View With Charts And Images
Fine Dining Restaurant Business Plan
Eden’s Restaurant is a 60 seat fine-dining restaurant. We focus on our New American-Swedish menu with a touch of Asian influence. We will be located in the booming, and rapidly expanding place of Ashulia, Dhaka on the Shore of Turag River.
The outlook for the future of Ashulia is promising. Developers will create a tk.50 million first-class resort project. There will be 100,000 sq. ft. of commercial space, and over 40 residential units ranging from tk. 50,000 – tk. 150,000; rentals from tk. 1000 – tk. 2,500 a month, and a two-tier garage. The combination of these elements will provide the city with a year-round economy. The area is in need of a warm and friendly place with excellent food. A place where you always know you will get the best of everything. Eden’s Restaurant will feature a cozy dining room and comfortable furnishings and decor with soothing warm tones. It will be the perfect place to stop in for a bite to eat, for a drink or for a small business meeting. For extra comfort and to please a large group of people we will make up special hors d’ oeuvre platters for customers. The menu will be inspired from different countries’ specialties and appeal to a diverse clientele. You can get Swedish specialties like herring, gravlax and meatballs, or you can go a little bit more International and choose a red curry chicken with basmati rice, or an Asian grilled shrimp with spinach, tofu and black bean sauce. We will also have a special pasta dish entree every day plus the ‘all American meal’ such as barbecue beef ribs and baked beans. Adding value will be an interesting business lunch menu with specialties every day. The menu will change every 3-4 months but keep the favorites. Prices will be competitive with other upscale restaurants in the area. However, it is the strategy of Eden’s Restaurant to give a perception of higher value than its competitors, through its food, service and entertainment. The restaurant will be open seven days a week. We will offer special theme nights to attract new customers to Eden’s. The restaurant will be fine dining in a cozy atmosphere: Warm colors, fresh flowers, soft music, candles and amazing artwork from some of the areas most notable new artists. This will contribute to a sense of community and give new artists a chance to show their work for a diverse clientele. During the busy summer months we will offer a special summer menu, featuring lighter fare, exotic drinks, as well as non-alcoholic offerings. The patio and garden setting will be a fun and casual atmosphere for the summer crowd. The service will be relaxed, very friendly and correct. We will hire the best people available, training, motivating, and encourage them, and thereby retaining the friendliest most efficient staff possible. Our management team is comprised of individuals whose backgrounds consist of 50 years experience in food, restaurant and hotel, catering, management, finance, marketing, art and motion pictures.
Catering will be a major part of the business. “Leave it to Mou Catering” already has an established clientele and we are growing each and every day. We feel in today’s hectic work schedule customers don’t always have time to set up that birthday party or other event that we all need and want. Now customers can leave it to pros and get the finest, most memorable party or dinner ever. We will have a large International menu for customers to select from, and we will offer full catering service providing everything from table settings to the dessert. We anticipate our total sales allocation to be 85% restaurant sales and 15% catering sales. The combined cost of sales will be 33% producing a gross profit of 67% on total sales. Most important to us is our financial success and we believe this will be achieved by offering high-quality service and excellent food with an interesting twist. We have created financial projections based on our experience and knowledge of the area. With a start-up expenditure of tk. 385,0000 we can generate tk.1, 085,4650 in sales by the end of year two, and produce good net profits by the end of year three. We are seeking an SBA 7(A) loan guaranty for tk. 3250000 with a 15% interest rate. I am investing tk. 60,0000 of my own capital.
Eden’s Restaurant’s objectives for the first three years of operation include:
Keeping food cost under 35% revenue.
Keeping employee labor cost between 24-29% of revenue.
Stay as a small restaurant with excellent food and service.
Averaging sales between tk 1, 000,000-tk 1,500,000 per year.
Expand our marketing and advertising in Dhaka.
Eden’s is a great place to eat, combining an intriguing atmosphere with excellent, interesting food. The mission is not only to have great tasting food, but have efficient and friendly service because customer satisfaction is paramount. We want to be the restaurant choice for all families and singles, young and old, male or female. Employee welfare will be equally important to our success. Everyone will be treated fairly and with the utmost respect. We want our employees to feel a part of the success of Eden’s Restaurant. Happy employees make happy guests. We will combine menu variety, atmosphere, ambiance, special theme nights and a friendly staff to create a sense of ‘place’ in order to reach our goal of over all value in the dining/entertainment experience. We want fair profits for the owners, and a rewarding place to work for the employees. Keys to Success
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 a cozy atmosphere.
Product quality is not only great food but great service and atmosphere. The menu will appeal to a wide and varied clientele. It is International with an interesting twist. We will have special theme nights like restaurant nights, local artist’s openings, Easter dinners, and Swedish Midsummer party, Fourth of July celebration, Labor Day weekend, wine tasting dinners & special ethnic food nights. All this will attract a varied clientele to Eden’s. Leave it to Linda Catering already has an established clientele in the area. Controlling costs at all times without exception.
Due to intense competition, restaurateurs must look for ways to differentiate their place of business in order to achieve and maintain a competitive advantage. The founder of Eden’s realizing this. With the re-development of Long Branch, it needs a place that will fit into the ‘new look’ of the community that is sophisticated and entertaining. The fact that no other restaurant in the area has this concept and atmosphere presents us with a window of opportunity and an entrance into a profitable niche in the market.
Table of contents
|2.0 Company summery
2.1 company ownership
2.2 start-up summery
3.1 pricing & profitability
|4.0 market analysis summery
4.1 market segmentation
4.2target market segmentation strategy
|5.0 strategy & implementation summery
5.1 competitive edge
5.2 marketing strategy
5.3 sales strategy
|6.0 web plan summery|
|7.0 management summery
7.1 management team
7.2 personnel plan
|8.0 financial plan
8.1 important assumption
8.2 break even analysis
8.3 projected profit & loss
8.4 projected cash flow
8.5 projected balance sheet
8.7 exit strategy
|9.0 sample menus
Eden’s Restaurant will feature an outstanding New American-Swedish menu with a touch of Asian influence in an upscale and cozy atmosphere. The menu is inspired from different cuisine’s specialties and will appeal to a wide and varied clientele.
We will be open 7 days a week. Serving lunch Monday – Friday 11:30 AM – 2:30 PM. Dinner Sunday – Thursday, between 5 PM – 10 PM. Friday and Saturday Dinner 5 PM – 11 PM. We will be closed on New Years Day, Thanksgiving Day and Christmas Day. We will be open on large holidays such as Memorial Day, Fourth of July and Labor Day weekend. These are three big weekends ‘down the shore’ that brings many tourists to the area.
The restaurant will have paintings and drawings from some of the areas most notable new artists. We will send out special invitations for the opening night and attract many people and newspapers. Eden’s Restaurant will be the perfect place when customers need that ‘little extra.’ They can have business meetings here, a place for a quiet conversation, or for a special occasion. We will make up special hors d’oeuvre platters or full course meals for customers’ special occasions.
The restaurant will start out as a LLC corporation, owned by its founders Moushumi Farjana and will function as the General Manager & Ashrafuddin Ahmed as a financial manager.
The founders of the company are Moushumi Farjana and her companion Ashrafuddin Ahmed. Moushumi works in the kitchen and manages personnel. Ashraf focuses on the financial issues. We are looking for a restaurant space approximately 2,000 – 2,500 sq. ft. Ashulia, Dhaka. We will open Eden’s in July 2008.
We are personally committing tk 60,000 of capital, plus a tk 325,000 SBA 7(A) loan guaranty to start up the business. Our start-up costs come to tk 3085,000 which is mostly expensed equipment, furniture, painting, reconstruction, rent, start-up labor, liquor license, six months operating cash, and legal and consulting costs associated with opening our restaurant. These are the start-up requirements to the best of our knowledge and experience in the industry.
|Stationery & Sign||Tk 5,0000|
|Office Supplies (Computer, Fax, Printer)||Tk 5,0000|
|Rent & Security Deposit||Tk 18,0000|
|Outdoor Patio & Garden Setting||Tk 10,0000|
|Liquor License||Tk 75,0000|
|Cash Register/Software||Tk 10,0000|
|Bathrooms Repair (Materials/Labor)||Tk 15,0000|
|Windows Repair (Materials/Labor)||Tk 5,0000|
|Floor & Wall Coverings (Materials/Labor)||Tk 20,0000|
|Lighting & Lamps (Materials/Labor)||Tk 12,0000|
|Phone & Gas Deposit||Tk 1,0000|
|Food & Liquor||Tk 30,0000|
|Kitchen Supplies||Tk 30,0000|
|High Chair & Booster Seat||Tk 2000|
|Advertising & Website||Tk 5,8000|
|Total Start-up Expenses||Tk 300,0000|
|Cash Required||Tk 85,0000|
|Other Current Assets||Tk 0|
|Long-term Assets||Tk 0|
|Total Assets||Tk 85,0000|
|Total Requirements||Tk 385,0000|
|Start-up Expenses to Fund||Tk 300,0000|
|Start-up Assets to Fund||Tk 85,0000|
|Total Funding Required||Tk 385,0000|
|Non-cash Assets from Start-up||Tk 0|
|Cash Requirements from Start-up||Tk 85,0000|
|Additional Cash Raised||Tk 0|
|Cash Balance on Starting Date||Tk 85,0000|
|Total Assets||Tk 85,0000|
|Liabilities and Capital:|
|Current Borrowing||Tk 0|
|Long-term Liabilities||Tk 325,0000|
|Accounts Payable (Outstanding Bills)||Tk 0|
|Other Current Liabilities (interest-free)||Tk 0|
|Total Liabilities||Tk 325,0000|
|Moushumi Farjana||Tk 60,0000|
|Additional Investment Requirement||Tk 0|
|Total Planned Investment||Tk 185,0000|
|Loss at Start-up (Start-up Expenses)||(tk 300,0000)|
|Total Capital||(tk 115,0000)|
|Total Capital and Liabilities||Tk 85,0000|
|Total Funding||Tk 385,0000|
Eden’s Restaurant will be unique to the Ashulia area. International creative food and a style of service that will make everyone feel welcome and special. Our food products will be of the finest quality and prepared with sensitivity and care. We will ‘go all the way’ to satisfy our guests. We will change our menu every 3-4 months, but we’ll keep ‘ your favorite’. Portions will be modestly sized with an attractive presentation.
Our drinks list will be modest in size and primarily focused on drinks from California, France, New Zealand and Argentina. Approximately 25% will be exclusively available by the glass and the remaining labels will be available by the bottle. During the busy summer months we will offer a special summer menu, featuring lighter fare, exotic drinks, as well as non-alcoholic offerings. The patio and garden setting will be a fun and casual atmosphere for the summer crowd.The kitchen staff will have the best in culinary education and work experience. Our creative talents will compliment one another. The restaurant staff will offer the finest service in a cozy atmosphere and offer customers an extraordinarily successful evening.
Pricing and Profitability
We anticipate our total sales allocation to be 85% restaurant sales and 15% catering sales. The combined cost of sales will be 33% producing a gross profit of 67% on total sales. Prices will be competitive with other upscale restaurants in the area. However, it is the strategy of Eden’s Restaurant to give a perception of higher value than its competitors, through its food, service and entertainment.
Market Analysis Summary
Eden’s focuses on local and tourist restaurant seekers, people that have a desire for good food and a fascinating atmosphere. Ashulia is located 35 miles west of Dhaka City and 25 miles south of Uttara City & 6 miles of Mirpur area on the Turag river shore.’ The city of Ashulia is in the process of revitalizing. In 2008, the city will be developing a new look and will be attracting a larger community of affluent residents.
The river shore front area includes five sectors which are identified as:
- Center (mixed commercial, entertainment & residential),
- Shore Front North (residential & entertainment),
- Shore Front South (residential),
- Hotel Campus (office & hotel) and
- Broadway Gateway (mixed commercial)..
River shore Front North is located above the Hotel Campus and just south of residential area. It will have 350 residential units, 1,100 parking spaces, and a bike path over an area of 25 acres. This project, along with existing undeveloped residential area, will change the face of the city’s shore front for the next hundred years and provide a major economic boost to the city of Ashulia as model town. The influx of permanent residents will provide the city with a legitimate year-round economy. One to three-bedroom rentals with 850 to 1,200 sq. ft. will range from tk 7,000 to tk 9500 a month. The condominiums will range in size from 1,000 to 2,000 sq. ft. and in price from tk 200,000 to tk 400,000; the townhouses, with 1,500 to 2,500 sq. ft., will cost tk 225,000, to more than tk 500,000.As the city of Ashulia is re-developing, we can see that a fine dining establishment like Eden’s is needed here. The city will have much to offer and the people that it draws expect a place where they will get the best of everything. Eden’s Restaurant will offer a new fine dining concept to the area. The elegant atmosphere, our excellent food and our friendly staff will stand out and make a name in Ashulia as well as in the nearest sophisticate areas & towns. We will succeed by giving people a combination of excellent and interesting food in an environment that attracts successful people that want to get a little bit more out of life than just the ordinary!
Eden’s Restaurant intends to cater to a wide group of people. We want everyone to feel welcome and relaxed in a cozy atmosphere with a wide and varied menu. It is our goal to have “something for everyone” everyday on our menu. In looking at our market analysis, we have defined the following groups as targeted segments.
The Business Man: They work hard all day and often stay overnight in a strange city. He needs a competent establishment that helps impress his clients and prospects. Afterward, they want to relax and use the money they are making. They are the people that spend the most on drinks, food and tips.
Happy Couples: The restaurant will have an intimate, romantic, sophisticated atmosphere that encourages people to bring dates and to have couples arrive. Eden’s wants to be a search place where people meet each other and develop a network. These young couples are generally very successful but balanced and won’t be spending as much on drinks.
The Family: The perfect place for a family dinner. Families will come for the accommodative menu and friendly service. The excellent value in their meals will keep Eden’s in favor with the parents.
High-end Singles: We will attract them with our decor and layout. Our international menu, striking artwork, wine tasting evenings and events, excellent service and engaging clientele will confirm the feeling of being in “the coolest place” in Monmouth County.
Tourists: Long river shore that attracts many vacationers during the summer months of March through June. Eden’s will be a destination with its attractive atmosphere, international menu, and outdoor patio.
Market Analysis (Pie)
Target Market Segment Strategy
Eden’s Restaurant will focus on attracting a wide and diverse clientele ages 25-60 with an annual income of at least tk 30,000.
We want the business man, happy couples, high-end singles, families, tourists with money, wealthy image seekers and compulsive spenders. We focus on these specific groups because these are the types of people who frequent other restaurants in the area. They are the ones that are willing to spend their money on good dining and service at a value price. We generally know the characteristics of our clientele with the available demographics. Our geographic include people from the local Ashulia area, Mirpur area, Uttara area, Zia International Airport, Savar area, restaurant patrons from neighboring cities, and tourists from other cities and countries. The characteristics of our clientele will be people who are creative, entertaining and sophisticated diners.
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 people. We will focus on maintaining quality and establishing a strong identity in our community. Our main focus in marketing 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 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. An exciting and friendly 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 be the value leader.
Our competitive edge is the menu, the chef, the environment, the management, the service and our friendly place! We will have an international menu and our food will be made with the freshest ingredients and produce available. The chef has an excellent taste for what fine dining is and requires. Our environment is elegant and comfortable and our decor is warm and relaxing. Great service is very important to us. The management and servers will handle every detail to make customer’s special evening even more special! All this and our great atmosphere will make customers want to come back again and again!
Our biggest competition is the town next to Ashulia, called Uttara which has a large selection of restaurants. Currently, many people who live in Ashulia, Uttara & Mirpur drive seven miles to Uttara to dine out. With the redevelopment in Ashulia and with Eden’s Restaurant, we will convince these people to stay in Ashulia and eat at our restaurant.
There are three restaurants in Ashulia that are similar to Eden’s. These are also the three most popular places in Ashulia. Each of these restaurants will be important to us. We feel the clientele they have the class of clientele that Eden’s will appeal to.
1 The first place is an 80 seat restaurant, open six days a week and serves lunch and dinner located uptown on Broadway. It is very busy for lunch as well as at dinner time. Their price range is tk 125-tk 365 for lunch and tk 250-tk 600 for dinner entrees.
2 The second is an upscale lounge/food with a small menu. It is located in the West of Ashulia near the Chotbari. They are only open for dinner. The small items on there menu range from tk 126-tk 375 and a mixed drink is tk 255-tk 700.
3 The third place is an upscale Contemporary Chinese restaurant at the river shore. They are open seven days a week; dinner for two without wine or drinks averages tk 550.
Everyone that sells prepared meals is our competition though because we all compete for the same meal replacement taka. However, there are two segments of the restaurant industry that are our main competition: the casual dining restaurant concept and the fine dining value restaurant. If the value of the food and price and service is better at a fine dining restaurant than a casual restaurant, where will is a customer more likely to go?
The key is to deliver the best food at the best price with the highest level of service. This is the very definition of value. This concept is at the heart of Eden’s Restaurant.
The total population in Mirpur-Ashulia is 18,414,350 people. 615,301 people live in Mirpur, 50% between 25-55 years old. That is the age group that dines out two to three times a week and spends an average tk 795 a month on food and drinks. There are 224,447 households in Mirpur and an average 2.7 persons per household. The median family income in Mirpur & Ashulia averages, tk 64,271/year. There are 636 registered businesses in Ashulia with 7,885 employees.
Our primary customer base is from Mirpur, Saver, Uttara, Zia International Air port, Tongi Ashulia, Baridhara, and Gulshan.
|City||Population||Median Family Income|
|Zia International Airport||11,844||Tk 87,282|
We will employ three different marketing tactics to increase customer awareness of Eden’s Restaurant. Our most important tactic will be word-of-mouth/in-store marketing. This will be by far the cheapest and most effective of our marketing programs.
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, Grand Opening celebration.
“Restaurant Night” – Every Monday night we will have a special evening for restaurant people. A perfect night for the local area’s restaurant owners and staff to get together on a night off!
2. Victory Day
3. Independence Day
4. Valentine’s Day.
5. Easter dinner.
6. Swedish Midsummer party.
7. Labor Day weekend party.
8. New Years Eve party.
9. Special ethnic food nights.
10. Memorial Day.
Local Store Marketing
Make a brochure for the large hotels and popular bed & breakfast establishments in town to provide to their guests, containing interior pictures of our restaurant, menus and prices. There are several nursing homes in the city of Mirpur-Ashulia. We will approach them to sponsor meals for the elderly. This will offer us higher visibility to a group that may not be as mobile and we’ll be contributing to the community in a material way. Word-of-mouth referral is very powerful and particularly amongst the elderly to both their peers and their extended families.
· Newspaper campaign – Placing several large ads throughout the month to deliver our concept to local area.
· Direct mail piece – Containing interior pictures of our restaurant, our menu, “Theme Nights,” catering and an explanation of our concept.
· Target marketing to businesses for regular business lunch and dinner entertaining.
Our sales plan is to establish and maintain position with our local customers. The strategy is to build more customers in order to increase revenue. Sales in our business are client service. It is repeat business. We will focus on making all our customers happy with our food, service and entertainment options. Our strategy in the restaurant is to have an experienced staff that knows the food, wine and liquor. We will train every new employee so they will fit in with Eden’s concept, which is “Wonderful food, reasonably-priced wine and knowledgeable service in an outstanding atmosphere.”
5.3.1 Sales Forecast
The following table and charts show sales projections for our first twelve months. Monthly restaurant gross sales are to average tk 68,186. That is 30 people for lunch spending approximately tk 155 per person, and for dinner approximately 50 people spending an average $650 per person. Catering will average tk 10,471/month or three parties of tk 3,490 each. Our total cost of goods sold is capped at 33% of total sales. We expect sales to increase 15% after Year 1. See Income Statement in the appendix for restaurant and catering sales assumptions.
|FY 2004||FY 2005||FY 2006|
|Food & Liquor||Tk 818,2300||Tk 940,9650||Tk 1,082,1100|
|Catering||Tk 125,6520||Tk 144,5000||Tk 166,1750|
|Other||Tk 0||Tk 0||Tk 0|
|Total Sales||Tk 943,8820||Tk 1,085,4650||Tk 1,248,2850|
|Direct Cost of Sales||FY 2004||FY 2005||FY 2006|
|Food & Liquor||Tk 270,0160||Tk 310,5180||Tk 357,0960|
|Catering||Tk 41,4650||Tk 47,6850||Tk 54,8380|
|Other||Tk 0||Tk 0||Tk 0|
|Subtotal Direct Cost of Sales||Tk 311,4810||Tk 358,2030||Tk 411,9340|
Sales by Year
The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Painting/Reconstruction of Restaurant||10/1/2007||10/28/2007||Tk 80,0000||Mr. zaker hosen||Architect/Contractor|
|Lighting & Lamps||5/1/2008||6/1/2008||Tk 12,0000||Ashraf||Manager|
|Office Furnitures & Supplies||5/20/2008||5/30/2008||Tk 5,0000||Moushumi||Owner|
|Furniture for Restaurant||6/1/2008||6/15/2008||Tk 40,0000||Moushumi||Owner|
|Decorations and Cash Register||6/1/2008||6/20/2008||Tk 15,0000||Moushumi||Owner|
|Production and Completion of Menus||5/1/2008||6/1/2008||Tk 2,0000||Moushumi||Moushumi|
|Buy Kitchen Supplies||5/15/2008||6/15/2008||Tk 60,0000||Moushumi||Kitchen/ Moushumi|
|Open Eden’s||7/1/2008||7/1/2008||Tk 0||Moushumi||Owner|
|VIP Party||7/1/2008||7/1/2008||Tk 2,0000||Moushumi||Owner|
|VIP Party||7/2/2008||7/2/2008||Tk 2,0000||Moushumi||Owner|
|Upgrade Mailer||7/1/2008||7/15/2008||Tk 0||Andrea||Marketing|
|Direct Mail||6/1/2008||6/15/2008||Tk 1,0000||Andrea||Marketing|
|Business Plan Review||6/1/2008||6/3/2008||Tk 0||Moushumi||Owner|
|Corporate Brochure||5/1/2008||6/15/2008||Tk 1,5000||Rafee||Friend|
|New Catering Accounts (5)||7/1/2008||9/1/2008||Tk 2500||Moushumi||Owner|
|New Catering Accounts (5)||1/1/2009||11/1/2009||Tk 2500||Moushumi||Owner|
|Wine Class for all Employees||6/20/2008||6/25/2008||Tk 1,0000||Epon||Wine Distributor|
|Employee Training||6/20/2008||6/25/2008||Tk 1,0000||Moushumi/Andrea||Owner/Manager|
|Swedish Midsummer||10/20/2008||10/20/2008||Tk 3000||Moushumi||Owner|
|Direct Mail||8/1/2008||8/15/2008||Tk 4000||Andrea||Marketing|
|Direct Mail||11/1/2008||11/15/2008||Tk 4000||Andrea||Marketing|
|Swedish Christmas Introduction||12/14/2008||12/14/2008||Tk 2000||Moushumi||Owner|
|Upgrade Mailer||9/1/2008||9/5/2008||Tk 10,0000||Andrea||Marketing|
Web Plan Summary
Eden’s Restaurant and ‘Leave it to Mou Catering’ will have a combined website. It will be the virtual business card and portfolio for the company, simple, classy and well designed. Our site will offer our menus, prices, reviews and happenings at Eden’s. We will also have a monthly newsletter about what did happen at Eden’s to get new customers interested in our restaurant. You will also be able to send us an E-mail when you want to make reservations at our restaurant or to book ‘Leave it to Mou Catering.’ Fast, easy and convenient!
Moushumi Farjana will manage Eden’s Restaurant. She will also function as head chef.
Ashrafuddin Ahmed will take care of all financial issues including bookkeeping.
Andrea Karim is the front manager and our marketing director. She will take care of ordering for service and managing the wait-staff. She will also take care of marketing and advertising.
Moushumi Farjana – Owner/Executive Chef:
Moushumi Farjana has 5 years of experience in the food and hospitality industry, receiving her culinary training at several leading restaurants in America at Los Angeles. In 2003 she moved to Bangladesh to pursue a personal chef career. She worked for over a year for a family and catered all their personal and business events.
When she was in America worked on about 20 motion picture projects, traveling for months at a time, planning and preparing meals for hundreds of people, cooking for demanding celebrities such as Denzel Washington, Meg Ryan, Matt Damon, Adam Sandler, Damon Wayans, Cameron Diaz, Tom Cruise, Kevin Spacey, James Cameron, Steven Spielberg…just to mention a few.
In 2001 she moved to New York and worked at Ulrika’s (a Swedish restaurant in Manhattan) as the general manager. Moushumi handled many duties including food and liquor ordering, inventory, bills, operating the dining room and bar, scheduling, hiring and terminating employees. She is now cooking enormous numbers of dinners for many private homes and businesses in Dhaka.
Ashrafuddin Ahmed – Managing Partner/Financial Supervisor
Mr. Ashrafuddin experience in catering and restaurants began in the mid-90’s providing hospitality and catering services to rock bands performing in Syracuse, NY. After little over a year, he left to pursue a career in motion picture production. Satisfying a strong visual sensibility he entered the lighting department assisting in projects over the past 12 years initially with a lighting services company and eventually as a union member in IATSE 52.
During this time he has operated both as an employee and as an independent contractor. This has provided experience in issues of small business taxation, bookkeeping, lease arrangements, inventory management, personnel management, property ownership, margins, re-selling and a myriad of other situations pertaining to the small businessman.
Since 2000, Mr. Ashrafuddin has also started a financial planning business encompassing securities and insurance products. Honesty and integrity, with customer oriented advice have produced a growing asset base in wildly volatile markets in some of the most challenging and historic times. In all these endeavors, the key issue has always been service. Meeting and exceeding expectations has consistently been the standard Mr. Ashrafuddin has achieved and brings to Eden’s Restaurant.
Andrea Karim – Manager/Marketing Director
Andrea Karim is an artist who has been working in the Motion Picture Industry as a camera assistant since 1992. She moved from Park Slope, Brooklyn to Uttara, Bangladesh in November of 1995. As a resource, Andrea knows many people in the Uttara & Ashulia area.
Andrea has worked on catering jobs and as a prep chief. Andrea is prepared to work with Moushumi in Eden’s as a front manager who will take care of advertising, wait staff and ordering for service. Andrea also worked as a union waitperson for many years in Rockefeller Center Cafe while she was in college and when she attended the Whitney Independent Study Program.
Our management team is well compensated. We have a team that has considerable experience together and shares knowledge in many different fields of business and in life. In Year 2 we will hire a General Manager to assist Eden’s Restaurant to grow even further. The General Manager will also work to expand Leave it to Mou Catering in Dhaka & Chittagong. Moushumi Farjana can then concentrate more on the kitchen and take her restaurant to yet a higher level.
We believe the personnel plan is in good proportion to the size of the restaurant and projected revenues. The staff will include 13 full-time employees and seven part-time employees, who will work a total of 754 man-hours per week and generate an average weekly gross payroll of tk 4,929 for the first year in business. The estimated gross annual payroll of tk 236,592 is 22% of total sales.
Chef Moushumi Farjana will be assisted by:
· Sous chef with considerable experience in different restaurants (1).
· Cooks that work directly with Linda or the sous chef (2).
· Prep cooks/dishwasher (2).
· People cleaning the restaurant (2).
In front of the house:
Ashrafuddin Ahmed will take care of the financial issues including bookkeeping and work in ‘front of the house’.
Andrea Karim will be our Front Manager. She will take care of advertising, wait staff and ordering for service.
To help Andrea she will have servers that will work as captains (these people have experience in managing, waiting tables and bartending) and take care of service and make sure the restaurant is in excellent shape (2). Servers that work part time (4). Full-time bartender (1). Full-time busboys (2). Part-time busboy (1).
|FY 2009||FY 2010||FY 2011|
|General Manager||Tk 0||Tk 36,0000||Tk 36,0000|
|Front Manager||Tk 20,1600||Tk 26,8800||Tk 26,8800|
|Captain 1||Tk 6,2160||Tk 6,2160||Tk 6,2160|
|Captain 2||Tk 6,3840||Tk 6,3840||Tk 6,3840|
|Waitperson||Tk 5,0400||Tk 5,0400||Tk 5,0400|
|Waitperson||Tk 3,8640||Tk 3,8640||Tk 3,8640|
|Waitperson||Tk 4,2000||Tk 4,2000||Tk 4,2000|
|Wait/Barperson||Tk 6,8400||Tk 6,8400||Tk 6,8400|
|Bartender||Tk 10,8000||Tk 10,8000||Tk 10,8000|
|Busboy 1||Tk 7,9200||Tk 7,9200||Tk 7,9200|
|Busboy 2||Tk 10,5600||Tk 10,5600||Tk 10,5600|
|Busboy 3||Tk 6,0000||Tk 6,0000||Tk 6,0000|
|Head Chef Linda||Tk 32,4000||Tk 32,4000||Tk 32,4000|
|Sous Chef||Tk 32,4000||Tk 32,4000||Tk 32,4000|
|Cook 1||Tk 23,0400||Tk 23,0400||Tk 23,0400|
|Cook 2||Tk 17,7600||Tk 17,7600||Tk 17,7600|
|Prep Cook/Dishwasher||Tk 11,0880||Tk 11,0880||Tk 11,0880|
|Prep/Dishwasher/Cleaning||Tk 11,7600||Tk 11,7600||Tk 11,760|
|Dishwasher||Tk 8,4000||Tk 8,4000||Tk 8,4000|
|Cleaning/Dishwasher||Tk 11,7600||Tk 11,7600||Tk 11,7600|
|Additional Cook||Tk 0||Tk 9,6000||Tk 9,6000|
|Additional Dishwasher||Tk 0||Tk 8,4000||Tk 8,4000|
|Additional Waitperson||Tk 0||Tk 4,2000||Tk 4,2000|
|Additional Busboy||Tk 0||Tk 0||Tk 6,0000|
|Total Payroll||Tk 236,5920||Tk 301,5120||Tk 307,5120|
$385,000 of funding is needed over the next year for renovations, furniture, kitchen equipment, liquor license, food & restaurant supplies, legal fees, working capital, marketing and personnel.
The financial plan depends on important assumptions, most of which are shown in the following table as annual figures. The key underlying assumptions are:
· We assume a slow-growth economy, without major recession.
· We assume that there are no unforeseen changes in the expectancy in the popularity of our restaurant.
· We assume access to investments and financing are sufficient to maintain and fulfill our financial plan as shown in the tables.
|FY 2009||FY 2010||FY 2011|
|Current Interest Rate||0.00%||0.00%||0.00%|
|Long-term Interest Rate||7.00%||7.00%||7.00%|
For our Break-Even Analysis, we assume running costs include our full payroll, rent, and utilities, and an estimation of other running costs.
|Monthly Revenue Break-even||Tk 50,8690|
|Average Percent Variable Cost||33%|
|Estimated Monthly Fixed Cost||Tk 34,0820|
Projected Profit and Loss
The most important assumption in the Projected Profit and Loss statement is the gross margin. Although it doesn’t jump drastically in the first year, over time the restaurant will develop its customer base and reputation and the growth will pick up more rapidly towards the fourth and fifth years of business.
Month-by-month assumptions for profit and loss are included in the appendix.
Profit and Loss
|FY 2009||FY 2010||FY 2011|
|Sales||Tk 943,8820||Tk 1,085,465||Tk 1,248,285|
|Direct Cost of Sales||Tk 311,4810||Tk 358,203||Tk 411,934|
|Other||Tk 0||Tk 0||Tk 0|
|Total Cost of Sales||Tk 311,4810||Tk 358,203||Tk 411,934|
|Gross Margin||Tk 632,4010||Tk 727,262||Tk 836,351|
|Gross Margin %||67.00%||67.00%||67.00%|
|Payroll||Tk 236,5920||Tk 301,512||Tk 307,512|
|Sales and Marketing and Other Expenses||Tk 55,8970||Tk 75,564||Tk 85,291|
|Depreciation||Tk 0||Tk 0||Tk 0|
|Leased equipment||Tk 2,0040||Tk 2,0040||Tk 2,0040|
|Professional fees accounting||Tk 2,0040||Tk 2,4000||Tk 3,0000|
|Professional fees legal||Tk 2,0040||Tk 2,4000||Tk 3,0000|
|Licenses and permits||Tk 9960||Tk 1,1520||Tk 1,3200|
|Office Supplies||Tk 2,0040||Tk 3,2000||Tk 4,8000|
|Postage||Tk 9960||Tk 2,3000||Tk 3,3000|
|Utilities||Tk 20,0040||Tk 21,9960||Tk 22,9920|
|Insurance||Tk 15,0000||Tk 18,0000||Tk 21,6000|
|Rent||Tk 36,0000||Tk 36,0000||Tk 36,0000|
|Payroll Taxes||Tk 35,4890||Tk 45,2270||Tk 46,1270|
|Other||Tk 0||Tk 0||Tk 0|
|Total Operating Expenses||Tk 408,9900||Tk 511,7550||Tk 536,9460|
|Profit Before Interest and Taxes||Tk 223,4110||Tk 215,5070||Tk 299,4050|
|EBITDA||Tk 223,4110||Tk 215,5070||Tk 299,4050|
|Interest Expense||Tk 13,1390||Tk 11,5320||Tk 9,7470|
|Taxes Incurred||Tk 72,3640||Tk 71,3910||Tk 100,1730|
|Net Profit||Tk 137,9080||Tk 132,5830||Tk 189,4840|
Gross Margin Monthly
Gross Margin Yearly
8.4 Projected Cash Flow
The cash flow depends on assumptions for inventory turnover, payment days, and accounts receivable management. Our projected same-day collection is critical, and is reasonable and customary in the restaurant industry. We do not expect to need significant additional support even when we reach the less profitable months, as they are expected.
Month-by-month assumptions for p