Diversity Cuisine 1

RESTAURANT BUSINESS PLAN

(DIVERSITY CUISINE)

Proposed by: Jennifer Garcia, Hieu Huynh, Kelechi Chimaroke, and Alfred Tanyi.

(MAY 05, 2017)

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TABLE OF CONTENTS

1.0 Executive Summary............

3

1.1 Business Objectives... .

3

1.2 Mission Statement...

. 4

1.3 The Vision ..

4

1.4 Guiding Principles.

...5

1.4.1 Keys to
Success5

2.0 Company Ownership

6

2.1 Company Description ...

6

2.2 Start-Up
Summary...6

3.0

Services6

3.1 Daily Operations and Production.

7
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3.2 Competitive
Comparison.7

3.3 Management
Controls..8

4.0 Market
Segments. ...8

4.1.1 Industry
Analysis.....9

4.1.2 Future Services...... .

9

5.0 Financial Plan

........10

5.1 Product Pricing

....10

5.2 Start-up Costs

............10

5.3 Source and Use of

Funds...12

6.0 Market Analysis ...

13

6.1 Market Size.

...13

6.2 Marketing Strategy and Poisoning...

13

7.0 Exist plan ....

14
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1.0 EXECUTIVE SUMMARY

Our restaurant will be a friendly, cozy, and energetic environment. Diversity Cuisine will be
priced fairly with forty seats offering a diverse selection of food and services. Students will be
able to join us at our restaurant to eat and study amongst themselves. The menu will be inspired
by various countries around the world, but directly influenced by Vietnam, El Salvador and
countries in West Africa.

We will provide the best training and hire hardworking students and immigrants seeking
sponsorship; training will emphasize great customer service, equal treatment amongst
employees, harmony and respect.

DCR will be leasing a 1,700-square foot space located at 400 Fenton street, across from
Montgomery College, in Silver Spring Maryland. The space has never been utilized as a
restaurant before, so a renovation is required.
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The dcor will feature bar stools with counter height pub tables. Lunch style tables will be
surrounded by wooden chairs with comfortable seating cushions.

Sales projections assume 1,500 customers per week resulting in weekly sales of just over
$14,500, or $754,000 annually. Total startup costs will be $174,000.00 of which, $100,000 will
be donated by owners.

1.1 BUSINESS OBJECTIVES

The primary objectives of the Diversity Cuisine restaurant are below:

To be the premier restaurant that advocates equality and promotes harmony

within all cultures through food.

To provide quality meals at reasonable prices and excellent customer service.
To attract Montgomery College students by giving them 10% college discount

on Mondays, with the presence of college Identification card.

Become a community oriented cozy place for students
Build and expand a good reputation
Create a comfortable environment where new ideas and opinions a welcomed

amongst employees
Create and expand the volume of customers by utilizing our advertisement team
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1.2 MISSION STATEMENT

Diversity Cuisines mission is to be a full-service restaurant, offering affordable, and cultural

enriched food, at affordable prices. place where a variety of people with different cultural

backgrounds. We wish to provide a comfy and diverse eating experience. We will achieve our

goals by 1) Provide customers with a voice of how we can better satisfy them, so they can

return. 2) Provide a diverse menu selection, which allows customers to experience a variety of

different meals, at an affordable price. 3) Offer a harmonious atmosphere where customers and

staff are treated with dignity and respect.

1.3 THE VISION

Our vision is to sponsor foreign exchange students who seek working and educational

opportunities. We intend to inspire other restaurants and people to create unity by offering

sponsorships to undocumented residents. Ten years from now we would like to expand our

chain to other college campuses. Providing cultural foods and a harmonious atmosphere or

after class, is our goal. We look forward to being the dine- in choice and comfort zone for

students and community members nearby.

1.4 GUIDING PRINCIPLES

1. ENGAGING WITH VALUED CUSTOMERS AND STAFF

We will listen to our customers and staff, and treat everyone with equality and respect.
Daily customer satisfaction surveys will be provided to clients via receipts; surveys will
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also be provided to our staff to make sure they are satisfied and feel like a valued
member of our team.

2. GRATITUDE/KINDNESS

Diversity Cuisine will show our customers and staff kindness as they will be the
beating heart to our success.

3. OUR SERVICE

We will provide a warm and friendly environment where students can get together to
eat and study. Also, Diversity Cuisine thrives to bring a community of people together
through our variety of foods.

1.4.1 KEYS TO SUCCESS

Location: Being convenient is essential to us; we will strive to meet our

customers demand for food from our restaurant, by being easily accessible.

Variety: We offer a little taste of the world with reasonably priced menu

options.

Quality customer service: provide awesome customer service that will keep

our customers coming back.

2.0 COMPANY OWNERSHIP

Diversity Cuisine will be owned and operated by Ramatu Conteh, Jennifer

Garcia, Kelechi Chimaroke, Hieu Huynh and Alfred Tanyi. DC will be

registered in the state of Maryland and will be a Limited Liability Company

(LLC).

2.1 COMPANY DESCRIPTION

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The Diversity Cuisine Restaurant will be located at 400 Fenton St, Silver Spring

MD 20910 The restaurant will serve food from many different cultures,

however dishes will be heavily influenced by West African, Vietnam and El

Salvador.

2.2 START-UP SUMMARY

The cost to open the restaurant is $364,500. The majority of the expenses are in furniture
fixtures and equipment totally $35,130. The location requires some build-out and renovation
totaling $50,000 and will require approximately 30 days to complete. Ramatu, Jennifer,
Kelechi, Heiu and Alfred will sub-contract the work themselves.

3.0 SERVICES

3.1 DAILY OPERATIONS AND PRODUCTION

DCR will be open six days a week for breakfast, lunch and dinner requiring multiple
shifts. Kelechi will write the schedules. Scheduling will be written in a manner that will allow
the ability to increase or decrease hourly labor according to the sales volume.

Proper labeling and rotation techniques, accompanied by ample storage facilities will ensure
that high quality prepared product will be sufficiently available to meet the demands during
peak business hours. Replenishment and ongoing preparation will continue during off peak
business hours.

Kelechi C. will be responsible for ordering, receiving and maintaining sufficient inventory to
meet production demands. Ordering schedules will be staggered for perishable products in
order to preserve freshness. Standard grocery and supply orders will be ordered less often,
according to a predetermined schedule and storage capacity.

Alfred T. will rely on operational checklists to verify that each work shift has been properly
prepared for, to insure that the operational standards are followed before, during and after work
shifts.

Upon arrival, guests will be greeted immediately by either the manager or a cashier and orders
will be taking at the register. Once the customers order has been submitted by the cashier, it
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will automatically be sent to the kitchen via computer, where the cooks can start to prepare the
orders. Customers will be given a restaurant vibrator which will let them know when their
order is ready. The kitchen preparation line has been designed to be operated by a minimum
staff of 2 cooks and a maximum of 2 preps. Shift changes for all staff will involve cleanup,
restocking and preparation. A daily cash count will be settled at the end of each shift. The
closing shift will involve designated closing duties that will leave the restaurant clean and fully
prepared for the next day.

3.1.2 DAILY OPERATIONS

The restaurant will be open 6 days a week with hours as follows:

Monday 6:00am- 8:00pm

Tuesday 6:00am- 8:00pm

Wednesday 6:00am- 8:00pm

Thursday 6:00am- 8:00pm

Friday 6:00am- 6:00pm

Saturday 6:00am-6:00pm

Sunday CLOSED

3.2 COMPETITION COMPARISON

The US restaurant industry is a huge arena to compete with, therefore having a target audience,
such as student and community members will help maintain business. Our major competitor
will be the Montgomery College Campus cafeteria.

Local competitors within a five-mile radius are as follows.

Starbucks
Peets Coffee
Cava Mezza
Ethiopian Coffee Caf
A.M Caf
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3.3 MANAGEMENT CONTROLS

Ramatu Conteh will practice sound management procedures in order to control costs, insure
quality of product and provide friendly customer service. The following systems will be used
by management:

ORDER GUIDE: The restaurant will use an item specific order guide to track order history and
maintain designated levels of product in inventory.

WEEKLY INVENTORY: Management will conduct a weekly inventory to determine valuation

for use in the preparation of weekly profit and loss reports.

DAILY INVENTORY TRACKING: Daily inventory will be taken on specific items. Movement
will be compared to sales data to ensure designated products have been properly accounted for.

4.0 MARKET SEGMENTS

The Diversity Cuisine Restaurant will appeal to a broad base of consumers in both the
residential and college community. The location selected for DC was chosen primarily to
appeal to the growing number of students in college.

4.1 TARGET MARKET SEGMENT STRATEGY

Diversity Cuisine selected an area close to Montgomery College campus. From our
observations, many students complain about the overpriced and poor quality of food.
Therefore, DC decided to open a caf adjacent to the campus to provide better quality and
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affordable menu options. Also, we intend to hire students of different cultural backgrounds to
provide a diverse, friendly atmosphere.

4.1.1 - TARGET MARKET ANALYSIS

Diversity Cuisine selected an area close to the Montgomery College campus. From our
observations, many students complain about the overpriced and poor quality of food
from the current cafeteria/caf at MC. Therefore, Diversity Cuisine decided to open a
caf adjacent to the campus to provide better quality and affordable menu options for
our fellow college students. Also, we intent to hire students of different cultural
backgrounds to provide a diverse, friendly atmosphere.

4.1.2 FUTURE SERVICES

Diversity Cuisine has future plans to provide delivery services. The main focus will be
Montgomery College campus. All food will be delivered to any office, classroom or
nearby location to MC. We believe that delivery services will make it more convenient
to our fellow college students. Moreover, it will help us expand our services as well as
our financial entries to our company. This could potentially become a large portion of
gross sales.

5.0 FINANCIAL PLAN

The following sections comprise our financial plan:

Required Cost of Start-Up
Balance Sheet
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Financial Ratios
Hourly Labor Costs
Weekly Sales Projections

5.1 PRODUCT PRICING

Meal Price range from $2.50- $11.00

Average lunch price: 7.79
Average dinner price: 10.74

Year two assumes delivery service in place. Delivery service will be available for
orders with the minimum cost of $12.00. Also, assumes additional increase in staff (2
people to be hired at 6 hours at $7.00)

5.2 START-UP COST

Total startup costs will be $364,500, $174,000 of which will be contributed by the owners
and the remainder of 190,500 will be sourced through the Angel investors.

Start-Up Expenses Amount

Graphic Logo and Name Creation $1,000
Permits + Lease Deposit $1,200
Contingency $10,000
Outdoor Sign $3,000
Building Improvements $68,770
Working Capital $192,500
Pre-Opening Expenses $14,800
Total Start-Up Expenses $291,270

Start-Up Assets
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Artwork $800
Walk In Cooler $8,000
Commercial Dishwasher with Sink in Table $3,000
Reach in Stainless Steel Freezers (2) $6,000
Stainless Steel Cold Station $3,000
20 quart food processor/blender $900
Ice Maker with Storage Bin $1,500
Stainless Steel Hood with Exhaust $4,000

Sandwich Prep Reach Ins (2) $5,600

Kitchen Small wares $1,500

Chrome Shelving Systems (6) $500

Reach In Coolers (4) $6,200
Stainless Steel Work Tables (3) $1,200
Hutch for Stainless Steel Table (2) $800
Dishes, cutleries and drinking cups $4,000
Stainless Steel 3 bowl sink $1,500
Liquid Fire Protection System $4,000
Soap and cleaning agents $1,500
High bar stool chairs $2,230
Height Pub tables $3,000
20 track lighting $1,000
Napkins $500.00
Art, Dcor $2,000
Fireproof Safe $500

Cash register + POS System $4,000

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OFC PC $6,000
Total Start-Up Assets $73,230

Total Required Start-Up Costs $364,500

5.3 SOURCE AND USE OF FUNDS

Total start-up costs are estimated to be $364,500. The majority of the costs are associated
with the restaurant equipment, inventory and furniture and furnishings for the dining room.
Total costs for these items are reported to be $35,130. Additional startup expenses are in the
form of working capital and contingency $192,500. The founders will contribute $174, 000
and are requesting an additional $190,500 in the form of loan from the Angel investors. The
loan is expected to be amortized within a 5-year term.

Source and Use of Funds

Sources of Funds
Owners' and other investments $174,000
Angel Investors $190,500
Other loans $ -
Total Source of Funds $364,500

Use of Funds

Leasehold improvements $ 68,770

Capital equipment $73,230
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Location/administration expenses $ 14,800

Opening inventory $ 5,500
Advertising/promotional expenses $ 6,500
Other expenses $ 3,200

Working capital $192,500

Total Use of Funds$364,500

6.0 MARKET ANALYSIS

The restaurant industry is a large and diverse business: Restaurant- industry sales are
forecast to reach $799 billion in 2017. This represents the eighth consecutive year of
real growth in restaurant sales, the rate of growth remains moderate. The restaurant
industry will remain the nation's second-largest private sector employer with a
workforce of 14.7 million. There are over one million restaurant locations in the
United States (National Restaurant Association).

6.1 MARKET SIZE

The US restaurant industry includes over 1 million restaurants with combined annual
revenue of about $782 billion.

6.2 MARKETING STRATEGY AND POSITIONING

We realize the success of DCR will have to be achieved by doing more that serving
great food, and providing friendly service. We will utilize a marketing plan to build
customer traffic. At Diversity Cuisine, we will continually strive to win more
customers by being proactive rather than reactive in our marketing efforts and stay
current with popular industry trends. We will achieve these goals by using the
following:
Clientele: We will begin our campaign by marketing to our fellow college students.
We will email fliers announcing our grand opening. We will continually update our
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database by providing a fishbowl for business cards in the lobby and offer a weekly
or monthly drawing.
Loyalty Program/Birthday Program. DCR will offer a birthday/loyalty club proving
a complimentary hamburger or chicken sandwich or wrap to the for the birthday
person. A recent report from the National Restaurant Association explained how this
simple technique can increase revenues as much as 15% due to repeat business.
Our restaurant team will also be active in the local community and we plan to take
an active role by participating, sponsoring, and donating to local churches, sports
clubs or teams in the market area.
We will also strive to develop rapport with local business as a quick, comfortable
lunch choice. In the future, we plan on establishing a marketing campaign to call on
the local business in the market area, deliver samples, and encourage them to
consider our restaurant as the restaurant of choice for their next business luncheon

7.0 EXIT PLAN

Diversity Cuisine will accumulate a large clientele of students and community

members.

Our goal is to acquire $2 million dollars in market value. In the next 3-5 years, DC will
generate enough value to sell to other small coffee shops.

Acquisition:

The types of companies that would want to acquire DC will be small diners and coffee
shops within a 5-mile radius of college campuses.

Establishment will be excited to buy Diversity Cuisine because of the close location to
Montgomery College.

Potential Buyers include:

Peets Coffee Shop

Starbucks in downtown Silver Spring
Mc Caf