Business Description :

To become the chosen low calorie food restaurant for breakfast, lunch and dinner, for executives and students as well as families and evening diners. The focus would be on providing hygienic, low calorie food at reasonable prices, with quick service times.


Business Overview :

To promote your brand as a:

1.Popular place for healthy low calorie breakfast, lunch and dinner, for families as well as evening diners.
2.Reasonably priced menu
3.Quick service
4.Caterer of multiple cuisines.

Breakfast: In America people often chose packaged breakfast which they can have on the go. So packaged breakfast which is rich in protein and low on fat would need to be served. Since the trend of on-the-go eaters is declining, you could offer a nice ambience in the restaurant, so that they can enjoy their breakfast in a comfortable atmosphere.

Provision for coffee and other beverages would also be required. So the restaurant could also serve as a café outlet between lunch and dinner.

Lunch & Dinner: Multiple cuisines ranging across Continental, Chinese, Thai, Italian etc. for catering to an ethnically diverse population.

Product Service Description :

• Organic and local items.
• Low calorie foods
• Reasonable pricing
• Packaged breakfast for on-the-go eaters, in addition to regular seating arrangements for serving breakfast
• The USP would be Quick service and low calorie food.

Market Opportunity

According to the National Restaurant Association’s forecast, US restaurant industry was expected to book a record sale of $537 billion in 2007. That would be an increase of 5% over 2006 and the 16th consecutive year of real growth. It means that Americans spend around 48% of their food budget in restaurants.

The US has 935,000 restaurants and food outlets. It employs 12.8 million individuals and is expected to add another two million in the next 10 years.

According to the CEO of a Washington-based trade association, the total impact on the economy would be around $1.3 trillion

The market for Organic items is on the rise. It is expected that 52 % of fine dining, 42 % of casual dining and 27 % of family dining restaurants would outgrow other restaurants. A similar growth opportunity is predicted for locally produced food.

This shows that the opportunity for growth is quite high.

Competitive Analysis

There will be competition from established restaurants that focus on a similar menu. In the breakfast segment this would include traditional stores like McDonald’s, Subway, Burger King, Chick-fil-A etc. There are also bars and café houses that serve breakfast and fast food delights.
Other established restaurants in the region pose considerable threat in allowing a start-up to establish itself.

Marketing Strategy

The Marketing strategy would focus on the low-calorie menu and the ability to deliver orders quickly. The brand image and message could be carried through a mix of following marketing vehicles:

• Print Media – Local newspapers.
• Brochures for circulation in large hotels, to be given to their guests. They would contain pictures of the interiors of the restaurant and focus on the benefits of low calorie food.
• Corporate brochures and menu cards to be circulated among office goers in different companies
• Direct mailing
• Local Hoardings
• Yellow Pages—Ameritech PagesPlus, Greater Benzie County Telephone Directory

Sales and Distribution Strategy

The primary target must be the local customer and the strategy should aim towards attracting new customers, as well as maintaining regular ones. The business USP would be the ability to serve healthy food in minimum time, catering to local people who come from ethnically diverse backgrounds.

While breakfast provisions and menu would be designed to meet the pace of the fast lives of customers. Lunch and dinner would cater to the palate, with a diverse menu focused on organic and locally produced items.

One can also move into the franchise system once the restaurant business has attained stabilized revenue and profitability.

Operations Strategy

Renting a 2500 Sq feet area in Portland would be suitable. The restaurant would be open 7 days a week. The operating time would be between 10:00 A.M. to 11:00 P.M.

Quality must be a key focus. And the differentiating factor would be the ability to deliver low calorie healthy food in minimum time.

In order to maintain a proper billing system, as well as consumables in stock, the business should maintain computerized systems.

There should also be some changes in the menu (say 2-3 days in a week), so that the customers can experience a variety of tastes when they visit the restaurant at different times.

Food would be cooked in the premises, so that they can be served fresh.

Financial projections

Category	Year 1	Year 2	Year 3	Comments
Revenue	$365,000	$547,500	$766,500	Growth of 50% in 2nd year and 40% in 3rd year.
Cost of Goods sold	$91,250	$136,875	$191,625	25% of total revenue
Gross profit	$273,750	$410,625	$574,875
Expenses : -
Payroll	$200,000	$270,000	$364,500	For Manager, Hostess, chef, cleaning waiters and others
Rent	$42,000	$43,000	$44,000	Rent for 2500 square foot place.
Advertising	$5,000	$6,000	$7,000
Telephone & Electricity	$9,000	$10,000	$12,000
Miscellaneous	$8,000	$10,000	$12,000	This includes depreciation for equipments, legal expenses,
Total Expenses	$264,000	$339,000	$439,500
Net operating Income	$356,000	$537,500	$754,500
Other Income	-	-	-
Net Income / (loss)	$9,750	$71,625	$135,375

Capital Needs Analysis

Asset	Year 1	Year 2	Year 3	Total
Equipment	$25,000	$5,000	$5,000
Furniture & fixtures	$75,000	$15,000	$5,000
Staff	$30,000	$27,000	$35,000
Cash	$50,000	$55,000	$68,750
Consumables	$10,000	$15,000	$20,000
deposits	$12,000	-	-
Other	$5,000	$6,000	$7,000
Totals	$207,000	$123,000	$140,750	$470,750

Risks and Challenges

Challenges would be :

• Maintaining quality of food amidst rising cost.
• Credit crunch in the US.
• Opening of other restaurants because of low investment cost.
• The need to upgrade and maintain variety in the menu.
• Creating trademark dishes.

Exit Strategy

There seems to be a growing opportunity for the restaurant business in the USA. One may find Private Equity investments over time, to get significant capital gain over the next 3-4 years.

Tips for Success

Providing people with a combination of low calorie
and tasty food in a comfortable environment.

Books

ISBN NO	Book Title	Author
471698741	How to Open and Run a Successful Restaurant	Christopher Egerton-Thomas
761138994	Food to Live By	Myra Goodman , Linda Holland , Pam
910627363	Opening a Restaurant or Other Food Business Starter Kit:	Sharon Fullen
8171548881	Low Calorie Vegetarian Cook Book	Sanjeev Kapoor
71466711	Successful Franchising	Bradley J Sugars , Brad Sugars

Web Resources

Resource URL

http://www.kptv.com/smallbusiness/8037661/detail.html

http://www.startanamericancompany.com/States/OR/Information.aspx -