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1.0 Summary

CreditSunrise Fictional restaurant is a new venture for Little West-Side’s Main Avenue. Situated at the corner of Main and Fourth Street, it is located in the newly renovated section of this highly vibrant and enchanting strip. Owners John Smith and Sam Jones have operated 4 successful restaurants over their 35 years experience in the restaurant industry. Given the previous success of past ventures we conservatively estimate first year sales of $1.5 million with stable growth to $2.3 million in year 3. Investment costs are $600,000 with $425,000 injected from the owners and the remainder via SBA loan.

CreditSunrise Fictional Restaurant requests an SBA loan in the amount of $175,000 repayable in monthly principle plus interest payments over 5 years. The primary source for loan repayment will be from business cash flow estimated at $250,000 in the first year on net profits of $175,000. Proposed security on the loan includes, government guarantee (SBA loan), first charge on business assets valued at $600,000 and a personal guarantee from both owners pledging a net worth of $500,000 as collateral.

The location is secure with renovations commencing in 2 weeks. The project plan requires asset purchases for kitchen equipment and leasehold improvements within 6 weeks to enable an April grand opening at the start of Main Avenue’s Jazz Festival. This festival attracts over 1 million people to the street over a 3 day weekend including press, critics, celebrities and diplomats.

Sales projections are based on management’s previous successful endeavors.

Company Summary

2.1 Company History

John started Country Style Diner Restaurant on Park Lawn Street fifteen years ago as a lunch-time sandwich place. Every noon hour the lineup would be out the door with famished clients eagerly awaiting John’s famous veal sandwiches. Country Style Diner also catered to the businesses within the 20 story building.

When the location in the ING Center became available, John jumped at the opportunity. He and all his staff moved to the concourse level of the ING Center and set up shop. The results included 30% average growth in sales over 5 years and net profits of $432,000 in 2002.

Sam Jones is owner of Club 1 located in Little West-Side market. With Club 1, Sam solidified his reputation as a visionary in the restaurant industry. While numerous restaurants continue to struggle, Club 1 proved highly successful in generating a profit in its first quarter of operations

In one exemplary review by Jennifer Grange of TheCity.com, noted “Club 1's outstanding food, service and ambiance were directly attributed to Sam Jones' cooking expertise and stellar reputation in the industry.” Sales last year totaled $1.6 million leading to a net profit of $128,000 and positive $78,000 cash flow.

John and Sam have a long term personal and working relationship. Both John and Sam grew up and now live with their families in the area and have developed strong relations with key contacts in the community such as John Jackson, City Councilor and Lenny Simpson, President of a local Radio Station K-102 and C.E.O. of the Little West-Side Business Improvement Association. They are familiar with the businesses and competition as well as with the clientele.

Sam was John’s lead chef for 8 years at Country Style Diner from 1988-1995. Plans to open a joint restaurant on Main Avenue have been in development stage over the past 2 years. In early 2001 both partners created a strategic plan outlining steps to completion for CreditSunrise Fictional Restaurant. This plan included both partners saving in excess of $400,000 in capital and negotiating a lease in the centre of Main Avenue.

2.2 Mission

CreditSunrise Fictional Restaurant strives to be the premier restaurant on Main Avenue. Our goal is to capture the 25-35 market with high quality food and vibrant night-club environment. We want our customers to have more fun during their leisure time and return on a weekly basis with more friends. We provide state-of-the-art sound system to attract high profile entertainment. We combine atmosphere, ambiance and menu selection to create a buzz heard around the city.

2.3 Success factors

The keys to success in achieving our goals are:
• Product quality. Great food, great service and entertaining atmosphere
• Adaptive themes. Ensure menu choices and entertainment selection changes with the seasons to attract customers
• Managing finances to ensure maximum return on equity
• Controlling costs and expenses through management control.

2.4 Location

A lease was secured in January 2003 for a prime 6000 square foot location at the corner of Main and Fourth Street. Once an old Hall, this location has been renovated to accommodate two floors with an upper balcony. The location has a stage already built in which makes it invaluable as new stages on Main Avenue are against by-laws.

Sam has already spoken to his Metro councilor and has satisfied the neighborhood that there will be no additional noise. He even installed triple-paned windows to buffer the sound from the neighborhood at a $58,800 cost. John and Sam have gone to great lengths to ensure they honor their commitments to this neighborhood. As well, they have negotiated valet parking at the local school to ease the parking frustrations along Main Street.

2.5 Environmental Safety

We anticipate minimal environmental risks as all machines are approved. Required venting and safety apparatus will be installed. Fire resistant fabric has been bought to decorate the restaurant and add to the safety features.

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