Pizza Take Out Business Plan PDF

BUSINESS
PLAN
Fast Food & Pizza Takeout

The Town, (Quebec)
Aboriginal Entrepreneur
1-800-568-2148
TABLE OF CONTENTS
Description of the Venture: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Operational Plan, Production, Buying Plan: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Management Team: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Strengths: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Weaknesses: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Employees: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Market Size: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Typical Customer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Competition: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Marketing Plan: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Potential Market: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Pricing: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Capital Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Office Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
5
5
5
Project Program of Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Project Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Pro Forma Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Three Year Pro Forma Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Three Year Pro Forma Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Underlying Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Appendices
Ratios
Loan Amortisation
Population Statistics
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Pizza & Fast Food Takeout
Business Plan
Description of the Venture:

Sarahs Fast Food & Pizza Takeout will be a fast-food take-out
restaurant to be located in The Town, Quebec, a community of 3200
located north of Montreal on the James Bay Highway. It will cater to
both the local population and visitors as a convenient place to pick up
a meal or a snack. Delivery will add to the convenience and Sahrahs
Fast Food & Pizza Takeout will cater to special events such as sports
and community activities. Among our offerings will be Pizza, french
fries, hamburgers and hot dogs and subs. A full range of standard
beverages such as coffee, milk, soft drinks and juices will be also be
available. It is our intention to build a small building 20 X 15. Our
carefully prepared site-plan will include beautification and it will
provide lots of parking as well as an area for outside tables.
Operational Plan, Production, Buying Plan:
Sahrahs Fast Food & Pizza Takeout will be open daily between ten
in the morning to after midnight, with the actual daily and week-end
hours of operation adjusted to match local activities such as Bingo
and sports events. Our food products will be purchased from Val
dOr from Provigo or Ben Dehais. We see no major problems in
assuring our source of supply to be adequate, good quality and
competitively priced. We do not have any special transportation
problems with the exception of weather as we are not an isolated
community.
The Management Team:
The management of the operation will be the responsibility of the
owner Sahra who will assure that the business maintains regular
hours and is adequately staffed. As well, she will be responsible for
cash control, inventory and the quality of customer service. In the first
year of operation, Sahra will also be directly working in the
establishment evenings and weekends.
Strengths:
- excellent sales skills
- good communication skills
Weaknesses:
- record keeping
Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com
Page
Business Plan
Employees:
We foresee no difficulty in hiring good employees. There are many
members of the community who have experience in the hospitality
and food services business. We also plan to have regular training
sessions for our employees in all facets of the food business on a
continuous basis through the assistance of the CLMB.
Market Size:
Our market area will be the community of The Town. We will also
serve visitors attracted through local events. In the summer time we
will also cater to the tourist traffic coming to our community.
Tourism is on the increase in our part of Quebec as there are more
travellers exploring the James Bay district. We expect that over the
next two to three years the market will increase, especially with the
community being more open to visitors and business opportunities.
Internally the community itself is growing with more band members
making it their home. There is also a greater demand for services.
Typical Customer:
Our typical customer will come from the community but in particular
the younger customer looking for a place to go to with their friends
for a fast meal or a snack. We will also cater to the late evening needs
of the younger population of The Town (60%) such as after sporting
events, parties and get-togethers. About half of the community is
male between adolescence and middle adult hood and they are active
in sports. Fast foods are most popular with this market segment. Our
take out as well as home delivery will also be popular with busy
homemakers who dont always have time to prepare meals or who
want a change and a rest from the chores of cooking.
Competition:
Other Restaurant
It is open from 8 a.m. to 8. p.m. catering breakfasts as well as full
course, sit-down meals. They also have pizza take out and delivery.
Sub Zero
Located in the Arena they sell sandwiches and subs.
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Business Plan
3 Chip Stand
Offering hamburgers, fries, chips, snacks and occasional meals. They
are located in the west, east and north side of town.
Only The Other represents represent any year round real competition
in pizza delivery. It is our estimation that there is enough room for
both establishments. We believe that our concentration on customer
service and in meeting their need for fast and consentient good quality
food will give us an edge.
Marketing Plan:
We will put up signage on the highway coming in to town to let
travellers know that we are have pizza and fast food delivery. As well
we will be sending out flyers of our menu and of our specials to the
community through the local post office on a regular bases. We will
constantly make people aware of all of the choices they will have and
we will advertise special events offering special deals.
Potential Market:
Annual Family Restaurant Expenditures $1,400 x 800 =
$1,120,000.00. (source: family expenditures in Canada, Statistics
Canada, p.86) In our estimate this is low as native communities are
into fast foods at probably a 40% higher rate than the rest of the
country. We could bring the sales up by an additional $450,000.00.
This would bring us to an expenditure of some $1,570,000.00. The
Mitchuap restaurant alone had an annual volume of $1,000,000.00.
There Pizza sales are some 300 pizzas a week at an average price of
12.00 = 3,600.00 x 52 = 187,200.00. Overall sales with the
establishment of Sarahs should increase by 30% just because of
greater choice. We estimate that our market share should be 50% in
this area alone. Total pizza potential = $120,000.00. Mitchuap
reports that there sales in poutine and fast food exceeds pizza sales by
three = some 360,000.00.. We would estimate with the present
competition our market share to be about 20% = 72,000.00.
We thus estimate our average market share will be:
$192,000
Pricing:
Our main pricing strategy will be to be competitive with other
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Business Plan
establishments. In this way we believe that we will maintain a loyal

clientele.
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Business Plan
CAPITAL REQUIREMENTS
BUILDING
Price
Building
25,000.00
Counters and Cabinets & Shelving
3,000.00
Total
KITCHEN EQUIPMENT
28,000.00
Price
Fryer
1,400.00
Charbroiler
1,200.00
Two door cooler
3,000.00
Freezer
500.00
Air ventilator
2,000.00
Microwave
500.00
Coffee maker
200.00
Pizza Oven
5,000.00
Potato cutter
200
Total
OFFICE EQUIPMENT
Computer & Printer
$14,000.00
PRICE
$2,500.00
Telephone
$200.00
Point of Sale Software
$300.00
Total
$3,000.00
Page
PROJECT PROGRAM OF FINANCING

Project Costs
Building
28,000.00
Equipment
14,000.00
Office Equipment
3,000.00
Inventory
2,000.00
Working Capital
3,000.00
Total Project Costs
50,000.00
Project Financing
ABC Grant
Owners Investment
EEG Youth Initiative
Line of Credit
Total Project Financing
25,000.00
5,000.00
15,000.00
5,000.00
50,000.00
Financials
Business Plan
Fast Food & Pizza Takeout

Three Year Pro Forma Balance Sheet
For Each Year Ending
Start
Year 1
Year 2
Year 3
ASSETS
Current Assets
Cash and Investments
3,000.00
27,100.00
50,550.00
78,518.00
Inventory
2,000.00
3,000.00
4,000.00
5,000.00
5,000.00
30,100.00
54,550.00
83,518.00
Equipment
17,000.00
17,000.00
17,000.00
17,000.00
Building
28,000.00
28,000.00
28,000.00
28,000.00
45,000.00
45,000.00
45,000.00
45,000.00
Current Depreciation
0.00
4,400.00
4,400.00
4,400.00
Cumulative Depreciation
0.00
4,400.00
8,800.00
13,200.00
Net Fixed Assets
45,000.00
40,600.00
36,200.00
31,800.00
TOTAL ASSETS
50,000.00
70,700.00
90,750.00
115,318.00
5,000.00
5,000.00
Total Current
Fixed Assets
Total Fixed Assets
LIABILITIES
Current Liabilities
Credit Line
Current Portion of L.T. Debt
Total Cur Liab.
4,990.00
5,000.00
5,000.00
0.00
4,990.00
15,000.00
15,000.00
15,000.00
5,378.00
Total Long Term
15,000.00
15,000.00
15,000.00
5,378.00
Total Liabilities
20,000.00
20,000.00
15,000.00
10,368.00
Current Net Income
20,700.00
25,050.00
29,200.00
Cumm. Retained earnings
20,700.00
45,750.00
74,950.00
Long Term
EE Group Youth Initiative
EQUITY
Grant & Owners
30,000.00
TOTAL EQUITY
30,000.00
50,700.00
75,750.00
104,950.00
TOTAL LIABILITIES AND EQUITY
50,000.00
70,700.00
90,750.00
115,318.00
Sarahs Fast Food & Pizza Takeout Restaurant

Page
Business Plan
The Town, Quebec

Three Year Pro Forma Income Statement
Year 1
Sales
200,000.00
210,000.00
57,600.00
60,000.00
63,000.00
134,400.00
140,000.00
147,000.00
2,800.00
1,000.00
1,000.00
600.00
600.00
600.00
Depreciation
4,400.00
4,400.00
4,400.00
Insurance
2,000.00
2,000.00
2,000.00
Interest
200.00
200.00
1,000.00
Licences
300.00
300.00
300.00
Office Expenses
600.00
650.00
700.00
5,000.00
5,000.00
5,000.00
800.00
800.00
800.00
Utilities
12,000.00
12,000.00
12,000.00
Wages and Benefits
60,000.00
63,000.00
65,000.00
Owners Wages
25,000.00
25,000.00
25,000.00
113,700.00
114,950.00
117,800.00
20,700.00
25,050.00
29,200.00
Gross Income
Advertising
Bank Charges
Professional Fees
Telephone
Total Expenses
Net Income
Year 3
192,000.00
Cost of Goods Sold
Expenses
Year 2
Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com Page
10
Business Plan
Fast Food & Pizza Takeout Restaurant

Three Year Pro Forma
Cash Flow Statement
Start
Year 1
Year 2
Year 3
Cash In
Opening Balance
Sales
Line of Credit
5,000.00
Owners
5,000.00
Eeyou
15,000.00
Grant
25,000.00
Total Cash In
50,000.00
3,000.00
27,100.00
50,550.00
192,000.00
200,000.00
210,000.00
195,000.00
227,100.00
260,550.00
57,600.00
60,000.00
63,000.00
109,300.00
110,550.00
113,400.00
1,000.00
1,000.00
1,000.00
5,000.00
4,632.00
Cash Out
Cost of Goods
Expenses
Inventory
Capital Items
2,000.00
45,000.00
Loan Principal
Total Cash Out
Closing Balance
47,000.00
167,900.00
176,550.00
182,032.00
3,000.00
27,100.00
50,550.00
78,518.00
11
Business Plan
Underlying Assumptions
Sales: Annual Family Restaurant Expenditures $1,400 x 800 = $1,120,000.00. (source: family
expenditures in Canada, Statistics Canada, p.86) In our estimate this is low as native
communities are into fast foods at probably a 40% higher rate than the rest of the country. We
could bring the sales up by an additional $450,000.00. This would bring us to an expenditure of
some $1,570,000.00. The Mitchuap restaurant alone had an annual volume of $1,000,000.00.
There Pizza sales are some 300 pizzas a week at an average price of 12.00 = 3,600.00 x 52 =
187,200.00. Overall sales with the establishment of Sarahs should increase by 30% just because
of greater choice. We estimate that our market share should be 50% in this area alone. Total
pizza potential = $120,000.00. Mitchuap reports that there sales in poutine and fast food exceeds
pizza sales by three = some 360,000.00.. We would estimate with the present competition our
market share to be about 20% = 72,000.00.
We thus estimate our average market share will be:
$192,000.
Cost of goods sold: Fast food industry cost of goods range widely from below 25% to above
35%. The food mix in this plan includes the Chester Chicken costs and an average cost of goods
sold of 30% was used.
Wages: With seven days a week operation and double staff coverage over the supper hours it
was determined that four (4) full time equivalent staff are needed. The average hourly rate was
calculated at $8.00 plus a 15% overhead for UIC, CPP and benefits was added.
Average 13 hours of operation per day plus prep time = 15.0 hr./day
105 hrs./week
Double coverage supper hours
= 4.0 hr./day
28 hrs./week
Extra coverage for special events and busy periods
25 hrs./week
Total hours per week:
158 hrs./week
Total hours per year:
8,216 hours
/year
Total wages = 8,216 hrs. @ $8.00 = $65,728 plus 15% overhead of $9,859 = total $75,567
Owners Time & Wages: The owner will provide some of the staffing coverage, especially
during the first year for which between 16 and 24 hours a week was budgeted. (20 x 52 x $8.00 x
115% = $11,960) and we added the additional to $25,000.00
Depreciation: We are using life cycle as the bases for depreciation as Sarah is not in a taxable
situation as a sole owner. Building 28,000.00 over 20 years = 1,400.00. Equipment 14,000.00
over 7 years = 2,000.00. Office Equipment 3,000.00 over 3 years = 1,000.00. Total annual
depreciation = 4,400.00.
Loan Interest: The EEG was amortized over three (3) years using an 8% interest rate, calculated
12
Business Plan
semi-annually. (See amortization tables in appendix)

Bank Charges: A monthly service fee was calculated as well as interest on a revolving line of
credit.
Other : The remainder of the expenses were calculated based on industry standards and
prevailing costs and rates.
Cash and Investments: For the purposes of the Business Plan, surplus cash was deemed to be
invested instead of paying down liabilities. The cash position developed after the second year
indicates that even with the conservative market share sales assumptions, there is some additional
flexibility in the plan, should business develop slower than anticipated.
Advertizing in the 1st year is 2,800.00 of which 1,800.00 is for a road sign on the way into The
Town. The balance is for post office costs
13
Current Ratio
Current Assets
30100
Current Liabilities
5000
6.02
Comments: The current ratio is used to measure liquidity or ability to meet short-term debts without difficulty. The rule of thumb is that there be
$2.00 or more of current assets for each dollar of current liabilities. If this ratio is to high it may be that there is too much money tied up in
working capital that is not earning a profit.
Quick Ratio
Cash +Rec
27100
=
Current Liabilities
5.42
5000
Comments: Since there are some not very liquid assets included in the calculation of the current ratio, lenders frequently like to calculate the
quick or acid test ratio. The acid test ratio has its numerator on the cash and accounts receivable. Lenders under normal circum-stances, like to
see this ratio at 1 to 1 or higher.
Total Liabilities to Total Equity Ratio

Total Liabilities
20,000
Total Owner's Equity
50700
0.39
Comments: The total assets of a business can be financed by either liabilities(debt) or equity. The total liabilities to total
equity ratio illustrates the relationship between these two forms of financing. This ratio shows that for every $1.00 of equity
the lenders have lent $ .39. While creditors prefer not to have the debt to equity ratio to high, you will often find it more
profitable to have it as high as possible. A high debt to equity ratio is known as having high leverage, or trading on the
equity.
Return on Assets
Profit Before Interest
20500
Total Assets
70700
0.29
Comments: Lenders like to calculate the return on assets. This result can then be compared with current interest rates on
borrowed money.
Net Profit to Assets

Net Profit
20700
Total Assets
70700
0.29
Business Plan
APPENDICES
15

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BUSINESS

Fast Food & Pizza Takeout

Project Program of Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Pizza & Fast Food Takeout

Description of the Venture:

Pizza & Fast Food Takeout

Pizza & Fast Food Takeout

Pizza & Fast Food Takeout

establishments. In this way we believe that we will maintain a loyal

Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com

Pizza & Fast Food Takeout

Counters and Cabinets & Shelving

Two door cooler

Point of Sale Software

Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com

PROJECT PROGRAM OF FINANCING

Total Project Costs

Pizza & Fast Food Takeout

Fast Food & Pizza Takeout

Cash and Investments

Net Fixed Assets

Total Fixed Assets

Total Cur Liab.

Total Long Term

Current Net Income

Cumm. Retained earnings

EE Group Youth Initiative

TOTAL LIABILITIES AND EQUITY

Sarahs Fast Food & Pizza Takeout Restaurant

Pizza & Fast Food Takeout

The Town, Quebec

Wages and Benefits

Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com Page

Pizza & Fast Food Takeout

Fast Food & Pizza Takeout Restaurant

Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com Page

Pizza & Fast Food Takeout

Pizza & Fast Food Takeout

semi-annually. (See amortization tables in appendix)

Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com Page

Total Liabilities to Total Equity Ratio

Total Owner's Equity

Net Profit to Assets

Pizza & Fast Food Takeout

Aboriginal Entrepreneur 1-800-568-2148 www.ab-entre.com Page

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