Business Plan

(Restaurant Name)

Executives summary:

The (Restaurant Name) will be a moderately priced 100 seat restaurant

offering family style food and service. (Something from The Menu) are all on
the menu. The restaurant will be owned and operated by (Owner/s Name).
The (Owner/s Name) will be leasing a 3,400 square foot space located at
(Restaurant Location). Although the location was previously utilized as a
restaurant, the former tenant removed the majority of the furniture, fixtures
and equipment which will need to be replaced. The location will also require
some additional renovation to update the lavatories and increase table space
in the dining area. The dcor will feature wood accented chairs with blue and
white checked table cloths. Dinner style tables will be surrounded by wooden
chairs with comfortable seating cushions. Sales projections assume 700
customers per week resulting in weekly sales of just over $19,777, or
$128,000 annually. This equates to around $302 per square foot in sales
annually which positions (Restaurant Name) as a highly desirable concept for
ownership in a table service market where $200 to $325 per square foot is
considered moderately profitable and therefore a good investment. Total
startup costs will be $400,000, $200,000 of which will be contributed by the
owners and the remainder will be secured by a proposed bank loan.

Business objectives

The primary objectives of the business plan for Restaurant are below:
To be the premier home-style restaurant in (city name)
To provide quality meals at reasonable prices with exemplary service
Achieve Cover ratios of 1.00X at each lunch and dinner serving
To achieve Prime Cost Ratios lower than 65%
 Mission statement

Our Mission is to provide a unique and relaxing dining experience similar to

dining at home. We will strive to achieve this goal by: 1) by providing menu
items incorporating quality ingredients at reasonable prices, and 2) we will
be mindful of the well-being of our customers and staff treating each and
every one with dignity and respect just like we would at our own home!

Guiding Principles
Being Mindful of our Customers and our Staf Coinciding with our
family values, we will treat both our customers and staff in a manner in
which we ourselves would want to be treated (or better!)

Gratitude An attitude of gratitude shown to our customers,

employees and vendors because without their input, service, labor
and time, our business would not be here without them!

Our Service Provide the warm and friendly service expected from a
family-style restaurant creating an informal, comfortable environment
which will make the customers satisfied and want to return again and
again.

Keys to Success
Repeat business: Every customer who comes in once should want to
return, and recommend us. Wordofmouth marketing is a powerful ally

Hire top notch chefs and offer training to keep the chef on top of
his/her game, and pay top wages to ensure they stay with us.

Location: Convenience is essential to us; we need to be close to our

market because we are not trying to get people to travel to reach us.

A variety of menu offerings with a down home theme, reasonably

priced to establish credibility, but not so high as to limit customers
Company description:

The (Restaurant Name) will be located (Restaurant Location). The restaurant

will be wholly owned and operated by (Restaurant Manager\s Name). The
restaurant will serve a variety of classic (Something from The Menu)

The restaurant will be open 7 days a week with hours as follows:

Monday According to the task

Tuesday According to the task

Wednesday According to the task

Thursday According to the task

Friday According to the task

Saturday According to the task

Sunday According to the task

Ownership

The restaurant will be owned by (Owner Name). (Owner Name) began his
restaurant career at the age of 15 working in a quick-service foodservice
operation and earned his way through college as a server and bartender.
After earning his degree, he worked for a regional restaurant chain and an
independent fine dining restaurant. In these organizations he held the
positions of Assistant Manager and then General Manager. (Other Owner
Name) received her Culinary Degree from the Art Institute in Dallas. After
graduation she was employed by a local chain restaurant and then at a Five
Star Hotel in Dallas. (Other Owner Name) will be employed as the Kitchen
Manager. With the high turnover of help for startup restaurants, we will rely
on family to fill in where required until we are off the ground and making a
profit.

Legal forms

(Restaurant Name) will be organized as a (Ownership), wholly owned and

operated by (Owner/s Name) (Restaurant Name). (Restaurant Name) is
registered in the (City Name) a community property state.

Start-Up Summary
The cost to open the restaurant is (AS THE TASK SAY $). The majority of the
expenses are in furniture fixtures and equipment totally (AS THE TASK SAY
$). The location requires some build-out and renovation totally (AS THE TASK
SAY $) and will require approximately 30 days to complete. The Wrights will
sub-contract the work themselves. (AS THE TASK SAY $) of the start-up costs
will be funded by the owners. The owners source of funds is a combination
of liquid assets and marketable securities, primarily from their existing
catering business.

Location and facilities

The 3,400 square foot restaurant will be located in a (City Name), a retail
strip center located in the (Location Street Name). The restaurant is located
in a major traffic area, has a population of over 51,000. The residential
population in the immediate area is comprised of a mixture of single family
and multi-family housing.

Operation management:

Daily operations and production

(Restaurant Name) will be open 7 days a week for lunch and dinner requiring
multiple shifts. (Owner Name) will write the schedules. The schedules will be
written in a manner that will allow the ability to increase or decrease hourly
labor according to sales volume in order to maintain a consistent labor cost
control.

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. Renewing and
ongoing preparation will continue during off peak business hours.

(Owner Name) 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.

(Owner Name) will rely on operational checklists to verify that each work
shift has been properly prepared for and to insure the operational standards
are followed before, during and after work shifts.

The restaurant layout, including the dining room, kitchen and serving line,
has been designed for efficiency and flexibility to accommodate the
fluctuation in customer traffic and peak meal periods.

Upon arrival, guests will be greeted immediately by either the assistant

manager or a server and asked for the seating preference. Drink orders will
be taken and guests can munch on our complimentary rolls. Once the
customers order is taken, the order will automatically be printed to a
requisition printer located in the grill area. The grill cook will use the printed
ticket to keep track of orders and place the meal under the heating lamps
until the order is complete. The kitchen preparation line has been designed
to be operated by a minimum staff of 1-line cook and a maximum of 4 cooks.
This design allows line staffing to be adjusted to the business volume. Shift
changes for all staff will involve cleanup, restocking and preparation. All
monies will be settled at the end of each shift. The closing shift will involve
designated closing duties that will leave the restaurant clean and fully
prepared for the next day.

Competitive comparisons

Local competitors within a five-mile radius are as follows.

Hedarys Restaurant - This is a full service family restaurant established

in 1977. The 5,000 SF restaurant run as a sole proprietorship, has 17
employees and generates $1.7 million in revenue annually. Prices are
higher than (Restaurant Name) and range from $8.00-$20 per entre.

Applebees - this is a chain restaurant offering standard fare. The food

quality is average. Entres range from $6.99 - $20.

Chilis this is a chain restaurant also offering standard fare. Food

choices are varied and prices range for $8-$21.
 Barbeque Bens This is sole proprietorship offering primarily
barbeque item. Although the food offering does not compete directly
with the subject, the restaurant targets the same neighborhood
families and has been operating at the single location since 1978.
Entre range from $8.99-$12

Cracker Barrel located along Interstate 30, the restaurant is not

located within the target market area. However due to its menu
offering of home comfort food, the restaurant attracts a similar market,
although Cracker Barrels attract the tourist business as well. Entres
range in price from $7.99-$14.

Suppliers

Because of their years of experience combined with their existing catering

business, (Owner/s Name) have established relationships with qualified
suppliers. These suppliers can provide reasonably priced products, delivered
according to the schedule.

Management control

The (Owner/s Name) will practice sound management procedures in order to

control costs, insure quality of product and provide friendly customer service.
The following systems will be used by management:

Order Guide: The restaurant will use an item specific order guide to track
order history and maintain designated levels of product in inventory.
Weekly Inventory: Management will conduct a weekly inventory to determine
valuation for use in the preparation of weekly profit and loss reports.

Daily Inventory Tracking: Daily inventory will be taken on specific items.

Movement will be compared to sales data to ensure designated products
have been properly accounted for.

Market analysis:

The restaurant industry is a large and diverse business: Restaurant-industry

sales are forecast to reach $580.1 billion in 2017 an increase of 2.5 percent
over 2016. Restaurant-industry sales are projected to total $604 billion in
2018 and equal 4 percent of the KSA gross domestic product. The overall
economic impact of the restaurant industry is expected to exceed $1.7
trillion in 2018. On a typical day in (city Name) in 2017, more than 130
million people will be foodservice patrons. Sales at full service restaurants
reached $184.2 billion in 2017. Sales at limited service restaurants increased
to $164.8 billion in 2017.

Market size

The KSA restaurant industry includes about 480,000 restaurants with

combined annual revenue of about $400 billion.

Main competitors

The following restaurants are located within a five-mile radius of THR:

 Hedarys Restaurant - This is a full service family restaurant established
in 1977. The 5,000 SF restaurant run as a sole proprietorship, has 17
employees and generates $1.7 million in revenue annually. Prices are
higher than (Restaurant Name) and range from $8.00-$20 per entre.

Applebees - This is a chain restaurant offering standard fare. The food

quality is average. Entres range from $6.99 - $20.

Chilis This is a chain restaurant also offering standard fare. Food

choices are varied and prices range for $8-$21.

Barbeque Bens This is sole proprietorship offering primarily

barbeque item. Although the food offering does not compete directly
with the subject, the restaurant targets the same neighborhood
families and has been operating at the single location since 1978.
Entre range from $8.99-$12.

Cracker Barrel Located along Interstate 30, the restaurant is not

located within the target market area. However due to its menu
offering of home comfort food, the restaurant attracts a similar market,
although Cracker Barrels attract the tourist business as well. Entres
range in price from $7.99- $14.

Market segments

Demographic: Our target is Customers are people that dine in by

themselves and Families such as a group of people, either friends or a group
of relatives dining together.

Behavioral: We are looking for hungry consumers who have a full and tired
day looking for good food and a beautiful atmosphere with their children or
friends who want excellence and uniqueness by high standards.

Psychographic: people realize that good meal with family or friends is

supposed to make them feel better. the restaurant environment might
improve the customer's mood. In that sense, people always looking for the
best meal possible.

Geographic: this is our first branch. Its located in (Restaurant Location). We

chose this location because there isnt any high-quality restaurant over
there. Customers can come to our restaurant when they have a break and
after employee finish their work, so they can save their time instead of going
too far restaurants and enjoy eating a delicious food and tasty drinks.

Market growth

The (Location) area is in great need of a family style restaurant. The

selection of fast food is large however; the area is limited on its family
restaurant choices. (Restaurant Name) nearest competitor, the (Near
Restaurant To May Restaurant As A Competitor) Restaurant is located over 5
miles away from the location. Further, established in the 1970s the (The
Competitor Restaurant Name) Restaurants customers are older than the
targeted family group (My Restaurant Name) focuses on.

Market Trends

According to the National Restaurant Association, the top 10 trends for are:
locally sourced meats and seafood.
locally grown produce
sustainability as a culinary theme.
nutritious kids dishes.
hyper-local items.
childrens nutrition as a culinary theme.
sustainable seafood.
gluten-free allergy conscious items.
back to basics cuisine.
farm brand ingredients.

Marketing strategy and implementation:

(Restaurant Name) will position itself as the premier home-style restaurant in
the (City Name). We will do this by providing quality home style meals,
prepared with quality ingredients at a reasonable price. Customers will enjoy
the quaint surroundings inside with the wood tables and checkered table
cloths. Our restaurant will provide a relaxed atmosphere and when
customers walk in they will be greeted by warm smiles and greeted just as
they were arriving home.

Our customers will enjoy our standard menu fare, along with seasonal menus
so that we can better take advantage of cost savings and stay current with
some of the food industry trends.

At (Restaurant Name) we plan to be the premier restaurant to work for as

well. We believe that the restaurant industry is a great place to begin ones
career or pursue full-time. In fact, according to the Restaurant Association,
nearly half of all adults have worked in the restaurant industry at some point
during their lives, and more than one out of four adults got their first job
experience in a restaurant. At (Restaurant Name) we believe that our
restaurant will provide job opportunities both for the entry level applicant
was well as for the part-time worker searching for flexibly in job hours. We
will pay our employees a competitive salary and believe we can do so by
meticulously keeping our records, including daily review of the Prime Cost
Report, and utilize Cost Accounting Systems, to prevent inventory shortfalls.
We will be proactive with our employees by scheduling regular performance
reviews, and provide bonuses and other incentives to motivate our staff. We
will also provide our employees with the most current training programs
regarding safe food handling, and worker protection.

(Restaurant Name) will also remain current with current industry marketing
tends. In addition to a website with our menu, map and driving directions, we
will also have a Facebook page and utilize other social media such as Twitter.
We will offer a loyalty club and birthday club which recent reports indicate
increases earnings as much as 15%.

SWOT analysis
Strengths
Prime location with easy access.
Exceptional staff with the can do attitude.
Due to our small size, we believe we can provide exceptional quality by
hand selecting our market specials when compared to our larger
corporate competitors.
The same concept holds true in our staffing requirements, by hand
selecting our employees we will strive to offer unsurpassed service
when compared to our larger competitors.

Weaknesses
Recruiting and retaining quality employees.
Tight margins will allow little wiggle room for error.

Opportunities
Little barriers to entry allows for immediate business opportunities.
Offer additional catering services.

Threats
Government mandates (restaurant operation, food safety, and worker
protection at the legal level and health, sanitation, safety, fire at the
local level).
Rising operating costs.
Building/maintaining sales volume

4P's

Products: Restaurant is primarily known for its lunch meal. Customers can
purchase other popular products like (Something in The Menu) meals. This
element of restaurant marketing mix indicates that the firm innovates new
products to attract more customers.
Promotion: We will post posters in the main streets. We also make
brochures and business cards. The restaurant promotes its products to
attract more customers. This element of the marketing mix defines the
approaches used to communicate with the customers. The restaurant uses
the following tactics in its promotional mix:

Advertising, Sales promotions, Public relations, word of mouth and Direct

selling. Restaurant advertisements are the most notable among its
promotion tactics. The Restaurant uses its own website and online media for
its advertisements. Also, uses sales promotions to draw more customers to
its restaurants. Restaurant public relations activities help promote the
business to the target market. The restaurant uses direct selling, such as for
corporate clientele, local government or community events, and parties. In
this element of its marketing mix, the restaurant emphasizes advertising as
its main approach to promote its products.

Price: The price is suitable for all different social classes. The restaurant
pricing strategy involves price bundling combined with psychological pricing.
In price bundling, the restaurant offers meals and other product bundles for a
discount. In psychological pricing, the restaurant uses prices that appear to
be significantly more affordable. This element of the restaurant marketing
mix highlights the importance of price bundling to encourage customers to
buy more products.

Place: Its located in Alsalmania Street beside King Abdul-Aziz University

(restaurant location). A vital business location full of business offices,
buildings and there are three schools. the restaurant will be distributed
through a takeout delivery model where customers can call in their order and
come to the restaurant to pick it up, come into the restaurant, place the take
out order and wait for it to be completed, or come in and dine at the
restaurant.

Website

We will stay current with industry trends and have a webpage, Facebook
page and Twitter site. Our menu, map, and hours of operation will be easily
accessed. In the future we may consider fax or email orders as well a phone
application.
Organizations and management:

Organizational structure

(Restaurant Name) expects to hire 19 employees. (Owner Name) will

personally select each candidate. Theyve adopted an effective interview
process designed to staff the restaurant with highly qualified people for each
position. Each applicant will be rated and evaluated according to a pre-
defined set of standards designed for each position. Background checks will
be utilized for designated positions. Recruiting efforts will always center on
referrals.

Legal and Risk management:

Ownerships

Sole trader:
A sole trader is a person who sets up and owns their own business. They may
decide to employ other people but they are the only owner. A sole trader has
unlimited liability.

Partnership:
A partnership is an arrangement where parties, known as partners, agree to
cooperate to advance their mutual interests. The partners in a partnership
may be individuals, businesses, interest-based organizations, schools,
governments or combinations.
Company:
A company is a legal entity made up of an association of people, be they
natural, legal, or a mixture of both, for carrying on a commercial or industrial
enterprise.

Laws regarding starting a business in Saudi Arabia:

Sole trader:
Zakat and Income Tax Law
Government Tenders and Procurement Law
Employment Law
Sponsorship and Temporary Commercial Registration

Partnership:
Sponsorship and Temporary Commercial Registration
Limited partnership
Zakat and Income Tax

Company:
Joint Stock
Limited Liability
Sponsorship and Temporary Commercial Registration
Zakat and Income Tax

Legal and Risk Management

Legislation and Regulatory Requirements for Business:

Location:
The shop location should be far from unpleasant fumes and pollution
sources.
Available potable water and sewage system.
Civil Defense approval to provide safety conditions.

Design:
Fit the needed space with the number and size of the tools and the
number of workers and their movement.
Floors should not cause slipping and be slide toward the sink.
 It must provide the shop with ventilation system to prevents the
temperature from increasing, intensify steam, prevents dust and allows
the disposal of polluted air.
Provide a place for washing food items that need washing and the
basin needs to be made of metal that is rustproof.
Must provide an electric water heater for hot water secure.
Must provide a refrigerator to defrost frozen meat with a good size
needed for work.
Must provide a refrigerator-sized fit with the needs of the work to save
meat, and save the meat after the addition of the materials used for
seasoning directly.
Provided the warehouse non-rusting metal or plastic pallets, up to at
least 30 cm to put food on.
Ensure that the Warehouse temperature is not more than 25 C.

Waste Materials:
Liquid waste: restaurants that are connected to the sewage pipes must
provide the fat trap to catch the fat.
Must provide appropriate sized sealed container, and a container for
leftover of foods made from are plastic or metal stainless and opens
under pressure from the foot and the other for other waste.

OHS Requirements for your Business:

Maintain the workplace in a clean and hygienic condition, provide

appropriate lighting, supply drinking and washing water.
Take the necessary protection to protect the workers against hazards,
occupational diseases
Appoint a supervisor to educate the workers on H&S procedures, make
regular inspections to ensure the safety of equipment and supervise
the performance of H&S rules.
Supply the workers with the appropriate personal gear and train them
on their use.
Prohibit smoking at the workplace.
Make available one or more medical aid cabinets, supplied with
medicine and other necessities required for first aid.
Inform employer of dangerous places.
Medical care which includes: diagnosis, treatments, medicine, medical
supplies and prosthetics.
Legal Marketing Strategies:

The Saudi market should be constantly reviewed for product

adaptation and change.
Exporters should ensure regular supplies as per specifications, at the
specified time and place already agreed upon and at the stipulated
prices.
Any subsequent and sudden price changes, even pertaining to after-
sales services, should be avoided.
Exporters' contacts with importers in Saudi Arabia should be direct and
regular.
Complete product lines, rather than single products, should be
introduced into the Saudi market whenever possible in order to benefit
from greater demand stimulation and cost reductions.
Efforts should be made to improve the appearance of exported
commodities by means of attractive packaging.
Products to be exported should be properly branded and labeled both
in English and Arabic.

Taxation principles and Requirements related to Business:

KSA registered entities are required to also withhold payments to foreign
entities for purposes of paying a withholding tax. Amounts of such
withholdings include:
Management fees: 20% withholding tax
Royalties: 15% withholding tax
Rent/technical/consulting fees: 5% withholding tax

Non-KSA entities pay income tax on KSA income derived from KSA sources at
a flat rate of 20%, as adjusted.

Set Quality standards for Business:

Online services
Invite customer suggestions
Effective customer care
Motivate the personnel
Allow for employee participation in strategic planning
Personnel training and appraisal
Get clear on what great service looks like for the restaurant
Write out a training plan and expectations for every position at your
restaurant

Risk Management Strategy

 Internal Risk
Risk Solutions
Identify and minimize the risk of possible fire
hazards in your operations and residence.
Remove highly flammable and combustible
materials and accelerants where possible.
Train and conduct fire drills for employees to
define who will do what to in the event of a
fire.
Fire damage
Install, inspect and maintain appropriate
warning and extinguishing systems in
residences, farm buildings, on tractors,
combines and around mechanized equipment.
Keep appropriate fully charged fire
extinguishers on tractors, combines, and near
all machinery.
Keep all heating devices and equipment clean
and in good repair.
Use only heating devices and equipment
which is designed for the environment in
which it is placed.
Breakdown of
Make certain that anyone operating the
equipment
equipment knows and follows applicable
safety and maintenance procedures.
Keep machinery clean and free of combustible
materials, particularly engine compartments
where machinery fires often start.
Offer mats for drying wet feet.
Clean floor often when it's wet out.
Display things so that they're easy to reach.
Make sure all displays are secure.
Customer injuries Stow power cords and extension cords out of
the way.
Light all stairways, halls, and outdoor areas.
Clean up spills and obstacles immediately.
Post wet floor signs.
Employees injuries Communicate health and safety policy to
staff.
Assess the risks.
Deal with any hazards promptly.
Invite feedback from staff on safety
improvements.
 Display safety information clearly.
Maintain comfort and cleanliness.
Provide first-aid supplies.
Meet fire safety standards.
Keep safety procedures updated.
Protect wiring by enclosing it in metal or
conduit pipe
Install and maintain lightning rods and
grounding cables under the supervision of a
professional contractor.
Make certain employees know how to
Electrocution
disconnect power in the event of an
emergency.
Use only electric motors that are designed for
the tasks and conditions in which they are
used.

Employees must wash and their hands

properly.
Sick employees must not enter the kitchen.
Dirty or ill-equipped bathrooms must be
cleaned.
Dirty utensils, plates and cups must be
cleaned.
Overflowing garbage cans must be thrown
Food poisoning out.
There will be weekly inspection.
Food should not be left un-refrigerated longer
than 2 hours.
Employees should answer questions how a
food is prepared or change/switch ingredients
and be willing to be flexible.
Suspicious-looking food should not be
delivered.

External Risk
Prediction.
Natural disasters Forecasting.
Early Warning.
Competitors Make the best pricing.
Innovate your ideas and get more food ideas.
The branch must be in a good location.
Employ attractive staff as a more attractive
 employer may result in a benefit of skilled
resources.
Promotion may attract customers.
Achieve a preferred position with your
distribution partners such as retailers.
Secure key intellectual property that is
important to current and future products.
Valuing Liabilities
Managing Liabilities
Government risk
Guarantee Fund
Further Reading and Resources
Yield-enhancing investments.
Trade policies.
Improving market transparency.
Rise in Food Prices Reforming policies for grain-based biofuels.
Review stock policies.
Financing instruments.
Commodity exchanges.
Analysis investigates the link between these country
Economic Risks risk measures and some more standard measures of
risk.

Contracts:

A voluntary, deliberate, and legally binding agreement between two or more

competent parties. Contracts are usually written but may be spoken or
implied, and generally have to do with employment, sale or lease, or
tenancy.

Termination contract:
Supplier contract: Contracts with food suppliers or paper product suppliers
will dictate the terms of when and how goods will be delivered to the
restaurant. If the supplier fails to provide the goods required, it may force to
temporarily close the restaurant or seek an alternate supplier. So any
commitment failure the contract will be terminated.

Inception contract:
Supplier contract: suppliers need to meets the requirements such as
payment terms, delivery times, quality of the goods and many other factors
which will decide would you do business with particular supplier again. And
of course at the good price which will make both sides satisfied.
Financial plan:

The following sections outline our financial plan:

Required Cost of Start-Up
Profit and Loss
Cash Flow
Balance Sheet
Financial Ratios
Hourly Labor Costs
Weekly Sales Projections

Startup budget

Total startup costs will be $400,000, $200,000 of which will be contributed by

the owners and the remainder will be secured through a proposed bank loan.

Sources and use of funds

Profit and loss analysis

Cash flow

Balance sheet

Business ratio

Labor schedules