C

Presented by:
Abdul Basit
Shafqat

Introduction

This is a business plan for a restaurant with the best quality food
and open air screening of movies on a big cinema screen.

It is the ultimate outdoor experience: great films, great sound and

great food.

Location of my resturant would be in the suburbs of Lahore. As

it would be a 3 canals space so making the resturant in the
suburbs would cost me comparitively low.

Mission Statement

Cinema Cafs mission is to create a new theater experience

for our customers that will be so enjoyable and satisfying that
they will return often and recommend Cinema Caf to their
friends and family. Our customers will be delighted with our
level of service, the quality of the food, and a theater
environment that is second to none. When the film ends and
the applause die out, we believe that our customers will
prefer to watch a new movie at Cinema Caf rather than to
ever be squeezed into a Megaplex again.

Success Factors

Selection of popular films that work best in the group

viewing environment; i.e. comedies, scary or adventure
films.
Provide exceptional service that leaves an impression.
Consistent entertainment atmosphere and product
quality.
Managing our internal finances and cash flow to enable
upward capital growth.
Strict control of all costs, at all times, without exception.
Hiring the best people available, training,
motivatingand encouraging them, and thereby
retaining the friendliest, most efficient staff possible.

Industry Analysis
Major Compitators
Relative Market Share
Threats of new Entrants
Substitutes

Market Analysis

Market Segmentation

Families
Young Adults

SWOT Analysis
Strengths of the Business
Excellent quality products
Best quality food, music and movie all
under one roof.
Good management skills.
Good ability to extract information.

SWOT Analysis
Weaknesses of the Business
New Player
"Which means that" Credibility problem may
affect initial sales
Lack of systems
"Which means that" The company needs to
develop systemised operational & sales
techniques or sacrifice profits

SWOT Analysis
Opportunities in the Marketplace
Add-on products
"Which means that" A potentially enormous
market for the Cafe Cinema Business to tap
into.
Growing market segments.
"Which means that" our Cinema Caf
Business should target all segments.
Explore new markets in Pakistan

SWOT Analysis
Threats in the Marketplace
Increasing supplier prices.
"Which means that" Resulting in reduced
profitability.
Political instability.

Marketing Plan
Competitive Edge:
Promotional Strategies
Advertising
corporate brochure
personalized business cards
Website
local publications
monthly in magazines

Management Team & Company

Structure

Product and services

The Menu:
half-pounder burgers
homemade pizzas
chicken sandwiches
wings
French fries
appetizers
fresh salads
beverages.

Management Summary
Planning operations:
Formulating a people plan
Plan for premises
Plan for Equipment
Plan for materials
Human Resource Management
Hiring of Staf

Operations Plan
Marketing Policies
Management Policies
Financial Policies

Activities Schedule
Month/date

Activity

1st month

To hire the best staff for the operations

2nd month

Promotion of the restaurant. Initially through social media websites and cheap advertisements in
magazines and newspaper.

3rd month

Look for the problems in all departments and come up with the solution.

4th month

Hire more experienced and specialized staff for kitchen.

5th month

Start evaluating the feedback of the customers and will start working on the changing needs.

6th month

Evaluating the performance of the first six months and set goals for the next six months.

6-12months

Keep a close eye on all the operations and feedback of the customers. Increase pays for the
employees. Hire new staff if needed

1-2yr

Look for other potential markets the business could enter. Making a research on how innovative the
idea would be in other potential cities.

Development Plan
Year 1

Potential Customers

Year 2

Year 3

Growth

CAGR

Families

15%

400,000

460,000

529,000

15.00%

Young Adults

10%

200,000

220,000

242,000

10.00%

13.41%

600,000

680,000

771,000

13.41%

Total

Financial Projections

Projected Profit and Loss

Projected Profit and Loss

Monthly Gross Margin

Yearly Gross Margin

Profit and Loss Statement

Year 1

Year 2

Year 3

Sales

Rs.692,100

Rs.860,000

Rs.1,150,000

Direct Cost of Sales

Rs.177,255

Rs.213,500

Rs.$287,000

Movie Screening Expenses

Rs.77,861

Rs.96,750

Rs.129,375

Total Cost of Sales

Rs.255,116

Rs.310,250

Rs.416,375

Gross Margin

Rs.436,984

Rs.549,750

Rs.733,625

Gross Margin %

63.14%

63.92%

63.79%

Rs.288,000

Rs.307,000

Rs.326,000

Rs.22,600

Rs.8,000

Rs.8,000

Expenses
Payroll
Sales and Marketing and Other
Expenses

Profit and Loss Statement

Depreciation

Rs.0

Rs.0

Rs.0

Leased Equipment

Rs.0

Rs.0

Rs.0

Utilities

Rs.14,400

Rs.14,400

Rs.14,400

Insurance

Rs.21,600

Rs.21,600

Rs.21,600

Rent

Rs.24,000

Rs.24,000

Rs.24,000

Payroll Taxes

Rs.43,200

Rs.46,050

Rs.48,900

Other

Rs.0

Rs.0

Rs.0

Total Operating Expenses

Rs.413,800

Rs.421,050

Rs.442,900

Profit Before Interest and Taxes

Rs.23,184

Rs.128,700

Rs.290,725

EBITDA

Rs.23,184

Rs.128,700

Rs.290,725

Interest Expense

Rs.0

Rs.0

Rs.0

Taxes Incurred

Rs.6,955

Rs.38,610

Rs.87,218

Net Profit

Rs.16,229

Rs.90,090

Rs.203,508

Net Profit/Sales

2.34%

10.48%

17.70%

Projected Cash Flow

Cash Flow Statement

Year 1

Year 2

Year 3

Cash Received
Cash from Operations
Cash Sales

Rs.692,100

Rs.860,000

Rs.1,150,000

Rs.692,100

Rs.860,000

Rs.1,150,000

Rs.0

Rs.0

Rs.0

Rs.0

Rs. 0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Sales of Other Current Assets Rs.0

Rs.0

Rs.0

Sales of Long-term Assets

Rs.0

Rs.0

Rs.0

New Investment Received

Rs.0

Rs.0

Rs.0

Subtotal Cash from

Operations
Additional Cash Received
Sales Tax, VAT, HST/GST
Received
New Current Borrowing
New Other Liabilities (interestfree)
New Long-term Liabilities

Cash Flow Statement

Subtotal Cash Received

Rs.692,100

Expenditures

Rs.860,000
Year 1

Rs.1,150,000
Year 2

Year 3

Expenditures from Operations

Cash Spending

Rs.288,000

Rs.307,000

Rs.326,000

Bill Payments

Rs.337,234

Rs.475,500

Rs.607,541

Subtotal Spent on Operations Rs.625,234

Rs.782,500

Rs.933,541

Rs. 0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Additional Cash Spent

Sales Tax, VAT
Principal Repayment of
Current Borrowing

Cash Flow Statement

Other Liabilities Principal

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Purchase Other Current Assets Rs.0

Rs.0

Rs.0

Purchase Long-term Assets

Rs.0

Rs.0

Rs.0

Dividends

Rs.0

Rs.0

Rs.0

Subtotal Cash Spent

Rs.625,234

Rs.782,500

Rs.933,541

Net Cash Flow

Rs.66,866

Rs.77,500

Rs.216,459

Cash Balance

Rs 216,066

Rs 293,566

Rs 510,026

Repayment
Long-term Liabilities Principal
Repayment

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Assets

Current Assets
Cash
Other Current Assets
Total Current Assets

Rs.216,066
Rs.10,000
Rs.226,066

Rs.293,566
Rs.10,000
Rs.303,566

Rs.510,026
Rs.10,000
Rs.520,026

Rs.0
Rs.0
Rs.0
Rs.226,066

Rs.0
Rs.0
Rs.0
Rs.303,566

Rs.0
Rs.0
Rs.0
Rs.520,026

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital

Year 1

Year 2

Year 3

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities

Rs.50,638
Rs.0
Rs.0

Rs.38,047
Rs.0
Rs.0

Rs.50,999
Rs.0
Rs.0

Ratio Analysis
Ratios

Year 1

Year 2

Year 3

Current

4.46

7.98

10.20

Quick

4.46

7.98

10.20

Total Debt to Total Assets

22.40%

12.53%

9.81%

Return on Equity

9.25%

33.93%

43.39%

Debt to Net Worth

0.29

0.14

0.11

Current Debt/Total Assets

22%

13%

10%