Sample business plan part iii
6.1 Immediate competitors
Management specifically selected this location
due to the community's thriving and vibrant nightlife. Little
West-Side offers approximately:
• 30 restaurants - 23 Italian, 1 French, 4 Chinese, 3 miscellaneous
(American/ Continental/Eclectic), 1 Middle Eastern, 1 Mexican,
1 Portuguese and 2 Spanish
• 34 bars, cafés and trattorias
|See distribution on map
While CreditSunrise Fictional will be competing
with all of these establishments for the consumer dollar, the
main competition will be with several of the key restaurants within
this community, most notably:
• Club 1 - While this restaurant was rated
highly on the TheCity.com website, their operations, menus and
ambiance were all a direct result of John Smith's proven experience
in the industry. Unless Club 1 adds entertainment to their venue,
patrons may find it more convenient to go across the street to
get a great meal and entertainment.
• Sotto Wine & Pasta Bar – This
restaurant provides the same calibers of food and presentation
that CreditSunrise Fictional will. However, due to the lack of
live music, they’re in the same boat as Club 1.
• Bistro Bar and Grill – Their food
is lacking and therefore not competitive with CreditSunrise Fictional
in this section, but their DJ is great and attracts the crowd
CreditSunrise Fictional is going after.
• Tea Room – a new restaurant rated
highly for their menu and ambiance. They will be losing their
head waiter to CreditSunrise Fictional. There is no live music.
• Main Avenue Bar – The music here
is live and attracts the clientele CreditSunrise Fictional is
looking for; however, the bar seats only 60 and the food is not
comparable to CreditSunrise Fictional.
• The Room – Owned by Jack Small
of SSS fame, it has a bluesy/jazzy/funky ambiance. It is small
but is expanding to fit approximately 125 people. The place gets
extremely crowded making it hard to even go to the bathroom. The
food is good, but very simple and more along the lines of bar
food. The crowd is definitely in the early 30’s –
exactly who CreditSunrise Fictional is targeting.
• Shallow Start – This bar opened
last year and caters to the 30’s crowd. It is a very crowded
basement with a DJ. Food is bar food. This crowd will be hard-pressed
to keep coming to Shallow Start when CreditSunrise Fictional is
6.2 Competitive assessment
There are many areas where restaurants are in
fierce competition. However, Little West-Side, it is known for
its restaurants. Because of all the tourists and because it’s
a trendy part of The City, there is definitely an overflow of
customers. CreditSunrise Fictional direct competition will definitely
come from none other than Joe’s previous endeavor, Club
1. The clientele is familiar with John and will definitely want
to try out his new venue. With the added space, great menu, and
live music, CreditSunrise Fictional should win over many Main
There are few restaurants that provide live music
and most of them that do have ethnic music. The Room provides
live music between Thursday and Sunday; however, it’s a
cramped space and the food is more of a sandwich/appetizer style.
Bar Italia has music on their second floor, but again, the food
has been the same for years and is more of a landmark than a “hot
spot”. Some bars like Shallow Start are popular, but provide
7.1 Day to day operation
The operations are already mapped out. John will
monitor the kitchen and cook there with the chef, London Nott.
He and John will also take care of the catering. Sam will monitor
the floor, the waiters, and the door. Sam’s brother Steve,
a licensed bartender, will be at the bar (he just finished bartending
school) and manage that area. John and Sam will hire the waiters
and kitchen staff. Staffing will include the daytime chef, delivery
people for catering and an additional person for corporate events
as required. Evening staff will include 5 waiters/waitresses,
1 host/hostess; 1-2 bus staff, 2 chefs and 1 coat checker.
The plan is to open slowly for the first couple
of weeks – Thursday, Friday, and Saturday nights. The stage
and seating capacity make this location ideal for business morning
meetings and conferences (one client has already stated his willingness
to book their location once a month) during the weekdays. Dinners
will open up from Tuesdays to Sundays and then there will be further
consideration for lunches, especially in the summer.
The catering side of the business will start
almost immediately. London’s previous job was in catering
in the United States with his brother and therefore, will bring
much experience to this position.
The liquor licenses have already been received
for the whole venue including the patio. The renovations are up
to fire code and they have added another exit to be able to add
Both Sam and John have used suppliers they know
and trust and have therefore negotiated deals with them on cost
and credit. Sam has used contacts in the construction business
for the windows, labor, brickwork, etc. John has used his tried
and true suppliers – the same used at Country Style Diner
and at Club 1 including A R Foods, Cort’s and Pete’s,
and Small Winemakers.
Given management's extensive experience in the
restaurant industry, significant expense is being incurred on
a new computer and high-end camera system (covering all cash registers
and bar activities) to ensure management's guidelines regarding
the “handling of cash transactions” are strictly adhered
John Smith is the key strength of the business.
John has been in the restaurant business most of his life and
is well known in the community. His previous ventures have proven
highly successful and generated profits in their first year of
operations only to show continuous success in subsequent years.
John is literally a “hands-on” owner.
He can often be found in the kitchen cooking if his chef is off
and if his chef is there, he’s the co-chef. John understands
his loyal staff and leaves them to do what they do best. John
ensures that he greets and banters with everyone. Anyone new to
his establishment is introduced and quickly put at ease. John
accommodates special requests on a health or diet basis and is
always willing to make something special and off the menu for
his best clients. It’s telling when even his suppliers join
him for lunch, coffee or a drink before going on to their next
John has a loyal following. His waiters, chefs,
and suppliers have been with him since he opened Country Style
Diner fifteen years ago. When he opened Club 1, it was with one
of his waiters and an old friend. The same suppliers, builders,
and designers from Country Style Diner were used in Club 1 and
with the new restaurant, CreditSunrise Fictional.
John is a savvy entrepreneur. He is in tune with
his financials and knows where he makes money in his business
and what margins he needs. At Country Style Diner, he knew his
sandwich bar made the most money, so any expansion was first made
there. Because of Joe’s loyalty to suppliers, he is able
to negotiate considerable discounts and is able to use credit
from his suppliers.
John’s restaurants get inspected often,
as all restaurants in The City are, and e consistently receives
stellar ratings. He runs an extremely clean and organized operation.
Sam Jones's impact during this initial stage has been just as
critical in a different capacity. Sam's network and experience
in the industrial renovations industry has been a major component
thus far. Due to Sam's relations with other trades people, management
has been able to fully finance all renovations (approximately
$0.00) to date at a fraction of their normal cost (approximately
Sam has been contracting trades people and overseeing
the renovations to CreditSunrise Fictional fulltime since June
2000 and is committed to managing the floor full time once CreditSunrise
7.3 Key staff
London Nott comes with much experience and he
has worked with John before – in Country Style Diner and
also at Club 1. He has worked at The Co-op and is presently working
at SRC providing them with a food cost and analysis binder. Not
only does London know how to cook, but he also can keep costs
down and make each dish he prepares a work of art. His catering
experience will be an asset at CreditSunrise Fictional.
Steve Jones, a licensed bartender will act as
the full-time, head bartender overseeing operations behind the
bars. Sam's wife, Sue Jones, currently a chartered accountant
for the Ontario Securities Commission, will provide the financial
planning and preparation of financials required. John’s
wife, Terrie will provide and monitor the monthly cash flow as
she has experience as a bookkeeper.
Henry Salral, a 6-year veteran waiter at Country
Style Diner has agreed to join CreditSunrise Fictional when it
opens. Henry is used to running a dining room on his own or with
one other waiter and will be able to train the new waiters/busboys
in the way John has trained him.
Thomas Trent, headwaiter at PhePhoenixs agreed
to come to CreditSunrise Fictional once it’s opened to manage
8.1 Financial Requirements/ Loan Request
Fictional Restaurant seeks a $175,000 SBA Loan
to assist in the project costs of $600,000. This includes the
purchase of fixed assets in the amount of $225,000 and leasehold
improvements in the amount of $375,000.
The owners have injected $135,000 in funds over
the past six months to renovate the building. We have provided
a break down of existing disbursements in the appendix of this
Future disbursements include $305,000 in additional
leasehold improvements including construction, refinishing and
details required prior to opening the facility. This will bring
the total leasehold improvement costs to $375,000. Future equipment
costs are estimated at $160,000. The owners will not purchase
further equipment until the leasehold improvements are complete.
The equipment expenses will include kitchen & bar equipment,
security, and other required items.
8.2 Financial Summary
Total leasehold improvements: $375,000
Total equipment purchases: $225,000
Total project costs: $600,000
Owner injection to date: $135,000
Future owner injection: $275,000
Total owner injection: $425,000
Percent financing: 70.9%
Debt financing: $175,000
Percent financing: 29.1%
Weekly sales $7200.00
Weekly customers 240