Question

Write a paper describing in detail your business interests or career plans and how constitutional law applies to them. Describe in detail what kind of business you want to own/operate or what occupational field you want to work in. Then describe at least three ways in which constitutional law applies to your business/field. For example, suppose your business needs property for its operations. You could explain how the constitutional law concept of eminent domain applies here and how it would effect your business. Think about some of the cases we’ve read and how they apply. One eminent domain case is ​Kelo v. New London.​ What type of business would qualify for eminent domain? Would yours? Why or why not? (think about the similarities and differences between your business venture and the business involved in ​Kelo.​ What type of business venture would you be involved in? Would it be interstate or intrastate commerce? Which level of government would have some power to regulate your business or industry, based on the commerce distinction? Why? ​These are some suggested areas to look at; feel free to add/substitute others. If you plan to hire employees, you should look think about the Court’s rulings that relate to racial and gender discrimination. For many students, federalism and commerce will be really important.

  

Answer 1

Executive Summary

"Back to Home Restaurant will be a moderately priced restaurant, on the beach side, offering family style food and service. Traditional foods like,the wide varities of parotta,rice and its varieties,different varities of coffee;all will be served here.Also sitting in the lakeside ang eating a ham burger and a traditional indian style coffee,seems good??Right??;Wherever you are;our moms food cracks our mouth always. We will offer specialty selections including a lighter options and smaller portions for a children’s menu.The Speciality of the restaurant is that it will be opened only from evening till night.

We will be leasing a 3500 square foot space located at beach side, in Jacksonville beach,FL ,United States. The site was previously leased as an Italian Restaurant. 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 décor 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 1700 customers per week resulting in weekly sales of just over $19,777, or $1,028,000 annually. This equates to around $302 per square foot in sales annually which positions THR 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 start up costs will be $363,000, $174,000 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 United States
• To provide quality meals at reasonable prices with exemplary service
• Achieve Cover ratios of 1.00X at each evening
• To achieve Prime Cost Ratios lower than 65%

1.2 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 everyone with dignity and respect – just like we would at our own home!

1.3 Guiding Principles

1. Being Mindful of our Customers and our Staff
   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!).
2. 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!
3. 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. Word–of–mouth 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:We made it happen on a beach side,because people can enjoy the leisure time with tasty home meals.
• 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 Traditional Home-Style Restaurant will be located in Jacksonville beach,FL ,United States. The restaurant will be wholly owned and operated by Mr Joe and Mrs.Joe. The restaurant will serve a variety of classic home-style favorites from french fries to oysters and different varities of food.

The restaurant will be open 7 days a week with 10 hours in a week starting from 4 pm in the evening till early morning 1am

Ownership

The restaurant will be owned by Mr and Mrs Joe Joe has done a bachelor degree in Hotel and catering management.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.

Mrs Joe 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. Betty 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 Form

Our restaurant will be organized as a sole proprietorship.Our retaurant will be registered in the state of Florida,a community property state.

Start-Up Summary

The cost to open the restaurant is $363,000. The majority of the expenses are in furniture fixtures and equipment totally $110,000. The location requires some build-out and renovation totally $50,000 and will require approximately 30 days to complete. The Wrights will sub-contract the work themselves.

$175,000 of the start-up costs will be funded by the owners. The owner’s 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 Jacksonville beach,FL ,United States. Jacksonville Beach is a coastal resort city in Duval County, Florida, United States. The city is part of group of communities collectively referred to as the Jacksonville Beaches.

According to the United States Census Bureau, the city has a total area of 22.0 square miles (56.9 km2). 7.3 square miles (19.0 km2) of it is land and 14.6 square miles (37.9 km2) of it (66.61%) is water. Jacksonville Beach is the largest town in the Jacksonville Beaches community. It is the eastern terminus of U.S. Route 90, which ends at an intersection with State Road A1A three blocks from the Atlantic Ocean.

Daily Operations and Production

BHR will be open 7 days a week but only for evening shifts. Joe 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. Replenishment and ongoing preparation will continue during off peak business hours.

Joe 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.

Mrs.Joe 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 customer’s 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 Comparison

The US restaurant industry includes about 480,000 restaurants with combined annual revenue of about $400 billion. Major companies include Brinker International which owns Chili’s Grill & Bar) and Maggiano’s, Ruby Tuesdays McDonald’s; YUM! Brands (KFC, Pizza Hut, Taco Bell); and Darden Restaurants (Olive Garden, Red Lobster). The industry is highly fragmented: the 50 largest companies hold just 20 percent of the market.

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 THR and range from $8.00-$20 per entrée.
• Applebee’s – this is a chain restaurant offering standard fare. The food quality is average. Entrées range from $6.99 – $20.
• Chili’s – this is a chain restaurant also offering standard fare. Food choices are varied and prices range for $8-$21.
• Barbeque Ben’s – 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. Entrée 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 Barrel’s attract the tourist business as well. Entrées range in price from $7.99-$14.

Suppliers

Because of their years of experience combined with their existing catering business, Joe And Mrs.Joet have established relationships with qualified suppliers. These suppliers can provide reasonably priced products, delivered according to the schedule.

Management Controls

The Wrights 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.

3.5 Administrative Systems

With a limited staff, it is crucial that the Wrights remain current with daily cash outlay. The purchase of a POS system will immensely help them with these daily administrative reports:

Daily Cash Control. Sales and receipts recorded by the POS system will be compared to actual cash and credit card deposits on a daily basis. Acceptable over/short amounts will be limited to $5.00 per day. Discrepancies greater than $5.00 will prompt management to conduct an immediate audit to account for the difference. Monthly totals will be compared to actual P&L statements for accuracy. Cash, debit card and credit card receipts will be deposited in a deposit.

Weekly Prime Cost Report. Joe will prepare a weekly report that shows the gross profit margin after cost of goods sold and labor cost has been deducted from the sales revenue. The prime cost for this type of restaurant is expected to range from 60% to 65%. Proper control of the prime cost is the single most effective measure of management’s ability to operate the restaurant.

Purchasing Records/Payables. A part time bookkeeper will process and record invoices and credits daily. Reports detailing cash expenditures, payments by check, and accounts payable transactions will be readily available. Check disbursements will be prepared by the bookkeeper. Check signing authority for the general operating account will be given to the general manager.

Payroll Processing. Payroll checks will be issued bi-monthly. Joe will run reports from the time & attendance system, make necessary adjustments, and prepare for transfer to the payroll system. Payroll will be processed by a payroll processing service.

3.6 Future Services

THR has future plans to provide catering services for family reunions, weddings and other events desiring a “home-style” menu. This could potentially become a large portion of gross sales. We are targeting Year 2 and at that point, a sales agent would be hired to directly market the products for daily delivery or catered functions.

4.0 Market Analysis

The restaurant industry is a large and diverse business: Restaurant-industry sales are forecast to reach $580.1 billion in 2010 – an increase of 2.5 percent over 2009. Restaurant-industry sales are projected to total $604 billion in 2011 and equal 4 percent of the U.S. gross domestic product. The overall economic impact of the restaurant industry is expected to exceed $1.7 trillion in 2011. On a typical day in America in 2010, more than 130 million people will be foodservice patrons. Sales at full service restaurants reached $184.2 billion in 2010. Sales at limited service restaurants increased to $164.8 billion in 2010, while snack and non-alcoholic-beverage bar sales rose to $24.7 billion. (National Restaurant Association).

The US restaurant industry includes about 480,000 restaurants with combined annual revenue of about $400 billion. Major companies include McDonald’s; YUM! Brands (KFC, Pizza Hut, Taco Bell); and Darden Restaurants (Olive Garden, Red Lobster). The industry is highly fragmented: the 50 largest companies hold just 20 percent of the market. (First Research).

The industry consists of full-service restaurants (FSR) and limited service eating places, which include quick-service restaurants (QSR); cafeterias; buffets; snack bars; and nonalcoholic beverage bars. (First Research)

4.1 Industry Analysis

This analysis is based on the Standard Industry Code (“SIC”) 5812: Eating and Drinking Places Establishments primarily engaged in the retail sale of prepared food and drinks for on-premise or immediate consumption. It is also based on the North American Industry Classification System (“NAICS”) 722110 – Full-Service Restaurants.

This industry comprises establishments primarily engaged in providing food services to patrons who order and are served while seated (i.e., waiter/waitress services) and pay after eating. These establishments may provide food services to patrons in combination with selling alcoholic beverages, providing carry out services, or presenting live nontheatrical entertainment.

Demographics, consumer tastes, and personal income drive demand. The profitability of individual companies can vary: while QSRs rely on efficient operations and high volume sales, FSRs rely on high-margin items and effective marketing. Large companies have advantages in purchasing, finance, and marketing. Small companies can offer superior food or service. The industry is labor-intensive. (First Research)

Wages form a significant proportion of operating costs. The existence of a statutory minimum wage in most states increases the need for players to keep other costs as lean as possible, which in turn increases the importance of suppliers. A slight complication is that in some states, foodservice employers are able to treat tips received by their staff as contributing to their wages; in such states, this policy reduces the impact of the minimum wage from the employers’ perspective. (Data Monitor)

Annual revenue per worker is less than $50,000.

Restaurants compete with companies that serve meals or prepared foods, including grocery stores, warehouse clubs, delis, and convenience stores. In addition, restaurants compete with home cooking.

Among FSRs, most establishments focus on Italian cuisine, steak, or seafood. Hamburger joints make up a majority of QSR locations, along with pizza parlors and sub sandwich shops. Industry revenue is roughly evenly split between FSRs QSRs.

In FSRs, waiters take orders, serve beverages and meals, present the check, and process payment. FSRs include casual dining (full bar); family dining (limited bar); and fine dining establishments.

Annual sales average $860,000 for FSRs.

An FSR’s square footage and the number of seats and tables dictate how many patrons it can serve (also known as table turns or covers) directly affects sales. Because the restaurant industry is highly competitive, site selection is critical: companies may consider population density, household income, competition, visibility, accessibility, and traffic.

Companies carefully manage inventory of perishable food products, such as fresh seafood and dairy goods, to reduce losses due to spoilage.

Computerized information systems can improve and link food preparation and serving operations. Touch screen ordering programs ensure accurate communication of customer orders. Timing systems monitor meal progress and can alert staff if an order is running behind schedule. Reservations programs maximize traffic flow and seating. Inventory management systems track supply levels and can help reduce waste due to spoilage. Cost accounting programs help companies determine the profitability of individual menu items. Handheld point-of-sale (POS) devices allow servers to place orders and print checks tableside, improving accuracy and reducing ordering time. Some handhelds can also print customer checks and process credit card payments. (First Research)

Market Size

The US restaurant industry includes about 480,000 restaurants with combined annual revenue of about $400 billion.

Industry Participants

Major participants include Major companies include McDonald’s; YUM! Brands (KFC, Pizza Hut, Taco Bell); and Darden Restaurants (Olive Garden, Red Lobster).

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 THR and range from $8.00-$20 per entrée.
• Applebee’s – This is a chain restaurant offering standard fare. The food quality is average. Entrées range from $6.99 – $20.
• Chili’s – This is a chain restaurant also offering standard fare. Food choices are varied and prices range for $8-$21.
• Barbeque Ben’s – 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. Entrée 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 Barrel’s attract the tourist business as well. Entrées range in price from $7.99-$14.

Market Segments

BHR will appeal to a broad base of consumers in both the residential and business community. The location selected for THR was chosen primarily to appeal to the growing number of households in the area.

The suburb of Benbrook located in western Forth Worth, TX has a population of over 51,000 according to the 2010 U.S. Census Report. The residential population in the immediate area is comprised of a mixture of single family and multi-family housing. The median household income is $46,532 for 2010 and estimated to be $54,646 for 2015. (US Census).

Major employers include Union Pacific Railroad and Bank of America.

Market Tests

For the past 10 years, we have been catering part-time. Their home-style menu is very popular with family reunions. More often than not, the couple gets asked to open a restaurant full-time so that patrons can return again and again.

Through Constant Contact (an online marketing program) the couple has stayed in touch with their host and hostesses, and has been asked to return to provide catering services to several repeat events. Home-Style Catering as also grown by word of mouth.

The couple also co-authors a home-style blog – attracting foodies nationwide and globally, swapping recipes, compiling the most sought after home-style comfort recipes, and identifying current trends, for example, providing expanded menus for children and for those with food allergies.

Webhave already have a customer base through their catering business and local blog visitors. These customers will be the first to be contacted when they announce the grand opening of the brick and mortar restaurant.

Target Market Segment Strategy

We selected the subject area for its restaurant primarily because of its location to the very busy intersection of Cherry Street and Camp Bowie. The restaurant located in a retail strip center is located on “going home” side of Camp Bowie. This will encourage families tired from a day of work to stop in for a home cooked meal they can enjoy – without the cleanup!

Cherry Road which runs North and South is connected to the busy Interstate 30 corridor, 1/2 mile north of the shopping center. Camp Bowie which runs East and West connects to the newer western suburbs of Fort Worth.

Market Needs

The Florida is in great need of a family style restaurant. This section of Camp Bowie is commonly referred to as “fast food alley” The selection of fast food is vast however; the area is limited on its family restaurant choices. THR’s nearest competitor, The Hedary Restaurant is located over 5 miles away from the location. Further, established in the 1970’s the Hedary Restaurant’s customers are older than the targeted family group BHR focuses on.

Market Trends

According to the National Restaurant Association, the top 10 trends for are:

1. locally sourced meats and seafood,
2. locally grown produce,
3. sustainability as a culinary theme,
4. nutritious kids’ dishes,
5. hyper-local items, (networked locally grown – like a Craigslist for restaurants)
6. children’s nutrition as a culinary theme,
7. sustainable seafood,
8. gluten-free allergy conscious items,
9. back to basics cuisine, and
10. farm brand ingredients.

Market Growth

US consumer spending on services, an indicator of restaurant sales, rose 1.8 percent in November 2011 compared to the same month in 2010. The average US retail price for diesel and regular gas, which influences discretionary consumer spending on eating out, rose 13.1 percent and 9.3 percent respectively in the week ending January 16, 2012, compared to the same week in 2011. US tourism spending for food services and drinking places, an indicator for restaurant revenues, increased 6.1 percent in the third quarter of 2011 compared to the same period in 2010. (First Research)

Positioning

Consumers believe that meals at home are healthier and higher quality than eating at restaurants. At BHR, we will position ourselves as the premier home-style restaurant by preparing quality home cooked meals with simple wholesome ingredients. Jeff and Betty Wright will also provide home cooked fare that appeals to the current trends of healthier food and offer menu selections which will appeal to this group. BHR will be positioned as the premier traditional home-style restaurant.

Marketing Strategy and Implementation

BHR will position itself as the premier home-style restaurant in the Florida. We will do this by providing quality home style meals, prepared with quality ingredients at a reasonable prices. 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.

The chains have tried to create home-style restaurants but where they have failed is in the personal aspect of the business. The POS system known as “The Expediter” used to monitor inventories and time meals has replaced one of the most important aspects of a restaurant – the friendliness of the staff! And in light of this, a handful of chain restaurants are beta testing self-pay tables!

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 BHR we plan to be the premier restaurant to work for as well. We believe that the restaurant industry is a great place to begin one’s 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 BHR 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.

BHR 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 team up with Groupon and Yelp. We will offer a loyalty club and birthday club which recent reports indicate increases earnings as much as 15%.

Strengths

• Prime location with easy access from Interstate 30
• Exceptional staff with the can do attitude. Combined 25 years in the restaurant industry
• Because owner has catering industry experience, he already has established a customer market and approved vendors
• 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 federal level and health, sanitation, safety, fire at the local level)
• Rising operating costs
• Building/maintaining sales volume
• Supermarkets and convenience stores
• Consumers that believe that meals at home are healthier than those prepared in restaurants.

Strategy Pyramid

Strategy: Be the Florida area’s premier Home-Style Food Restaurant in Customer Satisfaction.

Tactics: First create awareness– our signage on the front of restaurant will bring customers to us and once inside, we will immediately acknowledge the customer with the warmest and most sincere greeting and begin the service process anticipating repeat customers.

Programs: Provide employee training on customer service and retention; offer ongoing training programs for employees keeping them current on industry trends and food safety. Keep track of employee’s progress through performance reviews and offer employees incentives attracting and retailing customers. Employ Mystery Shoppers. Employ the use of surveys both at the table and online.

Unique Selling Proposition (USP)

BHR will be able to offer home-style meals for a reasonable price in a comfortable ‘home-like’ setting. The average check price is expected to be between $8-$15 which appears in line with industry standards below $25.00 (First Research). Because of our current expertise with vendors, and our excellent credit, we can negotiate better credit terms than say someone brand new starting a restaurant. We will also be able to keep our menu reasonably priced by offering menu items that take advantage of seasonal produce further reducing price. Finally we will keep our prices in check by meticulous monitoring of our controllable expenses – keeping close eye on our Prime Cost Report and Inventory. By initially employing family members who will work for lower and reduced wagers, for example, we can further reduce our controllable expenses.

Decide The Basics

The first thing that you must do before you start a restaurant is to decide the concept, format, name, theme and the idea behind the restaurant. Is it going to be a QSR, a casual-dining restaurant or a fine-dining restaurant? Who is your target audience? Why have you chosen a particular format and a specific target audience? What will be the concept of your restaurant? Will there be a theme? If yes what and if no why not? What will be the idea behind your restaurant, what will be the name of your restaurant and what does that name reflect?

The factors to consider and the funds required would change according to the format of your restaurant. At the same time, your marketing strategy would vary according to your target audience and concept.

Competitive Edge

BHR’s competitive edge is in its people. We truly believe that your business is not only as good as your products (meals) but the quality of your staff as well. Our staff is a reflection of us. Initially, we intend to employ our family members who will work for lower and reduced wages. Our long term goal is to hire team members that are truly hand selected and have the same honest to goodness family values we do. And unlike our big chain competitors, because of our lean size, we can turn on a dime when economically pushed and make changes quickly allowing us to be proactive. (Whereas our corporate competitors have to adhere more closely to their company policies thus impeding their reaction time)

Marketing Strategy and Positioning

We realize the success of BHR will have to be achieved by doing more that serving great food, and providing friendly service. We will utilize a marketing plan to build customer traffic. At BHR we will continually strive to win more customers by being proactive rather than reactive in our marketing efforts and stay current with popular industry trends. We will achieve these goals by using the following:

• Database: We will begin our campaign by marketing to our existing database of customers. We will email fliers announcing our grand opening. We will continually update our database by providing a fishbowl for business cards in the lobby and offer a weekly or monthly drawing.
• Loyalty Program/Birthday Program. THR will offer a birthday/loyalty club proving a complimentary hamburger or chicken sandwich or wrap to the for the birthday person. A recent report from the National Restaurant Association explained how this simple technique can increase revenues as much as 15% due to repeat business.
• Our restaurant team will also be active in the local community and we plan to take an active role by participating, sponsoring, and donating to local churches, sports clubs or teams in the market area.
• We will also strive to develop rapport with local business as a quick, comfortable lunch choice. In the future, we plan on establishing a marketing campaign to call on the local business in the market area, deliver samples, and encourage them to consider our restaurant as the restaurant of choice for their next business luncheon

Positioning Statement

THR will be the premier home-style dining restaurant in western Fort Worth. We will offer reasonably priced meals, in a warm, relaxed and comfortable setting. We have a wide selection on our menu and also have menu options for lighter fare as well as a children’s menu. We are open 7 days a week and unlike our chain competitors, our servers won’t try to be your best friend our rush you thought your meal. Our name says it all “Traditional Home-Style Restaurant – – honest to goodness food served to you by honest to goodness people!”

Pricing Strategy

At BHR, cost accounting is important, since the profitability of individual dishes can vary significantly and will initially determine the cost of the menu items. We will take advantage of our excellent credit terms with our suppliers and will also update our menu to take advantage of seasonality for example in local produce items. We will also closely monitor the Prime Cost Report which focuses on the controllable expenses of Cost of Goods Sold and Labor. As a new start-up we can currently control employee cost by hiring family members who will work for low and reduced wages.

5.5.3 Promotion and Advertising Strategy

• Location- The restaurant will be located in a strip center at the busy intersection of Cherry road and Camp Bowie. With easy access to Interstate 30 (less than ½ mile south) and located on the “going home side” (Western Corner) of the intersection. We will have Signage on the West Roads Shopping Plaza as well as signage over our entrance
• Word of Mouth – We already have a database of existing catering customers and will rely heavily on this method to attract and grow new business.
• Participate with Costco as Small Business of the Month – We will leave our menu, a fishbowl for business cards and a small ‘homey’ display with the retailer announcing us as new entrants in the local restaurant arena.
• Direct Mail – Bulk mailing either directly to potential customers or by including a postcard in a value-pack-type mailing.
• Event Marketing -We plan on joining our local chamber of commerce and utilizing their networking services for our grand opening

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.

Marketing Programs

• Our initial marketing campaign will consist of contacting our databases clients and notifying them of our grand opening. We will seek the use of a local mailing service program to assist us in the implementation of the campaign.
• Ongoing- we will meticulously keep our database current and use the Constant Contact program
• Loyalty and Birthday Club members will notified of upcoming special menu items and to alert them of our catering service.

Sales Strategy

Customer service is of the utmost importance. Customer surveys estimate that only 1 in 20 customers that have a problem in a restaurant will tell management about it. It will be our goal to provide a wonderful home-style meal combined with superior customer service. Training programs will include teaching materials to train our employees about service attitudes, customer perception and how to handle guest complaints. Jeff and Betty will conduct periodic staff meetings intended to review policy, increase guest satisfaction and to keep a general line of communication between staff and management. All guest complaints will be acknowledged by the staff and referred to management. Programs will be in place for all types of guest complaints. More serious complaints will be documented and kept on file. Customer feedback will be accomplished by customer surveys or the use of mystery shoppers.

Sales Forecast

We are expecting a conservative 5% increase in sales revenues annually over the next 3 years. The growth is adjusted for inflation. With the addition of catering revenues, sales will increase by 12.93% in Year 2 and 6.02% in Year 3.

Sales Programs

We will encourage our employees to grow our customer base and provide incentives and regular bonuses to employees for referrals and repeat customers. These initiatives are still in the planning stages as we gear up to hire and staff. They will play an active role in our employee culture.

It is also anticipated that as we grow our catering business, along with our lunch business group, we will hire a sales director to facilitate this portion of the business. The sales director will be compensated similarly to their national peers (national Restaurant Association)

Legal

Initially we will be formed a sole proprietor: Joe Traditional Home Style Restaurant. The State of Texas is a community property state. Over time, the couple plans to form a Limited Liability Company.

Organization and Management

Organizational Structure

BHR expects to hire 19 employees. Together, We will personally select each candidate. They’ve 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.

Management Team

The restaurant will be owned by Jeff Wright. Jeff 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.

Mrs.Joe received her Culinary Degree from the Art Institute in Dallas.She will initially be employed as the Kitchen Manager.

6.3 Management Team Gaps

Initially Jeff and Betty will fill in many of the management gaps. Over time, they have plans to hire a sales director, a general manager, and a kitchen manager.

To meet the gaps associated in payroll, inventory management, and cost accounting, we will purchase have considered a POS (point of sale system) that it simplifies communications between the kitchen and the wait staff. Orders go through the computer, directly to the kitchen printer. Another benefit of a restaurant POS programs is that it can track everything from food usage, to the most popular menu items. Because the POS system acts as a time clock, it can also help prepare payroll – which will save some money in the bookkeeping department. Along with the daily operations of running a restaurant, a POS system can organize profit and loss statement and sales tax.

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

Important Assumptions

• Meal Price range from $8.00 – $15.00
• Average lunch price: 8.79
• Average dinner price: 13.74
• The restaurant is located in the West Roads Shopping Center and is comprised of 3,400 square feet
• The dining room will be comprised of 20 tables with a seating capacity of 86 seats and 40 available parking spaces to meet the needs of the customers.
• The restaurant will employ 19 employees
• $860,000 -1,200,000 revenue target; Industry average for casual restaurant average of $860,000.
• Annual 3% increase for inflation and 5% annual increase in revenues
• Year 2 Assumes Catering Business in Place. Assumes 4 parties monthly @ $15 per plate and $50 persons. Catering will escalate to 8 parties monthly in month 20 and then 10 parties monthly thereafter. Also assumes additional increase in staffing (4 persons to be hired at 6 hours @ $8.00 per hour.

Start-Up Costs

Total start up costs will be $363,000, $174,000 of which will be contributed by the owners and the remainder will be secured through a proposed bank loan.

Source and Use of Funds

Total start-up costs are estimated to be $363,000. The majority of the costs are associated with the restaurant equipment, inventory and furniture and furnishings for the dining room. Total costs for these items are reported to be $110,500. The costs are associated with build out and renovation of the restaurant to provide updated plumbing and creating additional space in the dining area by removing a non-supporting wall: $50,000. Additional start up expenses are in the form of working capital and contingency $182,500.

We will contribute $174, 000 and are requesting an additional $189,000 in the form of a bank loan. The loan is expected to be a fully amortizing 5 year term note secured by UCC filings on all furniture fixtures and equipment.

Break-Even Analysis

Total fixed costs associated with the restaurant are $669,186 and represent the annual expenses. The variable cost (overhead) is estimated to be $4.51 per meal. Based on the assumption of $11.37 as the average meal price, the breakeven revenue then is $1,108,970 or 97,535 meals (units). This is further depicted in the Table Below and the Graph that follow:

Projections

Projected Profit and Loss

The profit and loss demonstrates modest increases in revenues over the three expected years with adjustments for inflation.

Projected Cash Flow

The statement of cash flow shows the incoming and outgoing cash of the business.

What's Hot

• Restaurant Business Plan
• Cafe Business Plan
• Organic Farm Business Pla...
• Rental Property Business...
• Bar Business Plan
• Rental Income Expenses Sp...
• Business Plan Template
• Jewelry Store Kiosk Busin...
• Collection Letter Samples
• Insurance Agency Business...

What’s New

• Developing your Annual Business Goals
• Residential Rental Application
• Residential Lease
• Rental Income Expenses Spreadsheet
• Power of Attorney – Medical

As we said before, a lot of people want to enter the restaurant industry but can not as they don’t know where to start. That being said, competition is abundant already so you can not start a restaurant any which way you like. Apart from legal procedures, there are processes and steps that you must follow when you start a restaurant to ensure its longevity and smooth operations.