marketing plan aaa.docxmarketing plan for a new restaurant

7/28/2019 marketing plan aaa.docxMarketing Plan For a new restaurant

1/19

marketing plan

onVillage based Theme

restaurant

SUBMITTED TO: PRESENTED BY:
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Acknowledgment

Perseverance Inspiration and motivation have always played a key role in the success of any

venture. So hereby, it is our pleasure to record thanks and gratitude to the people involved.

Firstly, we thank , for her continuous support in the assignment.

She was always there to listen and to give advice. She is responsible for involving us in the

project on recreational THEME RESTAURANT based on the traditional village theme. She

showed us different ways to approach a problem and the need to be persistent to accomplish any

goal. Without her encouragement and constant guidance we could not able to finish the

assignment. She was always there to meet and talk about any query.

Last, but not least, we would like to thank all group members who support us throughout the

assignment.

Thank you!

Table of ContentsExecutive Summary ....................................................................................................................................... 4


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SITUATION ANALYSIS .................................................................................................................................... 5

Market Analysis ............................................................................................................................................. 6

SWOT ANALYSIS ............................................................................................................................................ 6

COMPETITION ............................................................................................................................................... 8

PRODUCT/SERVICE OFFERINGS .................................................................................................................... 8

KEYS TO SUCCESS ........................................................................................................................... 9

Objectives ........................................................................................................................................... 10

Mission................................................................................................................................................ 10

Marketing Mix ............................................................................................................................................. 10

Market Segmentation ................................................................................................................................. 12

TARGETING.................................................................................................................................................. 13

POSITIONING ............................................................................................................................................... 13

Market Research Summary ......................................................................................................................... 13

Web Plan Summary ..................................................................................................................................... 14

Controls ....................................................................................................................................................... 15

Financial objectives ..................................................................................................................................... 19

Financial Plan .............................................................................................................................................. 19


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Executive Summary

This restaurant business plan is for Regal Restaurant, a new medium-sized restaurant located in a

trendy location of Lucknow i.e Gomti Nagar. Regal's emphasis will be on organic and creative

ethnic food with a theme based on the traditional village culture to attract the residents and

tourists in lucknow . An emphasis on organic ingredients is based on Regal's dedication to

sustainable development. Additionally, the restaurant would be looking a typical village wherein

the whole ambience of restaurant would be like a village. At Regals we would value a peaceful

co-existence promoted by our promoters. This concept of peaceful co-existence and unity in all

diversity would be conspicuously exposed and depicted in the paintings, sculptures and artifices

such as pottery, handicraft, etc. Regal procures local food when possible, reducing their

dependence on fossil fuels used for transportation. The dcor in the restaurant is a visual feast of

handy work created on various types of cloth, where the women have played a vital role. From

the puppets to dolls on horses, thatched huts, rolled velvet menus, regional fare offered in a

typical styled bucket and woks are just few exemplary items on display here.

Services

Regal offers the people of Lucknow a trendy, fun place to have great food in a social

environment. Our chefs have a large repertoire of ethnic ingredients and recipes. Regal forecasts

that the majority of purchases will be from the chef's recommendations. Ethnic recipes will be

used to provide the customers with a diverse, unusual menu. Our Chefs will also be emphasizing

healthy dishes, recognizing the trend within the restaurant industry for the demand for healthy

cuisine.

Customers

Regal believes that the market can be segmented into four distinct groups that it aims to target.

The first group is the lonely rich people. The second group that will be targeted is young happy

customers which are growing at an annual rate of 8% with 150,000 potential customers. The

third group is rich hippies who naturally desire organic foods as well as ethnic cuisine. The last

group which is particularly interested in the menu's healthy offerings is dieting women whose

numbers are increasing in the Lucknow area.


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Management

Regal has assembled a strong management team. Arvind Singh will be the general manager.

Arvind has extensive management experience of organizations ranging from six to 45 people.

Jatin Bisht will be responsible for all of the finance and accounting functions. Jatin has seven

years experience as a CPA. Jatin's financial control skills will be invaluable in keeping Regal on

track and profitable. Lastly, Regal has chef Mario Lango who will be responsible for the back-

end production of the venture. Chef Mario has over 12 years of experience and is a published,

visible fixture in the community.

Most important to Regals is the financial success which will be achieved through strict financial

controls. Additionally, success will be ensured by offering a high-quality service and extremely

clean, non-greasy food with interesting twists. Regal does plan to raise menu rates as the

restaurant gets more and more crowded, and to make sure that they are charging a premium for

the feeling of being in the "in crowd."

The market and financial analyses indicate that with a start-up expenditure of Rs

7332000, Regal can generate over Rs 18980000 in sales by year one, Rs 29380000 in sales by

the end of year two and produce net profits of over 7.5% on sales by the end of year

three. Profitability will be reached by year two.

SITUATION ANALYSIS

Market Summary

Because of the founders' connections within the very Gomti Nagar area of Lucknow, we have an

excellent feel for the area and its core group of customers. They will all share something alike,

which is a feeling of being in the "in crowd" and having "gotten it" in life. Although the crew

will be different and not connect with each other in each segment, each segment is

complementary to the others. We do plan to raise menu rates as the restaurant gets more and

more crowded, and to make sure we are charging a premium for the feeling of being in the "in

crowd."


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Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential

Customers Growth CAG

Lonely Rich 10% 400,000 440,000 484,000 532,400 585,640 10.00

Young Happy

Couples 8% 150,000 162,000 174,960 188,957 204,074 8.00%

Rich Hippies 6% 250,000 265,000 280,900 297,754 315,619 6.00%

Dieting

Women 7% 350,000 374,500 400,715 428,765 458,779 7.00%

Other 5% 50,000 52,500 55,125 57,881 60,775 5.00%

Total 7.87% 1,200,000 1,294,000 1,395,700 1,505,757 1,624,887 7.87%

SWOT ANALYSIS

The strengths, weaknesses, opportunities, and threats of the organic restaurant based on a

traditional village theme are listed below along with their weighted impact on the mission. The

strengths of this restaurant come from a combination of the menu and the building itself. By

offering a variety of cuisines Regal can appeal to multiple tastes and bring in more customers.

Not only is the variety of the menu a notable strength, but the nutritional value of these items isas well. In fact, it is believed to be the reason people will come to the restaurant. The building

itself has been designed to provide a comfortable, inviting feel. People can come and not only

enjoy a great meal, but a great atmosphere as well. A key to the success of any business is the

quality of service provided, and the village theme adopted by the restaurant. At Regal all

employees will be experienced with customer service and share a passion for the food they are


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serving. This quality service will provide an enjoyable experience for any customer and will

keep them coming back.

The weaknesses of this business rest in the facts that this is a brand new, unknown

business and that organic food can be quite expensive when compared to its conventional

counterpart. Another weakness that could be noticed is that people specially the youngsters

might not be attracted to come to a restaurant based on a village theme. These weaknesses can be

overcome, but the key to achieving this lies in the marketing of the restaurant. A new business

must initially build a public buzz and make a good amount of positive information available. The

restaurant will build this buzz by marketing through social media, flyers posted around

Lucknow, and other public ads. The higher price of organic food is associated with its increased

nutritional value and the ambience i.e. a typical village style restaurant, if this can be considered

reasonable by consumers than this weakness can be overcome. As a new business, Regal

must also overcome its initial startup debt and limited supply of funds. These will likely only be

weaknesses, obstacles to success, during the first year of operations.

Various opportunities exist within Lucknow that can make Regal a successful restaurant. The

numerous age groups supply a variety of potential clientele. There are also many demographics

that exist within these groups, the most important being the student population of Lucknow. The

largest opportunity for success lies in the growing health conscious attitude of people of

Lucknow, which continues to grow as a result of obesity statistics and television shows, such as

The Biggest Loser. Thebuildings location in a high traffic, both pedestrian and vehicular, area

is an opportunity within itself, as it will give the business constant public exposure. Individuals

who are not members of the sought after age demographics may provide business out of simple

curiosity and walk-ins. People who want to spend their time in a peaceful yet fun filled

environment would be attracted to visit this restaurant as now a days people have a hectic

schedule in city life. Regal will provide a opportunity to taste as well as feel the ambience

While there are only a few threats to the success of Regal, they must all be handled


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strategically or this business could fail. Lucknow is populated by many small businesses,

especially when it comes to restaurants. The main competitors to Regal out of all Lucknow

restaurants are Subway and Mcdonalds. Both restaurants are health oriented and serve

food created from similar ingredients. Regal must work to differentiate itself from these

restaurants in order to become a thriving business.

COMPETITION

In a generic sense, all the restaurants in Lucknow and nearby areas are Regals competitors.

However, in more specific terms, restaurants like Subway, Mcdonalds, KFC, Pizza port, Cabana

China Court, Happy Hot and Cool, Ranjana restaurant, Sai The Restaurant, Sanborn,Aryans, and

other restaurants focused on healthy and quality food are its major competitors.

PRODUCT/SERVICE OFFERINGS

The combination of organic products, the atmosphere, and the environment are what

make this restaurant stand out among its competitors. Regal, as previously mentioned,

provides freshly cooked meals and blended smoothies from organic ingredients. The manager of

New Frontiers Marketplace, a local organic grocery store provided guidance to the organic food

distributor UNFI, United Natural Foods, Inc. UNFI is the leading independent national

distributor of natural, organic and specialty foods in India. The product selection

includes a broad array of natural and organic groceries, frozen, and perishable foods. This

distributor, the New Frontiers Marketplace, and the Cal Poly Organic Farm provides Regal

with every ingredient from herbs and spices to fruit, vegetables, and proteins. Apart from it we

also provide :


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Catering services- We will also provide catering services as per the requirements of ourclients. Whatever be the occasion, like birthday, wedding, anniversary or cocktail parties,

we will offer the best food with a unique style to fulfil various requirements of your

client. Economical pricing and healthy food will be one of our Point of Differences. We

will also offer birthday party catering, wedding party catering, theme party catering,

cocktail party catering to name a few. We will make sure that we don't bother you for

each and every minor detail. As we know and will try to handle every little thing related

to this big event in your life.

Free home delivery- We will also provide free home delivery to our customers. It alsodepends on the order amount of the customers and the distance between our restaurant

and the customers house.

We also organise kitty parties, birthday parties, ring ceremonies ,etc in our restaurant.

DISTRIBUTION

Our restaurant services will be distributed through a number of channels which would

help the target audience in getting what they desire in a better manner. Our website

regalrestaurant.com would provide our customers an easy access to place there order and

get them at their door step within few time. Through our efficient and effective

distribution network we would ensure timely delivery of orders to our customers.

KEYS TO SUCCESS

Based on the assessment of past successes and failures in this domain and of its future

requirements, the key success factors in this market have been identified as robust, relevant, and

contemporary content; credibility/reputation of the delivery team; visibility; flexibility to

accommodate the uncertainty of small developmental organizations; and responsiveness to client

requirements.

The keys to success in achieving our goals are:

Product quality. Not only great food but great service. Managing finances to enable new locations to open at targeted intervals.


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Controlling costs at all times without exception. Instituting management controls to insure replicability of operations over multiple locations. This

applies equally to product control and to financial control.

The creation of a unique, innovative, entertaining, mid-scale atmosphere that will differentiate usfrom the competition.

Hiring the best people available, training, motivating and encouraging them, and therebyretaining the friendliest, most efficient staff possible.

MARKETING STRATEGIES

Objectives

1. Sales of Rs. 18200000 the first year, more than half a million the second.2. Personnel costs less than Rs. 15600000 the first year, less than Rs. 20800000 the second year.3. Profitable in year two, better than 7.5% profits on sales by year three.

Mission

Regal Restaurant is a great place to eat, combining an intriguing atmosphere with excellent,

interesting food that is also very good for the people who eat there. We want fair profit for the

owners, and a rewarding place to work for the employees.

Marketing Mix

For the purposes of increasing business in a restaurant...

Product: The food is crucial. Quality assurance in the food service industry is very important to

the health of the business. If the product (menu) can be differentiated amongst competitors and

stand out with a unique value to customers, it'll work out well for the restaurant. We will add our

dishes according to different states as we will have diversified customers across different states

of the nation. A special attention will be given on the presentation and quality of service

provided to the customers like: Dosa will be served on the banana leaf.


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Price: Pricing strategies need to be employed effectively here. What type of name our restaurant

have? Is it a different dining experience? If there's an intangible value added in the experience of

dining here, then a premium can certainly be charged. For example, if we have the different

cuisine as another restaurant in the area along with different traditional village theme, and our

restaurant is providing entirely different experience, we can probably charge 20% more than the

restaurant that has none of that. We will have product menu starting from the price range starting

from Rs 50 thus giving the customers real value for money, giving quality food in that minimum

prices.

Place: The place, in this unique case, is the ambiance of the restaurant and the staff. How is the

food delivered to the customers? How are they being presented? What is the experience like

dining in the restaurant? All of this needs to be taken into consideration because the component

of the "PLACE" for a restaurant entails the entire process of getting the food into the customer's

mouth. That includes the experience from when they first arrive to park their cars, and beingseated promptly and offered quality service, to when the bill arrives on the table and they leave

the restaurant. The ideal place for the setup of our restaurant in Lucknow will be the area near

Gomti Nagar as it is a residential area and many restaurants are there like Aryans, Windys, Royal

cafe. Presence of these competitors will give us some kind of risk also it will fetch us

competitive advantage as we serve differentiated value to the customers by using entirely

different theme from theme.

Promotion: This is pretty self-explanatory. How is the restaurant perceived by the community?

If it's a large and happening place, how is it perceived in the greater area or even the nation? All

of this needs to be managed by effective promotions. The message the restaurant sends out

(either through advertisements, press features, or word of mouth) needs to be able to generate

awareness and interest among potential customers and existing customers alike.

Our Advertising Plan and media schedule call for targeting customers directly through local

publications aimed at , respectively, singles, couples, and destination customers. We recognizes

the key to success at this time of initial opening is extensive media promotion. This must be done

aggressively in order to accomplish our service goals. A healthy budget is allocated for the first

year. A primary part of the budget is allocated to create the media and customer buzz for the

month prior to opening and the next three months after the grand opening.

Publicity Strategy:

Regal restaurant will focus on the following publicity strategies:


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1. Press Release/Grand Opening2. Print Ads: magazines, newspapers.3. Radio Ads4. Internet ( Web Plan discussed later)

Market Segmentation

The Lonely Rich

Most of the lonely rich are tech workers these days, and most of those tech workers are Internetworkers. Their life has become their website servers and code they write, and the people whohelp them to make the decisions in that world. They hang out with each other, but desperatelywant to get away from it and use the money they are racking up. Because this wealth has comefairly easily for them, it is particularly easy to separate them from their money again - they spendthe most on drinks, appetizers and tips.

Young Happy Couples

The restaurant will have an atmosphere that encourages people to bring dates and to havecouples arrive. It won't be awkward for others, and Regal does want to be a social place wherepeople meet each other and develop a network. These young couples are generally verysuccessful but balanced and won't be spending as much on drinks.

The Rich HippiesThe rich hippies in Lucknow are a massive group with tremendous influence over the city'sgovernment and private enterprise. They wear tie-die but drive BMWs and crave the feeling ofbeing in a social circle that is changing the world - even if in different ways than in their glorydays. We will cater to their ecological ideology and contribute to charities to help them part withmore of their money.

Dieting WomenThe organic food menu will always have a line of extremely delicious very low-fat meals. Regalwill have tables of women meeting like they do in shows like Sex and the City, to discuss alltypes of matters while feeling good about the food they eat.

DIETING MENThe organic food menu will always attract the health freak men with the extremely deliciousvery low fat meals. Gym goers, Sport players would see Regal as their dining paradise wherethey could eat whatever they want without concerning about the fat they would consume asanything and everything they eat here would be low in fat and healthy.


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TARGETING

Fueled by an increasingly health conscious and environmentally aware consumer base,

organic produce, the largest organic sector, has experienced unprecedented growth in

recent years. With growth rates averaging 15 percent over the past eight years and sales

totaling $5.4 billion in 2006, organic produce is expected to play a consistently important

role within the organic industry with sales expected to increase an average of 7 percent

between 2007 and 2010 (Nutrition Business Journal, 2007)

Regal restaurant will focus on the following markets :

Gym going people Dieting women Health conscious people Sports freak Old age people who are cautious regarding their health

POSITIONING

Regal will position itself as an ethical, competent, compassionate, healthy food provider. It

would like to be known for its:

Healthy foodGood ambience and pleasant atmosphere

Integrity

Reliability and responsiveness as a business unit.

Market Research Summary

Instead of building a business around a preconceived concept, we conducted market research andbuilt a concept around our consumers. Our market analysis identified the following key drivers

as areas of opportunity to provide service to restaurant customers:

Portion Selection:Nearly 95% of our surveyed focus group endorsed having a choice of

different size portions. This statistic is in line with findings reported by the Survey. Our


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restaurant concept is built to offer different-sized portions with a touch of village type

atmosphere which is different in its class. Our customers want the option to choose what satisfies

their appetite and we serve them what they want.

Menu Variety: Ethnic restaurants are increasing in country. The surveys of international

cookbooks, food magazines, TV cooking shows and imported goods offers ample evidence that

India, as a whole, is currently on an international tasting spree. In fact, eating places that identify

themselves as ethnic establishments numbered nearly 2800,000 in 2010 and recorded sales of Rs

30.5 billion. Our research results do not identify any single ethnic style of restaurant as desired,

but rather suggest that incorporating strong multi-ethnic influences in the menu selection will be

popular. Again, variety is the underlying element for this concept. We will provide different

types of cuisines in our menu to serve different type of customers from different states under a

single roof.

The Dining Experience: Customer satisfaction with food and service has been and continues to

be of utmost importance, but our findings indicate that the dcor, lighting, bar, and other options

to improve the dining experience are also factors in customer decisions. Our restaurant takes all

these factors in consideration for the design of this ethnic restaurant delivering the customers the

feel of ethnicity with the quality they want, this differentiate us with others. The anmbience will

follow the village culture. For ex. cutlery used will be of brass giving the feel of ethnicity.

Different dishes will be served in the handi and taditional bowls and plates. The overall outlook

of the staff serving the food will be traditional i.e. their outfits. The lighting effects will also beaccording to the village theme like use of kerosene lanterns, use of candels for decoration.

Reasonable Prices: This was no surprise given the economic tide. Although the restaurant

industry as a whole has seen growth, customers are demanding value for their dining rupee.

Menu is priced at a mid-tier level, with no dish over 500 Rs. In addition we have an extended

deserts and Appetizer selection priced between RS 100Rs 249, allowing budget dining in a

full-service restaurant.

Web Plan Summary

Restaurant will have a dedicated website. It will be the virtual business card and portfolio for the

company, simple, contemporary and well designed. Our site will offer our menus, prices, reviews

and happenings at our restaurant. We will also have a monthly review about what did happen at

our place to get new customers interested in our restaurant.


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Our website will be used to try out new offers, starting with an on-line order feature on Sunday ,

and expanding if the concept gains favor with our customers. A customer will be able to order a

selection for pickup using a credit card, debit cards, netbanking. Selections will be based on our

pre-packaged meals available during the sunday. This is also a potential for customers needing

catering facility from us.

The website will include email capabilities and online reservations and special events scheduling

too for the customers requiring this facility from us.

We can feature our restaurant at daily deal websites like:

1. Snapdeal.com2. Groupon.com3. Khojguru.com

Offering deals and discounts for customers which will give us publicity as well as help us

gaining new customers.

Controls

1. Client feedback And Client retentionRetain More Customers, Gain Piece of Mind

Its a fact. 80% off all dissatisfied customers can be reclaimed, if you address their issues quickly

and professionally.

Our unique customer feedback request system will allow customers to tell you how they want

to be responded to and to what degree of urgency their issue is.

1.Custom Designed Comment Cards

We will design and print custom comment cards with the questions that customer choose. All

comment cards will be designed with our restaurant's theme i.e village theme in mind.

2.Use technology to gather feedback and improve the business in real time:

The restaurant will have its page on Facebook to encourage fans to submit innovative ideas. ThisFacebook page will have an Ideas section where customers can submit any ideas they have for

the restaurant. There will be a Projects section, where the company asks fans for opinions on

specific items

3.Brief survey online or by phone :


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At the bottom of restaurant receipts there will be an invitation to complete a brief survey online

or by phone. Customers who do receive a validation code for a free custard (kheer) on their next

visit.

4.Call-back requests:

We will also have call- back request. So an actionable item would be to, within 24 hours, call

back a guest that had a poor experience and wanted to make it right. Thats very impressive to

our guest, for somebody to call them back and utilize this information in real time.

Responding to negative feedback immediately like this can improve the chances of retaining the

customer. We will look at it daily and determine actionable items and fix any problems

Through modern technologies like social media and various POS tools, operators can access

immediate feedback on attributes like individual store cleanliness, menu options, speed of

service, and food qualityfeedback that comes directly from a customer motivated to share their

experiences. This information can be used to measure store problems, trends, and guest loyalty.

Some new technology is even helping operators test major brand changes like menuboards,

pricing, and promotions.

Implementation Milestones

The following milestones identify the key marketing programs. It is important to accomplish

each one on time, and on budget.

Milestones

Advertising Start Date End Date Budget Manager Department

Marketing plan

completion1/1/2014 2/1/2014 $0 Arvind Department

Banner ad campaign #1 2/1/2014 4/1/2014 25000 Arvind Department

Total Advertising

Budget 25000


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PR Start Date End Date Budget Manager Department

Other $0

Other $0

Total PR Budget $0

Direct Marketing Start Date End Date Budget Manager Department

Direct mail campaign #1 2/1/2014 4/1/2014 5000 Arvind Department

Insert campaign #1 2/1/2014 4/1/2014 5000 Arvind Department

Direct mail campaign #2 10/1/2014 1/1/2014 7000 Arvind Department

Insert campaign #2 10/1/2014 1/1/2014 7000 Arvind Department

Total Direct Marketing

Budget24000

Web Development Start Date End Date Budget Manager Department

Name me 3000

Other $0

Total Web Development

Budget3000

Marketing Organization

Arvind Singh will be the general manager. Jatin Bisht will be responsible for all of the finance

and accounting functions. , Regal has chef Mario Lango who will be responsible for the back-

end production of the venture.There will be 8 waiters working in the regal.

Contingency Planning

Difficulties and risks:

1.Inadequate Capital

Many new restaurant owners set out with a solid business plan but lack adequate funding. They

can greatly underestimate how much it costs to not just open a restaurant but to keep it running


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during the first few crucial months and years. To decrease our risk, we will plan to have several

months of funding to cover the costs of salaries, food and bills. It can take a while to simply

break even with a new restaurant, much less make a profit.

2.Demanding Workload

From the business planning stage to opening and running the restaurant, we will work overtime

hours. The work you will be doing may not be the type to which you're accustomed. For

example, while you may be adept at accounting or hiring, you'll likely need to perform a wide

range of duties, from cleaning to establishing relationships with food and service providers.

Some of the 60 percent failure rate can be attributed to not being able to keep up with the

demands of the industry. Although there is no way around the amount of work involved, having

business partners to share the load helps, as does having family support.

3.Location

Location might appear to be one of the most important ingredients to success. While location is

important, it can also work against us. Choosing a location that is very popular for restaurants

means the rent will likely be higher and the competition stiffer

4.Food Safety Concerns

Food poisoning is a major cause of concern for restaurant owners. Restaurant personnel are

trained in food safety, but may not take food safety concerns seriously. Even the safest

restaurants can have problems with food borne illness due to previously contaminated food.

Fire Safety

Restaurant cooking carries a big risk of fire. Restaurants do a lot of cooking using higher

temperatures. When a fire does happen, the risks are greater because the restaurant is likely filled

with diners. Fortunately, most kitchen staff are trained and experienced in putting out fires and

restaurants are generally equipped with fire safety equipment.

Frivolous Lawsuits

Frivolous lawsuits are a risk that every business faces. We can be sued for burns caused by

coffee that's "too hot" or a mugging that occurs in a poorly lit parking lot. We can be held liable

for the poor judgment of your employees and in some cases the actions of your customers. Evenif our business and its employees are completely free of all wrongdoing, we're on the hook for

expensive legal fees. A comprehensive insurance package can alleviate many of these risks to

your restaurant.

Worst case risks may include:

Determining that the business cannot support itself on an ongoing basis.


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Having to liquidate equipment or intellectual property to cover liabilities. Recall of bank loans due to default in payments.

Financial objectives

Annual organic growth in revenue of at least 10%.

Growth of the company, with higher ROI

Return on Sales (ROS) of more than 10%.

Return on investment (ROI) inclusive of goodwill of more than 17.5%.

Become a zero debt institution in about five years. Payment terms and stock levels of each operation in line with the market,

taking account of local variations.

A healthy free cash flow given the organic growth achieved.

Solvency ratio not below 30%.

Interest-bearing debt/EBITDA of lower than 3.0.

Dividend distribution of 30% of the net profit, unless dictated otherwise by

intended long-term investments.

Financial Plan

Restaurant financial model is based on a business concept to "Plan for the Worst, but Manage

for the Best." We have approached the financial plan as follows:

The First Year projections anticipates a below average sales volume, below average seat turn,

and above average food/beverage cost. This position will help us ensure sufficient financial

planning to accommodate a reasonable ramp-up period, and business success, also ensuring that

we do not enter this venture under-capitalized.

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