Avadh Restaurant

"Beyond the boundaries of taste"

BUSINESS
PLAN
2020
John Doe
 
10200 Bolsa Ave, Westminster, CA, 92683
(650) 359-3153
[email protected]
http://www.example.com/
Information provided in this business plan is unique to this business and confidential; therefore,
anyone reading this plan agrees not to disclose any of the information in this business plan
without prior written permission of the Company

Executive Summary
Overview
Examples
Avadh

Avadh will be a quick casual dining concept that's intended to appeal first and foremost to the
millennial generation (15-35) along with the generations which follow it. Avadh will interest
Millennial since the food is clean, healthy, economical and portable. They'll have the ability to get in
touch with the Restaurant with the identical technology platforms they have learned to use in
virtually any part of their own lives. Obviously, Avadh will appeal to older generations too but make
no mistake; this idea is all about competing and top in a market that's changing extremely fast.
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Market Opportunity
Examples
Avadh

Though a Smaller portion of the general market than the fast food and casual dining sections, fast-
casual concepts are Exploding on the scene and gaining popularity every year. According to Techno
inc, the market research company, the quick-casual segment increased sales by 12 Percentage in
2014, and unit count by almost 9 percent.
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Management
Examples
Avadh

John Doe, the founder and visionary behind the Avadh notion has spent his whole career serving
excellent meals to hungry customers. He possessed 6 restaurants at San Jose before going into the
Phoenix region and producing the Avadh notion.
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Financial Projections & Funding

Avadh plans to start 4 company-owned restaurants. The first restaurant is Of this sum, $400,000 will
be supplied in the shape of equity with the remainder, $400,000 coming out of a term loan given by a
commercial lender.

Avadh plans to raise $2,000,000 in equity funding. The Restaurant Will divide this funding evenly
between both business shops. It's considered that the second, third and fourth-largest shops will use
duration centers from a commercial lender to complete the financing of those shops too. Please be
aware that the financial details of the document pertain only to the very first shop.

Once proof of concept has been attained with These shops, Avadh will proceed to a master business
plan with growth programs for other Nevada locations and Then moving to cities in other Sunbelt
states.

Year1 Year2 Year3 Year4 Year5

Revenue 812,451 999,871 1,455,145 1,985,895 2,457,878

 Year1 Year2 Year3 Year4 Year5

Cost of Sales 105,104 205,451 385,451 521,451 854,145

Employee
312,451 351,458 452,451 482,451 492,451
Expense

Operating
112,451 121,451 134,451 145,451 152,451
Expense

EBITDA 116,451 216,451 516,451 641,451 895,452

Avadh
The Restaurant Concept
Examples
Avadh
Avadh ("the Restaurant") is a brand new

 quick-
casual Asian inspired restaurant idea. It'll be perfectly positioned to benefit from the fastest-growing
segment within the foodservice business and is intended to satisfy the evolving requirements of
today's customers. The menu provides a limited choice of Americanized Asian dishes. A foundational
cube of Avadh will be its technology Platform which will be constructed to permit customers to
purchase and pay for their requests via their cellular phones or signature pad kiosks found in the
shop and so allows a quicker, more precise customer experience. It's anticipated that 65% of Avadh
orders will be consumed off-premises. Avadh's pickup system and delivery method will be next to
none.

The first place will be in San Pedro, San Jose near the ASU campus. After locations will be seen in
other San Pedro places and throughout metropolitan Phoenix. After proof of concept was attained,
the concept is going to be franchised through the Sunbelt states.

Clients will appreciate Avadh the way that they want. The Restaurant is going to be occupied and
full of high energy. The meals will Always be daring, refreshing and delicious. On Top of That, the
Whole staff will be trained to adapt the each and every patron.

The menu will be limited to approximately 30 items which will consist of new and wholesome
favorites ready to purchase from China, Japan, Korea, Thailand, the Philippians, and India. Clients
will have the ability to personalize their orders should they prefer. The menu will be made to be
portable. This very significant distinction means that pickup, catering, and delivery will be in the
center of the consumer value proposition. The drink menu could consist of wine and beer in addition
to soft drinks, tea, and coffee.
Patrons may enter a modern, bright and tidy dining area and walk to where they will place their
requests using a server or should they want, from an iPad kiosk. The kitchen will be observable so
clients can see their meals prepared from scratch. If they want they could order in their mobile
device even before going into the shop and visit their table where they'll be served. The distance will
be from 1500 to 1800 square feet and a chair between 35 and 45 diners. Patio seats will be available
in the event the space permits.
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Examples
Avadh

In targeting the millennial era category, Avadh has discovered a "technological link" needs to
happen to attract and participate in this age category as customers. That is the reason why the
Restaurant will use the most recent technologies to promote the brand, join with customers and keep
connected. Through using social networking platforms, to digital menu boards, to the improvements
in online and in-store ordering these as those listed under:

 Advanced ordering for to-go: A ordering alternative for quick pick-up empowers customers
to put an online/mobile purchase from their workplace, auto, job or home, up to five days
ahead of time, and pick up their food in a pre-determined period without waiting in line.
 Purchase from Table: An in-store dining augmentation which permits clients to set an
online/mobile arrangement from anyplace inside the Restaurant and also have the meal
delivered straight to their own table.
 Fast-lane Kiosks: can be found along with cashier channels so that wait time is significantly
decreased for all guests. The kiosk is extremely visual and contains an item builder to help
with order accuracy and personalization.
 Customized Ordering: In the Kiosks, and throughout the internet or mobile program, guests
are able to save customizations, past orders, and Additionally, when connected Into the
Avadh loyalty application along with a charge card, it produces a frictionless and quicker
Experience for consumers.

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Technology

Business Model
Examples
Avadh

The Restaurant's business model is going to be dependent upon operational competence and a
fantastic tasting, wholesome menu. The company model is persuasive for the easy reason that from
the own large, nicely equipped kitchen Avadh will prepare dishes which are available in its
restaurant, removed or delivered to be appreciated someplace else or loved in catered events like
workplace meetings and birthday celebrations. To put it differently, with the introduction of this
restaurant, Avadh allows the union of 3 factors of supply out of its only kitchen. Again, true
differentiation is that delivery of Asian food hasn't yet been done earlier in metropolitan Phoenix.
Avadh is going to be the very first.
The restaurant doesn't provide terms and so, there's no account receivable. Workers, stock and
operating expenses will be covered from the month in which they are incurred or at the month after
the month in which they're incurred, depending upon payment provisions which are supplied by
suppliers and sellers.
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Objectives
Examples
Avadh

Avadh has established the following Goals for the first twelve months of operation Following
Launching the restaurant:

 Maintain tight control of Operations, Costs, and cash flow through Meticulous management
and Automatic computer control.
 Establish an efficient, Dependable and Sustainable delivery capacity.
 Construct the brand by creating remarkable and memorable guest experiences.
 Build a client base of "regulars" that Won't let a week go by without a Minumum of One trip
to Avadh.
 Produce a VIP client database which catches Guest advice to the invitation for return visits.
 Employ a client loyalty program that Will allow Avadh to advertise directly to its target
customers.
 Focus on business and system of operations.
 Delegate responsibility to Management, keep repeating this procedure.
 Make sure that instruction is in the heart of the performance and in the Heart of their
consumer experience so that workers are going to have the ability to achieve their whole
potential.
 Supply service That's past Reproach into the surrounding community.
 Give guests with healthful, Refreshing and delectable meals.
 Develop Green initiatives such as Recyclable packs and local components whenever
possible.
 Ensure efficacy, value, and Consistency in the solution and the encounter.

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Keys to Success
Examples
Avadh

The founder considers he has the ideal mixture of experience, vision, and skill to swiftly place the
Restaurant on a quick track for profit and growth. These keys will contribute to its achievement:
  Avadh is going to be the ideal notion to fulfill a void in the shifting market that's now being
overlooked with the contest by integrating independence, technology, healthful and tasty
meals, and sustainability to a brand new and exciting idea.
 Respond to the Millennials Requirement for fresh, affordable and wholesome food with bold
tastes.
 The use of the Most Recent Technology To connect with clients.
 Find all shops in high traffic, densely populated, secure destinations for those trying to find
somewhere to eat and in the mood to invest.

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Long Term Strategy

Examples
Avadh

Avadh plans to open 3 restaurants in metropolitan Phoenix in its first 2 decades of operation. Those
restaurants will be business owned. When the outlets are open and operating profitably, Avadh will
establish a franchise plan. The plan involves developing master franchisees which will open
numerous places in particular geographic areas starting with the important Arizona markets moving
into the west and west from there. The current thought is the franchise opportunities will be given in
all countries.
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Intellectual Property
Examples
Avadh

The name, Avadh was registered with the Secretary of State of San Jose. Along with this name, a
URL was registered. It's the proprietor's intention to trademark its packaged products. All recipes
are owned and proprietary by the Restaurant.
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Sustainability
Examples
Avadh

Avadh believes in getting a positive effect on the community. The founder will take the additional
steps required to be useful, accountable neighbors by integrating sustainable practices at every
opportunity. Avadh will attain environmental sustainability through: 
  All Equipment (kitchen, A/C, Etc.. ) is top-rated for maximum energy Performance.
 All paper products and utensils are biodegradable.
 Using bicycles and other energy-efficient vehicles for deliveries.
 Whenever Possible, buying food items locally from farmers who practice good environmental
and sustainable methods.

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Sample Menu
Developing the abilities to produce and prepare an exciting menu of excellent Asian dishes comes
from traveling, tasting and experiencing Asian meals in Asia. The end result is a combination of
traditional Asian cuisine with a dab of modem gastronomy --with the new flavors of Chinese, Thai,
Vietnamese, Southeast Asian, Japanese and Indian cuisines.

Below is a sample menu dishes that Are Certain to be Contained in Avadh's menu:
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Menu Items

Appetizers

Salt & Pepper Chicken Wings Chinese Lettuce Wraps Teriyaki Beef Skewers


Soups a Salads

Pho-Viet Nam Style Beef Noodle Soup Spicy Thai Coconut Soup Asian Calamari Salad

Rice Bowls

Singapore Style Currie Lo Mein

Main Dishes
 Vindaloo Chicken Thai Fried Catfish & Chile Sauce Shrimp & Long Beans

Desserts

Double Chocolate Cookie Lychee Fruit

Beverages

Freshly Brewed Iced & Hot Tea Homemade Lemonade Bubble Tea


 Wine & Beer

Bottled Beers from Asia Select California Wines

Restaurant Operations
The effective implementation of the working standards and standards outlined in this business plan
require demonstrated support tools and skilled direction. To attain these goals, the Restaurant will
use the strategies summarized below.
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Customer Service
Examples
Avadh

The hospitality business recognizes the client support experience is the critical driver to replicate
business. The direction will Offer a superior degree of Professionalism by hiring individuals who
deliver the ideal attitude to work and teaching them the skills required to accommodate guests. The
Restaurant will keep high levels of consumer satisfaction with talented, educated and well-trained
workers that understand and implement the fundamentals of fantastic service.

Ongoing training will be provided to enable staff to perform their jobs with confidence and ability.
Employees are well-spoken, well-versed, and trained to provide friendly, prompt and professional
service to each customer. This practice teaches employees who, by producing an exceptional
customer experience, they can optimize sales and in turn - raise their own reimbursement. The team
will have the knowledge and service required to create great service occur daily, for every single
customer.

The Restaurant's service base relies on a belief that no job is more or less important compared to
another since customer perceptions are frequently formed by minor particulars with a significant
effect. By way of instance, Avadh considers that carrying an arrangement or bringing the meal
immediately sends a very clear message about how badly an institution concentrates on customer
satisfaction, and also how much gratification both employees and owners have in their own
workplace.
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Operating Policies
Examples
Avadh
The managing of Avadh is going to be contingent upon operating policies and strategies which the
founders and the staff have grown and successfully employed in other profitable restaurant projects
such as Avadh. The founders have expertise in the foodservice company and an established history of
fulfilling client expectations. The Restaurant will employ the following policies to achieve the best
productivity and gain.
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Examples
Avadh

Avadh will utilize the Most Recent technology available, Now the NEC Aloha Method to Closely
monitor and handle food and beverage use, allowing management to correctly ascertain operating
expenses and manage the loss. Manual inventories will be run on a weekly basis to confirm items on
hand and also to track daily/weekly food expenses, drink consumption, plating expenses, waste, and
breakage.
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Strict Inventory Controls

Examples
Avadh

Management will always monitor provider bids to gain the best Pricing for many foods along with
other components. Market price changes will direct buying, menu composition, and menu pricing to
guarantee the restaurant matches and exceed gain expectations.
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Purchasing Cost Controls

Examples
Avadh

Food preparation personnel will follow standardized recipes developed by the founders to control
food costs and ensure consistency. The Restaurant will offer an innovative menu with nutritious food
while achieving the greatest margin yield.
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Recipe a Portion Controls

Examples
Avadh

Menu blending enables the Restaurant to maintain a perception of affordability. This is achieved by
taking certain items and reducing the price in order to maintain interest in specific items, while
delivering higher margins on others, therefore blending costs.
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Menu Blending
Examples
Avadh

Avadh will maintain a 100% compliance policy for sanitation and food handling to ensure the safety
and health of all guests and employees. The Restaurant will always comply with all city, county and
state Department of Heath sanitation and food handling standards. All employees will be certified
under applicable food safety certification requirements, and managers will complete training to
receive the nationally recognized and accredited "Sery Safe Certification."

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Sanitation a Food Handling

Operating Standards
Examples
Avadh

The founder will be responsible for hiring and training managers who, in turn will be responsible for
ensuring that the day-to-day operations will comply with the standards set by Restaurant policy.
Weekly management meetings will provide a forum to review and discuss financial and operational
performance. Key decisions related to purchasing, human resources, marketing, capital expenditures
and customer service will also be addressed.

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Management's Role
Examples
Avadh

Avadh will utilize an integrated information system to manage the flow of information within each of
the future restaurants and the home office. This system will include a point-of-sale local area
network that helps facilitate the operations of the restaurant by recording sales transactions and
printing orders in the appropriate locations within the restaurant as well as facilitating online and
mobile ordering. Additionally, the point-of¬sale system will be utilized to authorize, batch and
transmit credit card transactions, to record employee time clock information, to schedule labor and
to produce a variety of management reports. Select information that is captured from this system will
be transmitted to the home office on a daily basis, enabling senior management to continually
monitor operating results. For example, the corporate office will be notified in real-time if an order
is discounted in one of the stores. This is typically an alert to a problem. The system will likely be
NEC Aloha or Micros since they are both leaders in the industry. Delivery and catering software will
be added to best facilitate offsite deliveries. Monkey-Media is one program being reviewed to best
systemize this process.
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Software a Systems
Examples
Avadh

While the quality of the cuisine and dining experience contribute significantly to a restaurant's
profitability, it is attention to business and financial details that can transform small changes into
large returns. While all decisions are made with the customer and employee in mind, they will also
consider financial benefits and consequences. Each day, key metrics related to sales, cost of sales,
labor, inventory, marketing and overhead are monitored. Trends are evaluated and constructive
actions will be taken where improvement is needed. The management team will have access to all of
the restaurant's transactions and reports that are available in its real-time POS (point of sale) and
accounting systems. Trends will be evaluated and corrective action implemented as required.

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Money a Profit Management

Examples
Avadh

The successful implementation of the culinary and dining concepts outlined within this business plan
demand excellence from each and every employee. To achieve excellence, the Restaurant will focus
on hiring, training and retaining the very best employees.
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Training
Examples
Avadh

Employees with a good attitude, a strong

work ethic, an eye for detail, and a passion for providing excellent service will be recruited. Front of
house employees will have friendly outgoing personalities and an honest desire to serve guests as a
gracious host. All staff will have a desire to learn and a passion for food preparation.
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Hiring the Best
Examples
Avadh

An ongoing program of training and education will ensure that each staff member learns and
implements Avadh's exacting standards for service and operational procedures. Staff meetings will
reinforce service standards and principles.

The Restaurant will have detailed work descriptions and training programs for each position, from
the entry-level employees to the ongoing development of managers and owners. New employees will
undergo an extensive training program. This ensures that each guest receives a quality experience
from all employees, regardless of how long they have been employed.

Avadh will also emphasize cross-training and utilization of staff to ensure flexibility across positions
and optimize scheduling situations.
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Training for Excellence

Examples
Avadh

The Restaurant embraces the concept of promoting from within. Excellence in one function typically
leads to excellence in another. There will be regular staff evaluations to ensure motivation and
address key issues.
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Retaining the Best

Examples
Avadh

Avadh s simple menu and service concept will enable Avadh to control the following key criteria:

 By executing the concept with relatively few members of staff, management costs will be
minimized.
 Labor costs should run at approximately 30% of revenues in year 1.

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Controlling Costs
Examples
Avadh

A menu that is easy to execute will minimize errors. Fewer menu items will mean reduced volumes of
perishable foods and therefore less likelihood of waste. Ordering should be quick and simple as
there are relatively few items to order. Even with the use of high-quality all-natural ingredients, the
restaurant will maintain food costs at around 28% of food-related revenues.
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Food Costs
Examples
Avadh

The Restaurant requires comparatively fewer items of equipment to run an efficient operation,
resulting in lower startup costs. This will, in turn, result in lower ongoing maintenance costs.
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Equipment Costs
Examples
Avadh

Staff turnover rates in the restaurant industry run at over 70% p.a. and fast food is even higher.
Maintaining quality standards with such high turnover rates is an ongoing challenge. Lower than
normal staff turnover due to sound management philosophy and a rewarding working environment
will help reduce training costs and enhance employee satisfaction. Due to the simplicity of the menu
and concept, pre-opening and ongoing training should be greatly reduced. Reduced staff turnover
should result in fewer errors and minimum product waste while improving customer satisfaction and
repeat business.
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Staff Turnover /Training Costs

Location

Avadh will negotiate to lease a  1600 -1800 square feet

space in San Pedro in close proximity to San Jose State University. The optimum space will have
been used as restaurant space in the past or is new construction and will be designed as a restaurant
space with the necessary, electrical, plumbing and HVAC requirements. 

The criterion for its selection of this space includes:

 Retail strip centers that combine residential, commercial, retail and office use with high
traffic and good visibility.
 Proximity to shopping, entertainment centers, and major employment bases.
 Located on major roadways with the highest traffic counts possible.
 Easy accessibility to the Restaurant along with good visibility to the street.
 Close proximity to other casual concepts preferred.

The demographic profile includes:

 Traffic Count: at least 30,000 cars per day.

 Employees at least 40,000 (3 mile Radius).
 Population at least 40,000 (3 mile radius).

The site criterion meets or exceeds:

 1,600 - 2,000 square feet.

 Seating Capacity 40-60.
 Ample on-street and off-street parking.

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Operating Details
Examples
Avadh

Avadh will be open from 11:00 am to 10:30 pm Sunday through Thursday and 11:00 am to 1:00 am
Friday and Saturday. The store will be clean, safe and well lit. Customers will be able to pay for
their orders with cash, credit card or through a mobile app.
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Industry Analysis
Industry Overview
Examples
Avadh
In 2014, restaurant industry sales reached $752.5 billion, a 4.8% increase over 2013 in current
dollars reflecting a continuing recovery in the economy. The restaurant industry is predicted to
continue to be one of the largest employers in the public sector generating approximately 12.6
million jobs. By 2020 this number is expected to grow to nearly 15 million, indicating that the
restaurant and foodservice industry will continue to thrive.

 Restaurant-industry job growth has outpaced the national economy in 12 consecutive years,
from 2001 through 2012
 75 % of adults said they are now trying to eat healthier at restaurants than they did two
years ago.
 71 % of adults said they are more likely to visit a restaurant that offers locally produced food
items.
 65% of adults say their favorite restaurant foods provide flavor and taste
sensations which cannot easily be duplicated in their home kitchen
 68% of adults said purchasing meals from restaurants, take-out, and home delivery makes it
easier for families with children to manage their day-to-day lives.

Source: The National Food Association Industry Forecast

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Examples
Avadh

According to IBIS World, the source from which this analysis has been prepared, "The extent to
which a population dines out can be projected based on age and income level. Households that make
less than $50,000 per year spend 36.6% of their food budget on dining out. Households that make
between $50,000 and $75,000 per year spend 42.4% of their food budget on dining out, while
households that pull in more than $75,000 per year spend 45.7% of their food budget on dining out.
For households making less than $50,000 per year, that amounts to an average of $1,626 per year,
while those making between $50,000 and $75,000 dollars a year spend an average of $2,711 a year
dining out. Households making more than $75,000 per year spend an average of $4,490 per year
dining out.

Broken down by age, people ages 18 to 25 spend 46.4% of their food budget dining out, an average
of $2,351 per year. People 25 to 30 years old spend 44.8% of their budget (or an average of $2,668
per year) dining out. Those 35 to 50 years old tend to spend 42.3% of their food budget dining out,
which amounts to an average of $3,165 per year. People 50 to 65 years old spend 42.8% of their
budget dining out (an annual average of $2,991), while those 65 or older spend 37.0% of their food
budget dining out (an average of $1,926 per year).

Source: IBIS World
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Restaurant Demographics
Examples
Avadh
As will be discussed in section 8.1 of this document, Millennials will be the Restaurant's target
customers. Researchers believe that the millennial generation is made up of people who were born
from the early 1980s to the early 2000s. Industry experts project Millennials to become the strongest
brand and consumer influencers since the Baby Boomer generation and, according to the United
Nation's Department of Economic and Social Affairs, by the year 2030, Millennials will outnumber
non-Millennials by 22 million. Currently, Millennials represent a group of 86 million people, 7%
larger than the baby boom generation. Millennials want access to healthier, cleaner, honest food to
eat, and they want it in an environment that is affordable and convenient.

Aside from the food, Millennials also look for consistency in the overall dining experience. In other
words, says Adam Baker, president of Colorado-based Lark-burger, they want to know what to
expect. From a design perspective, Barker calls this "escalator branding," or painting a clear
picture of what the dining experience will be like before a customer even enters the door. Splitting up
space into clearly defined fast ordering, full-service seating, retail or takeout section or counter
spaces will clearly indicate multiple dining options. "You don't want someone walking into a
restaurant and its wide open and you don't know which direction you're supposed to go," Barker
says.

Customization and high-quality ingredients are extremely important to Millennials, at both quick-
serve and full-serve eateries. And that trend continues even with takeout and delivery, according to
Technomic's generational report. Millennials say taste, accuracy, and speed of service are
imperative. In addition, the report found, younger Millennials' fast-paced lifestyles and emphasis on
convenience have led them to use delivery more than their older peers.

"More restaurants are using online ordering, and I think we will only see that continue,"
Technomic's Matorin says. "Some restaurants have tablets and even tables with touch screen
ordering. In the next couple of years, I could see people coming in, placing their order on a touch
screen and sitting down to wait for their food. Maybe there's a greeter or someone to bring the
drinks."

According to Bruce Horowitz in the May 18, 2014 issue of USA Today, experts say that to attract
Millennials, restaurants must:

 Think healthier
 Offer customized products
 Speed up the service
 Fix the look
 Embrace change
 Cut the prices
 Innovate

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Millennials

Fast Casual Ming

Examples
Avadh

The restaurant industry has historically been measured in three categories; fast food, casual dining,
and fine dining. This changed in the 1990s with the addition of the Fast Casual classification.
Typically restaurants in this category do not offer full table service but offer a higher quality of food
and atmosphere than traditional fast food. Customers order at the counter but typically will get real
plates and cutlery, and can often see their order prepared. Food preparation and the use of high-
quality ingredients take a higher priority in fast-casual restaurants. One of the fastest-growing
concepts of the restaurant industry over the last decade and in 2014 has been the fast-casual
restaurant.

Though still a smaller part of the overall market than both the fast food and casual dining segments,
fast-casual concepts are exploding onto the scene and gaining popularity each year. According to
Technomic, the market research firm, the fast-casual segment grew sales by 11 percent in 2013, and
unit count by nearly 8 percent. The largest fast-casual concepts - Panera, Chipode and Panda
Express - each generated strong sales gains as well, of 12,17 and 11 percent, respectively.
Technomic's report said drivers of fast casual's growth include "better-than-quick-service food,"
ambiance and "fresh, made for you" appeal. 

Segment(In Billions) 2010 2011 2012 2013 2014 %Chg

Fine Dining        $2.5 $2.8 52.7 53.2 $0.5 15.6%

Midscale                       $14.7 $14.2 $13.9 $14.0 50.1 0.7%

Casual Dining         $49.2 $50.6 $52.7 $54.0 51.3 2.4%

Fast Casual        $17.9 $19.8 $24.2 $27.1 $2.9 10.7%

Quick Service     $149.7 $154.3 5160.6 $166.1 $5.5 3.3%

Totals           $234.0$241.7 $254.1 $264.4 $10.3 3.9%

FC percent of Total   Dining                7.65% 8.19% 9.52% 10.25%

The table above was prepared by Technomic. It confirms that fast-casual increased by almost 11%
in 2013 over 2012. It also confirms that fast casual is growing year over year as a percentage of
total dining.

And unlike traditional fast-food restaurants, the market for fast-casual is far less saturated, and
franchise opportunities abound for the entrepreneur. "This category has essentially blown through
the recession without skipping a beat," said Technomic executive vice president Darren Tristano.
'There's no end in sight to their growth. They've delivered on consumers' value expectations far more
than most fast-food places. The evolution is happening as the rest of the restaurant industry fights for
a shrinking customer base amid a slow economic recovery and high food prices.

So what about fast-casual restaurants make them so appealing to consumers? The concept marries
the need to eat on the run to the much newer consumer demand for healthier options. Food quality
and preparation at traditional fast-food restaurants have come under increasing scrutiny in recent
years and been shown to have negative health consequences, coincident with a general change in
consumer attitudes towards a healthy diet and lifestyle.

Source: https://www.technomic.com/
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Denning Fast Casual

Fast Casual Asian Food

Examples
Avadh

"The broader palates of younger Americans are looking for bolder and spicier flavors, and
something different," says Darren Tristano, executive vice president of Technomic, a Chicago-based
restaurant-research firm.

Asian national cuisines new to mainstream American palates are emerging at the heart of the U.S.
quick-serve industry lately, acquainting the world's biggest non-Asian market with zesty new
influences ranging from Filipino to Indonesian to Malaysian. At the same time, fresh concepts are
extending the playbook of long-popular ethnic cuisines including Korean, Japanese, Indian, and
Chinese.

Although Asian concepts have long been full-service restaurants, brands are turning to the quick-
service segment to deliver the new tastes consumers are craving.

And Asian food has already crossed the threshold of acceptable pickup or delivery food.

Tedmomic, an industry-leading research firm, believes the fast-casual Asian cluster is still relatively
untapped on a national level and has the potential for major growth over the next decade. The Asian
category only covers 1.7% of the total sales of the top 500 chains. In fact, Mexican and Asian fare is
becoming the new comfort foods, taking the place of — or in addition to — Italian and American
favorites.
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Examples
Avadh

The Restaurant's first store and in all likelihood all of its company owned stores will be in or near
Tempe, Arizona. Tempe is located in metropolitan Phoenix and is home to Arizona State University,
the largest university in the United States by enrollment.
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Tempe Arizona
Examples
Avadh

http://quickfacts.census.gov/qfd/sates/04/0473000.html

http://www.citv-data.comicitv/Tempe-Arizonaltml
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Select Demographic Data

Competition
Competitive Landscape
Examples
Avadh

The Restaurant recognizes that in the Phoenix metropolitan area there are many quick serves, fast-
casual, and casual dining restaurants and other retailers where consumers can purchase food at an
affordable price and consume the food on the premises or take it away to consume elsewhere. Many
of these competitors have greater financial, marketing, personnel, and other resources than Avadh
all of these stores are competitors. For purposes of this document, the Restaurant will consider that
its direct competitors are fast-casual restaurants that have locations in Tempe.
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Direct Competitors
Examples
Avadh

Pei Wei is a chain of quick-casual restaurants that serve freshly prepared, wok-
seared, contemporary pan-Asian cuisine in a relaxed, warm environment with friendly, attentive
counter service as well as the flexibility, speed, and convenience of takeaway service.

Panda Express is a California based chain of over 1600 stores located in 53 states and Puerto Rico.
Its locations are primarily in neighborhood shopping centers and regional malls that offer great
traffic and ample parking.
Chipotle Mexican Grill with 1,600 restaurants competes in a category of dining now called "fast-
casual," the fastest-growing segment of the restaurant industry, where customers expect food quality
that's more in line with full-service restaurants, coupled with the speed and convenience of fast food.
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Competitive Advantages
Examples
Avadh

Although there can be no clearly defined differentiators within such a fiercely competitive business
environment, Avadh is focused on delivering an overall fresh, healthy competitive product. Key
areas for focus include:

 Avadh will combine the fresh quality food of Pei Wei and the efficiency and speed of Panda
Express.
 Unlike Pei Wei and Panda Express, Avadh will deliver.
 Avadh will compete with Panda Express by delivering fresher, healthier and better-tasting
food.
 Mashies small footprint allows it to compete with Pd Wei on the basis of lower operating
costs.
 Relaxed, comfortable atmosphere.
 Easily accessible, convenient location.
 Connect with the customer through technology.
 Superior plan and execution.
 Constant review of market trends.

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Marketing
Target Market Overview
Examples
Avadh

The Restaurant's target customers are first and foremost most Millennials (ages 15-35) who live,
study or work in the neighborhood. According to Nicolas Jammet, Co-founder and Co-CEO of
Sweetgreen, "they've embedded sustainability, charity, and healthy eating into their overall lifestyle.
As students, they wanted access to this healthier, cleaner, honest food to eat, and wanted it in an
environment that was affordable and convenient."

While Millennials will be the target, Avadh's marketing and operational efforts will never preclude
the older generations. Avadh will be the kind of place that attracts repeat customers. Other
characteristics that describe target customers include:

 Really likes delivery option

 Prefers "honest" food
 Want affordable food
 Environmentally aware
 Like to order & pay with phone
 Embrace speed & convenience
 Appreciates the ability to customize
 Loves ethnic foods

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Market Positioning & Brand

Examples
Avadh

Each and every activity in which the Restaurant participates will establish or reinforce its brand. In
doing so, every aspect of the Restaurant's communications with customers, employees, suppliers and
other partners will support the following branding marketing messages:

 Avadh is a brand that stands for the convergence of healthy, affordable and
delicious food while utilizing technology to connect with its customers;
 Avadh provides great tasting food that can be delivered;
 Avadh's food is fast and affordable;
 Avadh focuses on customer satisfaction.

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Marketing Strategies
Examples
Avadh

Avadh will achieve its marketing  objectives  through a

carefully conceived and aggressively implemented marketing program highlighted by the following
strategies:

 Excellent exterior signage that will attract passersby;

 An innovative, easily navigable website that will attract customers;
 Latest Social Media outlets including Facebook, Twitter, Pinterest, and Instagram will begin
before opening;
 Ongoing gorilla marketing to the entire neighborhood the week after opening;
 Implementing an online marketing strategy that exemplifies truth, relevance, humanity,
passion, originality, and elements of surprise;
 Public relations strategies that promote and create awareness of the Company;
 A policy that customer retention is just as important as new customer acquisition;
 Community outreach through local service organizations, schools, local government, civic
organizations, etc.;
 Avadh's VIP Incentive Program rewards returning customers and gives them an incentive to
want to be associated with the Restaurant;
 Create customer evangelists who will promote Avadh through word of mouth.

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Company & Management

Company
Examples
Avadh
The first Avadh and the two stores to follow will be owned by Mr. Chen and his investor group. The
legal entity is called Eat Great Enterprises LLC, an Arizona limited liability company. Mr. Chen will
be the Managing Member.
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Management Team
Examples
Avadh

Avadh is the vision of a successful businessman who brings a number of important skills and
experiences to the Company, including:

 A passion for food and for delighting customers;

 Well balanced with complementary skills;
 Flexible; able to adapt to new and different circumstances;
 Understands the importance of consistent, high-quality customer service.

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JOHN DOE

Founder & CEO  -  [email protected]

Mr. John was born and raised in Arizona. After graduating from Arizona State University, he joined
his family restaurant business and learned all aspect of the business from taking care of customers to
managing a busy kitchen. After selling the five Inchon restaurants, Mr. John decided to join his
wife's family who had earlier immigrated metropolitan Phoenix Arizona. After studying a number of
restaurant concepts, Chen created Avadh. He is driven by how the fast-casual concept seems to fit the
way Americans like to eat.
JANE DOE

Store Manager

Reporting to Mr. John, the Store Manager will be responsible for the entire store operation. In
addition to enforcing all policies of the Restaurant as outlined, the Store Manager will oversee daily
operations concentrating primarily on ensuring standards are adhered to during all times of the day.
She will be responsible for hiring, training, disciplining and terminating service and bar staff, with
assistance as needed from the founder.

She will be expected to have a complete understanding of the technology that will be an integral part
of the operation from customer orders, payments, and delivery. During meal service, the Store
Manager will be expected to control the flow of all activities overseeing, service staff and
communicating with the kitchen to ensure a smooth flow to the Restaurant and will be expected to
maintain clean and organized ordering and dining areas.

Staffing Plan
The Company aims to create a successful and rewarding work environment. It is Mr. Chen's firm
belief that employee satisfaction represents a key contribution to customer satisfaction. The
management team will consist of one General Store Manager and an Assistant Manager. They will be
paid $50,000 and $35,000 respectively. The remaining employees will be hourly. For the first year of
operation, there will be no employee benefits offered to employees. Down the road, this will be
reviewed for it is the desire of ownership to offer a benefits program that will allow Avadh to be
competitive in the workplace and take care of employees. Avadh will be staffed as follows:

Restaurant
Starting Month Count Annual Salary
Front of House

Manager 1st 2 30,000

Restaurant
Starting Month Count Annual Salary
Front of House

Serving Staff 1st 6 9,600

Bartender 3rd 1 16,000

Dish Washers 3rd 4 6,400

Restaurant
Starting Month Count Annual Salary
Back of the House

Head Cook 1st 1 24,000

Cooks 1st 4 20,000

Servents 1st 4 16,000

Cleaners 1st 3 8,000

External Issues
Examples
Avadh

There are no regulatory issues related to EPA, OSHA, IRS, or other governmental
agencies. There are no unions represented at the Restaurant and there is no pending or anticipated
litigation.
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Financial Plan
Click to Add Revenue
This is just a placeholder to add finance revenue stream.

Startup Expenditures
Examples
Avadh

The following table highlights how the startup capital will be utilized:
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Pre-Opening Cash Outlays

Buildout/Tenant Improvements

Tenant Improvements 250,000

Total Buildout/Tenant Improvements 250,000

Fixed Assets

Furniture, Fixtures, and Equipment 200,000

Total Fixed Assets 200,000

Inventory

Food 10,000

Beer, Wine, and Liquor 5,000

Pre-Opening Cash Outlays

Total Inventory 15,000

Capitalized Start-Up Expenses (Pre-Opening)

Employee Expenses 20,000

Grand Opening 5,000

Labor Recruitment 1,000

Legal Fees 5,000

Liquor License 3,500

Menus/Imprinted Materials 1,500

Miscellaneous 2,500

Other 1,500

Office Supplies 1,000

Pre-opening Advertising 15,000

Utilities 1,500
Pre-Opening Cash Outlays

Rent 15,000

Supplies 20,000

Training Dry Run COGS 2,000

Training Materials 2,000

Uniforms 1,500

Working Capital 20,000

Total Capitalized Start-Up Expenses (Pre-Opening) 118,000

Total Start-Up Costs 583,000

Revenue Assumptions
Examples
Avadh

The financial forecast assumes that Avadh will process an average of 250 customer transactions per
day, seven days a week. It further assumes that the average food purchase will be $7.00 and the
average beverage purchase will be $4.50. Lastly, prices are forecast to grow 3% per year whereas a
number of transactions are forecast to grow by 5% per year.
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Cost of Goods Sold

Examples
Avadh
The forecast assumes that food costs will run at 27% of food sales price and beverage costs will be
20% of beverage cost. A 1% factor has been forecast for comps and promotions. COGS are forecast
to increase by 3% per year.
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Operating Expense Assumptions

Examples
Avadh

The operating expenses that appear in the income statement forecast that follows are assumed to
grow by 3% per year with the exception of credit card fees which are based on gross revenue.
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Balance Sheet Assumptions

Examples
Avadh

It is assumed that there are no accounts receivable as products are paid for at the time of purchase.
Account payable are assumed to be paid for in the month in which they are incurred or in the month
following the month they are incurred depending upon timing and supplier terms. Furniture, fixtures,
and equipment are assumed to be depreciated over 72 months. Capitalized startup expenses are
amortized over 60 months.
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Bank Loan Assumptions

Examples
Avadh

A $300,000 commercial bank loan is assumed to fully amortize over a period of 72 months at an
interest rate of 4.00%
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Projected Balance Sheet

 Year1 Year2 Year3 Year4 Year5

Assets

Current Assets

Cash 91,358 247,779 410,583 579,961 756,792

Inventory 23,048 23,673 24,317 24,980 24,980

Total Current Assets 114,406 271,452 434,900 604,941 781,773

Capitalized Start-Up Expenses 94,400 70,800 47,200 23,600 (0)

Buildout, Furniture & Equipment

375,000 300,000 225,000 150,000 75000
(net)

Total Assets 583,806 642,252 707,100 778,541 856,773

Liabilities & Equity

Current Liabilities

Accounts Payable 21,990 22,649 23,329 24,029 24,750

Total Current Liabilities 21,990 22,649 23,329 24,029 24,750

Term Loan 254,856 207,872 158,974 108,084 55,121

 Year1 Year2 Year3 Year4 Year5

Total Liabilities 276,845 230,522 182,303 132,113 79,871

Members Equity

Common Stock 300,000 300,000 300,000 300,000 300,000

Retained   Earnings 6,960 111,731 224,797 346,428 476,902

Total Members' Equity 306,960 411,731 524,797 646,428 776,902

Total Liabilities & Members Equity 583,806 642,252 707,100 778,541 856,773

Projected Profit and Loss

Year1 Year2 Year3 Year4 Year5

Revenue

All Day 661,978 1,011,3971,041,739 1,072,991 1,105,181

Comps and Promotions (18,520) (110,114) (10,417) (10,730) (11,052)

Total Revenue 843,458 1.001,2831,031,322 1,062,261 1,094,111

Cost of Sales
 Year1 Year2 Year3 Year4 Year5

Food 140,021 166,221 171,208 176,344 181,634

Beer, Wine, and Liquor 66,677 79,153 81,527 83,973 86,492

Total Cost of Sales 206,697 245,374 252,735 260,317 268,127

Gross Profit 636,761 755,909 778587 801,944 826,003

Operating Expenses

Employee Expenses

Restaurant Employees 356,533 371,624 382,773 394,256 406,084

Total Salaries and Wages 356,533 371,624 382,773 394,256 406,084

Payroll Taxes and Benefits 41,001 42,737 44,019 45,339 46,700

Total Employee Expenses 397,535 414,361 426,792 439,595 452,783

Non-Employee Operating Expenses

Accounting 2,400 2,472 2,546 2,623 2,701

Advertising 6,000 6,180 6,366 6,556 6,753

 Year1 Year2 Year3 Year4 Year5

Bank Charges 360 371 382 393 405

Credit Card Fees 17,040 20,228 20,835 21,460 22,104

Dish Machine Lease 1,200 1,236 1,273 1,311 1,351

Electric 6,000 6,180 6,3E6 6,556 6,753

Gas 4,200 4,326 4,456 4,589 4,727

Health Permits 268 276 284 293 301

insurance 4.800 4,944 5,092 5,245 5,402

Office/Mist 900 927 955 983 1,013

Other Operating Expenses 2,400 2,472 2,546 2,623 2,701

Paper & Packaging 3,600 3,708 3,819 3,934 4,052

Phone/internet 3,300 3,399 3,501 3,606 3,714

POS Subscription 2,220 2,287 2,355 2,426 2,499

Rent 60,000 61,800 63,654 65,564 67,531

 Year1 Year2 Year3 Year4 Year5

Repairs and Maintenance 3,000 3,090 3,183 3,278 3,377

Trash 2,100 2,163 2,228 2,295 ;364

Uniforms 600 618 637 656 675

Water 1,500 1,545 1,591 1,639 1.688

Website 600 618 637 656 675

Total Non-Employee OpEx 122.487 128,839 132,704 136,685 140,786

EBIIDA 116,739 212,710 219,091 225,664 232,434

Interest 11,178 9,339 7,425 5,433 3,359

Amortization 23,E00 23,600 23,600 23,600 23,600

Deprecianon 75,000 75,000 75,000 75,000 75,000

Net Income (Loss) 6,960 104,771 113,066 121,631 130,474

Projected Cash Flow

 Year1 Year2 Year3 Year4 Year5

Cash Inflows

Collections of revenue 843,458 1,001,2831,031,3221,062,2611,094,129

Proceeds from sale of stock 300,000 - - - -

Proceeds from Term Loan 300,000 - - - -

Total Cash Inflows 1,443,458 1,001,2831,031,3221,062,2611,094,129

Cash Outflows

Start-up Expenses 118,000 - - - -

Payments for TI and FFE 450,000 - - - -

Payments for inventory 229,745 245,999 253,379 260,980 268,127

Payments on accounts payable 498,032 542,540 558,816 575,581 592,848

Payments of Interest - Term Loan 11,178 9,339 7,425 5,433 3,359

Payments of Principal - Term Loan 45,144 46,984 48,898 50,890 52,963

Total Cash Outflows 1,352,100 844,862 868,518 892,884 917,297

 Year1 Year2 Year3 Year4 Year5

Net Cash Flows 91,358 156,421 162,804 169,378 176,832

Cash, Beginning of Period - 91,358 247,779 410,583 579,961

Plus: Cash Inflows 1,443,458 1,001,2831,031,3221,062,2611,094,129

Less: Cash Outflows (1,352,100) (844,862) (868,518) (892,884) (917,297)

Cash, End of Period 91,358 247,779 410,523 579,961 756,792