SumDimSum

Nick Lerman, Miles A. Solomon, Alessandro Botteon, Silvia Francescut,

Bhavik Merchant, Annie Yang

Origins Of The Idea

The main idea underlying
SumDimSums concept derives from
the identification of a void in the LA
Restaurants target market, as
currently no fusion dimsum franchise
companies positioned in the highquality Fast and Casual Market exist.
This acknowledgment led to the
research of a niche in which
SumDimSum could grow and provide
a new model of high-tech and social
food experience.

 Company Description: a dimsum fusion restaurant that

merges seven international cuisines with an high-tech and
socially driven approach
Statement of mission: we want to provide you with
authentic dim sum you never knew you always wanted

Stage of development: launch on July, 1 2014; Break-even

on August 2015, during Q8; Profitability after Q8
Products and Services: Primary Menu, Seasonal Menu,
Make-Your-Own-Dim-Sum, Celebrity Chef Spot,
Tea/Beer/Wine
Early Target Market: 16-25 year olds in the Wilshire Area,
Gen Y, high-school and college students
Marketing and Sales Strategy: online promotion, direct
viral promotion, guerrilla marketing, personalization,
sample offer, social network events, aggressive price policy
and selective discounts

Executive
Summary

 Competitors and Market Distribution: the main

competitors are Bao Dimsum House, ROC and Din Tai
Fung; competitive market niche in the high-quality
segment
Competitive Advantages and Distinctions: high-tech
and social approach (pyramidal tray system for groups
and Ipad order system)
Management: initially the company will need one
general manager, a Head Cook, one Customer Relations
Manager; during its expansion, a CFO will be needed as
well

Executive
Summary,
part 2

Operations: the location is on Wilshire Boulevard; the

staff includes a general manager, five cooks and four
waiters; the stock is divided between perishable and
non-perishable food; the main suppliers are Wholesale
Food Distributors, A & R Wholesale Distributors, ASR
Food Distributors, Inc.

 Financials: required initial round of external

financing is $850,000; Breakeven point will be
reached in Q8; Sales will be 1,1 million in year 1
and 2,4 million in year 4; Expenses will stay
almost at the same level, shifting from 714 k to
809k from year 1 to 5;
Long-term goals: opening of a second restaurant
in 2017 and reaching national distribution
through the franchising model in 2019
Fund Sought and Exit Strategy: SumDimSum
requires an initial round of external VC financing
of $850,000, to be used for rent, purchase of
equipment, salaries wages and marketing
campaign; investors will get their money out after
the first profits are realized, two years after the
launch

Executive
Summary,
part 3

Market Opportunity
Fast casual is the fastest growing
segment of restaurant industry

General
Market
Overview

Tripled its market share in the last 10

years
Only segment to grow in the last 5 years
Sales increase:
Restaurant industry
Fast-casual

3% annually
10% annually
Source: CIRE Magazine

Market Opportunity, part 2

Popularity
of Ethnic
Food

15% sales growth for ethnic food (2008 2013)

81% of Americans ate ethnic in the past
month
10% increase from 2010

 CURRENT PROBLEM
The Fast Casual Market in the LA area does not provide
customers with a high-quality and relatively cheap fusion
dimsum offer
The current offer, instead, focuses on single high-quality
dimsum restaurats that do not provide, though, a fusion
experience, like Bao Dimsum House, and on low-quality
franchise dimsum restaurants such as Din Tai Fung
The growing fast casual market (10% annually) has
therefore holes and gaps in which to build a new
competitive niche

CURRENT SOLUTION
SumDimSum offers an international fusion of seven
different cuisines under the common denominator of a
high-quality dimsum experience, while maintaining a lowprice profile through the franchise model of expansion

Market
Opportunity,
part 3

Product Definition: The Big Picture

MISSION: We believe in making exotic food convenient
and excellent. Only offering fresh, tasty ingredients, we
promise to provide you with authentic dim sum you
never knew you always wanted
OVERALL PRODUCT DEFINITION: the product is a fusion
dimsum described by three different drivers:
High Quality Food from seven different cuisines
$ 4-7 range of dimsum prices
Hi-tech and social approach

Product Definition: The Details

Our offer includes seven cuisines: Chinese,
Thai, Italian, French, Japanese, Mexican,
Brazilian
The approach is that of a fusion dimsum:
specific recipes of the seven cuisines will be
wrapped and presented in three different
types of dimsum: salty, sweet and special
The special dimsums are a unique creation
realized by the cook; they change every
month to maintain alive the customers
interest
Secondly, SumDimSum will offer a wide
selection of teas and wines from an
international selection that represents the
fusion counterparty to the food offer

 WHOS WRITING THE CHECK? Our customers

will be our sumdimsums consumers. Our
initial target, in particular, will focus on Gen Y: a
digitalized niche of people aging from 16 to 30

BENEFITS PROVIDED
Fusion experience and satisfaction of a wide
range of tastes
Cheapness
Interactivity through hi-tech service (Ipad
order system) and creative, online marketing
campaign
Social experience: SumDimSum is
specifically equipped with rotating tray
platforms to welcome groups of friends that
want to share a fusion cuisine while
preserving the individual tastes

Product Definition:
customers and
benefits

Product Definition: Competitive Advantage

Three main competitive advantages:
Social and Hi-Tech Layout: SumDimSum revolutionizes the
traditional dimsum world with an Ipad Order System, a hi-tech
restaurant layout, a creative presence in the online world of Gen Y
through social networks, mobile applications and Grabhub;
High-Quality International Dimsum at the price of usual Fast Casual
Restaurants
Market Niche (franchise, high-quality fusion dimsum, cheap) that
differs SumDimSum from the positioning of its competitors
What are the closest alternatives?
Bao DimSum House
ROC
Din Tai Fung

Product Definition: Stage of Development

September 2014: Grand opening

Mid-September 2014: Website live

2014:
online
marketing

November 2014: Mobile app launch

January 2015: Celebrity-chef promotion
launch
July 2016: Break-even point
January 2017: Profits stabilize, expansion
begins

2019:
national
expansion

FRANCHISING
MODEL

2016:
breakeven

February 2017: Founders fill executive roles

June 2017: Second location opens
June 2018: Expansion into Northern California
January 2019: National Expansion

2018:
regional
expansion

2017:
initial
profit

Industry and Market Analysis:

Overview
Fast-casual and ethnic
food are two of the
fastest growing
industry segments in
LA
Fast casual is the
fastest growing
segment of restaurant
industry
88 million fast casual
sales LA

Industry and Market Analysis:

Top-Down Analysis
Restaurant industry
in USA

$683.4 billion sales for 2014

$24.2 billion sales

Fast casual dining

CA Los Angeles
Wilshire
Fusion and
Dimsum
cuisine
16-30year-old
customers

26,000 restaurants and

fast foods in the LA area
6% of restaurants in the
LA area
$88 million
Source: US Census Bureau Data

Industry and Market Analysis:

Bottoms-Up Analysis
SALES AND
MARKETING
ACTIVITIES
Sales and Marketing
Activities, through the
filter of online and
social media, will
eventually CREATE
new customers.
Expected clients
increase in the first
year of activity:
+125% payoff in
customer
acquisition

Three systems will gather data on our customers

preferences, thus addressing the realization of a bottomup market strategy that will attract new customers:
The Ipad Order System will register the most favourite
dimsum dishes and the most consumed wines and teas, as
well as the proportion couples/groups of people in the
restaurant
The employees will be responsible to flexibly adapt to the
results shown by system 1
Through Ios/Android apps and social networks presence,
it will be possible to create contests and interactive food
competitions to arise customers attention and interest

CUSTOMER ACQUISITION PLAN

Industry and Market Analysis:

Trends and Segments Projections
Fast casual tripled its market share in the last 10 years
Only segment to grow in the last 5 years
Sales increase: Restaurant industry 3% annually and Fast casual 10% annually

Segments Growth and

CAGR from 2014 to
2016

Industry and Market Analysis:

Target Market
DEMOGRAPHIC , AGE and INCOME: Gen Y, 16-30 year-old
customers represent our entry market: not the most
profitable, but the most suitable to conquer with relatively
cheap guerrilla and viral marketing techniques and an hi-tech
and socially driven approach; low income (mainly students)
MOTIVATING FACTORS: interest in fusion dimsum
LOCATION: LACMA, Wilshire Area, Los Angeles
COMPOSITION: Group from 5 to 15 people
MARKETS SHARE: 9-10% fast and casual market share
(Approximately $9 million)

Industry and Market Analysis:

Demographics and Geographics
CUSTOMERS PROFILE
16-30 years old
Income range:
from $0 (students) to
$60,000 (early jobs)
Students and early
career stage employees
High school graduated and
higher

WILSHIRE BOULEVARD
Cultural and lively district, the
closeness to the LACMA
contributes to reach the
target market of high
educated and young
customers, open-minded and
willing to try new things, after
the LACMA experience

Industry and Market Analysis:

Top-Down and Bottom-Up combined
TOP DOWN

BOTTOM-UP

$88 million segment

Ipad Order, Employees

flexibility and Interactive food
competition to draw more
customers

10% annual growth

Market Niche

Gen Y: 16-30, low income,

mainly students

Location: LACMA
The online, social and hi-tech sales and marketing
techniques of the bottom-up approach will give
SumDimSum an estimated annual customers
growth of 125%, thus contributing to a bigger
market share of the $88 million segment shown in
the top-down analysis

Competition:
The Competitive Advantages
SumDimSum advantages:
Affordable price
Non remote location
Fast service
Quality
Competitors' main
advantage: most of our
competitors are known
chains, such as Five Guys and
Chipotle or known specialized
dim sum restaurants (located
in specific city's areas though,
like Little Tokyo, K-town and
the asian districts)

Competition:
Main Direct Competitors
Competitors

Quality

Price

Target

Area

SumDimSum

High

$8-15

Gen Y

Wilshire

ROC

Medium

$11-30

18-35 year
olds

Santa Monica

Bao DimSum
House

Medium-High

$20-35

25-45 year
olds

Beverly
Boulevard

Din Tai Fung

Low-Medium

$11-30

18-35 year
olds;
vegetarians

Arcadia

Source: Yelp.com

Competition:
Indirect Competitors
Operating in the Fast Casual market, SumDimSum is exposed to
the risk of a broader and indirect competition from well-known
Fast Food chains, whose main examples are Chipotle, Five Guys
and Subway: radial competition
Asian
Restaurants,
Korean BBQ and
Sushi
Chipotle, Five
Guys, Subway
ROC, Bao
Dimsum House,
Din Tai Fung

RESTAURANT
INDUSTRY
COMPETITION

INDIRECT
COMPETITORS

DIRECT
COMPETITORS

SumDim
Sum

Competition:
The Arena
DimSum
restaurants in LA
are concentrated
in Downtown and
Koreatown
SumDimSum is
located on
Wilshire
Boulevard and
manages to attract

Competition:
SWOT Analysis

SumDimSum opens a new niche in the Fast Casual Market: the encounter of the
franchising, fast-food-like model with the offer of high quality dimsum
STRENGHTS

WEAKNESSES

1) First mover advantage

2) Knowledge of all vital
components of this opportunity
3) We are the target
markets, so we
understand our
own kind

1) Restaurant industry is a crowded space

2) Margin for food is notoriously low
3) Requires change in consumer behavior
4) Rent is much more expensive around LA
5) New similar concepts
from the East Coast aren't
far off from an expansion
into LA

SWOT ANALYSIS
OPPORTUNITIES
1) Fast-casual is the
fastest growing segment
of industry.
2) Upscale fast-casual is vastly ignored by
the big chains.
3) People's interest in ethnic food is rising

THREATS
1) Popular dim sum
chains are slowly moving into central LA
2) Fusion asian foods are a rising
trend in restaurant industry.
3) Distribution chains may be hard
to replicate when expanding.

Sales and Marketing Plan

MARKETING ACTIVITIES

TARGET AND PARTNERSHIPS

FOUR MAIN STRATEGIES, listed in chronological EARLY TARGET: Generation Y (16order:

24), high-school and college students
Online promotion through social networks,
Yelp, GrabHub and Foursquare to appeal to a
young generation Y target market to create
buzz and interest
Direct viral promotion through special
offers and discounts presented to highschools and colleges close to the location of
the restaurant to arise interest
Guerrilla marketing: gadgets, gifts, events, to
generate buzz on the social networks
Personalization of the customer experience
by offering a Make-Your-Own-Dim-Sum
menu and a Celebrity Chef Spot to maintain
interest

close to the Wilshire Area

STRATEGIC PARTNERSHIPS:
Foursquare, Yelp, AroundMe and
GrubHub

Sales and Marketing Plan:

Viral and Guerrilla Marketing Techniques

1) Sample, gadgets, gifts offer outside schools
and universities in Wilshire to arouse the
interest of the earliest target customers and
let us understand the liking level of our
products, in order to make changes to satisfy
customers expectations
2) Social network events: events for groups of 7
to 10 people on invitation to try dimsum at a
discounted price
3) Aggressive Price Policy at lunch (4$-7$) for
students, to develop customers fidelity

ACCEPTANCE
TEST and
GUERRILLA
MARKETING
DIFFUSION
TRIAL
PENETRATION
STRATEGY

Sales and Marketing Plan:

Evaluation of Marketing Activities

Acceptance Test: Record how many samples sold for each dish.
Compare the results to see whether the amount sold increases over
time

Diffusion Trial: Gather feedbacks from groups who received the

invitation and discount
Penetration Strategy: Compare the result of sales without offering
the lunch special with sales after offering lunch special
Ipad Order System: Track orders change in quantity and choice
after specific marketing initiatives

Sales and Marketing Plan:

Sales Activities

Primary Menu

The primary menu will feature traditional dim sum as well as all popular international
fusion items
Seasonal Menu
The seasonal menu will feature fusion dim sum with seasonal ingredients. Ingredients
must be fresh and not frozen, so seasonal items are a necessity
Make-Your-Own-Dim-Sum
Customers will be able to submit their own dim sum recipes which the top 5 will be
chosen monthly for a special menu
Celebrity Chef Spot
Once a month a celebrity chef will come in and have a one-day event where they will
create and sell their own unique dim sum menu
Tea/Beer/Wine
The beverage menu will feature an international variety of green and black tea, beers, and
different types of rice wines

Sales and Marketing Plan:

Sales Models, Channels and Methodology

1. Take-out business - easy to place orders online, fast, and convenient.
Lower cost
2. Dynamic pricing - lunch/dinner/late night host different customers,
so the menus and pricing should be equally as dynamic
3. Promotions & discounts - reward frequent customers and encourage
off hours sales

Sales and Marketing Plan:

Metrics To Evaluate Sales Activities

Gross Margins: Sales-COGS/Sales-It reflects the costs incurred to
produce the commodity and is an indicator of how effectively materials
are utilized to produce the product. The food industry does not have the
highest operating margins but mass sale leads to higher profits.

Operating Margins Ratio: Operating Income/Sales-Operating Income is

calculated after deducting COGS and Operating Expenses. This is
measure of profitability and efficiency of operations. This an acid test to
whether the business is viable and tend to be low in the food industry.

Asset Turnover Ratio: Net income/ Total Assets- This reflects how
efficiently and fully assets are utilized and how quickly is liquidity and
return on assets obtained.

Sales and Marketing Plan:

Efficiency of Margins
Day sales of inventory (DIO) : (Inventory/COGS)*365-It gives an idea of how long it
takes a company to turn its inventory into sales. This must be very low in a restaurant
because food is perishable and it reflects whether projections are on track or not

Day Sales Outstanding (DSO) : (A/R/Total Credit Sales)*Number of Days-Reflection

of average number of days it takes a company to turn receivables into cash. This too
should be high as it is a restaurant business
Days Payable Outstanding (DPO) : This should be lower than average as it reflects
the amount of time it takes to pay off the suppliers including those who provide the
ingredients to be cooked
Cash Conversion Cycle : =DIO+DSO-DPO-Best reflection of operating efficiency

Sales and Marketing Plan:

Estimated Budget
MARKETING
ACTIVITIES
Relatively cheap

SALES
ACTIVITIES

Major cost
$8,500 ANNUAL
Growing BUDGET: from
BUDGET for year one 358k on year one to
612k on year five
$9,000 ANNUAL
BUDGET for years 2
to 4

Operations

 FACILITIES: Location on Wilshire Boulevard

CAPACITY: 80-100 seats
STAFFING: 1 General Manager, 5 Cooks, 3 waiters
FOOD PREPARATION: three different stations,
each equipped with two ovens, cooker ring and a
grill

FOOD PRESERVATION: the stock is divided

between perishable and non-perishable food
SUPPLY CHAIN: many-to-one system

MAIN DISTRIBUTORS: Wholesale Food

Distributors, A & R Wholesale Distributors, ASR
Food Distributors, Inc.

Operations:
Inside The
Walls

Operations:
Facilities and Staffing Detailed
Location on Wilshire Boulevard, close to LACMA Museum, to appeal to
Generation Y target
Remodeling : Create a hip modern look, buy tables and chairs, set up iPads,
construct assembly-line style kitchen, construct a tea bar and beer refrigeration
system, create an eye-catching sign SumDimSum - GetSum
Restaurant equipped with 80-100 seats main room, kitchen, stock
1 General Manager : Run day-to-day operations & establish food distribution
system for ingredients/beverages
5 Cooks : Run all kitchen operations including dim sum, tea, and beer
3 Waiters : Run the dining room and maintain customer satisfaction

Operations:

Production Plan
Chef : traditional dim sum cooking system with steam woks
Food preparation : 5 cooks work on three different stations, each equipped
with two ovens, cooker ring and grill: one for meat and fish dimsum, one for
sweet dimsum and desserts and the last one for side dishes and appetizers
Food preservation : a stock of raw materials with long shelf-life is paralled by a
system of three fridges and two freezers adopted to conserve perishable food

Operations:

Supply and Distribution

Outside Logistics
Supplying System: many-to-one

Inventory Management
Stock in the back of the restaurant
divided in two parts:

Several supplying contracts for seasonal

products (seasonal fruits for desserts and
special dishes and seasonal vegetables to perishable food (eggs, milk,
vegetables): area equipped with
guarantee freshness and high quality),
three industrial fridges
exotic teas and beverages and for fusion
products
nonperishable food (rice, pasta):
twenty shelving units
Main suppliers: Wholesale Food
Distributors, A & R Wholesale Distributors,
ASR Food Distributors, Inc.
Our main suppliers provide high-quality
standards for the seven main cuisines we
offer: Mexican, Brazilian, Italian, Thai,
Japanese, Chinese and French

Operations:

Capacity Utilization and Order Fulfillment

Capacity Utilization
Based on the marketing department's achievements and on our financial forecasts,
during the first six months-one year time, the restaurant will not be running at full
capacity utilization, but in a range of 65-85%
When the percentage (especially for what concerns the main bottleneck: the
seats) will increase, the expansion through the franchising model will be
considered

Order Fulfillment
iPad ordering system
Fountain tray distribution

Operations:

Quality Control, Safety, Health and Environmental

Concerns
"A" quality food, starting from the selection of our distributors:
Wholesale Food Distributors, A & R Wholesale Distributors, ASR
Food Distributors, Inc.
Safety and Health Standards: ISO 22000 (2005), ISO 9000,
HACCP

Environmental concerns: recycled paper, hi-tech toilets (vs water

and paper spoilt), recyclable dimsum containers)

Financial Projections:
Overview

SumDimSum will reach the breakeven point and will be profitable in Q8

The amount of external VC capital required is $850,000
The external capital will last two years and help the payment of rent,
workers wages, CAPEX and marketing campaigns
The estimated sales range from $1,16 million in year 1 to $2,44 million
in year 5
The estimated total operating expenses range from $714k in year 1 to
$809k in year 5

Financial Projections:
5-Year Projection Of Sales and Expenses

Net Cash Flow and

Hockey Stick

Financial Projections:
Income Statement Year 1
- CAP EX~$500K,including buildouts and lease $200/sq. feet

Financial Projections
Income Statement Year 2

Financial Projections:
Income Statement Years 3 To 5

Financial Projections:
Amount Of Capital Needed
AMOUNT: the amount of capital needed in the initial round is

$ 850,000

TIME PERIOD: the initial capital will last for the initial two years and will help
SumDimSum to reach profitability in Q8
MILESTONES: The milestones reachable with the initial round are:
July, 1 2014: Grand opening (the capital will sustain rent, purchase of equipment, and
workers wages and CAPEX)
Mid-September November 2014: Website live and Mobile app launch to build
customers fidelity
July 2016: Break-even point

We expect to raise a second round of capital for June 2017, when the second
location will open. The second fund will furthermore help the expansion in
Northern California, planned, for June 2018, and eventually the national
expansion of January 2019

Financial Projections:
Investment Opportunity & Equity Options
Option 1

$850,000 lump sum

Single Location Investment/Equity

-40% of net profit, plus 10% ROI until 100% of

capital is returned
-20% of net for perpetuity on original property

Option 2

$850,000 lump sum & two follow-ups

of$250,000

Roll-out Investment/Equity

-50% of net profit, plus 10% ROI until 100% of

capital is returned
-15% of net for perpetuity on original property
and 8% of net for all subsequent properties

Management

Founding Team Members Resumes

We decided to design three ideal founding members for the SumDimSum
franchise and to focus on their ideal resumes, instead of providing the actual
resumes of the real members of the group
Jacob Young
Vice President of Operations at Chipotle
Experience scaling up restaurants
Entrepreneur

Mary DuBois
Los Angeles Marketing director for BudWeiser
3 years at boutique marketing agency in LA
Avid foodie

Staun Barley
Celebrated chef and runner up of Top Chef
15 years in the industry
Executive Chef at The Ivy for 5 years

Management

Early Roles vs Expansion Roles

Early Roles
General Manager
Day-to-day operations
Accounting
Control purchases and inventory

Head Cook
Create base and seasonal menu items
Maintain food quality
Kitchen staffing and management
Customer Relations Manager
Marketing and Promotion

Wait staff management

Hostess
Business development

Expansion Roles

CEO Jacob Young

Long-term sales & expansion plan

Accounting & financial forecasting
Maintain quality control standards
Set staff training & hiring standards

COO Mary DuBois

New product development

Set kitchen standards
Organize stock distribution system
Catering system development

CMO Staun Barley

Big-scale marketing projects

Event planning
Cross-promotions/collaborations
Customer trends research

Management
Companys Flowchart, Year 1
The Management Style is hierarchical and initially led by the General Manager

General
Manager
Customer
Relationship
Manager

Head Cook

Four cooks

Four Waiters

Management
Companys Flowchart, Year 2
CEO

COO

CMO

General
Manager
Customer
Relationship
Manager

Head Cook

Four Cooks

Four Waiters

Management
Companys Flowchart: Expansion
CEO

COO

CMO

CFO

General
Manager
Customer
Relationship
Manager
Assistant
Marketing
Director

VP Operations

Six Waiters

Head Cook

Six Cooks

Management

Board of Advisors and Future Management

Board of Advisors

Future Management

T.J. Wang: President of LA

Restaurant Owner's Committee;
owner of The Dragon Chinese
restaurant for past 30 years

SumDimSum will need, additionally,

a CFO to maintain cost/quality
balance, prepare financial forecasts,
hire and manage accountants, and
develop financial strategies in the
franchising expansion

Brian Chong: 40 years restaurant

marketing experience; owner of 5
restaurants/cafes in Los Angeles; 15
years promotional events experience

Management:
Needs Down the Road
Networking: VP of Marketing will be responsible for
creating an extensive network of celebrity
chefs and food critics for promotional needs.
Distribution: COO will be responsible for creating
an extensive distribution system in the
city of each potential location.
Customer Retention: The VP of Marketing and COO must work
together to create new product options and
marketing ideas to boost customer loyalty
and maintain strong customer retention.

55

Risk Evaluation
East-Coast Distribution Risk- Fresh ingredients could be difficult to
source when expanding to the East Coast.- Expanding to these areas will greatly
increase revenue, but quality might be
sacrificed across those locations.

Quality/Cost Risk- Cutting ingredient costs will greatly

boost revenues for the company. - The VP of Marketing and CFO must
work together to find a balance between
cost and quality.

56

Exit Plan:
Two Different Alternatives
Acquisition
SumDimSum will position itself to be acquired
by a major fast food corporation such as
McDonalds or Subway. The company will try to
keep existing management as to not sacrifice
quality or sacrifice company culture.
Franchise
If SumDimSum grows faster than expected, the
current management may not be able to support
the demand for additional locations. Franchisees
will thus be a viable option to support the quickly
expanding business. Additionally, franchising the
location will put less stress on top management
and will allow them to focus on more pressing
issues.

57

Get Sum!

Appendix
Data Sources
US Census Bureau Data: www.census.gov
LEXIS NEXIS: www.lexisnexis.com
YELP: www.yelp.com

Franchise Help: www.franchisehelp.com

National Restaurant Association: www.restaurant.org
Yahoo Finance: finance.yahoo.com
FastCasual.com: www.fastcasual.com
MINTEL: http://store.mintel.com/fast-casual-restaurants-us-october-2013
LA TIMES: http://articles.latimes.com/2011/dec/22/business/la-fi-fast-casual20111222

CIRE Magazine: http://www.ccim.com/ciremagazine/articles/323313/2013/11/fast-growing-fast-casual

Appendix:
Other Financial Projections
Year One Numbers

Facilities

60

Tech and Marketing

Salaries and Benefits

G&A and Cap Ex

61

62

Appendix:
Specific Financial Assumptions

63

Appendix:

Financial Numbers and Projections

64

Appendix:
Detailed Risk Assumptions
How do we allow an adequate startup period and capital to launch the concept and grow our customer base in a
competitive sector?
Our financial plan is budgeted to support the Worst-Case business scenario.
How do we confirm that our Funding Requirement is sufficient?
Our team has an extensive background in restaurant startups and finance. They conducted a thorough analysis.
In addition, all three members are putting in their own money in a emergency jar in case of any additional financing
requirements.
We 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 variance.
How do we know we have selected the right location for this concept?
As members of the target market, we have in-depth, intimate knowledge of our concept and its location.
We consulted a restaurant consulting firm to do due-diligence whose results confirmed our hypothesis.
How will you react if the competition is more competitive than projected or business?
Given the exceptionally low cost of our goods, we are prepared to adjust our prices so they are competitive.

We also have a big first mover advantage in this segment of the industry which we expect to mitigate that risk