Business_Plan

Mom & Them’s Soul Food Restuarant Table of Contents Executive Summary Company Description Mission Statement Customers Services Market Analysis S.W.O.T Analysis Competition Marketing/Sales Plan Operations Financials Executive Summary Mom & Them’s is a single-unit small family restaurant. We focus on our homemade soul food. The restaurant will be located at 1835 E. 42nd Street in Minneapolis, MN and is owned my Anessa Brittain. The restaurant is in a high traffic area and experiences both residential and commercial traffic. We feel that we have a competitive advantage over our competition due to our varied menu, lower prices, and dine-in capability. No other soul food restaurant has been able to provide this combination of features for their customers. Due to our home theme we are also able to provide a fun dining experience for the whole family. Anessa Brittain and several family members will be involved in the restaurant. Anessa has a Business Management degree and an Accounting degree from Minnesota School of Business. Dante Suggs, also involved in the daily operations of the restaurant, has been a restaurant cook and manager. Prior to that he has worked in several restaurants owned by his family. Breeyana Brittain has managed several fast food establishments. Total capitalization will amount to $166,525, $25,000 of which will be contributed from the partners and the balances secured through a proposed bank loan. The successful rollout of Mom & Them’s will hopefully lead to an aggressive growth plan where contributing investment members will have the first right of refusal to participate in the expansion. In closing, we feel the business plan for Mom & Them’s represents a realistic expectation of success for all parties involved. Moreover, we will be providing a benefit to the community by providing a great product to community residents. Company Description Mom & Them’s is a full service restaurant specializing in soul food, fried chicken, macaroni and cheese, greens, fried cabbage, candied yams, and dressing. All food is homemade with a emphasis on quality and affordability. The restaurant offers dine in convenience seating 64 guests. Take out orders are accepted. There are many businesses in the area and we hope to include delivery service in the future. Mom & Them’s will operate as a Limited Liability Company registered in the State of Minnesota. The owner of the business is Anessa Brittain. Family members provide support and staffing. Principal among those is Anessa’s husband, Dante and daughter Breeyana. Capitalization The proposed restaurant will cost an estimated $166,525 to open. A detailed cost breakdown is provided in the Financial Projections section of this business plan. Funding for the venture will be provided by $65,000 in contributions from the partners and $100,525 in proceeds from bank financing. The proposed sources of funds are as follows: Source of Funds | Amount | Principal Partner | $ 40,000 | Managing Operating Partner | $ 25,000 | Bank Loan | $101,525 | Total | $166,525 | Mission Statement Mom & Them’s will provide high quality, freshly prepared food at affordable prices. Our décor will provide families with a fun atmosphere for a casual and comfortable dining experience. A staff sensitive to a busy lunchtime clientele as well as a more boisterous family dominated trade will provide friendly, courteous, and prompt service in the evening. Customers Mom & Them’s seeks to provide an enjoyable dining experience for lunch and dinner. Our prices are moderate providing an affordable lunchtime option for people employed in the area as well as for families who will visit us during dinnertime. Census data shows that 46.3 percent of the population within a three-mile radius of the restaurant is between the ages of 21 and 58 while 27.5 percent are under the age of fourteen. Families, therefore, account for a large portion of the population. The most popular occasions to eat out include Valentine’s Day, Mother’s Day and birthdays. More than 50 percent of all consumers visit a restaurant on their birthdays making this the most popular occasion to eat out. August is the most popular month to eat out, and Saturday is the most popular day of the week for dining out. There are many businesses in our area Employees from these businesses, we feel, will provide the base for our lunchtime business. Services Mom & Them’s will be a family owned soul food restaurant serving fried chicken, macaroni and cheese, greens, fried cabbage, candied yams, and dressing. The restaurant will offer dine-in, carryout, and hopefully soon delivery to the surrounding neighborhoods and area businesses. Customer satisfaction is the driving force behind our success. We will change our menu to add new items and take out items every four months, but maintain the ‘favorites’ for loyal patrons. Portions will be modestly sized, garnished with stunning presentation. Meal prices are expected to range from $6.00 to $10.00. The dining experience will be approximately 30 minutes. The dining atmosphere will be a family atmosphere with a variety of soft but subtle background music, designed to create a relaxing, laid back dining experience. Diner style tables will be surrounded by heavy wooden chairs and accompanied by leather-covered booths. Mom & Them’s will be open 7 days a week. The restaurant anticipates serving continuously during lunch and dinner meal periods. The expected hours of operation are as follows: | Lunch & Dinner | Monday | 11:00am – 10:00pm | Tuesday | 11:00am – 10:00pm | Wednesday | 11:00am – 10:00pm | Thursday | 11:00am – 10:00pm | Friday | 11:00am – 11:00pm | Saturday | 11:00am – 11:00pm | Sunday | 11:00am – 9:00pm | Market Analysis As mentioned previously our primary lunchtime traffic will be comprised of businesses in the area. They are numerous ranging from retail to service businesses. Local residents and families within a two to three-mile radius will make up the bulk of our dinnertime traffic. Because our restaurant gives a home like feeling the atmosphere will be conducive to family dining. The population is expected to grow over the next five years approximately 4%. This is a modest increase but one that we feel will sustain a healthy business. Positive Sales Increase Expected Positive economic indicators and hopeful increase in consumer’s disposable income give rise to expectation that 2012 will be slight but steady growth year for the industry, However, recent economic indicators give hope to positive economic growth and expectations are that the number of restaurants in 2011 could reach 1 million locations by year 2012. Likewise, 2011 could turn out to be a good year for the industry. Flourishing economic growth, changing lifestyles and a diverse ethnic population have contributed to the variety of cuisine and restaurant concepts, making the U.S. a world leader in restaurant innovation. Ethnic cuisines have mingled with traditional restaurant fare resulting in varied menus at every industry segment. Meeting Challenges In addition to labor concerns, operators report that rising energy costs, healthcare insurance and liability insurance costs, and wholesale cost have negative impacts on their business. As a result, the National Restaurant Association (NRA) has added these issues as part of their public agenda. They have pledged to take an active role in affecting commodity prices and trade and support current legislation for healthcare reform. They also support an effective energy policy and are in favor of legal reform to reduce frivolous lawsuits against the industry SWOT Analysis Strengths * Our prices are cheaper than our competitors * We have a good choice of items available on our menu * Our restaurant exterior is clean and tidy * We offer a take-away option for your customers | Weaknesses * Our restaurant is new and not established * We have limited funds available * We offer a product already available on the market * Our restaurant has poor disabled facilities | Opportunities * Increasing sales opportunities in delivery business * A main competitor has closed down | Threats * Soul food restaurant chains found in other markets coming to Minneapolis * A slump in the economy reducing customers’ disposable income spent on eating out | Marketing Plan Overview The success of Mom & Them’s will be achieved by serving great food, providing friendly service. In today’s market it takes more than great food and service to make a restaurant successful. At Mom & Them’s we strive to win more customers by being proactive in our marketing efforts. Mailer Campaign Mom & Them’s will further take advantage by creating a customer database to implement a direct mail strategy. This strategy includes promotions such as sending birthday cards to our guests and providing information on promotions. Business Relationships Mom & Them’s will obtain favorable benefits from business relationships. Our appeal as an inexpensive, quick service restaurant that is a likely destination for workers during lunchtime Advertising The restaurant will assume a moderate advertising strategy. Outdoor signage for Mom & Them’s dependent upon the restriction of the leased space. Operations Overview Management will establish sound operating guidelines by which to conduct the day-to-day operations for Mom & Them’s. Policies, systems and procedures will be documented using the resources and experience of the management team. Daily Operations & Production The menu has been created in a manner to allow preparation of many recipe ingredients to be done ahead of time. Proper labeling and rotation techniques, accompanied by ample storage facilities will ensure that high quality prepared product will be sufficiently available to meet the demands during peak business hours. Replenishment and ongoing preparation will continue during peak business hours. Management will be responsible for ordering, receiving and maintaining sufficient inventory to meet production demands. Ordering schedules will be staggered with perishable products being ordered multiple times per week to preserve freshness. Standard grocery and supply orders will be ordered less often, according to a predetermined schedule and storage capacity. Management will adopt the use of operational checklist to verify that each work has been properly prepared for and to insure the operational standards are followed before, during and after work shifts. The counter service style of Mom & Them’s easily accommodates both takeout and dine-in. The modest size of the dining room will create a cozy atmosphere for guests while maintaining the simplicity of the counter service style of service. The restaurant layout, including the dining room, kitchen and serving line, has been redesigned for efficiency and flexibility to accommodate the fluctuation in customer traffic and peak meal periods. Financials Project Sources & Uses of Cash Mom & Them’s Projected Sources & Uses of Cash Development & Startup period SOURCES OF CASH: Equity Contribution $65,000 Loan Financing $101,525 TOTAL SOURCES OF CASH $ 166,525 USES OF CASH: Land & Building 0 Leasehold Improvements 40,000 Bar/Kitchen Equipment 50,000 Bar/Dining Room Furniture 3,000 Professional Services 2,500 Organizational & Development 9,750 Interior Finishes & Equipment 8,375 Exterior Finishes & Equipment 3,000 Pre-Opening Expenses 19,900 Working Capital & Contingency 30,000 TOTAL USES OF CASH $166,525 Estimated Start-Up Cash Needs Item | Cash Need | Working Capital | $30,000 | Pre-Opening Expenses | $19,900 | Exterior Finishes & Equipment | $3,000 | Interior Finishes & Equipment | $8,375 | Organizational & Development | $9,750 | Professional Services | $2,500 | Kitchen Equipment | $50,000 | Dining Room Furniture | $3,000 | Leasehold Improvements | $40,000 | Mom & Them’s Weekly Sales Projection Number of Seats 64 | Counter | | | | # of Customers | Total Sales | % of Week Sales | Monday | 150 | $1,245 | 11.6% | Tuesday | 160 | $1,328 | 12.4% | Wednesday | 180 | $1,493 | 13.9% | Thursday | 180 | $1,493 | 13.9% | Friday | 210 | $1,755 | 16.4% | Saturday | 205 | $1,718 | 16.0% | Sunday | 170 | $1,380 | 12.9% | WEEK TOTALS | 1,255 | $10,410 | | Sales Mix% 100%