Business plan for a Korean and Japanese restaurant

Business plan for a Korean and Japanese restaurant The purpose of this business plan is to justify the startup of a high-end Korean and Japanese restaurant in the Carrolton, TX area. Sushi Nara will have one owner and the legal structure will consist of a sole proprietor. Sushi Nara will be located in 2625 Old Denton Rd. #200 Carrolton, TX 75007. Sushi Nara will provide a high class Korean and Japanese cuisine. Based on projected income and financial analysis included in this business plan, Sushi Nara will be successful. There is a high demand for healthy food, especially Asian cuisine like Korean and Japanese cuisine in the Dallas area due to the lack of similar business available. We look forward to the future at Sushi Nara. We expect in five years that demand for our specialized service will grow in other areas to justify opening several restaurant owned franchises in other areas. Sushi Naras specialized service, distinctive logo, slogan Top quality Top Service, reputation for customer service will provide a tough to beat competitive edge. The owners have earned Bachelor degrees of business, and have extensive experience in business management and operations from past years of work experience. Management and Organization Plan Sushi Nara, Korean and Japanese fusion restaurant, has a mission that to provide outstanding Korean and Japanese cuisine to Korean community in Dallas, Texas. Sushi Naras specialized service, distinctive logo, and slogan Top Quality and Top service, reputation for customer service will provide a tough to beat competitive edge. Sushi Nara is committed to becoming Dallass premier Korean and Japanese restaurant. Dedication to building relationships is based on our honesty, service, and accountability. Sushi Nara is also committed to exceptional customer satisfaction. Location Sushi Nara is located in a Korean town in Carrolton, TX. The address is 2625 Old Denton Rd. #200 Carrolton, TX 75007. The 3,400 square foot building was built specifically for the commercial property. The entire building is serviced by a Korean retailer and whole seller. Sushi Nara maintains 11am to 9pm, on Tuesday to Sunday. Company mission At its core, Sushi Nara provides for the Korean traditional cuisines, Japanese cuisines, traditional Korean Soju, and Japanese Sake. Restaurant provides to customer with an outstanding quality sushi, sashimi, and Korean cuisine in one place. To provide high quality food, we do not use chemical ingredients and frozen products. Company Vision Eating healthy! Korean and Japanese cuisine at one place! Today there are many concerns regarding to our health and many experts advising us how we should eat. We must pay close attention to our diets, but eating well should not only benefit your body, but your mind as well. We, Sushi Nara, believe that of all the ways that people can eat, Korean and Japanese Cuisine are the healthiest and safest diet. We are going to start Sushi Nara so that people might learn how to eat a healthy diet. As native Koreans, we have the benefit of understanding traditional Korean cuisine and quickly saw that there were many Korean dishes we could introduce to westerners. Product The service that Sushi Nara is going to offer is one in which it makes your dining better and healthier. We want to treat our guests with respect so that it makes their dining more enjoyable. Sushi Nara will be providing services for dining such as: Korean cuisine, Japanese cuisine, and traditional alcohols. A typical Korean meal usually consists of one main dish, generally meat or fish, and a wide range of tiny side dishes as appetizers or Ban Chan. Kim Chi, a spicy fermented cabbage dish highly seasoned with garlic and red pepper, is served at virtually all meals and is probably the best known Korean Ban Chan. A typical Korean meal usually consists of sushi, sashimi and teriyaki. Two very popular meat dishes are Gal-Bi, and Bul-Goki which are marinated in a delectable sauce and grilled over an open flame. Soups are also another Korean staple at mealtimes. A popular soup is Man Du Guk, a tasty dumpling stew in a seasoned beef broth. Another favorite is Bi-Bim-Bab, which usually makes for a hearty meal on its own, with just a few appetizers. Bi-Bim-Bab starts with rice in a big bowl, and is topped with assorted vegetables and mixed with a spicy bean paste. This dish can be served with shreds of beef or without. Sushi is a Japanese dish consisting of cooked vinegary rice which is commonly topped with other ingredients, such as fish or other seafood. Sliced raw fish by itself is called sashimi, as distinct from sushi Organizational Structure and Human Resources Sushi Naras legal structure is sole proprietorship. Sushi Nara has 4 full time employees and 3 part time employees. Sushi Nara categorizes employees into four types of labor, Director, Receptionist/Casher, Kitchen employee, and Customer Service. These categories are determined by position education and experience requirements. Director has all responsibility of restaurant not only financial problems, customer service, advertising but also recipe and food quality, but usually executive director is going to be to greet customers and to check customers bill at the front desk. Receptionist/Casher has responsibilities about dining appointment, check bill, and customer greeting. Kitchen employee has responsibilities about cooking, food supply purchasing, food quality and everything inside the kitchen. Customer service has responsibilities about customer satisfaction during food serving. Director/Owner 1Organization Structure Kitchen employee 2 (Chef 1) (Assistant chef 1) Receptionist/Casher 1 Customer service 3 Human Resource Requirements Director/Owner The person who has knowledge of general business. Receptionist/Casher The person who has an accounting Knowledge The person who with no contagious diseases Kitchen Employee The person who has a license of Korean and Japanese cuisine The person who has chef experienced at least three years The person who has and honest and diligent attitude The person who with no contagious diseases Customer Service The person who with no contagious diseases The person who has a customer service mind The person who has honest and diligent attitude Marketing Plan Industry Outlook According to National Restaurant Associations 2010 Restaurant Industry Forecast, economic downturn easing, the restaurant industry is expected to show gradual improvement in 2010. Sustainability, health and nutrition will be the top trends on restaurant menus this year. Seventy percent of consumers say they are more likely to visit restaurants that offer fresh produced food, and nearly three out of four say they are trying to eat healthier in restaurants now than they did two years ago. Target Market A stores success often depends on how carefully its target market has been identified. Our main targets are Korean customers who live in Dallas and nearby states. Dallas is one of the most important cities to Korean society in US. According to The Korea Embassy in Houston, officially 148,000 Korean people live in Texas. There are a lot of Korean wholesale stores in Carrolton, TX and on Harry Hines Blvd in Dallas. Usually, Dallas covers business supply to Korean retail store, located in Oklahoma, Mississippi, Louisiana, and Arkansas. Customer Profile Primary customers will be: A Korean and Japanese family who lives in Dallas and age range are twenty to seventy. Korean goods retailer who lives in out of Texas such as Ok, AR, and LA. Secondary customers will be: American customer who likes Korean and Japanese cuisine. Competitive Environment According to Yellow Pages, there are only 13 Korean restaurants and 88 Japanese restaurants In Dallas area. But, there are a few restaurants that serve Korean and Japanese dishes at the same time. So, we focus on Korean and Japanese restaurant at the same time, for as I do this, our restaurant can meet the customers needs, they want to eat Korean dishes and Japanese dishes in one place. This will allow for the creation of a great deal of customer awareness and brand loyalty, erecting significant barriers to entry for potential competitors. Here are our competitors. Korea House Gui Korean Japanese Bistro Bar Omi Korean Grill Bar Todamgol Direct Competitor Restaurant Name Menu Distance/Address Price range Korea House http://www.koreahousedallas.com/ Korean and Japanese cuisine Within 8 miles/ 2598 Royal Ln. Dallas, TX 75229 Korean dishes $12- $20 Japanese dishes $20- $90 Gui Korean Japanese Bistro Bar http://www.guirestaurant.com/ Korean and Japanese cuisine Within 15 miles/ 2719 McKinney Ave Dallas, TX 75204 $10 ~ $30 Indirect Competitor Restaurant Name Menu Distance Price range Omi Korean Grill Bar http://www.omikoreangrill.com/ Korean cuisine Within 0.1 miles/ 2625 Old Denton Rd Carrollton, TX 75011 $8 ~ $33 Todamgol Korean cuisine Within 0.1 miles/ 2625 Old Denton Rd., Ste. 310 Carrollton, TX 75007 $8 ~ $20 SWOT Analysis Price strategy Sushi Nara will be offered at the following prices.  Our Korean cuisine price is a little bit superior then our competitors price, but our Japanese cuisine price is inferior then our competitors price, for we use good ingredients for customers health. Korean Traditional Meal starts ten dollar to twenty dollar. Sushi starts fifteen dollar to twenty dollar. Sashimi starts twenty dollar to one hundred dollar. Korean traditional alcohols start nine dollar to fifteen dollar. We offer money back guarantee If customer who does not satisfied food quality. We will do re-dish or refund your money. We offer ten dollar gift card when you visit 10 times. Advertising and Promotion Strategy For the first year, Sushi Nara will use word of mouth advertising by meeting with friends and business associates on a regular basis. Promotion of Sushi Nara will also do by attending meetings and networking with the Korean Society of Dallas. Also we will advertise on three different types of Korean daily news papers, seven different types of Korean weekly news papers, and Korean social TV network. We will create our own commercial through Korean social broadcasting to attract the television viewers. We are also trying to expose our service placing flyers in local grocery stores and placing ads in the local newspaper to attract the readers. Once business gets going we will also be providing discount coupon and special offers when the customer chooses Sushi Nara. Adverting on Korean news paper and Korean social TV network Flyers Discount coupon Special offers (ex. birthday special) Market Penetration Strategy At Sushi Nara our main target market is reaching out to middle to upper income customers, Korean community, and who interested in healthy food about Korean and Japanese cuisine. Our service is affordable and convenient to our customer. Sushi Nara wants to make sure that we keep our pricing in the mid to upper range to attract customers. Keeping our price reasonable will create a higher profit margin for the service that we are providing along with attracting more potential customers. As the market is continuously changing, we will be adding a new menu to adapt market changing. We treat our customer like a family. 30% of our profit will be invested to improve our restaurants environment. We will use fresh product We will focus on quality We will use Original Korean/Japanese recipe (No modify) Facility Plan Facility Description The restaurant at 2625 Old Denton Rd. #200 Carrolton, TX 75007 is a 2400 Square foot space. It was formerly a restaurant and needs on minor structural modifications. The licenses and codes issues are all in order. New equipment and dining room furnishings will be purchased and installed by the general contractor. conveyor-belt sushi * 1 (10 people ) Table and four chairs * 8 (32 people) Table and eight chairs * 2 (16 people ) Total 58 seats available Used Commercial Stainless Steel 3027 Equipment Utility Stand Kitchen appliances Serving dishes Commercial Cooking Equip 36 Six Eye Range V36 OVEN Used Refrigerator Cooler Deep Fryers Japanese Cookware Japanese Kitchen Utensils Rice Cookers Sushi Display Case Teppanyaki Griddles Under counter Coolers x 1 Computer and Printer Used Ice Head Maker w/ Bin and Remote IRC830 Used McCann Coke Product 6 Head Soda Beverage Dispenser w/ Ice Bin Wine Buckets Stands x 10 Financial Plan Objectives We are expecting that sales of over $400,000 in first year. We are expecting that net profit over $100,000 in three year. Start-up Summary Sushi Nara has found the store location. Sushi Naras monthly rent cost is around $4,000 per month. We are expecting to set up the shop in time to begin turning back a profit by the end of month sixth and be profitable in the one year. The place which we selected is already surrounded by Korean shopping center, so there is a lot of customer traffic. So we plan to come up with a total of $90,000 in capital, plus a $100,000 guaranteed loan, to start up the restaurant. . Table: Start-up financial plan Sushi Nara Start-up financial plan Requirements Start-up Expenses Legal Form $3,000 Cleaning and Stationery $2,000 Other $1,500 Total Start-up Expenses $6,500 Start-up Assets Needed Cash Balance on Starting Date $88,500 Other Current Assets $100,000 Total Current Assets $188,500 Long-term Assets $0 Total Assets $188,500 Total Requirements $194,500 Funding Investment Investor 1 $90,000 Total Investment $90,000 Current Liabilities Accounts Payable $5,000 Current Liabilities $5,000 Long-term Liabilities $100,000 Total Liabilities $105,000 Loss at Start-up ($6,500) Total Capital $83,500 Total Capital and Liabilities $188,500 Sales Strategy Table: Sales Forecast Unit Sales 2011 2012 2013 Meals 28,080 33,000 38,000 Drinks 13,000 16,000 19,500 Other 310 450 700 Total Unit Sales 41,390 49,450 58,200 Unit Prices 2011 2012 2013 Meals $16.00 $16.00 $16.00 Drinks $2.00 $2.00 $2.00 Other $10.00 $10.00 $10.00 Sales 2011 2012 2013 Meals $449,280 $528,000 $608,000 Drinks $26,000 $32,000 $39,000 Other $3,100 $4,500 $7,000 Total Sales $478,380 $564,500 $654,000 Direct Unit Costs 2011 2012 2013 Meals $3.00 $3.00 $3.00 Drinks $0.60 $0.60 $0.60 Other $1.50 $1.50 $1.50 Direct Cost of Sales 2011 2012 2013 Meals $84,240 $99,000 $114,000 Drinks $7,800 $9,600 $11,700 Other $465 $675 $1,050 Subtotal Direct Cost of Sales $92,505 $109,275 $126.750 Human Resource Financial Plan Our restaurant will be consisting of seven peoples. As the Human resource financial plan table shows that each salary are considering inflation. Table: Human Resource Financial Pan Human Resource Financial Plan 2011 2012 2013 Director 60,000 61,000 62,000 Receptionist $42,000 $43,000 $44,000 Chef $54,000 $55,000 $56,000 Chef assist $30,000 $31,000 $32,000 Hall server $72,000 $75,000 $78,000 Other $14,000 $15,000 $16,000 Total People 7 7 7 Total Payroll $272,000 $280,000 $288,000 Break-even Analysis Sushi Naras break-even analysis is based on the average of the first financial year sales revenue for total product sales by meal and drink served, total cost of sales, and all operating expenses. Our total product sales are presented as per-unit revenue, per-unit cost, and fixed costs. We estimate that this break-even analysis numbers are not really the same as fixed cost, but these break-even analysis assumptions make for a better estimate of real risk. Table: Break-even Analysis Break-even Analysis (Monthly) Sushi Nara Sushi Nara Units Break-even Point 16,000 Sushi Nara Revenue Break-even Point $16,000 Sushi Nara Break-even point assumptions (Average) Unit Revenue $10.44 Unit Variable Cost $8.34 Estimated Monthly Fixed Cost $29,459 Projected Profit and Loss As the profit and loss table shows, we expect to become barely profitable in the second year of business, and to make an acceptable profit in the third year. Table: Pro Forma Profit and Loss Pro Forma Profit and Loss 2011 2012 2013 Sales $478,380 $564,500 $654,000 Direct Cost of Sales $92,505 $109,275 $126.750 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $92,505 $109,275 $126.750 Gross Margin $385,875 $455,225 $527,000 Gross Margin % 80.66% 80.64% 80.58% Expenses Payroll $272,000 $280,000 $288,000 Sales and Marketing and Other Expenses $15,000 $23,000 $33,000 Depreciation $1,000 $1,050 $1,103 Utilities $2,200 $2,260 $2,323 Payroll Taxes $41,300 $52,550 $60,500 Other $0 $0 $0 Total Operating Expenses $331,500 $358,860 $384,926 Profit Before Interest and Taxes 54,357 $96,365 $142,074 Interest Expense $10,000 $9,500 $8,250 Taxes Incurred $0 $6,890 $18,363 Net Profit $44,357 $79,975 $115,461 Net Profit/Sales 9.27% 14.16% 17.65% Projected Cash Flow The cash flow projection shows for three years Table: Pro Forma Cash Flow Pro Forma Cash Flow Cash Received 2011   2012   2013   Cash from Operations: Cash Sales $478,380 $564,500 $654,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $478,380 $564,500 $654,000 Additional Cash Received Non Operating (Other) Income $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $478,380 $564,500 $654,000 Expenditures Expenditures from Operations: Cash Spending $17,400 $19,800 $27,000 Payment of Accounts Payable $360,000 $410,000 $480,000 Subtotal Spent on Operations $377,400 $429,800 $507,000 Additional Cash Spent Non Operating (Other) Expense $3,500 $4,700 $6,800 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $500 $10,000 $15,000 Purchase Other Current Assets $0 $0 $0 Subtotal Cash Spent $381,400 $444,500 $528,000 Net Cash Flow $96,980 $120,000 $126,000 Cash Balance $185,480 $305,480 $431,480 Projected Balance Sheet The table shows projected balance sheet for three years. Table: Balance Sheet Pro Forma Balance Sheet Assets Current Assets 2011 2012 2013 Cash $185,480 $305,480 $431,480 Other Current Assets $100,000 $100,000 $100,000 Total Current Assets $285,480 $405,480 $531,480 Long-term Assets Long-term Assets $0 $0 $0 Accumulated Depreciation $1,000 $1,050 $1,103 Total Long-term Assets ($1,000) ($1,050) ($1,103) Total Assets $284,480 $404,430 $530,377 Liabilities and Capital 2011 2012 2013 Accounts Payable $35,000 $41,000 $53,000 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $35,000 $41,000 $53,000 Long-term Liabilities 100,000 $90,000 $75,000 Total Liabilities $135,000 $131,000 $128,000 Paid-in Capital $90,000 $90,000 $90,000 Retained Earnings ($15,123) ($45,000) ($50,000) Earnings $44,357 $79,975 $115,461 Total Capital $119,234 $124,975 $155,461 Total Liabilities and Capital $284,480 $404,430 $530,377 Net Worth $119,234 $124,975 $155,461