PepperJacks Sports Bar

January 2007

This Business Plan (copy number 1) contains proprietary and confidential information belonging exclusively to
Faraz Haider Steven John

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2007

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Contents
Executive Summary .......................................................... 3 Owner Credentials4 Description of the Business............................................. 5 Industry Overview ............................................................. 7 Marketing Strategy ........................................................... .9 Personnel Responsibilities ............................................ 11 Sample Pictures for Reference ...................................... 12

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Executive Summary
This business proposal describes the plans for opening a restaurant to be called PepperJacks, which will be located in the Clifton / Defence Area of Karachi. The objective of this proposal is to request funds for the initial investment (see Page 2 of PDF file All Costs for figures). PepperJacks will fill a unique niche in its market. Despite the presence of a sufficient number of restaurants (ranging from casual to fast food to fine dining), there is currently no dedicated Sports Bar in the city for people to enjoy good food in a casual atmosphere, while watching their favourite sports on large screen TVs. PepperJacks will fill this niche by being a dedicated Sports Bar as opposed to standard restaurants which hire projectors during major sports events in order to increase traffic. It will be based on prevailing sports bar concepts which are very popular in the West. PepperJacks will have plasma TVs and flat screens throughout the restaurant (hooked up to a satellite decoder) to ensure that at any given time, there is something for everyone. Sports such as cricket and soccer have an ardent viewership in this country, and with growing exposure to foreign countries and satellite TV, other sports such as wrestling, golf, Major League Baseball, NBA and NFL are rapidly gaining a following. The seasonality of all of these sports ensures that there is always something happening throughout the year. PepperJacks will enhance its reputation as the spot for Western-educated students, youngsters, corporate yuppies, and expatriates who want to view their favourite sports while enjoying a good meal at affordable prices. While it does not represent a major market, the family segment is also sizeable and will generate business for the restaurant as well. Further to its operations as a standalone sports bar, PepperJacks will also house a small area where local bands will be invited to play at in special concerts. By virtue of their personal contacts, the owners have access to the countrys top bands, and this will result in additional revenue for the restaurant. In addition, PepperJacks will also host an annual contest for eating a fixed number of the spiciest wings in the restaurant. There will be an entry fee, and winners will get their photograph put up on the Wall of Fame. Corporate sponsorship in terms of prizes for this event is possible from major sports gear companies like Nike and Adidas as well as from lifestyle brands like Motorola and Sony.
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Owner Credentials
The active owners of PepperJacks (apart from the investors) are Faraz Haider and Steven John, who will be running operations on a day-to-day basis. Faraz Haider has over 12 years of work experience in the services industry, with 7 years in Food & Beverage Operations working with international concepts such as Dunkin Donuts and TGI Fridays. In addition, he has also worked as a restaurant consultant and in airline catering. He has an MBA degree with Marketing as his major and also has 5 years of advertising and media experience. Steven John has a Food & Beverage Diploma from Dubai, and has worked in the UAE as well. Within Pakistan, his experience was as solo chef for Hotel Avari Towers in the restaurant Bake & Take, as well as in Caf Blue (where he worked as Front Operations Manager) and the hip nightclub Equinox. His total work experience is over 10 years.

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Description of the Business

With seating for 70, spread out over various tables and alongside the bar area, PepperJacks will offer the standard menu that can be found at any sports bar around the world: Wings (with choice of 5 different sauces) either plain or batter-coated Soups (limited choice) Burgers (Beef & Chicken) Chicken Strips (plain or sauced in a choice of 5 sauces like the wings) Steaks (Beef / Chicken) Sandwiches & Wraps (limited choice) Seafood items (necessary in order to have a well-rounded menu) Non-alcoholic Beer (due to local laws) Non-alcoholic cocktails and specialty drinks Desserts (limited choice) Slow barbecued Beef Ribs (Seasonal promotion) Cajun Spiced / Garlic & Herb / Sweet Smoked BBQ Sauce The choice of sauces offered as coating for wings / chicken strips will range from: 1. Sweet & Tangy BBQ 2. Lemon & Herb 3. Spicy Curry 4. Hot Sauce 5. Very Hot Sauce The atmosphere at PepperJacks will be hip, sports-oriented, and casual, with a primarily wood dcor or darker bar colouring. In addition, team shirts / colours and player posters for various sports from all over the world will be prominently displayed, as well as sports memorabilia. Wait staff will wear black pants and t-shirts either in a dark colour with the logo prominently displayed or designed to look like a referees shirt (black and white stripes). To accentuate the referee uniform, they will have blow whistles hanging around their necks, as well as shoulder pockets with notepads for taking orders. Restaurant hours will be 12:30 pm to 12 am daily on weekdays, and from 12:15 pm to 1:30 am on weekends. Hours may change if a live broadcast of a sports event is taking place.

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Restaurant Name The legal name of the restaurant is PepperJacks.

Legal Form of Business The legal form of the business is a Private Limited Company, registered in Karachi with 3 Directors (minimum legal requirement), namely Faraz Haider, Steven John and the primary investor. Short Term Goals Managements vision is to make PepperJacks a keystone of dining options in the Karachi area within the first five months of operation. The primary clientele of the business will be males, aged approximately 18 to 45, of the middle-upper and upper class, for whom eating out is an average occurrence and they are heavily into sports and other recreation.

Medium Term Goals Within 15 months of successful and profitable operations, the owners envision opening a second branch within Karachi (in the KDA / PECHS area), and also looking to expand into Islamabad and Lahore (either on their own or through franchising). Another area where the owners are looking to increase revenues (with little infrastructure cost) is to sell their proprietary wing sauces through supermarkets and from the restaurant premises to people that would want the same taste at home.

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Industry Overview
There are only about 35-40 major restaurants serving Karachis elite clientele which is estimated to be approximately 1.8 million people. On a larger level, when combined with fast food and cheaper restaurant options, the market size increases drastically to about 4 million people. Eating out is for many Pakistanis a social event, and any new restaurant, if able to maintain quality, while providing good service in a comfortable ambiance, has the strong opportunity to capture market share. The supporting PDF file Revenue Forecast + Profit & Loss contains calculations based on a medium to low volume traffic, and still shows a profit. If PepperJacks is able to capture even 1% of the entire market over the course of 1 year, the restaurant will exceed sales and profit projections in the supporting file, and will be highly profitable from day 1, ensuring quicker payback of investment amount.

Creating a Competitive Edge with Setting Over the past decade or so, one important trend has been the increased importance of design, decor and atmosphere in establishing a restaurants position within a market. In recent years, restaurant owners have spent large amounts of capital in order to create a new resource for their business: a unique, memorable dining environment that both enhances the dining experience and creates a special niche for the restaurant. Setting, mode, and ambiance are the newest area in which competitors seek to distinguish themselves. However, the primary goal of PepperJacks is to provide good food at great value for money (when compared to portion sizes, competitor prices) with excellent service. The sports bar theme will always be an added incentive, not the primary driver for traffic. Thus, even if there are no major sports events taking place, PepperJacks will still be the destination of choice for those wishing to eat out in a fun atmosphere.

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Finding Good Help, Keeping Good Help The labor pool for restaurants in general remains competitive. In most regions and settings, entry-level jobs are considered temporary work for the youth labor pool. That means that training and recruitment are critical, and will form a major part of management focus Developing employee loyalty is as important to many restaurant owners as developing customer loyalty. Strong training and retraining programs, along with employee perks, are critical to maintaining a strong staff that offers high quality service. To this end, the owners envision an incentive program that will reward employees for exceeding sales targets and generating business while keeping costs low and complaints minimal.

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Marketing Strategy
Building and Signage Given the highly visible position of our building, its exterior and sign will be critically important marketing tools. The exterior of the property will set the tone of casual/sophisticated that will help establish our niche in the local market. The signage will be highly visible to both foot and auto traffic. Property selection will also look at parking spaces, as well as proximity to retail areas which will further drive traffic. Sales Strategy We have established prices by taking into consideration the need to cover overhead while remaining competitive (even though there is no direct competition for our entire menu offering). Our pricing is slightly on the lower side when compared to prevailing prices of similar menu items at competitors. Our goal is to maintain an average of 32% cost of goods sold and to pay back 85% of our profits to the primary investor, retaining 15% for working capital purposes.

Advertising and Promotion In order to attain our initial goal of serving over 70 guests per day, we will take a two-pronged approach to advertising and promotion, targeting our two major markets. For the main market, we will have a soft launch where personal contacts, opinion leaders and various members of the press will be invited to sample the menu offering. Radio is fast becoming a popular medium for localized advertising, and with a large number of FM channels dedicated exclusively to Karachi, select programs will be used to market PepperJacks directly, as well as indirectly through radio and local music channels by offering discount coupons. In addition, a number of food guide type programs air on satellite channels locally and can be tapped on for free publicity.

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E-Mail The cheapest possible direct mail is email. We will offer our patrons the opportunity to sign up to receive emailcoupon offers by email on a monthly basis. They will also include one funny or thoughtful quote, and will be sent no more than once a month. Direct Mail After careful selection and negotiations, a deal can be signed with a major bank issuing credit cards (Citibank, Standard Chartered) to ensure discounts to cardmembers. This will also be leveraged by mailing coupons / information leaflet to card-members with their monthly bill. This activity will be done every 4 months. Detailed analysis will be carried out to measure response by customers.

Publicity Strategy After 4 months of launching full-fledged, PepperJacks will focus on the following publicity strategies: Develop an on-going relationship with editors / producers at local publications (DAWN, the News, and food magazines) as well as TV channels focusing on food (Masala TV). Develop a regular and consistent promotion program targeting both regular and occasional customer segments. Can be based on price discounts, special deals, or limited-time menu offers. Produce a complete press kit to be used as the primary public relations tool for all target media editorial contact.

Grand Opening The soft launch will be the pre-cursor to the main launch, and by inviting the press and handing out press kits, a formal Grand Opening date will be announced, by which time (Grand Launch date) the press releases etc would have been published.

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Personnel Responsibilities
Faraz Haider and Steven John, along with Assistant Manager Saghir Ahmed will share responsibility for restaurant operations as follows: In addition to the management of day to day kitchen operations, Faraz Haider will Plan, develop, and establish customer service policies and objectives; Look after Purchasing / Procurement / Menu Costing; Develop Menus; Supervise Inventories / Stock-taking / Order placing Monitor Staff and discipline / terminate if necessary Manage working capital and perform financial forecasting, including budgeting and cash flow analysis, Supervise the accountant to prepare financial analysis of operations for guidance of management, including the preparation of P&L reports which outline company's financial position in areas of income, expenses, and earnings, based on past, present and future operations In addition to the management of day to day front operations, Steven John will Handle Guest relations (including table visits, reservations) Monitor Staff and discipline / terminate if necessary Manage marketing and advertising, as well as plan promotions; Liaise with any external agencies for audits / inspections; Serve as liaison to the primary investor; Serve as liaison with board of directors. In addition to the management of day to day operations for both kitchen and bar areas, Saghir Ahmed will Manage stores and inventories; Liaise and follow-up with suppliers ; Monitor Staff; Manage rosters and staff payroll / overtime / leave; Plan and establish employee-related policies; Compile guest feedback data based on credit cards; Monitor equipment repairs and maintenance

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