Business plan
1. RESUME OF THE PROJECT
1.1 Title of the project
Café- restaurant “Korean BBQ”
1.2 Initiator of the project
project introduces establishment of
a new enterprise “Korean BBQ” that will be registered in the name of private
entrepreneur PE Serdyukova with an authorized capital of 300 000 (three hundred
thousand) rubles.
.3 Objectives
Goal of the project: launching of a
unique Korean cuisine café- restaurant based on a self - cooking
barbecue scheme in Blagoveshchensk (Amur
region, Russia); café- restaurant is primarily
targeted at servicing during lunch time and evenings.
.4 Strategy and major stages of
project’s fruition
· Devising of project
documentation, acquiring of necessary permits for business dealing in the
sphere of public catering;
· Purchase and
refurbishment of the premises;
· Installation of the
equipment;
· Conducting of
advertisement campaign and personnel hiring;
· Launching and
maintaining of the project.
Stages of project’s implementation
and the time frames are outlined in Table № 1.
Table № 1
№
|
Actions
|
Time frames
|
|
|
|
Jan ‘11
|
Feb ‘11
|
March ’11
|
April ‘11
|
|
|
1-10
|
10 - 20
|
20- 30
|
1 - 10
|
10 - 20
|
20 - 30
|
1 - 10
|
10- 20
|
20 - 30
|
|
1
|
Devising of project documentation,
acquiring of necessary permits
|
|
|
|
|
|
|
|
|
|
|
2
|
Signing of contracts for equipment
supply
|
|
|
|
|
|
|
|
|
|
|
3
|
Purchase of the premise
|
|
|
|
|
|
|
|
|
|
|
4
|
Preparation and refurbishment of
production space and storeroom
|
|
|
|
|
|
|
|
|
|
|
5
|
Personnel hiring
|
|
|
|
|
|
|
|
|
|
|
6
|
Delivery and installation of the
equipment
|
|
|
|
|
|
|
|
|
|
|
7
|
Purchase and delivery of raw
produce
|
|
|
|
|
|
|
|
|
|
|
8
|
Conducting of advertisement
campaign
|
|
|
|
|
|
|
|
|
|
|
9
|
Restaurant’s opening
|
|
|
|
|
|
|
|
|
|
|
10
|
Start of production
|
|
|
|
|
|
|
|
|
|
|
1.5 Product
of Korean cuisine dishes, high
service level and providing of community with recreation area.
2. MARKET ANALYSIS
2.1 Analysis of the industry
sector
restaurant market emerged in Russia
recently; nevertheless, it is rapidly developing. According to the all-Union
State Standard Р
50762-95, there are three groups of restaurants: luxe, prime and the first,
that imply certain sets of requirements to the restaurants. There is also a
common classification of restaurants with regard to price level:
fine dining (minimal bill 50 USD);
casual dining (average bill - 10-50
USD);
fast-food (average bill - 5-10 USD);
cafes, coffee hause (average bill -
5-15 USD);
clubs, canteens.’ reports reveal
that medium cost restaurants present the most opportune sector of the market.
For instance, fast - food branch is only 15-20 % occupied and its filling will
take at least 5 years. of public catering in the Amur region comprises 1200
companies, approximately 54 % out of which are generally accessible. More than
200 of generally accessible public catering
businesses are situated in Blagoveshchensk. The majority of them (110 units)
has a status of a café and specializes chiefly in Chinese cuisine (56
cafes). turnover of public catering sector
in the Amur region in actual prices has increased by 7.5 times and in physical
quantity by more than 3 times since 2003. Level of citizens’ provision with
generally accessible public catering seats equals 74 %. The norm of 40 seats
per 1000 capita is fulfilled only in Blagoveshchensk (44 seats), Tynda and
Uglegorsk. augmentation of public catering services’ quantity, the number of
businesses in the sector has not extended conformably. In 2005 the market
included 578 restaurants, in 2006 - 630, and in 2007 - 600. Even though 23 % of
them have a foreign cuisine specialization, just a few have a corresponding
decoration and specific traditions. Nonetheless, average seat turnover
comprises 2,5 and 0,5 people per day in Chinese restaurants and other ones
respectively.
2- Forecast of public catering
market capacity
|
Data
|
2010
|
2011
|
2012
|
2013
|
2014
|
Monthly average accrued wages in
the Amur region
|
17338,30
|
|
|
|
|
|
Monthly average accrued wages in
Blagoveshchensk
|
18118,50
|
|
|
|
|
|
Year average market accession rate
|
0,20
|
|
|
|
|
|
Market size of the Amur region
(mln. rubles)
|
|
2835,9
|
3403,08
|
4083,70
|
4900,44
|
5880,52
|
Market size of Blagoveshchensk
(mln. rubles)
|
|
697,55
|
837,06
|
1004,47
|
1205,37
|
1446,44
|
Population size of the Amur region
(thousands of people)
|
903,00
|
|
|
|
|
|
Population size of Blagoveshchensk
(thousands of people)
|
212,55
|
|
|
|
|
|
Portion of Blagoveshchensk
population in the population of the Amur region
|
0,24
|
|
|
|
|
|
in all, the market is attractive
albeit being saturated with multiple homogeneous cafes and restaurants.
2.2 Analysis of produce’s
market
’s locationrestaurant will be
situated in the city center among business centers, malls and office buildings.
Therefore, a processing area located in the building of a business center will
be purchased for 7050 thousand rubles. Overall area is 111 square meters, including
81 square meters of dining room. It is scheduled to acquire additional office
area in 2013, thus the dining area will be expanded to 91 square meters.
descriptioncuisine is considered to be one of the most peculiar among Asian
cuisines. Since it has been evolving separately from neighboring Chinese and
Japanese cuisines, it formed a unique blend of tastes and recipes. Bearing in
mind that people living in the Russian Far East show preference to Asian
cuisines, Korean cuisine has all necessary prerequisites for becoming a
favorite. Likewise, a new format of each table’s equipment with mini oven and
self-cooking of traditional dishes within 15 minutes will be attractive for
perspective customers.intended menu will include:
pork (frozen and thinly sliced, it
will be cooked by the clients; seasoning, sauce and lettuce will be available
unrestrictedly);
beef (frozen and thinly sliced, it
will be cooked by the clients; seasoning, sauce and lettuce will be available
unrestrictedly);
soup 1 (“ghuk i tkhan”);
soup 2 (“yukkedyan”);
3 types of various salads;
selection of vegetables;
boiled rice (“bap”);
fried rice with vegetables;
beverages (coffee, tea, beer, juice,
Coca Cola, Sprite, Fanta).of clients
Intended target group of the “Korean
BBQ” café-restaurant lives in Blagoveshchensk and has an income exceeding
subsistence level. Presumably, customers of the
café- restaurant will comprise of young
people and other employed working-age population. Specifically, “Korean BBQ”
will be popular with middle-aged males (30-60 years old) since they possess
highest incomes and prefer suggested produce (especially beer and meat).
2.3 Analysis of business rivals
are no direct business rivals who
would introduce the same commodities and services to the market, however
indirect business rivals are presented by multifarious Chinese restaurants
situated in the city center. Nevertheless, creation of
unique Korean culture ambience and an opportunity to make customized
traditional Korean dishes will single the café-restaurant out of them.
2.4 Marketing plan
Marketing strategymajor goal of the
project at the current stage is entering the market and subsequent promotion of
its market position. Consequently, marketing strategy will contain augmenting
of demand through increasing of sales volume, price policy, nonprice
competition, and creation of enviable reputation. It will the following
measures:
. Printing and distribution of
advertising leaflets in offices, business and trade centers;
2. TV and radio commercials.
Dynamics of approximate advertisement
expenditures for the first 4 years of the café-restaurant’s operation is
presented below.
outline of advertisement
expenditures is provided below.
the first year of company’s
operation the expenditures on marketing measures will require 7 % of the gains,
in the posterior periods this number will not transcend 3 %. addition
a signboard will be ordered for the café-restaurant entrance, its price
is 3160 rubles.
Pricing
“Korean BBQ” will be a medium price
restaurant; production cost and intended profit constitute a base for the
pricing.
№ 3- Structure of production prime
cost
|
Portion of the sale price
|
Expenditures
|
2011
|
2012
|
2013
|
2014
|
raw materials
|
29,5%
|
27,1%
|
25,8%
|
25,6%
|
labor
expenditures
|
3,2%
|
2,5%
|
2,2%
|
2,1%
|
operating
expenditure
|
11,4%
|
8,2%
|
5,7%
|
5,4%
|
managerial expenditure
|
29,0%
|
15,7%
|
14,5%
|
14,8%
|
depreciation
|
3,5%
|
2,2%
|
1,5%
|
1,8%
|
commercial expenditure
|
7,2%
|
2,2%
|
1,7%
|
1,9%
|
taxes
|
2,4%
|
1,1%
|
0,8%
|
0,8%
|
profits
|
13,7%
|
40,9%
|
47,8%
|
47,5%
|
3. PRODUCTION PLAN
3.1 Volume of sales
forecast was elaborated with a
reference to public catering market’s capacity and the size of “Korean BBQ” (44
seats, distributed among 4 tables for 6 persons and 5 tables for 4
persons).Volume of sales is estimated according to loading of the restaurant,
average bill and seasonality. Monthly volume of sales forecast is presented on
the graphs below:
sales volume increases
disproportionally due to commodities’ ciclicity laws.
.2 Prime cost of the output
estimation was conducted proceeding
from average commodities prices set by prospective suppliers.
№4 - Prime cost output
Prime cost (sum of variable costs)
|
pork, 100 g (with seasoning and
lettuce)
|
beef, 100 g (with seasoning and
lettuce)
|
soup 1 (“ghuk i tkhan”)
|
soup 2 (“yukkedyan”)
|
Salad 1 (kimchi)
|
Salad 2 (carrot)
|
Salad 3(soy-bean meat and
champignons)
|
selection of vegetables
|
boiled rice (“bap”)
|
fried rice with vegetables
|
2011
|
63,117
|
55,538
|
37,37
|
46,808
|
39,7
|
28,228
|
47,005
|
38,35
|
31,02
|
36,90
|
2012
|
57,239
|
51,499
|
30,52
|
42,55
|
36,3
|
24,155
|
43,11
|
35,56
|
25,29
|
32,22
|
2013
|
53,092
|
48,649
|
25,68
|
39,65
|
33,9
|
21,382
|
33,66
|
21,4
|
29,04
|
2014
|
55,161
|
50,389
|
27,03
|
40,528
|
35,4
|
21,839
|
41,09
|
34,01
|
22,04
|
29,9
|
a result of sales volume accretion
prime cost is gradually decreasing.
3.3 Personnel and company
management
“Korean BBQ” will be registered in
the form of private entrepreneur (PE) in order to simplify registration process
and taxation system.the chief manager will be responsible for:
Organization and control of the
restaurant’s work;
- Its condition, and
personnel’s condition;
Representation of the
enterprise;
Being in command of
company’s property;
Signing of contracts;
Opening of enterprise’s
bank accounts;
Search of suppliers;
Issuing orders, hiring and
firing of personnel.
Accountant will be in charge of
financial matters and occupy the position of vice-director. Overall, “Korean
BBQ” will employ 9 staff members. Personnel arrangements are displayed in table
№5.
№ 5 - Personnel arrangements
at “Korean BBQ” café-restaurant
Position
|
Number of employees
|
Salary, in rubles (monthly average
accrued)
|
|
|
2011
|
2012
|
2013
|
2014
|
Director
|
1
|
35000
|
35000
|
40000
|
45000
|
Accountant
|
1
|
25000
|
25000
|
30000
|
35000
|
Manager
|
1
|
17000
|
17000
|
20000
|
25000
|
Waiter
|
2
(3-since 2012)
|
10500
|
10500
|
11500
|
11500
|
Cook
|
1
|
8792,02
|
11
163,55
|
13670,79
|
14
899,14
|
Cook’s assistant
|
1
|
6605,87
|
8390,395
|
10777,03
|
10
948,86
|
Cleaner
|
2
|
6000
|
6000
|
6000
|
6500
|
cooking scheme practiced in the
restaurant will contribute to retrenchment of personnel expenditures.
4. FINANCE
4.1 Cost of the project
cost of the project is estimated as
8300 thousand rubles, comprising 8000 thousand rubles loan and 300 thousand
rubles of equity. 7050 thousand rubles will be spent on purchasing and
refurbishing of the premises, 385.6 thousand on manufacturing equipment, 82.08
thousand on other equipment, and 358 thousand of rubles on raw materials.
.2 Sources of finance
loan will be acquired for the
purpose of project’s fruition, minimum preparatory period will take 1 month and
the interest rate set by the bank-loaner is 18 %. Disbursement of the major
debt will be launched after two years. Ultimate loan payment period is 36 month
since its receiving.
4.3 Internal rate of return
analysis
IRR
|
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
IRR and changes in volume of sales
|
0,00%
|
2,26%
|
2,82%
|
3,33%
|
3,81%
|
3,30%
|
4,68%
|
IRR and changes in expenditures
for raw materials
|
3,74%
|
3,60%
|
3,47%
|
3,33%
|
3,19%
|
3,04%
|
2,90%
|
IRR and changes in labor
expenditures (operational personnel)
|
3,37%
|
3,35%
|
3,34%
|
3,33%
|
3,29%
|
3,30%
|
3,22%
|
IRR and changes in operating
expenditure
|
3,44%
|
3,40%
|
3,37%
|
3,33%
|
3,29%
|
3,25%
|
3,22%
|
4.4 Net present value analysis
(in rubles)
NPV
|
|
85%
|
90%
|
95%
|
100%
|
105%
|
110%
|
115%
|
To changes in volume of sales
|
947891,0
|
2570802,6
|
4193714,3
|
5816625,9
|
7439537,6
|
9062449,3
|
10685360,9
|
To changes in expenditures for raw
materials
|
7180788,5
|
6726067,6
|
6271346,8
|
5816625,9
|
5361905,1
|
4907184,3
|
4452463,4
|
To and changes in labor
expenditures (operational personnel)
|
5935353,6
|
5895777,7
|
5856201,8
|
5816625,9
|
5777050,0
|
5737474,1
|
5697898,2
|
To changes in operating
expenditure
|
6164753,5
|
6048711,0
|
5932668,5
|
5816625,9
|
5700583,4
|
5584540,9
|
5468498,4
|
The project is steadfast to
fluctuation of expenditures and decline in sales volume. The major threat to
project’s fruition is presented by augmenting expenditures for raw materials,
however the risk is not critical.
5. FINANCE PLAN
.1 Investments
greatest portion of investments
(7549323,31 rubles) will be directed to fixed assets and repairing works.
№6 -Structure of fixed assets
Item
|
quantity, pieces
|
Price per unit
|
Cost without VAT
|
longevity
|
Items with longevity of 1-2 years
|
plates (set,
10 pieces.)
|
14
|
600
|
8400
|
1
|
Cutlery
set
|
5
|
450
|
2250
|
1
|
Tea cups
|
60
|
50
|
3000
|
1
|
Glasses (set,
10 pieces.)
|
6
|
300
|
1800
|
1
|
Beer glasses (set,
10 pieces.)
|
5
|
500
|
2500
|
1
|
Garbage can
|
2
|
200
|
400
|
1
|
Small kitchen stock
|
1
|
3500
|
3500
|
1
|
ashtray
|
5
|
100
|
500
|
1
|
carafe
|
10
|
200
|
2000
|
1
|
Napking holder with seasoning
parisons
|
9
|
50
|
450
|
1
|
Soap dish
|
2
|
90
|
180
|
1
|
Total for group 1
|
|
|
24980
|
|
Items with longevity of 2-3 years
|
cash register and its installation
|
1
|
13000,00
|
13000,00
|
3
|
kettle
|
2
|
1500,00
|
3000,00
|
3
|
rice cooker, Panasonic SR-42GHXN,
for 20 portions
|
2
|
2150,00
|
4300,00
|
3
|
signboard
|
1
|
3120
|
3120
|
3
|
mirror
|
2
|
300
|
600
|
3
|
Toilet paper holder
|
2
|
200
|
400
|
3
|
Dispensable towels holder
|
2
|
350
|
700
|
3
|
hangers
|
2
|
1800
|
3600
|
3
|
Air-conditioner
|
2
|
28000
|
56000
|
|
curtains
|
2
|
2000,00
|
4000,00
|
3
|
Total for group 2
|
|
|
88720,00
|
|
Items with longevity of 3-5years
|
chair
|
47
|
855,00
|
40185,00
|
5
|
Working surface PN35C7 with case
GN 1/1
|
1
|
9320,00
|
9320,00
|
5
|
computer
|
2
|
23200
|
46400
|
5
|
phone
|
1
|
700
|
700
|
5
|
Set of office furniture
|
1
|
20000
|
20000
|
5
|
Total for group 3
|
|
|
116605,00
|
|
Items with longevity of 5-7 years
|
Table with inbuilt oven imported
from China
|
9
|
12368,75
|
111318,75
|
6
|
Audio system
|
1
|
5000
|
5000
|
6
|
Total for group 4
|
|
|
116318,75
|
|
Items with longevity of 7-10 years
|
Fridge “Biryusa 199K”
|
2
|
14528,78
|
29057,56
|
10
|
freezer ЕL-22
|
2
|
12587,00
|
25174,00
|
10
|
bar
counter
|
1
|
28300,00
|
28300,00
|
10
|
oven 74/02TCG
|
1
|
32000,00
|
32000,00
|
Professional dishwasher Е50
|
1
|
26828,00
|
26828,00
|
10
|
WC pan with installation
|
2
|
2550
|
5100
|
10
|
Sink with installation
|
2
|
3120
|
6240
|
10
|
Total for group
5
|
|
|
152699,56
|
|
Items with longevity of 25-30
years
|
Premises and their refurbishing
|
1
|
7050000,00
|
7050000,00
|
30
|
Total for group 9
|
|
|
7050000,00
|
|
Total
|
|
7549323,31
|
|
5.2 Taxes
concordance with chapter 26 TC RF,
the company will utilize a simplified taxation scheme - unified tax on imputed
income of individual entrepreneurs that accounts for 15 % of basic
profitability. The enterprise will pay 29160 rubles quarterly until 2013, after
acquiring of new premises - 32760 rubles in 2013 and 2014. It will also
transfer 14 % of accrued wages as insurance installments.
.3 Extinguishment of the debt
business strategy
management marketing
Extinguishment of the debt is
presented in Table № 7.
Table № 7
Year
|
Month
|
Major debt before the beginning of
month
|
Extinguishment of the major debt
|
Extinguishment of interest rate
|
Loan service
|
Total loan payments
|
Major debt in the end of month
|
2011
|
1
|
|
|
|
|
|
8
000 000
|
|
2
|
8
000 000
|
0
|
120
000
|
40
000
|
160
000
|
8
000 000
|
|
3
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
4
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
5
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
6
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
7
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
8
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
9
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
10
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
11
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
12
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
2012
|
1
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
2
|
8
000 000
|
0
|
120
000
|
40
000
|
160
000
|
8
000 000
|
|
3
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
4
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
5
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
6
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
7
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
8
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
9
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
10
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
11
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
|
12
|
8
000 000
|
0
|
120
000
|
|
120
000
|
8
000 000
|
2013
|
1
|
8
000 000
|
500
000
|
120
000
|
|
620
000
|
7
500 000
|
|
2
|
7
500 000
|
500
000
|
112
500
|
40
000
|
652
500
|
7
000 000
|
|
3
|
7
000 000
|
500
000
|
105
000
|
|
605
000
|
6
500 000
|
|
4
|
6
500 000
|
500
000
|
97
500
|
|
597
500
|
6
000 000
|
|
5
|
6
000 000
|
500
000
|
90
000
|
|
590
000
|
5
500 000
|
|
6
|
5
500 000
|
500
000
|
82
500
|
|
582
500
|
5
000 000
|
|
7
|
5
000 000
|
500
000
|
75
000
|
|
575
000
|
4
500 000
|
|
8
|
4
500 000
|
500
000
|
67
500
|
|
567
500
|
4
000 000
|
|
9
|
4
000 000
|
1
000 000
|
60
000
|
|
1
060 000
|
3
000 000
|
|
10
|
3
000 000
|
1
000 000
|
45
000
|
|
1
045 000
|
2
000 000
|
|
11
|
2
000 000
|
1
000 000
|
30
000
|
|
1
030 000
|
1
000 000
|
|
12
|
1
000 000
|
1
000 000
|
15
000
|
|
1
015 000
|
0
|