Healthy Bite Burger Restaurant - Essay Example

? Healthy Bite Burger Restaurant: Business Plan Executive Summary This business plan presents a plan for a start up restaurant business: Healthy Bite burger restaurant. This burger restaurant will provide a unique burger experience with its wide array of authentic local and exotic burger flavours which wholesome, healthy and verifiable organic burger are targeting those who love and value their health. The products of the company mainly encompass healthy all natural nutritious organic burgers differentiated based on different flavours and customers likings, from chicken, lamb, duck, fish, camel meat, beef, mutton and vegetables. The burgers are served with a wide array of toppings from caramelized onions, balsamic mustard to organic shakes. The critical success factors in the business include high quality nutritious burgers that are all natural and organic, reliability in service delivery, high quality sales staff, and strategizing an effective strong brand building that is associated with high quality, nutritious and uniquely flavoured burgers. The funding required to kick-start the business is ?658,000. With favourable performance, the projected sales will be ?950,000, ?1050000, and ?1160000 in the three consecutive years. Profit before taxation will be ?330,000, ?413,700, ?647,500 for the three consecutive years respectively. Background Healthy Bite Burger restaurant is a new start up business founded by [Names] who came up with the idea for a unique organic burger restaurant for their love and passion of healthy eating and the increasing trend towards health awareness. They wanted to provide a range of healthy organic burgers that are not only satisfying but also healthy, adding value to the customers. The three founders pride in their professional experience within the food industry. One of the founders has five years culinary experience and skills within a health oriented restaurant business, another has four years sales and marketing experience with the a grocery store, while the other one has extensive five years experience in website development, search engine optimisation skills, and online marketing. With their love for burgers, and their passion for healthy lifestyles, the three partners developed the idea for a healthy burger restaurant. Healthy Bite burger Restaurant will therefore be a restaurant mainly focused on providing unique healthy organic burger to the widening health conscious people. This unique burger will be a nutritious all natural organic burger targeting the health conscious population. The product will mainly be segmented based on flavours: that is beef, fish, duck, lamb, vegetables and chicken and, all bearing the brand name Healthy Bite Burger. Mission Statement: To support healthy living among a wide array of people by providing burgers made from all natural healthy high quality organic products in a manner that is focused on adding value to people’s lifestyles Vision Statement: To be the leading provider of all natural nutritious organic burgers in Oxford region Values and Principles of the business: The business is founded on four core values and principles: Integrity in all business dealings, service to customers and their health, respect for individuals and striving for excellence. Earnest and Young projections for the period 2011 to 2020 shows that consumer spending on restaurants would rise by 12% over the period (Ernest & young, 2011:3), and consumers would still tend towards healthy all natural foods (Huxley, Land, Lobley, 2011:37; de Groot, 2012). Most Burgers available in the market are based on highly processed meat products which in most cases often lose big amounts of their nutritional value. While there are other organic burgers in the market due to the commitment of most fast food chains to adopt healthier foods (Paddock, 2008), Healthy Bite Burger Restaurant differentiates itself in that it not only provides information on nutritional content within its menu, but focus on providing a unique burger experience with its wide array of authentic local and exotic burger flavours which are wholesome, healthy and verifiable organic burger targeting those who love and value their health. Restaurant Products and services Description The products of the company mainly encompass healthy all natural nutritious organic burgers differentiated based on different flavours and customers likings, from chicken, lamb, duck, fish, camel meat, beef, mutton and vegetables. The burgers are served with a wide array of toppings from caramelized onions, balsamic mustard to organic shakes. Customer benefits Organic foods have been widely known for their nutritional contents and the value that they add to a customer’s health. Healthy Bite Burgers will promote health benefits to the customer population, and will provide a diet that is based on low fatty calories intake. They will also provide wholesome tasty burgers and the best choice burger for any consumer who wants more than a burger experience. Competitive Advantage / Unique selling Proposition Competitive advantage is the key to the survival of the company (Wickham, 2006).The Healthy Bite burgers are high quality premium all natural and organic burgers with the unique selling proposition based on the wholesomeness of the natural ingredients in the burger and the unique and fine authentic local and exotic tastes, with the burger positioned as a scrumptious, wholesome, and nutritious burger. Intellectual Property: Patent and trademark protection The company will both register and patent its brand including name, logo and ingredient combinations. Each Burger recipe is unique and a trade secret and legal procedures would be undertaken to ensure that these trade secrets and trademarks are well protected. Life cycle The business will be in its infancy stage as it is a start up business. It is though projected to grow further over the next five years as the organic food market is also projected to grow over the same period (IBISWorld Report, 2011). Portfolio analysis As noted above the business will mostly deal in organic burgers that have a wide array of flavours from lamb, beef, chicken, fish, camel and duck. The uniqueness of the restaurants product portfolio is its diversity in exploring both local and exotic tastes in the burgers it offers, and its ability to customise the burgers to a customers taste preferences. Notable unique burgers within the product portfolio include: the uniquely Arabian camel meat Burger, Indian spicy onion bhaji burger, the Moroccan lamb burger served in Harissa dip, spring onions and smoked paprika, Canadian sweet bacon burger, grilled scotch steak burger, Italian buffalo mozarrella burger with tomato tapenade, English hamburger, and vegetarian burgers such as mushroom topped courgette burger, sweet corn chutney burger served in onions, spinach and beetroot or fish burgers such as tuna grilled burgers seasoned in olive oil, and a touch of fresh lemon, among others. In addition these burgers will be served with a wide array of toppings from caramelized onions, balsamic mustard to organic shakes Market Analysis and Marketing Industry / Sector The fast food industry in the UK has experienced strong growth over the past decade with the growth and sales having risen by 8% over the past three years due to the recession impacts with the fast food sales in 2010 having grown by 2% with higher breakfast and lunch crowds (Kuhn, 2009; Euromonitor Country Report, 2012). Research shows that while the fast food industry in the UK has been growing in the post recession period, most of the growth were mainly experienced in healthier fast food restaurants, with the healthy fast food restaurant Eat raising its sales by 36.4%, while Pret A Manager, a health focused sandwich chain increasing its sales by 29.7% (Kuhn, 2009). Sales in healthier fast food are projected to rise over the next decade as people shun the heavily unhealthy fatty fast food. Key characteristics of the fast food industry in the UK are that key products that are often sold include fried foods such as fish, chips, chicken, and other such as burgers. Most fast food restaurants provide take out services, or meals are simply served through drive-ins. The main customers of the fast food industry are mainly younger people in the ages 15 to 35 years, but in the healthier organic burger segment, the customers also include relatively older customers with the ages ranging from 20-50 years of age (Euromonitor Country Report, 2012). Growth rate After strong growth in organic foods from the period 2003 to 2007, the organic food industry recorded some decline over a three period after 2007 due to the recession which witnessed a lot of people switching to lower priced food (IBISWorld Report, 2011). IBISWorld research report (2011) though shows that over the next five years, there will be a rise in demand for organic foods at a rate of 2.6% per year to a value of ?2.02 billion, with the growth in 2012 being 3.5%. Though the share growth sales rates in retail outlets would be lower, the biggest sales are projected to take place in restaurants and other eatery joints. The key drivers for the growth have been increased ethical consumerism, increased environmental awareness, and tendency towards more healthy and safe food (Organic Monitor, 2008:16) The rise in popularity of organic foods and health consciousness in the UK can be noted in the organic food campaigns and exhibitions held over recent pasts in the UK where organic foods have increased in prominence and presence with more and more restaurants striving to incorporate within their menus an organic dish in order to meet the growing preferences of the customers (IBISworld Report, 2011). Significant trends Research shows that older restaurant goers look for the nutritional contents of the food they eat out than do younger people (The Independent, 2011). Key notable trends impacting the industry are that more and more people in the UK are becoming health conscious and opt to take natural less processed foods. This is especially in the healthy eating campaigns that seek to reduce obesity levels in the UK, and the strong pre-recession growth rates which are projected to pick up by this year (IBISworld Report, 2011). Though the most famous organic foods with higher growth rates are baby foods, organic fast food such as burgers has been growing in popularity with the growth of the fast food industry. Research shows that even though people are highly health conscious, demand for organic foods has been relatively low due to the high prices of the organic foods. The greatest demand for the organic fast foods mainly comes from older restaurant goers who care about the contents in their food (The Independent, 2011). In addition, there is also a growing trend towards fast food eating especially among young people in the country. This has mainly been due to the changes in UK lifestyle where both men and women work for long hours and shifts and therefore eat out a lot. With increased campaigns focused on young people to promote healthy eating, it is projected that the fast food segment would shift towards more health conscious foods in the next coming decade (The Independent, 2011; Organic Monitor, 2008:16) Outlook for the future New lifestyle trends, changing demographics and a shift in the UK’s attitude towards healthy and ethical eating have been the main driving force towards continued increase in expenditures on organic food over the past few years and this industry is slowly being transformed into a dynamic highly competitive environment. With restaurant goers increasingly becoming health conscious and more careful on what they eat, especially among the adult population, and with the organic foods industry receiving prominence and continually growing in the UK, then the organic restaurant business especially in the fast food sector is set grow tremendously in the near future. With the popularity of burgers in the UK, this has earmarked organic burgers as a source of all natural healthy nutritious burgers in the fast food industry. The market The key market segments targeted by the business include, the health conscious market segment, the adventurous consumers who like to experiment with a wide array of burger flavours, young consumers who are greatest consumers of fast food, and the older consumers who want healthy all natural burgers to nib on. In essence the key target market will therefore be all burger lovers aged between 20-50 years of age who more than values and love their health wellbeing, and who cherish unique exotic and local flavours. The area of focus will mainly be Oxford region. How targeted market segments are changing The health conscious market in the UK has grown tremendously, especially over the past decade years. Key notable customers in this market are younger people who are increasingly becoming health conscious and want to maintain healthy figures and skin, and older people who seek to live healthily to keep illnesses at bay. With the organic food market in UK project to grow at 2.6% per annum over the next five years (IBISWorld report, 2011), and the adult population becoming more careful on what they eat, clearly more and more consumers in UK will be tending towards healthy eating, and this health conscious target market will continually grow. Critical Success factors The critical success factors in the business includes high quality nutritious burgers that are all natural and organic, reliability in service delivery, high quality sales staff, and strategizing an effective strong brand building that is associated with high quality, nutritious and uniquely flavoured burgers. The organic burger consumers in the UK market have been noted to be mainly more affluent and older consumers aged 30 to 50 who either had younger children aged less than 5 years of age or whose children had left home. In addition, those in their thirties and forties took keen notice of their weights and health, while the older ones were more concerned with health issues. The two key issues for the consumers is taste and health (Green and Firth, 2009; Makatouni, 2002) with buying habits mainly including one serving of burger per customer. The burgers are available in all seasons, with any seasonal variations only occurring possibly due to variation in the supply of available organic ingredients. In addition, supplier support is strong in the market, as there more farmers adopt the organic way of producing products since this is a more profitable trade than non organic. Success already achieved so far is that UK is probably among the leading global consumers of organic food such as organic burger (Green and Firth, 2009). Competition The existing competitors in the market include Burger King, KFC, Nando’s, Subway, Wimpy and McDonald’s. Some of these such as McDonald compared to Healthy Bite restaurant offer other meals other than burgers and therefore Healthy Bite Restaurant is more focused on developing unique burger experience. Others that focus on burgers such as Burger King have not set a niche in the market as high quality organic burgers in the market for which Healthy Bite seeks to. High end premium organic burger restaurants which include Hache burgers, Smiths of Smithfield, the Diner, Automat, Joe Allen’s, Oxford Organic Burger Company, and Byron Hamburgers, will though be the direct competitors of Healthy Bite Burger Restaurant. Healthy burger compared to these will develop a more unique local and exotic tastes experience and brand that will set it apart form these direct competitors. Though competition may respond by also trying to add more flavours in their burgers, Healthy bite will succeed by developing a building a brand name that associates unique local and exotic original burger flavours with the restaurant. Marketing Activities Positioning in the market The company seeks to establish a strong image in the market as a high quality premium all natural and organic burger restaurant with this product positioned in the market around understandability and wholesomeness of the natural ingredients in the burger and the burger positioned as a scrumptious, wholesome, and nutritious burger bent on a unique fine and original authentic local and exotic tastes. This is unlike most of the conventional burgers in most fast food chains which have little regard for the nutritional value of the meal. The catch phrase for the company would be “Burgerfill, wholesome, nutritious unique authentic local and exotic busting flavours. Feel the burger”. Promotion strategies and advertising Healthy Bite burger Restaurant will use a number of tools in reaching out to its target market. These include viral marketing, an active sales promotion, public relations, advertising and digital promotional strategies such as using the company’s domain name as their WiFi network name, email marketing, having a blog dedicated to going fast food the healthy way, and employing search engine optimization tactics to market their websites so that they can get higher online search hits for organic burgers in the UK regions. In sales promotion strategy, notable tactics include offering burgers at discounts initially, or offering a free healthy fruit juice for every two burgers purchased. In advertising strategy, the picture of the scrumptious burger can be published in health magazines with benefits, caloric contents and ingredients used in the burger that makes it unique and different from others. In addition, a television advertisement featuring the organic burger can be featured on air so as not only to build the brand of the restaurant but also make people aware of “going healthy on fast food”. In public relations strategy, the restaurant can get involved with the various health awareness and organic food campaigns that may arise getting in partnership with event organizers, where t-shirts with the brand name of the organic burger can be handed out. In addition, online marketing strategies will be done through social media means such as Twitter, Facebook or even LinkedIn where the company joins an online conversation on healthy eating. Developing an interactive website showcasing the different organic burger offerings would go along way in solidifying the brand positioning of the product. In addition, the restaurant will also showcase its culinary abilities in the various trade shows showcasing healthy unique and innovative organic foods. Pricing strategy Since there is a significantly strong competition in the fast food market and customers are often faced with a wide array of different products to choose from, the best pricing method for the organic burger product would be a competitor based pricing method/ demand based pricing methods. This would set the price in line with those that are averagely charged by direct competitors in the organic burger market. The advantage of this pricing method is that the price of the product is in line with most competitors and so pricing would not be a competitive disadvantage in the market. In this effect, the above non-price promotional strategies of providing distinct customer experience with the products will be able to attract loyal customers. The premium burgers in the UK range between ?10 and ?20 in price. This implies that Healthy Bite burger Restaurant can price its organic burgers averagely at ?15 inclusive of toppings, which is relatively similar to competitor pricing. These pricing reflect the high quality of the burger and seek to establish a strong image in the market as a high quality premium all natural and organic burger. Distribution strategy The organic burgers will mainly be purchased from the restaurant location where the customers come into the restaurants. In addition, customers will be able to make online orders, pay for them and have the burgers delivered to those living within deliverable distance still hot and tasty. In essence the company website will be a key promotion and sales tool for the Healthy Bite organic burger, and will be paramount in building the company’s brand name both in the local and global organic burger market. Geographic Penetration The restaurant will mainly aim to penetrate the oxford geographic region and be the best of healthy scrumptious burgers in the region. Manufacturing and operations The process The restaurant will bake its own burger buns from wholesome wheat, topped with sesame seeds, caramel and rosemary spices. From these, well cooked organic beef, mutton, chicken, lamb, fish, duck, vegetables or camel meat in olive oil, will be filled in according to customers’ preferences with preferred vegetable dressings. Though the buns will be prepared earlier and kept crunchy and crispy on the outside while moist, soft and hot in the inside, the burgers will be prepared on per order basis. Suppliers There are quite a number of strategic suppliers and distributors of organic meat which can be used to make the high quality organic burgers in the business. Key organic suppliers produce organic meat products include Graig farms, and East brook farms with those dealing in a variety of products from vegetables to meat products including Duchy originals, Meridian Foods, Wellness Foods, Organic farm foods, and Doves farm. In terms of wholesalers, the organic food dealers include tree of life, the Health store, Community Foods, Suma Foods, Marigold Health, and essential trading. All these suppliers are within reach of the company and they source their organic products from some of the biggest and healthiest organic firms across the globe. In addition to this supplier information, a specialty natural and organic food festival and exhibition is held every year in April at Olympia, where various business people including suppliers in the food industry meet up and exhibit their products and culinary abilities. This provides an opportunity for the business to network with new strategic suppliers in the region and key interests in the organic food industry which could potentially provide important supplier information and help in comparing prices (Natural & Organic Products Europe, 2012). Production and operating advantage The key production advantage will be in the restaurants ability to produce high quality burgers within a shorter service time using tools that ensure that the burgers are uniquely arranged and crafted. Facilities, capacities, location and restaurant floor plan The business will be located in Birmingham metropolitan area. The high population in this location and the high awareness of healthy eating coupled with less organic burger restaurants in this are makes the location strategic for the business. Initially, the business facility will be rented out; about 7000 ft sq of space accommodating 25 tables, but the business has a long term focus of purchasing its own buildings. Particular location will be close to commercial shops and malls where area due to customer traffic and strategic location. The restaurant will be arranged in linear table manner in the sides, and circular four seater tables in the middle to give it not only a sense of fun but also relaxation. This is as indicated below: Restaurant arrangement: Source: Smart Draw, 2012 Critical aspects Critical aspects of the production and operations will mainly entail the kitchen tools and appliances such as slicers, wash stainless sinks, utensils, microwave, fridge, oven, grills and many more. It is these that will enable to production process. Cost of production The cost of production for the burgers will be higher due the high cost organic food supplies that would be need to make the bugger. After reviewing market prices from organic vegetables to meat, the average cost of production of producing one organic burger would be ?9. Since the burgers would be sold at ?15, the margin arrived at per burger is fairly reasonable, and a less considerable amount of volume would have to be sold to breakeven. Management The Board of Directors and key managers The board of directors will mainly entail the three founders of the business. The three founders pride in their professional experience within the food industry. One of the founders has five years culinary experience and skills within a restaurant business and holds qualification in nutrition and culinary. Another has four years management experience with the grocery store and holds a bachelors degree in business administration, while the other one has extensive five years experience in website development, search engine optimisation skills, and online marketing with qualification in computing technologies. They will also occupy three key management positions: that is General Manager, Restaurant manager, and finance manager. Another key manager would be the sales manager who will have seven years marketing and sales experience within the food industry and hold a marketing management degree. How key people will be retained The owners will be retained through their ownership share and interest in the company, while the sales manager will be retained based on incentives such as competitive commissions for higher sales and also through a friendly working environment. Compensation and selection The selection of the management will be based on skills and expertise for the three partners while for the sales manager, it will be based on skills, expertise, and previous performance. Vacancy announcement would be placed online. The compensation for management in the first year would be: Position Compensation General Manager ?35,000 Finance Manager ?33,000 Restaurant Manager ?33,000 Sales Manager ?24,000 + commissions Organisation and personnel Healthy Bite Burger Restaurant will have a flat organizational structure. This will serve to ensure that decisions are made quickly with minimum red tape brought about by large organizational structures. The authority structure is hierarchical and bureaucratic with authority flowing from the general manager to the other line managers such as restaurant manager, sales manager, nutrition specialist, Chief Chefs, and finance manager, and then further flow down to other person in the respective departments. The management of the company will mainly be comprised of the founders of the business. The human resources plan is as shown in the organisational chart below. Selection and Retention The selection of personnel will be based on skills, experience and expertise. Vacancy announcement would be placed online. The key retention strategy would be in form of incentives such as year end bonuses, promotion, friendly family like working environment, and team building activities. Remuneration Remuneration for the other personnel aside from management will be as shown below: Job title Remuneration Total Chief Chef ?30,000 ?30,000 Chefs ?25,000 ?50,000 Kitchen staff ?20,000 ?20,000 Waiters and Waitresses ? 24,000 48,000 Sales representatives ? 15,000 + commissions 15,000 Ownership The business is mainly a partnership of the three founders of the business, with the founders holding 40%, 35%, and 25% of the business. Financial analysis The total starts up costs for the business to make its first sale are as shown in the table below will be ? 658,000 out of which ?350,000 will be savings and ?308,000 will funding the company seeks. This is as summarized in Appendix 1. The break even point of the business will be as shown below: Fixed costs = All start up costs = ? 658,000 Average variable cost per burger and beverage per glass = ?12 Average selling price per burger and beverage per glass = ?19 (beverage per glass is on average ?4.00) Breakeven point = Fixed Costs / (Unit selling price – Variable Costs) Breakeven point = ?658,000 / (?19-?12) = 94,000 units of burgers and beverage per glass need be sold before the restaurant starts making profits. Sales and profit before taxation for three years Sales and profits will be rising in the first three years. It is projected that sales will be ?950,000, ?1050000, and ?1160000 in the three consecutive years. Profit before taxation will be ?330,000, ?413,700, ?647,500 for the three consecutive years respectively. These are shown in appendix 3. Key assumptions made The key assumptions made are that the company will breakeven in the first year, and unit sales made will align with the average first sales of companies in the industry. The overhead costs, and the capital expenses have been aligned with the costs of products in the market after reviewing market prices from difference stores. Projected financial ratios in year one: Ratios Value Current Ratio 1.5 quick Ratio 0.5 Inventory turnover 89.5 Inventory turnover in days 4 days Debt to Net Worth 0.44 Debt Ratio 0.77 Interest rate 15.79% Exit Planning The strategy in exit planning will involve selling the business. Risks and rewards The key risks in the business is the high competition and the threat of entrants that the business would face, it would though strategise to be unique in the market in its own right. The possible value of the business in one year should the business be a success would be about ?1.5 million, taking into account assets, brand name and goodwill build up. Objectives and milestones It is important for the restaurant to have goals that are measurable and achievable (Schneider, 1998:1). Therefore, Healthy Bite Burger Restaurant’s goals and objectives are therefore: To fulfil consumers demand and needs for a more healthy and natural organic burger To support healthy eating by providing all natural nutritious organic burgers made from 100% EU Certified Organic, Grass Fed Beef, lamb, and organic chicken, duck and vegetable, cooked in healthy olive oil transforming fast food into healthy food. To establish a strong brand in the market that represents lip smacking healthy organic burgers that are not only scrumptious, wholesome, and nutritious but also bent on a unique fine and authentic local and exotic tastes. To hit breakeven by the first year of operation and be profitable by the second year To develop an organic burger franchise by the third year of operation. A time table for various components of the plan are as shown in appendix 2. References De Groot, S 2012, ‘Top Food Trends of 2012,’ Times live, at: http://www.timeslive.co.za/food/2012/01/23/top-food-trends-of-2012, viewed May 18, 2012. Ernest & Young 2011, ‘Outlook for UK Consumer Spending,’ Item Club Special Issue, at: http://www.ey.com/Publication/vwLUAssets/ITEM_Club_special_report_05_2011_-_Outlook_for_UK_Consumer_Products/$FILE/EY_-_ITEM_Club_Special_report_May_2011_-_Outlook_for_UK_Consumer_Products.pdf, viewed May 18, 2012. Euromonitor Country Report 2011, ‘Fast Food in the United Kingdom,’ Euromonitor, at: http://www.euromonitor.com/fast-food-in-the-united-kingdom/report, viewed 18 May 2012. Geen, N & Firth, C 2009, ‘The Committed Organic Consumer’, at: http://orgprints.org/7125/1/7125.pdf, accessed May 21, 2012. Huxley, R, Land, J, & Lobley, M 2011, ‘A Review of the UK Food Market,’ Cornwall Food and Drink, University of Exeter: Centre for Rural Research, at: http://www.cornwallfoodanddrink.co.uk/static/uploads/documents/UK_Food_Market_2011.pdf, viewed May 18, 2012. IBISWorld Report 2011, ‘UK Organic Food Industry is moving from niche to Mainstream Markets,’ at: http://www.prweb.com/releases/2011/10/prweb8919486.htm, viewed 18 May 2012. Jeffries, C 2011, ‘London’s 10 best burgers, Esquire, at: http://www.esquire.co.uk/2009/07/londons-10-best-burgers/, viewed 18 May 2012. Kuhn, K 2009, ‘Recession Fuels 8% Growth in UK Fast food industry,’ Caterer and Hotelkeeper, at: http://www.caterersearch.com/Articles/23/11/2009/331036/recession-fuels-8-growth-in-uk-fast-food-industry.htm, viewed 18 May 2012. Makatouni, A2002, "What motivates consumers to buy organic food in the UK?: Results from a qualitative study", British Food Journal, 104, 3/4/5, pp.345 - 352 Natural & Organic Products Europe 2012, ‘Natural & Organic Products Europe: Grand Hall: Olympia, London,’ at: http://www.naturalproducts.co.uk/, viewed 18 May 2012. Organic Monitor 2007, ‘Market Survey UK – Health Foods,’ EVD International Business and Cooperation, at: http://www.agentschapnl.nl/sites/default/files/bijlagen/UK%20-%20Health%20Food.pdf Paddock, C 2008, ‘UK Fast Food Chains Commit to Healthier Eating,’ Medical News Today, at: http://www.medicalnewstoday.com/articles/130251.php, viewed 18 May 2012. Schneider, T W 1998, “Building the Business Plan,” Journal of Property Management, 63, 1, pp 1-2 Smart Draw 2012, ‘Restaurant Layouts,’ at: http://www.smartdraw.com/specials/restaurant-layouts.htm, viewed 18 May 2012. The Independent 2011, ‘Lunchtime crowd Split Between the Young and Health Conscious,’ The Independent, at: http://www.independent.co.uk/life-style/food-and-drink/lunchtime-crowd-split-between-the-young-and-the-health-conscious-2361109.html, viewed 18 May 2012. Wickham, P 2006, ‘Strategic Entreprenuership,’4th Ed, Harlow Essex, UK, Pearson Education Ltd. Appendices Appendix 1: start up costs Startup expenses Amount in AED Capital Savings ?350,000 Bank loan ?308,000 Total investment ?658,000 Startup expenses Capital investments Furniture and Fixtures ?20,000 Computer equipment ?5,000 Other Equipment ?15,000 Vehicle ?20,000 Operating Expenses Rent ?200,000 Salary and wages ?288,000 Deposits for Utilities ?2,000 Licenses and Permits ?2,000 Prepaid Insurance ?5,000 Travel ?3,000 Tools and Supplies ?10,000 Starting Inventory ?10,000 Cash (in working capital) ?5,000 Website ?3,000 Legal, Accounting and professional services and consultations ?10,000 Advertising and promotions ?50,000 Total startup expenses ?658,000 Appendix 2: Project Timeline: Appendix 3: Proforma Income Statement for three years: Proforma Income Statements for three years in ? 2012 2013 2014 Sales Food Sales 950,000 1050000 1160000 Beverage Sales 350,000 420,000 510,000 Total Sales 1,300,000 1,470,000 1,670,000 Cost of sales Food Cost 320,000 325000 205,000 Beverage cost 85,000 94,000 115,000 Total Cost of sales 405,000 419,000 320,000 Gross profit from operations 895,000 1,051,000 1,350,000 Operating Expenses Salaries 288,000 300000 342,000 Utility expenses 2000 2100 2700 Licenses and Permits 2,000 2000 2000 Prepaid Insurance 5,000 5000 7000 Travel 3,000 3200 4000 Tools and supplies 10,000 5000 5300 Website 3000 1000 1500 Consulting Expenses 10,000 12,000 15,000 Advertising and Promotions 50,000 57,000 53,000 rent 200000 250000 270,000 Total Expenses 565,000 637300 702,500 Net Profit 330,000 413,700 647,500 Read More