CHIKEN & BEEF BBQ RESTAURANT

BUSINESS PLAN V.3.1

BUSINESS PLAN : REVISION V.3.1 SERIAL: 546FDG4353/05 NAME/PHONE/EMAIL

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:1

1. Executive Summary
<YOUR.RESTO> Unlike a typical BBQ Restaurant, will provide a unique combination of excellent food at value pricing. Our restaurant combines old-world charm with modern-day culinary grilled masterpieces for a truly unique dining experience. The result is a comfortable, casual atmosphere featuring scrumptious food and fun for adults and children alike! Our dedicated servers provide friendly, attentive services to ensure that customer visit with us is a pleasant one. Also,<YOUR.RESTO> will be the perfect destination for small weddings, wine dinners, cocktail parties, Christmas parties, special luncheons - in fact any occasion where quality food and service is desired. We have private, off street parking, disabled facilities, intimate heritage dining room and European style dining options. All this within a framework of our commitment to customer comfort and satisfaction. <YOUR.RESTO.NAME> critical success factors will be to identify restaurant trends and integrate them into <YOUR.RESTO.NAME> business operations, provide friendly services, continue to invest time and money in advertising and stay ahead of the "competitor curve." This business plan leads the way. It renews our vision and strategic focus: adding value to our target market segments in our local market. It also provides the stepby-step plan for improving our sales, gross margin, and profitability. 1.2 The Market y y y y $1.3 billion Restaurant-industry sales on a typical day in 2005. Nearly half percentage of table-service operators reporting that takeout represents a larger proportion of their total sales compared to two years ago. One out of three percent of consumers who have used curbside takeout at a table-service restaurant. 4 percent median pre-tax income in 2003 for full-service restaurants with average per-person checks of $15 to $24.99.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:2

PROFIT & LOSS (3 YEAR)

$350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 1 2 3 SALES Gross Margin NET PROFIT

1.2 Our Mission <YOUR.RESTO> will strive to be the premier BBQ restaurant in the local marketplace. We want our guests to have the total experience when visiting <YOUR.RESTO>. At <YOUR.RESTO>, the dcor and food & beverage presentation set the stage for a "fun" and friendly environment in which everyone enjoys interacting. Our main focus will be serving quality food at a great value. We will feature a large selection of dishes, most cooking in full view of our guests. Employee welfare will be equally important to our success. All will be treated fairly with the utmost respect. We want our employees to feel a part of the success of <YOUR.RESTO>. 1.3 Keys to Success The key to success is to meet and exceed the customer's needs in terms of quality of food and excellence of service, plus: y y y Serve nothing but the highest quality food at unbelievably prices. Controlling costs at all times, in all areas. Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff possible.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:3

2. Company Summary
The restaurant was initially formed as a sole proprietorship by <OWNER> in <DATE>. Mr. <OWNER> capitalized on the growing hospitality industry to create a niche market for its restaurant. <YOUR.RESTO> open 9:00 am to 5:00 pm Monday through Friday, 10:00 am to 4:00 pm Saturday, closed on Sunday.<YOUR.RESTO> will range in size from X?-X? square feet and will seat from 30-40 guests.

The site/building selection will be chosen based upon the following list of criteria: y y y y y y Community size minimum of 40,000 people within five miles. High visibility. Easy access to parking lot with a minimum of 20 parking spaces. Mid- to low-cost land not to exceed $X?. Heavy blue-collar worker makeup in the community. No overabundance of competition in the trade area.

All of these qualities are consistent with <YOUR.RESTO> goal of providing a top quality food, at an unbelievably low price. We want "word of mouth" to be our best form of marketing, where our guests cannot believe the value of their food experience and can't wait to tell their friends and neighbors. 2.1 Legal Status and Ownership <YOUR.COMPANY.NAME> is incorporated under the laws of the state of <YOUR.STATE>. One hundred thousand shares in the company have been issued: 60,000 are owned by <OWNER_1>; 10,000 are owned by <INVESTOR_1>; 30,000 shares are retained by the company for future distribution. Funding of the company to date has come from the personal savings of <OWNER_1> - a $00,000? loan from <OWNER> family members -- and from the income generated by sales. The company is now seeking $XX,000 from outside investors/Bank in return for 15% equity ownership. 2.1. Start-up Summary

<YOUR.RESTO> start-up expenses cover a wide range of items as shown in the following chart and table. Below is the detailed reasoning behind these estimates.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:4

START-UP SUMARY
TOTAL A PITAL & LIABILITI TOTAL I TOTAL

TMENT

ENT ASSETS

TOTAL START-UP EXPENSES 1

($30,0 ($20,0 ($10,0 00) 00) 00)

$0

$10,00 $20,00 $30,00 $40,00 0 0 0 0

y y y y

y y

Kitchen Design & Grill: will be doing the kitchen design according to our ideas and experience.(Include Design) Architectural Plans: <Design Company> has agreed to do our architectural plans. Travel/Lodging: Travel expenses for <OWNER> to monitor construction, hire, and train staff. Manuals/Handbooks/Recipes: All are estimates for typing, printing of employee training information, laminating recipes for kitchen use, and binders for all manuals. Pre-opening Labor : This will cover training of employees and management as well as cleaning and organizing the restaurant prior to opening. Building/Land/Equipment: There are two methods available for the growth of <YOUR.RESTO>. We can build from ground up or we can do conversions from existing or closed restaurants.
STARTUP_ITEM KITCHEN INVENTORY OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK ARCHITECTURE/DECORATION/REMODELING OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS) TOTAL TOTAL 9 7 47 8 4 87 YOUR BUDGET RATIO - 9 7 7 8 4 - 4 98

CD

98

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:5

 

ARCHITECTURE/DECORATION/REMODEL ING EQUIPMENT/POS/HARDWARE/SOFTWA RE/PHONES/DESK 1 MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS KITCHEN INVENTORY

$0

$1,000

$2,000

$3,000

$4,000

START-UP EXPENSES (REQUIREMENTS) BUSINESS START YEAR OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK ARCHITECTURE/DECORATION/REMODELING OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS) RENT+SECURITY DEPOSIT INSURANCE OTHER A OTHER B OTHER C OTHER D FRANCHISE FEE BUSINESS FEE TRANSFER TOTAL START-UP EXPENSES Start-up Assets Needed Cash Balance on Starting Date Start-up Inventory Other Current Assets TOTAL CURRENT ASSETS $8,700 $1,927 $1,000 $11,627 2004 $473 $1,305 $3,580 $2,143 $870 $1,500 $300 $4,100 $700 $2,500 $1,000 $0 $0 ($18,471)

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:6

   

ST

TU _ T MS

OTHERS- EGAL ( ERMITS/TRADEMARKS/CORPS)

Long-term Assets TOTAL ASSETS Total Requirements

$10,000 $21,627 $3,156

Funding & Investor INVESTOR 1 INVESTOR 2 OWNER 1 OWNER 2 BANK 1 BANK 1 TOTAL INVESTMENT $30,000 $0 $0 $0 $0 $0 $30,000

Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities CURRENT LIABILITIES $1,000 $0 $0 $1,000

Long-term Liabilities TOTAL LIABILITIES

$3,444 $3,444

LOSS AT START-UP TOTAL CAPITAL TOTAL CAPITAL & LIABILITIES

$18,471 $11,529 $14,973

3. Restaurant Services
We offers a wide variety of dining options including the Grill Room, the Main Restaurant and the outdoor garden. <YOUR.RESTO> offers a very exciting and eclectic array of innovative dishes grilled with passion and dedication by chef <OWNER>. <YOUR.RESTO> menus are based around the freshest and most interesting ingredients available. Flavors and methods from around the world are coupled with imaginative presentation and professional service to provide a wonderful experience. We striving to offer great innovative food in a relaxed and friendly atmosphere. BBQ Dishes like <DISH_1>, <DISH_2> and <DISH_3> are not to be missed by the customer.
<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:7

Also,<YOUR.RESTO> will be the perfect destination for small weddings, wine dinners, cocktail parties, Christmas parties, special luncheons - in fact any occasion where quality food and service is desired. We have private, off street parking, disabled facilities, intimate heritage dining room and European style dining options. All this within a framework of our commitment to customer comfort and satisfaction. The following listing illustrates the scrumptious selection of dishes available at our restaurant.
<INCLUDE_YOUR_SAMPLE_MENU>

3.3 Technology <YOUR.RESTO> will invest in a single high-speed computer to provide a fast and efficient connection to the Internet and also be a link to our cash registers. In the future, we will then be able to poll each restaurant nightly to our Corporate Support Center and be able to daily digest key financial information. We will also enable online ordering (using www.mrbite.com). 3.4 Fulfillment <YOUR.RESTO> is required to comply with various rules and regulations among a number of local, state, and federal agencies. Locally, the restaurant is required to maintain its business license and comply with local regulations and city codes. From a State level, the company is required to comply with all State laws concerning employment law, corporate law, and consumer products regulations. From a Federal level, the company is required to comply with additional consumer product laws, taxation, etc. <YOUR.RESTO> accounting policy follows generally accepted accounting principals. <YOUR.RESTO> financials are turned over to the CPA on a quarterly basis. <YOUR.RESTO> uses Quick Books for its accounting software; Accounting is system based on the accrual method. The fiscal year is based on year-end. Financial reporting methods include monthly, quarterly, and annual statements. An annual audit is to be performed by the firm's CPA firm in January. <YOUR.COMPANY.NAME>carries insurance for business liability, automobile, and medical coverage. Additional insurance programs such as worker's compensation and

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:8

key-man coverage will most likely be consummated by the close of the second quarter of 2005?. Management has no knowledge of pending lawsuits or threat of legal action directed at either the company or its officers.

4. Market Analysis Summary

Restaurant industry sales are expected to reach a record $476 billion in 900,000 restaurant locations in 2005, according to the National Restaurant Association's 2005 Restaurant Industry Forecast. The projected annual sales would mean a solid 4.9 percent increase over last year and a total economic impact of over $1.2 trillion, highlighting the restaurant industry's critical role as a job creator in the nation's economy. "American consumers will spend almost 47 percent of their food dollar in the restaurant community in 2005," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "The restaurant industry will serve as a driving force in our nation's economy by providing jobs to 12.2 million employees and continue providing a social oasis and convenience to communities nationwide as it posts its 14th consecutive year of real growth next year." The Forecast predicts that the U.S. restaurant industry which created, on average, about 270,000 new jobs per year during the last 10 years is on track to add 1.8 million new jobs during the next 10 years. On a typical day, the industry will post average sales of $1.3 billion. "The restaurant industry in the United States reaped the benefits of the robust economic growth in 2004. Steady gains in indicators such as personal disposable income and jobs continue to bode well for restaurants in 2005, despite the anticipated challenges of higher energy and food costs," said Hudson Riehle, senior vice president of Research and Information Services.

4.1 Restaurant Industry Overview (2005): y y y Sales: $476 billion Locations: 900,000 serving more than 70 billion meal and snack occasions Employees: 12.2 million the industry is the largest employer besides government

4.2 Cornerstone of US Nation's Economy: y Restaurant-industry sales are forecast to advance 4.9% in 2005 and equal 4% of the U.S. gross domestic product.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:9

y y y y y

The overall economic impact of the restaurant industry is expected to exceed $1.2 trillion in 2005, including sales in related industries such as agriculture, transportation and manufacturing. Every dollar spent by consumers in restaurants generates an additional $1.98 spent in other industries allied with the restaurant industry. Every additional $1 million in restaurant sales generates an additional 42 jobs for the nation's economy. Average unit sales in 2002 were $730,000 at fullservice restaurants and $619,000 at limited-service restaurants. More than seven out of 10 eating-and-drinking places are single-unit (independent) operations. Eating-and-drinking places are mostly small businesses, with seven out of 10 having fewer than 20 employees.

4.3 Number One Employer y y y y The restaurant industry employs an estimated 12.2 million people, making it the nation's largest employer outside of government. The restaurant industry provides work for more than 9 percent of those employed in the United States. Roughly one out of three table-service operators will increase the proportion of their budget allocated toward training in 2005. Eating-and-drinking places are extremely labor-intensive -- sales per fulltime-equivalent employee were $57,567 in 2003 and notably lower than other industries. More than four out of 10 adults have worked in the restaurant industry at some time during their lives and 27 percent of adults got their first job experience in a restaurant. The typical employee in a foodservice occupation is: o Female (55 percent) o Under 30 years of age (52 percent) o Single (68 percent) o Working part-time and averaging 25 hours a week o Living in a household with two or more wage earners (79 percent)

4.4 Top Trends to Watch Some of the key trends that the Association predicts for 2005 include: y Greater use of technology and worker training as a means to boost productivity and efficiency. More than two-thirds of restaurant operators including three out of four quickservice operators say they are more productive than they were two years ago. Continued increased focus on healthy lifestyles and restaurants providing customers with balance, choice and customization. Surveys of both fullservice and quickservice operators indicate that entre salads have increased in popularity more than many other menu items.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:10

Increased upgrades and improvements in dcor with the help of new taxdepreciation rules. More than 54 percent of quickservice operators surveyed said they would dedicate a higher portion of their budget to remodeling in 2005, highlighting the focus on using ambiance and interior design to attract customers. The sophistication of Americans' palates and knowledge of food. National Restaurant Association research indicates that 25 percent of diners can be categorized as "adventurous," and are enthusiastic about trying new foods and ingredients. Most are between 30 and 60 years old, are educated and more likely to live in larger urban areas, and are the most active restaurant diners.

4.5 Full-service /Limited-Service Segments Among the major segments, sales at full-service restaurants are projected to reach $164.8 billion in 2005, an increase of 5.0 percent over 2004, for a real growth rate of 2.2 percent. Full-service operators are optimistic about the economy, as a strong 75 percent of fine-dining operators, 69 percent of casual-dining operators and 61 percent of family-dining operators indicate that they expect their sales in 2005 to be higher than in 2004. Limited-service, or quick service, restaurants are projected to register sales of $134.2 billion in 2005, a gain of 4.7 percent over 2004. Consumer demand for convenience and value will continue to drive growth for this segment, while operators face stiffer competition from grocery and convenience stores. Both tableservice and quick-service restaurants will benefit from continued rebounds in international and domestic travel and tourism, which are projected to rebound to pre-9/11 volume levels. 4.6 Legislative outlook "With restaurant-industry sales equal to four percent of the U.S. gross domestic product, we are the largest private-sector employer in the U.S. We are poised to remain strong and will continue to grow if key opinion leaders realize the challenges of small business owners running a restaurant and can support the Association's proemployee/pro-employer public policy agenda," said Lee Culpepper, senior vice president of Government Affairs and Public Policy. Culpepper outlined the importance of restaurants to the economic health of the nation, emphasizing several legislative priorities for 2005 including: restaurant building depreciation, litigation reform, immigration reform, health care affordability and nutrition issues. "These are key issues that dramatically impact small businesses the driving force of our industry and our nation's economy," said Culpepper.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:11

4.7 Market Segmentation

MARKET ANALY I
120,000 100,000 80,000 60,000 40,000 20,000 0 2008 2007 2006 2005 2004

<YOUR.RESTO> intends to cater to the bulk of mid-America. We have chosen this group for several important reasons. First and foremost is the sheer size. With our restaurants seating almost X? people, we will need a broad base and mass appeal to fill them. Secondly, it is a very heavy restaurant user group. Last year, Americans dined out an average of 3.7 times per week (that's once every other night). They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets. Lastly, this group will see a large growth in their numbers over the next decade. If we can continue to meet and exceed their expectations, we should witness same store sales growth over this time period. We will, however have to stay focused on their changing needs and menu choices to maintain their loyalty.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:12

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4.7.1 Target Market Segment Strategy The target market segment strategy will not be significantly different to address these different groups. What differentiation it will require is different menu offerings needed to satisfy the different groups. 4.7.2 Market Survey A market survey was conducted in February, Key questions were asked of 105 customers called at random in the surrounding area to determine how they rated their restaurant food experience. Some key findings include: (Include your analysis). 4.8 Main Competitors Everyone that sells meals is our competition because we all compete for the same home meal replacement dollar. However, there are two segments of the restaurant industry that are our main competition: the casual dining restaurants concept and the fine dining restaurant. 4.8.1 Local Competidor List y Big Six BBQ- This is probably the most popular quick BBQ restaurant in town. We will offer much higher food quality and service. The atmosphere will be much cleaner and more comfortable. The food will be prepared in front of the customer, with no lard, canned food or shredded meats. Menu prices will be very similar, though the final products will not be.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:13

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y Benisimo Grill - Located on <LOCATION>, Benisimo Grill is another low quality quick BBQ food restaurant in <YOUR.CITY>. Using canned foods and some lard products, this restaurant provides a far-from-fresh feeling. They have a decent location that might be negotiable for buyout, thereby eliminating a weak competitor and picking up a pretty good location. y American Grill- Located near the university campus, this chain has been trying to expand. Currently, they have three or more stores. Again there would be no comparison in quality of food. Though they will probably continue to attract the traditional American food consumer.

5. Strategy and Implementation Summary

<YOUR.RESTO> marketing strategy will be based on developing visibility among <CITY> community. We will employ three different marketing tactics to increase customer awareness of <YOUR.RESTO>. Our most important tactic will be word of mouth/in-store marketing. This will be by far the cheapest and most effective of our marketing programs. The second marketing tactic will be Local Store Marketing (LSM). These will be lowbudget plans that will provide community support and awareness for our facility. We plan on doing approximately two or three LSM programs per marketing quarter. The last marketing tactic will be local media. This will be the most costly and will be used sparingly to supplement where necessary. Word Of Mouth/In-Store Marketing y y y y y Table tents. Wall posters. Outdoor marquee message changed weekly. Grand Opening celebration. Yearly birthday parties.

Local Media y y Direct mail piece - containing interior pictures of our restaurant an explanation of our menu. Radio campaign - complete with live remotes on our parking lot. We will pick the three top local stations with which to place our short and catchy ads. We will also sponsor radio call-in contests with free meal coupons to <YOUR.RESTO> as the prize. Newspaper campaign - placing several large ads throughout the month to explain our concept to the local area. Cable TV - will be a possibility if we can secure favorable rates with enough frequency.
<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:14

y y

5.2 Positioning Statement Our main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. We have no plans to join in the coupon/discounting wars nor the birthday or frequent buyer clubs upon which others have embarked. We will price our products fairly, keep our standards high, and execute the concept so that word-of-mouth will be our main marketing force. 5.3 Grand Opening Below are the programs that we will develop to kick open the location. 1. Grand Opening The restaurant will have outdoor signs in place as soon as possible. We want the marquee and road sign to announce that something new and exciting is coming to the neighborhood. At the grand opening, we will attach rows of pennants to our building, outdoor sign, and pole lights to attract attention. All of this is low cost but has proven to be highly successful. 2. Direct Mail Piece --A stand-alone piece measuring 6" by 7.5" in size, once folded, will be produced in full color on heavy weight paper. Inside will be all the important details of <YOUR.RESTO>. We will explain our menu, prices, hours of operation, and provide a locator map. 3. Radio --We will create one short, humorous, music-based radio commercial, in both a 30- and a 60-second spot. Both commercials will have a 10-second blank bed where we can mention something specific about the restaurant. 4. Newspaper --We will create several different size ads, generic in nature, to be used for any store in the chain. 5. Local Store Marketing (LSM) --We have three LSM programs in our current arsenal. We envision having over two dozen LSM promotions for use by individual <YOUR.RESTO>. 5.4 Pricing Strategy All menu items are moderately priced. <Include your info> While we are not striving to be the lowest priced restaurant around, we are aiming to be the value leader. 5.5 Sales Strategy <YOUR.RESTO>'s sales strategy will use a combination of superior customer attention and a comprehensive repertoire of dishes for the menu to turn information seekers into customers. Another benefit that <OWNER> will leverage to develop sales is her comprehensive menu. In addition to all of the traditional dishes, <OWNER > will offer many
<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:15

innovative appetizers items that she has developed over her years spent in the culinary industry. An innovative menu should be seen as a large benefit. 5.6 Sales Forecast The first month will be used to set up the kitchen and BBQ Grill. There will be no sales activity during the first? month. The following table and chart illustrates the projected sales forecast of <YOUR.RESTO>
SAL S BY PRODUCT/SERVICE

LUNCH/DINNER SPECIALS

BEVERAGES

BBQ SEA FOOD SPECIALTIES

BBQ CHICKEN & BEEF SPECIALTIES

SALADS & SOUPS

APPET ZERS

$0

$5,000

$10,000

SALES FORECAST SALES RATIO % APPETIZERS SALADS & SOUPS BBQ CHICKEN & BEEF SPECIALTIES BBQ SEA FOOD SPECIALTIES BEVERAGES LUNCH/DINNER SPECIALS TOTAL SALES 2004 0.0% $28,800 $30,000 $46,080 $32,400 $8,640 $32,400 $178,320 2005 23.0% $35,424 $36,900 $56,678 $39,852 $10,627 $39,852 $219,334 2006 50.0% $53,136 $55,350 $85,018 $59,778 $15,941 $59,778 $329,000

DIRECT COST OF SALES

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:16

$15,000

$20,000 $25,000 $30,000

$35,000 $40,000 $45,000 $50,000

2004

2005

2006

RATIO % APPETIZERS SALADS & SOUPS BBQ CHICKEN & BEEF SPECIALTIES BBQ SEA FOOD SPECIALTIES BEVERAGES LUNCH/DINNER SPECIALS SUB/DIRECT COST OF SALES

0.0% $7,200 $9,000 $15,360 $9,000 $2,160 $10,800 $53,520

10.0% $7,920 $9,900 $16,896 $9,900 $2,376 $11,880 $58,872

40.0% $11,088 $13,860 $23,654 $13,860 $3,326 $16,632 $82,421

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:17

T T LS L S

CH/DI

ER SPECIA S

BEVERA ES

CHICKE & BEE SPECIA TIES

APPETI ERS

OST OF S L S

CH/DI

ER SPECIA S

BEVERA ES

CHICKE & BEE SPECIA TIES

APPETI ERS

5.7 Milestones The following table lists important milestones, with projected dates, management and budget responsibility. The milestones schedule indicates our emphasis on planning for sales strategies.

QP

SA ADS & S

PPS

SEA

D SPECIA TIES

PS

$0

$5,000

$10,000

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:18

F E

QP

SA A S & S

I H

RR

PPS

SEA

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PS

$0

$10,000

$20,000

$30,000

F E ED
$40,000

RR

RQH RQH

2006 2005 2004

$50,000

$60,000

$70,000

$80,000

$90,000

2006 2005 2004

$15,000

$20,000

$25,000

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K V O L TO

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LU CH M

L U CH W B IT K TI G C M I G BU I O

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5.8 Web Plan Summary <YOUR.RESTO> plans to develop a Web presence and add an e-delivery to its business model in partnership with www.mrbite.com. <YOUR.RESTO> website, WWW.<YOUR.RESTO>.COM, striving to be a secondary channel of delivery and take-out sales. Also the website will showcase menus and special offer available. The <YOUR.RESTO>website will mirror the image and branding elements showcased in the restaurant and at the same time, keep up with the latest trends in user interface design. The key to the website strategy will be combining a well designed front-end, with a back-end capable of capturing "hits" and customer data for use in future marketing endeavors.

5.8.1 Website Marketing Strategy Market strategy in an Internet retail business depends on recognition of expertise by the consumer. For <YOUR.RESTO>, it will start with our existing brick-and-mortar store customer base, informing them of our Internet presence and encouraging their word-of-mouth recommendations to others.
<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:19

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Further awareness will be heightened by utilizing search engine marketing, banner advertising, and affiliates.

5.8.2 Development Requirements Costs that The <YOUR.RESTO>will expect to incur with development of its website include: Development Costs y y Site Design - $1,000. Site Implementation - Free. The <YOUR.RESTO>will utilize the programming services of <PROFESIONAL_NAME>, husband and friend. <PROFESIONAL_NAME>, has 20 years of experience in software development including custom programming, data management, and Web development. His skills and services are profiled at his own website: WWW.XXX.COM. The <YOUR.RESTO>is grateful for the significant cost savings and advice that this connection will provide.

Ongoing Costs y y y y y Website name registration for .COM - $35 per year. Site Hosting - $30 or less per month. Mrbite.com Annual subscription - $49 Search Engine Registration - $100 per year. Site Design Changes - Changes in the site, such as photography costs (estimated at $150-$200 per shot), are considered to be part of Marketing and Advertising.

5.9 Web Ownership and intellectual property issues: y The Web site developer was an independent contractor performing a "work for hire" service under the Copyright Act. All screens, graphics, domain names, content and the look-and-feel of the site developed is owned solely by <YOUR.RESTO>together with all underlying software, object code, digital programming, source code and the like. All intellectual property developed in connection with the site is owned solely by <YOUR.RESTO> The developer, in developing the site, has not infringe or violate the copyright and other intellectual property rights of third parties. A copyright notice is displayed on designated parts of the company's site.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:20

6. Management Summary
The initial management team depends on the founders themselves, with little backup. As we grow, we will take on additional help in certain key areas. Part of our basic philosophy will be to run our executive management "lean and mean." We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to "wear many hats," so to speak. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our restaurant. This will also allow our business partners to recoup their initial investments as quickly as possible and enjoy a higher return. At present time, <OWNER> is the sole individual firmly committed to the <YOUR.RESTO> concept. Others, who have helped on the development of this business plan, have expressed a desire to join in this venture at the appropriate time. 6.1 Organizational Structure : Future organizational structure will include a director of food operations when sales exceed XXXXX$. This will provide a supervisory level in the kitchen. Other possible positions that might be added at a later date include marketing director, food purchasing agent, controller, director of human resources and administrative assistants. Currently, we plan to have our accounting and payroll functions done by a contracted bookkeeping service. However, we will constantly monitor this expense and at such time that it is economically feasible, bring this function in-house. 6.2 Advisory Board : The <YOUR.RESTO> may create an advisory board to bring insight into new areas including : restaurant marketing , food specialist, and professional chefs. Also, the founders of <YOUR.RESTO> have a number of contacts that could certainly provide useful guidance in our future operations. We will determine the value and compensation for the advisory board in future discussions. 6.3 Personnel Plan: Besides utilizing <OWNER>'s skills full time, <YOUR.RESTO>will require the following personnel: y GENERAL MANAGER

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:21

y y y y

EXECUTIVE CHEF KITCHEN MANAGER COOK & PREP SERVERS & BUS_BOY
PER NNEL SALARY GENERAL ANAGER
E ECUTIVE CHEF KITCHEN ANAGER C SER ER & BU _B Y 10% SERVER & BU _B Y K & PREP

K & PREP 13%

GENERAL ANAGER 30%

E ECUT E CHEF 4%

PERSONNEL PLAN YEARS RATIO% GENERAL MANAGER EXECUTIVE CHEF KITCHEN MANAGER COOK & PREP SERVERS & BUS_BOY TOTAL PERSONNEL TOTAL PAYROLL 5 $74,400 2004 0% $22,800 $18,000 $16,800 $9,600 $7,200 2005 20% $27,360 $21,600 $20,160 $11,520 $8,640 6 $89,280 2006 22% $32,832 $25,920 $24,192 $13,824 $10,368 7 $107,136

7. Financial Plan
<YOUR.COMPANY.NAME> is currently seeking funding in the amount of $X? for the purpose of increasing market share, hiring additional cook staff, and effectively advertising and promoting its services. 7.2 Use and distribution of proceeds:
<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:22

uw v

KITCHEN ANAGER 3%

x y

xx

rq

x y

y v

xx

Integrate new services, develop website, and expand into other markets. Produce media relations package(s); further build the brand name through marketing, advertising, and promotion; and acquire additional kitchen inventory. Funding proceeds will also be used to increase <YOUR.COMPANY.NAME> capabilities, enhance brand name, and extend <YOUR.COMPANY.NAME> delivery market area. The initial investment will be used as a "kick off" marketing budget. It is expected that from this point on the company will self finance its expansion and marketing programs. 7.3 Projected Profit and Loss : The financial projections present the company's expected financial position, results of operations and cash flow for the three years ending <DATE>. There will usually be differences between forecasted and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. The projections reflect management's judgment of the expected conditions and its expected course of action given the hypothetical assumptions. 7.4 Important Assumptions The following table details important financial assumptions. The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the XSL files. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more importan underlying assumptions are: y We assume a strong economy, without a major recession. y We assume, of course, that there are no unforeseen changes in consumers' tastes or interests to make our concept less competitive.

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:23

GENERA A
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

MP

2006 2005 2004

7.1.Break-even Analysis The Break-even Analysis indicates that $XXXXX will be needed in monthly revenue to reach the break-even point.

BREAK-EVEN ANALYSIS: Monthly Units Break-even Monthly Revenue Break-even 992 $9,755

ASSUMPTIONS: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost $9.83 $2.83 $6,944

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:24

Curren Long-ter In erest Rate Interest Rate

ax Rate

Sales on Credit %

Payroll taxes

Inventory turnover

BREAK-EVEN ANALYSIS
$12, $10, $8, $6, $4, $2,

7.2.Projected Profit and Loss The following table will indicate projected profit and loss.

PRO FORMA PROFIT AND LOSS (P&L) 2004 SALES Direct Cost of Sales Other TOTAL COST OF SALES Gross Margin Gross Margin % EXPENSES: PAYROLL Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes $74,400 $0 $0 $0 $0 $0 $0 $8,928 $89,280 $0 $0 $0 $0 $0 $0 $10,714 $107,136 $0 $0 $0 $0 $0 $0 $12,856 $178,320 $53,520 $0 $53,520 $124,800 233.18% 2005 $219,334 $58,872 $0 $58,872 $160,462 272.56% 2006 $329,000 $82,421 $0 $82,421 $246,580 299.17%

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:25

($2,

$0 o nthly Revenue Break-even Average e r-Unit Revenue Average e r-Unit Variable o st Estim ated Monthly Fixed o st

Other other TOTAL OPERATING EXPENSES Profit Before Interest and Taxes Interest Expense Taxes Incurred NET PROFIT NET PROFIT/SALES

$0 $0 $83,328 $41,472 344 $10,198 $30,930 17.35%

$0 $0 $99,994 $60,468 344 $14,773 $45,351 20.68%

$0 $0 $119,992 $126,587 344 $31,834 $94,409 28.70%

PROFIT & OSS (MONTHLY)

$16,000

$14,000

$12,000

$10,000 SA ES NET PR FIT $6,000

$4,000

$2,000

$0 1 2 3 4 5 6 7 8 9 10 11 12

7.3.Projected Cash Flow The following chart and table will indicate projected cash flow.
PRO FORMA CASH FLOW CASH FROM OPERATIONS Cash Sales Cash from Receivables SUBTOTAL CASH FROM OPERATIONS Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2004 $89,160 $89,160 $178,320 2005 $186,434 $32,900 $219,334 2006 $279,650 $49,350 $329,000

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:26

$8,000

Gross Margi

New Investment Received Subtotal Cash Received EXPENDITURES FROM OPERATIONS Cash Spending (+Payroll) Payment of Accounts Payable SUBTOTAL SPENT ON OPERATIONS Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends SUBTOTAL CASH SPENT NET CASH FLOW CASH BALANCE

$30,000 $208,320 2004 $74,400 $30,000 $104,400 $0 $0 $0 $0 $0 $0 $0 $104,400 $103,920 $207,840

$20,000 $239,334 2005 $89,280 $30,000 $119,280 $0 $0 $0 $0 $0 $0 $0 $119,280 $223,974 $447,947

$22,222 $351,222 2006 $107,136 $30,000 $137,136 $0 $0 $0 $0 $0 $0 $0 $137,136 $438,060 $980,040

CA

FLOW

YEA )

ASH BALA

7.4.Projected Balance Sheet The following table will indicate the projected balance sheet.

$200,

$400,

$0 1 2 3

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:27

$600,

ET ASH LOW E

$800,

$1,

$1,

PRO FORMA BALANCE SHEET ASSETS Cash Accounts Receivable Inventory Other Current Assets TOTAL CURRENT ASSETS Long-term Assets Accumulated Depreciation Total Long-term Assets TOTAL ASSETS Liabilities and Capital CURRENT LIABILITIES Accounts Payable Current Borrowing Other Current Liabilities SUBTOTAL CURRENT LIABILITIES Long-term Liabilities TOTAL LIABILITIES Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital NET WORTH 2004 $1,000 $0 $0 $1,000 $3,444 $4,444 $30,000 $61,473 $30,930 $122,403 $126,847 $122,403 2005 $0 $0 $0 $0 $3,444 $3,444 $20,000 $280,099 $45,351 $345,450 $348,894 $345,450 2006 $0 $0 $0 $0 $3,444 $3,444 $22,222 $666,879 $94,409 $783,510 $786,954 $783,510 2004 $103,920 $10,000 $1,927 $1,000 $116,847 $10,000 $0 $10,000 $126,847 2005 $327,894 $10,000 $0 $1,000 $338,894 $10,000 $0 $10,000 $348,894 2006 $765,954 $10,000 $0 $1,000 $776,954 $10,000 $0 $10,000 $786,954

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:28

BALA CE SHEE (3 YEA

$800, $700, $600, $500, $400, $300, $200, $100,

$0 1 2 3

7.5 Business Ratios These business ratios are future estimates based upon current assumptions. Standard industry comparisons are for SIC code 5812, retail eating places.
RATIO ANALYSIS 2004 SALES GROWTH 0.00% 2005 23.00% 2006 50.00% Industry Profile:SIC? 6.96%

PERCENT OF TOTAL ASSETS Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets

2004 7.88% 1.52% 0.79% 92.12% 7.88% 100.00%

2005 2.87% 0.00% 0.29% 97.13% 2.87% 100.00%

2006 1.27% 0.00% 0.13% 98.73% 1.27% 100.00% 5.39% 3.90% 28.39% 37.68% 62.32% 100.00%

Current Liabilities Long-term Liabilities Total Liabilities Net Worth

22.50% 77.50% 3.63% $122,403

100.00% 100.00% 1.00% $345,450

100.00% 100.00% 0.44% $783,510

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:29

TOTAL ASSETS TOTAL LIABILITIES NET ORTH
19.17% 29.21% 48.38% 51.62%

PERCENT OF SALES Sales Gross Margin Selling, General & Administrative Expenses Total Operating Expenses Profit Before Interest and Taxes

2004

2005

2006 100.00% 59.31% 39.09% 2.75% 1.59%

100.00% 100.00% 100.00% 233.18% 0.00% 46.73% 23.26% 272.56% 0.00% 37.99% 27.57% 299.17% 0.00% 25.33% 38.48%

MAIN RATIOS Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets

2004 3.50% 0.87% 0.00% 395.74% 410.11%

2005 2.72% 0.00% 0.00% 761.72% 279.70%

2006 2.72% 0.00% 0.00% 829.91% 134.36% 1.26 0.87 3.27% 54.38% 7.17%

ADDITIONAL RATIOS Net Profit Margin Return on Equity

2004 17.35% 25.27%

2005 20.68% 13.13%

2006 28.70% 12.05%

Industry $0 0.00%

ACTIVITY RATIOS Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover

2004 11.22% 40.38 3.60% 50% 672.65% 71.13%

2005 5.36% 109.42 0.00% 50% 0.00% 57.83%

2006 3.58% 72.95 0.00% 50% 0.00% 38.56% n.a n.a n.a n.a n.a

DEBT RATIOS Debt to Net Worth Current Liab. to Liab.

2004 3.63% 22.50%

2005 1.00% 0.00%

2006 0.44% 0.00%

n.a

n.a

LIQUIDITY RATIOS Net Working Capital Interest Coverage

2004 $115,847 0.83%

2005 $338,894 0.57%

2006 $776,954 0.27% n.a n.a

ADDITIONAL RATIOS Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout

2004 71.13% 0.79% 3.80% 68.64% 100.00%

2005 57.83% 0.00% 1.02% 157.50% 100.00%

2006 38.56% 0.00% 0.44% 238.15% 100.00% n.a n.a n.a

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:30

BALA CE SHEE (3 YEA

$6, $5, $4, $3, $2, $1,

, ,

$0 1 2 3

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:31

, , , ,

TOTAL ASSETS TOTAL LIABILITIES NET ORTH

<YOUR COMPANY NAME> <PHONE> < E-MAIL> PAG:32