Executive Summary: Details of Business Idea: The business is a Chinese Hot Pot Restaurant which will serve the

traditional exotic Chinese cuisine hot pot variety. The idea behind such a business is to cater to the tastes of Chinese population that is living in Vancouver, as well as those who love traditional Chinese food. The business will be a sole proprietorship arrangement. The hot pot restaurant will offer not only an oriental taste to the food lovers, but a healthy alternative to fast food and other unhealthy foods available in the market. The restaurant will also offer a quality hang out and dining experience to its customers through excellent and original taste of China and superb ambiance. Location Plan: The business will be located in the city of Vancouver. The city of Vancouver is the second largest city in Canada with people from diverse cultures and backgrounds. The ethnic diversity of the city is one of the primary contributions towards the uniqueness of the city (Vancouver.ca, n.d). According to 2006 figures, 51% of the citys population comprised of people from minority background. The most recent immigrants (those immigrated in last 5 years) consists of 26.1% of people from Chinese, followed by 11.2% Hong Kong origin (Vancouver.ca, n.d). The city of Vancouver is consistently ranked as the worlds most livable city, according to Economist Intelligence Unit and Mercer (www.vancouvereconomic.com, n.d). Moreover, the city has the Best Business Tax Environment in the world, according to 2010 ratings of KPMG (Appendix 1), and ranks at the top according to 2011 MMKs Cost Comparison Analysis(www.vancouvereconomic.com, At the same time, the interest rates and mortgage rates in Vancouver and British Columbia are also favorable for businesses (Appendix 2). Premises: The restaurant will be located in West Broadway Area of Vancouver. The reason for choosing this area is the fact that it is neither very far away from the city center, nor at the heart of the city. Therefore, lease would be comparatively lower than the downtown area. At the same time, a larger space can be easily obtained in West Broadway area at better rates. West Broadway also offers a number of Chinese and other restaurants which makes the area quite popular for the food lovers. The plan is to find a property which is already designed as a restaurant. A number of advantages of leasing an already designed restaurant space are that it would already have kitchen fixtures, loading, and waste facilities located in it. The restaurant will be leased in an area with close proximity to affluent residential neighborhoods. A 2000 SF space will be rent out which is feasible to serve around 200 guests at a time. The layout of the restaurant will include a dining hall that could accommodate up to 200 people. A live counter will be set up at one end of the dining hall where guests will be able to order enjoy live cooking from the expert Chinese chefs. A Range of noodles could be ordered from the live counter with a range of options to

choose from. The live counter will not only serve as a marketing and promotion tool for the restaurant, but will also ensure the guests of the hygienic working conditions of the restaurant. Ethical Policy of the Restaurant: In accordance with the city of Vancouver laws, the business practices adopted will be in line with the ethical and environmental guidelines. Team Members: The team members hired will be of Chinese origin to provide a complete Chinese experience to customers. The Master Chef and four other subordinate chefs working under him would be experienced and Chinese. People go to Chinese restaurants to experience the true Chinese oriental taste as well as the whole Chinese experience. Authenticity is therefore crucial for the success of the restaurant. Team members will be trained to greet the guest in the traditional Chinese way. Customer First will remain the primary motto of the business and the team members. Personnel Management: All the employees will be permanent full time employees, apart from the part time waiters. In order to keep the personnel motivated and dedicated, competitive salary packages will be offered to them. The business will make sure that it does not violate any employee regulations set down by the BC and Vancouver local laws. Workplace health and safety will be provided to all the employees in line with the Work Safe BC Occupational Health and Safety Regulations. Compensation will be in compliance with Workers Compensation Act. Customer Relationship Management: The business will follow the Customer First policy. The focus will be on building relationship with the customers to increase the repeat visit rate. A database of customers will be developed and maintained to stay in touch with the customers on regular basis and let them know of any promotions or special deals. The confidentiality and privacy of customers will be safeguarded at any cost. At no cost will the business give away important customer information to third party. A feedback mechanism will be set up as well where customers could freely give their reviews about the products and services. Confidentiality will be of primary concern in this area as well.

Competitors: Vancouver has a large Chinese population as well as a large immigrant population that loves Chinese food. Due to this very reason, competition is quite tough in the city. The unique selling point of this Chinese hot pot restaurant is the freshness of meat, vegetables, fruits, and sea food. In order to compete with the already established Chinese and other oriental restaurants, this business will make

sure that it provides a complete Chinese experience, a healthy eating option, and food made by expert chefs. Environmental Issues: In order to be a part of the Green Strategy of Vancouver, the restaurant will make sure that it follows following environmental guidelines: The raw materials will be procured from healthy and hygienic sources The business practices will be in accordance with all the regulations set by Department of Environment Act, 1971. The business will make sure that it protects the land, water, air, birds, and birds of the areas around it. In line with the construction and property laws, the lay out of the restaurant will assure complete safety of every human being. Eco friendly methods will be employed in the restaurant and wastages will be reduced to minimum through training personnel and creating culture of reducing wastages.

Viability Plan:

Marketing Plan: Product Plan: The name of the restaurant will be The Chinese Hot Pot. The idea behind this name is to attract not only Chinese population of the Vancouver city, but also people from other ethnic backgrounds living in the city. The brand name is kept simple to give a clear and direct message to the target audience. The restaurant will offer high quality Chinese hot pot variety which would include thinly sliced meat, vegetables, traditional Chinese egg dumplings, wontons, a variety of seafood, and mushrooms. The

meals will be served with sauces and dips. All the products used for cooking the meal will be fresh, and not frozen. The freshness of the food is the unique Selling Proposition of the restaurant. Due to the very nature of the business, there will be no take away service available, since the food has to be served simmering hot. The menu will include only the Chinese Hot Pot cuisine to cater to the very specific and niche taste of the customers. Pricing Plan: In order to develop an image of fine dining, the pricing strategy of the restaurant will be market oriented. Setting the prices too high or too low would not serve the purpose of the business. Since the demographics and economic environment of the city of Vancouver shows that employment rate is high, and standard of living is improving as well, the restaurant will find adequate number of customers. The price will begin from $10 CAD, with buffet ranging from $20 CAD to $30 CAD. Positioning and Placement Plan: The brand will be positioned as a fresh producer of Chinese Hot Pot meals. The positioning strategy of the brand would include targeting middle and upper middle income class of the Vancouver population who love original tastes of Chinese hot pot cuisine. The location of the outlet is chosen in an area which is home to middle and upper middle class people and thus signifies the placement and positioning strategy. The layout and ambiance of the restaurant will play a crucial role in the brand positioning. A traditional Chinese layout with a focus on environmental and hygiene issues will be designed to give a clear message to the customers. Promotions Plan: The promotion will be primarily done through social media including Facebook and Twitter. Brochures and Pamphlets will be distributed in the nearby areas to let the potential customers know about the restaurant. However, these activities will be carried out before the launch of the business. Once the business gets running, word of mouth, the restaurants website, and the social media will be used for the promotion. Discounts and Vouchers will be offered as a part of promotional strategy. Group discounts will be offered to groups of 8 or above. The restaurant will also attract local celebrities to promote the brand image and as a part of PR campaign. Furthermore, the restaurant will take active part in campaigns for green businesses and ecofriendly ways of doing business as a part of its strategy to become a socially responsible business.

Human Resources Plan: The restaurant will have the following employed personnel: 1 Master Chef 4 Subordinate Chefs 4 Waiters (Full time) 4 Waiters (Part Time) 2 Cleaners 1 Receptionist/ Greeter

The personnel that will be in direct contact with the customers will be from Chinese origin. This will be done for the purpose of creating a truly Chinese ambiance and environment. However, the HR policies will be in compliance with the country and local HR and employment laws. The permanent staff will be paid competitive salaries to keep them motivated. The part time staff will comprise mainly of students who are looking for part time job opportunities. This will not only lower the costs to the business, but will also help in meeting the seasonal fluctuation in demand. The part time staff will be paid according to the minimum wage rate set for the students. Since the primary driver of success of any restaurant is Chef, the restaurant will attract qualified chefs from the region which will be paid highly in order to keep the restaurants quality up to the mark. Operations Management Plan: The production and operations plan is given below: Procurement of Raw Material: The raw material that includes fruits, vegetables, poultry, seafood, and meat will be procured on daily basis from wholesale suppliers. Since the business is based on producing food from fresh raw materials, relationship will be built with quality suppliers to deliver fresh goods. Spices and other ingredients will be procured from the China Town. Cooking: One master chef and four helper or subordinate chef will be responsible for cooking the food. None of the food will be prepared in advance. The chefs will start preparing the meal as soon as they get an order. Average preparation time per meal would range from 15-25 minutes. The kitchen will be designed to ensure high sanitary efficiency and will be cleaned daily. Hours of Operation: The restaurant will be open for serving customers 7 days a week, from 11 am till 10pm.

Financial Plan: The pro- forma Income Statement and Balance Sheet for the first 3 years of the business are given below:

Pro forma Income Statement Canadian Dollar (Thousands) Sales Cost of goods sold Gross Profit Operating Expenses Salaries Rents and Lease Legal Costs Advertising Depreciation Interest Expense Other operating expenses Total Operating Expenses Operating Profit Other Expenses Net Profit

Year 1 1000 345 655 250 480 50 5

Year 2 1160 400 760 250 480 20 5 6 10

Year 3 1300 450 850 250 480 20 8.4 13 5 763.4 73.6 0 0.31

5 790 (135) 0.8 (0.75)

5 776 (16) 0 0.24

Pro forma Balance Sheet Current Assets Cash(40% of Sales) Accounts Receivable (60% of Sales) Inventory Total Current Assets Fixed Assets Building and Equipment less Depreciation Total Fixed Assets Total Assets Liabilities and Owner's Equity Current Liabilities Accounts Payable Accrued Interest Long Term Loan Total Liabilities Owner's Equity Retained earnings Total Owner's Equity Total Liability and Owner's equity

Year 1 400 600 320

Year 2 464 696 340

Year 3 520 780 360

100

100 6 1606

100 14.4 1774.4

1420

500 150 50 300 1000

550 250 100 206 1106

590 300 150 160.8 1200.8

420 1420

500 1606

73.6 500 1774.4