Business Plan For Mazzi's For Ralph by Stan Caterbone

Mazzi Business Plan Page 1 of 26

COVER AND DISCLAIMERS

June 5, 2000

This Business Plan and its contents are confidential and considered the intellectual property of the author. Prior written consent is required prior to any redistribution, copy, or alteration of this Business Plan.

This Business Plan is intended to convey information only and shall not constitute or be construed as an offer to sell or the solicitation of an offer to buy securities. The authors acknowledge best efforts in the accuracy of information contained herein.

.

For Further Information and Questions

Regarding this Business Plan Please Contact:

Ralph Mazzocchi: (717) 394-3422


TABLE OF CONTENTS

1 Executive Summary

1.1 Mission Statement

1.2 Executive Summary

2 The Operator

2.1 Biography of Chef Mazzocchi

2.2 Professional Credits

3 Demographics And Marketing

3.1 Demographics and Census

3.2 Preliminary Marketing Plan

4 Financial Statements

4.1 Capital Equipment Budget

4.2 (3) Year Projected Pro forma Statement

4.3 (3) Year Projected Sales and Revenues

4.4 Preliminary Staffing Schedule

5 Lease and Capital Equipment

5.1 RMDS Enterprises, L.L.C Retail Lease Agreement

5.2 Singer Equipment Schedule and Pricing

5.3 Preliminary Equipment Leasing Schedule and Bids

6 Exhibits

6.1 Architectural Plans and Specifications

6.2 RMDS Enterprises, L.L.C. Operating Agreement

6.3 Personal Financial Statement


1 Executive Summary

1.1 Mission Statement

Company Vision

To be the best is the single most motivating force behind our vision. The start of any vision is a thought. For a thought to become anything other than ethereal it must be married to an action. With these actions we hope to demonstrate our vision.

Company Mission

1. Innovation.

2. Superior Service.

3. Quality.

4. Consistency.

These 4 components comprise the constitution for what our business hopes to achieve. These attributes are our tenets!


1.2 Executive Summary

Mazzi Inc. and Leola Inn & Suites plans to create, develop, and implement an interconnected destination complex, located on Route 23, a main artery in Lancaster county. This convenient location is 6.5 miles east of center city Lancaster; 4.0 miles south east of Manheim Township (township with the second highest household income in Lancaster county); and 6 miles north east of West Lampeter Township (Route 30 outlets, and major tourist attractions). An accessible site, the complex is surrounded by residence, business and industry. Mazzi, a brand new progressive and contemporary dinning establishment will arrive in Leola this spring, 2000.

Mazzi's propitious geographical locale is surpassed only by it's physical location, nestled in the heart of a newly constructed executive suite hotel and shops. The Leola Inn & Suites will be erected in 2 stages. Stage 1 will be completed by the end of April 2000. This stage consists of the first 18 of 51 guest suites. Stage 2 will start in the spring of 2000 and will complete the balance of the suites. Hotel marketing efforts will target corporate clientele, group functions, and transient/tourists. The corporate clientele will constitute 60% of the overall market. The balance of the occupancy will be filled by 20% group functions (wedding parties, reunions, workshops/seminars) and transient/tourists. The large market share dedicated to corporate accommodations is based on the demand in the immediate area. Leola Inn & Suites will capitalize on this demand by specializing in extended corporate lodging. The demographics (see section) of the surrounding area reflect a wealth of both commercial and industrial businesses.

The management and staff plan to merchandise the lodging facility by soliciting these businesses through direct sales and other marketing efforts, i.e. web site sales and marketing. Heading this endeavor is hotel owner and chief operator, Deborah Shirk, a twenty two year veteran of the Best Western Eden Resort Inn & Conference Center. The Eden Resort is one of Lancaster County's most popular and well regarded resorts and conference centers. Shirk's first hand experience of and with the Lancaster market, along with her extensive Hospitality Industry knowledge, allow for certain success.

Joining this unique complex and reaching for the same high level of success is Mazzi, an upscale yet casual restaurant. Working in close harmony with the staff and management of the Leola Inn & Suites, one of Mazzi's primary goals is to accommodate the high volume of hotel traffic. The full service restaurant is slated for a 15 seat bar, 90 seat dinning room and a 40 seat conference /banquet room for workshops, seminars, special occasions and private functions.

The primary driving force and foundation behind Mazzi is owner and head chef, restaurateur, Ralph V. Mazzocchi (see biography.) Mazzocchi envisions his establishment as quality oriented with a relaxed and yet elegant atmosphere. This key proponent to the dinning environment is a corner stone for marketing.

The marketing strategy is predicated on 2 distinct factors 1) Mazzocchi's twenty year experience with the Lancaster Food and Beverage markets and 2) the neighboring competition. This competitive environment, while not abundant, is formidable. Flanked by Reflections and the Log Cabin to the north (both 3.5 miles away) and Old Greenfeild Inn (4 miles south.) These 3 establishments appear to incorporate all elements needed to appeal to a similar target market group. This market looks for 1) food quality and consistency, 2) pleasant casual ambiance and 3) well attentive and exceptional service.

These facets of day to day business are paramount in any dinning establishment. Which lends creditability to the longevity each has endured, the Log Cabin - 40 years, Reflections - 17 years


Executive Summary, Cont.

and Old Greenfeild Inn - 10 years. It should be noted that while all three share similar qualities the Log Cabin has a much higher check average per customer and carries a slightly more prestigious, upscale image. Reflections and Old Greenfeild Inn rely on perceived value. Most customers consider both restaurants to be less expensive than their competitors with the same culinary benefits.

The Log Cabin provides a more traditional and selective menu. Its whole image is based on its elevated dinning structure. Mazzi's will capitalize on both concepts by cross fitting these dinning philosophies. By blending elegant ambiance with the price cognizance of the other two menus, perceived value on the part of the Mazzi patron is achieved.

The scope of the restaurant is to provide popular American cuisine in an upscale form while being price conscious. The graduated style of food and pricing is patterned after a successful restaurant chain The California Cafe (one located in King of Prussia). The food being fresh, innovative, well prepared and relatively inexpensive. Mazzi will use these same marketing tools to attract local clientele while at the same time satisfying the large influx of travelers staying with in the hotel complex.

Mazzocchi's imaginative flair and distinctive cooking techniques coupled with his insightful marketing savvy will bring Mazzi to the same stature the other fine institutions now enjoy.


2.0 The Operator

2.1 Biography of Chef Mazzocchi

Ralph Mazzocchi started his restaurant career while washing dishes at a small upscale restaurant in Lancaster at the age of 25, to earn some extra money. After washing dishes for nine months, he was given a chance to help prepare the food and decided this was his calling, and pursued his path toward owning and operating his own restaurant some day. He stayed for another year at that small restaurant in Lancaster, namely, Jethros, working many long hours and learning everything he could from his mentors.

He then moved to New York city. He worked at Odeon, which was a Four Star restaurant at that time. After spending a year there, he moved to The Rainbow Room, another upscale restaurant in New York where he remained for another year. He continued moving from one restaurant to another, gaining much experience and was finally offered a partnership at East of Eden in Lancaster. He worked there as the chef for six years. In 1988, he was asked to start a northern Italian restaurant, Portofino. He established a very strong Italian based clientele and then decided it was time to be completely on his own. He opened Gallo Rosso in 1990; an upscale northern Italian restaurant. Gallo Rosso is a culmination of everything he has learned and acts as a springboard of his own personal cooking style. He believes that cooking is the ultimate art and he practices that in his kitchen. He tries to be authentic with the dishes he prepares and has developed a strong passion for Italian wines which is reflected in Gallo Rosso's approach to its wine program and selections.

Never having been in a kitchen before the age of 25, Ralph has an apparent desire and love for what he does. Gallo Rosso is the fruit of his labors and is one of the most sincere and authentic Italian restaurants in Lancaster County.

Ralph Mazzocchi has proven and developed a consistent formula for success, and his reputation among his patrons and the food industry at large is a matter of record. Gallo Rosso continued to earn industry wide recognition and awards while under the stewardship of Ralph Mazzocchi. Ralph continues to teach local cooking classes and provides local charities his culinary skills for fund raising dinners and events. He has always been respected among his peers.


2.3 Professional Credits of Chef Mazzocchi

V January & February 2000 CENTRAL PA LFIE MAGAZINE

GALLO ROSSO NAMED TOP RESTAURANT OUT OF 100

Gallo Rosso named Central Pennsylvanias favorite restaurant out of 100, and receives Central Pennsylvanias Critics Choice Award, while under the leadership of Chef and Owner Ralph Mazzocchi through November of 1999.

TOPPING THE LIST WAS GALLO ROSSO ON NORTH QUEEN STREET IN LANCASTER. THE NAME GALLO ROSSO MEANS ROOSTER IN ITALIAN; IN EUROPE, THE ROOSTER SYMBOLIZES GOOD TASTE OR THE PINNACLE OF YOUR PROFESSION, WHICH SEEMS TO BE QUITE APPROPRIATE FOR A RESTAURANT

By The Editor

V 1999 Catering Awards THE RADNOR HUNT CLUB

V 1998 Catering Awards THE GOURMET FEST MAGAZINE

V 1998 Critics Foods Choice ART & ENTERTAINMENT


V January 1, 1997 CENTAL PAs APRISE MAGAZINE

"The Phantom Diner

IT WAS A PLEASURE TO DINE AND REPORT ABOUT SUCH VERY GOOD RELATIVE NEWCOMERS TO THE REGION AS GALLO ROSSO IN LANCASTER .

By Phantom Dinner

V February 21, 1996 THE LANCASTER INTELLIGENCER

"Lifestyles Section: "Behind the Kitchen Doors - Gallo Rosso"

By Daniel Sturma

V August 16, 1994 THE LANCASTER INTELLIGENCER

"Partners in Prevention Award.Ralph Mazzocchi of Gallo Rosso"

By Editor


V January 26, 1994 THE LANCASTER INTELLIGENCER

"Lifesytle Section: "Challenging the Imagination of Five Local Chefs"

By Editor

V October 1, 1993 CENTRAL PAs APRISE MAGAZINE

"The Phantom Diner: Gallo Rosso"

THE MENU IS ASTONISHING, AND YOU WONT FIND ANOTHER LIKE IT IN CENTRAL PENNSYLVANIA.. BUT THE FOOD IS EXQUISITE, AND THE SERVICES FAR MORE FRIENDLY AND WARM THAN IS USUALLY FOUND IN COLDLY MODERN SETTINGS.

GALLO ROSSO IS ONE OF A NUMBER OF RESTUARANTS IN LANCASTER MAKING THAT CITY MORE VISITING, IF ONLY TO DINE THERE. ITS ALREADY ONE OF THE BEST PLACES TO EAT IN THE REGION. By Editor

V March 1, 1993 CITYBEAT MAHAZINE

"Adventures in Dinning: Jim Lupia visits Gallo Rosso"

WHILE LANCASTER IS INDEED FORTUNATE TO BE ABLE TO ENJOY GALLO ROSSO AS ONE OF ITS BEST RESTUARANTS, IT IS CONVENIENTLY ACCESSIBLE TO ALL OF CENTRAL PENNSYLVANIA

By Jim Lupia

V May 1, 1992 CITYBEAT MAGAZINE

"Nibble On This"

ALL TOLD GALLO ROSSO IS A SERIOUS CONTENDER FOR THE CROWN OF CENTRAL PENNSYLVANIAS FINEST ITALIAN WITH HIGH QUALITY, REASONABLE PRICES, MANIFOLD CHOICE, AND AFFLUENT ATMOSPHERE.

By Crow Bella


V April 22, 1992 THE LANCASTER INTELLIGENCER

"Lifestyle Section: "Ethnic Desserts Please Adventurous Palate"

By Melanie Landis

V August 26, 1990 THE LANCASTER SUNDAY NEWS

"Food Section: Chef Ralph Mazzocchi debuts Restaurant"

MAZZOCCHI BRINGS HIS OWN SPECIAL TOUCHES TO THE MENU, TOUCHES THAT STILL LINGER AT RESTAURANTS WHERE HE HAS WORKED IN THE PAST. THE NORTHERN ITALIAN CUISINE OBVIOUSLY HAS SOME AMERICANISM

By Pat Johnson

V April 6, 1990 LANCASTER NEW ERA

"Chef Buys Rose Bowl, Eyes Summer Opening after Renovations"

By Editor

V April 4, 1990 THE LANCASTER INTELLIGENCER

"Chef To Reopen City Restaurant" By Darren M. Allen


"Vacant Caf Turned Into Italian Restaurant By Tim Mekeel


Authentic Italian Foods At City Restaurant By Linda Stauffer


V November 11, 1987 THE SUN LEDGER

Restaurant Review - East of Eden Pub

V March 1, 1987 YORK MAGAZINE

"Dinning Out By Editor

V July 10, 1986 LANCASTER NEW ERA

"East of Eden Pub - Fine Food In A Casual Setting" By Stephanie Alexiieff

V November 30, 1984 BON APPETIT MAGAZINE

Recipe Published By Editor

V March 20, 1983 LANCASTER SUNDAY NEWS "New Chef is a Perfectionist - The Philosophy of East of Eden"

By Nancy Plank


3.1 Demographics

The demographics surrounding this project are substantial when considering the possibilities for The Leola Inn & Suites motel and the Mazzi restaurant. Leola is part of the Lancaster County Tourist trek, featuring its small town heritage, lined with its distinctive small motor Inns and Bed and Breakfast lodges. Mazzi will cultivate its primary source of clients from the enormous business community that resides within its reach. There are approximately 500 small and medium size businesses that are located within 1-1/2 miles from Mazzis front doors. Within 3 miles there are approximately 1,100 businesses, and within 7 miles there are approximately 10,000 businesses to market. These statistics compliment the close proximately of several large employers, including Lancaster Laboratories, Ford New Holland, Clair Brothers, Tait Towers, Dart Container, and the Jay Group, most of whom are already frequent customers of Chef Mazzocchi. These demographics will give both The Leola Inn & Suites and Mazzis an enormous opportunity to market their business services. The Leola Inn & Suites will be very aggressive in calling on this local business community, and will compliment the efforts of Mazzis own marketing efforts.


3.2 Preliminary Marketing Plan

Marketing Plan Summary: The following is the draft of a marketing plan developed by Middle Creek Design, which will be finalizing the Marketing Plan after financing for the project is secured. Middle Creek Design has been selected after interviewing several small and medium size marketing and design firms.

Objective:

Develop an effective marketing and advertising plan that generates public interest in a new restaurant venture in Lancaster County, PA.

Overall Marketing Plan

Survey regional restaurant customers. Evaluate competitors' strengths and weaknesses. Establish target market demographics. Issue press releases to all media outlets with invitations to meet with principal

owners of the restaurants at the site. Seek feature article opportunities. Develop newspaper, magazine and radio advertisements, with the major focus on

radio. Also do web site with links to visitors center. Develop marketing materials, possible frequent dining card with newsletter and

special discounts for members. Develop strategic partnerships with local theaters, charities, and associations.

Place ads in program guides and tourist booklets. Do targeted direct mail pieces to these organizations.

Issue press release concerning following: When restaurants are close to opening, have invitation only Open House party for

media, public figures, and business owners. Proceeds should go to a charity located in Lancaster.

Develop seasonal ads and promotional materials after opening.


RESTAURANT SURVEY

How often do you go out to lunch at a restaurant?

Once a month Once a week Two or more How often do you go out to dinner at a restaurant?

Once a month Once a week Two or more How do you choose a restaurant?

Phone book Referral from an acquaintance Advertisement Other___________

What type of restaurant do you go to the most?

Fast food Chain Neighborhood Fine dining

What type of cuisine do you prefer?

Oriental American Italian French Other______________

What do you feel is the most important feature ~n a restaurant?

Food quality Service Atmosphere Good Menu

What is your age group?

Under 20 20-30 30-40 50+ What other forms of entertainment do you enjoy? Check all that apply. Theater Movies Nightclubs Concerts Amusement parks


PR Campaign

When names and the logos are finalized, we will issue press releases to all local media, including Harrisburg, Baltimore and Philadelphia media outlets. The press releases will discuss the motel, restaurant , and principal players.

As the renovations continue, we will issue releases on a regular basis to keep the project in the news. We should also develop construction signage with "the future home of which will act as a small billboard for the restaurant facility.

When the opening date is established, we will issue releases about the upcoming opening celebrations.

Middle Creek Design Group will also be developing media contacts, scheduling interviews for principals, arranging for publicity photos of the facility and principals.

Media List

Lancaster Newspapers Harrisburg, Hershey and Lebanon newspapers Philadelphia Inquirer, Daily News All small regional newspapers Central Penn Business Journal WGAL, WPMT, WLYH, WHTM, WITF Lancaster County Magazine Central PA Magazine Barfly Monthly Penn Dutch Traveler Today's Lancaster Woman The Visitor's Center The Merchandiser


Advertising Campaign

Print Ads (optional). We recommend buying space from Lancaster Newspapers,

Lancaster County Magazine, the Coupon Clipper, Central PA Magazine and the Bar Fly Monthly. A weekly presence in the entertainment section of the Lancaster newspapers is advisable. Ads should also be placed in programs for all local theaters.

Radio Ads (optional). Possible stations include WARM, WLAN, the River, Q107 and WIOV. Thirty-second spots should run at evening drive times with the bulk of the time purchased on Wednesday through Friday.

Billboards (optional). The small billboards that appear on buses would be preferable to a large static board. They are viewed by more of the public and are less expensive.

Television(optional). Because of the expense involved and the limited exposure, we don't feel that television is a viable option to make an impact in the market. We will be pursuing the local stations for interviews and appearances on the local talk shows as part of our PR campaign.

The Web. A website presence will be designed and developed in a manner to compliment the operations of Mazzis and the Leola Inn & Suites. Various marketing strategies will be explored to make the website experience an integral part of the sales process.


4. Financial Statements

4.1 Capital Equipment Budget

(See Accompanying Attachment)


4.2 (3) Year Projected Pro Forma Statement



4.3 (3) Year Projected Sales Forecast



4.4 Preliminary Staffing Schedule



5.0 Lease and Equipment Schedule

5.1 RMDS Enterprises, L.L.C Retail Lease Agreement



5.2 Singer Equipment Schedule and Pricing



5.3 Preliminary Equipment Leasing Schedule and Bids

(See Accompanying Attachments)

Equipment

1. Ice Machine Approximate Value $3,920

See Items No. 15 & 15.1 on Plans and on Singer Equipment Price List

2. Expresso & Coffee Machine Approximate Value $5,000 ABCD Coffee Co.

3. Point-of-Sale System Approximate Value $20,000 Touch Pro

See Attached

4. Dish Washing Area See Items No. 24, 25, 26, and 27 on Plans

See Attached


6.0 Exhibits

6.1 Architectural Plans and Specifications



6.2 RMDS Enterprises, L.L.C. Operating Agreement



6.3 Personal Financial Statement


Business Plan For Mazzi's For Ralph by Stan Caterbone

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