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Executive Summary
Company Profile
Business History
Marketing Plan
Industry Trends
Product/Service
Target Market
Competitive Analysis
Marketing Mix (distribution strategy)
Operational Plan
Manufacturing
Insurance (Risk Mgmt)
Management Team/Human Resources
Financial Plan
Start up costs
Cash Flow Statement
Income Statement
Balance Sheet
Summary of Financials and Use of Funds
Expected Outcome of business operations
Conclusion/ Actions
Company Description
Forever and Always Hotpot, a North Dakota based restaurant, will be a medium sized restaurant serving Hot Pot meals as our staple with additional choices on the menu. The restaurant will be located at 6879 Dickinson Parkway in Dickinson, North Dakota.
Mission Statement
Our goal is to have a successful restaurant while taking care of not only our patron, but also our workers and the environment. We also strive for excellent customer relations. We can achieve this by taking the health of our customers and staff into account. This means sanitation will be crucial as well as looking out for each other and the guests. We will also take the environment into account. While take-out is extremely popular, the amount of hazardous material it leaves behind is unacceptable. We are exploring cheap, clean ways to provide this service. We are also looking into techniques to lower the amount of water and electricity that the restaurant will expend. It is an investment that will pay itself off in the long run and protect the environment. For guest relations, we need to say focused and leave our troubles behind to satisfy the guests. Communication between managers and staff is crucial, and we will set up meeting to teach the staff and managers about effective techniques.
Development and Status
The idea of this restaurant was constructed over the course of two years by Huiyuan Liu and Joshua Bonilla. The two have filed to be a cooperation and should be incorporated by December 2008. They have together donated over $35,000 towards research and development towards the restaurant. As of right now we plan to have 10,000 shares of the company available and trade by January of 2009. As of right now we have interested parties who are willing to invest.
A suitable location for the restaurant was found last month after a restaurant in the location closed down. The location is walking distance from the nearby college and close to other popular business. This gives us a dense population to attract people towards our restaurant. Negotiations are underway and will be finalized by the end of the month. We will receive three months of free rent to allow construction and setup of the restaurant. After the construction period we are free to open the restaurant and the operation phase can begin.
Future Plans
If the business is meeting projections by February 2010 we will begin looking into other locations throughout North Dakota to place a new restaurant. By 2013 we want to have three restaurants open with the help of franchising.
Industry Analysis
The restaurant industry is very competitive and is also growing very rapidly. This is in response to the growing amount of people having less time to shop and cook. We want to provide a relaxing environment to enjoy a unique meal for the whole family. While our methods are unique, we understand the current trends and looking for the future for new ideas to stay fresh.
The Restaurant Industry Today
The restaurant industry brought in over $379 billion dollars in the year 2000 and is to be over $558 billion at the end of 2008 according to The National Restaurant Association, ranking it the third largest industry in our country. It is also the fastest growing. Independent restaurants hold 15% of that earning. 600 new restaurants open up every month. As the amount of people eating at restaurant increases, it is said that we need about 200 more on top of the current 600 to keep up with the demands.
A health phase has also began to affect the industries, where healthier foods being purchased at sit down restaurant are on the rise and restaurants have responded to adding more options to the healthy consumer.
Future Trends & Strategic Opportunities
According to the The National Restaurant Association’s Foodservice Industry 2000 report more people would spend more of the money for food on dining out. It also said that nutrition would come more into play as well as food flavors. Lastly, they projected that environmental concerns would play a factor in how businesses are run. These were published in 1988 and were projected for the year 2000. In the year 2008 we see that these projections are now reality, and have no signs of slowing down. These projections will continue on so it is a safe venture to follow them for the future.
Products and Related Services
At Forever and Always Hot Pot will offer food and beverages in both a unique environment and also cater to those who wish to take out.
The Menus: There will be a total of three unique menus.
The first will be the Hot Pot menu which will list all of the Hot Pot and fondue flavors, meats, vegetables, breads, and fruits. The menu also covers the prices, appetizers, packages we offer, beverages and the desserts. To make hot or spicy flavors noticeable we have highlighted them in red so it is easy to recognize them.
The second menu will be the Casual Menu which is aimed towards those who do not prefer the Hotpot or want to spend less time eating. We offer a large variety of dishes that cover both our American and Chinese roots. Includes appetizers, desserts, and beverages. Anyone can order from this menu besides take-out customers.
The last menu is the Take-Out menu which is basically a thinned down version of our Casual Menu. We selected the dishes that are the fastest to cook in order to serve our guests more quickly. The menu still includes select appetizers, select beverages, and select desserts.
Production
The cutting and preparation for the Hot Pot stations will be done in the kitchen. We will cut each piece of meat carefully to the right size to ensure the meat is fully cooked in a short amount of time. The sauces for the Hot Pot will made daily or on request depending on the popularity of certain flavors.
On a separate side of the kitchen our Chef’s will prepare the foods that have been ordered off of the Casual and Take-Out menus. Our Chef’s, culinary, and other staff will ensure that sanitation requirements meet and exceed what is expected of us.
Service
We will offer three levels of service, each with our full attention and respect.
Hot Pot section: Sizes of tables vary from two people to eight. The smaller size tables will come with one hot pot that acts as two. The larger tables will have up to three hot pots. The larger tables will also include a “lazy susan” where the raw ingredients will be set. They will allow for sharing to take place. This section also allows you to order from the Casual Menu as well.
For people who look for something simpler, fast, and possibly cheaper, we have a few tables reserved for them. They will only be able to select items from the Casual Menu since their tables have no Hot Pots on them.
For those who wish to enjoy there meal at home or at work then we offer our take-out section. You can either call and pick up, or walk in and order. The menu is a thinned down version of our Casual menu to allow for quicker preparation.
Future Opportunities
Based on our research, there are a small amount of restaurants that offer similar services, and those that do have been successful. This could be for a number of factors, but we must be willing to be flexible to meet the demands of the consumers in order to be successful.
As the restaurant matures we will continue to study what people want in this location and adapt as we go one. This also includes trial periods with new foods, services, as well as removing less popular items.
Marketing Plan
We have a three-point advertisement plan.
The first part of this strategy is distribution of our Take-Out menus with smaller versions of our other two menus. This allows people to know there is take-out at our restaurant and that we have other selections for dining in. Distribution is fairly simple. We have already gain permission from several local retailers to leave our menus at the front of the stores. We also mass mail our menus to the locals.
The internet is a great source of information. We will create a website that will include all of our menus with more detailed pictures, a way to order take out online, make reservations, and host various give-aways and coupons when they are available. This website will be public so searches on all major search engines will find it. To also spread the word we have included the site on all of our menus. Lastly, the site will be distributed by our last method of marketing.
The media is a place where almost everyone has access to during their day. We have already been in contact with a radio marketing agency that will help us get on the radio. Not only that but we will also include fliers within the newspapers about two times a month. On the week of the opening we are looking into being interviewed in the food section of the newspapers.
Staff
Chef
Culinary
Host/Hostess
Waiter/Waitress
Manager
Insurance
Financial Plan
The start-up budget should allow for these expenses.
Start-up Budget
personnel (costs prior to opening)
legal/professional fees
licenses/permits
equipment
insurance
supplies
advertising/promotions
accounting
utilities
Operating budget includes money to cover the first three to six months of operation. It should allow for the following expenses.
Operating Budget
personnel
insurance
rent
depreciation
loan payments
advertising/promotion
legal/accounting
miscellaneous expenses
supplies
utilities
taxes
repairs/maintenance
Financial Statements
Cash Flow Statement
Balance Sheet
Income Statement
1) Cash Flow Statement: is the actual money that is collected from sales
and the money that is paid out for expenses during each month.
List your sources of Cash income:
Sales:
Loans:
Investments:
List your sources of Disbursements:
Monthly expenses:
Start-up Costs:
Cash Receipts Month A Month B Month C
Sales
Loans
Investments
Total Receipts
Disbursements
Wages
Advertising
Insurance
Rent
Etc.
Total Disbursements
Total Receipts
After Disbursements
2) Balance Sheet
Current Assets Current Liabilities
_______________ __________________
_______________ __________________ _______________
Long Term Liabilities
Fixed Assets ___________________
______________ ___________________ ______________ ___________________
Other Assets Total Liabilities
______________ ___________________
Total Assets Shareholders Equity
=============== ==================
3) Income Statement
Revenue (Sales)
Total Revenue
Expenses:
Variable Expenses
Fixed Expenses
Total Expenses
Profit (Loss) =============
(Taxes owed)
Profit (loss) after Taxes =============
SUMMARY OF FINANCIAL PROJECTIONS:
__________________________________________________
Year -1 -2 -3 -4 -5
__________________________________________________
Net sales $___
__________________________________________________
Gross profit $___
__________________________________________________
Gross margin ___%
__________________________________________________
Net income
after tax $___
__________________________________________________
Profit margin
after tax ___%
__________________________________________________
Return on
equity ___%
__________________________________________________
Return on assets ___%
__________________________________________________
Current Ratio __ : 1
__________________________________________________
Quick Ratio __ : 1
__________________________________________________
Debt-to-Equity Ratio __ : 1
__________________________________________________
Debt Ratio __ : 1
USE OF FUNDS:
__________________________________________________
Acquisition of business $___
Professional fees, consultants $___
Marketing campaign for launch $___
Working capital (incl. cash reserve) $___
Plant and equipment $___
Yours ___? $___
Total $___
__________________________________________________
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