Table of Contents
1.0 Executive Summary 1
1.1 Objectives 2
1.2 Mission 2
2.0 Company Summary 2
2.1 Company Ownership 3
2.2 START-UP Summary 3
3.0 Services 4
4.0 Market Analysis Summary 5
4.1 Market Segmentation 5
5.0 Strategy and Implementation Summary 6
5.1 Competitive Edge 6
5.2 Sales Strategy 7
6.0 Management Summary 8
6.1 Personnel Plan 8
7.0 Financial Plan 9
7.1 Break-even Analysis 9
7.2 Projected Profit and Loss 10
7.3 Projected Cash Flow 11
7.4 Projected Balance Sheet 13
7.5 Business Ratios 13
1.0 Executive Summary
Studio67
is a new medium-sized restaurant located in a trendy neighborhood of
Portland, Oregon. Studio67's emphasis will be on organic and creative
ethnic food. An emphasis on organic ingredients is based on Studio67's
dedication to sustainable development.
Additionally,
the restaurant procures local foods when possible, reducing their
dependence on fossil foods used for transportation.
Services
Studio67
offers Portlanders a trendy, fun place to have great food in a social
environment. Chef Mario Langostino has a large repertoire of ethnic
ingredients and recipes. Studio67 forecasts that the majority of
purchases will be from the chef's recommendations. Ethnic recipes will
be used to provide the customers with a diverse, unusual menu. Chef
Mario will also be emphasizing healthy dishes, recognizing the trend
within the restaurant industry for the demand for healthy cuisine.
Customers
Studio67
believes that the market can be segmented into four distinct groups
that it aims to target. The first group is the lonely rich which number
400,000 people. The second group that will be targeted is young happy
customers which are growing at an annual rate of 8% with 150,000
potential customers. The third group is rich hippies who naturally
desire organic foods as well as ethnic cuisine. The last group which is
particularly interested in the menu's healthy offerings is dieting women
which number 350,000 in the Portland area.
Management
Studio67
has assembled a strong management team. Andrew Flounderson will be the
general manager. Andrew has extensive management experience of
organizations ranging from six to 45 people. Jane Flap will be
responsible for all of the finance and accounting functions. Jane has
seven years experience as an Arthur Andersen CPA. Jane's financial
control skills will be invaluable in keeping Studio67 on track and
profitable. Lastly, Studio67 has chef Marion Langostino who will be
responsible for the back-end production of the venture. Chef Mario has
over 12 years of experience and is a published, visible fixture in the
Portland community.
Most
important to Studio67 is the financial success which will be achieved
through strict financial controls. Additionally, success will be ensured
by offering a high-quality service and extremely clean, non-greasy food
with interesting twists. Studio67 does plan to raise menu rates as the
restaurant gets more and more crowded, and to make sure that they are
charging a premium for the feeling of being in the "in crowd."
The
market and financial analyses indicate that with a start-up expenditure
of $141,000, Studio67 can generate $350,000 in sales by year one,
$500,000 in sales by the end of year two and produce net profits of 7.5%
on sales by the end of year three. Profitability will be reached by
year two.
1.1 Objectives
1. Sales of $350k the first year, more than half a million second year.
2. Personnel costs less than $3ook the first year, less than $400k the second year.
3. Profitable in year two, better than 7.5% profits on sales by year three
1.2 Mission
Studio67
is a great place to eat, combining an intriguing atmosphere with
excellent, interesting food that is also very good for the people who
eat there. We want fair profit for the owners, and a rewarding place to
work for the employees
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