly
Another
roughly

When we look at 2007 we find that out of the 118 million households in the nation, the
average annual expenditure is $48,398. Of this $ 3,417 or 7.06% of the total expenditure
was spent on food consumed at home. Another $2,694 or roughly 5.60% was spent on food
away from home. Alcoholic beverages consumption remained roughly the same at 1% or
$497 in 2007.
The most important trend that matters to us is of course the expenditure on foods away
from home. It is significant to note that while this expense of 5.60% of total expenditure
does not mean that all the money is spent on full service restaurants let alone fine Italian
dining, it does however show that the consumers preferences nationally towards eating out
have not changed significantly between 1996 and 2007.
Clearly, as long as this trend of consumption of food away from home continues, all food
purveyors including fast food shops, limited service restaurants and full service restaurants

like us will do well. It is important to note that the 10 year period covered above does not
cover a protracted recession but does include the slowdown of 2001 2002 during which
the spending habits of the national population did not change towards outside food
consumption.
Average Annual Household Food Expenditures: 1997 to 2007

Year

No. of
households
(000)

Avg. Annual
Expenditure

Expenditure:
Expenditure: food away from
food at home
home

1997

104,212

$33,797

$2,876

1998

105,576

$34,819

$2,880

1999

107,182

$35,535

2000

108,465

$36,995

2001

109,367

2002
2003

Total Expenditure on food

Expenditure on Alcoholic beverages

$1,823

$4,699

$309

$1,921

$4,801

$309

$2,780

$2,030

$4,810

$309

$2,915

$2,116

$5,031

$318

$38,045

$3,021

$2,137

$5,158

$372

110,339

$39,518

$3,086

$2,235

$5,321

$349

112,108

$40,677

$3,099

$2,276

$5,375

$376

2004

115,356

$40,817

$3,129

$2,211

$5,340

$391

2005

116,282

$43,395

$3,347

$2,434

$5,781

$459

2006

117,356

$46,409

$3,297

$2,634

$5,931

$426

2007

118,843

$48,398

$3,417

$2,694

$6,111

$497

Food away from home as a % of Total Household Expenditure in 1997

5.39%

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Food away from home as a % of Total Household Expenditure in 2007

5.1 Competitive Edge

We believe that in todays competitive full service restaurant business there are three things
that are keys to success:

Location and Leases

Excellent and diverse menu priced reasonably

Ambience and customer service

We believe that at Welcome Restaurants USA we have all three elements down pat! Our
choice of locations is the city of New York. A business friendly local government coupled
with a highly educated, well heeled population is the perfect venue for fine Indian dining
offered by Welcome Restaurants USA and Indian Express Restaurants.
Our diverse menu selection during both lunch and dinner hours has been developed after
years of experience in the industry by our chefs. Care has been taken to pick crowd
pleasers and house specials that are not easy to find in Indian dining and the fare is priced
very reasonably in line with local competitors.
5.2 Positioning
We are positioning ourselves to market to the middle to upper middle class clientele of well
heeled working professionals who live and work in New York City. Our typical customer is

5.3 Advertising Strategy

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well educated having a graduate degree, working and/or living in New York city, looking for
a tasteful and different Indian dining experience than what is offered by the local deli.

Welcome Restaurants USA Inc. will advertise using all possible forms of media including
print, radio and television.

Our media advertising will be focused on publications serving the Indian community
India Abroad and Desi Talk.

Our online advertising will be focused on websites like Citysearch.com, yelp.com,

restaurant.com and seamless web.

Local promotions will also include sponsorship of local charity events and
participating in food drives and other local causes.

5.4 Strategic Alliances

We currently have an alliance with Seamless web that allows clients to place their orders via
the web. We have been able to mind a steady base of customers from local firms like Credit
Suisse, JP Morgan Chase, Metlife and other non-institutional clients as well.
5.5 Sales Strategy
There are two ways to approach sales one is go with volume and this is the typical modus
operandi of the fast food industry; many full service restaurants also use this approach. The
other is go with quality service at market rates but focus on building a richer customer
dining experience so that we can cultivate a permanent relationship with the customer. We
favor the later approach at Welcome Restaurants USA Inc.
5.6 Sales Projections
We believe that it is very important to be realistic in the projection of sales in the planning
process and have decided to look at three possible market scenarios in our sales
projections.

Slow market: As the words imply, this would indicate a weak market for the full
service restaurant business as was the case after the attack of September 11, 2001
where the full service restaurant business suffered its worse days in recent memory.
This experience is also possible during a recession where folks decide to be cautious
with their disposable income.

Good market: This would be a regular and normal environment during which healthy
business activity can be experienced by us in the full service restaurant business.

Great market: This would suggest an excellent operating environment with the
consumer feeling very confident and spending on food away from home a lot more
than normal. The dot com era of the late nineties was such an operating
environment where full service restaurants did extremely well.

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5.6 Sales Projections (cont'd)

Also indicated in our projections are the seasonal adjustments that are normal in our
business with January to March being tepid, business picking up in June and July,
and of course the best time for us being the holiday months of November and
December.
We have also indicated projections for 1, 2 and 3 restaurants. Our first initiative is to
the expand the operations of Indian Express Restaurant Inc. Once we have
consolidated our investments and operations there we intend to expand this
investment into one or two new operations.

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Welcome Restaurants USA Inc.

Sales Projections: 2009
SLOW MARKET

GOOD MARKET

GREAT MARKET

NO. OF RESTAURANTS NO. OF RESTAURANTS

1

NO. OF RESTAURANTS
1

Jan $75,000 $150,000 $225,000 $93,750 $187,500 $281,250 $107,813 $215,625

$323,438

Feb $90,000 $180,000 $270,000 $112,500 $225,000 $337,500 $129,375 $258,750

Ma
r $105,000 $210,000 $315,000 $131,250 $262,500 $393,750 $150,938 $301,875

$388,125

$1,012,5
00
$388,125 $776,250
Q1 $270,000 $540,000 $810,000 $337,500 $675,000
Ap
r $105,000 $210,000 $315,000 $131,250 $262,500 $393,750 $150,938 $301,875
Ma
y $120,000 $240,000 $360,000 $150,000 $300,000 $450,000 $172,500 $345,000

$452,813
$1,164,375

$452,813
$517,500

Jun $150,000 $300,000 $450,000 $187,500 $375,000 $562,500 $215,625 $431,250

$646,875

$1,125,0
$1,406,2
$1,078,1
00
$468,750 $937,500
50
$539,063
25
Q2 $375,000 $750,000

$1,617,188

Jul $135,000 $270,000 $405,000 $168,750 $337,500 $506,250 $194,063 $388,125

Au
g $105,000 $210,000 $315,000 $131,250 $262,500 $393,750 $150,938 $301,875

$582,188

Sep $135,000 $270,000 $405,000 $168,750 $337,500 $506,250 $194,063 $388,125

$582,188

$1,125,0
$1,406,2
$1,078,1
00
$468,750 $937,500
50
$539,063
25
Q3 $375,000 $750,000

$1,617,188

$452,813

Oct $135,000 $270,000 $405,000 $168,750 $337,500 $506,250 $194,063 $388,125

No
v $150,000 $300,000 $450,000 $187,500 $375,000 $562,500 $215,625 $431,250

$582,188

Dec $195,000 $390,000 $585,000 $243,750 $487,500 $731,250 $280,313 $560,625

$840,938

$1,440,0
$1,200,0 $1,800,0
$1,380,0
00
$600,000
00
00
$690,000
00
Q4 $480,000 $960,000

$2,070,000

$1,500,0 $3,000,0 $4,500,0 $1,875,0 $3,750,0 $5,625,0 $2,156,2 $4,312,5

00
00
00
00
00
00
50
00

$6,468,750

Tot

$646,875

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5.6 Sales Projections (cont'd)
Welcome Restaurants USA Inc.
Sales Projections: 2010
SLOW MARKET

GOOD MARKET

GREAT MARKET

NO. OF RESTAURANTS

NO. OF RESTAURANTS

NO. OF RESTAURANTS

78,750

$157,500 $236,250

$196,875 $295,313 113,203 $226,406

$339,609

Feb

94,500

$189,000 $283,500 118,125 $236,250 $354,375 135,844 $271,688

$407,531

Mar

110,250 $220,500 $330,750 137,813 $275,625 $413,438 158,484 $316,969

$475,453

Q1

283,500

$815,063

$1,222,594

Apr

110,250 $220,500 $330,750 137,813 $275,625 $413,438 158,484 $316,969

$475,453

May

126,000 $252,000 $378,000 157,500 $315,000 $472,500 181,125 $362,250

$543,375

Jun

157,500 $315,000 $472,500 196,875 $393,750 $590,625 226,406 $452,813

$679,219

Q2

393,750

$1,132,031

$1,698,047

Jul

141,750 $283,500 $425,250 177,188 $354,375 $531,563 203,766 $407,531

$611,297

Aug

110,250 $220,500 $330,750 137,813 $275,625 $413,438 158,484 $316,969

$475,453

Sep

141,750 $283,500 $425,250 177,188 $354,375 $531,563 203,766 $407,531

$611,297

Q3

393,750

$1,698,047

Oct

141,750 $283,500 $425,250 177,188 $354,375 $531,563 203,766 $407,531

$611,297

Nov

157,500 $315,000 $472,500 196,875 $393,750 $590,625 226,406 $452,813

$679,219

$567,000

$787,500

$787,500

$850,500

$1,181,250

$1,181,250

98,438

Jan

354,375

492,188

492,188

$708,750

$984,375

$984,375

$1,063,125

$1,476,563

$1,476,563

407,531

566,016

566,016

$1,132,031

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Dec

204,750 $409,500 $614,250 255,938 $511,875 $767,813 294,328 $588,656

$882,984

Q4

504,000

$1,449,000

$2,173,500

Total 1,575,000 $3,150,000 $4,725,000 1,968,750 $3,937,500 $5,906,250 2,264,063 $4,528,125

$6,792,188

630,000

$1,260,000 $1,890,000

724,500

Page

$1,008,000 $1,512,000

5.6 Sales Projections (cont'd)

Welcome Restaurants USA Inc.
Sales Projections: 2011
SLOW MARKET

GOOD MARKET

NO. OF RESTAURANTS
1

GREAT MARKET

NO. OF RESTAURANTS
1

NO. OF RESTAURANTS
1

Jan

$82,688 $165,375 $248,063 $103,359 $206,719 $310,078 $118,863 $237,727

$356,590

Feb

$99,225 $198,450 $297,675 $124,031 $248,063 $372,094 $142,636 $285,272

$427,908

Mar $115,763 $231,525 $347,288 $144,703 $289,406 $434,109 $166,409 $332,817

$499,226

Q1

$297,675

$855,816

$1,283,723

Apr

$115,763 $231,525 $347,288 $144,703 $289,406 $434,109 $166,409 $332,817

$499,226

May $132,300 $264,600 $396,900 $165,375 $330,750 $496,125 $190,181 $380,363

$570,544

$595,350

$893,025

$372,094

$744,188

$1,116,281 $427,908

Jun

$165,375 $330,750 $496,125 $206,719 $413,438 $620,156 $237,727 $475,453

$713,180

Q2

$413,438

$1,240,313 $516,797 $1,033,594 $1,550,391 $594,316 $1,188,633

$1,782,949

Jul

$148,838 $297,675 $446,513 $186,047 $372,094 $558,141 $213,954 $427,908

$641,862

Aug

$115,763 $231,525 $347,288 $144,703 $289,406 $434,109 $166,409 $332,817

$499,226

Sep

$148,838 $297,675 $446,513 $186,047 $372,094 $558,141 $213,954 $427,908

$641,862

Q3

$413,438

$1,782,949

$826,875

$826,875

$1,240,313 $516,797 $1,033,594 $1,550,391 $594,316 $1,188,633

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$148,838 $297,675 $446,513 $186,047 $372,094 $558,141 $213,954 $427,908

$641,862

Nov

$165,375 $330,750 $496,125 $206,719 $413,438 $620,156 $237,727 $475,453

$713,180

Dec

$214,988 $429,975 $644,963 $268,734 $537,469 $806,203 $309,045 $618,089

$927,134

Q4

$529,200 $1,058,400 $1,587,600 $661,500 $1,323,000 $1,984,500 $760,725 $1,521,450

$2,282,175

Total 1,653,750 $3,307,500 $4,961,250 2,067,188 $4,134,375 $6,201,563 2,377,266 $4,754,531

$7,131,797

Page

Oct

19
Page
5.7 Milestones

Presented here are the key milestones in our business plan for Mayflower Restaurants USA
Inc. Upon receiving the regulatory okay for Mr. Patel from the USCIS we will begin the
process making our investment into Indian Express Restaurants Inc. and also the expansion
of the business interests into other restaurants as described earlier.

WELCOME RESTAURANTS USA INC. - PROJECT TIMELINE

Week of
10/6/2008
10/13/2008
10/20/2008
10/27/2008
11/3/2008
11/10/2008
11/17/2008
11/24/2008
12/1/2008

20

12/8/2008
12/15/2008

Page

12/22/2008
12/29/2008
1/5/2009
1/12/2009
1/19/2009
1/26/2009
2/2/2009
2/9/2009
2/16/2009
2/23/2009
3/2/2009
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009

No. Name of Project

Starting
Week

Ending Week

Responsible Party

1 Filing of L-1 Petition

10/6/2008

10/13/2008

Attorney

2 Processing & Approval of L-1

USCIS

10/20/2008

12/29/2008

3 Indian Express Investment

1/5/2009

1/5/2009

Welcome Hotels USA Inc.

4 Expansion of existing business

1/12/2009

5/4/2009

Satish Patel

5 New Site Research

4/6/2009

ongoing

Satish Patel

6 Market Research

4/6/2009

ongoing

Satish Patel

7
8
9

6.1 Financials: Pro-forma Income & Expense Statement

As indicated in our earlier discussions, we expect that with the opening of other restaurants
the total income for our combined new operations will be substantial more than the current
income for the Indian Express Restaurant that will be controlled by Welcome Restaurants
USA Inc. Our pro-forma financials have been put together with a very conservative growth
with only one of restaurant to give investors and banks a better idea of the profitability in an
average environment with a steady growth rate consistent with our peers in the restaurant

Page

21

business. We would like to point out however that we anticipate a significantly better sales
picture as indicated in our sales projections.

Welcome Restaurants USA Inc.

Proforma Income & Expense Statement
2009
SALES
Cost of Goods Sold
Gross Profit
Gross Margin %

2010

$1,875,000 $1,968,750
$656,250

$669,375

$1,218,750 $1,299,375
65.00%

66.00%

2011
$2,067,188
$682,172
$1,385,016
67.00%

OPERATING EXPENSES
Accounting & Legal Fees

$9,375

$9,656

$9,946

Advertising

$18,750

$19,688

$20,672

Auto Expenses

$5,438

$5,546

$5,657

Bad Debts

$18,750

$18,938

$19,127

Bank charges

$5,250

$5,303

$5,356

Credit card processing

$37,500

$38,250

$39,015

Catering & Banquet Supplies

$4,688

$4,781

$4,877

Cleaning / Janitorial Services

$5,625

$5,794

$5,968

Depreciation

$34,700

$34,700

$34,700

Charitable Donations

$5,000

$5,000

$5,000

Employer Taxes

$33,240

$34,902

$36,647

Entertainment

$5,625

$5,738

$5,852

Extermination

$4,875

$5,021

$5,172

Flowers & Decoration

$4,688

$4,828

$4,973

Gifts

$14,063

$14,063

$14,063

Gross Wages

$349,891

$367,385

$385,754

Insurance

$18,750

$19,313

$19,892

Kitchen Utensils

$4,688

$4,828

$4,973

Linen & Laundry

$5,250

$5,408

$5,570

Miscelleaneous Expenses

$5,063

$5,164

$5,267

Musician / Music

$5,625

$5,738

$5,852

Paper & Printing Services

$6,563

$6,694

$6,828

Rent

$210,000

$220,500

$231,525

Office Expenses

$4,688

$4,922

$5,168

Office Supplies

$10,000

$10,200

$10,404

Subscriptions, Licenses & Fees

$4,125

$4,331

$4,548

Security & Computer maintenance

$2,813

$2,869

$2,926

Tableware / Cutlery

$5,625

$5,794

$5,968

Telephone

$3,750

$3,788

$3,825

Training

$15,000

$15,750

$16,538

Utilities

$4,500

$4,725

$4,961

Web Design

$2,813

$2,953

$3,101

$866,705

$902,566

$940,122

TOTAL OPERATING EXPENSES

22

$352,045

$396,809

$444,893

Interest Expenses

$14,134

$12,419

$10,563

Provisional Taxes

$123,216

$138,883

$155,713

NET INCOME

$214,696

$245,507

$278,618

11.45%

12.47%

13.48%

% of Sales

Page

Profit before Interest & Taxes

6.2 Financials: Pro-forma Balance Sheet

Welcome Restaurants USA Inc.
Proforma Balance Sheet
A S S E T S

2009

2010

2011

CURRENT ASSETS
Cash
Accounts Receivable
Inventory
TOTAL CURRENT ASSETS

$1,011,803 $1,269,594
$4,688

$4,922

$20,000

$20,000

$1,036,491 $1,294,516

$1,558,637
$5,168
$20,000
$1,583,805

FIXED ASSETS
Furniture, Fixtures & Equipment

$347,000

$347,000

$347,000

Accumulated Depreciation

-$34,700

-$69,400

-$104,100

Security Deposit

$35,000

$35,000

$35,000

$347,300

$312,600

$277,900

TOTAL FIXED ASSETS

TOTAL ASSETS

$1,383,791 $1,607,116

$1,861,705

L I A B I L I T I E S & C A P I T A L

2009

2009

2010

$3,750

$3,938

$4,134

Taxes Payable

$0

$0

$0

Other Current Liabilities

$0

$0

$0

$3,750

$3,938

$4,134

$165,345

$142,976

$118,750

CURRENT LIABILITIES
Accounts Payable

TOTAL CURRENT LIABILITIES

LONG TERM LIABILITIES
Long-term loans outstanding

CAPITAL
Common Stock
Retained Earnings

23

$165,345

$142,976

Page

TOTAL LONG-TERM LIABILITIES

$1,000,000 $1,000,000
$214,696

$460,202

$118,750

$1,000,000
$738,821

TOTAL CAPITAL

$1,214,696 $1,460,202

$1,738,821

TOTAL LIABILITIES & CAPITAL

$1,383,791 $1,607,116

$1,861,705