Business Plan

Your Restaurant

Mission Statement

Your Restaurant will fulfill a personal goal of providing the target market with a
dining experience, not just another place to eat. While southern style comfort
food will be the product, emphasis will be placed on atmosphere and legendary
southern hospitality. A guest will feel they have been to a grand family dinner on
a Sunday afternoon at a place resembling the southern farms of the past.
The Concept

Open a restaurant that will offer the guest a unique dining experience not available in the
target market area. Your Restaurant will give the diner a chance to re-live memories or
experience southern family cooking and real hospitality from years gone by.

Key elements of the dining experience will be;

• Southern style cooking with recipes from old cookbooks and perennial favorites.
• The facility will be adorned with old cooking utensils and decorations that could
have been in a southern mansion in the late 1800’s and early 1900’s.
• Servers and staff will be trained to act as if the guest was coming to their home
for a Sunday dinner. Uniforms may conform to clothing of the period.
• Parties of two or more will be served “family style” with sides in large self-
serving bowls.
• The location will be in a middle income area with an average age in the post baby
boomer era.
• Optimum location would be an old house that could be transformed into a 100
seat restaurant. Regulatory issues may prevent the optimum location and the
alternative will be a facility in a medium to high traffic area with the target market
demographics.

The Menu

Menu items will reflect the days when fresh vegetables, proteins and staples were locally
produced, bartered or grown at home.

Center of the plate offerings will include;

• Fried Chicken
• Meatloaf
• Pork Chops
• Fish

Side dishes will be freshly prepared seasonal items such as;

• Greens
• Fried green tomatoes
• Eggplant, yellow squash and zucchini
• Pole beans and ham
• Corn on the cob (seasonal)

Each main entrée will be served with a choice of potatoes like;

• Scalloped potatoes
• Mashed potatoes

Baked goods and desserts will be;

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 • Southern potato rolls
• Cobblers
• Rich ice cream
• Apple Pies and regional favorites like pecan, mud pie and peach

Sandwiches will include;

• Turkey Hot Brown
• Meatloaf
• Pulled Pork Barbecue
• Classics such as chicken salad, egg salad, clubs and basic hamburgers will also be
included on the lunch menu.

Attention and detail in replicating the flavors and freshness of farm preparation will be
given to all food products. Lunches will average $5.50 to $7.50 and Dinner entrees will
average $8.00 to $11.00.

The Location

Plans will include a facility that can provide seating for 100 guests comfortably. In
addition, kitchen and storage areas must be able to support the concept with the ability to
always have enough stock for three operational days.

Minimum square footage required will be a maximum of 4000 ranging downward to a

minimum of 3000, dependent on layout, access and existing structures.

Traffic patterns should allow easy access from each direction and parking must allow for
30 guest vehicles plus staff. Guests must have access from parking areas that is well lit
and secure within sight of the front door.

Surrounding residences will be homes in the $200,000 plus category. Average age group
will be in the 40 to 50 range. The target area may have a higher average age, but lower
age groups may not be as receptive to the format.

Positive, but not mandatory, additions to the location would be outdoor seating and the
ability to expand in the future.

An existing location is optimum if it met all the minimum requisites. Lease requirements
include a long term with the option to renew and limits on common area maintenance (if
any).

Equipment Requirements

The needs listed are presumed to be available readily in a format that will take advantage
of existing utilities available at the selected location. Natural gas and electric are the
power sources.

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Kitchen

To execute the concept menu, the following is necessary;

• Two forty pound fryers
• One 36 inch flattop grill with broiler under
• Double convection oven (full sheet pan size)
• Four burner stove
• 48 inch food warmer for line with three full pan compartments
• One 48 inch prep refrigerator for line with 24 sixth pan compartments
• Hood system for exhaust and make up air

Kitchen refrigeration and storage;

• Two double door refrigerators (54”)
• One double door freezer (54”)
• One 60” prep refrigerator with compartments for 48 pans.
• Two 48 inch prep tables.
• 120 square feet of shelving for storage

Optimal configuration could include a walk-in refrigerator/freezer.

Other;
• Low temp dishwashing machine
• Triple sink
• Food pick up station with garnish and salad area
• One mop sink

Front of the house requirements;

• Seating for 100 with possible combination of booths and tables
• Service settings for 200 people
• Four burner coffee machine
• Iced tea maker
• Fountain service
• Two door counter refrigerator for server station storage
• Smallwares for service and similar utensils

Costs and Initial Start-up

The assumptions below are based on all equipment and supporting smallwares being
purchased new. Variations and savings could occur if a suitable existing facility is found.
Used equipment may be carefully considered.

Kitchen Equipment – Based on the concept and discussions above the estimated costs
would be $43,200. Options could include leasing and some combination of buying and
leasing.

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Front of the house – The estimated total cost for furnishing and operating the front of
the hose would be $22,000. This number is assuming some of the equipment being
commonly supplied by the distributors. Examples include fountain service, coffee and
iced tea machines. This number does not include decorations and similar matters for
facility improvements.

There also is no factor for possible savings from purchasing used equipment.

Facility Equipment, Improvement and Décor

The assumption has to be made that the leased or acquired facility will be in a usable
condition with heating, air conditioning, painted walls, plumbing and electrical circuits
ready to use. If any of these items are not part of the location acquisition, they must be
added to the financial plan.

Particular attention to kitchen area power is critical. Space must have 220 volt, 100 amp
service to the location. Gas must either be already available or lines run for installation at
the street.

POS Stations and Computer – Two POS stations and a server will require an
investment of approximately $15,000. This includes a kitchen printer and networking
with wi-fi capability. Another $4000 will be required for a front counter and supporting
equipment such as copier, fax and color printer combination. Software additions will be
$1000.

Décor and Ambiance – The concept calls for old equipment and home cooking
equipment to be displayed. It also may include signs of the period and pictures. Many of
the items may be considered to be antiques. Others may be replicas. Estimated cost is
$10,000. A music system will cost about $2000.

Colors will be muted pastels trimmed with wood grained accents.

Exterior – Plants and entry improvements will be approximately $1500.

The total estimate to finish the interior as outlined above is $33,500.

Financial Planning

As the concept is designed and outlined in this business plan, Your Restaurant will have
100 seats and operate from 11 AM to 8 PM daily. At this time there is no plan to sell
alcohol or tobacco products.

Lunch patrons will spend an average of $7.75 per person. Your Restaurant will have 130
lunch guests per day from 11 AM until dinner service starts at 5 PM.

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Diner guests will spend an average of $9.90 per person and the restaurant will have an
average of 150 per day.

Total average revenue per day will be $2492.50 for annual sales of $909,762.50. The
averages will be met after the initial start up period and reach the goal in six months from
opening.

Profit and Loss Projections – Below is the estimates for the restaurant based on known
factors and estimated costs outlined below.

As exact costs and other expenses become known, the P&L will be revised according to
the new data.

Profit and Loss Statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Sales 37,387. 45,450 53,020 60,600 68,232 75,813
Cost of goods 10,468 12726 14845 16968 19105 21227
Salaries 30,000 30000 30000 30000 30000 30000
Operating Expense 15,475 15475 15475 15475 15475 15475
Profit (Loss) (18,556) (12,751) (7310) (1843) 3682 9111

Expense Estimates
• Food & Beverage Costs – 28% of gross sales
• Rent Target – $6000 per month (triple net- includes taxes and insurance)
• Advertising/Marketing - $2200 per month after initial start up
• Staff/Management/Related Taxes & Benefits – $30,000 per month
• Utilities – $2275 per month
• Insurance – $1500 per month
• Professional Fees/Accounting/Payroll – $500 per month
• Cleaning, Maintenance, Smallwares, Repairs – $900 per month
• Equipment Replacement, Computer Maintenance and Supplies – $600
• Misc. – $1500 per month

Total Loss for the period shown – ($26,667)

Notes to the P&L – the assumptions on expenses are based on fixed costs and a full staff
at all times. There may be some savings for lower sales such as theoretic less use of
utilities, cutting some staff early and similar matters. However, the early stages of the
restaurant must maintain the ability to give the customer the full experience at all times to
keep the initial growth curve going.

There has been no calculations for price adjustments that may occur to key menu items
during the six months shown. Additional revenues may result.

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Cash Flow Statement
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Funds Collected 37,387. 45,450 53,020 60,600 68,232 75,813
Cost of goods 21,000 13,990 16,200 18,600 20900 23300
Salaries 30,000 30000 30000 30000 30000 30000
Operating Expense 15,475 15475 15475 15475 15475 15475
Cash Flow (29098) (14015) (8655) (3475) (1857) 7038

Cash Flow Assumptions

• Funds Collected – the money will be received the day of the sale. Credit card
purchases can be added after establishing a processing company and estimated lag
time until the money is funded in Your Restaurant’s account.
• Cost of goods – at all times an inventory must be kept for three days of projected
business. This is to handle any unexpected growth or emergencies where
deliveries could not be made. The first month’s cost of goods reflects initial
inventory for the opening day and subsequent months.

Total Negative Cash Flow for the six month period – ($50,062)
Approximate break even is $64,000 per month or $2133 per day in sales.

Potential Cash Requirements

The total cash for items listed in previous sections (cash flow and equipment) is
$115,262.

Additional cash needs include;

• Most property leases will require a one month deposit plus escrow of one month’s
rent for an additional $12,000.
• It will be at least two months before the restaurant can be operating while making
improvements. Total cash needs for fixed costs during this period for rent, utilities
and consumables will be an estimated $15,000.
• Salaries and wages for training and preparation for the opening is projected to be
$10,000.

Maximum cash requirements now total $152,262. An additional $25,000 reserve or

borrowing ability should be available for unplanned events and emergency needs.

Sources of Cash

There are options for the funding of Your Restaurant. They include;

• Owner’s savings of $50,000

• Leasing of major equipment in the amount of $50,000
• Bank loan of the remaining amount of $52,262 plus a line of credit for the
emergency needs.

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Any loan would be secured by the assets of Your Restaurant.

It should be noted that the cost of funds must be added to the expenses in the projections
above based on the terms of the funding agreement. That will change the requirements to
an unknown additional amount. The payments (if any) should be added to funds required.

Owner may want to consider investors and/or partner(s) as a possible source of funds.

Marketing Plan for Your Restaurant

Your Restaurant will have an initial Marketing Plan that will encompass a number of
actions to coincide with the 30 day period immediately following a “soft” opening. The
plan will include all three basic functions of marketing including communicating our
message, selling our product and delivering the product as our guests expect.

Specifics of the 30 day plan are:

(Note: See Forms Appendix, Marketing Checklist).

• Communicating our message

o Direct Mail – Send a flyer announcing opening to the immediate area in
zip codes representing 5000 recipients.
o News Releases – Send a release to all media sources announcing opening
to newspaper, radio, television and magazine business editors.
o Newspaper Ads – Announcement ad in largest daily newspaper to run
twice per week for 30 days in entertainment section.
o Personal Calls – Call on all businesses in a one mile radius. Leave 20 take-
out menus along with business cards. Highlight lunch and meeting food
delivery.
o Just prior to opening, the staff will visit all companies within the 2 mile
range dropping off invitations for the Grand Opening.
• Selling Our Product
o Let staff know of marketing plans for the month.
o Train staff to build rapport with guests.
o Train staff to sell our highest margin items when possible.
o Train servers for each of the initial 30 days on a specific menu item
including preparation, ingredients and flavor profiles.
o Highlight two of Your Restaurant’s homemade pies with pictures and POS
on each table.
o Place labels on opposite side of check presenting folder reminding guest
of our gift certificates.
• Delivery of Product (menu items)
o Work on master plate presentation with Kitchen Manager to offer an
appealing color balanced plate.

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 o Create an eye popping drink that will attract customer’s attention. May be
a Café Latte in an over sized fish bowl type glass with excessive whipped
cream and mint garnish.
o Train servers on the importance of first impressions as guests enter Your
Restaurant and within the first two minutes at the table.
o Train servers that certain items have long cooking times due to our goal of
freshness and southern style home cooking. Those items will include our
fried chicken (12 minutes), half pound hamburger (well done, 10 minutes)
and other similar entrees that have a delivery time that could exceed 15
minutes. Guests who may be on a limited time schedule must be informed
of cooking times.

The initial opening marketing plan is aggressive. It requires complete staff involvement
and daily feedback.

The second 30 day period will be created on the 15th day of the current 30 day period.
That allows time for preparation of items needed and planning the necessary components
for the second 30 days.

Staff Needs and Training

Based on Your Restaurant’s projected revenues, we will need to employ;

• Eight servers at $3.35 per hour. (Tipped employee)

• One senior server at $6 per hour. (Tipped employee)
• One Kitchen Manager at approximately $30,000 per year.
• Four cooks at approximately $9 to $10 per hour.
• One Prep cook at $9 per hour.
• Two dishwashers at $8 per hour. One to rotate and train with cooks and
preparation.
• One part-time hostess for weekends at $8 per hour plus .5 percent of servers’ sales
for assistance with seating and bussing.

The staff listed above will have annual payroll costs of approximately $285,000 including
employer’s social security contribution, federal and state unemployment and Medicare
contributions.

Annual projected payroll is $360,000. The difference between the projected and the
annual numbers with be composed of;

• One week paid vacation for each full time employee.

• The cost for over-time for vacations, illness (3 paid days annually for non-tipped
employees) and the cost to train new employees when one staff member leaves.
• Owner/operator salary shall be $3000 per month plus expenses.

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Employees will be trained in all facets of their job. They will be given a list of company
policies, contact numbers and basic information on their first day of employment.

(Note; See Forms Appendix, Employee Information Sheet.)

Server training will be on a continuous basis to keep them learning about guest
expectations, food preparation and building repeat business. The Senior Server, Kitchen
Manager and Owner/Operator will participate in the training on a routine basis.

Future Plans and Goals

As Your Restaurant grows it will need to seek other sources of revenue for additional
profits and continued annual sales. Some future considerations will include;
• Party trays and catered food for pick up and delivery.
• Sales of retail items within the restaurant such as hats, t-shirts, mugs and
homemade items such as jams, jellies and condiments.
• At some point in the future a second location will be considered.

One of the goals is to develop the concept into a viable, well planned operation for long
term growth. The owner hopes to bring other family members into the operation.

Summation

We are confident that Your Restaurant can achieve the mission laid out at the beginning
of the Business Plan. The restaurant can be a profitable venture and also evolve into
becoming a community fixture and more than just a place to eat.

In depth community involvement will make Your Restaurant the choice for family and
business lunch and dinner.

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