The Panini Gallery
Executive Summary
The Panini Gallery will be in the business of making Panini’s; a specialty Italian inspired, grilled sandwich.
A Panini fills a popular focus, lunch, but can be eaten for breakfast, dinner, or as a snack. The Panini
Gallery will offer a product that is a different option compared to the main sandwich shops available to
downtown customers; customers can order their meal to go, or eat in the restaurant.
At an affordable price range of $7.00 and the convenience of a quick, satisfying meal, a Panini makes for
a non-exclusive meal available to anyone in the downtown area. The location will be on 2nd avenue; a
busy street with many shopping centres and businesses attracting hungry shoppers and workers. The
quality of the Panini’s will be high, with a focus on quality ingredients like roasted vegetables, in-store
made spreads and specialty cheeses. Bread will be ordered from the local bakery, Christies, and fruits
and vegetables purchased from local growers as much as possible. There will be a menu style with
options for individual choice of the ingredients used in one’s Panini, or there will be the featured
Panini’s of the day to choose from; the featured Panini’s will change as different ingredients are
available.
The shop will be incorporated and managed by myself, a Finance graduate from The Edwards School of
Business. Along with my Finance degree, I have industry experience; I have worked at a busy cafe for
three out of the four years it has been operating, and observed its successes and challenges as it has
grown. The cafe catered to a breakfast and lunch crowd downtown, so I am aware of the organization
systems and processes needed to maintain an efficient operation that delivers quality food to the public
along with good, fast service. I will include employees that I know personally, and hire based on work
experience and attitude. I will need one to four employees working at a time depending on the time of
day, and the presence of the manager. Employees’ duties will include serving customers, making
Panini’s, cleaning, and opening and closing the shop. The manager will be hands on, and work during the
busy periods of the day, and be responsible for training and hiring. Part-time employees will be hired,
and wages will start at $9.90, above minimum wage, and increase as their employment length increases;
pay raises as well as increased responsibility in the business are in place for long term employees, to
encourage low turnover. I will also include a partner involved in creating interior furniture and
equipment in order to lower costs of set up and have someone with good taste to help create a
welcoming and unique environment for the restaurant. I will have an accountant to maintain financials
and tax records and administer the pay role.
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The Panini Gallery
To develop a customer base and become well known, advertising will be starting in the first year of
operations. Local media outlets will be used, such as CFCR community radio, and Planet S magazine, to
reach a community orientated audience at a lower price than commercialized sources. The Panini
Gallery will sponsor community events, such as marathons and charity walks, by supplying Panini’s at
the events; this shows support for the community as well as creates awareness of the business. The
location alone of The Panini Gallery is a major advertising advantage; its store front will be made to
stand out to the many people walking by on 2nd avenue. Our image to the costumer is a restaurant that
offers a convenient meal that satisfies and is different; it’s healthy, quick, and delicious. Maintaining The
Panini Gallery’s image of quality and taste need to be ensured; to allow for efficiency of operations,
Panini ingredients will be well organized, workers will have designated roles for the day, and the
featured Panini’s will be made the morning or night before.
The Panini gallery will need $31,000 in capital expenditures to set up the operation. The plan is to
finance 1/3 from debt financing at 10% interest, and the other $21,000 will come from equity financing.
The building will be leased, which lowers capital expenses. Debt is valued at 10% to account for the risk
associated with a new business. The cost of equity has been rated as 25%; the 5 year projections of The
Panini Gallery provides investors with an 88.3% internal rate of return on investment, and an external
rate of return of 62% with dividend payments of $20,000 in the last three years. The forecasted value of
the business is based entirely on the critical risk variable of the number of customers per day. The Panini
Gallery expects an average of 80 customers per day in the first year and to grow by 25%, 15% and 5% in
years two three and four, respectively. The amount of costumers per day has been estimated using
figures that are 20% more conservative to a similar competitor’s, The Pita Pit, actual costumer flow. A
risk analysis of the economic and net income breakevens emphasizes the correlation of between
customers and success by showing that the estimated 80 customers are not much higher than the
minimum numbers needed to break even in the first year, but the cushion between expected and
breakeven figures grows in the future years.
Operations Plan
Mission statement: The Panini Gallery provides a meal with nourishment, convenience, and variety by
combining quality ingredients to form a deliciously satisfying Panini. For a healthy and delicious food
choice that can be enjoyed by a variety of different diets at any time of day, The Panini Gallery fills the
need.
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The Panini Gallery
A Panini is a delicious grilled sandwich made of a variety of ingredients to create a quick and satisfying
meal. The Panini Gallery will specialize in Panini’s and offer customers a meal to go, or allow them to eat
in store. The message to customers is that there are many ways to make a Panini, and at The Panini
Gallery, we make it their way; customers are presented with all the ingredients available, and they chose
what goes into their Panini. There are different diet needs and values, so vegan and vegetarian options
will be present. Ingredient categories for Panini’s will be varieties of bread, cheeses, deli meats, in-store
made spreads and fresh fruits and grilled vegetables. Panini’s can be eaten as breakfasts, lunches,
dinners or snacks; there will be options for desert Panini’s as well. The Panini Gallery makes a quick,
affordable meal that has quality ingredients that appeal to taste and to health interests with whole grain
bread options and nutritious ingredients. The location will be downtown, on 2nd Avenue in a busy area,
where shops and offices are located. Second avenue an ideal location; people can come in before or
after work, at lunch or on breaks. There are many shopping centres that attract many people
downtown, and these are all potential customers. There are not many healthy quick meal options in this
location, mostly sit down restaurants or coffee shops. The Panini Gallery’s goal is to attract customers
to a different option for a quick meal that offers good quality and taste, and continue to grow in
customers by maintaining a quality product and fast service.
Site Location
I will lease an 812 sq ft retail space, with 210 sq ft of mezzanine space, at 136 - 2nd Avenue South,
Saskatoon, a retail location, in the same building as Saskatoon Asian Restaurant and next door to the
Pita Pit. It is a highly visited location and is across the street from the Scotia Centre. This gives space for
a kitchen, storage space and customer seating. The traffic for the Asian restaurant will be ideal, since
they will become aware of The Panini Gallery when passing by it. Since the two restaurants offer
completely different cuisines, there is no competitive threat of being near one another. The Pita Pit
offers direct competition because of its similar cuisine and price, but it also acts as an advantage
because customers destined for the Pita Pit will see The Panini Gallery, and be won over by the different
option available to them. The retail stores in the location will also bring traffic by the location to create
potential customers.
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The Panini Gallery
Floor Plan:
Seating Area
Entrance
< Divider
Element
Panini
Grill
Sink
Oven
M
e
n
u
\
Fridge>
Work Counter
< Dishwasher
d
i
v
i
d
e
r
Seating Area
Till
Storage room:
- Deep freeze
- Food
- Cleaning and supplies
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The Panini Gallery
Legal Structure
The Panini Gallery will be incorporated.
Organizational Structure
I will use knowledge from the cafe I have worked and I will include employees that I know personally,
and allow them to have input as well. It would be ideal to involve a financing partner who can create
the interior furniture and equipment, in order to lower costs of set up and have someone with good
design taste. I will hire an accountant to handle all the financial reporting and taxes of the business, as
well as managing employee pay roles.
The Panini Gallery’s operations will be managed by the operations manager and the selling and daily
activities of the business will be attended to be employees during their shifts. The manager will be hands
on, and will train and hire, and work with employees to develop an understanding of the operations
among staff. The goal is for employees to understand the needs of the shop to run effectively so they
can be trusted to maintain operations without the constant presence of the manager. As operations are
in place and systems are understood, the manager will spend fewer hours in selling duties and focus
time on managerial duties. In addition to the manager, there will need to be an adequate amount of
employees, ranging from one to four, depending on the time of day and amount of customers to serve;
the manager will be responsible for managing the efficiency of employee shifts.
Job descriptions:
Part time employees: responsible for taking orders, serving costumers and making Panini’s. Ingredients
for the Panini’s will need to be managed throughout the day, such as grilling vegetables and creating
spreads as well as replenishing supplies ( extra food is in storage room) and when there is time, prepare
Panini ingredients needed for the next day (spreads, grilled items). The employees will keep up with
dishes and recycling as well as clearing tables, maintaining a clean store, updating the menu board and
taking out the garbage. When their shifts are done they will fill in a chart of their hours for the day.
Manager’s role: Check inventories of ingredients during the day, purchase groceries, place orders for
bread, put cash from till in safe, and manage employee shifts.
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The Panini Gallery
Average business day, week, month, and year:
Open 7 days a week:
Week Day/ (Weekend):

Open: 7 am – 6:30pm/ (10am-5pm)

6:30 am/ (9:30 am): opener starts work, turns on grills, brings out food needed for the day,
opens till for the day and does a general check of building and items need for the day

7 am/ (10:00 am): second worker arrives, helps with food, customers, dishes

7am-6:30pm/ (10:00 am- 4:00 pm): two to three workers plus manager on duty, depending on
shifts for the day, different workers may take over later in the day.

6:30pm/ (5:00 pm) - closer for the day makes sure that everything is clean and put away, does
cash out, closes.
Activities occurring:
Weekly:

Groceries are bought

Staffing is organized (who will be working and how many are needed based on restaurants
success)

Recipes are developed and organized

Employee scheduling is updated

Pay checks are made by accountant (on the designated payment dates)

Cash is put in bank
Monthly:

Updating months expenses

Accountant calculates and pays wages

Pay bills

Meet with those involved in business to discuss direction and issues that need addressing
Yearly:

Review financial statements

Year-end statements done by accountant

Set goals and changes needed for next year
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The Panini Gallery
Technical processes and procedures in the business – refer to appendix 1
People will come in to order from a list of ingredients they can choose from for their Panini. There will
be featured Panini’s of the day, which will depend on the time of year, and what is most available and
the prices of those ingredients. The customer’s order is taken, and the Panini is put together, unless it is
a featured Panini, and put on the grill. The menu board will change throughout the week, month and
year depending on different factors such as seasonal ingredients, available ingredients in store, and
prices of buying the ingredients. The featured Panini’s may be a lower price if it reasonable to do so to
encourage its purchase.
Supply Analysis
Capital expenses are required to purchase all furniture and supplies need for the Panini shop. Once the
business is operating, the important supplies are food needed to make Panini’s to serve to the
costumers. Bread will be ordered on a weekly basis from a local bakery, Christies, and the groceries will
be purchased weekly from wholesale stores. Local ingredients, such as vegetables and fruits will be used
when the season allows for it, and this will be through relationship with local growers. The main issue is
will be inventory turnover to maintain the needed freshness of ingredients. A deep freeze will be used to
manage turnover and freshness of some ingredients; extra loaves of bread will be frozen, as well as
meat and other freezable ingredients. Fruits and vegetables will need to be managed to have a one
week turnover to maintain freshness.
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The Panini Gallery
Table 1.0 Capital Budget
2010
Capital Budget
Air conditioner
counters
electrical instalation
Lighting
Wall Shelves
Kitchen Cabinets
Total Cost
Equiptment:
Dishwasher
Oven
Panini Grill
Fridge
Countertop Fridge
Chairs (9)
Tables
Cash Register
Deep Freeze
Sink
Cook top
Microwave
Kitchen Items
Total Equiptment
Total Capital cost
2011
3,255
2,400
670
200
150
1,000
7,675
6,100
3,200
2,400
2,200
1,300
1,710
1,500
465
300
150
149
120
893
20,486
28,161
2012
2013
2014
2015
232
232
232
232
232
232
100
100
2,200
855
750
232
232
232
389
389
489
391
4,196
4,196
Explanatory notes: Complete capital budget is provided in financial statements
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The Panini Gallery
Table 1.1 Operating and Marketing Expenses
2010
Operating Expenses
Lease
Electrical Bill
Insurance
Accounting Fees
Total Operating
Marketing Expenses
Website
Planet S
Sponser events
radio-cfcr
Sandwich board
Total Marketing
Total
19,316
2,146
1,000
890
23,352
1,000
1,629
7,800
10,429
33,781
2011
2012
2013
2014
2015
19,316
2,146
1,000
890
23,352
19,316
2,146
1,000
890
23,352
19,316
2,146
1,000
890
23,352
19,316
2,146
1,000
890
23,352
19,316
2,146
1,000
890
23,352
3,259
123
15,600
18,981
42,333
129
15,600
15,729
39,081
135
142
149
135
23,487
142
23,494
149
23,501
Explanatory notes: Refer to financial statements for complete operating and marketing expenses
Human Resources Plan - refer to appendix 2
I have taken on the role of manager. I bring 3 years of experience working in a local cafe that specializes
in quality food services like that offered at the Panini shop. I plan to hire staff that I know personally as
well as hire based on experience in other food services, I will increase staffing as the need increases.
Staffing will be coordinated around busy cycles of the day.
Salaries and wages
The manager will have a $50,000 a year salery, and all employees will be part time with starting wages
above minimum wage at $9.90 an hour. Employee retentention is important; therefore, I plan to
increase partime wages as length of empoyment increases and as revenues allow. Flexibility in shifts
will be allowed to accomodate for school or extra curricular activities of staff as a way to maintain
employees and keep moral high.
Training and Quality Support
Training will occur after hiring and will be done by the manager. Extra staffing will be needed on days
training occurs. As the staff become knowledgeable with business operations, they can help with
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The Panini Gallery
training as well. Trainee’s will be trained in the shop environment at lower volume times of day and will
only be serving costumers at low volume times until they are comfortable (two days is expected).
In order to maintain a consistant quality and high service level as well as a welcoming, unique
envoronment, the following procedures will be maintained:

Employees will be hired based on ability to work well with co-workers, ideally, with past
experience in food service/preparation

Consistant food preparation and cleaning procedure will be trained

Consistant methods of making panini’s will be trained to ensure quality and consistantcy of taste

Manager is responsible to establish a positve team orientated environment

Employees are encouraged to offer their own ideas for resipees or store improvements/changes

Staff parties/ diners will be held

Music choices are those of the staff working, as long as it is non-offensive
Marketing plan
Products and services
The target market is people who enjoy good quality ingredients and are interested in a convenient,
healthy meal. A Panini contains filling ingredients, so it can be a full meal or it can be a satisfying snack.
It is important to cater to the vegetarian and vegan dietary needs of customers. I plan to provide a range
of ingredients that satisfy different diets in order to stand out, since many competitors offer little variety
in their vegetarian and vegan meals. From the ingredient options, customers can choose what they
would like in their Panini and for those who can’t decide or who want the order to go faster, there will
be pre-made Panini’s to choose from.
Breakdown of projected sales – refer to appendix 2
The goal for earnings is to gain $204,400 in revenues in year one, with an average rate of 80 customers
per day. Revenues are planned to grow in proportion to increased customer growth per year.
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The Panini Gallery
Pricing – refer to appendix 3
The Panini Gallery is located on a popular downtown street, with numerous food options nearby. The
prices offered by the competitors will be in the same range as the price for a Panini. Pricing won’t stand
out; it will be affordable and comparable with other quick food options. What will stand out are the
different ingredient options available to customers and the quality of taste. There are no specialty Panini
shops near this location, The Panini Gallery is delivering a new product on 2nd avenue and one that is
reasonably priced.
Promotion – refer to appendix 4
The main goal is to sell people a Panini, but there are many options for other foods available to them
from competitors. To stand out, our image will install the thought, “that’s different”; people will see a
Panini as a treat to themselves that is nutritious and fulfilling.
When people are out and about and they get hungry, it can be difficult deciding on what to choose;
there are many options, but if one is by themselves, a restaurant is not the best choice. If one wants
something filling, affordable and quick, there are many options for that, but bakeries and fast food
places lack healthy choices; a Panini fills the need. I want people to see Panini’s this way, as a way to
feed their hunger needs.
To promote the different and fulfilling image of The Panini Gallery, the store front will display a fun
atmosphere; it will need to be welcoming and different, and I can achieve this through good music and a
unique design. The Panini’s will need to be the real performers; the focus will be on every Panini being
well made and of high quality in order to create a strong impression in customers. All the options
available to the customer will give the sense of satisfying, delicious and different since there will be
ingredients that one usually doesn’t find in an average grab and go meal, like specialty ingredients, instore made spreads, roasted and fresh vegetables, fruits and local baked bread options.
Advertising outlets will include community radio (CFCR) and Planet S magazine, a website, sponsoring
events, and a sandwich board on the sidewalk in front of the store. Community radio and Planet S are
chosen because of the lower price of the ads compared to larger sources, and the programs on CFCR
and articles in the Planet S attract an audience that is involved in the community and local businesses.
Saskatoon is host to highly attended local events such as marathons and charity walks that I plan to help
sponsor. Sponsoring events will include setting up a table with a business sign and supplying Panini’s in
order to create awareness of the business amongst the public while showing support to the community.
A website will be necessary because of the popularity and convenience of search engines and to have
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The Panini Gallery
information available to the public about The Panini Gallery. The website can be advertised when
sponsoring events and in all the other media outlets used. A sandwich board will be placed on the side
walk in front of the store to create awareness of passerby’s and to advertise specials of the day to
encourage people to come in and have a Panini.
Place
A location of The Panini Gallery is important; being located downtown, in a busy location provides a high
volume of people to come to the store. I will be targeting people who work or shop in the area. I don’t
have a selective income level since the price is quit affordable, but the taste of the people ordering will
be different than those who would go to McDonalds. I am appealing to a more health and quality
conscious crowd, but I’m also appealing to those who just want good tasting food.
SWOT Analysis
It is important to review the strengths and opportunities to take advantage of and build upon as well as
to address threats and weaknesses in order plan for and work to overcome:
Strengths:

Product stands out as a different option

Variety of combinations and recipe possibilities to create and maintain a unique product

Healthy meals and dessert options are offered

Focus on healthy options amongst consumers

Quick meal choice

Options to sit down or take out

Offering local breads and ingredients
Weaknesses:

We don’t serve popular beverages like specialty teas or coffees so we may lose business to the
cafes that do

Prices of popular ingredients such as vegetables and fruits will fluctuate with the season, causing
higher expenses at times
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The Panini Gallery
Opportunities:

Grow in dessert options- there are many desserts that can be made on a Panini grill, and t will
be a distinctive specialty product to offer

It is becoming popular for smaller eating establishment to host small shows for local musicians,
this can bring in more people, and attract new customers

Develop a good relationship with staff to keep turnover low, and decrease expenses of hiring
and training

Serve tea or coffee if it appears feasible and there is demand

Focus on coordinating menu choices of fruits and vegetables with the season they are best
priced in order to lower costs
Threats:

Easy product to duplicate

Other existing establishments can easily provide the service

Cost of rent is high because of location and it could increase and cause higher expenses

Economic situations effecting employment; it may be hard to find available, high quality part
time staff
Financial Plan
The financial plan consists of a five year future projection of the income statement, balance sheet and
cash flow. The financial forecasts are based on the following projections:

Marketing plan: revenue estimates

Operations plan: cost of goods sold, capital budget and operating expenses

Human Resource plan: wages and salaries
Economic Forecast – Schedule 1 in financials
Inflation is expected to be steady at 2% per year and revenue and cost figures are adjusted accordingly.
Sales is given a growth at 25%, 15% and 5% in years two, three and four, respectively. Costumers per
day are the main variable in revenues; the downtown location offers high traffic flow and it is expected
that with increased knowledge of the location growth will occur after the first year. The 25% growth rate
in year two brings customers up from 80 to 100, which are reasonable estimates given the 20% higher
customer flows observed at the Pita Pit, a direct competitor operating nearby. Growth declines in years
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The Panini Gallery
3 and 4 to demonstrate capacity limits with the current business model. Once in operation, if growth is
expected to increase substantially, expansion options will need to be put in place, such as more kitchen
space, more employees and a larger sitting room.
Debt Amortization Schedule:
The rate used for cost of debt was 10% and the expected future rate remains at 10%. It is a new
business with no proof of operating success, so the rate will be above the prime rate to demonstrate
risk. The amortization period of debt consists of even payments to pay off the original debt taken on in
year one. No additional debt is taken on in future years. Schedule 7 in the financial statements shows
the payments for debt.
Dividend Policy:
Dividends of $20,000 are planned to be given out to equity holders starting in the third year of
operations. The amount allows for a healthy cash flow balance to be maintained for unexpected
expenses and to maintain liquidity, while giving some return to the owners of the business. As
operations continue, there will be room to grow dividends in the future years. Dividend payments can
be viewed in the cash flow statement of the financials.
Investment Analysis:
Schedule 12 of the financial model represents the investment analysis. To reflect the riskiness of this
venture the rate of return use is 25%. The initial investment needed to cover capital expenses is
expected to be $31,000, $21,000 coming from equity (schedule 6 in financials). By leasing the building,
capital costs are lower. The projected cash flows and dividends, as well as a price earnings multiplier of 4
used in the fifth year, make expected internal rate of return 88.3%, with a healthy net present value of
the cash flows at $71,653.
Ratio Analysis:
Ratios considered are the debt ratio, gross profit margin, net profit margin and the employee wages to
sales ratio. Debt decreases steadily over the projected 5 years because annual payments are decreasing
the initial amount of debt and no new debt taken on. The gross profit margin (Revenues/ Gross profit) is
maintained at 60% to meet food industry standards; Panini’s are priced to meet this ratio. The net profit
margin (Revenues/ Net Income) grows from year 1 to 4 and remains steady in year 5; it is important to
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The Panini Gallery
see growth in this margin to assure that revenues are covering expenses. The growth in net profit
margin can be attributed to the projected growth in customers in years 2 to 4, and the lack of growth in
year 5 is from no increase in customers. Employee wages are 25% of revenues to reflect the flexible
scheduling that coordinates with the costumer flows per day; an industry average of 25% is used in
restaurants. Ratio analysis can be seen in schedule 11 of the financial statements.
Risk Analysis:
The number of customers per day is the variable that has the most effect on the business. Marketing is
one way to address the need, the downtown location of the store front will be the main point of
advertising to customers, since it is easily visible, plus other forms of media use, as described in the
marketing plan will be needed. Marketing create awareness, but focus will be put on quality of product
and service to each customer in order to create repeat customers and positive word of mouth.
Breakeven Analysis - refer to appendix 6 and 7
Breakeven analysis is used as the sole identifying of the riskiness of the venture based on the critical
success variable, the costumers. Net income breakeven and economic breakeven are calculated to
show, respectively, the businesses success in the long term and in supplying adequate returns to
investors.
The economic breakeven and the net income breakeven demonstrate how the number of costumers
reflects business success. The break even figures are used to address the riskiness of the business’s
success by comparing forecasted costumer amounts with the amount needed to breakeven; the wider
the gap, the less risky the revenues are.
The following is the results of the break even figures compare to the forecasted business plan used:
Net Income Break Even needs compared to forecasted business plan:

78 customers per day in the first year in place of 80 customers

Internal Rate of Return of 2.9% in place of 88.3%

NPV of -$9,078 in place of $71,653
Economic Break Even needs compared to forecasted business plan:

61 customers per day in the first year in place of 80 customers

Internal Rate of Return of 25% in place of 88.3%

NPV $0 in place of $71,653
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The Panini Gallery
Appendix 1: Menu Sample
Panini Menu
Today’ s Creations:
Vegetarian
Vegan ( ask server for options)
Price: 7
Turkey and Brie
A classic, roast
turkey, brie cheese
with cranberry
sauce
Prosciutto and Fig
Artichoke and
Eggplant
Roasted Red
Pepper
Prosciutto and Fig
Panini with asiago
cheese and a touch Spinach,
of rosemary herbs Mozzarella and
Roasted Red
Pepper with an
olive tapenade
Grilled eggplant
with artichoke
caper spread and
fontina cheese
Breakfast
Panini
Bacon and eggs
with arugula,
provolone
cheese and
basil pesto
Hold the
bacon
Price: $ 7
Make Your Own Panini:
Breads








White
Brown
Multi-grain
Rosemary herb
Garlic & onion
Sourdough
Pumpernickel
Fruits / Vegetables
Spreads





Basil
pesto
Sundried
tomato
pesto
Garlic
hummus
Olive
tapenade
Dijon
mustard







(choose 1)
Oven roasted
tomatoes
Oven roasted
sweet
potatoes
Artichoke
hearts
Oven roasted
peppers
Fresh peppers
Spinach
Figs
Arugula
( choose 2)
choose 3
Cheeses









Fruliano
Smoked
gouda
Fresh motza
Chevre
Havarti
Smoked
cheddar
Brie
White
cheddar
Feta
Meats







( choose 1)
choose 2
(extra : $0.50)
Prosciutto
Smoked
turkey
Spicy salami
Pepper corn
turkey
Roast
chicken
Honey ham
Bacon
( choose 1)
(extra: $0.50)
Dessert Panini’s
Banana waltz... banana, walnuts and fudge fused in a croissant
Apple-ooza… caramelized apples dusted with cinnamon and grilled in puff pastry
Cinnamon toast… roasted pecans, maple & cinnamon served in your choice of toast
Cranberry lemon… cranberries and cream cheese between in lemony pound cake slices
Add a scoop of ice cream for $ 1.00
Business Plan
Page 16
The Panini Gallery
Appendix 2: Traffic Breakdown
Breakdown of Sales- Daily
Time of Day
7am-11am
11am-2pm
2pm-6:30pm
Sat and Sun
10am-12pm
12pm-2pm
2pm-5pm
Business Plan
% of Sales Quantity
Total Revenues
Cost/unit
Profit
10%
65%
25%
100%
10
65
25
100
70
455
175
700
24.5
159.25
61.25
245
45.5
295.75
113.75
455
10%
70%
20%
100%
5
35
10
50
35
245
70
350
12.25
85.75
24.5
122.5
22.75
159.25
45.5
227.5
Page 17
The Panini Gallery
Appendix 3: Projected Revenues
Schedule 2: Revenues
Year
Customers per day
Average $/customer
Meals
1
80
2
100
3
115
4
121
5
121
7.00
7.14
7.28
7.43
7.58
Avg Growth Prices
Meals
2.0%
2.0%
2.0%
2.0%
2.0%
25%
15%
5%
Avg Growth Customers/day
Revenues
Meals
Total revenue
Business Plan
204,400
204,400
260,610
260,610
305,696
305,696
327,400
327,400
333,948
333,948
Page 18
The Panini Gallery
Appendix 4: Competitor Analysis
Location
Attraction
Price (Cdn $)
The Pita Pit 100 2ND AVE S
Fast, convenient and healthy
$6-$8
food
Fuzion Sushi & Deli Bar 100 2ND
Healthy and near 2nd Ave
$10-$15
Fast and convenient
$5 -$7
Sandwiches and coffee
$5-$8
AVE S
McDonald's Restaurants Of
Canada Limited 102 2ND AVE N
Strongfields 167 2nd Ave S
Convenience and location
Badass Jack's Subs & Wraps Co
Fast, convenient and healthy
$5-$8
152 2nd Avenue South
food
Grandma Lee's Bakery & Eating
Lunch items
$5-$8
Popular, offers baking
$2-$5
Place 350 3RD AVE N
Starbucks Coffee Co Ltd 100 2
Avenue South
Business Plan
Page 19
The Panini Gallery
Appendix 5: Marketing Chart
Website
2010
2011
2012
2013
2014
2015
1000
0
0
0
0
0
Planet S
1,629
3,259
Sponser
events
123
129
135
142
149
15,600
15,600
-
-
-
18,981
15,729
135
142
149
RadioCFCR
7,800
Sandwich
-
boark on
side walk
Total
10,429

Colour represents years advertising is present
Business Plan
Page 20
The Panini Gallery
Appendix 6: Investment Analysis
Schedule 12: investment Analysis
Year
required ROE
Net Present Value
Internal Rate of Return
External Rate of Returm
(21,000)
Business Plan
2
3
4
5
6,669
-
16,336
-
6,514
20,000
7,278
20,000
6,669
16,336
26,514
27,278
11,808
20,000
127,232
159,040
2
3
20,000
4
20,000
5
147,232
25%
Net Cash Flows to Equity Investment
Net Cash Flow
Dividends
Terminal Value
(21,000)
ERR
1
71,653
88.3%
1
-
-
62%
Page 21
The Panini Gallery
Appendix 7: Risk Analysis and Breakeven
Net Cash Flows to Equity Investment
Net Cash Flow
Dividends
Terminal Value
(21,000)
Economic BE
Costumers/ day
Net Present Value
Internal Rate of Return
External Rate of Returm
(21,000)
ERR
(6,979)
-
6,647
-
(13,708)
30,000
(20,078)
30,000
(6,979)
6,647
16,292
9,922
(23,943)
30,000
24,229
30,286
76
87
91
91
2
-
3
30,000
4
30,000
5
54,229
25.00%
15.00%
5.00%
0.00%
61
25.0%
1
-
52%
Average costumer growth
Break Even Analysis
critical risk variable: number of costumers
NI BE
2010
NI
Costumers/ day
78
NPV=
(9,078)
IRR=
2.9%
Business Plan
2011
2012
-
2013
-
82
2014
-
81
80
79
Page 22