Can-Sian Restaurant
By: Ye Yang
Sang Kim
Natsuko Soejima
Vince Wang
Chloe Liu
Jin Liu
Elements of a Business Plan
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Goals and Missions
Management Team
Location
Product / Service Description
Market Opportunity
Competition Analysis
Financial Projections
Legal Requirement
Goal:
• Produce good reputation and royalty
from consumers.
• We expect to have a constant 15%
annual growth rate,
Mission:
• We supply the good quality and
delicious food with reasonable price.
• We provide a good balance diet to
customer
• We provide a good atmosphere for
the family to spend time together.
Management Team:
• Experience in catering industry for
10years
• Chief Chef was awarded the Best
Chef in Korea in 2000
Location
The West Lethbridge Advantages
 Population of Lethbridge
Location
The strongest population growth
• University Students
• New Housing
No direct competitors
Not enough restaurants in West
Location
Specific Site
• West Village Mall
– Easy access from University Drive.
– Close to a dense population of the
target market
– Walking distance of University
– Enough parking spaces
Product:
Quality must be at the fore of our
product:
• Quality in Food
• Quality in Service
What Type of food we
provided:
• Chinese Food
• Korean Food
• Japanese Food
Integrating supply chain
Three main ingredients
Meat (Beef, chicken and fork)
Vegetables (typical vs. basic)
 Other ingredients (spices, salt, sugar and
etc.)
5 conditions
Continued
 Cost: Charges for transportation
 Time: Adequacy and speed of transit
 Capability: The competency of suppliers to
provide amounts of ingredients we request
• Dependability: Reliability of service
regarding time, loss and damage
• Frequency: Scheduling
Meat supplier
 Local (Lethbridge) transaction
 Advantage
1.Best quality
2.Cost effective: low cost for transportation
3.Easily monitor: How the supplier produces
products (quality of meat)
4. Customized products
Vegetable supplier
Typical ingredients (Chinese white cabbage, Japanese parsley..)
Transaction proceeded in Calgary (Chinatown)
1)
2)
3)
4)
The cost for transportation
Possible economic detriments regarding to time, damage and loss
of vegetables.
Typical services offered by supplier (delivery, discounts, credit,
promotion, promotional support materials, guarantees and
technical assistance) are not guaranteed.
Need to acquire dependable suppliers and capability of managing
adequate inventory level (constant and accurate inventory check).
continued
Basic ingredients (onion, garlic, rice…)
• Transaction proceeded in local markets
• Local farmers
Integrated market: Farmer’s market in Lethbridge
None or inexpensive cost for transportation: delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other
ingredients
Ingredients like sauce, salt , pepper,
sugar..
Easily run out but easily purchased
from local retailers (Wal-Mart,
Sears Canada..)
Inventory
Using inventory organizer (Chart or notice board)
and collective inventory management involving all
managers and employees.
1)
Unnecessary to purchase them in large
quantities.
(expense of cash out of our pockets)
2) Accurate estimation from chefs, assistants and
employees
Two ways to purchase equipments
• Buying the used Equipments
• Leasing
3 conditions for purchasing decision:
Sales service: credit sale,
guarantee,..
Repair
Affordability: reduce star-up cost
Marketing opportunities
target market:
• families in Westside
• University Students
Marketing strategy
• Taste and service
• Pricing
Competition
Advantage:
• No Chinese restaurant in Westside
• Only have the fast food chain
available
Disadvantage:
• Low competitive with downtown
restaurant
Advertising
• Flyer
• Coupon
• Word of Mouth
Sales promotions
• Lunch combo
• Discount for every Tuesday
Personnel
• 2 Chefs
• 1 Store Manager
• 4 Part time waiters
Start Up Cost
Item
Cost
Equipment
15000
Inventory
10000
Wages (first 2
months)
19520
Utilities
Deposite
100
First 2 months
800
Rent
Deposite
First 2 months
Advertising
Insurance
1000
20000
400
3700
Licences and
permits
850
Others Pre-Paid
200
Contingancy
Total Start up Cost
1000
72570
Pro Forma Income Statement
2006
2007
2008
288000
34500
380160
43200
51840
57024
244800
276480
304128
120000
120000
120000
1200
1200
1200
117120
117120
117120
2000
2000
2000
Insurance Expense
3600
3600
3600
Utilities
4800
4800
4800
248720
248720
248720
-3920
27760
55408
8820
7140
5460
-12740
20620
49948
Income Tax
0
5155
12487
Net Income
-12740
15465
37461
Net Sales
Cost of Good Sold
Gross Margin on Sales
Expenses
Rent
Selling Expense
Advertising Expense
Wages and Salaries
Depreciation Expense
Total Operating Expense
Profit Before Interest and
Tax
Interest payment
Net Income before tax
Break- Even Analysis
Break-Even Analysis
Profit/ Loss
400000
200000
0
-200000
Profit/ Loss
0
310900
621800
-400000
Revenue
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The Fixed Cost is $248720
The Contribution as % of Sales is 80%
The Break-Even Point is $310900
Legal Requirements
Legal Structure:
Limited partnership with 4 silent
partners.
Legal Requirements
(Cont’d)
Licenses and Taxes:
Provincial business license
Taxes:
Provincial Sale Taxes (PST)
Goods and Services Taxes (GST)
Legal Requirements
(Cont’d)
Intellectual Property
Protection:
Gain a trademark from government
for the name of our restaurant—CanSian.
QUESTION??