Zara restaurantandlounge

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Table of Contents

Page 1

1.0 Executive Summary.............................................................................................................................1Chart: Highlights ......................................................................................................................2

1.1 Mission ........................................................................................................................................21.2 Keys to Success ........................................................................................................................21.3 Objectives ...................................................................................................................................3

2.0 Company Summary.............................................................................................................................42.1 Company Ownership .................................................................................................................42.2 Start-up Summary ......................................................................................................................4

2.2.1 Location & Operations..................................................................................................5Chart: Start-up .........................................................................................................................6Table: Start-up .........................................................................................................................7Table: Start-up Funding ..........................................................................................................8

3.0 Services................................................................................................................................................83.1 Zara Menus...............................................................................................................................10

4.0 Market Analysis Summary................................................................................................................114.1 Market Segmentation ..............................................................................................................11

Table: Market Analysis .........................................................................................................12Chart: Market Profile (Pie) ...................................................................................................12

4.2 Target Market Segment Strategy...........................................................................................124.3 Service Business Analysis .....................................................................................................13

4.3.1 Competition and Buying Patterns .............................................................................135.0 Strategy and Implementation Summary ..........................................................................................14

5.1 Competitive Edge....................................................................................................................145.1.1 Competitor Analysis ...................................................................................................14

5.2 Marketing Strategy ..................................................................................................................175.2.1 Marketing Program .....................................................................................................19

5.3 Sales Strategy..........................................................................................................................205.3.1 Sales Forecast ............................................................................................................21

Table: Sales Forecast.................................................................................................21Chart: Sales Monthly ...................................................................................................21Chart: Sales by Year ...................................................................................................22

5.4 Milestones ................................................................................................................................22Table: Milestones..................................................................................................................23

6.0 Web Plan Summary ..........................................................................................................................247.0 Management Summary ....................................................................................................................24

7.1 Management Team .................................................................................................................267.2 Personnel Plan .........................................................................................................................27

Table: Personnel ...................................................................................................................298.0 Financial Plan ....................................................................................................................................30

8.1 Investment Opportunities.........................................................................................................308.2 Important Assumptions............................................................................................................31

8.2.1 Risk Analysis/Mitigation .............................................................................................33Table: General Assumptions ...............................................................................................34

8.3 Profit and Loss Statement ......................................................................................................35Chart: Profit Monthly .............................................................................................................35Chart: Profit Yearly ................................................................................................................36Chart: Gross Margin Monthly ...............................................................................................36

Table of Contents

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Chart: Gross Margin Yearly..................................................................................................37Table: Profit and Loss ..........................................................................................................38

8.4 Break-even Analysis................................................................................................................39Table: Break-even Analysis .................................................................................................39Chart: Break-even Analysis .................................................................................................39

8.5 Cash Flow Statement ..............................................................................................................40Chart: Cash ...........................................................................................................................40Table: Cash Flow ..................................................................................................................41

8.6 Balance Sheet Statement .......................................................................................................42Table: Balance Sheet ...........................................................................................................42

8.7 Business Ratios .......................................................................................................................43Table: Ratios .........................................................................................................................44

8.8 Expansion, Payback & Exit Strategy .....................................................................................45Table: Sales Forecast ...............................................................................................................................1Table: General Assumptions ....................................................................................................................2Table: Profit and Loss ...............................................................................................................................3Table: Cash Flow .......................................................................................................................................5Table: Balance Sheet ................................................................................................................................6Table: Personnel ........................................................................................................................................7

Zara Restaurant & Lounge

Page 1

1.0 Executive Summary

Our initial statement to Investors and Financial Lenders, this restaurant/ethnic food businessplan, is a candid disclosure of the Zara Restaurant & Lounge business proposal - our intentis to set realistic business expectations, and eliminate any questions about the profitability ofthis business venture.

Entrepreneurs have a tendency to paint the restaurant business plan with a very optimisticbrush, highlighting strengths and camouflaging the risks. We, as business owners, have avested stake and financial commitment in the success of this restaurant. Our intent is to havea definitive business, financial, and marketing plan that not only serves our need for capitalfinancing, but is utilized as our daily business roadmap. We have taken all precautions to validateour business and financial models, focusing on realistic projections. We have accomplished thisas follows:

1. Our financial model is rooted in industry facts, not optimism. We have based costson our vast industry and practical experience with similar ventures, validation againstNational Restaurant industry cost averages, and analysis against local Atlanta marketaverages. We have taken a collective look at all figures to make solid business estimates.

2. Our business concept was derived from detailed Market Analyses. Instead ofbuilding a business around a preconceived concept, we analysed the market findingsand built a concept around our consumers. In other words, our business is built to servicean unmet consumer 'want'.

3. A buffered financial plan that ensures adequate capitalization. A contingencybuffer is included in the start-up cost to ensure the business in not under financed, aswell as giving the business adequate funding to sustain it in the first six months of start-up. Our industry experience confirms a longer ramp-up stage for restaurants over otherretail/service businesses. A common mistake for new entrepreneurs , but fully addressedin this business plan.

4. A solid Risk Mitigation Plan. We have evaluated traditional and non-traditional risksassociated with Restaurant failure and accounted for them directly in the business plan.Instead of dismissing the risks, we have identified valid mitigation strategies for each.

5. Deep Management Experience. Our management team has 20 years combinedexperience, involved with over 86 restaurant openings, and deep involvement with theAtlanta restaurant industry.

The total capital requirement to launch Zara Restaurant & Lounge is $740,000, of which$643,000 is allocated to start-up capital, and $97,000 as business operations cash reserve.

This Plan is being submitted in order to secure a Business loan for $430,000. The loan will beused towards Equipment purchase, Design, Construction, and Operational Start-Up expenses.Owners, Mr. Alex Hunte and Mr. Peter Smith are investing $110,000 in personal capital. PrivateInvestors, who will be part owners with a non-managerial interest in the business, will contributethe remaining $200,000.

As owners, our commitment is to take personal accountability for all financial debt. We havetaken the necessary precautions to ensure the business is fully capitalized, and haveaddressed all financial shortfalls to ensure a successful business start-up. Under a realistic


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scenario, the company should have over $84,000 in cash balance the third year. Even withthe worst-case sales scenario, we reach a Net Worth break even at the end of Year 5. On alinear projection, the entire financial debt will be retired by Year 7.

1.1 Mission

· Zara will be an inspiring restaurant, combining an eclectic atmosphere with excellent andinteresting food. The mission is to have not only a great food selection, but alsoefficient and superior service - customer satisfaction is our paramount objective. Zara willbe the restaurant of choice for a mature and adult crowd, couples and singles, young andold, male or female.

· Employee welfare, participation, and training are equally important to our success.Everyone is treated fairly and with the utmost respect. Our employees will feel a part ofthe success of Zara Restaurant & Lounge.

· Our concept combines variety, ambiance, entertainment and a superior staff to createa sense of 'place' in order to reach our goal of overall value in the dining/entertainmentexperience. We offer fair profits for the owners and investors, and a rewarding place towork for the employees.

1.2 Keys to Success

1. Unique, Innovative & Contemporary: The creation of a unique and innovative finedining atmosphere will differentiate us from the competition. The restaurant will stand outfrom the other restaurants in the area because of the unique design and decor. We willoffer a fine dining experience in an electric atmosphere.


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2. Product quality: great food, great service and atmosphere.

3. ‘Spice of Life' Menu: The menu will appeal to a wide and varied clientele. Our eclecticmenu features regional specialties around the globe, from Spanish ceviche, to Thai andIndian curries, to local crabcakes.

4. Employee Retention Focus: Employee retention and development programs will be aprimary focus and success platform for this business. Through these programs, we willbe able to draw seasoned and elite professionals and build a committed work force. Wehave budgeted for a stock option program for Chef and Management positions tosubsidize a lower salary base. This lowers our immediate overhead and attracts qualitystaff.

5. Cost Control Focus: We will control costs at all times, without exception. Cost Controlwill be an integrated function of the restaurant from the onset. Cost control is aboutmanaging the numbers - interpreting and comparing the numbers that impact the bottomline. 80 percent of the success of a restaurant is determined before it opens. Our focus isto reduce the cost of goods sold to meet our profit margin goals by managing thefollowing crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory,Rough Preparation, Service Preparation, Portioning, Order Taking, Cash Receipts, BankDeposits and Accounts Payable. We will use of this restaurant/ethnic food business planto track actual costs against our forecasts in managing the business.

Due to intense competition, restauranteurs must look for ways to differentiate their businessto achieve and maintain a competitive advantage. Midtown/Downtown Atlanta's redevelopmentrequires a place that will fit into the 'new look' of the community, one that is contemporaryand entertaining. Zara will fill that niche.

1.3 Objectives

Zara Restaurant & Lounge's objectives for the first three years of operation include:

· Keeping food costs at less than 35% of revenue.

· Improving our Gross Margin from 65.41% in Year 1 to 67.10 in Year 2. These areattainable targets; our ‘stretch' is to attain 70.73% by Year 3.

· Keeping employee labor cost between 37-39% of total sales.

· Remaining a small, unique restaurant with eclectic food and service.

· Averaging sales between $1,200,000 - 1,500,000 per year.

· Promoting and expanding the Zara restaurant concept as a unique Midtown destinationrestaurant.

· Expanding our marketing and advertising in Atlanta and in the neighboring suburbsto increase our customer base.

· Achieving a profitable investment return for investors for Years 2 - 6.


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2.0 Company Summary

The Design

Zara Restaurant & Lounge is unique to Midtown Atlanta. The restaurant features 3 venues in one(a concept called ‘Multi-Branding'): A Tapas Lounge, Cosmopolitan Bar, and Full Service Dining.This concept offers customers variety, offering multiple dining and entertainment options within asingle establishment. The spatial and menu divisions will broaden our appeal and provide ourcustomers with a different experience on each visit.

The atmosphere caters to a young but mature adult crowd. This is not a family diningestablishment. Total space requirements are 3,000 square feet. In total, the restaurant willprovide seating for 110 patrons. Where possible, consideration will be given to incorporate adining patio. Zoning, parking, and accessibility issues will be reviewed as key criteria. We willdraw on our Advisory Board as part of the site selection and lease negotiation.

The Menu

Zara is focused on servicing Atlanta's growing demand for an ethnic eating experience. For lackof a better term we are launching a ‘multi-ethnic' cuisine restaurant - a restaurant conceptthat responds to Atlanta's need for selection and choice. Zara is a complimentary mingling ofinternational cuisine on a single menu. The Midtown demographics fit this concept perfectly.

The ManagementOur management team has over 48 years combined experience in food, restaurant and hotel,business management, finance, and marketing arenas.

2.1 Company Ownership

The restaurant will start out as an LLC corporation, owned by its founders, Zander Hunte andPeter Smith. Mr. Smith will function as the General Manager and Executive Chef, and Mr. Hunteas Managing Partner.

Mr. Hunte and Mr. Smith have a long-standing professional relationship in the restaurantindustry, stemming back to Toronto, Canada. Mr. Smith is an accomplished restauranteur, havingowned several full-service restaurants. He currently owns Brassaii Restaurant (www.brassaii.com), and Bauhaus Bar and Nightclub. Mr. Smith is also an international Restaurant Consultantfor top organizations such as the Starwood Group, who own the hotel chains of The Westin,Sheraton Hotels, Four Points, St. Regis, and W Hotels.

Mr. Hunte has a background in International Business Management, and is certified inRestaurant and Hotel Management. Under the management of Zander Hunte, Myth Restaurantwas a feature restaurant in Toronto, and distinguished as a top 10 restaurant while under hismanagement from 1992 - 1995.

2.2 Start-up Summary

We are currently negotiating a restaurant space of 3,000 sq. ft. in Midtown Atlanta, Georgia,


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and will open Zara in October of this year.

Our start-up costs are mostly expensed equipment, furniture, painting, reconstruction, rent,start-up labor, liquor license, and legal and consulting costs associated with opening ourrestaurant. At the start of business, $97,000 will be allocated for business operations reserve.This is a solid start-up forecast based on our market analysis and our knowledge andexperience in the industry.

We will purchase the following $73,311 worth of current assets during start-up :

· Fixtures and Lighting: $32,250· Bar Equipment: $26,183· Sound and Televisions: $8,378· Office Equipment (2 Computers, Fax, Printer, Safe): $6,500

Long-term Assets in the amount of $65,000 include all kitchen equipment.

We have budgeted for the services for a premier Restaurant Consultant familiar with theAtlanta Market. This is especially key during the site selection and start-up stage. This companywill have an integral role in validating the final restaurant location and personnel selection, andparticipate on the Zara Advisory Board.

The two owners are personally committing $110,000 of capital, plus a $300,000 SBA 7(A) loanguaranty. In addition, we have obtained a $130,000 grant from the city towards restoration ofour historical building, as part of the city's Midtown revitalization program, contingent uponlocating in the proposed space. We are seeking $200,000 of equity investment to fully fundZara's startup costs.

2.2.1 Location & Operations

Restaurant Location

Midtown Atlanta is the location selected for the Zara concept. The outlook for the future ofAtlanta's Midtown district is exceptionally positive and the most progressive development areain the city. Developers are infusing over $50 billion in Commercial, Residential, and Retaildevelopment. Zara's will benefit from Atlanta's desire to revamp the Midtown district with a$130,000 renovation grant for restoring and renovating the 100 year old property we plan tolease.

The market has been carefully selected and tested for the necessary demographics and retailtraffic necessary to meet the goals laid down for profitability. The busy Midtown commercial/residential location has been chosen based upon a successful demographic model and a trafficcount of more than 33,000 cars daily.

Restaurant DesignSingle-Level Design Concept: The total space requirement is 3,000 square feet. Therestaurant will feature a comfortable and open concept design. The central dining area willallocate 76 seats, the lounge 22 seats, and the dining bar with 12 seats. In total, the restaurantwill provide seating for 110 patrons. Where possible, consideration will be given to incorporatea dining patio. Zoning, parking, and accessibility issues will be reviewed as part of this analysis.

Optional Patio: During the busy summer months customers can also sit outside on our patio


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and we will offer a special summer menu, featuring lighter fare, exotic drinks, as well as non-alcoholic offerings. The patio setting will be a fun and casual atmosphere for the summer crowd.

Operating Criteria

The restaurant will be located in Midtown Atlanta. The restaurant will service lunch, dinner,and after-hours dining during the week and weekends. The restaurant will operate during peakservice time to take advantage of street traffic, and after-hour patronage from theentertainment facilities in the area. Service will be available during the following hours:

Lunch: Monday to Saturday, 11 a.m. - 2:30 p.m.

Dinner: Monday to Saturday, 5:30 p.m. - 12 midnight

Sundays - Market brunch takeout only.


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Table: Start-up

Start-up

Requirements

Start-up Expenses

PROJECT MANAGEMENT $0

Restaurant Consultant (4 months) $15,911

DESIGN $0

Architectural Design $2,195

Structural & Plumbing Design $1,368

Mechanical & Electrical Design $2,155

Graphic Design $1,185

Electrical & Structural Engineering Fees $2,592

Design Consultants (Kitchen, Interior & Dining) $9,119

Engineer & Architect Fees $7,040

CONSTRUCTION $0

Plumbing $33,244

HVAC (Air Return, Air Ducts, etc.) $19,250

Electrical $7,964

Disposal & Demolition $4,122

Structural Construction (4 Months General Labour) $52,099

Facade (Exterior Construction) $3,092

Plaster (Dry Wall) $2,061

Mill & Metal Work $8,244

Interior Finishes (2500 - 3000 sq. ft.) $14,538

Flooring $14,622

Fire Alarm System $3,092

Security & Phone System $4,615

EQUIPMENT $0

Liquor Control System - Lease $0

Stools, Chairs, Tables, Uniforms $38,025

POS (Point of Sale System) - Lease $0

Glassware, Flatware, Smallware (Bar & Lounge) $3,298

Glassware, Flatware, Smallware & Supplies (FOH) $8,298

Dishwasher, Ice & Glasswasher - Lease $0

Kitchen Equipment Freight Fees $2,389

FF&E Taxes (Taxes on Purchase) $7,988

OPERATIONAL $0

Capitalized Legal Fees (LLC, Investor Agreements) $7,080

Software: Restaurant/Inventory $5,500

Software: Cost Control $6,000

Impact, Tap & Permit Fees $3,115

Business License & Temp Certificate of Occ. $1,615

Liquor Licenses $4,615

Util ities, Disposal, Tax & Insurance $9,275

Security Deposits (Phone/Elec/Gas/Water) $6,250

Initial Lease Deposits $6,250

Bank & Loan Closing Costs $6,250

Web Site Construction $5,800

Initial Marketing, Training & PR $19,550

Research & Development $3,050

Start-Up Salary (Mngt & Chefs) $58,050

Recruiting (Staff) $14,550

Inspections $750

Initial Cleaning Services $1,000

Total Start-up Expenses $427,209


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Start-up Assets

Cash Required $97,099

Start-up Inventory $27,500

Other Current Assets $73,311

Long-term Assets $65,000

Total Assets $262,910

Total Requirements $690,119

Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $427,209

Start-up Assets to Fund $262,910

Total Funding Required $690,119

Assets

Non-cash Assets from Start-up $165,811

Cash Requirements from Start-up $97,099

Additional Cash Raised $49,881

Cash Balance on Starting Date $146,980

Total Assets $312,791

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabil ities $300,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabil ities (interest-free) $0

Total Liabil ities $300,000

Capital

Planned Investment

Zander Hunte $60,000

Peter Smith $50,000

Investor 1 $40,000

Investor 2 $40,000

Investor 3 $40,000

Investor 4 $40,000

Investor 5 $40,000

Midtown Revitalization Grant $130,000

Additional Investment Requirement $0

Total Planned Investment $440,000

Loss at Start-up (Start-up Expenses) ($427,209)

Total Capital $12,791

Total Capital and Liabil ities $312,791

Total Funding $740,000

3.0 Services


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Zara Restaurant & Lounge will feature international dishes, an eclectic ambiance, and superiorservice. Our food will be of the finest quality and prepared with exotic flare. Customersatisfaction is the driving force behind our success. We will change our menu every 4 months,but maintain the 'favorites' for loyal patrons. Portions will be modestly sized, garnished withstunning presentation.

Our wine list will be modest and primarily focused on wines from California, Spain, Portugal, andArgentina. Approximately 25% will be available exclusively by the glass, and the remaininglabels will be available by the bottle. We will also feature a moderate international beerselection on tap and in bottles. The Zara bar features a comprehensive selection of local andinternational spirits.

The kitchen staff will have the best in culinary education and work experience. Their creativetalents will compliment one another. The lounge and restaurant staff will offer the finestservice in an electric atmosphere and offer customers an extraordinary dining experience.


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3.1 Zara Menus

Zara's varied international menu will feature Thai, Chinese, Spanish, andother regional flavors. The menu flows together to create complementary elements. Normaldining will have a reduced Tapas, Appetizer and Entrée selection, while the Fusion Dim Sum menuwill have special items featured only for after-hours dining. The final menu will be defined bythe Executive Chef and paired with the wine menu. We have carefully selected apremium wine, beer, and alcohol listing, from which we will choose a modest rotating selection.Zara's marketing will focus on our exotic foods, but our hours, target market, and location willproduce significant alcoholic drinks sales. Tapas, in particular, are small dishes meant forsharing while drinking sangria, wine, or other mixed drinks, and the Tapas menu will play up thisidea with drink suggestions.

The list below offers a small selection of our opening menu offerings:

Zara Tapas

· Shrimp Baskets w/ sweet & sour peanut coulis Minced curry beef/chicken w/ onions in rotiwrap (or spring roll)

· Mixed Seafood Ceviche w/ couscous siding· Bamboo Chicken Satay w/ kaffir lime and Sesame marmalade

Zara Appetizers

· Bread basket served with Olive oil, Black Pepper, and Goat Cheese dip· Blue Crab Fritters with Mango-Tamarind sauce· Crab Cake medallions w/ Shrimp & Lobster ‘Zara'

Salads

· Mixed Greens with Spanish sherry wine vinaigrette· Asian Pear and Endive Salad with Blue Cheese & Walnuts

Entrees

· Tequila Scallops w/ a Spanish sherry reduction· Thai Red Chili rubbed shrimp· Voodoo Prince Curry Chicken and Bock Chow w/sticky rice in Banana Leaf· Herb Roasted Chicken with ‘Zara' Coo-Chee (House) spices

Desserts

· Chocolate Chunk Bread Pudding w/ Bourbon Cherry sauce· Zara Chocolate Explosion – Milk, Dark and White chocolate· Zara Fruit Plate

Specialty Drinks & Coffees ($3.5 - 9.5)A key source of revenue for the restaurant will be alcohol and bar sales. The restaurant willfeature exotic drinks on a separate menu. Alcoholic drink specials will be featured, as well as a


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large non-alcoholic selection. After-hours bar service will feature selections of non-alcoholicdrinks to increase bar sales during lunch and after regulatory hours. Bar pricing is competitive;prices range from $3.50 to 6.95. Non-alcoholic drinks will be in the higher price bracket due topreparation requirements. Prices will range from $4.75 to 9.50.

4.0 Market Analysis Summary

Instead of building a business around a preconceived concept, we conducted marketresearch and built a concept around our consumers. Our market analysis identified the followingkey drivers as areas of opportunity to service Atlanta's restaurant customers:

1. Portion Selection: Nearly 95% of our surveyed focus group endorsed having a choiceof different size portions. This statistic is in line with findings reported bythe Tableservice Operator Survey. Zara's Tapas concept is built to offer different-sizedportions. Our customers want the option to choose what satisfies their appetite.

2. Menu Variety: Ethnic restaurants are increasing in Atlanta. The proliferation ofinternational cookbooks, food magazines, TV cooking shows and imported goods offersample evidence that America, as a whole, is currently on an international tasting spree.In fact, eating places that identify themselves as ethnic establishments numberednearly 78,000 in 1999 and recorded sales of $30.5 billion. Our research results donot identify any single ethnic style of restaurant as desired, but rather suggest thatincorporating strong multi-ethnic influences in the menu selection will be popular. Again,variety is the underlying element for this concept.

3. The Dining Experience: Customer satisfaction with food and service has been andcontinues to be of utmost importance, but our findings indicate that the décor, lighting,bar, and other options to improve the dining experience are also factors incustomer decisions. Zara takes all these factors in consideration for the design of thiscosmopolitan restaurant.

4. Reasonable Prices: This was no surprise given the economic tide. Although therestaurant industry as a whole has seen growth in 2002/2003, customers aredemanding value for their dining dollar. Zara's menu is priced at a mid-tier level, with noentrée over $20. In addition we have an extended Tapas and Appetizer selection pricedbetween $3.50 - $9.50, allowing budget dining in a full-service restaurant.

4.1 Market Segmentation

Zara's Restaurant & Lounge intends to cater to a wide customer base. We want everyone to feelwelcome and entertained. We have defined the following groups as targeted segments thatcontribute to our growth projections:

· The Business Person· Downtown Atlanta Couples· The Destination Customer· High-End Singles· Tourists

These particular market segments are 25-45 years old, have disposable income, and are


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seeking upscale, trendy, and comfortable restaurant options. These are the types of people whofrequent other restaurants and bars in the area. They are likely to spend more on experiencesthey perceive as unique, cosmopolitan, and sophisticated. They are also the most open to tryingsomething new, foodwise, and will embrace our international fusion cuisine.

Table: Market Analysis

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Business Person 18% 9,925 10,223 11,348 11,688 12,039 4.95%

Downtown Atlanta Couples 32% 17,645 18,527 20,565 21,593 22,673 6.47%

Tourists 13% 7,168 7,311 7,896 8,054 8,215 3.47%

The Destination Customer 8% 4,411 4,499 4,724 4,818 4,914 2.74%

High-end Singles 29% 15,991 16,950 18,815 19,944 21,141 7.23%

Total 5.76% 55,140 57,510 63,348 66,097 68,982 5.76%

4.2 Target Market Segment Strategy

The Business Person: They work hard all day and often stay overnight in a strange city.They need a competent establishment that helps impress clients and prospects. Afterward,they want to relax and use the money they are making (or is expensed by their company).They spend the most on drinks, food and tips. Zara's cosmopolitan flair and comfortableatmosphere will be perfect for sophisticated business people, whether they live in and aroundAtlanta or are here for work.

Downtown Atlanta Couples: The restaurant will have an intimate, romantic, enticing adultatmosphere that suggests "date." Zara's will be the best date location in town. These youngMidtown couples are generally very successful working professionals. In most cases they are


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budgeting to eat out on a regular basis, as they don't have the time to prepare food nightly.

The Destination Customer: Atlanta is a very 'sectioned' city, and consumers often look onlyin their own neighborhoods for restaurant options. Zara will break these habits, using marketingto draw customers from outside the main city limits. Zara will be a destination restaurant. OurDestination Clients tend to be new suburbanites that miss the excitement of the inner city. Theyhave disposable income, and will spend quite a bit on such outings. Zara's will be especiallyappealing to married suburban couples indulging themselves with a "date night" downtown,away from the kids. Many of these consumers are new to Atlanta from larger cities, accustomedto dining within the city and at non-franchised restaurants.

High-end Singles: We will attract them with our eclectic atmosphere and layout. Ourinternational menu, striking decor, entertainment and events, excellent service and engagingclientele will confirm the feeling of being in "the in place" in Atlanta. These are the individualsthat pride themselves on socializing and dining at the premier locations - The Image Seekers.

Tourists: Atlanta attracts many vacationers during the summer months of May throughSeptember. Zara's will be a destination dining locale, with its attractive atmosphere, internationalmenu, and lounge. A large percentage of the tourist population are vacationing singles, here tosocialize and be entertained. This is especially true for the tourist population that visit forsporting and social events - they are not interested in family establishments.

4.3 Service Business Analysis

The restaurant industry is highly competitive and risky. The owners know this through their manyyears of experience opening, running, and improving restaurants across North America. Most newrestaurants opened by inexperienced owners struggle or fail. However, those based on solidunderstandings of the market needs, and management of inventory and staff have a much higherchance of success, especially when combined with prior experience in the restaurant industry.

Restaurants make money by taking inexpensive ingredients, combining them in creative ways,cooking them properly, and selling them at a much higher price. Any ingredients wasted in thekitchen are money thrown out. Any time wasted in seating customers, taking orders orpreparing food is money walking away. While some entrepreneurs think that success is assimple as a good location and a trendy concept, we know the truth:

To succeed in the restaurant industry, you need an understanding of the risks andfinancial conditions, the ability to handle enormous pressure, and the organizationalskills to bring off what is essentially a giant catered party, two to three times a day.

4.3.1 Competition and Buying Patterns

In 2003, the top ten Atlanta restaurants shared two things: cozy, hip interiors and reasonablypriced, regionally specialized menus. Only one of them offered traditional "southern" cooking. Andhalf of them were located in Midtown. Our competitors are heading in the right direction, butonly Zara is based on sound market research in the local market.

Atlanta consumers are seeking variety and new experiences. Location is clearly important, but so


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is atmosphere and distinctiveness. Our marketing challenge is thus to stand out from ourcompetitors, not only as the "new" restaurant, but as one that offers consistently high qualityfood, menu variety, and a unique atmosphere. Maintaining our edge will depend partly onmarketing ourselves as an adult-only destination, and not a family restaurant.

5.0 Strategy and Implementation Summary

Our strategy is simple. We intend to succeed by giving people a combination of excellent andinteresting food in an environment that appeals to a wide and varied group of successful adults.

We will focus on establishing a strong identity in our community with a grand opening. Our mainfocus in marketing thereafter will be to increase customer awareness in the surroundingcommunities. We will direct all of our tactics and programs toward the goal of explaining whowe are and what we do. We will keep our standards high and execute the concept flawlessly,so that word-of-mouth will be our main marketing force.

We will create an appealing and entertaining environment with unbeatable quality at anexceptional price. As an exciting and eclectic restaurant, we will be the talk of the town.Therefore, the execution of our concept is the most critical element of our plan.

All menu items are moderately priced for the area. While we are not striving to be the lowest-priced restaurant, we are aiming to offer exceptional food at reasonable prices for the averagerestaurant diner.

5.1 Competitive Edge

Zara's competitive edges are:

1. The owners' thorough understandings of opening and running a restaurant2. An extraordinary contemporary restaurant design3. International menu with featured menu changes every 4 months4. Unique, 3-Tiered spatial layout5. Chef Co-op program to allow new entrants, trainee and featured chef6. Chef/Management Stock Incentive Program.7. Inner and Outer City Marketing campaign (i.e. "Come to Town" promotions)8. Employee Training, Incentive and Retention program

5.1.1 Competitor Analysis

Below are excerpts from our competitive analysis study.

1. The Kitchen (Direct Competitor):

We were able to draw some conclusions from this analysis that helped defined theconcept and positioning for Zara: 1) Keep the menu pricing modest but offer superior foodquality and presentation. We plan to keep the menu prices under $20; 2) Midtown is aprime restaurant location. One Midtown Kitchen is in an obscure location but hasthrived as one of the more successful restaurants in the area; and 3) The customer


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base in this segment of Atlanta is ready for after-hours dining, and is willing to travel toestablishments that accommodate their needs.

2. Lunaci (Direct Competitor):

This restaurant is a main competitor for Zara, a casual dining restaurant that has evolvedto be a great success story for the Midtown district. This restaurant served to validate1) the tapas concept appeal for Midtown customers; 2) the evolving need for after-hoursdining; 3) tapas as a good food concept for after-hours dining (smaller portions, smallerprice); 4) the appeal of live Entertainment.

3. Cumulus (Indirect Competitor)

This restaurant has grown in popularity over the years, and has gained popularity as adestination restaurant that can cater to business professionals as well as the localresidents. The menu is somewhat formal for this market segment, but the bar attracts agood crowd. During this study it was evident that some patrons came exclusively to sit atthe bar, without any intent of dining in the restaurant.

Cumulus is more of a formal dining restaurant and meets a certain need within thecommunity, but I don't see it as a direct competitor of Zara. I do feel that it has somevery special elements that have helped it succeed over the past 3 years, which Zara canbenefit from.

4. Cheesecake Factory (#1 Restaurant Comparison):

Although Cheesecake Factory is outside of Zara's restaurant district and not considered adirect competitor, it was beneficial to analyze the most profitable restaurant in Atlanta tounderstand what contributes to their success. Cheesecake Factor offers several keyelements that would also benefit Zara: 1) Customer Satisfaction through moderate pricingand high-quality food; 2) Location selection to benefit from core customerdemographics, situated in a busy/popular area for both business and residential traffic; 3)Exceptional Service, from the Valet, to Hosting, to Wait, Bus, and Bar staff; and 4)Menu Variety, offering a broad array of menu items.

5. Swing Restaurant (Indirect Competitor):

This restaurant is not in our market district and therefore not a direct competitor,although we do consider it an ‘indirect' competitor. Swing incorporates some of thecharacteristics that we have mapped out for Zara. Those elements are: 1) A Tapas andEntrée menu – realizing that customers want varied meal size and variety; 2) A clubtype atmosphere to entice the single scene and to drive bar sales.

Swing validates some of the elements uncovered in our market research as to what thenew Atlanta diners are looking for. This serves as a true validation that the timing isright for the Zara Restaurant & Lounge concept.

Failed Restaurant Analysis: Mumbo Jumbo

Mumbo Jumbo was an Atlanta restaurant attraction in the downtown core, a strong competitorthat was severely impacted by the patronage demise after 9/11. I also completed an analysisof this restaurant back in 1999 and compared it to this current analysis in 2003. Several factorsled to closing of this restaurant:


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Location:This was a very cosmopolitan restaurant located in a core business community. Therestaurant was hidden in cross streets and away from the general street traffic. This was adestination restaurant and a secondary selection for the general customer base in this area.

Lesson Learned: As part of this analysis, we have determined that the downtown coreis not a good fit for the Zara concept. We will limit our site selection to the core Midtowndistrict and the upper Downtown district. Midtown is Atlanta's major growth district and isdeveloping the residential infrastructure in pace with the business infrastructure.

Customer Segment:Atlanta's downtown core is not ready for this type of restaurant. Atlanta's downtown core is abusiness district, and residential development for this area is at the Genesis state. The primarycustomer base is the business person and tourist. The largest percentage of this customersegment will be looking for a restaurant in which to conduct business or a familyestablishment; Mumbo Jumbo would not be a primary selection in either case.

Lesson Learned: Zara's target market demographics are perfectly in alignment withthe Midtown profile. Midtown has a business core as well as a residential core. We willlook to the business core for our primary daytime business, but to our residential corefor our dinner and after-hours patronage. In addition, the business core will look to Zaraas a place of socialization for dinner and after-hours unwinding. Mumbo Jumbodepended on the business segment for their lunch and dinner profits, andcustomers who would travel from outside the downtown district to eat at therestaurant – there was no static dinner segment.

Visibility:Hand-in-hand with location, this restaurant also suffered from poor visibility. In the downtowncore a large percentage of business is from walk-in traffic. The business and tourist customerstend to select a restaurant from touring the area and accessibility. Mumbo Jumbo was situatedon a cross street behind the main street.

Lesson Learned: Although being situated on a main street is not as key in theMidtown district, we will ensure that visibility is part of our site selection criteria. Inaddition, we will use signage and exterior décor as means to attract customers and getnoticed.

In all, this restaurant was a staple in Atlanta's downtown core for over 10 years, but keyrestaurant disciplines (Location, Customer Segment, Visibility) came back to hurt them as theeconomic climate changed.

Market Analysis Conclusion:

At the end of the day, everyone that sells prepared meals in this district is a Zaracompetitor, because we all compete for the same home meal replacement dollar. However,there are two segments of the restaurant industry that are our main competition: the casualdining restaurant and the fine dining value restaurant.

So, if the food and service is better at a fine dining restaurant than a casual restaurant, butprice has become a factor as a result of the economic turns, where is a customer more likelyto go?


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There is no absolute answer to the question, but the solution is to deliver the best food at thebest price with the highest level of service in one establishment. This is the very definition ofvalue and the concept at the heart of Zara's business model.

5.2 Marketing Strategy

Zara Restaurant & Lounge's Marketing strategy will be to promote our electric food, superiorservice, and exciting concepts to draw in the local repeat customers. Marketing initiatives willconcentrate on the following:

Building and Signage:The most important Marketing tool that we have is the exterior of our building, and our new sign.We budgeted a great deal into the renovations and decor to generate the aesthetic appeal ofZara. See attached Logo and Web design.

Customer Service:

In our years within the restaurant industry, customer service has always been the major drawfor the dining clientele. Food and atmosphere is far out-shadowed by superior customer servicethat turns a new customer into a repeat customer.

Management will demand the wait-staff provide the very best in quality services to thecustomer, making certain that they are content and satisfied with their dining experience. Wait-staff are thoroughly trained, and every 90 days they undergo a performance appraisal. This ispart of our Employee Manual, and Operations Manual guide.

Advertising and Promotion:

Our Advertising Plan and media schedule call for targeting customers directly through localpublications aimed at , respectively, singles, couples, and destination customers.

Management recognizes the key to success at this time of initial opening is extensive mediapromotion. This must be done aggressively in order to accomplish our service goals. A healthybudget is allocated for the first year. A primary part of the budget is allocated to create themedia and customer buzz for the month prior to opening and the next three months after thegrand opening. The full Marketing program is as follows:.

Media Objectives and Strategy:Establish our image as a unique Midtown restaurant with great service, value, and great foodserved in an eclectic atmosphere. We will maximize efficiency in the selection and schedulingof advertisements by:

· Selecting primary business publications with high specific market penetration, using TheCreative Loafing Dining Section, The Atlanta Journal Constitution, Atlanta City Search,and Social Diva, which all reach our targeted demographics.

· Scheduling adequate frequency of ads to impact market with menu items and promotions.· Where possible, positioning advertisements in or near entertainment/food related editorial.· Redirecting customers to our website to register for upcoming functions, VIP lists,

reservations, and flash media promotions.· Maximizing ad life with monthly and weekly publications.


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Working with The Reynolds Group Media Co. (Zara Advisory Board), we will develop anadvertising campaign built around our Zara Diner theme, menu offering, location, and decor.We will support this plan with ads that reinforce the Zara dining concept.

Additionally, we will develop a consistent reach and frequency throughout the year, targetingeach specific customer segment within a five-mile radius, and new 'suburbanites,' who stillappreciate in-town dining.

Promotional Campaign:

The best way to reach our potential customers is to develop an intense advertising campaignpromoting our Zara concept of "Spice of Life." In addition to standard advertising practices,we will gain considerable recognition through newspapers, newsletters and publicannouncements. Consumers will be encouraged to visit our website to be greeted with a flashmedia intro that highlights the restaurant, past happenings, upcoming attractions and ourdynamic menu.

Our periodic customer surveys and weekly menu item sales evaluations will help us to understandwhat advertising is working and what is not; basically, who we are reaching. Our goal is tounderstand our customer, measure the success of our direct marketing and media activities,and redirect advertising as effectively as possible.

Publicity Strategy:

Working with The Reynolds Group, Zara will focus on the following publicity strategies:

· Develop a sustained public relations effort, with ongoing contact between key editors andtop-level personnel at local dining publications.

· Develop a regular and consistent package update program for the major target media,keeping key editors abreast of all new promotions, and menu introductions.

· Establish contact with editorial staff for the purpose of being included in entertainment"round-ups"--product comparisons in dining publications and the local papers.

· Produce a complete Zara Restaurant history and menu offering piece to be used as theprimary public relations tool for all target media editorial contact. This will also beeffective for inclusion in press kits.

Press Release/Grand Opening: Zara Restaurant will release a series of press releases on theGrand opening.

Editorial Visitation: Leading up to the Grand Opening, and over the first 6 months ofoperations, we will invite the most influential reporters and editors from all local publications toZara Restaurant in order to evaluate our menu, service, and atmosphere.

Publicity Revenues: We anticipate at least 10% of our annual sales will be generated directlyfrom our publicity. A full media kit will be sent to all local publications, and releases on new menuitems will be made monthly.

Community: Zara will look for key opportunities to pair with local community developmentorganizations and radio stations to interface with our customers. We will continually look for localcommunity programs in which we can participate, in order to better our community, and givesomething back.


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5.2.1 Marketing Program

In line with our Marketing strategy, we will employ three different marketing tactics to increasecustomer awareness of Zara: In-Restaurant Marketing, Public Relations Marketing, and MediaMarketing. Our most important tactic will be word-of-mouth/in-restaurant marketing. This willbe by far the cheapest and most effective of our marketing programs.

Word-of-mouth/In-Restaurant Marketing

· Restaurant Night: Every first Monday of the quarter, we will have a special eveningfor restaurant people. A perfect night for the local area's restaurant owners, chefs andstaff to get together to discuss the market and food trends, and possible Co-op effortsto promote the Midtown district. This is not a conflict of interest, it is an effort toincrease visibility and patronage across the Midtown district. We will also invite theMidtown Alliance committee for their participation.

· Monthly Dating Connection: With the increasing appeal of Internet and speed dating,the restaurant will offer a monthly dating night. In addition to food and beverages,customers can choose from an array of dating packages up for auction.

· Wait Area Marketing: Wait staff will service appetizers to customers waiting to beseated or on the wait list.

· Live Entertainment parties· Special Events· Valentine's Day· Zara Halloween Masquerade party· Wine tasting weekend· New Year's Eve party

Public Relations Marketing

· Georgia Hospitality & Tourism V.I.P. Party: We will host a V.I.P. Dinner before the'Grand Opening.' This will serve the dual purpose of training our staff and introducingourselves to the community. The list of individuals we will invite comes from theChamber of Commerce, Georgia Hospitality & Tourism, and Midtown Development group.We want their full committment to the restaurant to draw the tourist dollars.

· Critics' Choice: Prior to the Grand Opening there will be two preliminary parties cateringto the Media and Critics community. We will encourage the media and restaurant criticsto meet at the restaurant and review the decor, service and food. This will be apreliminary review, where we will consider constructive input to make minor revisions priorto the true Grand Opening. This initial review and input will give critics and mediacommentors a stake in Zara's success, through their contributions to the final design.

· Brochures: Make a brochure for the in-town hotels and business establishments toprovide to their guests and staff, containing interior pictures of our restaurant, menusand prices.

· Government Relations: There are several Government offices in the Midtown/Downtownarea. We will approach them to cater business luncheons and private functions. This


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will offer us higher visibility for future functions and community events. Word-of-mouthreferral is very powerful and particularly amongst the business community.

· Private Functions: Target marketing to businesses for regular business lunch anddinner entertaining, and private functions.

Media Marketing

· Newspaper campaign: A very targeted media campaign to obtain featured articlesabout the restaurant in their Living, Entertainment and Dining segments. Notices of all liveentertainment segments and special features will be posted to local newspapers' calendarannouncements.

· Restaurant and Special Events Website: We have contracted with local designteams to deliver a high-quality, navigable, constantly updated website.

· Media Relations: Several media relations teams will be utilized to market the Restaurant.Social Diva and Green Frog are two media companies we will utilize for media relations.Both companies have an insightful presence and connection with our target market.

· Billboard Advertisement: One month prior to the opening, distinct billboard ads willadvertise the launch of the Restaurant.

· Inner & Outer City Marketing: We will budget to attract customers from the suburbs.

5.3 Sales Strategy

Our strategy is simple: we intend to succeed by giving our customers a combinationof delicious and interesting food in an appealing environment, with excellent customer service,whether on their first visit or their hundredth.

Our marketing strategies are designed to get critics and initial customers into our doors. Oursales strategies must take the next step and encourage customers to become repeat customers,and to tell all their friends and acquaintances about the great experiences they just had at Zara.

New restaurants often make one of two mistakes: they are unprepared or underprepared foropening, and initial poor service, speed, or quality discourages customers from returning, orthey spend all of their efforts at opening, and are unable to maintain the initial quality customersexpect on return visits, decreasing word of mouth advertising and leading to poor revenues.

Zara's sales strategy requires consistently high quality food, service, speed, and atmosphere.We can accomplish this by:

· Hiring employees who genuinely enjoy their jobs and appreciate Zara's unique offerings· Continually assessing the quality of all aspects mentioned above, and immediately

addressing any problems· Interacting with our customers personally, so they know that their feedback goes directly

to the owners · Evaluating food choices for popularity, and keeping favorites on the menu as we rotate

seasonal foods and specials


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5.3.1 Sales Forecast

The following sales graph is based on first year start-up estimates only. We anticipate that thebusiness will not be at full operating capacity until the sixth month of operations. This is due tothe competitive nature of the market and existing customer loyalty. All factors governing oursales progress are outlined below in the Important Assumptions section.

Our sales forecasts for years 3 through 5 are very conservative, compared to industrystandard growth rates. (See Ratios table for comparisons.)

Although we hope to do catering for local businesses and government offices with time, we willinsist on payment at delivery - we will not sell on credit.

Table: Sales Forecast

Sales Forecast


Sales

Total Sales Food $853,595 $959,047 $1,006,999 $1,047,279 $1,089,170

Total Sales Bar/Beverages $220,174 $252,041 $272,204 $293,981 $317,499

Other $0 $0 $0 $0 $0

Total Sales $1,073,769 $1,211,088 $1,279,204 $1,341,260 $1,406,670

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

Total Cost of Sales: Food $298,758 $322,240 $329,289 $336,048 $342,762

Total Cost of Sales: Bar/Beverages $72,657 $76,167 $77,687 $79,228 $80,835

Other $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $371,416 $398,407 $406,976 $415,276 $423,597


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5.4 Milestones

The following Milestones table lists important business milestones, with dates and managers incharge of each deliverable. The milestone schedule indicates our emphasis on planning andmanaging the details.


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Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Engage Restaurant Consulting

Firm

7/31/2004 7/31/2004 $0 Alex/Peter Owners

Site Selection 9/8/2004 9/29/2004 $0 Alex/R.Shafer Consultant

Final Restaurant Location

Approved


Investor Finance Phase 8/22/2004 10/22/2004 $0 Alex Owners

Investor Capital Secured 10/27/2004 10/27/2004 $0 Alex Owners

Investor Partnership LLC

Formed

10/28/2004 10/31/2004 $0 S. Hollier Legal

Interview for Construction Team 10/28/2004 11/3/2004 $0 Alex Owners

Recruit Chef (Equity Partner) 10/28/2004 11/14/2004 $0 Alex/Peter Owners

Receive Final Contractor Bids 11/4/2004 11/17/2004 $0 Peter Owner

Construction Budget Approved 11/19/2004 11/19/2004 $0 Alex/Peter Owners

Secured SBA Loan 11/1/2004 11/21/2004 $0 Alex/Peter Owners

Hire Restaurant Architect 11/20/2004 11/21/2004 $0 Alex/Peter Owners

Hire Interior Design Firm 11/20/2004 11/21/2004 $0 Alex/Peter Owners

Hire Kitchen Engineer 11/20/2004 11/21/2004 $0 Alex/Peter Owners

Hire General Contractor 11/20/2004 11/21/2004 $0 Alex/Peter Owners

Finalize Chef Partnership 11/15/2004 11/21/2004 $0 S. Hollier Legal

Construction Project Kickoff 11/24/2004 11/24/2004 $0 Contractor A Gen. Contractor

Finalize Lease Holder Budget 11/24/2004 11/27/2004 $0 Alex/Peter Owners

Finalize Lease 11/28/2004 11/28/2004 $0 R. Shafer Consultants

Restaurant Design Complete 11/25/2004 12/12/2004 $0 Contractor X Design Contract

Interior Design Complete 11/25/2004 12/12/2004 $0 Contractor Y Design Contract

Kitchen Design Complete 11/25/2004 12/12/2004 $0 Contractor Z Design Contract

Restaurant Opening Date

Approved


Finalize Menu & Wine Selection 11/21/2004 12/15/2004 $0 Chef/Peter Kitchen/Owner

Media Plan Review 12/15/2004 12/19/2004 $0 Alex/M.Zimm PR Marketing

Apply for Liquor License 12/15/2004 12/19/2004 $0 Alex/S.Hollier Owner/Legal

Apply for Construction Permit 12/15/2004 12/19/2004 $0 Contractor A Gen. Contractor

Submit Kitchen Plan for

Approval

12/15/2004 12/19/2004 $0 Contractor Z Design Contract

Board of Health Approval for

Kitchen

12/29/2004 1/31/2005 $0 Board City

Liquor License Approved 12/29/2004 1/31/2005 $0 Board City

Architect Review Board Approval 12/29/2004 1/31/2005 $0 Contractor X Design Contract

Corporate Brochure 2/2/2005 2/13/2005 $0 M.Zimmerman PR Marketing

Review Business & Marketing

Plan


Launch Zara Website 3/15/2005 3/15/2005 $0 Alex Media Marketing

Order Kitchen Equipment 2/1/2005 3/20/2005 $0 Alex/Peter Owners

Order Restaurant/Lounge

Furniture


Order Office Furniture &

Supplies


Business & Marketing Plan

Review


PR/Media Advertising (Phase 1) 5/1/2005 5/15/2005 $0 M.Zimmerman PR Marketing

Production and Completion of

Menus

5/5/2005 5/17/2005 $0 Chef/Peter Kitchen/Owner

Construction of Restaurant 2/2/2005 5/20/2005 $0 Contractor A Gen. Contractor

Pre-Opening of Zara Restaurant 5/24/2005 5/24/2005 $0 Alex/Peter Owners

Employee Training (Phase 1) 5/18/2005 5/24/2005 $0 Chef/Peter Kitchen/Owner


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Wine Class for Employees

(Phase 1)

5/18/2005 5/24/2005 $0 Peter Wine Distributor

Critics' Choice VIP Party 5/25/2005 5/26/2005 $0 M.Zimmerman PR Marketing

Final Construction Punch Out 5/21/2005 5/28/2005 $0 Contractor A Gen. Contractor

Restaurant Revisions 5/27/2005 6/2/2005 $0 Alex/Peter Owners

Employee Training (Phase 2) 5/27/2005 6/2/2005 $0 Chef/Peter Kitchen/Owner

Wine Class for Employees

(Phase 2)

5/27/2005 6/2/2005 $0 Peter Wine Distributor

Grand Opening of Fusion

Restaurant


VIP Party 1 6/3/2005 6/3/2005 $0 M.Zimmerman PR Marketing

VIP Party 2 6/4/2005 6/4/2005 $0 M.Zimmerman PR Marketing

Web Site & E-Mail Media

Launch

5/1/2005 6/5/2005 $0 Alex Media Marketing

General Public Opening 6/5/2005 6/5/2005 $0 Alex/Peter Owners

Launch 30-Day Grand Opening 5/1/2005 6/5/2005 $0 M.Zimmerman PR Marketing

PR/Media Advertising (Phase 2) 6/1/2005 6/14/2005 $0 Alex PR Marketing


Review



Review


Update Brochure 8/2/2005 8/13/2005 $0 Alex Media Marketing

Direct Mail 8/16/2005 8/16/2005 $0 Alex Media Marketing

Advertising (Phase 3) 9/1/2005 9/15/2005 $0 M.Zimmerman PR Marketing

Zara Masquerade Party 10/31/2005 10/31/2005 $0 M.Zimmerman PR Marketing

Direct Mail 11/1/2005 11/1/2005 $0 Alex Media Marketing

New Corporate Accounts (5) 9/1/2005 11/1/2005 $0 Zander/Peter Owners



Zara New Year's Party 12/20/2005 1/1/2006 $0 M.Zimmerman PR Marketing

Totals $0

6.0 Web Plan Summary

Zara Restaurant & Lounge will have a dedicated website. It will be the virtual business cardand portfolio for the company, simple, contemporary and well designed. Our site will offer ourmenus, prices, reviews and happenings at Zara. We will also have a monthly Paparazzi Reviewabout what did happen at Zara to get new customers interested in our restaurant.

Our website will be used to try out new offers, starting with an on-line order feature for theSunday Market Brunch, and expanding if the concept gains favor with our customers. A customerwill be able to order a selection for pickup using a credit card. Selections will be based on ourpre-packaged meals available during the Sunday Market Brunch. This is also a potential forcustomers needing catering.

The website will include email capabilities and online reservations and special events scheduling.

7.0 Management Summary

The strength of our management staff positions us for success. We have assembled a team thatembraces different disciplines, accomplished professionals with expertise in all areas of the


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business, including marketing and restaurant management.

The owners, Zander Hunte (Managing Partner) and Peter Smith (Executive Chef),have considerable experience in the restaurant industry.

In Year 2, we will hire a General Manager to handle the day-to-day Restaurant management.This will assist Zara's Restaurant & Lounge to grow even further.

You can't build investor confidence based on what you will do, but you can inspire confidencebased on what you have done. Attached is the portfolio of past success. This Zara Managementteam has deep roots in the restaurant segment, and have the practical experience to makethis venture another great success.


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7.1 Management Team

Zara Restaurant & Lounge, with more than 48 years of experience between the key officers,understands the importance of a strong management team. The strength of our managementstaff positions us for success.Day to day operational management will be conducted by Alex Hunte and Peter Smith, ashands on managers. They will advised and supported by their Advisory Board.

Zara's Advisory Board

· Stephen Hollier of Hollier Collier & Loewenthal: Corporate Attorney· John Katz of SS&G Financial Services: CPA· Robert Shaefer of Shafer Hospitality Services: Restaurant Consultant· Mary Zimmerman of The Zimmerman Group: Media & Public Relations consultant

Ownership & Management

Together, Alex Hunte and Peter Smith bring over 20 years of experience in the restaurantindustry to their new joint venture.

Alex Hunte: Managing Partner(Operations, Marketing, Financial and Business Development)

Mr. Hunte brings to Zara an accomplished restaurant background, exceptional businessacumen, and a lifetime passion for the restaurant experience. Alex has over 17 years of businessmanagement in the Information Technology industry. Like IT, successful ventures in therestaurant industry must balance capitalizing on new trends with continual quality assessment.Alex's understanding of day-to-day cash flow planning and staff management will be critical toZara's financial success.

Mr. Hunte has a background in International Business Management and Business Start-ups, andis certified in Restaurant and Hotel Management. As co-owner, Alex Hunte is responsible foroverall direction and operational management. Mr. Hunte is a strong business leader responsiblefor strategic planning and continued growth of restaurant services and business development. Inaddition, Alex will be the management lead for all public relations, financial and investor services.

Degrees, Certifications, and Professional Affiliations:

· MBA in International Business Management· B.S. in Computer Science· Certified in Restaurant & Hotel Management from Ryerson University· PMP (Project Management Professional) certification· Member of the Midtown Alliance· Business partner member of the National Restaurant Association.

Peter Smith: Managing Partner(Executive Chef and Restaurant Operations)

Mr. Smith is an accomplished restaurateur, having owned several full-service restaurants. Mr.Smith is responsible for the concept and the daily operations management, with yearly sales


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targets of $7 million.

In addition, Peter is the owner of Bauhaus Bar and Nightclub, and former owner of MythRestaurant, Ouzeri, and Kapilyo Restaurant, all financial and critical successes. Mr. Smith isalso an international restaurant consultant for top international organizations. Mr. Smith'sContracting responsibilities for Zara included logistics, Site and Lease Negotiations, ConceptDefinition, Start-Up and Financial forecast, Menu and Operations Management, as well asImplementation and Launch Management.

With a degree in Economics and an accomplished career, Mr. Smith contributes the experience ofhis past successes, and is charged with leading the Restaurant Operations, Staff Selection,Menu Definition and Training initiatives for Zara Restaurant & Lounge.

Managing Partner Responsibilities

In addition to the management of day to day operations, both managers, as principals within thecompany, will oversee menu development, purchasing, portioning, pricing and inventory control,including approval of all financial obligations of the company. They will plan, develop, andestablish customer service policies and objectives, and write, explain, and enforce an employee'smanual for all employee-related policies.

Responsibilities for hiring and firing employees lie solely with the two operations managers, andany decisions in these areas will be made jointly.

They will:

· Manage working capital, including receivables, inventory, cash and marketable securities.

· Perform financial forecasting, including capital budgeting, cash flow analysis, pro formafinancial statements, and external financing requirements.

· Prepare financial analyses of operations for guiding management, including reportswhich outline the company's income, expenses, and earnings.

· Direct preparation of budgets and financial forecasts and arrange for audits ofcompany's accounts.

7.2 Personnel Plan

We believe the personnel plan is in good proportion to the size of the restaurant and projectedrevenues. The staff will include 13 full-time employees and 8 part-time employees, who willwork a total of 754 manhours per week and generate an average monthly gross payroll of$27,308 for the first year in business. The estimated gross annual payroll of $399,588(including Partner Salaries) is 37% of total sales.

Wage salaries for service personnel (waitstaff, busboys, bartenders) do not include anticipatedtips. With average tipping rates for the Atlanta, Georgia area, and our menu prices, serviceemployees should average at least twice the minimum wage in any given shift. Skilledwaitresses and bartenders on weekends and evenings will make substantially more.


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Kitchen:

The Executive Chef will be assisted by:

· An Assistant Chef from a national search (1).· A Sou chef with considerable experience in different restaurants (1).· Cooks that work directly with Peter or the sous chef (2).· Prep cooks/dishwasher (2).· People cleaning the restaurant (2).

Restaurant Operations:

Alex Hunte will manage the Financial Management, Bookkeeping, PR/Media Advertising, andInvestor Services. Alex Hunte will also manage the daily Restaurant Operations.

Peter Smith will be the Restaurant Manager. He will be the primary responsible for dailyRestaurant Operations, taking care of Wait and Bar Staff. Peter will also take lead as theExecutive Chef working with the Head Chef.

· To help Peter, he will have servers that will work as ‘captains' (these people haveexperience in managing, waiting tables and bartending) and take care of service andmake sure the restaurant is in excellent shape (2).

· Servers that work part time (4).· Full-time bartender (1).· Part-time bartender (1).· Full-time busboy (2).· Part-time busboy (1).

Administrative Salaries (Partners):

· Zander Hunte: $ 48,000 per year· Peter Smith $ 32,160 per year


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Table: Personnel

Personnel Plan


General Manager (Year 2+) $0 $0 $28,000 $28,500 $29,000

Partner/Manager $48,000 $48,000 $48,000 $48,000 $48,000

Partner/Asst. Manager/Exec. Chef $32,160 $32,160 $32,160 $32,160 $32,160

Hostess (Full Time) $24,000 $24,500 $25,000 $25,500 $26,000

Hostess (Part Time) $13,200 $13,500 $14,000 $14,300 $14,800

Waitperson 1 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 2 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 3 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 4 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 5 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 6 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 7 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 8 $5,640 $5,640 $5,640 $5,640 $5,640

Waitperson 9 $5,640 $5,640 $5,640 $5,640 $5,640

Wait/Barperson $10,440 $10,440 $10,440 $10,440 $10,440

Bartender 1 $14,400 $14,400 $14,400 $14,400 $14,400

Bartender 2 $7,200 $7,500 $7,500 $7,500 $7,600

Busboy 1 $9,120 $9,120 $9,120 $9,120 $9,120

Busboy 2 $11,760 $11,760 $11,760 $11,760 $11,760

Busboy 3 $7,200 $7,200 $7,200 $7,200 $7,200

Assistant Chef $44,400 $44,400 $44,400 $44,400 $44,400

Sous Chef $32,400 $32,400 $32,400 $32,400 $32,400

Cook 1 $24,240 $24,240 $24,240 $24,240 $24,240

Cook 2 $18,960 $18,960 $18,960 $18,960 $18,960

Prep Cook/Dishwasher $12,288 $12,288 $12,288 $12,288 $12,288

Prep Cook/Dishwasher/Cleaning $12,960 $12,960 $12,960 $12,960 $12,960

Dishwasher 1 $8,640 $8,640 $8,640 $8,640 $8,640

Dishwasher 2 $5,700 $5,800 $5,800 $5,800 $5,800

Cleaning/Dishwasher $11,760 $11,760 $11,800 $11,800 $11,800

Open $0 $0 $0 $0 $0

Total People 20 24 25 25 25

Total Payroll $399,588 $400,788 $429,828 $431,128 $432,728


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8.0 Financial Plan

Zara Restaurant & Lounge financial model is based on a business concept to "Plan for theWorst, but Manage for the Best." We have approached the financial plan as follows:

The First Year projections anticipates a below average sales volume, below average seat turn,and above average food/beverage cost. This position will help us ensure sufficient financialplanning to accommodate a reasonable ramp-up period, and business success, also ensuring thatwe do not enter this venture under-capitalized.

Financial Pro Forma

In addition to the $110,000 of owner investment and $130,000 in grant monies, Zara is seeking$300,000 in long-term loans and $200,000 in investment for renovations, furniture, kitchenequipment, liquor license, food & restaurant supplies, legal fees, working capital, marketing andpersonnel.

The Financial Plan includes:

· Important Assumptions· Risk Analysis & Mitigation Plan· Sales Forecast (5.3.1, above)· Break Even Analysis· Profit and Loss Statement· Cash Flow Statement· Balance Sheet

8.1 Investment Opportunities

The Zara Investment Program allocates equity position of 20% for a total of $200,000 in investorcapital. The Investment structure is as follows:

Investment Opportunity


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Total Investor FundingOpportunity:

$200,000

Minimum Investment Amount $15,000

Investment Term (InvestorSelection)

3-5 Years

Total Equity Offering (1% per$15,000 Investment)

20% Max

Starting Year 2

Silver: Projected Annual IRR onInvestment of $15,000 - $49,000

10%

Gold: Projected Annual IRR onInvestment of $50,000 - $99,000

11%

Platinum: Projected Annual IRR onInvestment of $100,000 or more

12% + Residuals

Investor Payback Program

Each Investor will receive equity shares as a part owner, with a non-managerial interest in theRestaurant. Based on financial estimates, the maximum annual IRR is 12%. Over and above theinterest and principal repayment, Investors contributing $100,000 or more will receive residualsfor the life of the business as a bonus incentive.

As with our investors, our primary goal is to earn real profits and not ‘Paper Profits'. As suchwe will focus on expediting returns to investors where possible. Our existing payback structurewill begin paying dividend every quarter, starting in Year 2 of business operations. Investors willreceive quarterly interest and annual principal reduction payments over the full term of theinvestment. Payback to Financial and Private investors will take priority over any profit shares tothe owners, Alex Hunte and Peter Smith.

8.2 Important Assumptions

The financial plan depends on important assumptions, most of which are reflected in the financialstatements that follow. We have been cautious with our projections, and incorporate amitigation for all manageable risks. The key underlying assumptions are:

Economy

Slow Economic Recovery. We anticipate a slow-growth economy, recovering from an economicrecession.

Business Growth

Annual Growth Rate Percentage. We anticipate modest growth over the coming years. Thefinancials account for the following growth projections:

° Year 2: 6% Year 4: 4%


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° Year 3: 5% Year 5: 4%

Weekly Sales Variance. Saturday will typically be our best sales for the week. The salesvolume for all other days is represented as a percentage relative to Saturday. Therefore ourweekly sales will vary as follows:

Monday: 55% Thursday: 95%

Tuesday: 60% Friday: 90%

Wednesday: 75% Saturday: 100%

Seasonal Sales Variance. In Atlanta, October through the late season is the most productivesales period, while the summer months tend to be the slowest restaurant period. This trend isreflected in the financials though a seasonal variance as follows (where October is targeted tobe our most successful sales month):

June: 70% October: 100% February: 95%

July: 75% November: 95% March: 85%

August: 80% December: 95% April: 90%

September: 85% January: 85% May: 90%

Industry & Start-Up

Fiscal Year-1 Ramp-up. Our experience in the industry confirms a longer ramp-up stage forrestaurants over other retail/service businesses. Our Annual Sales Growth is based on attainingthe following seating capacity percentage per dining period:

· Year 1: After-Hours = 53%, Lunch = 70%, Dinner = 88%· Year 2: After-Hours = 70%, Lunch = 82%, Dinner = 100% (implied wait period)· Year 3: After-Hours = 80%, Lunch = 87%, Dinner = 100% (implied wait period)

Six-Month Start-Up Stage. As a new restaurant entry to the Midtown market, the ramp-up incustomer draw is expected to extend over 6 months. This is reflected in a higher than averagemonthly sales variance shown as follows (Worst-case / Expected-case):

· Month 1: 32% / 51% Month 4: 64% / 75%· Month 2: 41% / 58% Month 5: 80% / 90%· Month 3: 52% / 66% Month 6: 90% / 92%

Market Analysis findings are static. We assume that there are no unforeseen changes infindings outlined in the Market Analysis.

Pricing & Cost Control

Competitive Pricing Model. Revenue calculations are based upon competitive price comparisonsand established menu values in the current marketplace. The following are baselineassumptions on Average Check Totals, and Average Seat Turns:


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Daily average for lunch spending is $10.50 per person, dinner at $27.50 per person; and $17.50per person for After-Hours dining (All check totals include Beverages, but not Bar). Seat Turnaverages are modestly estimated at:

· Year 1: After-Hours = 0.7, Lunch = 1.0, Dinner = 1.0· Year 2: After-Hours = 0.7, Lunch = 1.0, Dinner = 1.0· Year 3: After-Hours = 1.0, Lunch = 1.0, Dinner = 1.25

Cost Control. Cost of goods sold have been calculated as a percentage of sales and will bemonitored on a daily basis in order to keep Cost of Food within the range of 31 - 33%, BarCosts within 28 - 31%, and Cost of Beverages (Non Alcohol) below 9%. With a focus on CostControl, we anticipate 6 months to fine tune the restaurant operations and manage our costswithin the defined tolerance range.

Inventory turnover and Accounts Payable. Accounts receivable turnover is calculated tobe 0 days, as payment is rendered with service. Inventory is turned on a 7 day cycle asinventory is used daily within all categories, and accounts payable are projected to be 30 days.

8.2.1 Risk Analysis/Mitigation

1. How do we allow an adequate startup period and capital to launch the concept andgrow our customer base in a competitive sector?

Our financial plan is budgeted to support the Worst-Case business scenario. Weaddressed the financial risk as follows:

· We looked at our monthly break-even.· We calculated worst-case monthly financial shortfall based on the ramp-up sales

percentages outlined in our financial assumptions.· We budgeted operational shortfall in an operational contingency budget that we

will utilize if the need arises.

2. How do we ensure we have addressed all resource gaps, and have the right industryknowledge?

Owners Alex Hunte and Peter Smith have a combined 20 years of RestaurantManagement, Operations and Business Management Experience.

The Financial Plan incorporates a budget for an Atlanta Restaurant Consulting group.Their services are budgeted for the business start-up analysis, rollout, and on retainer for4 months of business operations. The selected firm has experience with over 72Restaurant launches, specializing in the Atlanta Market.

We will be recruiting a seasoned chef (national search) whose style is in accord withthe Restaurant concept and our market segment. We will be offering an equity interest toour select Chef to maintain the industry knowledge.

Our Accounting service will be contracted to a firm specializing in Restaurant accounting.

3. The current Economic slowdown and recovery state was a key consideration in our


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restaurant concept. How do we manage a successful restaurant in current marketconditions?

Our original effort was to open a restaurant twice the proposed size. As we are in themidst of an economic recovery, we have scaled back the size to reduce businessoverhead, startup requirements, and business operating capital.

Another mitigation has been our overall Restaurant concept. We have the menu pricedat a mid-tier level with no entrée over $20. In addition, we have an extended Tapasand Appetizer selection priced between $3.50 - $9.50, allowing budget dining in adistinguished restaurant.

4. How do we confirm that our Funding Requirement is sufficient?

Peter Smith has an extensive background in restaurant startup. He is currently anInternational Consultant for various restaurant ventures, and we will use his expertise inpast projects as a comparative basis.

We have leveraged our membership with the National Restaurant Association to look atindustry averages for this market segment for Restaurant startup and Operations.Additionally, we included a contingency buffer in the financial estimates to account forany potential cost variance.

We have worked with our Restaurant Consulting firm to validate our cost estimates totheir industry knowledge.

5. How do we know we have selected the right location for this concept?

Again we will draw on the Consulting group that has the expertise in site selection andlease negotiation. In all, there are no guarantees with location, but we took a veryobjective approach with our concept. Instead of going in with a predefined businessconcept, we let the Market Analysis define the need. Based on the results, the ZaraRestaurant concept was formed specific to Midtown Atlanta. Site selection was basedon space, visibility, and functionality; the city grant award confirmed our decision.

6. What if there is an additional need for Business Capital after the Restaurant hasexhausted its 6-month buffer?

Our intent is to be a self-sufficient business far in advance of the 6-month probationperiod. But as we are considering all contingencies, we have looked at this risk. Wehave accounted for an operational contingency budget that will be used to supplementany slow periods. Our next step would be to approach our private investors for capitalby extending their return on investment. We would also look to the partners' capitalreserves as another source of funds.

Table: General Assumptions

General Assumptions


Plan Month 1 2 3 4 5

Current Interest Rate 6.00% 6.00% 6.00% 6.00% 6.00%

Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0


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8.3 Profit and Loss Statement

The most important assumption in the Projected Profit and Loss statement is the grossmargin. We show an adjustment increase in Year 2 as we exit our start-up phase of the businessand move into our expected annual sales forecast.

This transition shows the restaurant managing through its start-up period, and gaining efficiencyand customer loyalty. In summary, the restaurant will develop its customer base andreputation and the growth will pick up more rapidly towards the second and third years ofbusiness. Month-by-month assumptions for Profit and Loss are included in the appendices.


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Page 37


Page 38

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $1,073,769 $1,211,088 $1,279,204 $1,341,260 $1,406,670

Direct Cost of Sales $371,416 $398,407 $406,976 $415,276 $423,597

Other $0 $0 $0 $0 $0

Total Cost of Sales $371,416 $398,407 $406,976 $415,276 $423,597

Gross Margin $702,353 $812,681 $872,228 $925,984 $983,072

Gross Margin % 65.41% 67.10% 68.19% 69.04% 69.89%

Expenses

Payroll $399,588 $400,788 $429,828 $431,128 $432,728

Marketing/Promotion $18,656 $22,000 $25,000 $15,000 $15,000

Depreciation $6,500 $6,500 $6,500 $6,500 $6,500

Leased Equipment $12,000 $12,000 $12,000 $12,000 $12,000

Accounting/Payroll Processing $6,600 $6,600 $6,600 $6,600 $6,600

Legal Retainer Fees $2,400 $2,400 $2,400 $2,400 $2,400

Business Licenses & Permits $6,000 $6,000 $6,000 $6,000 $6,000

Credit Card Expense $18,576 $19,983 $21,107 $22,131 $23,210

Bank Fees $1,200 $1,200 $1,200 $1,200 $1,200

Music & Entertainment $3,744 $3,744 $3,744 $3,744 $3,744

Training / Employee Retention Programs $0 $5,008 $6,008 $6,008 $6,008

Repairs & Maintenance $9,000 $9,000 $9,000 $9,000 $9,000

Util ity Services (Gas/Electric/Water/Sewer) $24,996 $26,496 $27,821 $28,933 $30,091

Telephone/Communication Expense $1,800 $1,800 $1,800 $1,800 $1,800

Insurance: Fire/Theft/Liabil ity/Liquor/

Product

$20,400 $21,624 $22,705 $23,613 $24,558

Restaurant Occupancy Cost (Lease) $75,000 $77,250 $79,568 $81,955 $84,413

Payroll Taxes (FICA/FUTA/SUTA) &

Employee Benefits

$0 $0 $0 $0 $0

Exterminator/Trash Removal $4,800 $4,800 $4,800 $4,800 $4,800

Dishware/Uniforms/Cleaning Supplies/

Decor

$11,760 $12,466 $13,089 $13,612 $14,157

Printing/Paper/Postage/Subscriptions $9,156 $9,500 $9,500 $9,500 $9,500

Facility (Exterior Cleaning/Grease Trap/

Hood/Windows,etc.)

$3,333 $3,640 $3,640 $3,640 $3,640

R&D Meals $2,200 $2,400 $2,400 $2,400 $2,400

General Business Comps $12,400 $22,850 $23,125 $23,125 $23,125

Owner Comps $2,124 $2,124 $2,124 $2,124 $2,124

Other Expenses (ComAreaMaint, etc.) $4,200 $4,200 $4,200 $4,200 $4,200

Total Operating Expenses $656,433 $684,372 $724,158 $721,414 $729,198

Profit Before Interest and Taxes $45,920 $128,309 $148,070 $204,571 $253,875

EBITDA $52,420 $134,809 $154,570 $211,071 $260,375

Interest Expense $19,189 $15,984 $12,640 $9,296 $5,952

Taxes Incurred $8,020 $33,698 $40,629 $58,582 $74,377

Net Profit $18,712 $78,628 $94,801 $136,692 $173,546

Net Profit/Sales 1.74% 6.49% 7.41% 10.19% 12.34%


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8.4 Break-even Analysis

For our First Year Break-Even Analysis, we have an average running fixed costs of $60,230 permonth which includes our full payroll, rent, and utilities, and an estimation of other runningcosts. With direct cost of goods (inventory, in this plan) at 35% of sales, our monthly break-even point is $92,081. We will surpass our break-even point in October of our first year.

As we exit the start-up phase of the business and focus on cost control, we will drive the Costof Goods Sold (COGS) down, dropping our break-even value, and increasing our Gross Margin.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $83,630

Assumptions:

Average Percent Variable Cost 35%

Estimated Monthly Fixed Cost $54,703


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8.5 Cash Flow Statement

The cash flow depends on assumptions for inventory turnover and payment days. We have nosales on credit, so our cash flow does not track accounts receivable. Our projected same-daycollection is critical, and is reasonable and customary in the restaurant industry. We do notexpect to need any additional financial support, even when we reach the less profitablemonths, as the downturns are incorporated into the monthly revenue variance figures. Month-by-month assumptions for projected cash flow are included in the appendices.


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Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $1,073,769 $1,211,088 $1,279,204 $1,341,260 $1,406,670

Subtotal Cash from Operations $1,073,769 $1,211,088 $1,279,204 $1,341,260 $1,406,670

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0

New Other Liabil ities (interest-free) $0 $0 $0 $0 $0

New Long-term Liabil ities $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0

Subtotal Cash Received $1,073,769 $1,211,088 $1,279,204 $1,341,260 $1,406,670

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

Expenditures from Operations

Cash Spending $399,588 $400,788 $429,828 $431,128 $432,728

Bill Payments $601,114 $724,989 $745,324 $765,976 $792,442

Subtotal Spent on Operations $1,000,702 $1,125,777 $1,175,152 $1,197,104 $1,225,170

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0

Long-term Liabil ities Principal Repayment $47,772 $47,772 $47,772 $47,772 $47,772

Purchase Other Current Assets $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0

Dividends $0 $20,000 $10,000 $10,000 $15,000

Subtotal Cash Spent $1,048,474 $1,193,549 $1,232,924 $1,254,876 $1,287,942

Net Cash Flow $25,295 $17,539 $46,280 $86,384 $118,727

Cash Balance $172,276 $189,815 $236,095 $322,479 $441,206


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8.6 Balance Sheet Statement

The projected Balance Sheet is quite solid. We do not anticipate difficulty meeting our debtobligations based on achieving the specific goals outlined in this plan. On a linear projection,Zara Restaurant & Lounge has a positive Net Worth beginning in Year 3.

Table: Balance Sheet

Pro Forma Balance Sheet


Assets

Current Assets

Cash $172,276 $189,815 $236,095 $322,479 $441,206

Inventory $37,839 $39,175 $38,109 $38,843 $39,608

Other Current Assets $73,311 $73,311 $73,311 $73,311 $73,311

Total Current Assets $283,426 $302,300 $347,514 $434,633 $554,125

Long-term Assets

Long-term Assets $65,000 $65,000 $65,000 $65,000 $65,000

Accumulated Depreciation $6,500 $13,000 $19,500 $26,000 $32,500

Total Long-term Assets $58,500 $52,000 $45,500 $39,000 $32,500

Total Assets $341,926 $354,300 $393,014 $473,633 $586,625

Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5

Current Liabil ities

Accounts Payable $58,194 $59,713 $61,398 $63,097 $65,315

Current Borrowing $0 $0 $0 $0 $0

Other Current Liabil ities $0 $0 $0 $0 $0

Subtotal Current Liabil ities $58,194 $59,713 $61,398 $63,097 $65,315

Long-term Liabil ities $252,228 $204,456 $156,684 $108,912 $61,140

Total Liabil ities $310,422 $264,169 $218,082 $172,009 $126,455

Paid-in Capital $440,000 $440,000 $440,000 $440,000 $440,000

Retained Earnings ($427,209) ($428,496) ($359,869) ($275,068) ($153,375)

Earnings $18,712 $78,628 $94,801 $136,692 $173,546

Total Capital $31,504 $90,131 $174,932 $301,625 $460,171

Total Liabil ities and Capital $341,926 $354,300 $393,014 $473,633 $586,625

Net Worth $31,504 $90,131 $174,932 $301,625 $460,171


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8.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on theStandard Industrial Classification (SIC) code 5812, Ethnic Food Restaurants, are shown forcomparison.

The following table outlines some of the more important ratios from the Ethnic FoodRestaurants industry. The final column, Industry Profile, details specific ratios based on theindustry as it is classified by the Standard Industry Classification (SIC) code, 5812.01.


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Table: Ratios

Ratio Analysis

Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile

Sales Growth n.a. 12.79% 5.62% 4.85% 4.88% 6.96%

Percent of Total Assets

Inventory 11.07% 11.06% 9.70% 8.20% 6.75% 3.90%

Other Current Assets 21.44% 20.69% 18.65% 15.48% 12.50% 28.39%

Total Current Assets 82.89% 85.32% 88.42% 91.77% 94.46% 37.68%

Long-term Assets 17.11% 14.68% 11.58% 8.23% 5.54% 62.32%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabil ities 17.02% 16.85% 15.62% 13.32% 11.13% 19.17%

Long-term Liabil ities 73.77% 57.71% 39.87% 23.00% 10.42% 29.21%

Total Liabilities 90.79% 74.56% 55.49% 36.32% 21.56% 48.38%

Net Worth 9.21% 25.44% 44.51% 63.68% 78.44% 51.62%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Gross Margin 65.41% 67.10% 68.19% 69.04% 69.89% 59.31%

Selling, General & Administrative Expenses 62.09% 59.39% 59.95% 58.34% 57.31% 39.09%

Advertising Expenses 1.74% 2.07% 2.00% 0.00% 0.00% 2.75%

Profit Before Interest and Taxes 4.28% 10.59% 11.58% 15.25% 18.05% 1.59%

Main Ratios

Current 4.87 5.06 5.66 6.89 8.48 1.26

Quick 4.22 4.41 5.04 6.27 7.88 0.87

Total Debt to Total Assets 90.79% 74.56% 55.49% 36.32% 21.56% 3.27%

Pre-tax Return on Net Worth 84.85% 124.62% 77.42% 64.74% 53.88% 54.38%

Pre-tax Return on Assets 7.82% 31.70% 34.46% 41.23% 42.26% 7.17%

Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin 1.74% 6.49% 7.41% 10.19% 12.34% n.a

Return on Equity 59.40% 87.24% 54.19% 45.32% 37.71% n.a

Activity Ratios

Inventory Turnover 10.91 10.35 10.53 10.79 10.80 n.a

Accounts Payable Turnover 11.33 12.17 12.17 12.17 12.17 n.a

Payment Days 27 30 30 30 29 n.a

Total Asset Turnover 3.14 3.42 3.25 2.83 2.40 n.a

Debt Ratios

Debt to Net Worth 9.85 2.93 1.25 0.57 0.27 n.a

Current Liab. to Liab. 0.19 0.23 0.28 0.37 0.52 n.a

Liquidity Ratios

Net Working Capital $225,232 $242,587 $286,116 $371,537 $488,810 n.a

Interest Coverage 2.39 8.03 11.71 22.01 42.65 n.a

Additional Ratios

Assets to Sales 0.32 0.29 0.31 0.35 0.42 n.a

Current Debt/Total Assets 17% 17% 16% 13% 11% n.a

Acid Test 4.22 4.41 5.04 6.27 7.88 n.a

Sales/Net Worth 34.08 13.44 7.31 4.45 3.06 n.a

Dividend Payout 0.00 0.25 0.11 0.07 0.09 n.a


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8.8 Expansion, Payback & Exit Strategy

In addressing this question we look at the Exit Strategy as a definition of our business vision andgoals, as well as a contingency in the event the business is unsuccessful. We have addressedthis question at several levels:

Expansion as a Business Goal

We have set multiple financial goals to grow the success of the Zara concept, and compoundthe profit return for Zara Investors.

1. Expansion (Option 1): Our overall goal to maintain Zara as a unique and eclectic concept.Based on projections, the business has captured market share by the end of the firstyear. In addition Year 2 brings an increased sales and profit margin to sustain the additionof a full-time General Manager. By second quarter of Year 2, the owners will look tolaunch a second restaurant concept. This is not a chain, but another unique restaurantconcept with strong growth potential. Expansion will be considered with our Financialbackers and Investor partners.

2. Expansion (Option 2): Throughout our business plan we have stayed focus that Zarawould be successful as a larger venue, with greater sales capacity and revenue potential.Our objective with the site selection and lease negotiation is to have the opportunity toexpand the restaurant as a logical growth and profit plan.

3. Private Sale: We are in the business of making money. At the close of Year 3, we seeZara as meeting 80.4% of its optimum sales potential with the current seating andspace allocation. At this stage the business debt is reduced, profit margins areincreasing, and Zara has established market share. We will look at the private sale ofthe majority interest via A) Leveraged Buyout, or B) A larger Restaurant consortium. Inboth cases, our interest is in delivering healthy profits to our Investors and Financialbackers. Sales and profit margins will be based on the restaurant valuation in Year 3.

4. Financial Solvency: The financial projections indicate that exit will be achievable over 3years for the operating capital line of credit. Under a realistic scenario the Companyshould have over $70,000 in cash in the bank after income taxes the second year. Theentire financial debt would be retired by Year 7.

Exit Strategy to Retire the Business

We at Zara are committed to our concept and its viability. We step into this venture withconfidence and the success of our respective prior business efforts. No one attempts abusiness anticipating failure, however sometimes ventures do not fulfill their promise.

In the event that our venture cannot achieve profitability and retire the encumbrances, we willfirst attempt to sell the operation and use the proceeds to clear all outstanding balances. Ifwe are unable to sell the operation for sufficient proceeds we will forced to default wherebythe SBA loan will be in senior standing. Any further outstanding balances will be borne by theinvestors on a weighted percentage basis of the total amounts due.

Appendix

Page 1

Table: Sales Forecast

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales

Total Sales Food 0% $44,579 $50,948 $57,975 $65,441 $79,057 $81,253 $83,449 $74,665 $83,449 $74,665 $79,057 $79,057

Total Sales Bar/Beverages 0% $11,499 $13,141 $14,954 $16,880 $20,392 $20,958 $21,524 $19,259 $21,524 $19,259 $20,392 $20,392

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $56,078 $64,089 $72,929 $82,321 $99,449 $102,211 $104,973 $93,924 $104,973 $93,924 $99,449 $99,449

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Total Cost of Sales: Food $15,603 $17,832 $20,291 $22,904 $27,670 $28,439 $29,207 $26,133 $29,207 $26,133 $27,670 $27,670

Total Cost of Sales: Bar/Beverages $3,795 $4,337 $4,935 $5,570 $6,729 $6,916 $7,103 $6,355 $7,103 $6,355 $6,729 $6,729

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $19,397 $22,168 $25,226 $28,475 $34,399 $35,355 $36,310 $32,488 $36,310 $32,488 $34,399 $34,399

Appendix

Page 2

Table: General Assumptions

General Assumptions


Plan Month 1 2 3 4 5 6 7 8 9 10 11 12

Current Interest Rate 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%

Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0

Appendix

Page 3

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $56,078 $64,089 $72,929 $82,321 $99,449 $102,211 $104,973 $93,924 $104,973 $93,924 $99,449 $99,449

Direct Cost of Sales $19,397 $22,168 $25,226 $28,475 $34,399 $35,355 $36,310 $32,488 $36,310 $32,488 $34,399 $34,399

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $19,397 $22,168 $25,226 $28,475 $34,399 $35,355 $36,310 $32,488 $36,310 $32,488 $34,399 $34,399

Gross Margin $36,681 $41,921 $47,703 $53,846 $65,050 $66,856 $68,663 $61,436 $68,663 $61,436 $65,050 $65,050

Gross Margin % 65.41% 65.41% 65.41% 65.41% 65.41% 65.41% 65.41% 65.41% 65.41% 65.41% 65.41% 65.41%

Expenses

Payroll $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299

Marketing/Promotion $1,457 $1,457 $1,457 $6,457 $0 $1,457 $2,457 $1,457 $0 $0 $0 $2,457

Depreciation $542 $542 $542 $542 $542 $542 $542 $542 $542 $542 $542 $542

Leased Equipment $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Accounting/Payroll Processing $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550

Legal Retainer Fees $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Business Licenses & Permits $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Credit Card Expense $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548

Bank Fees $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

Music & Entertainment $312 $312 $312 $312 $312 $312 $312 $312 $312 $312 $312 $312

Training / Employee Retention

Programs

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Repairs & Maintenance $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750

Utility Services (Gas/Electric/

Water/Sewer)

$2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083

Telephone/Communication

Expense

$150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Insurance: Fire/Theft/Liability/

Liquor/Product

$1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700

Restaurant Occupancy Cost

(Lease)

$6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

Payroll Taxes (FICA/FUTA/SUTA) &

Employee Benefits

17% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Exterminator/Trash Removal $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Dishware/Uniforms/Cleaning

Supplies/Decor

$980 $980 $980 $980 $980 $980 $980 $980 $980 $980 $980 $980

Printing/Paper/Postage/

Subscriptions

$763 $763 $763 $763 $763 $763 $763 $763 $763 $763 $763 $763

Appendix

Page 4

Facility (Exterior Cleaning/

Grease Trap/Hood/Windows,etc.)

$0 $303 $303 $303 $303 $303 $303 $303 $303 $303 $303 $303

R&D Meals $0 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

General Business Comps $0 $0 $1,240 $1,240 $1,240 $1,240 $1,240 $1,240 $1,240 $1,240 $1,240 $1,240

Owner Comps 15% $177 $177 $177 $177 $177 $177 $177 $177 $177 $177 $177 $177

Other Expenses (ComAreaMaint,

etc.)

$350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350

Total Operating Expenses $53,111 $53,614 $54,854 $59,854 $53,397 $54,854 $55,854 $54,854 $53,397 $53,397 $53,397 $55,854

Profit Before Interest and Taxes ($16,430) ($11,693) ($7,151) ($6,007) $11,653 $12,003 $12,809 $6,582 $15,266 $8,039 $11,653 $9,196

EBITDA ($15,888) ($11,151) ($6,609) ($5,466) $12,195 $12,544 $13,351 $7,124 $15,808 $8,581 $12,195 $9,738

Interest Expense $1,727 $1,704 $1,680 $1,657 $1,634 $1,611 $1,587 $1,564 $1,541 $1,518 $1,495 $1,471

Taxes Incurred ($5,447) ($4,019) ($2,649) ($2,299) $3,006 $3,118 $3,367 $1,505 $4,118 $1,956 $3,048 $2,317

Net Profit ($12,710) ($9,378) ($6,182) ($5,365) $7,013 $7,274 $7,855 $3,513 $9,608 $4,565 $7,111 $5,407

Net Profit/Sales -22.66% -14.63% -8.48% -6.52% 7.05% 7.12% 7.48% 3.74% 9.15% 4.86% 7.15% 5.44%

Appendix

Page 5

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $56,078 $64,089 $72,929 $82,321 $99,449 $102,211 $104,973 $93,924 $104,973 $93,924 $99,449 $99,449

Subtotal Cash from Operations $56,078 $64,089 $72,929 $82,321 $99,449 $102,211 $104,973 $93,924 $104,973 $93,924 $99,449 $99,449

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $56,078 $64,089 $72,929 $82,321 $99,449 $102,211 $104,973 $93,924 $104,973 $93,924 $99,449 $99,449

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures from Operations

Cash Spending $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299

Bill Payments $959 $29,247 $42,873 $48,926 $57,675 $65,013 $62,220 $63,929 $52,812 $65,248 $51,624 $60,586

Subtotal Spent on Operations $34,258 $62,546 $76,172 $82,225 $90,974 $98,312 $95,519 $97,228 $86,111 $98,547 $84,923 $93,885

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $3,981 $3,981 $3,981 $3,981 $3,981 $3,981 $3,981 $3,981 $3,981 $3,981 $3,981 $3,981

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent $38,239 $66,527 $80,153 $86,206 $94,955 $102,293 $99,500 $101,209 $90,092 $102,528 $88,904 $97,866

Net Cash Flow $17,839 ($2,438) ($7,224) ($3,885) $4,494 ($82) $5,473 ($7,285) $14,881 ($8,604) $10,545 $1,583

Cash Balance $164,819 $162,381 $155,157 $151,272 $155,765 $155,683 $161,157 $153,871 $168,752 $160,148 $170,693 $172,276

Appendix

Page 6

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $146,980 $164,819 $162,381 $155,157 $151,272 $155,765 $155,683 $161,157 $153,871 $168,752 $160,148 $170,693 $172,276

Inventory $27,500 $21,337 $24,385 $27,749 $31,322 $37,839 $38,890 $39,941 $35,737 $39,941 $35,737 $37,839 $37,839

Other Current Assets $73,311 $73,311 $73,311 $73,311 $73,311 $73,311 $73,311 $73,311 $73,311 $73,311 $73,311 $73,311 $73,311

Total Current Assets $247,791 $259,467 $260,077 $256,217 $255,905 $266,915 $267,884 $274,409 $262,919 $282,004 $269,196 $281,843 $283,426

Long-term Assets

Long-term Assets $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000

Accumulated Depreciation $0 $542 $1,083 $1,625 $2,167 $2,708 $3,250 $3,792 $4,333 $4,875 $5,417 $5,958 $6,500

Total Long-term Assets $65,000 $64,458 $63,917 $63,375 $62,833 $62,292 $61,750 $61,208 $60,667 $60,125 $59,583 $59,042 $58,500

Total Assets $312,791 $323,925 $323,994 $319,592 $318,738 $329,207 $329,634 $335,617 $323,586 $342,129 $328,779 $340,885 $341,926

Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Current Liabilities

Accounts Payable $0 $27,825 $41,252 $47,012 $55,505 $62,942 $60,075 $62,184 $50,621 $63,538 $49,604 $58,580 $58,194

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities $0 $27,825 $41,252 $47,012 $55,505 $62,942 $60,075 $62,184 $50,621 $63,538 $49,604 $58,580 $58,194

Long-term Liabilities $300,000 $296,019 $292,038 $288,057 $284,076 $280,095 $276,114 $272,133 $268,152 $264,171 $260,190 $256,209 $252,228

Total Liabilities $300,000 $323,844 $333,290 $335,069 $339,581 $343,037 $336,189 $334,317 $318,773 $327,709 $309,794 $314,789 $310,422

Paid-in Capital $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000

Retained Earnings ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209) ($427,209)

Earnings $0 ($12,710) ($22,087) ($28,269) ($33,634) ($26,621) ($19,346) ($11,491) ($7,979) $1,629 $6,194 $13,305 $18,712

Total Capital $12,791 $82 ($9,296) ($15,478) ($20,843) ($13,829) ($6,555) $1,300 $4,813 $14,420 $18,985 $26,096 $31,504

Total Liabilities and Capital $312,791 $323,925 $323,994 $319,592 $318,738 $329,207 $329,634 $335,617 $323,586 $342,129 $328,779 $340,885 $341,926

Net Worth $12,791 $82 ($9,296) ($15,478) ($20,843) ($13,829) ($6,555) $1,300 $4,813 $14,420 $18,985 $26,096 $31,504

Appendix

Page 7

Table: Personnel

Personnel Plan


General Manager (Year 2+) 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Partner/Manager 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000

Partner/Asst. Manager/Exec. Chef 0% $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680

Hostess (Full Time) 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Hostess (Part Time) 0% $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100

Waitperson 1 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 2 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 3 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 4 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 5 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 6 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 7 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 8 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Waitperson 9 0% $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470

Wait/Barperson 0% $870 $870 $870 $870 $870 $870 $870 $870 $870 $870 $870 $870

Bartender 1 0% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200

Bartender 2 0% $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Busboy 1 0% $760 $760 $760 $760 $760 $760 $760 $760 $760 $760 $760 $760

Busboy 2 0% $980 $980 $980 $980 $980 $980 $980 $980 $980 $980 $980 $980

Busboy 3 0% $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Assistant Chef 0% $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700

Sous Chef 0% $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700

Cook 1 0% $2,020 $2,020 $2,020 $2,020 $2,020 $2,020 $2,020 $2,020 $2,020 $2,020 $2,020 $2,020

Cook 2 0% $1,580 $1,580 $1,580 $1,580 $1,580 $1,580 $1,580 $1,580 $1,580 $1,580 $1,580 $1,580

Prep Cook/Dishwasher 0% $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024

Prep Cook/Dishwasher/Cleaning 0% $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080

Dishwasher 1 0% $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720

Dishwasher 2 0% $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475

Cleaning/Dishwasher 0% $980 $980 $980 $980 $980 $980 $980 $980 $980 $980 $980 $980

Open 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total People 20 20 20 20 20 20 20 20 20 20 20 20

Total Payroll $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299 $33,299

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