DeLeon Pizzeria

Table of Contents
I. Executive Summary ............................................................................................... 2
Highlights
Objectives
Mission Statement
Keys to Success
II. Description of Business......................................................................................... 3
Company Ownership/Legal Entity
Location
Hours of Operation
Service
Financial Management
III. Marketing .............................................................................................................. 5
Market Analysis
Market Segmentation
Competition
Pricing
IV. Appendix................................................................................................................ 8

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Executive Summary
DeLeon Pizzeria is a new player in the restaurant industry. The restaurant is in a comfortable, familiar, small town
that has a strong need for additional dining options.

The Otopeni’s population is rapidly growing with new subdivisions and young families moving to the rural suburb
of the airport area. It is DeLeon Pizzeria strategy to exploit the first-mover opportunity and establish itself as the
preferred pizza provider to the area. We believe a locally-owned restaurant is the best option to serve the rapidly
growing population with a fresh, unique menu as opposed to a national chain franchise.

Highlights
This business plan calls for an exciting, profitable start-up year ahead with future forecasted growth as we meet
the demands of the community. In all, this plan describes a healthy company with good growth prospects, looking
to manage its orderly growth in the near future.

Highlights

35000

30000

25000

20000

15000

10000

5000

0
Year 1 Year 2 Year 3 Year 4

Sales Gross Margin Net Profit

Objectives
The objectives for DeLeon Pizzeria are:

 To establish the market presence needed to support marketing and sales goals and to attract customers.
 To reach healthy monthly sales by the end of the year, and average monthly sales increasing modestly by
steadily through Year 3.
 To achieve double digit profit margins.
 To develop top-rated relationships with 2-4 well-respected, all encompassing distributors.

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Mission Statement
DeLeon Pizzeria creates a friendly and pleasant atmosphere for customers in a well-designed, and productive
environment in which people can work happily. We are sensitive to the look and taste of good pizza as well as to
high-quality ingredients. We look to provide the best possible value to our customers who desire great tasting
pizza and to provide customers with the satisfaction of receiving a great value, both tangibly and intangibly.
Additionally, we are the first home-deliverer of pizzas in our area.

Keys to Success
The keys to success in this business are:

 Delivering the customer value proposition.

 Marketing: promoting a new company, product, and delivery channels to a rural community.
 Product quality and consistency.
 Pricing effectively with respect to the project quality and customer value proposition.
 Family-oriented atmosphere with occasional nights of family entertainment.
 Management: products delivered on time, costs controlled, marketing budgets managed. There is a
temptation to fixate on growth at the expense of profits.
 Reporting and controls in place for inventory and financials.

Description of Business
Company Ownership/Legal Entity
DeLeon Pizzeria is a privately-owned pizza restaurant offering a product menu that does not currently exist in the
area and first to offer home delivery. Our customers are many of the young families and students in the area.

DeLeon Pizzeria will be established as a limited liability company (LLC/SRL) with Florin Leon and Ion Ionescu as the
sole owners.

Location
DeLeon Pizzeria will be located on Farm Street, nr. 1, Otopeni, Ilfov County, right at the intersection with road Way
of Bucharests.

Hours of Operation
DeLeon Pizzeria working hours will be as follows:

 From Monday to Friday, 9:00 AM to 9:00 PM

 Saturday, 9:00 AM to 7:00 PM
 Sunday, 10:00 AM to 3:00 PM

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Service
DeLeonPizzeria is a comfortable and inviting place. We are a fast-casual operation with dine in, take-out, and
delivery. The decor and theme are centered around the cutting edge open kitchen with brick arches and distinctive
lighting. Our energy and atmosphere will appeal to families, groups, and schools.

The real power and energy of the pizzeria will come from the attentive and courteous service provided by our
managers and staff. Our fresh menu will be prepared by our motivated kitchen team, and carefully orchestrated to
provide the best service to our customers who are our priority. We will have at least one manager on duty at all
times.

Our menu will include 4 sizes of pizzas with various combinations of toppings. Predefined, high-margin pizzas will
be highlighted on the menu. Additionally, breadsticks, beer, and soda will be included in the initial menu offerings.

Financial Management
The financial picture is quite encouraging. We will be slow to take on debt and heavily investing our own assets,
but with our increase in sales we do expect to apply for a credit line with the bank, to a limit of 100,000 RON. The
credit line is supported by assets.

The financial plan depends on important assumptions. The key underlying assumptions are:

 We assume a fairly high-growth economy for pizza in the airport area, given the lack of competition and
interest in having a pizza restaurant available in the area and pent-up demand.
 We assume, of course, that there are no unforeseen changes in technology to make our products
immediately obsolete.
 We assume access to equity capital and financing sufficient to maintain our financial plan.

Our break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the business running, not
on theoretical fixed costs that would be relevant only if we were closing. The essential insight here is that our sales
level seems to be running comfortably above break-even.

Break-even Analysis:

 Monthly Revenue Break-even Assumptions: 16,283

 Average Percent Variable Cost 24%
 Estimated Monthly Fixed Cost 12,454

We expect to be profitable in the first year, with profits increasing over the next two years, as we establish a loyal
customer base.

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Marketing
Market Analysis
Our primary target market is people who desire a comfortable, family-oriented environment for dine-in pizza. Our
secondary target market also desires a delivery service for pizza, or a take-out approach. There is overlap of these
segments.

Airport area and its surrounding communities are a growing middle-class area with nearly 14,000 residents. A
majority of these residents are families of four or more. The boom in the area is primarily in response to an
exodus of families moving out of the over-populated areas and into a more rural setting.

According to a Growth Plan conducted in 2001, population within airport area is expected to increase. However,
the number of persons per household is expected to decline, meaning the need for additional housing will
continue to grow. From the same plan, population is listed as being evenly distributed by age groupings, with
approximately 33% of the population being minors. Another 40% are less than 54 years of age, indicating a major
concentration of the population being families. The report forecasts there being nearly 1,900 households in the
airport area by 2019. This is driving the need for more quality, family-oriented restaurants.

Additionally, airport area residents frequently visit the buildings near DeLeon Pizzeria. Shopping businesses are
adjacent to the restaurant, so we are providing a new convenience for families to pick up a pizza.

With the expected continued growth in the area, estimated at 7% annually, opportunities to serve airport area and
its surrounding communities will increase. The company will sell predominantly to individuals, but it will also
accept some catering jobs to individual parties, schools, and company functions in the area.

Local Market Growth

40% Potential Customers

% growth over prior period

35%
New Homes
30%
25% New Businesses
20%
15%
10%
5%
0%
2018 2022 2016

Market Segmentation
Those residents of neighboring communities of Otopeni and north area of Bucharest are included in the Market
Segmentation. Only those residents of Otopeni are included in the delivery, as delivery radius is limited to a 5 KM
radius in the city of Otopeni. An estimated 63% of Otopeni residents live within the this 5 KM radius.

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 Market Segments
Discount
Elite
20%
15%

Average
65%

Competition
There is minimal competition for pizza in the airport area. The closest locales for pizza to the airport area are Casa
Romaneasca and Mall Baneasa. None of these competing pizza locations deliver to the airport area. Additionally,
DeLeon Pizzeria would be the only family-oriented restaurant in Otopeni.

Pricing
Our sales forecast assumes a modest change in annual costs to accommodate new entry into the market.

We are expecting to increase sales modestly but steadily over the next year, which is a respectable growth rate.
The growth forecast is assumed given this is a new product for the area using new channels of availability. We are
not projecting significant change in the product line, or in the proportion between different lines.

Based on industry averages and the absence of competition for pizza in the airport area, we are predicting an
average of 25 pizzas sold each week night (Sunday - Wednesday). On the weekends (Thursday - Saturday), we are
estimating 40 pizzas are sold each day. Of those pizzas ordered, we are expecting approximately 1/3 to be dine-in
customers. Those customers dining in will most likely order drinks and/or beer (on average 4 for each family).
Additionally, we are estimating that approximately one-third of the pizza orders will be accompanied by an order
for breadsticks. Our estimated average prices for each item are as follows:

 Pizza: starting from 13 RON

 Breadsticks: 9 RON
 Beer: 6.50 RON/pint
 Drinks: 5 RON

Advertising and Promotion

To drive customers to DeLeon Pizzeria, we will employ several techniques outlined below.

Advertising in Otopeni and north Bucharest will be used to promote the Grand Opening of DeLeon Pizzeria. As
part of the advertising, a coupon will be available to customers. Intermittent newspaper advertisements will
continue throughout the year to promote upcoming events. Most initiatives will focus on the local Otopeni papers

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as the target of these papers is specifically the Otopeni residents. Additional marketing efforts will come in the
form of on-box coupons for future purchases.

Additionally, family-oriented events will be hosted by DeLeon Pizzeria to attract customers such as trivia nights,
birthday parties, and prize giveaways. Frequent buyer cards will be employed to entice repeat customers. DeLeon
Pizzeria will also sponsor the local football team and a Dota 2 gaming team to publicize the restaurant within the
events.

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Appendix
Start-Up Expenses
Business Licenses -200
Deposits 10000
Bank Account 120000
Rent 2250
Interior Modifications 10000
Equipment/Machinery: 30000
Total Equipment/Machinery

Insurance 5000
Stationery/Business Cards 1500
Brochures 3000
Pre-Opening Advertising 7500
Total Startup Expenses 59250

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