Business Plan of a Pizza Restaurants
29 pages
English

Business Plan of a Pizza Restaurants

-

Description

XYZ is a well established franchise chain of pizza restaurants. We will be the first franchise in our state. Following the franchisor's format, decor, and menus we will offer pizza, pasta dishes, stromboli, calzone, and salads, in a friendly, family dining environment.

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Publié par
Publié le 09 octobre 2014
Nombre de lectures 1 108
Langue English
Business Plan of a Pizza Restaurants
XYZ is a well established franchise chain of pizza restaurants. We will be the first franchise in our state. Following the franchisor's format, decor, and menus we will offer pizza, pasta dishes, stromboli, calzone, and salads, in a friendly, family dining environment.
Chart: Highlights
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year 1
2.0 Company Summary
Highlights
Year 2
Year 3
Sales
Gross Margin
Net Profit
Established in 1958, XYZs are an award winning, "Home of the brick oven Pizza". They offer a comfortable, friendly ambience, with its new "Modern Pizzeria" design. The menu features pizza, hot calzones, strombollis, sandwiches, baked pastas, and fresh tossed salads. The pizza dough is made fresh everyday on site. Beverages include soft drinks, imported and domestic beer, micro brews, and an impressive wine list. Food ingredients are the finest available including USDA Choice meats.
2.1 Company Ownership
We are an LLC, limited liability company, with four managing owners holding an equal share (25%) and interest in the franchise.
Carol Mittani: General Managing Owner - Hands-on management of all daily restaurant and company operations. Steve Solutrian: Vice Managing Owner / Sales and restaurant operations. Hands-on management of daily operations and sales trends. Diane Solutrian: Vice Managing Owner / All office procedures. Hands-on management of daily operations. Rikard Mittani: Vice Managing Owner / Marketing and future finances and investments. Hands-on management of daily operations.
2.2 Start-up Summary
We hope to take advantage of an existing structure located at 555 West Blue Plum Lane, at Lakeside Center. It is 2,828 square feet. We will remodel according to the Franchisor's designs to make our concept both visually and functionally suitable.
Our target market includes adults 20 to 54 years old who socialize and have families. Children are a big part of our market, at a third of the population is this area. Ages 4 to 19 prefer pizza over any fast food and often influence family dining decisions. According to one study, 93% of the U.S. population eats pizza. If we sold one pizza per month with an average of $17.00 per household, we would generate $721,141 in one month. This illustrates that with effective marketing, superior product, and proper management we will reach and exceed our projected sales goals.
In this area we have some of the best schools. XYZs provides support for local area school groups and sports teams, as well as local church groups. We will be involved through providing sponsorships, discounts, and donations.
Table: Market Analysis
Market Analysis
Potential Customers
Ages 0-19 (preferred fast food) Ages 20-54 (w/disposable cash) Over 55 Total
Growth 4%
4%
3% 3.87%
Chart: Market Analysis (Pie)
Market Analysis (Pie)
4.2 Target Market Segment Strategy
Year 1
30,426
61,583
26,775 118,784
Year 2
31,643
64,046
27,685 123,374
Year 3
32,909
66,608
28,626 128,143
Year 4
34,225
69,272
29,599 133,096
Ages 0-19 (preferred fast food)
Ages 20-54 (w/disposable cash)
Over 55
Year 5
35,594
72,043
30,605 138,242
CAGR 4.00%
4.00%
3.40% 3.87%
We haven't ruled any one group or class out in our target market area. Just about everyone eats pizza. Most residents in this area have busy schedules, and find value in exceptional and timely service, as well as mouth watering, delightful food. We believe most everyone will
Table: Sales Forecast
Sales Forecast
Sales Total Restaurant Sales Other Total Sales
Direct Cost of Sales Cost of Sales Other Subtotal Direct Cost of Sales
Chart: Sales Monthly
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Sales Monthly
Year 1
$677,297 $0 $677,297
Year 1 $135,461 $0 $135,461
Year 2
$717,935 $0 $717,935
Year 2 $143,590 $0 $143,590
Total Restaurant Sales
Other
Year 3
$761,011 $0 $761,011
Year 3 $152,206 $0 $152,206
7.0 Financial Plan
Our main concerns will be aggressive time management to keep labor costs under control. Proper purchasing, food preparation and handling, and control of cheese consumption to keep food costs down. Growth will be sustained through increased sales.
7.1 Start-up Funding
Our start-up figures are approximate costs for start-up of a XYZ franchise as prescribed by the Franchisor.
4 Moons has $160,000 initial investment, $25,000 of which will cover the franchise fee.
Our estimated start up is $505,000. We are seeking an SBA Loan in the amount of $345,000 (see Long term liability line).
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required
Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets
Liabilities and Capital
Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities
Capital
Planned Investment
Solutrian, Steve and Diane Mittani, Rikard and Carol Additional Investment Requirement Total Planned Investment
Loss at Start-up (Start-up Expenses) Total Capital
Total Capital and Liabilities
Total Funding
$266,207 $238,793 $505,000
$151,507 $87,286 $0 $87,286 $238,793
$0 $345,000 $0 $0 $345,000
$75,000 $75,000 $10,000 $160,000
($266,207) ($106,207)
$238,793
$505,000
7.4 Projected Profit and Loss
As the Profit and Loss table shows, the company expects to continue its steady growth in profitability over the next three years. We predicted a conservative 6% per year increase in sales.
The first month may have higher payroll due to employee training and restaurant set up.
Our operating expenses include rent at $4,242 estimate per month, royalty fees of 5% of gross sales, equipment rental and repair, utilities projected at 11% of gross sales, administrative charges including PC charges, cleaning supplies, payroll charges, and office supplies.
Marketing fees are 4% of gross sales per month.
Chart: Profit Monthly
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
Profit Monthly
$0 Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
7.5 Projected Cash Flow
The cash flow depends on assumptions for good daily operational management, good traffic counts in the restaurant, inventory turnover, payment days, and accounts receivable management. We do not predict any new financing until we open our second franchise.
Principal amounts are based on a loan of $345,000 with a 10 year SBA Loan at 7% interest.
Table: Cash Flow
Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending Bill Payments Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent
Net Cash Flow Cash Balance
Year 1
$677,297 $677,297
$0 $0 $0 $0 $0 $0 $0 $677,297
Year 1
$126,738 $276,887 $403,625
$0 $0 $0 $22,576 $0 $0 $0 $426,201
$251,096 $338,382
Year 2
$717,935 $717,935
$0 $0 $0 $0 $0 $0 $0 $717,935
Year 2
$129,228 $324,826 $454,054
$0 $0 $0 $26,332 $0 $0 $0 $480,386
$237,549 $575,931
Year 3
$761,011 $761,011
$0 $0 $0 $0 $0 $0 $0 $761,011
Year 3
$136,982 $340,198 $477,180
$0 $0 $0 $28,237 $0 $0 $0 $505,417
$255,594 $831,525
7.7 Business Ratios
Table: Ratios
Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
Current Liabilities Long-term Liabilities Total Liabilities Net Worth
Percent of Sales
100.00% 80.00% 48.50% 4.43% 48.46%
Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes
Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover
Net Working Capital Interest Coverage
5.78% 70.72% 76.49% 23.51%
1.33% 9.16% 84.71% 15.29% 100.00%
Year 1 31.50% 199.10%
$852,087 19.30
23.52 11.51 27 1.49
Year 2 32.58% 68.58%
14.66 14.43 76.49% 284.43% 66.86%
$359,863 14.04
3.25 0.08
0.67 6% 14.43 6.32 0.00
$597,446 16.44
0.97% 6.29% 94.02% 5.98% 100.00%
Year 1 n.a.
4.03% 44.60% 48.62% 51.38%
0.77% 4.69% 98.91% 1.09% 100.00%
0.95 0.08
22.95 12.17 30 1.08
Year 3 6.00%
Year 2 6.00%
31.35 31.11 33.25% 60.82% 40.60%
Year 3 33.23% 42.57%
22.84 12.17 29 0.86
0.50 0.09
23.35 23.11 48.62% 97.97% 50.33%
100.00% 80.00% 47.42% 0.00% 49.56%
Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets
Additional Ratios
100.00% 80.00% 46.77% 0.00% 50.06%
3.15% 30.10% 33.25% 66.75%
1.17 3% 31.11 1.28 0.00
0.92 4% 23.11 2.10 0.00
The company's projected business ratios are provided in the following table. The final column, Industry Profile, shows ratios for the "Pizza Restaurant Industry", as determined by the Standard Industry Classification 5812.0600 with annual sales of $500,000 to $999,000.
Net Profit Margin Return on Equity
Activity Ratios
Debt Ratios Debt to Net Worth Current Liab. to Liab.
Additional Ratios
Liquidity Ratios
18.93% 25.48% 44.41% 55.59%
4.34% 35.11% 43.74% 56.26% 100.00%
Industry Profile 5.24%
1.14 0.79 49.97% 3.97% 7.93%
n.a n.a
100.00% 61.91% 39.08% 2.55% 1.38%
Percent of Total Assets
Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets
Ratio Analysis
Sales Growth
n.a n.a
n.a n.a n.a n.a n.a
n.a n.a n.a n.a
n.a n.a
$30,044
$29,859
Month 9 $59,542 $11,909 $0 $11,909
$18,013
Month 10 $59,840 $11,968 $0 $11,968
Month 2 $57,500 $11,500 $0 $11,500
Month 1 $28,750 $5,750 $0 $5,750
Month 11 $60,139 $12,028 $0 $12,028
Month 12 $60,440 $12,088 $0 $12,088
Month 8 $59,246 $11,849 $0 $11,849
Month 5 $58,366 $11,673 $0 $11,673
Month 6 $58,658 $11,732 $0 $11,732
$30,908 $2,001 $7,922
$28,945
$29,126
$17,592
Expenses Payroll Marketing/Promotion Depreciation Rent Royalty fees Equip rent/repair
$28,408
$28,587
$30,231
$31,264 $1,977 $8,036
$31,087 $1,989 $7,979
$32,731 $1,881 $8,505
$18,121
$18,067
Total Operating Expenses
$31,991 $1,930 $8,268
Month 4 $58,076 $11,616 $0 $11,616
5%
$32,173 $1,918 $8,327
 Taxes Incurred
$8,258 $2,013 $1,124
Net Profit Net Profit/Sales
 Interest Expense
$29,673
$18,886 32.36%
$5,758
$19,020 32.43%
$28,764
$17,853
$17,960
$29,491
$17,906
$17,748
$29,308
$17,800
$32,359 $1,905 $8,386
$31,626 $1,954 $8,152
$48,111 80.00%
$47,872 80.00%
$48,352 80.00%
$10,771 $0 $2,500 $4,242 $0 $250 $0 $250
$10,558 $0 $2,500 $4,242 $0 $250 $0 $250
$17,696
$17,644
$10,454 $0 $2,500 $4,242 $0 $250 $0 $250
$10,402 $0 $2,500 $4,242 $0 $250 $0 $250
$10,825 $0 $2,500 $4,242 $0 $250 $0 $250
$10,879 $0 $2,500 $4,242 $0 $250 $0 $250
$10,611 $0 $2,500 $4,242 $0 $250 $0 $250
$10,664 $0 $2,500 $4,242 $0 $250 $0 $250
$10,718 $0 $2,500 $4,242 $0 $250 $0 $250
$10,350 $0 $2,500 $4,242 $0 $250 $0 $250
$10,000 $0 $2,500 $4,242 $0 $250 $0 $250
Sales Direct Cost of Sales
Gross Margin %
Total Cost of Sales
Other Costs of Sales
$46,231 80.00%
$46,460 80.00%
$46,000 80.00%
Gross Margin
Pro Forma Profit and Loss
$47,161 80.00%
$47,397 80.00%
$47,633 80.00%
$46,693 80.00%
$46,926 80.00%
$17,242
$0 $250 $0 $250
$2,622 9.12%
$18,485 32.15%
$31,808 $1,942 $8,210
$18,619 32.22%
$18,751 32.29%
$31,445 $1,966 $8,094
$23,000 80.00%
$19,567 32.70%
$19,706 32.77%
$10,506 $0 $2,500 $4,242
$19,845 32.83%
Profit Before Interest and Taxes EBITDA
4%
11%
Utilities Admin charges
$32,544 $1,893 $8,445
$19,156 32.49%
$19,293 32.56%
$19,429 32.63%
Table: Profit and Loss
Month 3 $57,788 $11,557 $0 $11,557
Month 7 $58,952 $11,791 $0 $11,791
$160,000 ($266,207) $173,828 $67,621 $420,388
$343,007 $369,750
$345,000 $352,616
$324,537 $350,771
$332,865 $358,689
$326,637 $352,767
$328,725 $354,753
$330,801 $356,725
$160,000 ($266,207) $213,378 $107,171 $455,933
Long-term Assets
$341,002 $366,422
$338,985 $364,506
$322,424 $348,762
$160,000 ($266,207) $0 ($106,207) $238,793
$160,000 ($266,207) $39,725 ($66,482) $299,940
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital
$334,917 $360,639
$160,000 ($266,207) $154,260 $48,053 $402,806
$160,000 ($266,207) $134,831 $28,624 $385,349
$336,957 $362,577
Liabilities and Capital
$26,338 $0 $0 $26,338
Month 12
Current Liabilities
Month 9
Month 10
$26,130 $0 $0 $26,130
Month 11
$26,028 $0 $0 $26,028
$26,234 $0 $0 $26,234
$25,924 $0 $0 $25,924
Month 7
$25,824 $0 $0 $25,824
Month 8
$345,000 $345,000
Long-term Liabilities Total Liabilities
$318,076 $6,014 $41,775 $365,865
Assets
Current Assets
Starting Balances
Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
Month 1
Month 3
Month 2
$26,743 $0 $0 $26,743
$7,616 $0 $0 $7,616
$25,420 $0 $0 $25,420
Month 4
Month 3
Month 2
Month 4
$179,460 $5,808 $41,775 $227,043
$160,154 $5,779 $41,775 $207,708
$142,393 $5,750 $41,775 $189,918
$87,286 $10,000 $41,775 $139,061
$105,773 $4,250 $41,775 $151,798
Month 11
$297,897 $5,984 $41,775 $345,656
Month 10
$99,732 $22,500 $77,232 $402,806
$99,732 $25,000 $74,732 $420,388
$99,732 $27,500 $72,232 $438,097
$338,382 $6,044 $41,775 $386,201
Month 12
Month 8
$277,845 $5,955 $41,775 $325,574
Month 7
Month 9
$257,918 $5,925 $41,775 $305,617
$238,117 $5,896 $41,775 $285,788
$25,521 $0 $0 $25,521
$160,000 ($266,207) $2,622 ($103,585) $249,030
Cash Inventory Other Current Assets Total Current Assets
$99,732 $15,000 $84,732 $350,814
$99,732 $12,500 $87,232 $333,731
$25,722 $0 $0 $25,722
$25,620 $0 $0 $25,620
Month 6
Month 5
Table: Balance Sheet
$99,732 $7,500 $92,232 $299,940
$99,732 $10,000 $89,732 $316,775
$99,732 $30,000 $69,732 $455,933
$99,732 $17,500 $82,232 $368,020
$99,732 $20,000 $79,732 $385,349
$218,441 $5,866 $41,775 $266,082
$198,888 $5,837 $41,775 $246,499
Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
Pro Forma Balance Sheet
Month 1
$99,732 $5,000 $94,732 $284,650
$99,732 $0 $99,732 $238,793
$99,732 $2,500 $97,232 $249,030
Month 5
Month 6
($9,825)
$9,331
$28,624
$48,053
$87,326
$160,000 ($266,207) $193,533 $87,326 $438,097
$107,171
Net Worth
($106,207)
$160,000 ($266,207) $58,476 ($47,731) $316,775
($28,845)
$160,000 ($266,207) $77,362 ($28,845) $333,731
$160,000 ($266,207) $115,538 $9,331 $368,020
$160,000 ($266,207) $96,382 ($9,825) $350,814
($103,585)
($85,100)
$0 $0 $0 $0
($66,482)
$160,000 ($266,207) $21,107 ($85,100) $284,650
$67,621
($47,731)