Kings Throne
Restaurant and
Lounge
Address: TBD
Business Plan
Company Management:
Owner: Marques Lanard Bronner
Company: C and M Entertainment, LLC, dba Kings Throne Restaurant and Lounge
Industry:
Restaurant
Number of Employees:
10
Amount of Financing Requested:
$100,000
The owner can invest $15,000 into the business.
Use of Funds:
The funds will be used for the following:
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$10,000 for supplies
$20,000 for equipment
$20,000 for the building
$50,000 startup working capital
Mission:
Our mission is to provide high quality food at competitive prices. We will bring the best food,
authenticity, experience and service to all of our guests. We are committed to using only fresh
and quality ingredients ensuring our customers are getting only the very best.
Executive Summary:
The Single Location Full-Service Restaurants industry has bounced back over the past five years
after a slowdown due to the recession. Since 2010 the improving economy and rising consumer
spending have led to consistent growth in restaurant spending. The fine dining segment has done
particularly well over the past five years due to the quick recovery in the income levels of
affluent consumers. On the other hand, those restaurants at the lower end of the market have
struggled with low growth as consumers have traded down to innovative products served by a
growing number of new fast casual chains. Over the five years to 2014, IBISWorld estimates
industry revenue will grow at an average annual rate of 2.6% to $141.4 billion. Revenue is
expected to continue its upward trajectory in 2014, growing an estimated 1.7%.
The industry competes in the broader food service sector and consists of owner-operated
restaurants that are independent of chain or franchised networks. The majority of operators are
small, family-run businesses, causing the industry to be highly fragmented and competitive.
Single locations restaurants face heavy competition from other food service providers, with
chain restaurants, fast food restaurants, hotels and other coffee and snack stores all in direct
competition. For this reason, profit margins are generally low across the industry and operators
rely on high product turnover to turn a profit. The average industry profit margin has increased
over the past five years, along with demand.
The industry's steady rebound is expected to continue over the next five years as the economy
improves and consumer spending grows. Consumer spending is expected to increase 3.0% per
year on average over the five years to 2019, benefiting the industry. Despite the optimistic
operating conditions, operators will need to monitor and adjust to shifting consumer
preferences. Rising health consciousness and ethical consumerism will present industry
operators with ongoing opportunities to reach niche markets with premium products, in order to
increase profitability and revenue. The industry will also likely benefit from population and
immigration growth, as well as a greater number of people living in urban areas where
restaurants are highly concentrated. In the five years to 2019, industry revenue is forecast to
grow at an average annual rate of 2.5% to $160.3 billion.
Business Description:
The business will provide a variety of menu items such as Southern style food and Italian foods.
Customers will also be able to come in and enjoy a live band a certain times of the week. We will
also have an area set up where customers can enjoy watching sports.
Industry experts have identified the following keys to success which we will incorporate into our
business model:
1. Access to multi-skilled and flexible workforce: Access to suitably skilled and trained staff on
hourly rates is required to meet peak customer demand periods.
2. Ability to quickly adopt new technology: Owners need to adopt new employee training and
kitchen and customer-related technology to increase productivity and lower labor costs.
3. Attractive product presentation: Restaurant atmosphere and ambiance are important to
attract and retain guests.
4. Proximity to key markets: It is important to be in a good, easily accessible location that is
close to target markets.
5. Ability to control stock on hand: Controlling orders, stock and food waste, which are major
cost areas, can reduce unnecessary expenses.
6. Ensuring pricing policy is appropriate: To maintain costs and profit margins on meals,
owners must ensure that menu pricing/portion control process is undertaken thoroughly.
Company Background:
The owner, Marques Bronner, has experience in cooking and has acquired management skills in
the U.S Navy where he had over 40 people who reported to him. Mr. Bronner is determined and
has always been ambitious. His father also has been in business for 25 years so he has first-hand
guidance and experience in maintaining a business.
Products/Services:
We will service Southern style food and Italian foods. Customers in our market are looking for a
restaurant that offers a variety of menu options and affordable pricing. They are also looking for
someone who can provide something different like live entertainment and a different taste to this
area.
Technology:
The systems used will be point-of-sale, inventory and recipe management. Both systems are PC
based and have become industry standards.
Markets:
We are targeting the older age crowd as far as the live band is concerned. As far as the dining
experience it will be for all ages and great for everyone to enjoy with family. The major markets
for the Single Location Full-Service Restaurants industry can be segmented based on a number
of factors including income, age, geographic location and family structure. Given the
discretionary nature of the industry, an indication of major markets can be inferred on the basis
of annual expenditure on food and beverages consumed outside the home. According to the US
Census Bureau, the average consumer spends about 5.3% of their annual expenditure on food
and beverages consumed outside the home.
An estimated 39.0% of industry demand comes from consumers in the nation's highest income
quintile. In 2011 (the latest available data), the average consumer in the highest income bracket
spent $5,163 on food and beverages consumed outside the home, according to the US Census
Bureau. On the other hand, those in the lowest income quintiles often need to make significant
sacrifices in order to afford meals away from home. The average consumer in the lowest income
quintile spent $1,099 on out-of-home food consumption in 2011. The three middle-income
quintiles represent more than 50.0% of industry demand, showing how important the middleclass consumer is to the industry's performance. While these consumers do not typically spend
big on luxury food items, they contribute to steady demand for middle-of-the-range chain
restaurants.
The industry's major markets distribution has not changed dramatically over time as spending
patterns within income brackets are relatively established. There was some tightening of budgets
during the recession, but this occurred across all demographics, so it did not influence the
industry's major markets distribution.
Marketing:
The most powerful and effective means of generating new business is word-of-mouth. People
turn to trusted friends or colleagues for recommendations regarding restaurants. Because wordof-mouth referrals are free, you can’t beat the return on investment that a positive referral can
generate. To stimulate word of mouth, we will actively ask customers for referrals and
recommendations. The driving force behind consumers’ desire to share positive stories about
organizations is the trust they have in the products, services and people associated with those
entities. We will strive to build that trust with every interaction we have with a customer.
We will also use an internet based strategy. This is very important as many people seeking local
services now use the Internet to conduct their preliminary searches. We will register with online
portals so that potential customers can easily reach the business. The Company will also have its
own online website showcasing the Company’s services, preliminary pricing information, and
relevant contact information.
Additional marketing tactics we will use are the following:
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Coupons--They are an excellent way to get new customers and to reward old ones.
Contest--We will host a contest online or offline to draw in new customers.
Giveaways--Giving away free stuff is a great way to grab attention and to draw in new
customers.
In-store events--People love free stuff and people love to be social. We will use any
excuse possible to have an in store event. We will draw people in with free stuff and
spend some time getting to know them while they are there.
Online events--Week long online events have been proven to increase in store activity
and to introduce new customers to our store.
Write and Review--We will write articles about our business, publish them online or in
local papers for free advertising.
Sponsor--It gets our name out in the public space and enhances our brand recognition.
Competition:
Our competitors would be a place called Comfort Zone, but on the side of town we are
considering there is currently no one offering the type of services that we will have an there is no
one around that does live entertainment. Although price-based competition is prevalent within
this industry, restaurants also compete on the basis of location, food quality, style and
presentation, food range and variety, ambiance and hospitality and service. Restaurants are
involved in marketing the meal experience, so it is important that the owner-operator
understands a restaurant's positioning in the marketplace, the clientele they are attracting or
want to attract and the meal experience. Most importantly, a restaurant must consistently deliver
on the customers' expectations.
Research by the National Restaurant Association indicates that choice of portion size and the
availability of to-go boxes are important factors. A high proportion of the younger generation
order larger portion sizes and request a to-go box, to use the excess for another meal. Varying
portion size also meets the value-for-money criteria sought by many customers. Currently, there
is high demand for the ability to customize orders, choose the type of sauce on the side, and have
the food prepared with cooking oil, margarine, butter or no salt.
Competition to this industry arises from other food service providers, including limited-service
restaurants and chains and franchised full-service restaurants. The latter has a far greater
market awareness and presence, but offering a standardized menu. Competition from limitedservice restaurants is also subject to the population's awareness of the benefits in maintaining a
healthy diet with low fat, sugar and salt content. Other competitors include households that
prepare their own meals at home or purchase pre-packaged meals at supermarkets to consume
at home.
Financial Projections:
$160,000
$150,000
Gross Revenue
Net Revenue
$140,000
$125,000
$120,000
$100,000
$100,000
$80,000
$60,000
$40,000
$20,000
$FY 2014
FY 2015
FY 2016
Expenses per month:
$11,600
Employee Payroll
$5,000
Inventory
$4,500
Rent
$3,000
Utilities
$2,500
Owner Salary
$1,500
Licenses/Fees
$1,000
Misc.
$500
Marketing
Office Supplies
$300
Vehicles
$200
Insurance
$200
$80
Phone/Internet
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Conclusion:
C and M Entertainment seeks a relationship with a lender who can help us carefully grow our
business in a manner which will continue to provide needed services to our market. We
appreciate your consideration of our request and are confident we can enjoy a fine working
relationship for many years to come.