I. EXECUTIVE SUMMARY
The Grapevine is a Italian and Mediterranean style restaurant that also specializes in wine. The
Grapevine will be located downtown Grand Rapids along the Grand River. The slogan that I have
chosen is “Your Satisfaction is our Standard.” I chose this to show the importance of customer service
and their value to me. My mission statement is “To ensure that each guest receives professional service.
To provide them with nutritional well prepared foods, using only the highest quality ingredients. To
maintain a clean and comfortable work place, giving every guest and staff member the respect they
deserve. To support local farms, and to thank each guest and company for our opportunity to serve
them.” This too shows how much we care about our customers and offer them only the best.
What makes my restaurant stand out and be unique is the fact that we use only the highest
quality ingredients and go out of our way to please our customers. The demographics of my target
market would consist of both genders, high income, middle age, and high class. The geographics of my
target market would be the greater Holland and Grand Rapids areas, in an urban setting. The
psychographics of my target market would be somebody who enjoys to go out to eat, has a passion for
a social life, and wants to experience great food with excellent customer service. The buying behaviors
of my potential customers would include somebody who goes out to eat often and enjoys high quality
food and great customer service. If somebody is hungry or needs a boost in their social life, The
Grapevine can help them meet those needs.
Within my first month of business I would like to have a 95% satisfaction rate. In the first
month I would also like to collect at least 100 coupons that were sent out during advertisements. For a
third objective I would like to have at least 100 followers on Facebook within the first month to receive
information about new menu items and available coupons. After this first month I would like to be able
to retain my satisfaction rate, along with continuing to reach more people through my social media
sites, sending out special promotions. I hope to increase my nightly average by ten customers each
month. If I can do this while continuing to make a profit I will be very successful.
I project to be making a profit after my third month of opening my business. With a projected
profit of around $200,000 after the first year of business you can see that I will be very successful.
After creating a balance sheet for my company I have projected that The Grapevine will be worth
around $106,236. This projected information shows why you should invest in me. . With your help of
$100,00 dollars along with guidance and marketing aid we together can make this dream a reality. In
return of your help you will be given an extra 35% on your investment.
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II. INTRODUCTION
Overview of Business:
For my business I chose the name “The Grapevine” for a restaurant I want to open. I chose
this name because I want an Italian and Mediterranean style restaurant that is smart casual/formal,
family friendly, but yet modern looking with great presentable foods. I also would like to have a wide
variety of wines available to the customers with a wine cellar and special party or garden room
available for larger or more important gatherings. My inspiration came from a magazine called the
Wine Spectator. I think it will attract customers because it makes the restaurant sound formal and really
gives out the vibe that I'm looking for.
The slogan I chose for my business is “Your Satisfaction is our Standard” because I want every
guest to feel satisfied with my restaurant and never be let down by our standards. The logo I have
created for my business fits well because it gives off a modern feel but still gives you the wine
cellar/Italian feel of a restaurant.
My mission statement is: “To ensure that each guest receives professional service. To provide
them with nutritional well prepared foods, using only the highest quality ingredients. To maintain a
clean and comfortable work place, giving every guest and staff member the respect they deserve. To
support local farms, and to thank each guest and company for our opportunity to serve them.” I created
this mission statement because it explains the importance of quality to my guests, and makes each and
every person feel welcome. When people read this I want them to understand their importance to us,
and feel like they are in good hands.
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III. ANALYSIS OF THE BUSINESS SITUATION
Self Analysis:
I am currently taking a marketing and entrepreneur class at tech center, and also took a culinary
and pastry arts class last year. I currently have a job as a cook at a small Italian restaurant. By studying
and working in the field I have learned a lot. I currently am ServSafe certified and placed third in state
at ProStart. Some of my strengths are business math, culinary core, and basic cookery. One of my
weaknesses is that I spend too much time developing and working on one thing. It can be hard for me
sometimes to work quickly and move on. I like to be very detailed and meticulous.
One of my greatest leadership skills is being a good role model for others. I don’t always like
being the one in charge telling people what to do, but I am always willing to do whatever it takes. I like
to take risks because I know that being creative and trying new things is the best way to progress. My
leadership style is diplomatic. I like to help others make important decisions, and I usually learn best
from past ideas and experiences.
Trading Area Analysis:
Competitive Data:
Price Competition
Olive Garden
Johnny Notos
Butch's
Non-Price Competition
Direct Competition
Olive Garden
Olive Garden
Johnny Notos
Johnny Notos
Butch's
Butch's
Indirect Competition
Applebees
Chop House
Leo's
Price competition is when you are competing with a firm in the same industry as you over the
price of your product. I will overcome my competition by setting a price above a low quality chain
restaurant to show quality, but closer to high end restaurants to show quality. Non-price competition is
competing in service, quality, product, location, and reputation. I will be a high quality restaurant with
great service, in an ideal location, attracting high class people. Direct competition is someone who has
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the same products as you. Indirect Competition is someone who is competing against you with a
similar product, but different, still in the same industry. I will overcome this competition by building a
great reputation and advertising to my target market showing the importance of quality and service.
SWOT Analysis:
Strengths

High Quality

Great Customer Service

High Standards

Local Business

New Building / Best Appliances
Opportunities

Possible Partnerships

Large Target Market
Weaknesses

New Company

High Prices
Threats

Lots of Competition
Strengths of my company include; high quality products, great customer service, high standards,
being a local business, and having a new building with the best appliances available. This is important
to us so that we can satisfy our customer’s needs. Some of our weaknesses include being a new
company and having high priced items. Over time we will be able to overcome these weaknesses after
having more experience. Opportunities for The Grapevine include possible partnerships, and having a
large target market. This is a good thing because it will be easier to attract customers and be well
known. One of the biggest threats is competition. There are many other high end restaurants in the area
and being new, it will be hard to set a good first impression and really catch our target market right
away. This can be overcome by good advertisement, making my business stand out.
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Target Market:
Demographics
Both Genders
High Income
Geographics
Greater Holland and
Grand Rapids Area
Urban Setting
Middle Age
Psychographics
Enjoy Social Life
Enjoy Eating Out
Enjoy a well
maintained area
High Class
Buying Behavior
Goes out to eat at least
once a month
Enjoys high quality
food and service
Has a social need
Has a need to fulfill
hunger
Demographics:
The demographics of The Grapevine will include people of both genders, middle aged,
specifically 21-60. This is because wine is one of the centers of my restaurant. These people will also
have a high income because I will be offering high end products.
Geographics:
I will be located in an urban setting in the greater Holland and Grand Rapids area. This will
benefit people who live in the area with ease of short travel. People who are driving by will see my
restaurant and hear about it more easily just by living in the area.
Psychographics:
The psychographics of my company will include people who enjoy social life, interactions with
other people, have a respect for high quality products and service, enjoy having a good time, and like to
be in a well maintained area. The main focus of my restaurant is to provide quality products. Reaching
the right people will be a huge success.
Behavior Variables:
Fulfilling the needs of the customers is very important. If someone is hunger, we will feed them,
if someone wants good service, we will serve them, if someone wants to be social and enjoy
themselves, come to The Grapevine. I will mainly be targeting people who go out to eat often, as it will
be difficult to reach those who really enjoy staying at home.
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Consumer Profile:
Personal Customer Profile:
Age
Gender
Income Level
Marital Status
Ethnic Background
Geographic Residence
Attitudes
Lifestyle
Behavior
35
Both
$40,000 and up
Any
Any
Urban
Outgoing, Positive, interested, open
Has a preference for high quality foods and great service
Outgoing, enjoys social life
My perfect customer will be around 35 years of age and has a high income. This is important
because they will be old enough to drink wine, and be able to understand the importance of quality.
Being someone who lives in an urban area near Grand Rapids is also another key factor to my perfect
customer because they will be in the area and can easily stop by for dinner, or even suggest The
Grapevine to others. Also being someone who is outgoing, has a positive attitude, and enjoys social
interactions will also be helpful because it will put our wait staff at ease and be able to satisfy them
more easily.
Trading Area:
My business will be located downtown Grand Rapids, Michigan. Grand Rapids is the second
largest city in Michigan by population. I would like to have my restaurant located along the edge of the
Grand River. The water front feel adds to the elegancy and high class edge The Grapevine needs.
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The neighborhood I will be located will be a wealthy, well-populated area, consisting of around
190,000 people. Being in a better part of town, with a lot of people, will make it easy to reach my target
market. Grand Rapids has many businesses, buildings, houses, and parks. The Grand River flows
through the middle of it, providing a scene to die for.
Grand Rapids has a wide variety of people. Most are very well educated and have a steady job
with a fare income, usually between $30,000 to $50,000 per year. About 60% of the population is
White, 20% Black, 15% Hispanic, and 5% other. The charts below measure the population.
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Grand Rapids is in the recovery stage of the business cycle, this means that they are building
new things and developing new products/firms, expanding on what is already there, and improving
what was. Something good about Grand Rapids is the large population. Having a lot of people in a
small area has great potential for large amounts of business. Another pro about Grand Rapids is the big
city feel without being in a big city. The Large buildings and many firms all through the city make it a
business hot spot. Another advantage of being located in Grand Rapids is the diverse culture.
Some bad things about Grand Rapids is the crime rate. If you are in a dangerous area it can be
hard to run a new business. Another thing you need to look out for in Grand Rapids is the competition.
With many firms in the area it can be hard to create a reputation. The worst thing about Grand Rapids is
the ability it has to hold major conferences and gatherings. If a large business came into town it would
be a great opportunity for me to have a high end restaurant available to them, but without this, it can be
hard.
Potential Location:
Near the Grand River in Grand Rapids, Michigan there is a 8,000 square foot retail restaurant
building for rent at $15/SF/Year with a 36 month lease term, that means for one year this space will
cost me $120,000 dollars, meaning a three year term will be $360,000. The building already being a
restaurant will save me money at start up, and will allow me to focus on smaller details. It is located in
a very well-known area with a large amount of trafficking, so advertising and promotions will be made
easier, saving some money. The picture shown below is the space available.
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IV. PLANNED OPERATION OF THE PROPOSED BUSINESS/PRODUCT/SERVICE
Proposed Organization:
I think that my company will work best as a limited liability company (LLC.) This will benefit
me because if something goes wrong I will have a strong amount of protection, and even though I will
have other people working with me in my company, sharing profit and contributing ideas, it will be
easier to get started and stay afloat. It will take work to get to this point and a lot of trust within the
employees but once things get going it will be worth it. The hardest part about running an LLC is the
fact that it will not be under my complete control and other people will be owners as well. Another
thing that I will have to look out for is the number of employees and managers, having a lot of people
to pay, making less of a profit for the company. By picking the right employees and right people to start
the business with, building strong relationships and levels of trust will be key in the survival of my
business.
Management Structure:
The management structure that I would like to operate under is a mixture of both vertical and
horizontal. I would like to operate this way because by mixing them together you get a best of both
worlds, distinct leadership roles, and well-knit teamwork positions. I think this is ideal for a restaurant
because you need someone in charge looking over everyone but also need self-leadership roles and
people making things happen without you always being there.
To plan my business I will research similar companies and look at how they operate. I will bring
in my own ideas, and create something new and better. I will set reachable goals and make sure
everything is possible. To organize and control my business I will adapt to the individual’s needs,
working with them as a team and building strong relations with them checking up with them as needed.
I will closely monitor their actions but still giving them the freedom they deserve inside the company. I
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will be sure to stay organized as a leader, keep track of important information, and be a strong role
model for my employees. Below is a diagram of my management structure.
CEO
CFO
Creative
Director
All other employees
Customer Service Philosophy:
Customer service is more than providing the customer with the product. Not only is the
customer looking for an end product, but the process of how they get it is also important. Building
relationships with the customer and making them feel like your top priority is customer service; going
out of your way to better their experience.
Four principles:
1. Be willing
Being willing to do the task at hand and doing it with a good attitude will help build a
comfortable working atmosphere and spread the joy of teamwork.
2. Choose your attitude
Choosing your attitude ensures that despite having a bad day, you can still enjoy coming
to work and get over the fact that you’re having a bad day. Showing people that you’re happy
and having fun can show other people that it’s a good day and get them out of a hole too.
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3. Have fun
Having fun yet still being professional can help create a working area that others enjoy
being a part of. Knowing that work will be fun can help you choose your attitude and make it
easier to be willing to do your job.
4. Be creative
Being creative is very important in the restaurant industry. Coming up with new ideas
can help set you apart from your competition.
Company Culture:
Having employees who share the same beliefs and attitudes as you is very important to having a
successful business. Upon hiring my staff I will go through strict interview procedures to ensure that
each person agrees with my mission and is willing to be a part of my philosophy. Trusting my
employees and knowing that they will be doing their best at all times is very important. Finding the
right people to be a part of my team will be very difficult, but well worth it in the end.
Company Atmosphere:
Creating a friendly company atmosphere is crucial. Something that I would like to focus on is
celebrating employee’s birthdays. Giving them a bottle of wine, or other small gifts reminds them that
we are thinking about them and care about them. Another thing I would like to do for my employees is
have various cooking competitions to allow different cooks to have their own ideas featured as specials,
and potentially new menu items. A small competition that can be help with the wait staff is seeing who
can sell the most of a given item on a given night. Again, rewarding the winner with a small prize just
to acknowledge them and care about them.
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Recruit and Retain:
By placing ads in various methods of promotion we can attract new customers. Then by
showing them how much we care about them and offer them only the best, they will choose to come
back. Once a person finds a way to become happy and satisfied, they will rely on that same thing again.
Ensuring that we offer our customers an enjoyable experience can help us retain our customers.
Product Line:
Beverage
Wine
Salad
House
Beer
Water
Soda
Greek
Crostini
Caesar
Calamari
Gorgonzola Parmigianino Sweet
Potato Fries
Fried tomatoes
Antipasto
Juice
Cocktails
Martinis
Champagne
Coffee
Mocktails
Appetizer
Caprese
Entrée
Pizza
Dessert
Gelato
Milano
Spaghetti
Lasagna
Cheesecake
Tiramisu
Crème Brulee
Rigatoni
Carbonara
Seafood Pasta
Sirloin
Baked Ziti
Scampi
Fish
Chicken
Parmigianino
Bananas Foster
Product Width and Depth:
The Grapevine offers six different product lines. One of the most important aspects of my
restaurant is the quality. Within each line there are several different products offered to the customer.
For example, within the beverage line there are ten different sub topics, some containing even more
options. We will offer wine, beer, water, soda, juice, cocktails, martinis, champagne, coffee, and
mocktails.
12
Packaging Strategy:
My packaging will protect my customers by making it easier for them to take their leftover food
home. It will make transporting it easy, keep their food safe, and also help maintain the quality of their
leftovers. It will meet their needs by allowing them to more easily bring their food home, still looking
like an important, high class, business person. My to go boxes will help sell my products because it will
create an advertisement for my restaurant, allowing people to help promote The Grapevine and attract
more customers.
Pricing Policy:
I want The Grapevine to give off a top of the line, elegant feel. In order for this to happen I will
set my prices higher than standard chain restaurants, and similar to high end restaurants in order to
compete with them. I want people to see that I am a higher quality restaurant offering only the greatest,
but I still want the price to be affordable and reachable by the customers. By setting the price too high
could potentially push away customers. Restaurants generally mark up their food costs 300 percent in
order to pay all fixed costs and still make a profit. Mark ups this large also can help show the
dedication to quality and high standards of service being provided. My prices will set me apart from my
competition because it will be high enough to show the quality yet low enough to be in competition
with similar restaurants.
Objectives:
Within my first month of business I would like to have a 95% satisfaction rate. In the first
month I would also like to collect at least 100 coupons that were sent out during advertisements. For a
third objective I would like to have at least 100 followers on Facebook within the first month to receive
information about new menu items and available coupons.
13
Print Advertisement:
This is a printed flyer that shows my grand opening date, along with a promotion idea for a
coupon. One of my objectives was to have 100 people like The Grapevine on Facebook, having this
being advertised on this flyer will help this happen. The pictures on my ad also give a brief preview of
what I will be serving, and the look of my restaurant. It will cost me $110.00 to print 2000 flyers.
Broadcast Media:
I am planning on having a radio ad. The ad will consist of a person talking about The Grapevine
and telling everyone about various coupons and new products, promoting our great service and
excellent food. Here is an example of what the person would say: “Dine in at The Grapevine today to
receive the best food you have ever had, and experience outstanding service. We are located at ……
and are open from …. to …… check us out on Facebook for more details and available coupons”. It
will cost me $435.00 to air on 99.3 for one month, and $405.00 to air on 104.5 for one month, totaling
$840.00 These will air on Monday through Friday between 5:00am and 8:00pm.
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Social Media:
I am going to make a Facebook page that people can follow me at. On the page will have
coupons, ads, new products, special promotions, and new menu items. There will also be many pictures
and a place for people to leave comments about their experience. There is no cost related to this type of
advertising.
Specialty Advertisement:
I will have wine bottle openers with my logo on them. They will be cheap and always on hand.
People will be able to have one of these state of the art wine bottle openers if they come on opening
day. I also hope to have wine for sale by the bottle, if they purchase a bottle they will also have the
chance to take one. It will cost me $850.00 for 1000 bottle openers.
15
Promotional Timeline:
Grand Opening, 100 likes on Facebook, start radio ad,
hand out specialty advertisements
- August 14, 2020
Promotional Timeline:
Launch Website, send out flyers, and
advertise on Facebook
- July 14, 2020
95% satisfaction rate,
collect 100 coupons
- September 14, 2020
One month before I open I will begin my initial advertisements. This will consist of launching
my website, passing out flyers, and posting various promotions on Facebook. On the day of my grand
opening I will begin my radio advertisements, I will be handing out my wine bottle openers, and hope
to have 100 likes on my Facebook page by the end of the day. After the first month of business I plan to
have collected at least 100 coupons, and achieve a 95% satisfaction rate.
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Promotion Budget:
Radio: $840 for 2 stations, Monday through Friday for 1 month ($28.00 for 30 seconds)
Bottle Opener: $850.00 for 1000 ($0.85 each)
Social Media: free
Print Media: $110.00 for 2000 ($0.055 each)
Total: $1,800
V. PLANNED FINANCING
Income Statement:
The Grapevine
Projected Income Statement
June
July
August
September
October
November
December
Total
Income
Sales
in store sales
Start Up Loan
Total Income
Cost of Goods Sold
ingredients
Total COGS
Gross Profit
Operating Expenses
Fixed Expenses
Utilities Expense
Loan Payment
Rent Expense
Insurance Expense
Equipment
Miscellaneous Expense
Total Fixed Expenses
Variable Expenses
Salaries Expense
Social Security Tax Expense
Medicare Tax Expense
State Unemploy. Tax (SUTA)
Federal Unemploy. Tax (FUTA)
Total Variable Expense
Total Fixed and Variable Expense
Net Income/Loss
$ 36,000.00 $ 45,000.00 $ 54,000.00 $ 63,000.00 $ 72,000.00 $ 81,000.00 $ 90,000.00 $
$ 95,000.00
0.00
0.00
0.00
0.00
0.00
0.00 $
$ 131,000.00 $ 45,000.00 $ 54,000.00 $ 63,000.00 $ 72,000.00 $ 81,000.00 $ 90,000.00 $
441,000.00
95,000.00
536,000.00
$ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $
$ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $ 8,500.00 $
$ 122,500.00 $ 36,500.00 $ 45,500.00 $ 54,500.00 $ 63,500.00 $ 72,500.00 $ 81,500.00 $
59,500.00
59,500.00
476,500.00
$
$
$
$
$
$
580.00 $
580.00 $
580.00 $
580.00 $
580.00 $
580.00 $
580.00 $
$ 1,881.11
1,881.11
1,881.11
1,881.11
1,881.11
1,881.11 $
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00 $
150.00
150.00
150.00
150.00
150.00
150.00
50,000.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00 $
60,630.00 $ 12,661.11 $ 12,661.11 $ 12,661.11 $ 12,661.11 $ 12,661.11 $ 12,661.11 $
$ 30,000.00
1,860.00
435.00
1,275.00
180.00
$ 33,750.00
$ 94,380.00
$ 28,120.00
$ 30,000.00
1,860.00
435.00
1,275.00
180.00
$ 33,750.00
$ 46,411.11
$ (9,911.11)
$ 30,000.00
1,860.00
435.00
1,275.00
180.00
$ 33,750.00
$ 46,411.11
$
(911.11)
$ 30,000.00
1,860.00
435.00
1,275.00
180.00
$ 33,750.00
$ 46,411.11
$ 8,088.89
$ 30,000.00
1,860.00
435.00
1,275.00
180.00
$ 33,750.00
$ 46,411.11
$ 17,088.89
$ 30,000.00
1,860.00
435.00
1,275.00
180.00
$ 33,750.00
$ 46,411.11
$ 26,088.89
$ 30,000.00
1,860.00
435.00
1,275.00
180.00
$ 33,750.00
$ 46,411.11
$ 35,088.89
$
$
$
$
$
$
$
$
4,060.00
1,881.11
70,000.00
$900.00
350.00
136,596.66
210,000.00
13,020.00
3,045.00
8,925.00
1,260.00
236,250.00
372,846.66
103,653.34
Expecting business to be fairly slow in the first month, if 40 people come in each night for the
first month, on average spend around $30, I will have an income of $36,000. Each month I hope to
increase my average by 10 people, thus meaning by having 100 people come in each night spending
around $30, will give me an income of $90,000 a month.
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I plan to have 10 workers on site for 10 hours getting paid an average of 10 dollars/hour each
day. This will cost me $30,000 each month to pay them. If I take a loan for $95,000 dollars to get
started this will cover equipment costs, utilities, rent, and salaries for the first month. If I take 5 years to
pay off this loan that will cost me $1881.11 each month. Having an income $90,000 a month, with
$10,000 in costs of goods, and $46,411.11 in operating expenses, this will give me a profit of
$38,588.89 each month.
Balance Sheet:
The Grapevine
Balance Sheet
Assets
Current Assets
Cash
Investments in stocks
Accounts receivable
Inventory
Supplies
103,653
0
100,000
7,000
1,500
Total Current Assets
212,153
Fixed Assets
Computers
Less: accumulated depreciation
Furniture and fixtures
Less: accumulated depreciation
Equipment
Less: accumulated depreciation
3,000
600
8,500
1,700
50,000
10,000
Total Fixed Assets
49,200
Total Assets
261,353
Liabilities and Owners' Equity
Current Liabilities
Accounts payable
Salaries payable
Payroll tax payable
Other payable
Total Current Liabilities
Long Term Liabilities
Loan payable
8,500
30,000
3,750
42,250
112,867
Total Liabilities
155,117
Owners' Equity
Common stock, $10 par value, * # shares issued
Additional paid-in-capital
Retained earnings
Total Owners' Equity
Total Liabilities and Owners' Equity
0
0
0
106,236
261,353
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My balance sheet shows how much my business is worth. It shows in detail how much money I
have put into various things, and how much money I will be making after each year. After all is
calculated, my business is worth $106,236. Being worth this much money, investors would want to
partner with me because they know that I am successful.
VI. CONCLUSION
The Grapevine will be very successful. By giving customers the professional service they
deserve while providing them with fresh, nutritional and well prepared foods in a clean and
comfortable area while giving them the respect they deserve will ensure satisfied customers. If I can
satisfy my customers while making a profit, my restaurant will grow into a phenomenal business. With
your help of $100,00 dollars along with guidance and marketing aid we together can make this dream a
reality. In return of your help I will give you an extra 35% on your investment. In the first year of sales
I have a projected profit of around $200,000 thus meaning that after two years I will be able to safely
pay you back in case something happens in the beginning stages of business.
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