Sample Restaurant Business Plan (Lite)

The following pages are an example of a restaurant business plan. This document was compiled from a number of different sources and includes financial statements generated by the Virtual Restaurant Financial Modeling Spreadsheets. The content of this document is protected but general permission is given to use it for the development of a single business plan. This document is intended for use only as an example and a guide. There is no Vivando Restaurant as described below. The names, addresses, and phone numbers used are invented. The data and studies cited are fictitious. Warning: Although it may be tempting to simply change the names, etc. and present a finished plan without doing any research or fact finding specific to your project, we do not recommend it. This document is meant to be used only as a guide and the work you will do to recreate it for your own venture will be invaluable in both your efforts to raise money and your chances for long-term success. Note: this lite version of our Restaurant Business Plan Part 1: Narrative Outline & Sample has been edited and while still functional is not the complete version found in the original product. Certain sections and parts of sections have been deleted or modified, and not all of the financial documents or appedices are included.

Virtual Restaurant, Incorporated 2008. All rights reserved

Vivando Restaurant
Business Plan

June 8, 2005

Copy A4 Submitted to:___________________________

This information contained in this document should be considered proprietary and confidential. This document is the property of Vivando, Inc. and may not be copied or distributed without permission.

Vivando, Inc. Elliot Davies, President

Table of Contents

Executive Summary Company Description Industry Analysis Products & Related Services The Target Market The Competition Marketing Plan & Sales Strategy Operations Management & Organization Long-Term Development & Exit Plan Financial Data & Projections Appendix

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Executive Summary

Vivando Restaurant

Vivando, Inc., a Massachusetts based corporation, will operate Vivando, a single unit, medium-size restaurant serving healthy, contemporary style food and alcoholic and nonalcoholic beverages. The restaurant will be located at 645 Deacon Street in Cambridge, Massachusetts. The Vivando menu (see appendices) is moderate-low priced offering a collection of ethnic and American items with a common theme -- healthy (low-fat, low cholesterol, natural ingredients), flavorful, and familiar. Our goal is to create the image of light satisfying and still nutritious food. Our menu will be available either by eating in the restaurant, take-out or delivery. Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. There are 600 new restaurants opening every month and over 200 more needed to keep pace with increasing demand. Ideally, Vivando will expand to five units in the next 10 years. At that time, we will evaluate the extended operation and entertain the possibility of a buy-out by a larger restaurant concern or actively seek to sell to a new owner.

Company Description

Vivando Restaurant

Vivando, Inc., a Massachusetts based corporation, will operate Vivando, a single unit, medium-size restaurant serving healthy, contemporary style food and alcoholic and nonalcoholic beverages. The restaurant will be located at 645 Deacon Street in Cambridge, Massachusetts. Mission Statement The company's goal is that of a multi-faceted success. Our first responsibility is to the financial well being of the restaurant. We will meet this goal while trying to consider; 1) the effect of our products on the health and well being of our customers. Development & Status The company was incorporated in September of 2004 and elected sub-chapter S. The founders are Elliot Davies and Myrna Mason. Elliot is the President and Myrna the Vice President. Future Plans If the business is meeting its projections by month nine, we will start scouting for a second location and develop plans for the next unit.

Industry Analysis

Vivando Restaurant

Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. The Restaurant Industry Today The food service business is the third largest industry in the country. It accounts for over $240 billion annually in sales. The independent restaurant accounts for 15% of that total. The average American spends 15% of his/her income on meals away from home. This number has been increasing for the past seven years. Future Trends & Strategic Opportunities The predicated growth trend is very positive both in short and long-term projections. Folkney states again that as modern living creates more demands, people will be compelled to eat more meals away from home. In 2003 The National Restaurant Association released the Foodservice Industry 2010 report that forecasted how the industry might look in the year 2010. Some highlights from the panel's findings: 1. "Consumers will spend a greater proportion of their food dollar away from home. 2. Independent operators and entrepreneurs will be the main source of new restaurant concepts.

Products & Related Services

Vivando Restaurant

Vivando Restaurant will be offering a menu of food and beverages with a distinctive image. There will be three ways to purchase these products; table service at the restaurant, take-out from the restaurant, and delivery to home or office. The Menu The Vivando menu (see appendices) is moderate sized, and moderate-low priced offering a collection of ethnic and American items with a common theme -- healthy (lowfat, low cholesterol, natural ingredients), flavorful, and familiar. Our goal is to create the image of light satisfying and still nutritious food. There has been an increased awareness of nutritional and health concerns in recent years and a growing market of people who now eat this style of cooking regularly. Production Food production and assembly will take place in the kitchen of the restaurant. Fresh vegetables, meat and dairy products will be used to crate most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. Service There will be three ways a customer can purchase food. They may sit down at one of the 54 seats in the dining room and get full service from a waitperson. A separate take-out counter will service those who wish to pick up their food. Most take-out food will be prepared to order with orders coming from either the telephone or fax. Delivery (an indirect form of take-out) will be available at certain times and to a limited area.

The Target Market

Vivando Restaurant

The market for Vivando's products covers a large area of diverse and densely populated groups. Although it will be located in a downtown urban setting, it is an area where people travel to eat out and one that is also frequented by tourists. Market Location & Customers The Harvard Square area is one of the most desirable retail locations in New England. The Mass. Chamber of Commerce rates it as the third best retail market in the state. The customer base will come from 4 major segments: 1. Local population -- the city of Cambridge with a year-round population of 145,000 is centrally located in the Boston area and is within 15 minutes drive of 8 major suburbs. 2. Colleges and Universities -- Harvard alone has 6 different schools within walking distance of Deacon Street and a seasonal population of 22,000. In addition 5 more colleges near the square have large student bodies. 3. Tourism -- between hotels, motels, bed & breakfast rooms and inns, there are over 8,500 rooms available. Last year they were at 92% occupancy. The food concept and product image of Vivando will attract 3 different customer profiles: 1. The student -- more and more young people have developed healthy eating habits. Some also go through a "health food phase" while in college. 2. The health conscious person of any age or sex -- this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet. Market Trends & The Future The population and demographics of Harvard Square have remained steady for the last 14 years. Tourism has increased 24% over the last 3 years and is predicted to keep growing. Local businesses are increasing at a rate of 18% yearly.

The Competition

Vivando Restaurant

There are over two dozen restaurants in the Harvard Square area that sell food at similar prices. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. The newest competitors have made their successful entry based on an innovative concept or novelty. Competitor's Profile Competing with Vivando for the target market are these categories of food providers: 1. Independent table service restaurants of similar menu and price structure. 2. Chain restaurants of similar menu and price structure Independent operators include Grendel's Den, Iako, Bombay Club, Iruna, and The Border Cafe. Most are ethnic based and will carry at least two similar menu items. The major chain restaurants are House of Blues, Chili's and Bertucci's. All are relatively new but well established and profitable. They have big resources of marketing and/or a specialty product or attraction (House of Blues is also a live music club). Competitive Strategy There are three major ways in which we will create an advantage over our competitors: 1. Product identity, quality, and novelty 2. High employee motivation and good sales attitude Vivando will be the only restaurant among all the competition, which focuses the entire menu on healthy, low-fat cooking. Once they have tried the restaurant, their experience will be reinforced by friendly, efficient, knowledgeable service. Return and repeat business will be facilitated by accessible take-out and delivery options.

Marketing Plan & Sales Strategy

Vivando Restaurant

Market Penetration Entry into the market should not be a problem. The store has high visibility with heavy foot traffic all day long. The local residents and students always support new restaurants and the tourists do not have fixed preferences. Marketing Strategy Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketing vehicles will be created to convey our presence, our image, and our message. Print media -- local newspapers, magazines and student publications Broadcast media -- local programming and special interest shows Hotel guides, concierge relations, Chamber of Commerce brochures A public relations firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. Future plans and Strategic Opportunities Catering to offices (even outside of our local area) may become a large part of gross sales. At that point a sales agent would be hired to directly market our products for daily delivery or catered functions.

Operations

Vivando Restaurant

Facilities & Offices The restaurant at 645 Deacon Street is a 2400 Square foot space. It was formerly a restaurant and needs on minor structural modifications. The licenses and codes' issues are all in order. Hours of Operation The restaurant will be open for lunch and dinner 7 days a week. Service will begin at 11:00 AM and end at 11:00 PM. The restaurant will be closed Christmas, Thanksgiving, and the Fourth of July. Employee Training & Education Employees will be trained not only in their specific operational duties but also in the philosophy and applications of our concept. Systems & Controls A big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity. Food Production Most food will be prepared on the premises. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Delivery & Catering Food for delivery may be similar to take-out (prepared to order) or it may be prepared earlier and stocked. Catering will be treated as deliveries.

Management & Organization

Vivando Restaurant

Key Employees & Principals Elliot Davies, President. Elliot Davies is also the owner and manager of Grains & Beans, a local natural food wholesaler and retail store. Since 1997 his company has created a high-profile mainstream image for natural foods Elliot brings with him a track record of success in the natural foods industry. Compensation & Incentives Vivando will offer competitive wages and salaries to all employees with benefit packages available to key personnel only. Board of Directors An impressive board of directors has been assembled that represents some top professional from the area. Consultants & Professional Support Resources At the present, no outside consults have been retained, excepting the design department at Best Equipment. Management to be Added We are presently searching for a general manager and executive chef. Management Structure & Style Elliot Davies will be the President and Chief Operating Officer. The general manager and chef will report to him.

Long-Term Development & Exit Plan

Vivando Restaurant

Goals Vivando is an innovative concept that targets a new, growing market. We assume that market will respond, and grow quickly in the next 5 years. Strategies Our marketing efforts will be concentrated on take-out and delivery, the areas of most promising growth. As the market changes, new products may be added to maintain sales. Milestones After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at the end of year 1, we will look to expand to a second unit. Risk Evaluation With any new venture, there is risk involved. The success of our project hinges on the strength and acceptance of a fairly new market. Exit Plan Ideally, Vivando will expand to five units in the next 10 years. At that time, we will evaluate the extended operation and entertain the possibility of a buy-out by a larger restaurant concern or actively seek to sell to a new owner.

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Financial Data & Projections

Company Information Sources of Funding Use of Funding & Startup Costs Summary Gross Sales Calculation Detail of Expenses Monthly Cashflow Worksheet Income Statement - Year 1 Income Statement Projected 5 Year Break-Even Analysis and Scenario Worksheet Balance Sheet for Period Ending July 31, 2006 Costs Comparison Graph (More reports available on request)

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Appendix Lunch Menu Elliot Davies resume Proposed floor plan (not included) 27 28 29

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