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Bachelors Restaurant
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Executive Summary
This restaurant business plan is for Bachelors Restaurant, a new medium-sized restaurant
located in a trendy neighborhood of Bangladesh. Bachelors Restaurant emphasis will be
on organic and creative ethnic food. An emphasis on organic ingredients is based on
Bachelors Restaurant dedication to sustainable development. Additionally, the restaurant
procures local foods when possible, reducing their dependence on fossil fuels used for
transportation.
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Table of contents
Introduction1
Step One: Making the Commitment....2
Mission.2
Objectives....2
Step two: Analyzing oneself..2
Company Ownership...3
Start-up Summary....3
Start Up Requirement..4
Step Three: Choosing a product or Services..5
Services5
The Menu.6
Organic Ingredients..6
Ethnic Ingredients and Recipes....6
Interior Accoutrements....6
Product.7
Step Four: Market Research Analysis.9
Market Segmentation...9
The Lonely Rich..9
Young Happy Couples.....9
The Rich Hippies.....9
Dieting Women..10
Market Analysis.10
Step Five: Forecasting Sales Revenue: ..11
Competitive Edge...11
Sales Strategy.11
Website Marketing Strategy..12
Sales Forecast.....13
Step Six: Management Summary...14
Personnel Plan....15
Step Seven: Developing A Financial Plan..16
Break-even Analysis..16
Projected Profit and Loss...17
Pro Forma Profit and Loss.18
Projected Cash Flow..19
Projected Balance Sheet.22
Business Ratios..23
Step Eight: Developing a Legal Plan..26
Step Nine: Developing a Insurance Plan....26
Conclusion....27
Bibliography.28
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Introduction:
Health is wealth. The knowledge persons of all the years & times said this valuable
comment forever. Really its true. A healthy body can build a healthy human; a healthy
human can develop a civil society. A good civil society can build a strong nation. So it is
never ever can underestimate the necessity of human health. What is inside the sound
human body? If we postmortem the causes then we will get that, a healthy balanced diet
is the one of the main reason of maintaining the good health. Now a day the world has
become more & more professional. In most of the families who duels in the city area the
husband also wife are engaged with service. They get a very little or negligible time to
cook food in home. And the demand of first food is increasing highly. In accordance with
the similarity we have decided to set up a restaurant named Bachelors Restaurant. Its
the institution where we are providing guarantee of healthy & balanced diet, nutrition
food as well as in cheap rate.
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Mission
Bachelors Restaurant is a great place to eat, combining an intriguing atmosphere
with excellent, interesting food that is also very good for the people who eat there. We
want fair profit for the owners, and a rewarding place to work for the employees.
Objectives
1. Sales of $350K the first year, more than half a million the second.
2. Personnel costs less than $300K the first year, less than $400K the second year.
3. Profitable in year two, better than 7.5% profits on sales by year three.
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Start Up Requirement:
Start Up Funding:
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$3,000
$138,000
$141,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$50,000
$88,000
$0
$88,000
$138,000
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$0
$100,000
$1,000
$0
$101,000
$25,000
$15,000
$0
$40,000
($3,000)
$37,000
$138,000
$141,000
Amount ($)
$1,000
$1,000
$1,000
$3,000
$88,000
$50,000
$0
$138,000
$141,000
unusual menu. Chef Rafiq Badsha will also be emphasizing healthy dishes, recognizing
the trend within the restaurant industry for the demand for healthy cuisine.
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3.6 Product
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The rich hippies in Bangladesh are a massive group with tremendous influence over the
city's government and private enterprise. They wear tie-die but drive BMWs and crave
the feeling of being in a social circle that is changing the world - even if in different ways
than in their glory days. We will cater to their ecological ideology and contribute to
charities to help them part with more of their money.
Year 2
Year 3
Year 4
Year 5
CAGR
440,000
484,000
532,400
585,640
10.00%
162,000
174,960
188,957
204,074
8.00%
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Rich
Hippies
Dieting
Women
Other
Total
6%
250,000
265,000
280,900
297,754
315,619
6.00%
7%
350,000
374,500
400,715
428,765
458,779
7.00%
5%
7.87%
50,000
52,500
55,125
57,881
60,775
5.00%
1,200,000 1,294,000 1,395,700 1,505,757 1,624,887 7.87%
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The strategy of the sales effort will be to convert potential and first-time customers into
long-term customers. This will be accomplished using several techniques.
Punch cards: After 10 meals purchased, the 11th will be free. Punch cards are an
effective way of increasing sales from a specific customer. They are effective
because they provide the customer with a sense of additional value; it gives the
feeling of value with the free entree. People love getting something beyond what
they pay for and the punch card provides this.
Concentrating on the customer's experience: Customers will not come back if they are not
happy with their dining experience. All employees go through a comprehensive training
process that includes training on how to offer the customer the finest experience. The
employees are empowered to resolve issues and are encouraged to seek assistance from
the manager for a conflict that they are unable to resolve.
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Printed material: Bachelor restaurant will reference the website address on all
printed material that is passed out including menus, business cards, and
advertising media.
Year 2
Year 3
Unit Sales
Meals
Drinks
Other
Total Unit Sales
22,822
11,415
240
34,477
35,000
17,500
500
53,000
45,000
22,500
1,000
68,500
Unit Prices
Meals
Year 1
$15.00
Year 2
$15.00
Year 3
$15.00
Drinks
$2.00
$2.00
$2.00
Other
$10.00
$10.00
$10.00
Meals
$342,330
$525,000
$675,000
Drinks
$22,830
$35,000
$45,000
Other
$2,400
$5,000
$10,000
Total Sales
$367,560
$565,000
$730,000
Sales
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Year 1
Year 2
Year 3
Meals
$2.00
$2.00
$2.00
Drinks
$0.50
$0.50
$0.50
Other
$1.00
$1.00
$1.00
Meals
$45,644
$70,000
$90,000
Drinks
$5,708
$8,750
$11,250
Other
$240
$500
$1,000
$51,592
$79,250
$102,250
Most important to Bachelors Restaurant is the financial success which will be achieved
through strict financial controls. Additionally, success will be ensured by offering a highquality service and extremely clean, non-greasy food with interesting twists. Bachelors
Restaurant does plan to raise menu rates as the restaurant gets more and more crowded,
and to make sure that they are charging a premium for the feeling of being in the "in
crowd."
The market and financial analyses indicate that with a start-up expenditure of
$141,000, Studio67 can generate over $365,000 in sales by year one, $565,000 in sales
by the end of year two and produce net profits of over 7.5% on sales by the end of year
three. Profitability will be reached by year two.
Sales of $350K the first year, more than half a million the second.
1. Personnel costs less than $300K the first year, less than $400K the second year.
2. Profitable in year two, better than 7.5% profits on sales by year three.
Personnel Plan
Manager
Hostess
Chef
Cleaning
Waiters
Other
Total People
Year 1
$60,000
$42,000
$54,000
$30,000
$72,000
$24,000
8
Year 2
$65,000
$45,000
$60,000
$35,000
$100,000
$52,000
10
Year 3
$70,000
$50,000
$65,000
$40,000
$130,000
$55,000
12
Total Payroll
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Break-even Analysis
3,205
$34,171
Assumptions:
Average Per-Unit Revenue
$10.66
$1.50
$29,375
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Year 1
$367,560
$51,592
$0
$51,592
Year 2
$565,000
$79,250
$0
$79,250
Year 3
$730,000
$102,250
$0
$102,250
Gross Margin
Gross Margin %
$315,969
85.96%
$485,750
85.97%
$627,750
85.99%
$282,000
$27,000
$357,000
$35,830
$410,000
$72,122
$0
$1,200
$42,300
$0
$0
$1,260
$53,550
$0
$0
$1,323
$61,500
$0
$352,500
$447,640
$544,945
($36,532)
($36,532)
$9,673
$0
$38,110
$38,110
$8,887
$7,306
$82,806
$82,806
$7,637
$19,105
Net Profit
Net Profit/Sales
($46,204)
-12.57%
$21,917
3.88%
$56,063
7.68%
Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Utilities
Payroll Taxes
Other
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Year 2
Year 3
$367,560
$367,560
$565,000
$565,000
$730,000
$730,000
$0
$0
$0
$0
$0
$0
$0
$367,560
$0
$0
$0
$0
$0
$0
$0
$565,000
$0
$0
$0
$0
$0
$0
$0
$730,000
Expenditures
Year 1
Year 2
Year 3
$282,000
$117,968
$399,968
$357,000
$185,584
$542,584
$410,000
$257,538
$667,538
$0
$0
$0
$0
$0
$0
$0
$6,133
$0
$10,000
$0
$15,000
$0
$0
$0
$406,101
$0
$0
$0
$552,584
$0
$0
$0
$682,538
($38,541)
$49,459
$12,416
$61,875
$47,462
$109,337
Cash Received
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Year 2
Year 3
Current Assets
Cash
Other Current Assets
Total Current Assets
$49,459
$50,000
$99,459
$61,875
$50,000
$111,875
$109,337
$50,000
$159,337
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$0
$0
$0
$99,459
$0
$0
$0
$111,875
$0
$0
$0
$159,337
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$14,796
$0
$0
$14,796
$15,294
$0
$0
$15,294
$21,693
$0
$0
$21,693
Long-term Liabilities
Total Liabilities
$93,867
$108,663
$83,867
$99,161
$68,867
$90,560
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$40,000
($3,000)
($46,204)
($9,204)
$99,459
$40,000
($49,204)
$21,917
$12,713
$111,875
$40,000
($27,287)
$56,063
$68,776
$159,337
Net Worth
($9,204)
$12,713
$68,776
Assets
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Ratio Analysis
Year 1
Year 2
Year 3
Sales Growth
N.A
53.72%
29.20%
Industry
Profile
7.60%
50.27%
100.00%
0.00%
100.00%
44.69%
100.00%
0.00%
100.00%
31.38%
100.00%
0.00%
100.00%
35.60%
43.70%
56.30%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
14.88%
94.38%
109.25%
-9.25%
13.67%
74.97%
88.64%
11.36%
13.61%
43.22%
56.84%
43.16%
32.70%
28.50%
61.20%
38.80%
100.00%
85.96%
98.90%
100.00%
85.97%
82.32%
100.00%
85.99%
78.45%
100.00%
60.50%
39.80%
0.65%
-9.94%
1.77%
6.75%
6.16%
11.34%
3.20%
0.70%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
6.72
6.72
109.25%
501.98%
-46.46%
7.31
7.31
88.64%
229.87%
26.12%
7.34
7.34
56.84%
109.29%
47.18%
0.98
0.65
61.20%
1.70%
4.30%
Additional Ratios
Net Profit Margin
Year 1
-12.57%
Year 2
3.88%
Year 3
7.68%
n.a
Percent of Sales
Sales
Gross Margin
Selling,
General
&
Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
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Return on Equity
0.00%
172.40%
81.52%
n.a
Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover
8.91
27
3.70
12.17
30
5.05
12.17
26
4.58
n.a
n.a
n.a
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
0.00
0.14
7.80
0.15
1.32
0.24
n.a
n.a
Liquidity Ratios
Net Working Capital
Interest Coverage
$84,663
-3.78
$96,580
4.29
$137,643
10.84
n.a
n.a
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
0.27
15%
6.72
0.00
0.00
0.20
14%
7.31
44.44
0.00
0.22
14%
7.34
10.61
0.00
n.a
n.a
n.a
n.a
n.a
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Conclusion:
Bachelor restaurant will operate within the large restaurant industry. While the industry
has its upswings and downturns, the variance is less than the economy itself. People need
to eat, they can eat in and save money, but the convenience of dining out creates a
significant incentive. This is not to suggest that restaurants are recession proof, they are
less affected by the general state of the economy.
Bibliography:
1. Google
2. Some Information from renowned restaurant.
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