Dino’s Diner

Table of Contents

• 1.0 Executive Summary

• 2.0 Company Summary
• 3.0 Services
• 4.0 Market Analysis Summary
• 5.0 Strategy and Implementation Summary
• 6.0 Web Plan Summary
• 7.0 Management Summary
• 8.0 Financial Plan
 Dino’s Diner

1.0 Executive Summary

Our initial statement to Investors and Financial Lenders is a open disclosure of the Dino’s
Diner business proposal - our intent is to set realistic business expectations, and eliminate
any questions about the profitability of this business venture.
Entrepreneurs have a tendency to paint the business plan with a very optimistic brush,
highlighting strengths and camouflaging the risks. We, as business owners, have a vested
stake and financial commitment in the success of this restaurant. Our intent is to have a
definitive business, financial, and marketing plan that not only serves our need for capital
financing, but is utilized as our daily business roadmap. We have taken all precautions to
validate our business and financial models, focusing on realistic projections. We have
accomplished this as follows:

1. Our business concept was derived from detailed Market Analyses

Instead of building a business around a preconceived concept, we analyzed the market

findings and built a concept around our consumers. In other words, our business is built to
service an unmet consumer 'want'.

2. A buffered financial plan that ensures adequate capitalization

A contingency buffer is included in the start-up cost to ensure the business in not under
financed, as well as giving the business adequate funding to sustain it in the first six
months of start-up. Our industry experience confirms a longer ramp-up stage for
restaurants over other retail/service businesses. A common mistake for new entrepreneurs,
but fully addressed in this business plan.

3. A solid Risk alleviation Plan

We have evaluated traditional and non-traditional risks associated with Restaurant failure
and accounted for them directly in the business plan. Instead of dismissing the risks, we
have identified valid mitigation strategies for each.

The total capital requirement to launch Dino’s Diner is Rs. 5,102,250.

This Plan is being submitted in order to secure a Business loan for Rs. 2,551,125. The
loan will be used towards Equipment purchase, Design, Construction, and Operational
Start-Up expenses. Owners, Mr. Hassan Raza and Mr. Abdul Samad are investing Rs.
2,551,125 in personal capital.
As owners, our commitment is to take personal accountability for all financial debt. We
have taken the necessary precautions to ensure the business is fully capitalized, and have
addressed all financial shortfalls to ensure a successful business start-up.
 Dino’s Diner

1.1 Objectives
Dino’s Diner objectives for the first three years of operation include:

 Keeping food costs at less than 35% of revenue.

 Improving our Gross Margin from 34% in Year 1 to 36% in Year 2. These are
attainable targets; our aim is to attain 39% by Year 3.
 Keeping employee labor cost between 9-13% of total sales.
 Remaining a small, unique restaurant with eclectic food and service.
 Promoting and expanding the Dino’s Diner concept as a unique Blue Area
destination restaurant.
 Expanding our marketing and advertising in Islamabad and in the neighboring
suburbs to increase our customer base.

1.2 Mission

Dino’s Diner will be an inspiring restaurant, combining an eclectic atmosphere with

excellent and interesting food. The mission is to have not only a great food selection, but
also efficient and superior service - customer satisfaction is our paramount objective.
Dino’s Diner will be the restaurant of choice for a mature and adult crowd, couples and
singles, young and old, male or female.

Employee welfare, participation, and training are equally important to our success.
Everyone is treated fairly and with the utmost respect. Our employees will feel a part of
the success of Dino’s Diner.

Our concept combines variety, atmosphere, entertainment and a superior staff to create a
sense of 'place' in order to reach our goal of overall value in the dining/entertainment
experience. We offer fair profits for the owners and a rewarding place to work for the
employees.

1.3 Keys to Success

1. Unique, Innovative & modern:

The creation of a unique and innovative fine dining atmosphere will differentiate us from
the competition. The restaurant will stand out from the other restaurants in the area
because of the unique design and decor. We will offer a fine dining experience in an
electric atmosphere.

2. Product quality:

Great food, great service and atmosphere.

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3. ‘A Spice of Life' Menu:

The menu will appeal to a wide and varied customer. Our eclectic menu features
specialties appealing to all kinds of food lovers. Italian pastas, juicy steaks, soups to local
delicacies.

4. Employee Retention Focus:

Employee retention and development programs will be a primary focus and success
platform for this business. Through these programs, we will be able to draw seasoned and
elite professionals and build a committed work force. We have budgeted for a stock
option program for Chef and Management positions to subsidize a lower salary base. This
lowers our immediate overhead and attracts quality staff.

5. Cost Control Focus:

We will control costs at all times, without exception. Cost Control will be an integrated
function of the restaurant from the onset. Cost control is about managing the numbers -
interpreting and comparing the numbers that impact the bottom line. 80 percent of the
success of a restaurant is determined before it opens. Our focus is to reduce the cost of
goods sold to meet our profit margin goals by managing the following crucial elements of
cost: Purchasing, Receiving, Storage, Issuing Inventory, Rough Preparation, Service
Preparation, Portioning, Order Taking, Cash Receipts and Bank Deposits.

2.0 Company Summary

The Design:
Dino’s Diner is unique to Blue Area Islamabad. The restaurant features 3 venues in one
(a concept called a Multi-Branding'): A Sheesha Lounge, Drink Corner, and Full Service
Dining. This concept offers customers variety, offering multiple dining and entertainment
options within a single establishment. The spatial and menu divisions will broaden our
appeal and provide our customers with a different experience on each visit.
Total space requirements are 18,000 square feet. In total, the restaurant will provide
seating for 110 Customers. Where possible, consideration will be given to incorporate a
dining patio. Parking and accessibility issues will be reviewed as key criteria.
The Menu
Dino’s Diner is focused on servicing Islamabad's growing demand for an ethnic eating
experience. For lack of a better term we are launching a multi-Branding food restaurant -
a restaurant concept that responds to Islamabad's need for selection and choice. Dino’s
Diner is a complimentary mingling of international food on a single menu. The Blue Area
demographics fit this concept perfectly.
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2.1 Company Ownership

The restaurant will start out as Partnership, owned by its founders, . Hassan Raza and Mr.
Abdul Samad. Mr. Hassan will function as the General Manager and Mr. Samad as
Managing Partner.
2.2 Start-up Summary
We are currently negotiating a restaurant space of 18,000 sq. ft. in Blue Area Islamabad
and will open Dino’s Diner in January 2008.
Project investment:

Items Cost(Rs.)
construction cost 1,307,000
furniture 542,250
machinery 967,000
advance rent 1,200,000
preliminary expenses 50,000
working capital 1,036,000
total 5,102,250

Machinery:

unit price total price

items detail quantity
(Rs.) (Rs.)
freezers 3 25,000 75,000
cocking range 1 650,000 650,000
hot plate for kebab and other things 1 33,000 33,000
soup container 1 50,000 50,000
cutters 1 3,000 3,000
piller 1 6,000 6,000
microwave 1 10,000 10,000
working table 2 20,000 40,000
racks & shelves 2 10,000 20,000
deep well frier 2 40,000 80,000
Total 15 - 967,000
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Furniture and Fixture:

Unit Total
Item Detail Quantity
Price(Rs.) Price(Rs.)
Dining Table – Square (2x2) 25 6,000 150,000
Chairs (Standard 14”) 100 1,500 150,000
Kitchen Cutlery Set 2 2,500 5,000
Dining Cutlery 150 150 22,500
Air Conditioner Split Units (6 Ton) 2 31,000 62,000
Hot Water Geyser Large 1 20,000 20,000
Halogen Lights 25 250 6,250
Wall Lights (Large) 4 1,500 6,000
Portable Emergency Light 4 2,500 10,000
Generator (1.5 KVA) 1 90,000 90,000
Counter Chairs 2 1,500 3,000
Office Table & Chair Set 1 10,000 10,000
Waiting Chairs for Take away
5 1,500 7,500
customer
Total 322 168,400 542,250

2.2.1 Location & Operations

Restaurant Location:
Blue Area Islamabad is the location selected for the Dino’s Diner concept. The outlook
for the future of Islamabad's Blue Area district is exceptionally positive and the most
progressive development area in the city.
The market has been carefully selected and tested for the necessary demographics and
retail traffic necessary to meet the goals laid down for profitability. The busy Blue Area
commercial/residential location has been chosen based upon a successful demographic
model and a traffic count.
Restaurant Design:
Single-Level Design Concept: The total space requirement is 18,000 square feet. The
restaurant will feature a comfortable and open concept design. The restaurant will
provide seating for 110 Customers. Where possible, consideration will be given to
incorporate a dining patio. Parking and accessibility issues will be reviewed as part of
this analysis.
Optional Patio: During the busy summer months customers can also sit outside on our
patio and we will offer a special summer menu, featuring lighter price and exotic drinks.
The patio setting will be a fun and casual atmosphere for the summer crowd.
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Operating Criteria:
The restaurant will be located in Blue Area Islamabad. The restaurant will service lunch,
dinner, and after-hours dining during the week and weekends. The restaurant will operate
during peak service time to take advantage of street traffic, and after-hour patronage from
the entertainment facilities in the area. Service will be available during the following
hours:
Lunch: Monday to Sunday, 11 a.m. - 2:30 p.m.
Dinner: Monday to Sunday, 5:30 p.m. - 12 midnight
3.0 Services
Dino’s Diner will feature international dishes, an eclectic atmosphere, and superior
service. Our food will be of the finest quality and prepared with exotic flare. Customer
satisfaction is the driving force behind our success. We will update our menu every 4
months, but maintain the 'favorites' for loyal Customers. Portions will be modestly sized,
garnished with stunning presentation.
In order to attract more selected customers we are also offering a separate selection of
Sheesha flavors.
The kitchen staff will have the best in cooking education and work experience. Their
creative talents will compliment one another. The lounge and restaurant staff will offer
the finest service in an electric atmosphere and offer customers an extraordinary dining
experience.
3.1 Dino’s Diner Menus
Dino’s Diner varied international menu will feature a starters selection, Italian food, a
selection of steak choices, a seafood selection and for the traditional eaters a selection of
local Pakistani foods selection. The menu flows together to create complementary
elements. The final menu will be defined by the Executive Chef and paired with the
drinks menu. Dino’s Diner marketing will focus on our exotic foods, but our hours, target
market, and location will produce significant juice drinks sales. Tapas, in particular, are
small dishes meant for sharing while smoking sheesha, or other mixed drinks, and the
Tapas menu will play up this idea with drink & sheesha suggestions.
The list below offers a small selection of our opening menu offerings:
Dino’s Diner Tapas

• Chicken Grilled Cubes served with white sauce and nan

• Sheesh Tawouk served with roasted nut sauce
• Bamboo Chicken Satay served with Sesame marmalade

Dino’s Diner Starters

• Garlic Bread basket served with a sprinkling of Basil

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•
• Chicken Wings with tomato ketchup
• Nachos (2 Types) served with a spicy tomato sauce
• Fried Calamari served with French fries and cheese sauce

Salads
A complete salad bar with plain and cream salads
Main Course
Steaks: (Chicken & Beef)
3 to 4 types of steaks served with a choice of baked or mashed potatoes or French
fries and choice vegetables
Italian:
Spaghetti
Pasta
Lasagne
Pizzas
Chicken:
Burgers
Deserts

• Chocolate Chunk Bread Pudding

 Dino’s Diner Chocolate Explosion-Milk, Dark and White
chocolate
• Dino’s Diner Fruit Plate
• Selection of Ice cream flavors
• Waffles served with 2 or 3 scoops of ice cream

Specialty Drinks & Coffees:

A key source of revenue for the restaurant will be drink sales. The restaurant will feature
exotic drinks on a separate menu. These drinks will include fruit shakes, flavored ice teas,
cocktails. Coffees will include regular black, cappuccinos, cream coffees, coffee shakes
& mocha chinos.
 Dino’s Diner

4.0 Market Analysis Summary

Instead of building a business around a preconceived concept, we conducted market
research and built a concept around our consumers. Our market analysis identified the
following key drivers as areas of opportunity to service restaurant customers:

1. Portion Selection:

Nearly 95% of our surveyed focus group endorsed having a choice of different size
portions. Our concept is built to offer different-sized portions. Our customers want the
option to choose what satisfies their appetite.

2. The Dining Experience:

Customer satisfaction with food and service has been and continues to be of utmost
importance, but our findings indicate that the lighting, atmosphere, and other options to
improve the dining experience are also factors in customer decisions. We take all these
factors in consideration for the design of this cosmopolitan restaurant.

3. Reasonable Prices:

This was no surprise given the economic tide. Although the restaurant industry as a whole
has seen grow, customers are demanding value for their dining. And we have given very
reasonable prices for quality food.

4.1 Market Segmentation

Dino’s Diner intends to cater to a wide customer base. We want everyone to feel
welcome and entertained. We have defined the following groups as targeted segments
that contribute to our growth projections:

 The Business Person

 Couples
 The Destination Customer
 High-End Singles
 Tourists

These particular market segments are 25-45 years old, have disposable income, and are
seeking upscale, trendy, and comfortable restaurant options. These are the types of people
who frequent other restaurants and lounges in the area. They are likely to spend more on
experiences they perceive as unique, cosmopolitan, and sophisticated. They are also the
most open to trying something new, food wise, and will embrace our international fusion
food.
 Dino’s Diner

The Business Person:

They work hard all day and often stay overnight in a strange city. They need a competent
establishment that helps impress clients and prospects. Afterward, they want to relax and
use the money they are making (or are expensed by their company). They spend the most
on drinks, food and tips. Dino's Diner cosmopolitan flair and comfortable atmosphere
will be perfect for sophisticated business people, whether they live in and around
Islamabad or are here for work.
Couples:
The restaurant will have an intimate, romantic, enticing adult atmosphere. Dino's Diner
will be the best location in town. These young Blue Area couples are generally very
successful working professionals. In most cases they are budgeting to eat out on a regular
basis, as they don't have the time to prepare food nightly.
The Destination Customer:
Islamabad is a much 'sectioned' city, and consumers often look only in their own
neighbor hoods for restaurant options. Dino’s Diner will break these habits, using
marketing to draw customers from outside the main city limits. Dino’s Diner will be a
destination restaurant. Our Destination Clients tend to be new suburbanites that miss the
excitement of the inner city. They have disposable income, and will spend quite a bit on
such outings. Dino's Diner will be especially appealing to married suburban couples
indulging themselves with a "date night”, away from the kids. Many of these consumers
are new to Islamabad from larger cities, accustomed to dining within the city and at non-
franchised restaurants.
High-end Singles:
We will attract them with our eclectic atmosphere and layout. Our international menu,
striking decor, entertainment and events, excellent service and engaging customers will
confirm the feeling of being in "the in place" in Islamabad. These are the individuals that
pride themselves on socializing and dining at the premier locations - The Image Seekers.
Tourists:
Islamabad attracts many vacationers during the summer months of May through
September. Dino's Diner will be a destination dining locale, with its attractive
atmosphere, international menu, and lounge. A large percentage of the tourist populations
are vacationing singles, here to socialize and be entertained. This is especially true for the
tourist population that visits for sporting and social events - they are not interested in
family establishments.
4.2 Service Business Analysis
The restaurant industry is highly competitive and risky. The owners know this through
their many years of experience opening, running, and improving restaurants across
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Pakistan. Most new restaurants opened by inexperienced owners struggle or fail.
However, those based on solid understandings of the market needs, and management of

Inventory and staff have a much higher chance of success, especially when combined
with prior experience in the restaurant industry.
Restaurants make money by taking inexpensive ingredients, combining them in creative
ways, cooking them properly, and selling them at a much higher price. Any ingredients
wasted in the kitchen are money thrown out. Any time wasted in seating customers,
taking orders or preparing food is money walking away. While some entrepreneurs think
that success is as simple as a good location and a trendy concept, we know the truth:
To succeed in the restaurant industry, you need an understanding of the risks and
financial conditions, the ability to handle enormous pressure, and the organizational
skills to bring off what is essentially a giant catered party, two to three times a day.

4.3 Competition and Buying Patterns

In 2007, the top ten Islamabad restaurants shared two things: cozy, hip interiors and
reasonably priced, regionally specialized menus Our competitors are heading in the right
direction, but only Dino's Diner based on sound market research in the local market.
Islamabad consumers are seeking variety and new experiences. Location is clearly
important, but so is atmosphere and uniqueness. Our marketing challenge is thus to stand
out from our competitors, not only as the "new" restaurant, but as one that offers
consistently high quality food, menu variety, and a unique atmosphere.
4.4 Marketing Strategy
Dino’s Diner Marketing strategy will be to promote our electric food, superior service,
and exciting concepts to draw in the local repeat customers. Marketing initiatives will
concentrate on the following:
Building and Signage:
The most important Marketing tool that we have is the exterior of our building, and our
new sign. We budgeted a great deal into the renovations and decor to generate the
aesthetic appeal of Dino’s Diner.
Customer Service:
In our years within the restaurant industry, customer service has always been the major
draw for the dining customers. Food and atmosphere is far out-shadowed by superior
customer service that turns a new customer into a repeat customer.
Management will demand the wait-staff provide the very best in quality services to the
customer, making certain that they are content and satisfied with their dining experience.
Wait-staff are thoroughly trained, and every 90 days they undergo a performance
appraisal. This is part of our Employee Manual, and Operations Manual guide.
 Dino’s Diner
Advertising and Promotion:
Our Advertising Plan and media schedule call for targeting customers directly through
local publications aimed at, respectively, singles, couples, and destination customers.

Management recognizes the key to success at this time of initial opening is extensive
media promotion. This must be done aggressively in order to accomplish our service
goals. A healthy budget is allocated for the first year. A primary part of the budget is
allocated to create the media and customer buzz for the month prior to opening and the
next three months after the grand opening. The full Marketing program is as follows:
Media Objectives and Strategy:
Establish our image as a unique Blue Area restaurant with great service, value, and great
food served in an eclectic atmosphere. We will maximize efficiency in the selection and
scheduling of advertisements by:

 Selecting primary business publications with high specific market penetration,

using The Creative Loafing Dining Section,
 Scheduling adequate frequency of ads to impact market with menu items and
promotions.
 Where possible, positioning advertisements in or near entertainment/food
related editorial.
 Redirecting customers to our website to register for upcoming functions, VIP
lists, reservations, and flash media promotions.
 Maximizing ad life with monthly and weekly publications.

Additionally, we will develop a consistent reach and frequency throughout the year,
targeting each specific customer segment within a five-mile radius, and new
'suburbanites,' who still appreciate in-town dining.
Promotional Campaign:
The best way to reach our potential customers is to develop an intense advertising
campaign promoting our Dino’s Diner concept of "Spice of Life." In addition to standard
advertising practices, we will gain considerable recognition through newspapers,
newsletters and public announcements. Consumers will be encouraged to visit our
website to be greeted with a flash media intro that highlights the restaurant, past
happenings, upcoming attractions and our dynamic menu.
Our periodic customer surveys and weekly menu item sales evaluations will help us to
understand what advertising is working and what is not; basically, who we are reaching.
Our goal is to understand our customer, measure the success of our direct marketing and
media activities, and redirect advertising as effectively as possible.
Publicity Strategy:
Dino’s Diner will focus on the following publicity strategies:
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 Develop a sustained public relations effort, with ongoing contact between key
editors and top-level personnel at local dining publications.

 Develop a regular and consistent package update program for the major target
media, keeping key editors abreast of all new promotions, and menu
introductions.
 Establish contact with editorial staff for the purpose of being included in
entertainment "round-ups"--product comparisons in dining publications and the
local papers.
 Produce a complete Dino’s Diner Restaurant history and menu offering piece to
be used as the primary public relations tool for all target media editorial contact.
This will also be effective for inclusion in press kits.

Press Release/Grand Opening:

Dino’s Diner Restaurant will release a series of press releases on the Grand opening.
Editorial Visitation:
Leading up to the Grand Opening, and over the first 6 months of operations, we will
invite the most influential reporters and editors from all local publications to Dino’s
Diner Restaurant in order to evaluate our menu, service, and atmosphere.
Publicity Revenues:
We anticipate at least 10% of our annual sales will be generated directly from our
publicity. A full media kit will be sent to all local publications, and releases on new menu
items will be made monthly.
Community:
Dino’s Diner will look for key opportunities to pair with local community development
organizations and radio stations to interface with our customers. We will continually look
for local community programs in which we can participate, in order to better our
community, and give something back.

4.4 Marketing Program

In line with our Marketing strategy, we will employ three different marketing tactics to
increase customer awareness of Dino’s Diner: In-Restaurant Marketing, Public Relations
Marketing, and Media Marketing. Our most important tactic will be word-of-mouth/in-
restaurant marketing. This will be by far the cheapest and most effective of our marketing
programs.
Word-of-mouth/In-Restaurant Marketing
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Restaurant Night:

Every first Monday of the quarter, we will have a special evening for restaurant people. A
perfect night for the local area's restaurant owners, chefs and staff to get together to
discuss the market and food trends, and possible Co-op efforts to promote the Blue Area.

This is not a conflict of interest; it is an effort to increase visibility and patronage across
the Blue Area. We will also invite the Blue Area Alliance committee for their
participation.

Wait Area Marketing:

Wait staff will service appetizer to customers waiting to be seated or on the wait list.

 Live Entertainment parties

 Special Events
 Eid’s Special
 Ramadan’s Special
 Valentine's Day
 New Year's party

Public Relations Marketing

V.I.P. Party:

We will host a V.I.P. Dinner before the 'Grand Opening.' This will serve the dual purpose
of training our staff and introducing ourselves to the community. The list of individuals
we will invite comes from the Chamber of Commerce and Tourism. We want their full
commitment to the restaurant to draw the tourist dollars.

Critics' Choice:

Prior to the Grand Opening there will be two preliminary parties catering to the Media
and Critics community. We will encourage the media and restaurant critics to meet at the
restaurant and review the decor, service and food. This will be a preliminary review,
where we will consider constructive input to make minor revisions prior to the true Grand
Opening. This initial review and input will give critics and media commenter a stake in
Dino’s Diner success, through their contributions to the final design.

Brochures:

Make a brochure for the in-town hotels and business establishments to provide to their
guests and staff, containing interior pictures of our restaurant, menus and prices.
 Dino’s Diner

Private Functions:

Target marketing to businesses for regular business lunch and dinner entertaining, and
private functions.

4.5 Media Marketing:

Newspaper campaign:

A much targeted media campaign to obtain featured articles about the restaurant in their
Living, Entertainment and Dining segments. Notices of all live entertainment segments
and special features will be posted to local newspapers' calendar announcements.

Restaurant and Special Events Website:

We have contracted with local design teams to deliver a high-quality, navigable,

constantly updated website.

Media Relations:

Several media relations teams will be utilized to market the Restaurant. Ad’s group and
Midas are two media companies we will utilize for media relations. Both companies have
an insightful presence and connection with our target market.

Billboard Advertisement:

One month prior to the opening, distinct billboard ads will advertise the launch of the
Restaurant.

Inner & Outer City Marketing:

We will budget to attract customers from the suburbs.

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5.0 Strategy and Implementation Summary

Our strategy is simple. We intend to succeed by giving people a combination of excellent
and interesting food in an environment that appeals to a wide and varied group of
successful adults.
We will focus on establishing a strong identity in our community with a grand opening.
Our main focus in marketing thereafter will be to increase customer awareness in the
surrounding communities. We will direct all of our tactics and programs toward the goal
of explaining who we are and what we do. We will keep our standards high and execute
the concept flawlessly, so that word-of-mouth will be our main marketing force.
We will create an appealing and entertaining environment with unbeatable quality at an
exceptional price. As an exciting and eclectic restaurant, we will be the talk of the town.
Therefore, the execution of our concept is the most critical element of our plan.
All menu items are moderately priced for the area. While we are not striving to be the
lowest-priced restaurant, we are aiming to offer exceptional food at reasonable prices for
the average restaurant diner.
5.1 Competitive Edge
Dino’s Diner's competitive edges are:

1. The owners' thorough understandings of opening and running a restaurant

2. An extraordinary contemporary restaurant design
3. International menu with featured menu changes every 4 months
4. Unique, 3-Tiered spatial layout
5. Employee Training, Incentive and Retention program

5.1.1 Competitor Analysis

Below are excerpts from our competitive analysis study.
1. Cave (Direct Competitor):
This restaurant is a main competitor for Dino’s Diner, a casual dining restaurant that has
evolved to be a great success story for the Blue Area district. This restaurant served to
validate
1) The evolving need for after-hours dining
2) A place for relaxing and eating with friends

2. Envoy Continental (Indirect Competitor)

This restaurant has grown in popularity over the years, and has gained popularity as a
destination restaurant that can cater to business professionals as well as the local
 Dino’s Diner

residents. The menu is somewhat formal for this market segment, but the juice corner and
coffee attracts a good crowd. During this study it was evident that some Customers came
exclusively to sit at the juice and coffee counter, without any intent of dining in the
restaurant.
Envoy Continental is more of a formal dining restaurant and meets a certain need within
the community, but I don't see it as a direct competitor of Dino’s Diner. I do feel that it
has some very special elements that have helped it succeed over the past years, which
Dino’s Diner can benefit from.
Market Analysis Conclusion:
At the end of the day, everyone that sells prepared meals in this district is a Dino’s Diner
competitor, because we all compete for the same home meal replacement rupees.
However, there are two segments of the restaurant industry that are our main competition:
the casual dining restaurant and the fine dining value restaurant.
So, if the food and service is better at a fine dining restaurant than a casual restaurant, but
price has become a factor as a result of the economic turns, where is a customer more
likely to go?
There is no absolute answer to the question, but the solution is to deliver the best food at
the best price with the highest level of service in one establishment. This is the very
definition of value and the concept at the heart of Dino’s Diner's business model.
5.2 Sales Strategy
Our strategy is simple: we intend to succeed by giving our customers a combination of
delicious and interesting food in an appealing environment, with excellent customer
service, whether on their first visit or their hundredth.
Our marketing strategies are designed to get critics and initial customers into our doors.
Our sales strategies must take the next step and encourage customers to become repeat
customers, and to tell all their friends and acquaintances about the great experiences they
just had at Dino’s Diner.
New restaurants often make one of two mistakes: they are unprepared or under prepared
for opening, and initial poor service, speed, or quality discourages customers from
returning, or they spend all of their efforts at opening, and are unable to maintain the
initial quality customers expect on return visits, decreasing word of mouth advertising
and leading to poor revenues.
Dino’s Diner sales strategy requires consistently high quality food, service, speed, and
atmosphere. We can accomplish this by:

 Hiring employees who genuinely enjoy their jobs and appreciate Dino’s Diner
unique offerings
 Continually assessing the quality of all aspects mentioned above, and
immediately addressing any problems
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 Interacting with our customers personally, so they know that their feedback goes
directly to the owners
 Evaluating food choices for popularity, and keeping favorites on the menu as we
rotate seasonal foods and specials

6.0 Web Plan Summary

Dino’s Diner will have a dedicated website. It will be the virtual business card and
portfolio for the company, simple, modern and well designed. Our site will offer our
menus, prices, reviews and happenings at Dino’s Diner. We will also have a monthly
Review about what did happen at Dino’s Diner to get new customers interested in our
restaurant.
Our website will be used to try out new offers, starting with an on-line order feature for
the Sunday Market Brunch, and expanding if the concept gains favor with our customers.
A customer will be able to order a selection for pickup using a credit card. Selections will
be based on our pre-packaged meals available during the Sunday Market Brunch. This is
also a potential for customers needing catering.
The website will include email capabilities and online reservations and special events
scheduling.
7.0 Management Summary
The strength of our management staff positions us for success. We have assembled a
team that embraces different disciplines, accomplished professionals with expertise in all
areas of the business, including marketing and restaurant management.
The owners, Hassan Razz(Managing Partner) and Abdul Samad (Executive Chef), have
considerable experience in the restaurant industry. Day to day operational management
will be conducted by Hassan and Samad, as hands on managers.
Umair Hassan: Managing Partner
(Operations, Marketing, Financial and Business Development)
Mr. Hassan brings to Dino’s Diner an accomplished restaurant background, exceptional
business acumen, and a lifetime passion for the restaurant experience. Umair has over 17
years of business management in the Information Technology industry. Like IT,
successful ventures in the restaurant industry must balance capitalizing on new trends
with continual quality assessment. Hassan's understanding of day-to-day cash flow
planning and staff management will be critical to Dino’s Diner's financial success.
Mr. Umair has a background in International Business Management and Business Start-
ups, and is certified in Restaurant and Hotel Management. As co-owner, Hassan Raza
responsible for overall direction and operational management. Mr. Hassan is a strong
 Dino’s Diner
business leader responsible for strategic planning and continued growth of restaurant
services and business development. In addition, Umair will be the management lead for
all public relations, financial and investor services.
Degrees, Certifications, and Professional Affiliations:

• BBA(in Process)

Abdul Samad: Managing Partner

(Executive Chef and Restaurant Operations)
Mr. Samad is an accomplished restaurateur. Mr. Samad is responsible for the concept and
the daily operations management.
Mr. Samad contributes the experience of his successes, and is charged with leading the
Restaurant Operations, Staff Selection, Menu Definition and Training initiatives for
Dino’s Diner.
Managing Partner Responsibilities
In addition to the management of day to day operations, both managers, as principals
within the company, will oversee menu development, purchasing, portioning, pricing and
inventory control, including approval of all financial obligations of the company. They
will plan, develop, and establish customer service policies and objectives, and write,
explain, and enforce an employee's manual for all employee-related policies.
Responsibilities for hiring and firing employees lie solely with the two operations
managers, and any decisions in these areas will be made jointly.
They will:

 Manage working capital, including inventory and cash.

 Perform financial forecasting, including capital budgeting, cash flow analysis,
pro forma financial statements, and external financing requirements.
 Prepare financial analyses of operations for guiding management, including
reports which outline the company's income, expenses, and earnings.
 Dino’s Diner
7.1 Personnel Plan

Human Resource Requirement

Monthly
Type Number Total Salary
Salary
Owner 2 - -

Kitchen Supervisor 2 6,000 12,000

Shift Supervisor 3 8,000 24,000

Cook 4 4,000 16,000

Servers 6 3,000 18,000

Cashier 1 6,000 6,000

Dishwasher 2 2,500 5,000

Cleaner 1 2,500 2,500

Guard (12 Hour) 1 6,000 6,000

Total 21 38,000 89,500

 Dino’s Diner
8.0 Financial Plan
Dino’s Diner financial model is based on a business concept to "Plan for the Worst, but
Manage for the Best." We have approached the financial plan as follows:
Revenue & Cost Projections

The Sales are expected to increase by 15% every year while the cost of raw materials is
assumed to increase by 10%. The 15% annual increase in revenue is expected to result
from a part increase in population increase and part increase in product price. The prices
used to calculate the gross revenue earned are based on the billing rate at which we will
charge the customer. The prices are also inclusive of the General Sales Tax.

Rent Cost

The rent for the assumed premises will be Rs. 100,000/- per month. It is assumed that Rs.
1,200,000 will be given in advance before possession of premises. This will include 6
months deposit and 6 month advance rent. The rent would be payable on a monthly basis
and is expected to increase at the rate of 10% per annum for the projected period.

Utilities Requirement

The following table presents the assumed breakup of utilities on a monthly basis:

Utility Monthly Charges (Rs.)

Electricity 25,000
Water 2,000
Gas 15,000
Telephone 10,000
Total 52,000

As depicted above the most of the food machines require considerable gas during the
preparation process. The preheating procedure of the equipment before commencement
of preparation also consumes considerable gas. It is assumed that utilities expenses will
be increased by 10% every year.

Depreciation on Building & Equipment

Depreciation on Shop, Equipment, Machinery and Fixtures is assumed to be at the rate of

10% per annum based on the diminishing balance method for the projected period.

Working Capital & Pre Operating Costs

It is estimated that an additional amount of approximately Rs. 1,036,000 will be required

as cash in hand to meet the working capital requirements / contingency cash for the initial
 Dino’s Diner
stages. The requirement is based on the rent, utilities and salaries expenses for at least
four months and 3 days raw material inventory. The following table gives the break up.

Item 4 Months Cost (Rs.)

Utilities 208,000
Salaries 358,000
Raw Material Inventory 70,000
Rent 400,000
Total 1,036,000

The provision for pre operating costs is assumed to be Rs. 50,000 which will be
amortized equally over a 5 year period.

Financial Charges

It is assumed that long-term financing for 5 years will be obtained in order to finance the
fast food setup which would mainly include construction & décor of Building, Purchase
of machinery & equipment, purchase of inventory etc. This facility would be required at a
rate of 15% (including 1% insurance premium) per annum with 60 monthly installments
over a period of five years. The installments are assumed to be paid at the end of every
month.
 Dino’s Diner
8.1 Income Statement:

Dino's Diner

Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5

Sales 10,015,200 11,517,480 13,245,102 15,231,867 17,516,647

Raw Material 4,910,141 5,401,155 5,914,270 6,535,397 7,188,937

Salaries 1,074,000 1,181,400 1,299,540 1,429,494 1,572,443

Utility 624,000 686,400 755,040 830,544 830,544

Cost of Goods Sold 6,608,141 7,268,955 7,995,850 8,795,435 8,795,435

Gross Profit 3,407,059 4,248,525 5,249,252 6,436,432 7,841,668

Administration & Selling Exp.

Rent Expenses 1,200,000 1,320,000 1,452,000 1,597,200 1,756,920

Office & Miscellaneous Exp. 72,000 79,200 87,120 95,832 105,415

Amortization Exp. 10,000 10,000 10,000 10,000 10,000

Depreciation Exp. 281,625 253,463 228,116 205,305 184,774

Maintenance Exp. 21,758 19,582 17,624 15,861 14,275

Operating Income 1,821,677 2,566,281 3,454,392 4,512,234 5,770,284

Financial Charges (15% per annum) 357,889 298,344 229,228 149,001 55,878

Profit Before Tax 1,463,788 2,267,936 3,225,164 4,363,233 5,714,406

Tax 365,947 566,984 806,291 1,090,808 1,428,602

Net Profit 1,097,841 1,700,952 2,418,873 3,272,425 4,285,805

 Dino’s Diner
8.2 Cash Flow Statement:

Dino's Diner
Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow From Operating Activity
Net Profit 1,097,841 1,700,952 2,418,873 3,272,425 4,285,805
Depreciation Exp. 281,625 253,463 228,116 205,305 184,774
Amortization Exp. 10,000 10,000 10,000 10,000 10,000

Net Cash Flow From Operating

Activity 1,389,466 1,964,415 2,656,989 3,487,729, 4,480,579

Cash Flow From Financing Activity

Payment of Long Term Debts (370,404) (429,949) (499,065) (579,292) (672,415)

Net Cash Flow From Financing

Activity (370,404) (429,949) (499,065) (579,292) (672,415)

Cash Flow From Investing Activity

Net Cash Flow From Investing

Activity 0 0 0 0 0

Net Cash Flow 1,019,062 1,534,466 2,157,924 2,908,437 3,808,164

 Dino’s Diner

8.3 Balance Sheet:

Dino's Diner
Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets

Current assets

Cash & Bank 1,036,000 2,055,062 3,589,528 5,747,452 12,464,053

Prepaid Rent 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000

Total Current Assets 2,236,000 3,255,062 4,789,528 6,947,452 13,664,053

Fixed Assets

Machinery 967,000 870,300 783,270 634,449 571,004

Construction 1,307,000 1,176,300 1,058,670 857,523 771,770

Furniture & Fixture 542,250 488,025 439,223 355,770 320,193

Total Fixed Assets 2,816,250 2,534,625 1,181,163 1,847,742 1,662,967

Preliminary Expenses 50,000 40,000 30,000 10,000 -

Total Assets 5,102,250 5,829,687 7,100,690 11,713,631 15,327,020

Owner's Equity 2,551,125 3,648,966 5,349,918 11,041,216 15,327,020

Long Term Liability 2,551,125 2,180,721 1,750,772 672,415 -

Total Equity & Liability 5,102,250 5,829,687 7,100,690 11,713,631 15,327,020

 Dino’s Diner

8.4 Business Ratios

Ratios

Gross Profit Ratio 34.01 % 36.88 % 39.63 % 42.25 % 44.76 %

Net Profit Ratio 10.96 % 14.76 % 18.26 % 21.48 % 24.46 %

Assets Turnover 1.96 1.97 1.86 1.30 1.142

Debt To Asset 0.5 0.37 0.24 0.05 0

Debt To Equity 1 0.59 0.32 0.06 0

8.5 Exit Strategy

We at Dino’s Diner are committed to our concept and its viability. We step into this
venture with confidence and the success of our respective prior business efforts. No one
attempt a business anticipating failure, however sometimes ventures does not fulfill their
promise.
In the event that our venture cannot achieve profitability and retire the load, we will first
attempt to sell the operation and use the proceeds to clear all outstanding balances. If we
are unable to sell the operation for sufficient proceeds we will forced to default whereby
the Bank loan will be in senior standing. Any further outstanding balances will be borne
by the owners on equal percentage.