Zara restaurant business plan
Food restaurant business initial statement to investors and financial lenders, this restaurant/ethnic food business plan, is a candid disclosure of the zara restaurant & lounge business proposal - our intent is to set realistic business expectations, and eliminate any questions about the profitability of this business reneurs have a tendency to paint the restaurant 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 based costs on our vast industry and practical experience with similar ventures, validation against national restaurant industry cost averages, and analysis against local atlanta market averages. We have taken a collective look at all figures to make solid business business concept was derived from detailed market analyses. Instead of building a business around a preconceived concept, we analysed the market findings and built a concept around our consumers. 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. We have evaluated traditional and non-traditional risks associated with restaurant failure and accounted for them directly in the business plan. Our management team has 20 years combined experience, involved with over 86 restaurant openings, and deep involvement with the atlanta restaurant total capital requirement to launch zara restaurant & lounge is $740,000, of which $643,000 is allocated to start-up capital, and $97,000 as business operations cash plan is being submitted in order to secure a business loan for $430,000. Private investors, who will be part owners with a non-managerial interest in the business, will contribute the remaining $200, 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. On a linear projection, the entire financial debt will be retired by year recommend using liveplan as the easiest way to create graphs for your own business your own business will be an inspiring restaurant, combining an eclectic atmosphere with excellent and interesting food. Zara will be the restaurant of choice for a mature and adult crowd, couples and singles, young and old, male or ee welfare, participation, and training are equally important to our success. Our employees will feel a part of the success of zara restaurant & concept combines variety, ambiance, 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. The restaurant will stand out from the other restaurants in the area because of the unique design and decor. Our eclectic menu features regional specialties around the globe, from spanish ceviche, to thai and indian curries, to local ee retention focus: employee retention and development programs will be a primary focus and success platform for this business. We will use of this restaurant/ethnic food business plan to track actual costs against our forecasts in managing the to intense competition, restauranteurs must look for ways to differentiate their business to achieve and maintain a competitive advantage. Zara will fill that restaurant & lounge's objectives for the first three years of operation include:Keeping food costs at less than 35% of ing our gross margin from 65. By year g employee labor cost between 37-39% of total ing a small, unique restaurant with eclectic food and ing sales between $1,200,000 - 1,500,000 per ing and expanding the zara restaurant concept as a unique midtown destination ing our marketing and advertising in atlanta and in the neighboring suburbs to increase our customer ing a profitable investment return for investors for years 2 - your own business plan »your business plan can look as polished and professional as this sample plan. The financial sales forecasting tool is very intuitive and makes writing a business plan more fun. With 500 complete sample plans, easy financials, and access anywhere, liveplan turns your great idea into a great plan for more about research reports for eating and drinking places d business bar business planfast food restaurant business planorganic restaurant business restaurant, cafe, and bakery plansmore restaurant 't bother with copy & can download this complete sample plan as a text document for the #1 business planning software risk-free for 60 contract, no risk. Built for entrepreneurs like business plan pro to edit this sample plan and make it your own. Restaurant & lounge 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:The first year projections anticipates a below average sales volume, below average seat turn, and above average food/beverage cost. This position will help us ensure sufficient financial planning to accommodate a reasonable ramp-up period, and business success, also ensuring that we do not enter this venture addition to the $110,000 of owner investment and $130,000 in grant monies, zara is seeking $300,000 in long-term loans and $200,000 in investment for renovations, furniture, kitchen equipment, liquor license, food & restaurant supplies, legal fees, working capital, marketing and financial plan includes:Important analysis & mitigation forecast (5. Projected annual irr on investment of $15,000 - $49,: projected annual irr on investment of $50,000 - $99,um: projected annual irr on investment of $100,000 or or payback investor will receive equity shares as a part owner, with a non-managerial interest in the restaurant. Over and above the interest and principal repayment, investors contributing $100,000 or more will receive residuals for the life of the business as a bonus with our investors, our primary goal is to earn real profits and not ‘paper profits'. Our existing payback structure will begin paying dividend every quarter, starting in year 2 of business operations. Financial plan depends on important assumptions, most of which are reflected in the financial statements that follow. In atlanta, october through the late season is the most productive sales period, while the summer months tend to be the slowest restaurant period. Our experience in the industry confirms a longer ramp-up stage for restaurants over other retail/service businesses. As a new restaurant entry to the midtown market, the ramp-up in customer draw is expected to extend over 6 months. With a focus on cost control, we anticipate 6 months to fine tune the restaurant operations and manage our costs within the defined tolerance ory turnover and accounts payable.
Ethnic restaurant business plan
Alex hunte and peter smith have a combined 20 years of restaurant management, operations and business management financial plan incorporates a budget for an atlanta restaurant consulting group. Their services are budgeted for the business start-up analysis, rollout, and on retainer for 4 months of business operations. The selected firm has experience with over 72 restaurant launches, specializing in the atlanta will be recruiting a seasoned chef (national search) whose style is in accord with the restaurant concept and our market segment. We will be offering an equity interest to our select chef to maintain the industry accounting service will be contracted to a firm specializing in restaurant accounting. The current economic slowdown and recovery state was a key consideration in our restaurant concept. As we are in the midst of an economic recovery, we have scaled back the size to reduce business overhead, startup requirements, and business operating r mitigation has been our overall restaurant concept. He is currently an international consultant for various restaurant ventures, and we will use his expertise in past projects as a comparative have leveraged our membership with the national restaurant association to look at industry averages for this market segment for restaurant startup and operations. Additionally, we included a contingency buffer in the financial estimates to account for any potential cost have worked with our restaurant consulting firm to validate our cost estimates to their industry knowledge. Instead of going in with a predefined business concept, we let the market analysis define the need. What if there is an additional need for business capital after the restaurant has exhausted its 6-month buffer? Intent is to be a self-sufficient business far in advance of the 6-month probation period. With direct cost of goods (inventory, in this plan) at 35% of sales, our monthly break-even point is $92,081. We will surpass our break-even point in october of our first we exit the start-up phase of the business and focus on cost control, we will drive the cost of goods sold (cogs) down, dropping our break-even value, and increasing our gross y revenue break-even$92,e percent variable cost35%. We show an adjustment increase in year 2 as we exit our start-up phase of the business and move into our expected annual sales transition shows the restaurant managing through its start-up period, and gaining efficiency and customer loyalty. In summary, the restaurant will develop its customer base and reputation and the growth will pick up more rapidly towards the second and third years of business. Our projected same-day collection is critical, and is reasonable and customary in the restaurant industry. We do not anticipate difficulty meeting our debt obligations based on achieving the specific goals outlined in this plan. On a linear projection, zara restaurant & lounge has a positive net worth beginning in year forma balance 2006fy 2007fy 2008fy 2009fy $117,067$87,461$82,176$117,144$184,ory$37,839$40,589$41,462$43,473$45, current assets$73,311$73,311$73,311$73,311$73, current assets$228,217$201,361$196,949$233,929$303,-term assets$65,000$65,000$65,000$65,000$65,lated depreciation$6,500$13,000$19,500$26,000$32, long-term assets$58,500$52,000$45,500$39,000$32, assets$286,717$253,361$242,449$272,929$335,ities and capitalfy 2006fy 2007fy 2008fy 2009fy ts payable$61,298$63,657$65,663$67,319$69,t borrowing$0$0$0$0$ current liabilities$0$0$0$0$al current liabilities$61,298$63,657$65,663$67,319$69,-term liabilities$252,228$204,456$156,684$108,912$61, liabilities$313,526$268,113$222,347$176,231$130,-in capital$440,000$440,000$440,000$440,000$440,ed earnings($427,209)($486,808)($464,752)($429,897)($358,302). Industry profile ratios based on the standard industrial classification (sic) code 5812, ethnic food restaurants, are shown for following table outlines some of the more important ratios from the ethnic food restaurants industry. Addressing this question we look at the exit strategy as a definition of our business vision and goals, as well as a contingency in the event the business is unsuccessful. We have addressed this question at several levels:Expansion as a business have set multiple financial goals to grow the success of the zara concept, and compound the profit return for zara ion (option 1): our overall goal to maintain zara as a unique and eclectic concept. Based on projections, the business has captured market share by the end of the first year. By second quarter of year 2, the owners will look to launch a second restaurant concept. Expansion will be considered with our financial backers and investor ion (option 2): throughout our business plan we have stayed focus that zara would be successful as a larger venue, with greater sales capacity and revenue potential. Our objective with the site selection and lease negotiation is to have the opportunity to expand the restaurant as a logical growth and profit e sale: we are in the business of making money. At this stage the business debt is reduced, profit margins are increasing, and zara has established market share. We will look at the private sale of the majority interest via a) leveraged buyout, or b) a larger restaurant consortium. Sales and profit margins will be based on the restaurant valuation in year ial solvency: the financial projections indicate that exit will be achievable over 3 years for the operating capital line of credit. The entire financial debt would be retired by year strategy to retire the at zara 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 attempts a business anticipating failure, however sometimes ventures do not fulfill their the event that our venture cannot achieve profitability and retire the encumbrances, we will first attempt to sell the operation and use the proceeds to clear all outstanding balances. The restaurant features 3 venues in one (a concept called ‘multi-branding'): a tapas lounge, cosmopolitan bar, and full service dining. We will draw on our advisory board as part of the site selection and lease menuzara is focused on servicing atlanta's growing demand for an ethnic eating experience. For lack of a better term we are launching a ‘multi-ethnic' cuisine restaurant - a restaurant concept that responds to atlanta's need for selection and choice. The midtown demographics fit this concept managementour management team has over 48 years combined experience in food, restaurant and hotel, business management, finance, and marketing restaurant will start out as an llc corporation, owned by its founders, zander hunte and peter smith.
Hunte has a background in international business management, and is certified in restaurant and hotel management. Under the management of zander hunte, myth restaurant was a feature restaurant in toronto, and distinguished as a top 10 restaurant while under his management from 1992 - are currently negotiating a restaurant space of 3,000 sq. In midtown atlanta, georgia, and will open zara in october of this start-up costs are mostly expensed equipment, furniture, painting, reconstruction, rent, start-up labor, liquor license, and legal and consulting costs associated with opening our restaurant. This is a solid start-up forecast based on our market analysis and our knowledge and experience in the will purchase the following $73,311 worth of current assets during start-up :Fixtures and lighting: $32, equipment: $26, and televisions: $8, equipment (2 computers, fax, printer, safe): $6,-term assets in the amount of $65,000 include all kitchen have budgeted for the services for a premier restaurant consultant familiar with the atlanta market. This company will have an integral role in validating the final restaurant location and personnel selection, and participate on the zara advisory two owners are personally committing $110,000 of capital, plus a $300,000 sba 7(a) loan guaranty. We are seeking $200,000 of equity investment to fully fund zara's startup on & rant locationmidtown atlanta is the location selected for the zara concept. Zara's will benefit from atlanta's desire to revamp the midtown district with a $130,000 renovation grant for restoring and renovating the 100 year old property we plan to market has been carefully selected and tested for the necessary demographics and retail traffic necessary to meet the goals laid down for profitability. The patio setting will be a fun and casual atmosphere for the summer ing criteriathe restaurant will be located in midtown atlanta. 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. 12 s - market brunch takeout recommend using liveplan as the easiest way to create graphs for your own business your own business rant consultant (4 months). Restaurant/re: cost , tap & permit ss license & temp certificate of ies, disposal, tax & ty deposits (phone/elec/gas/water). Recommend using liveplan as the easiest way to create automatic financials for your own business your own business -up expenses to -up assets to funding -cash assets from requirements from onal cash balance on starting ities and -term ts payable (outstanding bills). Capital and your own business plan »your business plan can look as polished and professional as this sample plan. Just wrote my first business plan in 24 hours using liveplan and it's beautiful and complete. With 500 complete sample plans, easy financials, and access anywhere, liveplan turns your great idea into a great plan for more about research reports for eating and drinking places d business bar business planfast food restaurant business planorganic restaurant business restaurant, cafe, and bakery plansmore restaurant 't bother with copy & can download this complete sample plan as a text document for rant consultant (4 months). 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 atlanta's restaurant customers:Portion selection: nearly 95% of our surveyed focus group endorsed having a choice of different size portions. Our customers want the option to choose what satisfies their variety: ethnic restaurants are increasing in atlanta. Our research results do not identify any single ethnic style of restaurant as desired, but rather suggest that incorporating strong multi-ethnic influences in the menu selection will be popular. Zara takes all these factors in consideration for the design of this cosmopolitan able prices: this was no surprise given the economic tide. Although the restaurant industry as a whole has seen growth in 2002/2003, customers are demanding value for their dining dollar. We have defined the following groups as targeted segments that contribute to our growth projections:Downtown atlanta destination 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 bars in the area. Business person: they work hard all day and often stay overnight in a strange city. Zara's cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people, whether they live in and around atlanta or are here for wn atlanta couples: the restaurant will have an intimate, romantic, enticing adult atmosphere that suggests "date. In most cases they are budgeting to eat out on a regular basis, as they don't have the time to prepare food destination customer: atlanta is a very 'sectioned' city, and consumers often look only in their own neighborhoods for restaurant options. Zara will break these habits, using marketing to draw customers from outside the main city limits. Zara's will be especially appealing to married suburban couples indulging themselves with a "date night" downtown, away from the kids. Zara's will be a destination dining locale, with its attractive atmosphere, international menu, and lounge. The owners know this through their many years of experience opening, running, and improving restaurants across north america. 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 rants make money by taking inexpensive ingredients, combining them in creative ways, cooking them properly, and selling them at a much higher price. 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. 2003, the top ten atlanta restaurants shared two things: cozy, hip interiors and reasonably priced, regionally specialized menus. Our competitors are heading in the right direction, but only zara is based on sound market research in the local a consumers are seeking variety and new experiences. 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.
Shah commerce and beverage entiality agreementthe undersigned reader ac knowledges that the information provided by_________________________ in this business plan is confidential; therefore, reader agrees not todisc lose it without the express written permission of _________________________. Is ac knowledged by reader that information to be furnished in this business plan is in all respec tsconfidential in nature, other than information which is in the public domain through other meansand that any disc losure or use of same by reader, may cause serious harm or damage to_________________________. Executive summary our initial statement to investors and financial lenders, this restaurant/ethnic food business plan, is a candid disc losure of the zara restaurant & lounge business proposal - our intent is to set realistic business expec tations, and eliminate any questions about the profitability of this business venture. Entrepreneurs have a tendency to paint the restaurant 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 prec autions to validate our business and financial models, foc using on realistic projec tions. We have based costs on our vast industry and prac tical experience with similar ventures, validation against national restaurant industry cost averages, and analysis against loc al atlanta market averages. We have taken a collec tive look at all figures to make solid business estimates. Instead of building a business around a prec onceived concept, we analysed the market findings and built a concept around our consumers. 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. We have evaluated traditional and non-traditional risks associated with restaurant failure and ac counted for them direc tly in the business plan. Our management team has 20 years combined experience, involved with over 86 restaurant openings, and deep involvement with the atlanta restaurant industry. The total capital requirement to launch zara restaurant & lounge is $740,000, of which $643,000 is alloc ated to start-up capital, and $97,000 as business operations cash reserve. Private investors, who will be part owners with a non-managerial interest in the business, will contribute the remaining $200,000. We have taken the necessary prec autions to ensure the business is fully capitalized, and have addressed all financial shortfalls to ensure a successful business start-up. Under a realistic page restaurant & lounge sc enario, the company should have over $84,000 in c ash balance the third year. 1 mission · zara will be an inspiring restaurant, combining an eclec tic atmosphere with excellent and interesting food. Zara will be the restaurant of choice for a mature and adult crowd, couples and singles, young and old, male or female. The restaurant will stand out from the other restaurants in the area bec ause of the unique design and dec or. Employee retention focus: employee retention and development programs will be a primary foc us and success platform for this business. We will use of this restaurant/ethnic food business plan to trac k ac tual costs against our forec asts in managing the business. Due to intense competition, restauranteurs must look for ways to differentiate their business to ac hieve and maintain a competitive advantage. 3 objectives zara restaurant & lounges objec tives for the first three years of operation include: · keeping food costs at less than 35% of revenue. The restaurant features 3 venues in one (a concept called ‘multi-branding): a tapas lounge, cosmopolitan bar, and full service dining. The menu zara is foc used on servicing atlantas growing demand for an ethnic eating experience. For lac k of a better term we are launching a ‘multi-ethnic cuisine restaurant - a restaurant concept that responds to atlantas need for selec tion and choice. The management our management team has over 48 years combined experience in food, restaurant and hotel, business management, finance, and marketing arenas. 1 company ownership the restaurant will start out as an llc corporation, owned by its founders, zander hunte and peter smith. Smith have a long-standing professional relationship in the restaurant industry, stemming bac k to toronto, canada. Smith is also an international restaurant consultant for top organizations such as the starwood group, who own the hotel chains of the westin, sheraton hotels, four points, st. Hunte has a bac kground in international business management, and is certified in restaurant and hotel management. Under the management of zander hunte, myth restaurant was a feature restaurant in toronto, and distinguished as a top 10 restaurant while under his management from 1992 - 1995. In midtown atlanta, georgia, page restaurant & lounge and will open zara in october of this year.
Our start-up costs are mostly expensed equipment, furniture, painting, rec onstruction, rent, start-up labor, liquor license, and legal and consulting costs associated with opening our restaurant. We have budgeted for the services for a premier restaurant consultant familiar with the atlanta market. This company will have an integral role in validating the final restaurant loc ation and personnel selec tion, and participate on the zara advisory board. Location & operations restaurant location midtown atlanta is the loc ation selec ted for the zara concept. Zaras will benefit from atlantas desire to revamp the midtown district with a $130,000 renovation grant for restoring and renovating the 100 year old property we plan to lease. Optional patio: during the busy summer months customers can also sit outside on our patio page restaurant & loungeand we will offer a special summer menu, featuring lighter fare, exotic drinks, as well as non-alcoholic offerings. The patio setting will be a fun and casual atmosphere for the summer ing criteriathe restaurant will be loc ated in midtown atlanta. The restaurant will operate during peakservice time to take advantage of street traffic, and after-hour patronage from theentertainment fac ilities in the area. Page restaurant & loungetable: start-upstart-uprequirementsstart-up expensesproject management $0restaurant consultant (4 months) $15,911design $0architectural design $2,195structural & plumbing design $1,368mechanical & electrical design $2,155graphic design $1,185electrical & structural engineering fees $2,592design consultants (kitchen, interior & dining) $9,119engineer & architect fees $7,040construction $0plumbing $33,244hvac (air return, air ducts, etc. 14,538flooring $14,622fire alarm system $3,092security & phone system $4,615equipment $0liquor control system - lease $0stools, chairs, tables, uniforms $38,025pos (point of sale system) - lease $0glassware, flatware, smallware (bar & lounge) $3,298glassware, flatware, smallware & supplies (foh) $8,298dishwasher, ice & glasswasher - lease $0kitchen equipment freight fees $2,389ff&e taxes (taxes on purchase) $7,988operational $0capitalized legal fees (llc, investor agreements) $7,080software: restaurant/inventory $5,500software: cost control $6,000impact, tap & permit fees $3,115business license & temp certificate of occ. 1,615liquor licenses $4,615utilities, disposal, tax & insurance $9,275security deposits (phone/elec/gas/water) $6,250initial lease deposits $6,250bank & loan closing costs $6,250web site construction $5,800initial marketing, training & pr $19,550research & development $3,050start-up salary (mngt & chefs) $58,050recruiting (staff) $14,550inspections $750initial cleaning services $1,000total start-up expenses $427,209 page restaurant & lounge start-up assets cash required $97,099 start-up inventory $27,500 other current assets $73,311 long-term assets $65,000 total assets $262,910 total requirements $690,119 table: start-up funding start-up funding start-up expenses to fund $427,209 start-up assets to fund $262,910 total funding required $690,119 assets non-cash assets from start-up $165,811 cash requirements from start-up $97,099 additional cash raised $49,881 cash balance on starting date $146,980 total assets $312,791 liabilities and capital liabilities current borrowing $0 long-term liabilities $300,000 accounts payable (outstanding bills) $0 other current liabilities (interest-free) $0 total liabilities $300,000 capital planned investment zander hunte $60,000 peter smith $50,000 investor 1 $40,000 investor 2 $40,000 investor 3 $40,000 investor 4 $40,000 investor 5 $40,000 midtown revitalization grant $130,000 additional investment requirement $0 total planned investment $440,000 loss at start-up (start-up expenses) ($427,209) total capital $12,791 total capital and liabilities $312,791 total funding $740,0003. Services page restaurant & loungezara restaurant & lounge will feature international dishes, an eclec tic ambiance, and superiorservice. The zara bar features a comprehensive selec tion of loc al andinternational kitchen staff will have the best in c ulinary education and work experience. The lounge and restaurant staff will offer the finestservice in an elec tric atmosphere and offer customers an extraordinary dining experience. Zara menus zaras varied international menu will feature thai, chinese, spanish, and other regional flavors. Zaras marketing will foc us on our exotic foods, but our hours, target market, and loc ation will produce significant alcoholic drinks sales. The list below offers a small selec tion of our opening menu offerings: zara tapas · shrimp baskets w/ sweet & sour peanut coulis minced curry beef/c hicken w/ onions in roti wrap (or spring roll) · mixed seafood ceviche w/ cousc ous siding · bamboo chicken satay w/ kaffir lime and sesame marmalade zara appetizers · bread basket served with olive oil, blac k pepper, and goat cheese dip · blue crab fritters with mango-tamarind sauce · crab cake medallions w/ shrimp & lobster ‘zara salads · mixed greens with spanish sherry wine vinaigrette · asian pear and endive salad with blue cheese & walnuts entrees · tequila sc allops w/ a spanish sherry reduction · thai red chili rubbed shrimp · voodoo prince curry chicken and boc k chow w/sticky rice in banana leaf · herb roasted chicken with ‘zara coo-chee (house) spices desserts · choc olate chunk bread pudding w/ bourbon cherry sauce · zara choc olate explosion – milk, dark and white chocolate · zara fruit plate specialty drinks & coffees ($3. Alcoholic drink specials will be featured, as well as a page restaurant & lounge large non-alcoholic selec tion. Market analysis summary instead of building a business around a prec onceived 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 atlantas restaurant customers: 1. Our research results do not identify any single ethnic style of restaurant as desired, but rather suggest that incorporating strong multi-ethnic influences in the menu selec tion will be popular. Zara takes all these fac tors in c onsideration for the design of this cosmopolitan restaurant. Although the restaurant industry as a whole has seen growth in 2002/2003, customers are demanding value for their dining dollar. We have defined the following groups as targeted segments that contribute to our growth projec tions: · the business person · downtown atlanta couples · the destination customer · high-end singles · tourists these particular market segments are 25-45 years old, have disposable income, and are page restaurant & lounge seeking upsc ale, trendy, and comfortable restaurant options. These are the types of people who frequent other restaurants and bars in the area. Table: market analysis market analysis year 1 year 2 year 3 year 4 year 5 potential customers growth cagr business person 18% 9,925 10,223 11,348 11,688 12,039 4. Target market segment strategy the business person: they work hard all day and often stay overnight in a strange city. Zaras cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people, whether they live in and around atlanta or are here for work. Downtown atlanta couples: the restaurant will have an intimate, romantic, enticing adult atmosphere that suggests "date. In most cases they are page restaurant & lounge budgeting to eat out on a regular basis, as they dont have the time to prepare food nightly. The destination customer: atlanta is a very sectioned city, and consumers often look only in their own neighborhoods for restaurant options. Zara will break these habits, using marketing to draw customers from outside the main c ity limits. Zaras will be espec ially appealing to married suburban couples indulging themselves with a "date night" downtown, away from the kids. Many of these consumers are new to atlanta from larger cities, ac customed to dining within the city and at non-franchised restaurants. Zaras will be a destination dining loc ale, with its attrac tive atmosphere, international menu, and lounge.
The owners know this through their many years of experience opening, running, and improving restaurants ac ross north america. However, those based on solid understandings of the market needs, and management of inventory and staff have a much higher chance of success, espec ially when c ombined with prior experience in the restaurant industry. Restaurants make money by taking inexpensive ingredients, combining them in c reative ways, cooking them properly, and selling them at a much higher price. While some entrepreneurs think that success is as simple as a good loc ation 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. Competition and buying patterns in 2003, the top ten atlanta restaurants shared two things: cozy, hip interiors and reasonably priced, regionally specialized menus. Our competitors are heading in the right direc tion, but only zara is based on sound market research in the loc al market. 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. Maintaining our edge will depend partly on marketing ourselves as an adult-only destination, and not a family restaurant. As an exciting and ec lec tic restaurant, we will be the talk of the town. Therefore, the exec ution of our concept is the most critical element of our plan. 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. The kitchen (direct competitor): we were able to draw some conclusions from this analysis that helped defined the concept and positioning for zara: 1) keep the menu pricing modest but offer superior food quality and presentation. We plan to keep the menu prices under $20; 2) midtown is a prime restaurant loc ation. One midtown kitchen is in an obsc ure loc ation but has thrived as one of the more successful restaurants in the area; and 3) the customer page restaurant & lounge base in this segment of atlanta is ready for after-hours dining, and is willing to travel to establishments that ac commodate their needs. Lunaci (direct competitor): this restaurant is a main c ompetitor for zara, a casual dining restaurant that has evolved to be a great success story for the midtown district. This restaurant served to validate 1) the tapas concept appeal for midtown c ustomers; 2) the evolving need for after-hours dining; 3) tapas as a good food concept for after-hours dining (smaller portions, smaller price); 4) the appeal of live entertainment. Cumulus (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 loc al residents. During this study it was evident that some patrons came exclusively to sit at the bar, without any intent of dining in the restaurant. Cumulus is more of a formal dining restaurant and meets a certain need within the community, but i dont see it as a direc t competitor of zara. I do feel that it has some very special elements that have helped it succeed over the past 3 years, which zara can benefit from. Cheesecake factory (#1 restaurant comparison): although cheesecake fac tory is outside of zaras restaurant district and not considered a direc t competitor, it was beneficial to analyze the most profitable restaurant in atlanta to understand what contributes to their success. Cheesecake fac tor offers several key elements that would also benefit zara: 1) customer satisfac tion through moderate pricing and high-quality food; 2) location selec tion to benefit from core customer demographics, situated in a busy/popular area for both business and residential traffic; 3) exceptional service, from the valet, to hosting, to wait, bus, and bar staff; and 4) menu variety, offering a broad array of menu items. Swing restaurant (indirect competitor): this restaurant is not in our market district and therefore not a direc t competitor, although we do consider it an ‘indirec t competitor. This serves as a true validation that the timing is right for the zara restaurant & lounge restaurant analysis: mumbo jumbomumbo jumbo was an atlanta restaurant attrac tion in the downtown c ore, a strong c ompetitorthat was severely impac ted by the patronage demise after 9/11. I also completed an analysisof this restaurant bac k in 1999 and compared it to this current analysis in 2003. Several fac torsled to closing of this restaurant: page restaurant & loungelocation:this was a very cosmopolitan restaurant loc ated in a core business community. This was adestination restaurant and a secondary selec tion for the general customer base in this area. Lesson learned: as part of this analysis, we have determined that the downtown c ore is not a good fit for the zara concept. Midtown is atlantas major growth district and is developing the residential infrastructure in pace with the business er segment:atlantas downtown c ore is not ready for this type of restaurant. Atlantas downtown c ore is abusiness district, and residential development for this area is at the genesis state. The largest percentage of this customersegment will be looking for a restaurant in which to conduct business or a familyestablishment; mumbo jumbo would not be a primary selec tion in either case. Lesson learned: zaras target market demographics are perfec tly in alignment with the midtown profile. We will look to the business core for our primary daytime business, but to our residential core for our dinner and after-hours patronage. In addition, the business core will look to zara as a plac e of socialization for dinner and after-hours unwinding. Mumbo jumbo depended on the business segment for their lunch and dinner profits, and customers who would travel from outside the downtown district to eat at the restaurant – there was no static dinner lity:hand-in-hand with loc ation, this restaurant also suffered from poor visibility.
The business and tourist customerstend to selec t a restaurant from touring the area and ac cessibility. In addition, we will use signage and exterior déc or as means to attrac t customers and get all, this restaurant was a staple in atlantas downtown c ore for over 10 years, but keyrestaurant disc iplines (location, customer segment, visibility) came bac k to hurt them as theec onomic climate analysis conclusion:at the end of the day, everyone that sells prepared meals in this district is a zaracompetitor, bec ause we all compete for the same home meal replac ement dollar. However,there are two segments of the restaurant industry that are our main c ompetition: the casualdining restaurant and the fine dining value , if the food and service is better at a fine dining restaurant than a casual restaurant, butprice has bec ome a fac tor as a result of the economic turns, where is a customer more likelyto go? Page restaurant & lounge 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 zaras business model. 2 marketing strategy zara restaurant & lounges marketing strategy will be to promote our elec tric food, superior service, and exciting concepts to draw in the loc al repeat customers. We budgeted a great deal into the renovations and dec or to generate the aesthetic appeal of zara. Customer service: in our years within the restaurant industry, customer service has always been the major draw for the dining clientele. Advertising and promotion: our advertising plan and media sc hedule call for targeting customers direc tly through loc al publications aimed at , respec tively, singles, couples, and destination customers. Media objec tives and strategy: establish our image as a unique midtown restaurant with great service, value, and great food served in an eclec tic atmosphere. We will maximize efficiency in the selec tion and sc heduling of advertisements by: · selec ting primary business publications with high specific market penetration, using the creative loafing dining section, the atlanta journal constitution, atlanta city search, and soc ial diva, which all reach our targeted demographics. 1 marketing program in line with our marketing strategy, we will employ three different marketing tac tics to increase customer awareness of zara: in-restaurant marketing, public relations marketing, and media marketing. Word-of-mouth/in-restaurant marketing · restaurant night: every first monday of the quarter, we will have a special evening for restaurant people. A perfect night for the loc al areas restaurant owners, chefs and staff to get together to disc uss the market and food trends, and possible co-op efforts to promote the midtown district. Monthly dating connection: with the increasing appeal of internet and speed dating, the restaurant will offer a monthly dating night. Live entertainment parties · spec ial events · valentines day · zara halloween masquerade party · wine tasting weekend · new years eve party public relations marketing · georgia hospitality & tourism v. We will encourage the media and restaurant critics to meet at the restaurant and review the dec or, service and food. This initial review and input will give critics and media commentors a stake in zaras success, through their contributions to the final design. Brochures: make a broc hure for the in-town hotels and business establishments to provide to their guests and staff, containing interior pictures of our restaurant, menus and prices. This page restaurant & lounge will offer us higher visibility for future functions and community events. Private functions: target marketing to businesses for regular business lunch and dinner entertaining, and private functions. Media marketing · newspaper campaign: a very targeted media campaign to obtain featured articles about the restaurant in their living, entertainment and dining segments. Restaurant and special events website: we have contrac ted with loc al design teams to deliver a high-quality, navigable, constantly updated website. Billboard advertisement: one month prior to the opening, distinct billboard ads will advertise the launch of the restaurant. Our sales strategies must take the next step and encourage customers to bec ome repeat customers, and to tell all their friends and ac quaintances about the great experiences they just had at zara. New restaurants often make one of two mistakes: they are unprepared or underprepared for opening, and initial poor service, speed, or quality disc ourages customers from returning, or they spend all of their efforts at opening, and are unable to maintain the initial quality customers expec t on return visits, dec reasing word of mouth advertising and leading to poor revenues. We can ac complish this by: · hiring employees who genuinely enjoy their jobs and apprec iate zaras unique offerings · continually assessing the quality of all aspec ts mentioned above, and immediately addressing any problems · interac ting with our customers personally, so they know that their feedback goes direc tly to the owners · evaluating food choices for popularity, and keeping favorites on the menu as we rotate seasonal foods and specials page restaurant & lounge5. We anticipate that the business will not be at full operating capacity until the sixth month of operations. Although we hope to do catering for loc al businesses and government offices with time, we will insist on payment at delivery - we will not sell on credit. Table: sales forecast sales forecast year 1 year 2 year 3 year 4 year 5 sales total sales food $853,595 $959,047 $1,006,999 $1,047,279 $1,089,170 total sales bar/beverages $220,174 $252,041 $272,204 $293,981 $317,499 other $0 $0 $0 $0 $0 total sales $1,073,769 $1,211,088 $1,279,204 $1,341,260 $1,406,670 direct cost of sales year 1 year 2 year 3 year 4 year 5 total cost of sales: food $298,758 $322,240 $329,289 $336,048 $342,762 total cost of sales: bar/beverages $72,657 $76,167 $77,687 $79,228 $80,835 other $0 $0 $0 $0 $0 subtotal direct cost of sales $371,416 $398,407 $406,976 $415,276 $423,597 page restaurant & lounge5. Milestones the following milestones table lists important business milestones, with dates and managers in charge of each deliverable. Page restaurant & loungetable: milestonesmilestonesmilestone start date end date budget manager departmentengage restaurant consulting 7/31/2004 7/31/2004 $0 alex/peter ownersfirmsite selection 9/8/2004 9/29/2004 $0 alex/ consultantfinal restaurant location 9/30/2004 10/1/2004 $0 alex/peter ownersapprovedinvestor finance phase 8/22/2004 10/22/2004 $0 alex ownersinvestor capital secured 10/27/2004 10/27/2004 $0 alex ownersinvestor partnership llc 10/28/2004 10/31/2004 $0 s. Hollier legalformedinterview for construction team 10/28/2004 11/3/2004 $0 alex ownersrecruit chef (equity partner) 10/28/2004 11/14/2004 $0 alex/peter ownersreceive final contractor bids 11/4/2004 11/17/2004 $0 peter ownerconstruction budget approved 11/19/2004 11/19/2004 $0 alex/peter ownerssecured sba loan 11/1/2004 11/21/2004 $0 alex/peter ownershire restaurant architect 11/20/2004 11/21/2004 $0 alex/peter ownershire interior design firm 11/20/2004 11/21/2004 $0 alex/peter ownershire kitchen engineer 11/20/2004 11/21/2004 $0 alex/peter ownershire general contractor 11/20/2004 11/21/2004 $0 alex/peter ownersfinalize chef partnership 11/15/2004 11/21/2004 $0 s. Shafer consultantsrestaurant design complete 11/25/2004 12/12/2004 $0 contractor x design contractinterior design complete 11/25/2004 12/12/2004 $0 contractor y design contractkitchen design complete 11/25/2004 12/12/2004 $0 contractor z design contractrestaurant opening date 12/15/2004 12/15/2004 $0 alex/peter ownersapprovedfinalize menu & wine selection 11/21/2004 12/15/2004 $0 chef/peter kitchen/ownermedia plan review 12/15/2004 12/19/2004 $0 alex/ pr marketingapply for liquor license 12/15/2004 12/19/2004 $0 alex/r owner/legalapply for construction permit 12/15/2004 12/19/2004 $0 contractor a gen. Contractorsubmit kitchen plan for 12/15/2004 12/19/2004 $0 contractor z design contractapprovalboard of health approval for 12/29/2004 1/31/2005 $0 board citykitchenliquor license approved 12/29/2004 1/31/2005 $0 board cityarchitect review board approval 12/29/2004 1/31/2005 $0 contractor x design contractcorporate brochure 2/2/2005 2/13/2005 $0 man pr marketingreview business & marketing 3/1/2005 3/5/2005 $0 alex/peter ownersplanlaunch zara website 3/15/2005 3/15/2005 $0 alex media marketingorder kitchen equipment 2/1/2005 3/20/2005 $0 alex/peter ownersorder restaurant/lounge 2/2/2005 3/20/2005 $0 alex/peter ownersfurnitureorder office furniture & 2/2/2005 3/20/2005 $0 alex/peter ownerssuppliesbusiness & marketing plan 4/26/2005 4/30/2005 $0 alex/peter ownersreviewpr/media advertising (phase 1) 5/1/2005 5/15/2005 $0 man pr marketingproduction and completion of 5/5/2005 5/17/2005 $0 chef/peter kitchen/ownermenusconstruction of restaurant 2/2/2005 5/20/2005 $0 contractor a gen.
Contractorpre-opening of zara restaurant 5/24/2005 5/24/2005 $0 alex/peter ownersemployee training (phase 1) 5/18/2005 5/24/2005 $0 chef/peter kitchen/owner page restaurant & lounge wine class for employees 5/18/2005 5/24/2005 $0 peter wine distributor (phase 1) critics choice vip party 5/25/2005 5/26/2005 $0 man pr marketing final construction punch out 5/21/2005 5/28/2005 $0 contractor a gen. Contractor restaurant revisions 5/27/2005 6/2/2005 $0 alex/peter owners employee training (phase 2) 5/27/2005 6/2/2005 $0 chef/peter kitchen/owner wine class for employees 5/27/2005 6/2/2005 $0 peter wine distributor (phase 2) grand opening of fusion 6/3/2005 6/3/2005 $0 alex/peter owners restaurant vip party 1 6/3/2005 6/3/2005 $0 man pr marketing vip party 2 6/4/2005 6/4/2005 $0 man pr marketing web site & e-mail media 5/1/2005 6/5/2005 $0 alex media marketing launch general public opening 6/5/2005 6/5/2005 $0 alex/peter owners launch 30-day grand opening 5/1/2005 6/5/2005 $0 man pr marketing pr/media advertising (phase 2) 6/1/2005 6/14/2005 $0 alex pr marketing business & marketing plan 7/5/2005 7/9/2005 $0 alex/peter owners review business & marketing plan 8/2/2005 8/6/2005 $0 alex/peter owners review update brochure 8/2/2005 8/13/2005 $0 alex media marketing direct mail 8/16/2005 8/16/2005 $0 alex media marketing advertising (phase 3) 9/1/2005 9/15/2005 $0 man pr marketing zara masquerade party 10/31/2005 10/31/2005 $0 man pr marketing direct mail 11/1/2005 11/1/2005 $0 alex media marketing new corporate accounts (5) 9/1/2005 11/1/2005 $0 zander/peter owners advertising (phase 4) 11/15/2005 11/19/2005 $0 man pr marketing advertising (phase 5) 12/15/2005 12/30/2005 $0 man pr marketing zara new years party 12/20/2005 1/1/2006 $0 man pr marketing totals $06. It will be the virtual business card and portfolio for the company, simple, contemporary and well designed. We will also have a monthly paparazzi review about what did happen at zara to get new customers interested in our restaurant. We have assembled a team that embrac es different disc iplines, ac complished professionals with expertise in all areas of the page restaurant & loungebusiness, including marketing and restaurant owners, zander hunte (managing partner) and peter smith (exec utive chef),have considerable experience in the restaurant year 2, we will hire a general manager to handle the day-to-day restaurant will assist zaras restaurant & lounge to grow even cant build investor confidence based on what you will do, but you can inspire confidencebased on what you have done. This zara managementteam has deep roots in the restaurant segment, and have the prac tical experience to makethis venture another great success. Management team zara restaurant & lounge, with more than 48 years of experience between the key officers, understands the importance of a strong management team. Zaras advisory board · stephen hollier of hollier collier & loewenthal: corporate attorney · john katz of ss&g financial services: cpa · robert shaefer of shafer hospitality services: restaurant consultant · mary zimmerman of the zimmerman group: media & public relations consultant ownership & management together, alex hunte and peter smith bring over 20 years of experience in the restaurant industry to their new joint venture. Hunte brings to zara an ac complished restaurant bac kground, exceptional business ac umen, and a lifetime passion for the restaurant experience. Like it, successful ventures in the restaurant industry must balance capitalizing on new trends with c ontinual quality assessment. Alexs understanding of day-to-day cash flow planning and staff management will be critical to zaras financial success. Hunte has a bac kground in international business management and business start-ups, and is certified in restaurant and hotel management. Hunte is a strong business leader responsible for strategic planning and continued growth of restaurant services and business development. In computer sc ience · certified in restaurant & hotel management from ryerson university · pmp (projec t management professional) certification · member of the midtown alliance · business partner member of the national restaurant association. Smith is responsible for the concept and the daily operations management, with yearly sales page restaurant & lounge targets of $7 million. In addition, peter is the owner of bauhaus bar and nightclub, and former owner of myth restaurant, ouzeri, and kapilyo restaurant, all financial and critical successes. Smiths contrac ting responsibilities for zara included logistics, site and lease negotiations, concept definition, start-up and financial forec ast, menu and operations management, as well as implementation and launch management. Smith c ontributes the experience of his past successes, and is charged with leading the restaurant operations, staff selec tion, menu definition and training initiatives for zara restaurant & lounge. They will plan, develop, and establish customer service policies and objec tives, and write, explain, and enforce an employees manual for all employee-related policies. 2 personnel plan we believe the personnel plan is in good proportion to the size of the restaurant and projec ted revenues. The staff will include 13 full-time employees and 8 part-time employees, who will work a total of 754 manhours per week and generate an average monthly gross payroll of $27,308 for the first year in business. Page restaurant & loungekitchen:the exec utive chef will be assisted by: · an assistant chef from a national search (1). He will be the primary responsible for dailyrestaurant operations, taking care of wait and bar staff. To help peter, he 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). Salaries (partners): · zander hunte: $ 48,000 per year · peter smith $ 32,160 per year page restaurant & loungetable: personnelpersonnel plan year 1 year 2 year 3 year 4 year 5general manager (year 2+) $0 $0 $28,000 $28,500 $29,000partner/manager $48,000 $48,000 $48,000 $48,000 $48,000partner/asst. Chef $32,160 $32,160 $32,160 $32,160 $32,160hostess (full time) $24,000 $24,500 $25,000 $25,500 $26,000hostess (part time) $13,200 $13,500 $14,000 $14,300 $14,800waitperson 1 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 2 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 3 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 4 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 5 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 6 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 7 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 8 $5,640 $5,640 $5,640 $5,640 $5,640waitperson 9 $5,640 $5,640 $5,640 $5,640 $5,640wait/barperson $10,440 $10,440 $10,440 $10,440 $10,440bartender 1 $14,400 $14,400 $14,400 $14,400 $14,400bartender 2 $7,200 $7,500 $7,500 $7,500 $7,600busboy 1 $9,120 $9,120 $9,120 $9,120 $9,120busboy 2 $11,760 $11,760 $11,760 $11,760 $11,760busboy 3 $7,200 $7,200 $7,200 $7,200 $7,200assistant chef $44,400 $44,400 $44,400 $44,400 $44,400sous chef $32,400 $32,400 $32,400 $32,400 $32,400cook 1 $24,240 $24,240 $24,240 $24,240 $24,240cook 2 $18,960 $18,960 $18,960 $18,960 $18,960prep cook/dishwasher $12,288 $12,288 $12,288 $12,288 $12,288prep cook/dishwasher/cleaning $12,960 $12,960 $12,960 $12,960 $12,960dishwasher 1 $8,640 $8,640 $8,640 $8,640 $8,640dishwasher 2 $5,700 $5,800 $5,800 $5,800 $5,800cleaning/dishwasher $11,760 $11,760 $11,800 $11,800 $11,800open $0 $0 $0 $0 $0total people 20 24 25 25 25total payroll $399,588 $400,788 $429,828 $431,128 $432,728 page restaurant & lounge8. Financial plan zara restaurant & lounge 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: the first year projec tions anticipates a below average sales volume, below average seat turn, and above average food/beverage cost. This position will help us ensure sufficient financial planning to ac commodate a reasonable ramp-up period, and business success, also ensuring that we do not enter this venture under-capitalized. Financial pro forma in addition to the $110,000 of owner investment and $130,000 in grant monies, zara is seeking $300,000 in long-term loans and $200,000 in investment for renovations, furniture, kitchen equipment, liquor license, food & restaurant supplies, legal fees, working capital, marketing and personnel. Investment opportunities the zara investment program alloc ates equity position of 20% for a total of $200,000 in investor capital. The investment structure is as follows: investment opportunity page restaurant & lounge total investor funding $200,000 opportunity: minimum investment amount $15,000 investment term (investor 3-5 years selec tion) total equity offering (1% per 20% max $15,000 investment) starting year 2 silver: projec ted annual irr on 10% investment of $15,000 - $49,000 gold: projec ted annual irr on 11% investment of $50,000 - $99,000 platinum: projec ted annual irr on 12% + residuals investment of $100,000 or more investor paybac k program each investor will rec eive equity shares as a part owner, with a non-managerial interest in the restaurant. Over and above the interest and principal repayment, investors contributing $100,000 or more will rec eive residuals for the life of the business as a bonus incentive. Our existing paybac k structure will begin paying dividend every quarter, starting in year 2 of business operations. 2 important assumptions the financial plan depends on important assumptions, most of which are reflec ted in the financial statements that follow.
The financials ac count for the following growth projec tions: ° year 2: 6% year 4: 4% page restaurant & lounge ° year 3: 5% year 5: 4%weekly sales variance. In atlanta, october through the late season is the most productivesales period, while the summer months tend to be the slowest restaurant period. Our experience in the industry confirms a longer ramp-up stage forrestaurants over other retail/service businesses. As a new restaurant entry to the midtown market, the ramp-up incustomer draw is expec ted to extend over 6 months. The following are baselineassumptions on average chec k totals, and average seat turns: page course - linkedin 365 for course - linkedin -based elearning course - linkedin ss plan aggregation and mashup with kapow mashup output airline ticket reservation sent successfully..
