<per>Dinner Theater Business Plan<per>
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<b>Executive Summary</b>
1.0 Executive Summary
Belle Ã?poque will be a restaurant and exciting Dinner Show located in Bigsmalltown, Upstate,
that celebrates the era of cultural refinement, social elegance, and general prosperity in the last
decades of the 19th and first decade of the 20th centuries. The exuberance of the "Gay 90s" era
will be rekindled as we model our restaurant on the establishments of the Montmartre district
of Paris such as the famous Moulin de la Galette.
The decor will be similar to that of the restaurant/dance hall/theatres of 1890s, and feature
artwork of the Impressionists such as Pierre-Auguste Renoir, Henri de Toulouse-Lautrec, Mary
Cassat, and Berthe Morisot. Hosting and serving staff will dress in period costume.
The combination of a Montmartre dance hall, bon vivants, famous artist and lively music is why
our restaurant is so dynamic. The exciting and exhilarating aspect of this restaurant is that it
transcends beyond decorations and moves into a real life, first person experience - face to face.
From the singing aloud of ditty's, to the hearty, back-slapping laughter or breathtaking can-can
dancing - every second is a treasured, emotional meeting with Alfred Dreyfus or Madam La
Goulue, "look-alikes."
Our menu is a varied, international, tasteful extravaganza. Each page is highly illustrated with
artists drawings of the regional cuisine, a tiny map of the world showing the region and
indigenous ingredients. The majority of the menu is the cuisine of France, and America, though
we will offer specialties from Japan, Korea, Phillipines, Italy, Germany, France, Mexico, Spain,
Belgium and Middle East. A few pages are devoted to White House and Camp David stylings
where Chef Joachim served the First Family. We will offer a 10 item wine card "By the Glass
Daily Selection", wines by the bottle, and a special cellar collection.
Belle Ã?poque is the first in what hopefully will become a chain of similarly themed restaurants.
It offers a new and exciting concept that is already being done in other successful era's such as,
"Capitan Hook" www.capitanhook.com and "Medieval Times" www.medievaltimes.com. These
concepts are expanding with cash driven proofs of winning financial operation. Originally
laughed at and stereotyped as ridiculous for a dining concept, these outlets are reaching new
potential and breaking previously set sales figures. Medieval Times started as a single location
and opened its eighth restaurant and show in March, 2004. We aim to attract customers from
the same market niche, but with a Impressionist/Moulin Rouge theme.
Executive Chef Joachim Oignons will lead the management team. Chef Joachim is retiring from a
30-year military career during which he won many awards, served as Executive Chef to the
President of the United States, and managed multiple U.S. government restaurant/food service
venues world wide.
Highlights
1.1 Objectives
1.Build and create a restaurant that celebrates the belle epoque/gay 90s era in
European/American history. Celebrating the high society of that era will be done via skits, acts,
drinks, music, demonstrations, food, a small museum, fantastic show and dance. The
measurable objectives will be:
oOpening night in full regalia and profitability within two months
oGross sales receipts of $1,000,000 by third month
oFood costs not to exceed 35% total operation
2.Deliver a stunning, unbelievable, international menu to the local and summer "swell"
community that produces 96% satisfaction surveys or higher and profits in excess of 200%
Return on Investment (ROI). Surveys to be done for sixteen weeks by an independent third-party
review agency.
3.The international menu will reflect the Belle Ã?poque era of the late 19th and early 20th
centuries. This objective will be reviewed by a number of friends who are Presidents and
Continental Directors of their respective countries in the World Association of Cooks Societies
(WACS)(www.wacs2000.org).
4.Continuous analysis and outsider inspections will be held to fine-tune objectives via goal
planning, Directives, Operations, Objectives ands Milestones (DOOM) and weekly Best
Objectives Review Evaluation (BORE) meetings.
5.Objectives will be handled in a planning and strategy sense espoused by business leaders.
Business will be conducted monitoring our Profit and Loss statement numbers, local business
owners of restaurants and their own marketing ploy, advertising and profits. Consultants will be
on minor, as needed retainers not to exceed $10,000 per annum.
1.2 Mission
Belle Ã?poque offers an impressive, blockbuster revue of international food, fare and drink
centered around the high culture and exuberant night life of the Montmartre district of 19th
century Paris. Our combination is wonderful food and Impressionist history. This revue also
includes our shows, acts, skits, original music and entertainment for the customer - whom we
live to impress and make happy.
In each and every facet of all that we do - the focus remains on the customer. Likewise, our
employees never work "for us" - rather they work "with us" - and as such - they are our
customers also. We are all serving each other in some capacity.
Our focus includes community service, involvement and family. We will always be deeply
involved with the community and people of Bigsmalltown. Belle Ã?poque is also an excellent
place to work, a professional environment that is challenging, rewarding, creative, and
respectful of ideas and individuals. Belle Ã?poque ultimately provides excellent value to its
customers and fair reward to its owners and employees.
1.3 Keys to Success
1.Production of a high quality menu and superior ingredient sourcing.
2.Training of a crack workforce, with paper lists that detail daily actions, and managerial followup that ensures winning goals are completed. Food production books, recipes, management
routine, records and returns will be detailed.
3.Practice by dinner show participants and actors will produce a fantastic show. Continued
excellence in performance will come in diversity of workforce training and a, "Qualification
Card," system - similar to the system successfully used by the U.S. Navy.
4.Distribution of some profits to the workforce will breed cyclical results that exceed first five
year goals.
5.Unusual interior design and outdoor landscaping.
6.The actors and staff learn habits, quips, funny answers and anecdotal comments for customer
enjoyment. Similar in concept to the highly profitable and world known, "Ed Debevics" "50's"
diner in Chicago.
7.Excellence in fulfilling the promise - reliable, trustworthy expertise in operation, leadership
and management of the show and restaurants.
8.Developing visibility to generate new business leads.
9.Leveraging from a single pool of expertise into multiple revenue generation opportunities: bar,
restaurant, catering, show, and events.
Among the 2004 National Restaurant Association highlights for the restaurant industry are:
The restaurant industry's anticipated sales of $440.1 billion equal 4% of the U.S. gross
domestic product.
2004 will mark the 13th consecutive year of real growth for the restaurant industry.
The number of restaurant locations in the United States will grow to 878,000.
The restaurant industry will employ 12 million people, making it the largest privatesector employer in the nation.
Continued expansion will occur, driven by Americans' need for convenience and
socialization, and a healthy increase in disposable income.
New menu items in response to diners' increasingly sophisticated tastes, and
heightened interest in health and nutrition.
Greater efforts by lawmakers to regulate restaurants.
According to Norwalk, CT based Adams Beverage Group and Restaurants and Institutions
magazine (June 1, 2004)
Wine sales in restaurants rose 8.1% in 2003
Company Summary
2.0 Company Summary
Belle Ã?poque is a restaurant with lunch and dinner menus and a theme show for dinner only. It
welcomes artists, historians, living history interpreters, and re-enactors to its grounds for, plein
aire painting sessions, historical shows and events. It features the culinary adventures and
exquisite tastes of late 19th century Paris as prepared under the exacting standards of Executive
Chef Joachim Oignons.
Chef Joachim retired as a Senior Chief Petty Officer and was the first ever American Culinary
Federation Executive Chef in Camp David's history. As a Navy Executive Chef to the President of
the United States he excelled in the history of America at the Catoctin Mountain Retreat and at
the White House. He later was asked by the Navy to live around the world, in Asia, Arabia and in
Europe - cooking for Admirals in Japan, at NATO and for Lords, Prime Ministers, Kings and
Queens, royalty, stars and public personalities. His food is fully representative of direct
experiences - worldwide, with international culinary favorites learned firsthand.
2.1 Company Ownership
Belle Ã?poque has been solely chartered as a Upstate LLC corporation based in Border County,
owned by its principal investor and principal operator, Executive Chef Joachim Oignons. It is
expected to drop the LLC status within three to five years and seek Sub-chapter S, followed by C
status, pending changing tax laws, the economy and review of profit and loss statements.
Additional investors may bring forward additional operations assistance and staff.
2.2 Start-up Summary
Start-up expenses include legal costs, artwork, property lease or purchase, remodeling, logo
design, computer software, stationery, liquor license, and related expenses.
Start-up assets required include short-term assets (office furniture, tablewear and glasswear,
signage, and small kitchen equipment and utensils, kitchen and server uniforms and costumes
etc.) and initial cash to handle the first few months of operations - as sales and accounts
receivable play through the cash flow. Inventory for the first two weeks of operations will need
to be ordered and delivered in the week prior to opening.
Long-term assets include office computers, serving staff workstations, kitchen terminals, POS
terminals, security and fire alarm systems, shelving, food storage.
This plan assumes moving into a retrofit of a former restaurant where tables, chairs and kitchen
stoves and equipment are in place. If that is not available an additional $500,000 to $600,000
will be needed for a scratch start.
Start-up
Start-up
Requirements
Start-up Expenses
Legal and Attorney's Fees
$12,288
Stationery and Office Supplies $12,341
Brochures
$3,382
Consultants
$3,900
Insurance
$9,809
Remodeling Expenses $19,400
Utilities $2,000
Liquor License $100,000
Rent or Mortgage 1st month/startup
Research and Development
$14,000
$1,300
Total Start-up Expenses $178,420
Start-up Assets
Cash Required $50,000
Start-up Inventory
$75,000
Other Current Assets
$17,000
Long-term Assets
$175,000
Total Assets
$317,000
Total Requirements
$495,420
Start-up
Services
3.0 Services
Belle Ã?poque offers a first-of-its-kind in the area entertainment and dining concept with
excellent, tasty food. The interaction with live human actors from 1890s Paris is fascinating. The
concept is not content to just deliver the service of good food and friendliness though. It offers
colorful, haute culture actors by day, and an entertaining, optional Moulin de la Galette evening
dinner show that will amaze and delight. Our table side service is extremely fun and unique. The
wine bottle selection and daily, "by the glass," wine card will be in addition to our selection of
beer on tap and fully stocked bar. The catering will also entertain and thrill customers (i.e.
bringing the show to their event).
Market Analysis Summary
4.0 Market Analysis Summary
Our main target market is quite simply the well known vacationing family or vacationing friends,
lovers and fun-seekers. A smaller sub-section of locals will visit us as well.
The local winter season resident population is 250,000 people (Source: U.S. Census).
The summer season visitor attendance is 4.5 million visitors of which:
75.5% are families with two or more children
17.6% are single
2.6% are senior citizens
78.3% are between the ages of 28 and 54
56.34% earn more than $50,000 per year
The average stay is 4.6 days
Spending per day varies between $78 to $300
Tourism dollars generated in Bigsmalltown are $3.64 billion (Source: Rovelstad & Associates,
Longwoods International)
TOURIST SEASON IS BASICALLY FIVE MONTHS LONG - FROM MAY TO SEPTEMBER
Restaurants generate $1.006 billion
Retail generates $675 million
Lodging generates $1.183 billion
Automobile generates $449 million
Recreation generates $303 million
Transportation generates $30 million
Bigsmalltown at a Glance as of 2003 - The Official Border County Government Report
PEOPLE
102,326 year round residents with an estimated summer population of 614,261
5% of the people are under 5 years old
22% percent are under 18 years old
20% are over the age of 65 years old
Per capital income is $24,172
Median household income is $41,591 and is increasing
There are 91,000 housing units consisting of 46% year round residents and 54% used for
seasonal and recreational
GEOGRAPHY
Encompassing 256 square miles of land area located at the southern tip of Upstate
Made up of 16 municipalities
30 miles of white sandy beaches and islands with thousands of acres on the mainland
preserved for open space, farmlands and natural conservation
With over 70 square miles, Village Township is the largest geographically of all the
municipalities
Bocage Township is the most populated with almost 23,000 people
ECONOMY
Tourism represents the number one industry generating over $3 billion a year in
revenues
Total labor force of 49,201 people
There are 3,693 private establishments
The Services sector of the economy employs 37% of the labor force followed by the
Trades that employ 36%
Government employs 10% of the labor force
4.1 Market Segmentation
We use this topic to explain the Market Analysis table and chart, below. Our analysis is based on
a list of potential customer groups, each of which is a market segment.
The family segment looking for fun while on their week of vacation.
The local residents included in the summer population looking to see something new or
to take guests in town out to a great, proud place. Local residents are increasing with
condominium ownership and increased building.
Long distance drivers coming in especially to experience our dinner show. This last
geographic segment will normally travel one driving day or up to 300 miles for a short weekend
stay.
There are two specific sub-groups of clientele within each of the listed segments: the lunch
crowd, casual drinking (wine specifically, market encouraged), and our nightly "Admiral's Table"
crowd. Both of these segments (especially wine drinkers) are slightly more sophisticated;
average bar drinking age is about 25 to 34-plus years old while the dining room averages 35 to
54-plus. Household income is upper middle, in the $75,000 and up range. We hold these specific
two groups to be similar to McCormick & Schmick's - a close match to our offerings (data as
reported in Market Watch, October, 2003).
Some of the more recent trends include correlating behavioral patterns and so-called
psychographics, which produced the famous classification of, "yuppies," as young urban
professionals, and of course the, "baby boomers," with certain buying patterns. We believe both
of these segments will frequent Belle Ã?poque.
Teenagers sort themselves into marketing groups with names like, "preppies, dudes, gothic,
jocks, and skaters." Each of these labels actually stands for certain sets of behavior patterns, and
has some value in segmentation. These segments will attend our offerings in groups for class
trips and major events. They also will attend with their parents for general dining and we plan
on marketing directly to their segment. An example of successful teenager marketing is the
offering of bottled sodas instead of just fountain service. Teenagers are highly ranked for their
liking of bottled soda over all other categories - due to its extra pep and fizz.
Marketing one simple item to a specific segment generates sales across the board. Especially
when teens encourage parents to "go to Belle Ã?poque tonight." This is only one, direct example
of techniques to be employed for market domination via segmentation understanding. We have
other areas and methods scheduled. Many are based on award-winning experience, financial
success, and published books by noted experts.
Market Analysis
Market Analysis
2004
Potential Customers
2005
2006
2007
2008
Growth
CAGR
Weekly summer population
5%
255,000
265,000
225,000
4.18%
235,000
245,000
Weekly winter population
5%
4,808 5,008 5,208 5,408 5,608 3.92%
Long distance customers
2%
5,000 8,000 12,000 15,000 20,000 41.42%
Total
5.47% 234,808
5.47%
248,008
262,208
275,408
290,608
Market Analysis (Pie)
4.2 Target Market Segment Strategy
We cannot survive just waiting for customers to come to us. Instead, we must focus on the
specific market segments whose needs match our offerings. Focusing on targeted segments is
the key to our future. We will attract customers with live performances and distribution of
brochures.
Therefore, we need to focus our marketing message and our product offerings. We need to
develop our message, communicate it, and make good on it. The Marketing Strategy topic
contains the details of our tactics and programs.
4.3 Service Business Analysis
The restaurant and entertainment show business is dynamic and fast paced. It offers exciting
food and dining experiences with high profit margins. Interested owners who have extensive
multi-decade experience will almost always do well. Those who have theater and acting
experience, combined with 20 to 30 years of business success, will do extremely well in profit,
employee and customer happiness. This service business provides rewards via customer
satisfaction surveys.
4.3.1 Competition and Buying Patterns
In one part of the restaurant market competition depends on reputation, advertising, and the
dining experience of the customer. In another, competition centers around location and parking.
In most cases the restaurant industry strongly relies on word-of-mouth recommendations over
advertising. Word of mouth is the secret in retaining long-term satisfied customers. This,
combined with changing drama shows each year, and other side acts, will ensure that diners
return.
Customers will choose our business over others from the first time they see our actors dressed
up in the mall handing out brochures or in parking lots staging mini-shows. We have extensive
experience with free publicity. For instance, Chef Joachim recently appeared on the Today show.
He has also filmed many other shows all over the world and in a number of different languages.
Appearances on the public boardwalks, streets and anywhere that is free - such as at huge
events, competitions, conventions and more, will attract the public. Customers will definitely
choose us due to our personal and face-to-face interaction in a dining experience. Host and
serving staff will dress in period costumes, and those with a yen toward acting and performance
will be encouraged to play the parts of denizens of Montmartre, during the Paris' cultural
heyday. Staff will regularly portray famous members of Parisian high society including
Impressionist painters, theatre doyens, writers, philosophers, etc.
All too often the problem with today's restaurants is that they look great, have waterfalls or
beautiful physical decoration, or great motifs and themes, but are missing the human
element...the host or server who is unpredictable and physically shakes your hand. The dining
experience should not be another video simulator or Nintendo game. Even serious businessmen
and businesswomen can get excited over a corporate event held in our Belle Ã?poque
restaurant where they can talk with actors who believe that they are back in that era (called first
person acting). What might someone say and what answer might come back? Something snappy
or robust?
The buying patterns of our customers will be repeat patterns. Our pricing for food, taste, and
product delivered will exceed local expectations. We rely on the world tastes and travels of Chef
Joachim and team - difficult to equal or duplicate.
Strategy and Implementation Summary
5.0 Strategy and Implementation Summary
Belle Ã?poque will focus on attracting target customers who are usually, fun-seekers, couples
and families. We will offer a dynamic menu of global cuisine, an extensive wine list, a staged
show and entertainment.
5.1 Competitive Edge
Our competitive edge will be to cut wide open the competition with our amazing and exciting
actors. We will be different from all others because of our creativity, presentation, marketing,
advertising and delivery. We will stand out with sustainable value, something that we can
maintain and develop over time - the transition from real life into fantasy escape. The
competitive edge, that puts us ahead of most competitors is the opportunity to live and interact
in history or another world. Stepping into our world will reveal discussion with people of the
time and physically doing things with them - while enjoying a great meal and a show.
The ultimate edge is that we allow people to be in our show and to walk a few hours or days in
history's shoes. This is the opportunity for customers to gain instant fame on stage with the
crowds cheering and clapping. That is a competitive edge, with benefit, that all humans dream
of. But, beyond that, we also will offer the opportunity to live and work in our historic world for
a reasonable price.
Patrons are not forced to attend the dinner show. They can still have dinner in our separate
dining room.
Chef Joachim Oignons' experience at the White House and at Camp David provide acclaim,
reputation, and credibility when combined with his 30 years of naval service.
We start with a critical competitive edge: there are few competitors we know of that can claim
anywhere near as much hype, attention to detail and people, excitement, dancing, singing or
showmanship with historic proportions. The closest thing to our platform in this geographic area
is The Capsized Sailor - Seafood on the Pier. Our positioning on this point is very hard to match,
as long as we maintain this focus in our strategy, marketing, business development, and
fulfillment. We are aware that the tendency to dilute this expertise with premature expansion
will dull the importance of our competitive edge. Also, excessive changing of our plan and
rollout could break the creative side of the operation.
5.2 Marketing Strategy
Marketing will be our life blood of crowd draws and excitement. Our Marketing Strategy has
been explained a bit already. Our Sales Strategy is the easiest of our plans.
Our Marketing Strategy first and foremost is born out of three governing functions:
1.An indignant refusal to adopt typical high cost advertising schemes in print, television or
internet campaigns. Throwing tens of thousands of dollars at billboards or magazines is a crutch
for those less creative. The impact we can have with other creative means will be impressive.
2."Beyond belief," word-of-mouth and first person character advertising. Guaranteed to affect
image, awareness and propensity to buy. A meeting with one of our six historical Impressionist
painters or with one of our Paris Opera or Ballet Prima Donna's will not be forgotten.
3.Ingenious strategic placement and appearance into market at the right time and stunning
venue with our actors and, "Boulevardiers." One of the easiest ones is the strolling the
promenade and boulevard by our high society Madames et Monsieur, handing out leaflets.
Other events will include partnering with various wine and spirit distributors for special
promotions.
5.3 Sales Strategy
Sales in our business is customer service. It is repeat business. One doesn't just sell a glass or
bottle of wine and boost the check price, one develops a proposal that works for the client, that
convinces him or her to crave the wine. Direct-in house sales classes will be held to teach staff
how to "get in with the smile," "enjoy laughter with customers" and then go for the boost in the
check price by selling that dessert, beer or wine. We can also make money with our extensive
selections of tea, coffee, cheese and cigars.
With our innovative, drama sales platforms wallets will fly out of pants pockets and purses. Our
independent tests and studies show that what sells most is human interaction and excitement.
Paying attention to people, listening and talking with them, admiring their face and clothes - this
adoration - this sales truth of genuine, heartfelt, over-the-top achievement - this is what makes
dynamic drama sales happen. Our goal is extraordinary attention to reveal extraordinary sales.
We must always be aware of the big-company feeder phenomenon of the split between selling
the restaurant and failure to fulfill the sale with entertainment and luscious food, which leads to
client dissatisfaction. The human sale should be developed and scoped, sold, and fulfilled by the
same people. If you see, run over to meet and greet Impressionist painter Edgar Degas and his
retinue of Paris Ballet dancers on the mall as you are shopping, then you expect to see him that
night at the restaurant. Our customers should never buy into a sale from one partner and have it
delivered by anybody other than that same partner. The promise shall be fulfilled.
5.3.1 Sales Forecast
Lunch Hour Sales are figured on starting in April of 2005 with 27 available days of weather x 190
seatings (based @ 200 seats avail total over a three hour period with 1.0 turnovers - 10:30 AM
to 1:30 PM) at $14.00 average check take. In May this rises to 220 covers or a 1.1 ratio. For the
months of June, July and August this escalates to full capacity of the 200 seats and two
turnovers, with a cap of 385 out of 400 in four hours and 27 days of good weather. The Direct
Cost of Sales in this category is 38% of Sales Forecast.
Dinner Sales are figured on starting in April of 2005 with 27 available days of weather x 110
seatings (based @ 200 seats avail total over a four hour period with 1.0 turnovers - 6:00 PM to
10:00 PM) at $24.00 average check take. In May this rises to 140 covers. For the months of June,
July and August this escalates to full capacity of the 200 seats and two turnovers, with a cap of
385 out of 400 in four hours and 27 days of good weather. The Direct Cost of Sales in this
category is 36% of Sales Forecast.
Dinner Show Sales are figured on starting in April of 2005 with 27 available days of weather x
101 seatings (based @ 340 seats avail total over a three hour period with 1.0 turnovers - 7:00
PM to 10:00 PM) at $55.00 fixed ticket price. In May this rises to 201 covers. For the months of
June, July and August this escalates to full capacity of 320 of the 340 seats and 27 days of good
weather. The Direct Cost of Sales in this category is 25% of Sales Forecast.
Bar Sales are figured on 50 people per night at $20.00 for 15 nights in April, May, September
and October. In June, July and August the bar will book out at 200 people per night and be filled
with excitement and games from 6:00 PM to 2:00 AM. Average take is expected to be $35.00
per person. One of the primary pulls will be the two sunken pool tables. The Direct Cost of Sales
in this category is 36% of Sales Forecast.
Be in the Show Sales are figured on 10 participants per night at $65.00 with 27 days of good
weather. The Direct Cost of Sales in this category is 25% of Sales Forecast.
Catering Sales are not desired to be our strong suit or a strong sales platform. But, we do expect
to do at least two events in the summer including the Boulevarier Festival. The Direct Cost of
Sales in this category is 55% of Sales Forecast.
High Tea with a Lady, Wives of the Impressionist Painters Sales will be brisk at 30 people per
afternoon for 27 days of good weather each month. Prix Fixe will be $18.00 per person from
2:00 PM to 4:00 PM each day. The Direct Cost of Sales in this category is 38% of Sales Forecast.
Sales Forecast
Sales Forecast
FY 2005 FY 2006 FY 2007
Unit Sales
Lunch Sales
78,975 86,873 95,560
High Tea Sales 9,720 10,692 11,761
Dinner Sales
66,335 72,969 80,265
Dinner Show Sales
Bar Sales
68,074 74,881 82,370
28,350 31,185 34,304
Be In the Show Sales
3,240 3,564 3,920
Catering Sales 4
4
Total Unit Sales 254,698
5
280,168
Unit Prices
FY 2005 FY 2006 FY 2007
Lunch Sales
$14.00 $14.98 $16.03
High Tea Sales $18.00 $19.26 $20.61
Dinner Sales
$24.00 $25.68 $27.48
Dinner Show Sales
Bar Sales
$55.00 $58.85 $62.97
$28.57 $30.57 $32.71
308,185
Be In the Show Sales
$65.00 $69.55 $74.42
Catering Sales $7,250.00
$7,757.50
$8,300.53
$1,301,350
$1,531,689
High Tea Sales $174,960
$205,928
$242,377
Dinner Sales
$1,873,831
$2,205,499
Sales
Lunch Sales
$1,105,650
$1,592,040
Dinner Show Sales
Bar Sales
$3,744,070
$810,000
Be In the Show Sales
$4,406,770
$953,370
$210,600
$5,186,769
$1,122,116
$247,876
$291,750
Catering Sales $29,000
$34,133
$40,175
Total Sales
$9,023,259
$10,620,375
$7,666,320
Direct Unit Costs
Lunch Sales
FY 2005 FY 2006 FY 2007
$5.32 $5.53 $5.81
High Tea Sales $6.84 $7.11 $7.47
Dinner Sales
$8.64 $8.99 $9.43
Dinner Show Sales
Bar Sales
$13.75 $14.30 $15.02
$10.29 $10.70 $11.23
Be In the Show Sales
$16.25 $16.90 $17.75
Catering Sales $3,987.50
$4,147.00
$4,354.35
$480,648
$555,149
High Tea Sales $66,485
$76,059
$87,848
Dinner Sales
$655,666
$757,294
Direct Cost of Sales
Lunch Sales
$420,147
$573,134
Dinner Show Sales
$936,018
$1,070,804
$1,236,779
Bar Sales
$291,600
Be In the Show Sales
$333,590
$52,650
$385,297
$60,232
$69,567
Catering Sales $15,950
$18,247
$21,075
Subtotal Direct Cost of Sales
$2,355,984
$2,695,245
$3,113,008
Sales Monthly
Sales by Year
5.4 Milestones
The accompanying table lists important program milestones, with dates and managers in
charge, and budgets for each. The milestone schedule indicates our emphasis on planning for
implementation.
What the table doesn't show is the commitment behind it. Our business plan includes complete
provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss
the variance and course corrections.
Milestones
Milestones
Milestone
Start Date
End Date
Budget Manager
Department
Business Plan
10/18/2004
1/23/2005
$709
BOD
Property scouting
12/18/2003
6/1/2004
J. Oignons
$580
A. Spergras
Property
Interior Design 8/30/2004
10/30/2004
$11,548
T. Matto
Gourmet
Print Design & Production
Media & PR
9/22/2004
11/12/2004
$45,723
O. Bergene
Script writing
9/22/2004
9/22/2004
$4,000 C. Wensleydale Theatrical
Menu rollout
2/4/2005
4/12/2005
$430
Stage design and build 2/2/2005
Theatrical
3/28/2005
J. Oignons
F&B
$19,050
C. Wensleydale
Legal rollout
1/1/2004
6/1/2004
$22,288
Design sketches 12/22/2004
1/22/2005
$300
O. Bergene
Media & PR
Logo design
2/12/2005
$100
J.Oignons
Media & PR
1/22/2005
Totals
S. Prouts
Legal
$104,728
Milestones
Web Plan Summary
6.0 Web Plan Summary
The "Belle Ã?poque" website will be the virtual business card and portfolio for the company, as
well as its online "home."
It will showcase the 1890s Paris high-society decor of the restaurant, and the exuberant, social
elegance of the Moulin de la Galette show and costumes of our staff.
The website needs to be a simple yet classy and well designed website that, at the same time, is
in keeping with the latest trends in user interface design. A site that is too flashy, or tries to use
too much of the latest Shockwave or Flash technology can be over done, and cause potential
customers to look elsewhere for online excitement as well as a meal or show. A particular, small
section will offer a stunning and robust Flash MX presentation of the gay 90s Paris Impressionist
arts scene.
To further show off its expertise the website may create a resources area, offering articles,
research, re-enacting tips and sales to interested parties. We will accept reservations online as
well as partner with Amazon, PayPal and book sellers to sell products while holding no
inventory. Of course, all of the items will be totally Impressionist/Moulin Rouge/Age of Elegance
in nature. We will accept all credit cards via our merchant accounts.
The key to the website strategy will be combining a very well designed front end, with a back
end capable of recording leads and proposal requests, as well as running our own online
marketing program.
We will sell targeted advertising to specific market groups, as well as partnering with online
retailers to sell relevant products to the users.
6.1 Website Marketing Strategy
Marketing for us will center primarily around distribution of our URL, initially via paper means.
That will plug and pull unique hits on our real time database reporting and stats. Our restaurant
concept will not rely on achieving first hit status for keywords to draw customers into the
premises. Rather, a visit to the website will most always be an after-the-fact event. For instance,
after visiting the restaurant or after reading our brochure or after hearing our commercial on
the radio.
We will garner some specific unique entry hits via usage of our time proven keyword and html
skills. These will result in number one placement across certain keywords and dozens of engines,
worldwide. Such is our proven success of using numerous URLs, keyword generation and testing
with the number one rated international "Web Position Gold 2" program. In addition to that,
whole, separate websites are built specifically for precise search engines. The most intelligent
designers are able to achieve #1 ranking via weekly updating across 1,200+ engines. Our primary
goal model is the Google engine.
We will be linked to from hundreds of websites, including the Greater Bigmalltown Chamber of
Commerce and US Chamber of Commerce.
6.2 Development Requirements
The website will be initially developed with few technical resources. A simple hosting provider,
Ludditeorgweb.com services, will host the site and provide the technical back end out of
Sunscorch City, USA.
We will work with a contracted user interface designer to develop the simple, classy, yet
Internet focused site. The user interface designer will work with a graphic artist to come up with
the website logo, and the website graphics. A number of articles, photos and features will be
provided based on our recreation of the 1890s Paris Boulevardier lifestyle.
The maintenance of the site will be done by the owner. As the website rolls out future
development such as newsletters and downloadable games, a technical resource may need to
be contracted to build the high-end items.
Management Summary
7.0 Management Summary
The initial management team depends on the founder, Joachim Oignons and his recruitment of
managers. As we grow, we may take on additional consulting help, plus graphic/editorial, sales,
and marketing. By opening, Belle Ã?poque's management team will be composed of:
Executive Chef Joachim will manage the kitchen staff and oversee the financials
Serving Staff manager - T.O. Matto
Sommelier/Bar manager - A. Bisynthe
Performance manager - C. Wensleydale
* Management team resumes, confidential and proprietary information have been removed
from this sample plan.
7.1 Personnel Plan
The following table summarizes our personnel expenditures for the first three years, with
compensation increasing from less than $634K the first year to about $700K in the third.
Employees include hosts, kitchen staff, serving staff, performance staff, bartending staff, and
dishwashing/cleanup staff, sufficient to cover the hours of operation, prep-time and cleanup.
Restaurant serving hours begin at 10:30 AM, and the bar closes at 2:00 AM. A
Bookkeeper/Office Assistant will also be hired.
We believe this plan is a fair compromise between fairness and expedience, and meets the
commitment of our mission statement. The detailed monthly personnel plan for the first year is
included in the appendices.
Personnel
Personnel Plan
FY 2005 FY 2006 FY 2007
Executive Chef Joachim Oignons-owner $59,000
$61,950
Serving Staff Manager $36,000
$39,690
Sommelier/Bar Manager
$37,800
$36,000
$37,800
$39,690
Performance Manager $36,000
$37,800
$39,690
Host/Serving Staff
$135,475
$142,249
Kitchen Staff
$169,344
Performance Staff
Bar Staff
$129,024
$177,811
$124,416
$32,256
$186,702
$130,637
$33,869
$137,169
$35,562
$65,048
Bookkeeper/Office Assistant
$12,000
Total People
0
0
Total Payroll
$634,040
0
$665,742
$12,600
$13,230
$699,029
Financial Plan
8.0 Financial Plan
We are assuming a low start-up funding figure of approximated $500,000. The business will
grow exponentially by a net worth of about two million dollars per year and this growth is based
off of sheer cash profits and managerial excellence. Growth will be self financed. No additional
funding will be needed.
8.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following
table as annual assumptions. The monthly assumptions are included in the appendices. From
the beginning, we recognize that our direct marketing will be critical to advertising, a factor we
can influence easily. Weather and catastrophe cannot be so easily planned on and would delay
project by a year (hurricane, tornado, etc...) At least we are planning on the potential problem,
and dealing with it.
Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Two of the more important underlying assumptions are:
1.We assume a strong economy, without major recession.
2.We assume funding will be maintained and strongly backed.
One item of particular note is that we have set our cost of goods for food sales at high
percentage factors of 30% to 36%. The majority of seasoned managers would raise an eyebrow
at those percentages. We intend to beat these percentages and therefore bring in a windfall on
our P & L. One important assumption is our capability to decrease food waste and costs.
General Assumptions
General Assumptions
FY 2005 FY 2006 FY 2007
Plan Month
1
Current Interest Rate
2
3
10.00% 10.00% 10.00%
Long-term Interest Rate 8.20% 8.20% 8.20%
Tax Rate
25.00% 25.00% 25.00%
Other 0
0
0
8.2 Start-up Funding
Start-up funding requirements come to just shy of $500,000. This presumes we can move into
an established, equiped restaurant space. Expenses and asset purchases will increase
dramatically if we must fully outfit and equip a space for its first use as a restaurant.
Funding will be through a combination of owner investment, outside investment, and long-term
loans. A small amount of current borrowing (credit card purchases) complete the start-up
funding.
Start-up Funding
Start-up Funding
Start-up Expenses to Fund
$178,420
Start-up Assets to Fund $317,000
Total Funding Required $495,420
Assets
Non-cash Assets from Start-up $267,000
Cash Requirements from Start-up
$50,000
Additional Cash Raised $420
Cash Balance on Starting Date $50,420
Total Assets
$317,420
Liabilities and Capital
Liabilities
Current Borrowing
$5,420
Long-term Liabilities
$40,000
Accounts Payable (Outstanding Bills)
$0
Other Current Liabilities (interest-free) $0
Total Liabilities $45,420
Capital
Planned Investment
Owner $50,420
Investor
$400,000
Additional Investment Requirement
Total Planned Investment
$450,420
Loss at Start-up (Start-up Expenses)
Total Capital
$0
($178,420)
$272,000
Total Capital and Liabilities
$317,420
Total Funding $495,840
8.3 Break-even Analysis
The following chart and table summarize our break-even analysis. We expect to reach breakeven a few months into the business operation. With favorable response from PR exposure and
teaser advertising, in the first month we open, April of 2005, we may achieve goal and break
even.
The break-even assumes variable costs of 38% percent of revenue. This assumption is probably
too high, and therefore conservative. With initial monthly expenses of over $86,600 we will
need averaged monthly revenues of about $140,000 to break-even.
Break-even Analysis
Break-even Analysis
Monthly Units Break-even
139,801
Monthly Revenue Break-even
$139,801
Assumptions:
Average Per-Unit Revenue
$1.00
Average Per-Unit Variable Cost $0.38
Estimated Monthly Fixed Cost $86,676
Break-even Analysis
8.4 Projected Profit and Loss
Our advertising budget pulls data from several tables; the fact that we are spending less than
the industry average will be due to getting such great reviews in the consumer and press related
magazines and newspapers. Also, of specific note is our unique marketing stunts and plan that
does not rely on traditional advertising schemes.
We are profitable in the first year at just over $3 million. As with the break-even, we are
projecting very conservatively regarding cost of sales and gross margin. Our cost of goods should
be much lower, and gross margin higher, than in this projection. We prefer to project
conservatively so that we make sure we have enough cash.
Based on 30+ years of restaurant experience we have budgeted for continued computer and
equipage purchases. If we do open in a previously equipped restaurant space we know we will
need replacements. If we must open with brand new, guaranteed equipment, we will not have
replacement expenses as soon. Normal wear and tear and breakage of plates, glasses,
tableware, etc. are budgeted monthly.
Labor costs may be lower than the pro forma projects - but we are planning on worst-case
scenario of our attention being diverted as we grow into exactly what we need and when. Later
years may be lower as we learn more about how much labor is truly critical. Conversely, if our
dinner and show concept is well received, we may have to increase staff (and therefore labor
costs) to serve the customer demand.
The Gross Margin Percentage holds steady from year to year due to holding menu and show
prices with minimal increases to cover increased food costs and operating expenses. This may
be unrealistic - the quandary is - do we want to raise our prices each year or hold them fast.
Customer response surveys combined with economic condition analysis will yield the answer to
this after the first twelve months. Either way, at worst, we forecast profits between $3-$4
million per annum.
Profit and Loss
Pro Forma Profit and Loss
FY 2005 FY 2006 FY 2007
Sales
$7,666,320
$9,023,259
$10,620,375
Direct Cost of Sales
$2,355,984
$2,695,245
Other Production Expenses
-----------Total Cost of Sales
Gross Margin
$0
$0
$0
------------
------------
$2,355,984
$2,695,245
$5,310,336
$6,328,013
$3,113,008
$3,113,008
$7,507,367
Gross Margin % 69.27% 70.13% 70.69%
Expenses
Payroll $634,040
$665,742
$699,029
Sales and Marketing and Other Expenses
$92,807
Depreciation
$12,000
$12,000
$12,000
MICROS syterm, phones, security, fire, computer upgrades
$10,000
Exterminating $300
$300
Ceramic/Glass/Silver Upkeep
Maintenance/Repairs
$81,632
$10,000
$10,000
$300
$2,400 $2,400 $3,000
$22,000
$20,000
Linen and Dry Cleaning $2,100 $2,400 $2,700
Dish and Cleaning Supplies
$81,632
$4,800 $5,000 $5,250
Office Products Upkeep $2,400 $2,500 $2,600
$22,000
Paper Products Upkeep $9,600 $10,000
Utilities $28,160
Insurance
Rent
$30,160
$11,000
$32,160
$8,604 $9,104 $9,604
$49,800
Employee Healthcare
$54,800
$56,800
$36,000
$38,000
$40,000
Comps/Donations/Handouts
$30,000
$30,000
Payroll Taxes
$99,861
$104,854
$95,106
------------
------------
Total Operating Expenses
$30,000
------------
$1,040,117
$1,073,899
$1,122,929
Profit Before Interest and Taxes $4,270,219
$5,254,114
$6,384,438
EBITDA $4,282,219
$5,266,114
$6,396,438
Interest Expense
$3,223 $2,388 $1,691
Taxes Incurred $1,066,749
$1,312,931
$1,595,687
Net Profit
$3,938,794
$4,787,060
$3,200,247
Net Profit/Sales 41.74% 43.65% 45.07%
Profit Monthly
Profit Yearly
Gross Margin Monthly
Gross Margin Yearly
8.5 Projected Cash Flow
The plan projects a $11,340,000 net worth by 2007 (three years of operation in a high activity
vacation environment). The plan anticipates full staffing, a small management team, and
maximum acceptance by the dining public. The highest sales will be in the prime summer
vacation months, but we believe our unique offering will draw customers to Belle Ã?poque all
year long.
If our sales and profits forecasts prove accurate Chef Joachim will expand his management team
and accelerate the long-term plan of opening a second and third Belle Ã?poque restaurants in
other demographic markets. The opening of the second venue will be financed by the profits
from this restaurant, and the third site will be financed by the profits from the first two
ventures. Obviously this will result in substantial changes in the cash flow and profit figures in
year two and year three of this plan.
Cash flow projections are critical to our success. The monthly cash flow is shown in the
illustration, with one bar representing the cash flow per month, and the other the monthly cash
balance. The annual cash flow figures are included here and the more important detailed
monthly numbers are included in the appendices.
Cash Flow
Pro Forma Cash Flow
FY 2005 FY 2006 FY 2007
Cash Received
Cash from Operations
Cash Sales
$7,666,320
$9,023,259
Subtotal Cash from Operations $7,666,320
$10,620,375
$9,023,259
$10,620,375
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$536,642
New Current Borrowing $0
$0
$0
New Other Liabilities (interest-free)
$0
$0
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
New Investment Received
$0
$0
$0
Subtotal Cash Received $8,202,962
Expenditures
FY 2005 FY 2006 FY 2007
Expenditures from Operations
$9,654,887
$631,628
$0
$11,363,802
$743,426
Cash Spending $634,040
$665,742
$699,029
Bill Payments
$4,268,503
$5,075,011
$4,229,920
$4,934,245
$3,595,880
Subtotal Spent on Operations
$5,774,040
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$536,642
$631,628
Principal Repayment of Current Borrowing
$5,400 $0
Other Liabilities Principal Repayment
$0
$0
$0
$0
Long-term Liabilities Principal Repayment
$6,900 $8,000 $9,000
Purchase Other Current Assets $0
$0
$0
Purchase Long-term Assets
$0
$0
$0
Dividends
$250,000
$100,000
Subtotal Cash Spent
$4,878,863
$500,000
$5,823,873
$7,026,466
Net Cash Flow $3,324,100
$3,831,013
$4,337,335
Cash Balance
$7,205,533
$11,542,868
$3,374,520
$743,426
Cash
8.6 Projected Balance Sheet
The balance sheet in the following table shows managed but sufficient growth of net worth, and
a sufficiently healthy financial position. The monthly estimates are included in the appendices.
Balance Sheet
Pro Forma Balance Sheet
FY 2005 FY 2006 FY 2007
Assets
Current Assets
Cash
$3,374,520
$7,205,533
$11,542,868
Inventory
$66,090
$75,607
$87,326
Other Current Assets
$17,000
$17,000
$17,000
Total Current Assets
$3,457,610
$7,298,140
$11,647,194
$175,000
$175,000
$175,000
Long-term Assets
Long-term Assets
Accumulated Depreciation
$12,000
Total Long-term Assets $163,000
Total Assets
$3,620,610
Liabilities and Capital
$24,000
$151,000
$7,449,140
$36,000
$139,000
$11,786,194
FY 2005 FY 2006 FY 2007
Current Liabilities
Accounts Payable
$215,243
$362,979
Current Borrowing
$20
$20
$20
Other Current Liabilities $0
$0
$0
Subtotal Current Liabilities
$215,263
Long-term Liabilities
$33,100
$421,973
$362,999
$25,100
$16,100
Total Liabilities $248,363
$388,099
$438,093
Paid-in Capital $450,420
$450,420
$450,420
Retained Earnings
($278,420)
$2,671,827
$6,110,621
Earnings
$3,200,247
$3,938,794
$4,787,060
Total Capital
$3,372,247
$7,061,041
$11,348,101
Total Liabilities and Capital
$3,620,610
$7,449,140
Net Worth
$7,061,041
$11,348,101
$3,372,247
8.7 Business Ratios
$421,993
$11,786,194
The following table shows the projected businesses ratios. We expect to maintain healthy ratios
for profitability, risk, and return. The Standard Industrial Classification (SIC) Code for the
industry we chose is French Restaurant (5812.0104), though there is no SIC that accurately
describes our offering platform of dinner theatre. We used the Industry Ratios report for Eating
Places (5812) to generate the industry profile shown in the following table.
Ratios
Ratio Analysis
FY 2005 FY 2006 FY 2007 Industry Profile
Sales Growth
0.00% 17.70% 17.70% 7.60%
Percent of Total Assets
Inventory
1.83% 1.01% 0.74% 3.60%
Other Current Assets
0.47% 0.23% 0.14% 35.60%
Total Current Assets
95.50% 97.97% 98.82% 43.70%
Long-term Assets
4.50% 2.03% 1.18% 56.30%
Total Assets
100.00%
100.00%
100.00%
Current Liabilities
5.95% 4.87% 3.58% 32.70%
Long-term Liabilities
0.91% 0.34% 0.14% 28.50%
100.00%
Total Liabilities 6.86% 5.21% 3.72% 61.20%
Net Worth
93.14% 94.79% 96.28% 38.80%
Percent of Sales
Sales
100.00%
Gross Margin
100.00%
100.00%
100.00%
69.27% 70.13% 70.69% 60.50%
Selling, General & Administrative Expenses
Advertising Expenses
32.12% 34.20% 34.10% 39.80%
1.12% 1.10% 1.08% 3.20%
Profit Before Interest and Taxes 55.70% 58.23% 60.11% 0.70%
Main Ratios
Current 16.06 20.11 27.60 0.98
Quick 15.76 19.90 27.39 0.65
Total Debt to Total Assets
6.86% 5.21% 3.72% 61.20%
Pre-tax Return on Net Worth
126.53%
74.38% 56.25% 1.70%
Pre-tax Return on Assets
117.85%
70.50% 54.15% 4.30%
Additional Ratios
FY 2005 FY 2006 FY 2007
Net Profit Margin
41.74% 43.65% 45.07% n.a
Return on Equity
94.90% 55.78% 42.18% n.a
Activity Ratios
Inventory Turnover
24.00 38.04 38.21 n.a
Accounts Payable Turnover
17.71 12.17 12.17 n.a
Payment Days 27
24
28
n.a
Total Asset Turnover
2.12
1.21
0.90
n.a
Debt to Net Worth
0.07
0.05
0.04
n.a
Current Liab. to Liab.
0.87
0.94
0.96
n.a
Debt Ratios
Liquidity Ratios
Net Working Capital
$3,242,347
$6,935,141
$11,225,201
n.a
Interest Coverage
1324.91
2200.03
0.83
1.11
n.a
6%
5%
3775.09
Additional Ratios
Assets to Sales 0.47
Current Debt/Total Assets
Acid Test
4%
15.76 19.90 27.39 n.a
Sales/Net Worth
2.27
1.28
0.94
n.a
Dividend Payout
0.03
0.06
0.10
n.a
n.a
n.a