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FFiicckkeenn RReessttaauurraannttss,, LLLLCC
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BBuussiinneessss PPllaann
Contact:
John J. Ficken
President & CoFounder
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Confidentiality Statement
The undersigned reader acknowledges that the information provided by Ficken Restaurants, LLC in this
business plan is unique to this enterprise and is confidential; therefore, the reader agrees not to disclose
any information contained herein or in verbal discussions without the express written permission of
Ficken Restaurants, LLC or its principals.
It is acknowledged by the reader that information to be furnished in this business plan is in all respects
confidential in nature, other than the information that is in the public domain, and that any disclosure or
use by the reader may cause serious harm or damage to Ficken Restaurants, LLC or its entities.
Upon request, this document is to be immediately returned to Ficken Restaurants, LLC.
_____________________________________
Signature
_____________________________________
Name (typed or printed)
_____________________________________
Date
This is the business plan of Ficken Restaurants. The presentation of this business plan does not imply an
offering of securities.
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Table of Contents
1.0 EXECUTIVE SUMMARY
Introduction
Business Model
Growth Strategy
Financial ProjectionsCapital Requirements
2.0 BUSINESS SUMMARY
Company Profile
Stage of Development
Mission Statement
Location & Facilities
Core Corporate Objectives
Critical Success Factors
3.0 PRODUCT SUMMARY
Flagship LocationMenu
Service & Dcor
Technology Systems
4.0 MARKET ANALYSIS SUMMARY
Industry Analysis
Market Trends
Customer Analysis
Competitive Landscape
5.0 GROWTH SUMMARY
Value Proposition
Competitive AdvantageMarketing Strategy
Milestones
Exit Strategy
6.0 ORGANIZATION SUMMARY
Management Team
Personnel Plan
External Providers
7.0 FINANCIAL PLAN
Sources and Uses of Funds
Key AssumptionsRevenue Forecast
BreakEven Analysis
Projected Profit & Loss (5 yr)
Projected Cash Flow (5 yr)
Projected Balance Sheet (5 yr)
APPENDIX
Pro Forma Financials
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1.0 Executive Summary
Introduction
Ficken Restaurants, LLC (the Company or Ficken Restaurants) is a limited liability company,
operating the fullservice, 1950s
themed franchise of 5 & Diner
Ficken Restaurants, LLC (the Company) is a Limited Liability Company, operating the 5 & Diner
franchise in the Southern Illinois market. The highly successful franchise system is expanding
throughout the United States, creating an outstanding opportunity for the Company to join the
franchise network and contribute to the growth of the 5 & Diner brand. Owned and operated
by John Ficken, principal of Ficken Restaurants, LLC, the 5 & Diner location proposed for the
prescribed St. Clair County, Illinois territory will serve a large business professional and family
segment of the population. The Company will combine the successes and innovations of existing
franchise operations with the experience and financial business management expertise of the
proprietor to achieve continual sales growth and profitability.
Within the first year of operations, the Company believes it will grow sales at its flagship
location as it faces limited competition for the vast and varied American menu in an appealing
and modern quickservice environment. The quality menu will attract a broad base of
customers, driving gross sales to approximate $1.02 million within the first year and reach $1.4
million by the fifth year. Ficken Restaurants, LLC will continually reinvest profits for growth and
develop new opportunities for additional franchise in surrounding ideal communities.
Business Model
The management team of Ficken Restaurants, LLC has developed a business model to maximizethe full potential of the proven 5 & Diner restaurant to generate solid profitability and build
opportunities for additional locations in the territory.
The unique business concept positions Ficken Restaurants, LLC to effectively and rapidly
transform the viable opportunity within its target market into a regionallyexpanded operation.
The simple menu and operating system presented by 5 & Diner enables Ficken Restaurants, LLC
to stabilize overhead costs and drive revenues through its diversified channels. 5 & Diner will
draw a broad customer base, building on the longstanding appeal of varied and flavorful
options for the fullservice casual dining segment, but positioned far above competition with a
retro, hip, and fun instore dining environment proven in numerous other markets.
Employing effective strategies for business growth, Ficken Restaurants, operating its 5 & Diner
location, will be able to deliver high quality, appetizing menus and topnotch customer services
through its restaurant while minimizing burn rate to effectively and efficiently utilize capital,
delivering on the investment return strategies, and focusing on the key marketing campaigns.
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Growth Strategy
The Companys growth strategy involves several approaches. Initially, the focus is to build a
strong operation within East St. Louis region at the flagship location, and expand throughout its
territory with an additional location launched within three years. A combination of creative and
conventional marketing strategies executed on the local level by the Company will drive storesales for each location.
Financial Projections
The projected financial position of the Company indicates the requested funding amount will
sufficiently support and sustain operations. The Company anticipates a steady growth with
significant net profit, which will be reinvested as leverage for continued brand and overall
business development. Based on current market activity in the targeted geographic area,
management projects Ficken Restaurants will realize profits in the second quarter of operations.
The following illustration represents projected asset position, profits, and margin growth over
five years of operations.
FiveYear Financial Highlights
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Profit
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Capital Requirements
The Companys initial capital requirements total $572,000 to fund the fullscale the Company
launch, execute sales and marketing strategies, and establish the solid foundation for success.
The capital infusion combines with invested equity from the owner and principal, anticipated at
30% of the total loan value, $132,000.
The requested financing provides a sustainable cash balance to support business operations
until specific profitability and revenue benchmarks are attained. A summary outline of the
sources and uses of funds follows, with a more detailed representation provided in the Financial
Plan section.
SUMMARY STATEMENT
Sources of Capital
Owners' and other investments $ 132,000
Bank loans $ 440,000
Total Source of Funds $ 572,000
Startup Expenses
Buildings/real estate $
Leasehold improvements $ 224,000
Capital equipment $ 160,000
Location/administration expenses $ 85,700
Opening inventory $ 8,000
Advertising/promotional expenses $ 16,500
Other expenses $ 2,500
Contingency fund $ 10,000
Working capital $ 65,300
Total Startup Expenses $ 572,000
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2.0 Business Summary
Company Profile
Ficken Restaurants, LLC will structure as a limited liability company in the State of Virginia,
owned by founder and principal, John J. Ficken. The Company will operate its flagship 5 & Dinersite within St. Clair County, Illinois while developing additional locations within the same market
territory.
With the superior and popular 5 & Diner concept, Ficken Restaurants, LLC will build on the
market potential to realize profits within its first location and develop the other location to
accelerate business growth and profitability, while delivering significant return to the franchising
entity. Concurrent with national and regional cooperative corporate advertising, Ficken
Restaurants, LLC will execute local marketing and advertising campaigns to drive revenues for all
planned franchised locations, i.e. newspaper and flyers.
The Companys founder is an ambitious entrepreneur and business professional, with thepassion for the concept and the target market to ensure the success of the business. As
outlined in the management summary of this business plan, the principal has developed a sound
organizational structure to effectively execute the strategies that ensure the longterm viability
of the corporation.
Stage of Development
Ficken Restaurants, LLC is currently in the advanced phases of startup as an operator of
the 5 & Diner franchise. Relationships with vendors and contractors who will execute
the installation of the unique fullservice restaurant interior and ensure consistency in
menu product quality have also been developed.
Mission Statement
Simply stated, it is the goal of Ficken Restaurants, LLC and its franchisee locations to
offer dining customers the nostalgia of traditional American dining for breakfast, lunch,
and dinner, at affordable prices. Ficken Restaurants, LLC, through its 5 & Diner
franchises, is dedicated to fair and courteous operations in all aspects of its business,
from vendor and franchisor relationships to food and service quality for its customers
and communities.
Location & Facilities
The 5 & Diner location will launch its establishment in an approximately 3,200 square
foot space within the prescribed St. Clair territory. The site will strictly adhere to the
brand and dcor standards established by the franchisor for locations and will create an
inviting and convenient atmosphere for patrons. Ficken Restaurants, LLC will enlist the
assistance of professional commercial real estate consultants in the retail trade to
identify and review possible site selections which will be submitted to the franchisor for
review and acceptance prior to any offer finalization to ensure the mutual success of the
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location. The first location will serve as an operational prototype for the management
team of Ficken Restaurants, LLC to refine and implement the tools and training provided
by 5 & Diner within its own market.
Business operations and administration will be conducted from corporate offices,
currently planned for home office space of the principal. The facilities have the
infrastructure in place to address the technology and office space needs of Ficken
Restaurants, LLC for three to five years. In future years, space requirements must
accommodate the complete needs of creating a single location for senior management
staff as well as allow for expansion as subordinate support staff that may be added.
A more detailed description of the signature design concept of 5 & Diner is presented as
an integral part of the Product Summary in Section 3.0 of this business plan.
Core Corporate Objectives
Based on in depth observation, quickservice restaurant management and startup experience,
and a comprehensive understanding of the market opportunity, Ficken Restaurants has
identified the following sets of objectives as key to its success:
Build a successful and stable operation that can be expanded to meet new
market opportunities. Reach new markets through franchising opportunities
regionally and nationwide.
Effectively leverage venture and longterm financing and equity positions to
achieve funding goals.
Establish internal controls to ensure capabilities, finances, and personnel are
effectively managed and optimally utilized.
Foster reputation in fullservice market by offering the highest caliber of quality
foods and services, location growth, proven sales value, and successful franchise
arrangements.
Develop mutually beneficial relationships with key strategic allies, restaurant
and franchising industry gurus as well as suppliers and vendors.
Critical Success Factors
Both the shortterm and longrange success of Ficken Restaurants, LLC and its 5 & Diner
franchises rest in the ability of the Company to satisfy the needs of the market, while remaining
on the cutting edge of promotions, and staying current with fluctuating customer preferences
and interests.
Fundamentally, success lies in the following elements:
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Develop restaurant and administrative location in a highly trafficked area of St.
Clair County that will afford sustained customer activity for all products offered
throughout the week.
Development of a talented team for store management and staffing who share
the longrange vision of the Company.
Leverage the strength and popularity of the 5 & Diner brand to realize the profit
potential of multiple locations, and contribute effectively to overall growth of
the franchisor and the brand.
Continual negotiation of favorable arrangements and agreements with
suppliers, employees, and distributors.
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3.0 Product Summary
Ficken Restaurants, LLC will offer the varied menu of 5 & Diner, emphasizing food quality, flavor,
and freshness. The selection creates a savory and fun menu of beverages and bakery goods for
families and individuals on the go.
As a 5 & Diner franchise, Ficken Restaurants, LLC shares the corporate mission of delivering
quality coffees and baked goods to consumers. Every Ficken Restaurants, LLC location in
Alexandria/Fairfax County will present a shared vision based on the principles of:
Quality Product
Committed Service
Cleanliness
Price & Value
Through its dedicated customer service philosophy and adherence to the highest quality
product and restaurant standards, Ficken Restaurants, LLC will further the mission of thefranchisor.
The experience and community ties of management and the desirable locations will enable the
Company to attract a broad client base within Alexandria/Fairfax County and from bordering
commuter routes.
Flagship Location
The 5 & Diner restaurant of Ficken Restaurants, LLC will be a tableservice establishment. The
business caters to the demands and recreational needs of working professionals, families,
restricted dieters, and students with convenient, quickservice, healthy items for lunch and
dinner. The experience and community ties of management and the desirable location will
enable the Company to attract a broad client base within Fremont seeking convenient access to
quality, freshly prepared food and beverages in a tableservice, casual atmosphere.
Menu
The restaurant offers a wistful menu of freshly cooked and prepared hamburgers,
sandwiches, side dishes, and a variety of beverages, ice cream floats, and other desserts.
Food service runs throughout the day, with a variety of breakfast options, from
pancakes and waffles to eggs and breakfast meats, and a selection of large dinner
entrees and appetizers. Every aspect of service and preparation incorporates the
restaurants key philosophy convenient and affordable food does not have to sacrificetaste or consumer health, harkening back to simpler times for families.
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Service & Decor
The restaurant will offer dinein and take
out of its vast menu. At every point of
customer interaction, from order taking at
the counter to serving dinein customers,
only considerate, friendly, and efficient
service and employee attitude will be
communicated.
The atmosphere of the establishment and
surrounding common area will adhere to
the highest standards of quality and
cleanliness while creating a differentiated
and inviting ambience that accentuates the
brand identity. The approximately 3,200 square foot restaurant will incorporate 1950s
style diner car atmosphere, with booth and counter seating for 110 occupants. The
dcor draws on the period elements, but is stylish and clean, not cluttered or obtrusive.
Technology Systems
Management has outlined the key components for the robust technology the business requires
for quickservice restaurant operations as well as multisite reporting capabilities needed in the
future. The Company will purchase an integrated application that functions at every level of the
enterprise, from ensuring order accuracy to controlling prices, menus, and profits on a chain
wide basis. The system will be scalable to meet the needs of the business as it expands.
The preferred technology will utilize touch screens with greater ease of training and use. With adynamic ordering screen flow with automatic recognition of specials, the system will manage
frontofthehouse activity and backend management functions. MICROS is a likely provider, as
it meets the needs of the business and is competitively priced.
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4.0 Market Analysis Summary
Industry Analysis
According to the National Restaurant Association, industry sales are forecast to reach $511
billion in 2006, an alltime record. The annual sales total represents a nearly 5.1 percent
increase over 2005 figures. Analysts project that American households will spend almost 48
percent of their entire grocery and food budget on dining or takeout this year.
Based on prior figures, the restaurant industry should see annual compounded sales growth of
at least 4.9 percent per year throughout the decade. The average perperson check in the
industry is between $15 and $25, with the higher ticket values in the range occurring in the most
populous major metropolitan areas of the United States. The majority of businesses has fewer
than seven total employees and is a sole proprietorship or partnership.
Market Trends
In its 2006 Restaurant Industry Forecast, the National Restaurant Association cited a
number of definite trends that will continue to proliferate in the industry for several
years. One key trend is the increased focus on health lifestyles among consumers and
responsiveness among the industry. Consumers will continue to expect fullservice and
quickservice establishments to improve their offerings with balanced meals, a variety of
dietary choices (vegetarian, The Zone, South Beach, Heart Healthy, etc.), and
opportunities to customize their meals from the menu offering.
Additionally, consumers are becoming increasingly adventurous and enthusiastic
about trying new foods and ingredients, seeking new alternatives to fastfood fare, as
individuals become more knowledgeable about nutrition and develop moresophisticated palates. According to the National Restaurant Association, Caribbean and
Middle Eastern dishes are now more popular than more traditional alternative cuisine,
such as French cuisine or American soul food. These consumers are typically between
the ages of 30 and 60 years old, welleducated, living in urban areas, of a variety of
ethnic origins, and are active diners.
Customer Analysis
The market segment targeted by the 5 & Diner location operated by Ficken Restaurants in St.
Clair County is predominantly part of the Baby Boomer and Generation X age groups in family
households (either married couples, with or without children, or single householders, withchildren). 5 & Diner will attract customers from its immediate area in St. Clair County and
outlying regions to Monroe County and beyond.
The regional area is comprised of the cities and towns in St. Clair County and the Illinoisside of
the greater St. Louis metropolitan area, with a total population over 256,000, according to the
latest census data and counts supplied by the Illinois Planning Commission. The population is
53% female, of which more than 51% are between the ages of 25 and 74.
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5.0 Implementation Summary
Through development of a strong executive team and a focused, integrated marketing
communications strategy, Ficken Restaurants, LLC intends to expand operations geographically
and increase revenues through additional locations. With 5 & Diner, the Company presents a
unique advantage and alternative to typical fastfood and full
service fare, as well as competing
providers offering a similar menu.
The Companys successful model, not only for business management, but also for operating a
popular quickservice restaurant, translates effectively to new geographic markets and
transcends demographic delineations.
Value Proposition
The combination of user convenience and the quality of the product and service sets 5 & Diner
apart from every other provider in the marketplace. With more healthful options, better
prepared choices, and tremendous value, 5 & Diner is the best choice with the best menu for
busy individuals and families seeking a quality and nostalgic meal.
Competitive Advantage
The core competency of Ficken Restaurants, LLC lies in the 5 & Diner menu. The ability to
maintain price competitiveness and costeffective methods of producing meals for the
consumer ensures high quality product and substantial differentiation from traditional or
themed fullservice establishments.
Management has identified several key factors on which to differentiate the business from
regional competitors.
5 & Diner will have a more inviting and socially engaging atmosphere for regular
patrons representing a broad crosssection of the East St. Louis community in the
business model that easily transfers to communities throughout the nation.
Within its local market, 5 & Diner fulfills an identified gap for a simple, nostalgic
American menu delivered in an attractive and retro tableservice environment that
effectively combines diverse appeal and in a more casual, hasslefree setting.
To demonstrate its high level of commitment to its customers, 5 & Diner will
develop loyalty programs for frequent customers and continually respond tocustomer feedback for appropriate product and service strategies.
Leveraging the vendor relationships established by the franchisor, 5 & Diner will
obtain the freshest high quality ingredients at competitive costs to increase overall
margin and improve the bottomline through purchasing and production
efficiencies.
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Marketing Strategy
Franchisees contribute to and benefit from regional and national marketing and advertising
campaigns using appropriate media vehicles. Ficken Restaurants, LLC will also regularly develop
and execute its own promotional programs specific to the territory and its target consumers.
Management intends to commit to a significant annual marketing and advertising budget
throughout the scope of this business plan and the life of the enterprise. The budget for sales
and marketing expenses is currently based on estimated needs, but will be adjusted as needed
as the business develops and key vehicles and promotional venues are furthered cultivated. The
key strategies are highlighted below.
Opening Advertising Program
Sales Collateral
Multimedia Presentations
Attractive Signage, Atmosphere, and Location for the Restaurant
Loyalty Programs Local Television Commercial Advertising
Special Promotions & Events with Corporate Sponsorship
Internet Marketing
Advertising
Print publications will be the key advertising vehicle for the restaurant initially. Display
advertisements in the Sunday weekly dining and entertainment sections of major regional
newspapers will position Ficken Restaurants location as a high point of interest among
consumers.
Sales Collateral
Sales and marketing literature will be produced to support marketing efforts directed at
prospective franchisees. These materials will be essential to positioning the Company and
developing topofmind presence among the audience following multimedia presentations
and demonstrations using operations at the flagship location as a marketing tool.
Television Commercials
5 & Diner will use 30 and 60second spots on local programming and cable advertising to
promote business and the grand opening of the establishment. Ongoing media buys will
effectively position the unique concept in the market, announce special promotions and
incentives, and publicize the menu variety.
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Milestones
Key milestones for Ficken Restaurants, LLC are structured around specific product and service
launch activities and associated marketing efforts to fuel their success in the marketplace.
Implementation of certain targets is dependent upon the availability of funding.
The milestone schedule indicates an emphasis on future planning for implementation.
Management will conduct monthly evaluations of the financial and market position to
determine feasibility, resource availability, and progress toward achieving each operational
milestone.
The fundamental steps, listed in priority order for each milestone, are highlighted below.
Establish Flagship Location 2 to 4 months
Acquire site and complete necessary interior construction and/or renovation.
Create unique complimentary atmosphere and interior dcor aligned with corporate
objectives and restaurant identity.
Implement Personnel Plan 1 to 2 months
Fill key restaurant operations roles with skilled, highly flexible, and motivated
candidates through regional searches.
Establish Brand Ongoing
Coordinate with internal staff and external marketing agencies and consultants to
ensure all aspects adhere to brand identity, visual appearance, and service standards
Create an appealing interior and exterior dcor for the flagship location that can easily
be translated to different markets through franchising arrangements.
Execute Local Marketing Campaigns Ongoing
Develop and implement marketing campaigns throughout communities in the St. Clair
County trade area to introduce the new locations as they are developed.
Expand marketing efforts throughout the region to reach the various target segments:
residents, commuters using surrounding routes and thoroughfares, and business
travelers, to build awareness among consumers.
Exit Strategy
The management team is committed to the longterm viability of the Company and its 5 & Diner
franchises. As such, the principal intends to effectively manage and operate the business toensure its success. If the projections are not met, and Ficken Restaurants can not continue to
operate with a profit, equipment can be liquidated and furnishings can be sold to cover the cost
of the remaining loan amount.
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6.0 Organization Summary
The management team has developed the following personnel plan and hiring schedule based
on estimated daily and weekly occupancy projections. The management team will offer
competitive pay scales for the type of work and the region. The management team will
compliment their own skills, as discussed below, with consultants specializing in operations andfinancial management specific to restaurant establishments.
Management Team
Ficken Restaurants, LLC is owned and managed by its principal and cofounder, John Ficken.
In addition, the store manager and each shift leader involved in managing restaurant operations
and the staff will possess a wealth of experience spanning the gamut of essential skills, from
frontend and backofhouse operations, to customer service and food preparation.
Personnel Plan
The principal and owner will manage the business and provide all staff supervision, training, and
administration for the Company. Their years of professional experience, education and training,
and involvement in the community are their greatest strengths.
The Company will hire additional staff to provide food preparation and waiting services to
patrons. Intended employees will cover multiple functions as needed as part of the family
culture the business will foster among its employees as well as its clientele. Labor costs are
targeted at 32% to 34% of gross revenues annually. The workforce will consist of a store
manager, receiving a competitive salary with bonus potential, as well as shift leads and full
foodservice and kitchen crews receiving a competitive hourly wage. Projections for payroll
expenses also address personnel burden.
PROJECTED EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5
Employee Costs
Store Manager $ 38,000 $ 41,040 $ 42,066 $ 43,118 $ 44,196
Shift Leads (2) $ 44,000 $ 47,520 $ 48,708 $ 49,926 $ 51,174
Kitchen Crew $ 101,040 $ 109,123 $ 117,853 $ 127,281 $ 137,464
Foodservice Crew $ 165,840 $ 179,107 $ 193,436 $ 208,911 $ 225,623
Benefits 13% $ 43,784 $ 47,287 $ 50,459 $ 53,869 $ 57,536
Subtotal $ 392,665 $ 424,078 $ 452,522 $ 483,104 $ 515,993
Labor Costs/Sales 35% 34% 34% 34% 33%
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External Providers
Relationships are being developed with a network of advisors in the accounting and legal
professions to provide assistance and professional services to the Company. To compliment the
skills, experience, and expertise of the management team, the Company has also sought the
advice and counsel of seasoned business owners, industry segmentspecific entrepreneurs,
entrepreneurs, and other industry professionals who will provide ongoing support through the
life of the business.
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7.0 Financial Plan
Management has developed the following financial plan to address the strategic and
implementation needs of 5 & Diner as summarized in this business plan. Detailed financial
forecasts for the first several years have been created utilizing figures from sales projections, the
pricing strategy, and marketing and overhead expense estimates. Overall, the ratios formargins, growth, and expenses are in line with general comparative industry business standards.
The financial plan and projections represent managements best efforts to forecast income and
expenses, based on good faith estimates and project planning. Management is seeking
$440,000, raised through conventional business financing, to combine with a substantial
contribution from the owners toward securing the loan.
Sources and Uses of Funds
The Companys initial capital requirements total $572,000 to fund the venture startup, execute
sales and marketing strategies, and recruit essential staff. The requested $440,000 loan total,combining with a $132,000 investment from the owner, provides a sustainable cash balance to
support business operations until specific profitability and sales benchmarks are attained.
Please refer to the chart below, detailing the distribution of initial funds. Ongoing use of capital
includes funding key service positions, sustaining strategic marketing programs, and supporting
equipment and environmental quality standards.
The following table outlines initial startup costs, based on estimates from real estate entities,
potential contractors and suppliers, and industryspecific calculations. The results are
summarized in the accompanying illustration.
Sources and Allocation of Startup Capital
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$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Investment Loans Expenses Assets
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SOURCES OF CAPITAL
Owners' Investment
Owner Investment $ 132,000
Total Investment $ 132,000
Bank LoansPrimary Lender $ 440,000
Total Bank Loans $ 440,000
STARTUP EXPENSES
Leasehold Improvements
BuildOut/Improvements/Landscaping $ 224,000
Total Leasehold Improvements $ 224,000
Capital Equipment List
Furniture $ 55,000
Equipment $ 85,000
Fixtures $ 15,000
Small wares $ 5,000Total Capital Equipment $ 160,000
Location and Admin Expenses
Rental Deposits $ 13,200
Utility deposits $ 1,200
Legal and accounting fees $ 3,300
Prepaid insurance $ 1,500
Consultants $ 2,000
Initial Franchise Fee $ 35,000
Supplies $ 4,000
Architectural Design Fees $ 8,500
POS Software & Systems $ 12,000
Staff Recruitment & Training $ 5,000Total Location and Admin Expenses $ 85,700
Opening Inventory
Food & Food Preparation $ 8,000
Total Inventory $ 8,000
Advertising and Promotional Expenses
Grand Opening Marketing & Advertising $ 15,000
Corporate Identity Material $ 1,500
Total Advertising/Promotional Expenses $ 16,500
Other Expenses
Miscellaneous $ 2,500Total Other Expenses $ 2,500
Reserve for Contingencies $ 10,000
Working Capital $ 65,300
Total Startup Expenses $ 572,000
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Key Assumptions
The annual assumptions, which form the basis for much of the financial plan, are depicted
below. Rates are based upon the best available current data for the industry segment. In
general, forecasts are based on the best ability of management to project sales growth,
operating expenses, and expected profits using a combination of experience, research, andindustry standards.
GENERAL ASSUMPTIONS
Tax Rate 39.00%
Payroll Tax/ Personnel Burden 12.55%
Merchant Account Costs (Credit Cards) 2.79%
% of Sales Paid by Credit Card 65.00%
Bad Transactions % 0.00%
LongTerm Loan Interest Rate 8.75%
Current Liability Interest Rate 0.00%
ACCOUNTS PAYABLE
% of Vendors Paid Within
Immediately 25%
30 days 75%
60 days 0%
ACCOUNTS RECEIVABLE
% of Customers Paying Within
Immediately 100%
30 days 0%
60 days 0%
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Revenue Forecast
The following forecast outlines the revenue activity generated through store sales at the initial
Ficken Restaurants, LLC 5 & Diner location.
The table is followed by a chart detailing annual sales growth projections for revenue for theflagship 5 & Diner location of the Company. Once established, per store revenue is expected to
track corporate trends with incremental annual growth as efficiencies and awareness are
developed. Monthly projections for restaurant sales activity in the first fiscal year are included
in the Appendix.
FIVEYEAR REVENUE PROJECTION
Year 1 Year 2 Year 3 Year 4 Year 5
Breakfasts 15135 16648 17980 19418 20972
Avg. Price per Unit $6.49 $6.49 $6.49 $6.49 $6.49
Breakfasts $98,223.71 $108,046.08 $116,689.76 $126,024.94 $136,106.94
Hamburgers 26486 29134 31465 33982 36701
Avg. Price per Unit $7.79 $7.79 $7.79 $7.79 $7.79
Hamburgers $206,322.75 $226,955.03 $245,111.43 $264,720.34 $285,897.97
Sandwiches 22702 24972 26970 29127 31458
Avg. Price per Unit $7.19 $7.19 $7.19 $7.19 $7.19
Sandwiches $163,226.91 $179,549.60 $193,913.57 $209,426.66 $226,180.79
Dinner Entrees 18918 20810 22475 24273 26215
Avg. Price per Unit $10.29 $10.29 $10.29 $10.29 $10.29
Dinner Entrees $194,669.09 $214,136.00 $231,266.88 $249,768.23 $269,749.69
Side Dishes 11351 12486 13485 14564 15729
Avg. Price per Unit $1.99 $1.99 $1.99 $1.99 $1.99
Side Dishes $22,588.43 $24,847.27 $26,835.05 $28,981.85 $31,300.40
Beverages 75673 83240 89900 97092 104859
Avg. Price per Unit $2.99 $2.99 $2.99 $2.99 $2.99
Beverages $226,262.62 $248,888.88 $268,799.99 $290,303.99 $313,528.31
Appetizers 15135 16648 17980 19418 20972
Avg. Price per Unit $4.95 $4.95 $4.95 $4.95 $4.95
Appetizers $74,916.39 $82,408.02 $89,000.67 $96,120.72 $103,810.38
Desserts 8829 9711 10488 11327 12234
Avg. Price per Unit $3.79 $3.79 $3.79 $3.79 $3.79
Desserts $33,460.13 $36,806.14 $39,750.63 $42,930.68 $46,365.14
Projected Totals $1,019,670.02 $1,121,637.02 $1,211,367.99 $1,308,277.43 $1,412,939.62
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Projected Revenue Forecast by Category Annual
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Year 1 Year 2 Year 3 Year 4 Year 5
Breakfasts Hamburgers Sandw iches Dinner Entrees Side Dishes Beverages Appetizers Desserts
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Breakeven Analysis
The breakeven analysis for 5 & Diner is summarized in the following table. The breakeven
estimate is a very conservative figure and represents an average dollar contribution of all
product categories. Higher margin food and beverage sales contribute significantly more dollars
to bottom line financial projections.
SALES
Sales price per unit $ 4.78
Sales volume per period (units) 25044
Total Sales $ 119,795
VARIABLE COSTS
Direct material per unit $ 1.82 38%
Variable costs per unit $ 1.82
Total Variable Costs $ 45,522
Unit contribution margin $ 2.97
Gross Margin $ 74,273
FIXED COSTS (per period)
Labor costs $ 37,806 32%
Administration Costs $ 595
Occupancy Costs $ 4,340
Depreciation $ 593
Marketing Costs $ 3,034
Total Fixed Costs per period $ 46,367 62%
Net Profit (Loss) $ 27,905
Breakeven Point (units): 15,635
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BreakEven Analysis
$-
$15,000
$30,000
$45,000
$60,000
$75,000
$90,000
0 2504 5009 7513 10018 12522 15027 17531 20035 22540 25044
Sales Volume (Units)
Dollars
Total costs Total sales
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Pro Forma Profit and Loss
The projected profit and loss statement represents the expected performance of Ficken
Restaurants during its first five years of operations. Company sales are forecast to increase at a
rate similar to proven growth trends observed by other operators in the niche space. Net profit
margins also steadily rise as the business matures and the traditional learning curve of the firstyear is overcome.
The following table is accompanied by illustrations of monthly and annual profit and gross
margin estimates. Monthly profit and loss figures for the first full year are included in the
appendices.
REVENUE Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenue $ 1,019,670 $1,121,637 $1,211,368 $1,308,277 $1,412,940
Cost of Sales
Direct Materials $ 387,475 $ 426,222 $ 460,320 $ 497,145 $ 536,917
Total Cost of Sales $ 387,475 $ 426,222 $ 460,320 $ 497,145 $ 536,917
Gross Profit $ 632,195 $ 695,415 $ 751,048 $ 811,132 $ 876,023
EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5
Salaries & Wages $ 348,880 $ 376,790 $ 402,063 $ 429,235 $ 458,457
Personnel Burden $ 43,784 $ 47,287 $ 50,459 $ 53,869 $ 57,536
Franchise Fees $ 31,610 $ 34,771 $ 37,552 $ 40,557 $ 43,801
Supplies $ 1,800 $ 1,872 $ 1,947 $ 2,025 $ 2,106
Repairs and maintenance $ 1,800 $ 1,872 $ 1,947 $ 2,025 $ 2,106
Marketing & Advertising $ 36,405 $ 28,041 $ 27,861 $ 27,474 $ 27,552
Janitorial Expense $ 3,000 $ 3,120 $ 3,245 $ 3,375 $ 3,510
Accounting and legal $ 1,200 $ 1,248 $ 1,298 $ 1,350 $ 1,404Rent $ 38,400 $ 39,936 $ 41,533 $ 43,195 $ 44,923
CAM/Property Taxes $ 6,000 $ 6,240 $ 6,490 $ 6,749 $ 7,019
CC Processing Fees $ 18,492 $ 20,341 $ 21,968 $ 23,726 $ 25,624
Computer/IT $ 1,440 $ 1,498 $ 1,558 $ 1,620 $ 1,685
Utilities $ 7,680 $ 7,987 $ 8,307 $ 8,639 $ 8,985
Insurance $ 4,500 $ 4,680 $ 4,867 $ 5,062 $ 5,264
Depreciation $ 7,111 $ 7,111 $ 7,111 $ 7,111 $ 7,111
Postage & Delivery $ 600 $ 624 $ 649 $ 675 $ 702
Miscellaneous Expense $ 2,400 $ 2,496 $ 2,596 $ 2,700 $ 2,808
Total Expenses $ 555,102 $ 585,914 $ 621,451 $ 659,385 $ 700,591
EBIT $ 77,094 $ 109,501 $ 129,597 $ 151,747 $ 175,432
Taxes (real estate, income) $ 30,067 $ 42,705 $ 50,543 $ 59,181 $ 68,418Interest $ 36,931 $ 33,311 $ 29,362 $ 25,052 $ 20,350
NET PROFIT $ 10,096 $ 33,484 $ 49,693 $ 67,514 $ 86,663
Net Profit/Sales 0.99% 2.99% 4.10% 5.16% 6.13%
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Projected Cash Position
$(30,000)
$(20,000)
$(10,000)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Balance Net Cash Flow
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Pro Forma Balance Sheet
The proposed financial plan of Ficken Restaurants provides excellent financial strength and
liquidity. Company operations are designed to minimize loss and shrinkage while maximizing
existing resources in human and financial capital. The balance sheet in the following table is for
the initial five years of operations. The complete table, including monthly estimates for YearOne, is included in the appendices.
Assets
Current Assets Starting Balances Year 1 Year 2 Year 3 Year 4 Year 5
Cash $65,300 $43,316 $26,955 $27,244 $20,515 $18,151
Accounts Receivable $0 $0 $0 $0 $0 $0
Inventory $8,000 $24,578 $24,578 $24,578 $24,578 $24,578
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $73,300 $67,894 $51,533 $51,822 $45,092 $42,728
Longterm Assets
Long
term Assets $139,000 $139,000 $139,000 $139,000 $139,000 $139,000Accumulated Depreciation $0 $14,222 $21,333 $28,444 $35,556 $42,667
Total Longterm Assets $139,000 $124,778 $117,667 $110,556 $103,444 $96,333
Total Assets $212,300 $192,672 $169,199 $162,377 $148,537 $139,062
Liabilities and Capital
Current Liabilities Year 1 Year 2 Year 3 Year 4 Year 5
Accounts Payable $0 $218,983 $240,711 $254,138 $282,670 $301,121
Current Borrowing $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $218,983 $240,711 $254,138 $282,670 $301,121
Longterm Liabilities $440,000 $360,523 $317,164 $269,856 $218,238 $161,917
Total Liabilities $440,000 $579,505 $557,875 $523,994 $500,908 $463,039
Total Owner's Equity ($227,700) ($386,834) ($388,676) ($361,616) ($352,371) ($323,977)
Total Liabilities and Capital $212,300 $192,672 $169,199 $162,377 $148,537 $139,062
Net Worth ($227,700) ($223,186) ($388,676) ($361,616) ($352,371) ($323,977)
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