Healthy restaurant business plan

This sample business plan has been made available to users of Bplans, published

by Palo Alto Software. Our sample plans were developed by existing companies and

new business start-ups as research instruments to determine market viability, or

funding availability. Names, locations and numbers may have been changed, and

substantial portions of text may have been omitted to preserve

confidentiality and proprietary information.

You are welcome to use this plan as a starting point to create your own, but you do not

have permission to reproduce, resell, publish, distribute

or even copy this plan as it exists here.

Requests for reprints, academic use, and other dissemination of this sample plan should

be emailed to the marketing department of Palo Alto Software at

marketing@paloalto.

Copyright Palo Alto Software, Inc., 2020 All rights reserved.

Table of Contents

Table: Sales Forecast..........................................................................................................................

• 1 Executive Summary..................................................................................................................... This is a business plan. It does not imply an offering of securities. - Chart: Highlights...........................................................................................................................
  • 1 Mission...........................................................................................................................................
  • 1 Objectives....................................................................................................................................
  • 1 Keys to Success.........................................................................................................................
• 2 Company Summary......................................................................................................................
  • 2 Company History.......................................................................................................................
    • Chart: Past Performance............................................................................................................
    • Table: Past Performance............................................................................................................
  • 2 Company Ownership................................................................................................................
• 3 Services.............................................................................................................................................
• 4 Market Analysis Summary.........................................................................................................
  • 4 Target Market Segment Strategy.......................................................................................
  • 4 Market Segmentation..............................................................................................................
    • Table: Market Analysis................................................................................................................
    • Chart: Market Analysis (Pie).....................................................................................................
  • 4 Service Business Analysis......................................................................................................
    • 4.3 Competition and Buying Patterns...............................................................................
• 5 Strategy and Implementation Summary.............................................................................
  • 5 Competitive Edge......................................................................................................................
  • 5 Marketing Strategy...................................................................................................................
  • 5 Sales Strategy............................................................................................................................
    • 5.3 Sales Forecast..................................................................................................................
      • Table: Sales Forecast............................................................................................................
      • Chart: Sales Monthly.............................................................................................................
      • Chart: Sales by Year..............................................................................................................
  • 5 Milestones...................................................................................................................................
    • Table: Milestones........................................................................................................................
• 6 Web Plan Summary....................................................................................................................
• 6 Web Plan Summary....................................................................................................................
  • 6 Website Marketing Strategy...............................................................................................
  • 6 Development Requirements................................................................................................
• 7 Management Summary.............................................................................................................
  • 7 Personnel Plan..........................................................................................................................
    • Table: Personnel..........................................................................................................................
• 8 Financial Plan................................................................................................................................
  • 8 Important Assumptions........................................................................................................
    • Table: General Assumptions...................................................................................................
    • Table: Cash Flow.........................................................................................................................
    • Chart: Cash...................................................................................................................................
  • 8 Break-even Analysis...............................................................................................................
    • Chart: Break-even Analysis....................................................................................................
    • Table: Break-even Analysis....................................................................................................
  • 8 Projected Profit and Loss..................................................................................................... Table of Contents
  • 8 Projected Profit and Loss.....................................................................................................
    • Chart: Profit Monthly.................................................................................................................
    • Chart: Profit Yearly.....................................................................................................................
    • Chart: Gross Margin Monthly.................................................................................................
    • Chart: Gross Margin Yearly.....................................................................................................
    • Table: Profit and Loss................................................................................................................
  • 8 Projected Balance Sheet......................................................................................................
  • 8 Projected Balance Sheet......................................................................................................
    • Table: Balance Sheet.................................................................................................................
    • Table: Ratios.................................................................................................................................
• Table: Sales Forecast..........................................................................................................................
• Table: Personnel....................................................................................................................................
• Table: Personnel....................................................................................................................................
• Table: General Assumptions.............................................................................................................
• Table: General Assumptions.............................................................................................................
• Table: Profit and Loss..........................................................................................................................
• Table: Profit and Loss..........................................................................................................................
• Table: Cash Flow...................................................................................................................................
• Table: Cash Flow...................................................................................................................................
• Table: Balance Sheet...........................................................................................................................

Chart: Highlights...........................................................................................................................

1 Mission...........................................................................................................................................

Kona-Q's mission is to become the premier fast-casual dining experience. This will be accomplished by offering an unprecedented experience coupled with great food and reasonable prices.

1 Objectives....................................................................................................................................

 To become the premier fast-casual restaurant in every market entered.  To open a new store every 12 months.  To offer high-quality food and a wonderful experience at reasonable prices.

1 Keys to Success.........................................................................................................................

 Offer simple, delicious menu items.  Treat every customer as if they are the only customer.  Design and employ strict financial controls.

2 Company Summary......................................................................................................................

Kona-Q is a new restaurant that has purchased the assets of an existing restaurant. It has been formed as an Oregon Corporation, the founder and President is Kevin Anderson.

2 Company History.......................................................................................................................

Kona-Q purchased the assets of Litto's Bento in Salem, Oregon. This method was chosen as a way to quickly enter the market and leverage the goodwill already established from the former business.

Kevin was friends with the former owner and the menu and equipment was similar to Kona-Q's needs. Litto's Bento was purchased for Rp75,000 including equipment.

Kona-Q is forecasting for aggressive growth. The intervals for opening a new store will be approximately one every 12 months.

Each location will be 1,000 square feet, on average, able to serve approximately 50,000 people. For restaurants to succeed, the key factor is location. Kona-Q has developed criteria for future site locations.

Traffic counts are to be 20,000 or greater and near a national anchor. The decision to open a new store is not strictly every 12 months but when a new ideal location opens up.

For the opening of a new location, Kona-Q will incur the following expenses:

 Rp75K in build out expenses.  Rp10K in equipment including BBQ, rice cooker, refrigerator, small wares, tables and chairs.

Chart: Past Performance............................................................................................................

3 Services

Kona-Q provides an unmet dining experience in the fast-casual niche of the restaurant industry. All patrons receive benchmarked customer attention, encouraging them to return. The menu offerings are fast, simple, healthy, and easy to prepare.

 Chicken skewer, teriyaki or curry- Rp5.  Beef skewer, teriyaki or curry- Rp5.  Vegetable skewers, teriyaki or curry- Rp4.  Add rice, white or brown- Rp1.  Add vegetables- Rp2.  Green salad with soy ginger vinaigrette- Rp2.  Beverages include iced teas, hot teas, soft drinks, coffee, and bottled water  Assorted pre-prepared desserts

All dishes have a signature pineapple slice for decoration and eating pleasure. All the meats are marinated in a sweet soy ginger sauce overnight.

4 Market Analysis Summary

The market can be divided into two market segments, families and individuals. Families will comprise the majority of dinner time business with individuals making up the majority of lunch time business.

Kona-Q will be operating within the fast-casual niche of the restaurant industry. They will be competing against other segments within the industry such as fast food as well as more traditional sit down restaurants.

4 Target Market Segment Strategy

Kona-Q will be focusing on families and individuals for several specific reasons. Most dinner service is for families.

As more households become two income families, the adults have less time to prepare meals. Going out to dinner eliminates the need to prepare a meal and offers time to catch up with each other.

The lunch business is driven by individuals. Many go out to lunch to get out of the work setting. Others have business meetings at lunch. This creates a large market of potential customers that is especially attractive.

4 Market Segmentation

The market has been segmented into two distinct groups.

Families: forecasted to contribute 67% of the dinner time revenue.

 Have 2 children  >Rp50K in household income  67% have an undergraduate degree  26% have graduate level coursework  Go out to eat 1 times a week  Dinners out are used as a meal replacement since neither parent has time to cook a meal at home  Sophisticated families that live within three miles of the site

Individuals: comprise 69% of the lunch time revenue.

 Ages 19-  Individual income average is Rp36,  72% of the individuals over 23 have an undergraduate education  Eat out 2 times a week  Young professionals that live near the location  Shoppers who patronize the nearby high rent stores

Table: Market Analysis

Market Analysis 2003 2004 2005 2006 2007 Potential Customers Growth CAGR Families 9% 26,585 28,978 31,586 34,429 37,528 9% Individuals 8% 33,654 36,346 39,254 42,394 45,786 8% Total 8% 60,239 65,324 70,840 76,823 83,314 8%

4.3 Competition and Buying Patterns

Kona-Q faces competition from a variety of competitors:

 Fast food: Offers the convenience of fast service. The food product is not competitive, but people are often willing to sacrifice quality for convenience.

 Take out: Take away service allows a customer to enjoy already prepared food in their home.

 Sit down dining: For customers that have the time to have a leisurely meal. Food service takes longer and the menu options are more extensive.

 Sandwich shops: Considered to be part of the fast food segment, they are a direct competitor of Kona-Q as their food product is more healthy than the fried alternatives of fast food. This competition comes primarily during lunch hours.

 Grocery markets: Serving prepared foods.

Customer buying patterns typically revolve around several different factors:

 Location: The restaurant is located near to work or home.

 Convenience: People eat out as it is quicker than preparing a meal themselves. Factors of convenience relative to sit down restaurants are the time it takes to be seated, served, and the hours of operation.

 Quality: The menu items must meet minimum levels of quality for people to be willing to spend money on the food, particularly when there are so many different options available.

5 Strategy and Implementation Summary

Kona-Q will leverage its two-pronged competitive edge to quickly gain market share. The competitive edge consists of an experience focus (ensuring that the customer's experience is top notch) and offering a fast, healthy dining-out alternative. Kona-Q's marketing effort will focus on communicating the message that it offers a convenient, healthy dining experience. This will be accomplished through a variety of ways to be detailed in the Marketing Strategy section. Kona-Q's sales strategy will be an effort to convert potential and first-time customers into long-term customers.

5 Competitive Edge

Kona-Q will rely on a two part competitive advantage to help it become the premier fast-casual offering.

 The importance of the experience. With so many restaurants and prepared food being offered at grocery markets, the customer experience becomes extremely important as an effective way of distinguishing offerings. When a customer has a good experience at a restaurant, there is a significant chance that they will become a repeat customer. It is this experience that remains in the customer's mind well after they have consumed all of their food. This memory is what is communicated to their friends and colleagues.

 Fast, healthy food alternative. There is a huge market demand for fast, convenient food that can be consumed without dietary concerns. Kona-Q offers exactly this, vegetables and meats that are grilled with or without healthy marinades and sauces that add flavor not fat. White or brown rice is offered as the starch of the meal. In addition to the plentiful amount of vegetables offered, green salads are also available.

5 Marketing Strategy

The goal of the marketing strategy will be to raise awareness levels regarding Kona-Q and the offerings and value. The message will be that Kona-Q is a convenient, healthy fast-casual alternative restaurant. Kona-Q will employ several marketing outlets:

 Print media advertising: The Willamette Week, a weekly entertainment guide. Similar weekly entertainment guides will be used with expansion to different cities.

 Flyers: Passed around to local businesses with coupons attached to introduce the community to Kona-Q and creating an economic incentive to try it.

 Entertainment book coupons: Presented within the first eight months of entering a market. The effectiveness of these books diminishes after approximately eight months and Kona-Q will turn to more cost effective marketing expenditures.

5 Sales Strategy

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.

Chart: Sales by Year

5 Milestones

Kona-Q has identified four milestones for the organization. The milestones were chosen to develop achievable yet lofty performance goals for Kona-Q. The milestones were picked to be easy to measure. The following table offers detailed information regarding the milestones.

Table: Personnel....................................................................................................................................

Milestones

Milestone Start Date End Date Budget Manager Department Completion of the business plan 1/1/2003 2/15/2003 - Kevin Operations Opening of the second store 1/1/2003 1/30/2004 - Kevin Business development Profitability 1/1/2003 4/30/2005 - Kevin Accounting Expansion into a new market 1/1/2003 02/30/06 - Kevin Business development Totals -

6 Web Plan Summary

Kona-Q will have a Web presence with a simple, user-friendly website. The website will be used for menu information, contact and location information, as well as background for the story of Kona-Q.

Currently, Kona-Q has no plans to offer online menu ordering. Kona-Q will reconsider this decision at a later date if it appears that customer demand requests this feature.

6 Website Marketing Strategy

The website will rely on two methods of marketing as a means for developing awareness of the site and increasing the number of visitors.

 Search engine submission: The website will be submitted to various search engines.

 Printed material: Kona-Q will reference the website address on all printed material that is passed out including menus, business cards, and advertising media.

6 Development Requirements

Kona-Q has identified a skilled Web designer to design and develop the website. This programmer has impressive credentials from the State of Oregon Web development department. Kona-Q has negotiated a below market bid for the website.

8 Projected Cash Flow

The following chart and table will indicate Projected Cash Flow.

Table: Cash Flow...................................................................................................................................

Pro Forma Cash Flow 2026 2027 2028 Cash Received

Cash from Operations Cash Sales Rp1,157,618,740 Rp3,664,818,385 Rp6,824,789, Subtotal Cash from Operations Rp1,157,618,740 Rp3,664,818,385 Rp6,824,789,

Additional Cash Received Sales Tax, VAT, HST/GST Received - - - New Current Borrowing Rp287,261,000 - - New Other Liabilities (interest-free) - - - New Long-term Liabilities - Rp1,077,228,750 Rp1,077,228, Sales of Other Current Assets - - - Sales of Long-term Assets - - - New Investment Received Rp143,630,500 - - Subtotal Cash Received Rp1,588,510,240 Rp4,742,047,1 35 Rp7,902,018,

Expenditures 2026 2027 2028

Expenditures from Operations Cash Spending Rp667,881,825 Rp1,424,814,560 Rp2,122,858, Bill Payments Rp731,941,028 Rp1,829,910,022 Rp3,478,716, Subtotal Spent on Operations Rp1,400,541,005 Rp3,254,724,582 Rp5,601,575,

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out - - - Principal Repayment of Current Borrowing Rp78,996,775 Rp78,996,775 Rp78,996, Other Liabilities Principal Repayment - - - Long-term Liabilities Principal Repayment - Rp107,722,8 75 Rp107,722, Purchase Other Current Assets - - - Purchase Long-term Assets - Rp1,077,228,750 Rp1,077,228, 750 Dividends - - - Subtotal Cash Spent Rp1,479,537,780 Rp4,518,672,982 Rp6,865,523,

Net Cash Flow Rp108,958,097 Rp223,374,153 Rp1,036,495, 140 Cash Balance Rp180,615,353 Rp403,989,507 Rp1,440,484,

Chart: Cash

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Des -Rp50,000,

Rp-

Rp50,000,

Rp100,000,

Rp150,000,

Rp200,000,

Rp250,000,

Rp300,000,

Rp350,000,

Rp400,000,

Rp450,000,

Cash Chart

Net Cash Flow Cash Balance

Month

Amount