1
Unit Code: THHGLE19B
BUSINESS PLAN
PIZZA HUT
106, GEORAGE ROAD
THORNBURY
3071
TEL NO. - 03 939445341
MOBILE - 0430568209
www.pizzahut.com.au
ABN – 468466797
STATEMENT OF PURPOSE
2
The business, which I’m going to open is the pizza shop which
will dine-in and take away. The name of my business is PIZZA
HUT. The owner YADWINDER SINGH will prepare the business
plan of PIZZA HUT and the purpose of making the business plan is
to be used as the operational guide for the business.
The business plan will also help me to support my loan application
to the COMMONWEALTH BANK in which I’ll be able to mention
that how much loan I wanted from the bank and for about how
many months/year. I’ll provide the security to the bank by
depositing the papers of my house and the plan will also explain
how I will repay the bank loan and from where I’ll arrange the rest
of the money for the business besides the bank loan.
SUMMARY
* BUSINESS NAME – PIZZA HUT
* PROPRIETOR – YADWINDER SINGH
* STRUCTURE – SOLE TRADER
* The products that my business is going to provide are the pizzas,
salads, pastas and the kebabs. The main buyer will be those
peoples who are health conscious because we are using 100%
organic materials and under the pizza shop we are also providing
salads, pastas and kebabs and it’s the only pizza shop on
commercial road, which is providing all these items. Our main
targets will be the youngsters and the office in our locality.
* My business objectives
* Organic food in cheap prices
* Professional and Personalised services to customers
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* Competitive advantage
There’s no other pizza shop on high street, Thornbury, which is
providing salads, pastas, and kebabs all under one roof.
* Marketing Strategy
Advertisement in local newspaper STONNINGTON LEADER
Advertisement on Internet truelocal.com.au
Advertisement through distributing pamphlets in the local offices
and shops.
Advertisement through Banners and hoardings in surrounding
areas of Thornbury.
Advertisement through advertisements (ads) on Television.
CONTENTS
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THE BUSINESS
*
*
*
*
MISSION STATEMENT
BUSINESS OBJECTIVES
NAME ADDRESS AND CONTACT DETAILS
DESCRIPTION OF BUSINESS ACTIVITY, COMMENCEMENT
DATE, COMMENCEMENT CAPITAL AND BUSINESS
STRUCTURE
* COMPETITIVE ADVANTAGE
* OWNER OR OWNER’S PROFILES
* MAJOR CLIENTS
* LICENCES AND REGISTRATIONS
* BUSINESS ADVISORS
* CURRENT PERFORMANCE
INDUSTRY ANALYSIS
* ANZSIC CATEGORY
* KEY SUCCESS FACTORS
MARKETING PLAN
* PRODUCT AND SERVICE
* TARGET MARKET
* MARKETING OBJECTIVE
* DETERMINING YOUR MARKETING STRATEGY
OPERATIONAL STRATEGY
* LOCATION AND PREMISES
* PLANT AND EQUIPMENT
* INVENTORY
* PERSONNAL STRATEGY
* ENVIORNMENTAL STRATEGY
FINANCIAL STRATEGY
* FINANCIAL OBJECTIVE
* CAPITAL STRUCTURE
* SALES FORECAST
* CASHFLOW FORECAST
* FINANCIAL PERFORMANCE
* BREAKEVEN ANALYSIS
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THE BUSINESS
MISSION STATEMENT
To provide services the customer with personalized and
professional quality. Also maintain the consistency and security
safety of food. Mission Statement of PIZZA HUT will be: We will act as a foundation of impeccable hospitality. We will
endeavour to achieve the above through our team members,
customers and community. ‘Together we will make difference’
BUSINESS OBJECTIVES
The business objectives of PIZZA HUT will be: 1. To provide the customers professionalised and personalised
services.
2. To look for best organic raw materials suppliers.
3. To be consistent with the services to the customers.
4. To be the no.1 pizza shop in the locality.
5. To know the customers fully like their likes and dislikes.
6. To keep introducing new products on regular intervals.
7. If on target, look to expand to another unit.
8. To pass on the business to my children if everything go well.
NAME, ADDRESS and CONTACT DETAILS
PIZZA HUT
106, GEOREGE STREET
THORNBURY
6
3071
TEL NO. 03 93944109
MOBILE - 0430565434
Website: www.pizzahut.com.au
ABN – 468466848
BUSINESS ACTIVITY
The products that my business is going to provide are the pizzas,
salads, pastas and the kebabs. The main buyer will be those
peoples who are health conscious because we are using 100%
organic materials and under the pizza shop we are also providing
salads, pastas and kebabs and it’s the only pizza shop on
commercial road, which is providing all these items. Our main
targets will be the youngsters and the office in our locality. We will
try our best to know the likes and dislikes of the customers. The
very important thing is that we will be keep introducing new
products on regular intervals to the buyers which will be very
beneficial for them to select their choices.
COMMENCEMENT DATE
I’m looking forward to commence my business on first Monday of
the June this year i.e. 1st of June. I’ve already chosen the property
and if everything goes all right then I’ll be able to get the loan by
the end of this month i.e. May 09.
COMMENCEMENT CAPITAL
I need around $250,000 to run my business and my business is a
SOLE TRADER that will be run by myself so I’m investing around
35% of capital from my side i.e. $ 87,500 rest of the capital that I
needed is 65% to run my business smoothly that I have applied
from the bank i.e. $162500.
BUSINESS STRUCTURE
My business will operate as a SOLE TRADER. The name of the
sole trader is Chris and I’ll be the whole and sole owner of my
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business. The reason I opt for the sole trader because it is a
simple business structure, giving the owner all the decision making
flexibility as well as managing the finances.
COMPETITVE ADVANTAGE
There’s no other pizza shop on Georege street Thornbury, which is
providing salads, pastas, and kebabs all under one roof. The one
of main competitive advantage is our products that we used for the
cooking we used all organic raw products for the cooking. The staff
that working in the restaurant will provide the customers
professionalised and personalised services. The prices of our food
are very cheap as compare to the other competitors.
OUR SWOT ANALYSIS:
STRENGTH: * LOCATION – GEOREGE STREET, THORNBURY
* STRONG TRADEMARK RECEPIES
* ORGANIC FOOD
* ENERGETIC AND EXPERIENCED STAFF
* WIDE PARKING FACILITY
WEAKNESS: * CAN’T EXPAND THE RESTUARANT
* LACK OF KNOWLEDGE ABOUT THE CUSTOMERS
* DECLINE IN SALES
OPPORUNITIES: * INCREASE IN DELIEVRY SERVICES
* BALANCED MENU
* CUSTOMER FOCUS
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THREATS: * NEW RESTAURANT IN THE AREA
* CHANGING CUSTOMER DEMANDS
* QUALITY OF SERVICES
* INCREASE IN RATE OF SUPPLIES
OWNER PROFILES
I have been working in the hospitality industry for the last eight
years and I think now I have the proper knowledge to open my
own business. I will use my specific knowledge in hospitality
industry to serve the Humanity which will be a great step in my
Business too.
# I had done Three Years Degree corse in the Hotel Management
# I had done my 6 months training from the Five star Hotel Uppal’s
Orchid, India during my course duration.
# I had also done One Year certificate course in Human
Resources Development from AH&HA.
# I had also done my two-year Advance Diploma Course in
Commercial Cookery from MITH, Australia.
# I had work as a Chef with The Coffee Club the chain of
Restaurants in Australia for 6 years.
# I had also worked with Pizza Hut for 2 years.
# I also have very good friendly relation with the lots of suppliers
and hospitality personalities.
MAJOR CLIENTS
For my major clients I have already developed my business site for
them to look out for the products and services. I’ve already
developed collaboration with the corporate groups for their
functions and lunches.
Some of my major clients are: -
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1. Atul Solicitors pvt. Ltd.
116, Commercial road
South Yarra - 3141
2. Manu Creative Ad Agency.
129, Commercial Road
South Yarra - 3141
3. Mandeep’s Tour and Travel Agency.
136, Commercial Road
South Yarra – 3141
LICENCES AND REGISTRATIONS
There are some of the licences and registrations that my business
will hold that are: -
1. Australian Business Number
2. Registration of Business Name
3. Footpath Trading Permit
4. Liquor Licences
5. Parking Permit
6. Garbage Bins Permit
BUSINESS ADVISORS
BANKER
Mandeep Singh Guadia
250, Chappel Street
Prahran 3040
Tel no. – 03-93987364
Fax no. – 03-93768733
Email – guadia@commbank.com.au
Web – www.commbank.com.au
ACCOUNTANT
Manu Verma
10
218, Civic Parade
Altona 3018
Tel no. – 03-93984441
Fax no. – 03-98546737
Email –jackfruitmouse@manuaccounts.com.au
Web – www.manuaccounts.com.au
LAWYER
Parminder Singh Chauhan
56, Howard Road
Clayton 3168
Tel no. – 03-98765432
Fax no. – 03-98123456
Email –chauhan3232@chauhansolicitors.com.au
Web – www.chauhansolicitors.com.au
INSURANCE BROKER
Deepankar Duggal
65, Grieve Parade
Westona - 3019
Tel no. – 03-98763542
Fax no. – 03-98764543
Email – duggal@aami.com.au
Web – www.gio.com.au
ADVISORS
Vishal sharma
137, Anderson Road
Sunshine – 3020
Tel no. – 03-92728228
Fax no. – 03-98762827
Email – amanpreet@amanadvisors.com.au
Web – www.vishaladvisors.com.au
INDUSTRY ASSOCIATIONS
Atul Bhardwaj
11
22, Dennison Road
Malvern – 3056
Tel no. – 03-97363632
Fax no. – 03-87565432
Email – atul007@yahoo.co.au
INDUSTRY ANALYSIS
Division H – Accommodations, Cafes and Restaurants
573: Cafes and Restaurant
Political/Economic Analysis
The effect of the political/economic on the business is that if the
government changes then there will also be changes in the rules
and policies of the government and sometimes change of taxes
also have the effect on the business.
Social Analysis
The major events which is going to place near by or in the place
where the business is have a major social effect on the business,
the main events like AFL, GRANDPRIX, AUSTRALIAN OPEN,
OCTOBER FEST, and many more.
Technological
The technology also have the effect on the business like CCTV’S
on the premises to keep eye on the place and for billing now-adays there are EFPTOS and there many different softwares by
which we can make rosters, details of our customers.
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Industry
The different industries have the effect on our business like supply
industry, tourism industry and recruitment industry and many more.
Competition
The competition also has the major effect on the business like we
have to look for that if there is any other new business is opening
in our location that can affect our business. Timely introduction of
new products to keep customers interested in our business.
Key Success Factors
* Location
* Professional Staff
* Use of organic raw materials
* Parking space
MARKETING PLAN
PRODUCT RANGE ANALYSIS
Product
Garlic
Bread
Nachos
% of total
sales
Quality
20%
%of
total
gross
profit
Market
Size
Market
Share
15%
$6000
$1200
11.25%
$6000
$900
Good
15%
Good
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Vegorama
35%
17.50%
$6000
$2100
9%
$6000
$1080
4.8%
$6000
$480
2.4%
$6000
$240
V.Good
Chicken
Monaco
Choc
Brownies
Choc
Mousse
18%
V.Good
8%
V.Good
4%
Good
Assume Market Size = $ 6000
Assume Selling Price of Entrée = $ 4
Assume Cost Price of Entrée = $ 1
Assume Selling Price of Main Coarse = $ 20
Assume Cost Price of Main Coarse = $ 10
Assume Selling Price of Desserts = $ 5
Assume Cost Price of Desserts = $ 2
COMPETITIOR ANALYSIS
Business
Attribute
Ambience
Pizza
hut
Excellent
Competitor
I
Good
Competitor
II
Good
Competitor
III
V.Good
Security
V.Good
Good
Good
Good
Hygiene
V.Good
Good
Average
Good
Quality of
Product
Knowledge
of product
Parking
Excellent
Average
Good
Average
Excellent
Good
Average
Average
Good
Good
Good
Good
Seating
Excellent
Average
Good
Good
Excellent
Good
Average
Good
Good
Average
Good
Average
V.Good
Good
Good
Good
Food
Presentation
Staff
Safety
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SWOT ANALYSIS
Strengths
1. Location-George Street
Thornbury
2. Affordable prices
3. Ample Parking
4. Professional &
Experienced staff
5. Organic Products
Weaknesses
1. Can’t expand restaurant
2. Lack of knowledge about
customers.
3. Decline in sales
4. Not consistent
5. Old fashioned
Building
Opportunities
1. No competitors nearby
2. Customer focus
3. Collaborations
4. Seasonal strategies
5. Private functions
Threats
1. New business in the area
2. Rising interest rates
3. Change in the market
4. Increase in the rate
supplies
5. Change of staff
Strengths: The strengths of my business are its location because it’s always
busy because it got lots of shops for shoppers and there are many
offices as well in the location and the prices my business is
offering is very affordable and there is lots of parking space for the
guests who come in the shop for food. I also have the best staff to
entertain the customer who comes to my business. The main
aspect of my business strengths is that I’m using the organic
products.
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Weaknesses: The weaknesses of my business are that I can’t expand my
business in same place because I’m renting the place. My
business is just started we don’t have much knowledge about the
customers like their likes and dislikes. As well the decline in the
sales and not much consistent in the start because lack of
awareness among the people. Also the shop I’m renting is very old
fashioned.
Opportunities: The opportunities for my business are that there is not other pizza
shop like the pizza hut nearby in the area. We can be customer
focused as there are many shoppers and office bearers in the
area. We also have to opportunity to collaborate with many offices
to provide with them the lunch and also to hold the private
functions like birthday party, family dinner etc in the shop.
Threats: The threats for my business are that in future there are chances of
opening of the new business in the area. Day by day increase in
the bank rates is also threat for my business and also in the
increase of rate of supplies can affect my business. The staff
changes job regularly so have to train the new staff it needs the
time for that.
TARGET
MARKET
SEGMENTATION
–
INDENTIFICATION
&
Pizza Hut is going to target the customers, which are the regular to
the commercial road like the office bearers, local residents and the
local school kids and the tourists who have come to see the
Australia or on the occasion like Australian Open and Grand prix.
SEGMENTATION
GEOGRAPHICALLY
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The location of the PIZZA HUT is the good according to the
business point of view because it’s on the commercial road at
Thornbury and it’s the shopping hub and there are many offices
and other businesses in the same area and there is tramline going
in front of the restaurant.
PSYCHOGRAPHICALLY
In this segment PIZZA HUT have to look after that what kind of
customers we targeting and about their interests, hobbies, religion
and culture.
DEMOGRAPHICALLY
In this segment PIZZA HUT will divide its target into the gender
and age.
BEHAVIOURALLY
In this segment PIZZA HUT will have to know more about it’s
customers like their buying status and their buying powers like
where they belong like from high class or middle class and their
buying like they are here to sit down n have their meal or they are
in hurry they want their meal to be over in 15 mins or early or they
want their meal take away.
MARKETING OBJECTIVES
MARKET PENETRATION
PIZZA HUT marketing objectives to penetrate by informing the
customers that we are selling the organic products only and also
by introducing happy hours to make it more attractive and some
special discounts or gifts for the loyal customers.
MARKET DEVELOPMENT OR EXTENSION
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In this marketing objective PIZZA HUT will look after the other
aspects of the business like providing the outdoor caterings,
arranging birthday parties and private functions and also
collaborating with some of the corporate offices in the area for their
employee’s lunch and putting some stalls in special places like on
Grand Prix, Australian Open and October Fest.
PRODUCT DEVELOPMENT
In this marketing objective PIZZA HUT will look to introduce new
products on regular intervals to keep attracting its customers again
and again. For the product development it will also put its stalls in
the food festival and other main events in the city to advertise
about its product more and more.
DIVERSIFICATION
In this marketing objective PIZZA HUT will look to introduce other
new products to keep attracting it’s customers like the introduction
of the packed cold salads and the readymade pastas and also
introducing the packed pizza base to the market.
DETERMINING YOUR MARKETING STRATEGY –
YOUR MARKET MIX OF PRODUCT, PRICE,
PROMOTION, PLACE
PRODUCT STRATEGY: The products that I’m going to use in my pizza shop will 100%
organic products. The organic products are the big demand of the
future market and the organic products are healthier and today the
customers are more health conscious and they want their diet to
be healthy and fat free.
PRICE STRATEGY: -
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The price of my products in pizza shop will be cheap and
affordable by all the classes of the customers. There will be
discounts and special gifts scheme for the loyal customers.
PROMOTION STRATEGY: The strategy of promoting my products and services will be done
through putting the advertisement on the local newspaper and the
magazines. Advertisement through distributing pamphlets in the
local offices and shops. Advertisement through Banners and
hoardings in surrounding areas of Thornbury.
PLACE STRATEGY: In this strategy I’ll also look for delivering the food to the offices
and to the delivery to houses in the locality, for doing this I’ll have
one delivery van that will be taking care of the deliveries.
OPERATIONAL STRATEGY
In the operational strategy I have to manage the funds to run the
business for this I’m taking 70% of the loan from the
Commonwealth Bank and rest of the 30%I’ll be arranging myself to
buy the plants and equipments to run the business. I have already
seen the shop to operate the business at the high street,
Thornbury.
The plants and equipments that I’ll buy for to operate the business
are;
Pizza Oven
Gas Ranges
Workbenches
Bar Fridges
Cool Room
Freezer
Pans
Fryers
The staff I need to operate the business will be: -
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Head Chef – 1
Cook – 1
Kitchen Hand – 2
Bar Staff – 3
Delivery Boy – 2
LOCATION AND PREMISES
The property, which I have been looking to hire, is from the Real
estate agent called Barry Plant at Georege Street, Thornbury.
Right in the heart of a quiet retail strip this property presents as a
fantastic opportunity for a retail/wholesale premises. The fit out is
already partly set up to operate as a pizza store and could be
easily converted for other food uses. The owner will assist with
outgoings by paying the building rates and insurance. Features
include 3-phase power and hot water service.
For further information please contact Nazih Abbouchi on 0408
588680
$170 per week
$736.67 pcm
$8,840 per annum
The property as I already said is at the Georege Street, Thornbury.
There is tram line going in front of the shop and there is lots of
pedestrian traffic during the day and it’s comes under the Zone 1
and it’s very close to the CBD.
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PLANTS AND EQUIPMENTS
Assets
Cool Room
Freezer
Work Benches
Bar Fridges
Pizza Oven
Electrical Fittings
Plumbing Materials
Service Fridge
Fryers
Gas ranges
Dishwashing machine
Written Down
Value $
30,000
20,000
15,000
10,000
15,000
10,000
8,000
8,000
8,000
12,000
10,000
Total
$ 146,000
Schedule of assets to be purchased over the next three years
Assets
Furniture & Fittings
Year I
$
Year II
$
Year III
$
20,000
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New Chopping Boards
Mixers and Blenders
Ice Machine
Coffee machine
4,000
10,000
10,000
20,000
Total
$ 30,000
$ 14,000
$ 20,000
INVENTORY
MAJOR SUPPLIERS
Product
Meat Products
Vegetable and
Fruits
Dairy Products
Cleaning
Products
Dry Products
Seafood
Supplier
Atul meat
Suppliers
Manu food
Suppliers
Happy dairy
Suppliers
Riley’s
Suppliers
Bidvest
Manu seafood
Suppliers
Contact
Details
Ph. 98736362
Fax 89747463
Ph. 97373632
Fax 98262512
Ph. 96253382
Fax 93736328
Ph. 96838727
Fax 98362356
Ph. 98363525
Fax 98653535
Ph. 98276363
Fax 93737373
Terms of
Rate
2 Weeks Credit
Limit
40 days Credit
Limit
3 Weeks Credit
Limit
1 Month Credit
Limit
2 Month Credit
Limit
1 Week Credit
Limit
Number of days stock to be held
Item
Closing stock
Forecast
Year I
$
6000
Forecast
Year II
$
6000
Forecast
Year III
$
6000
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Costs of Good Sold
No. of days stock on hand
at year end :
Avg. Stock on handx365
Costs of goods sold
Industry benchmark for
no. of days stock on hand
–
from
CCH
Benchmarking
13000
13000
13000
225 days
225 days
225 days
220 days
220 days
220 days
Assume closing stock = $6000
Assume CoGS = $ 13000
STOCKTURN RATE
Item
Cost of goods sold
Average stock value for
the period (Opening stock
+ Closing stock / 2
Stockturn rate:
Cost of goods sold
Average stock value
Industry benchmark for
stockturn – from CCH
Benchmarking
Forecast
Year I
$
13000
Forecast
Year II
$
13000
Forecast
Year III
$
13000
5500
5500
5500
2.36
2.36
2.36
1
1
1
Assume Opening Stock = $6000
Assume Closing Stock = $5000
REORDER POINTS
The inventories are ordered after every 2 days and when there is
an emergency then we can call to the supplier and tell them that it
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is an emergency so according to their availability if they can supply
that item in few hours or the next day.
SHRINKAGE
There are few which can cause the shrinkage of the products or
items at the work.
THEFT
It is one of the causes of the shrinkage at the workplace. It
happens due to the pilferage at the work, the staffs taking out the
things from the workplace of sometimes customers steals the
things from the restaurant without the staff knowledge. To stop all
this we will train the staff to do stocktake after every shift. So there
will be written handover of the stocktake to the next staff members
who are coming for the next shift.
DAMAGE
Damage can be done by the staff members or by the customers
unintentionally but that will cost the business, so we have to make
the staff members aware that if they see any damage, they can
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make report about it that what the thing is damaged and should tell
the manager or the supervisor who is on the duty at that time to
take preventive actions and to stop the further damage.
LOSS
Loss is also one of the causes of the shrinkage. To control the loss
we will train the staff members to use the FIFO system, to avoid
the loss of the inventory.
ACCOUNTING ERROR
It is also the cause of the shrinkage, because sometimes staff or
we can make the accounting mistakes then we have to suffer from
it so to avoid this we will hire professional accounting person who
can take care of our financial matters.
Pricing of Products/Fee Structure
Product
Fore
cast
Sales
$
Fore
Mark
cast
Up Gross Gross
Cost
%
Profit
Price $
Profit Margin
$
%
Garlic
Bread
Nachos
1200
1
25
900
75
Gross
Profit
Contributio
n
of Product
%
5
900
1
25
675
75
5
Vegorama
2100
10
50
1050
50
17.5
Chicken
Monaco
Choc
Brownies
Choc
Mousse
1080
10
50
540
50
17.5
480
3
60
288
40
4.8
240
3
60
144
40
4.8
25
Total
6000
28
3597
Garlic Bread and Nachos
Assume cost price $ 1
Mark up % = 300/1200 x 100 = 25%
Gross profit Margin = 100% - mark up%
100% - 25% = 75%
Gross Profit Contribution of product % = 300/6000 x 100 = 5%
Vegorama and Chicken Monaco
Assume cost price $ 10
Mark up % = 1050/2100 x 100 = 50%
Gross profit Margin = 100% - 50% = 50%
Gross Profit Contribution of Product % = 1050/6000 x 100 = 17.5%
Choc. Brownies and Mousse
Assume cost price $ 3
Mark up % = 288/480 x 100 = 60%
Gross Profit margin % = 100% - 60% = 40%
Gross Profit contribution margin% = 288/6000 x 100 = 4.8%
MERCHANDISING
Merchandising will help the Pizza Hut to grow more in the market.
It will has already has it’s website for the customers and corporate
clients so they can see by themselves what we are offering to
them and it there are so many food lovers who want to try new
things and they can also check us out through our website and we
can also put some stall in some special events happen in the city
to promote more of the Pizza Hut and also by doing the promotion
of the business during the different seasons as well.
PERSONNEL STRATEGY (HUMAN RESOURCES)
The total number of people working for Pizza Hut will be 9 except
me the owner of the business.
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I’ll hire one full time Head chef and his duties and responsibilities
will be to take care of the kitchen he will also be responsible for the
ordering for the kitchen.
I’ll also hire one full time cook to assist the Head chef in the
kitchen and when chef will not be around he will also responsible
for the kitchen and ordering the goods for the kitchen.
I’ll also hire the three bar staff members they will responsible for
the front of the house with myself assisting them in the front of the
house and for ordering the good for the bar will be my duty
(owner).
I’ll also two delivery boys who are on the casual staff and they will
be the responsible for the home delivery and when they are free
they will assist chefs as a kitchen hand in the kitchen.
I’ll also hire two part time kitchen hands to do the dishes and to
assist the chef’s in the mise-en-place and one will be for the
morning and other will be for the night.
SUMMARY OF POSITIONS
Position
Title
Head
Chef
Cook
Award
Coverage
Status
Kitchen
Hand I
Full
Time
Full
Time
Part
Time
Kitchen
Hand II
Part
Time
Waiter I
Full
Time
Full
Time
Full
Waiter II
Waiter
Rate of
Pay
On-Costs
Total
Cost
Job
Description
Assist the
Head chef
Dishes &
assist
chef’s
Dishes &
assist
chef’s
Guest
Service
Guest
Service
Guest
27
III
Delivery
Boy I
Time
Casual
Delivery
Boy II
Casual
Service
Delivery &
assist
chef’s
Delivery &
assist
chef’s
Total
PERSONNEL STRATEGY (HUMAN RESOURCES)
OWNER
HEAD CHEF
COOK
KITCHEN HAND I
WAITER STAFF I
WAITER STAFF II
WAITER STAFF III
KITCHEN HAND II
DISHWASHER
DELIVERY BOY I
DELIVERY BOY II
STARTEGIC ALLIANCES
Pizza Hut have already contracted with some catering companies
for doing the work with them and also contracted with some of the
local corporate offices to provide them with their lunch and to
arrange for their corporate parties and also putting up the stalls in
some major events in the city like Grand Prix, Australian Open,
and Oct Fest and at MCG for any footy match or any cricket match
or any football match.
28
ENVIRONMENTAL STRATEGY
Pizza Hut will take care that with their business they are not
harming the environment so that’s why all lighting work at shop is
fitted with the Compact Fluorescent Light Bulb. They are much
cooler and only waste 30% of their power usage to heat. The
equipments that will be used in the kitchen also very efficient in the
energy saving.
FINANCIAL STRATEGY
To start the business I needed $250,000 and from my side I have
arranged $ 87,500 and for rest of the money I’m going to apply the
loan from the Commonwealth Bank i.e. $ 162,500.
FINANCIAL OBJECTIVES
My financial objectives would be to have the another branch of the
Pizza Hut in the next three years and I would also like to pay off
the loan of the bank by the end of year five of the business and
also like to have my own delivery vans up to 5-6 so I can also do
some of the business through the catering and deliveries.
29
SALES FORECASTS AND COLLECTIONS FROM DEBTORS;
AND PURCHASES FORECASTS
SALES, PURCHASES, DEBTORCOLLECTIONS AND
PAYMENTS TO CREDITORS FORECAST
Item
Sales
Increase over previous
year’s sales – estimated at
Purchases
Year I
$
350,000
Year II
$
650,000
Year III
$
900,000
200,000
300,000
250,000
150,000
200,000
300,000
Purchases – as percentage
of sales
Payments to trade creditors
42.85%
30.76%
33.33%
80,000
100,000
130,000
Debtor collections
50,000
80,000
100,000
30
CASHFLOW FORECASTS
Item
Inflows of funds
Sales
GST
Outflows of funds
Expenses
GST on Expenses
GST remittances to ATO
Loan repayments
Proprietor’s drawings
Bank balance at year end
Year I
$
Year II
$
Year III
$
350,000
100,000
650,000
150,000
900,000
250,000
50,000
10,000
8000
30,000
10,000
191,950
80,000
25,000
10,000
30,000
12,000
343,000
100,000
40,000
15,000
30,000
15,000
450,000
FINANCIAL PERFORMANCE AND FINACIAL POSITION
FINANCIAL PERFORMANCE
Item
Year I
$
Year II
$
Year III
$
31
Sales
Gross profit
Gross profit margin
Expenses
Net profit
350,000
200,000
57.14%
100,000
100,000
650,000
450,000
69.23%
200,000
250,000
900,000
600,000
66.67%
300,000
300,000
Year I
$
80,000
15,000
70,000
10,000
70,000
25,000
Year II
$
120,000
20,000
70,000
50,000
70,000
70,000
Year III
$
150,000
40,000
70,000
80,000
70,000
120,000
FINANCIAL POSITION
Item
Current assets
Non-current assets
Current liabilities
Working capital (CA - CL)
Total liabilities
Net assets (TA - TL)
BREAK EVEN ANALYSIS
Item
Gross profit margin
Total fixed costs
Breakeven sales
Sales
Sales exceed
breakeven by
Sales exceed
breakeven by (%)
Current
Year
$
Forecast
Year I
$
Forecast
Year II
$
Forecast
Year III
$