themed restaurant sample

7/27/2019 Themed Restaurant Sample

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FFiicckkeenn RReessttaauurraannttss,, LLLLCC

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BBuussiinneessss PPllaann

Contact:

John J. Ficken

President & CoFounder


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Confidentiality Statement

The undersigned reader acknowledges that the information provided by Ficken Restaurants, LLC in this

business plan is unique to this enterprise and is confidential; therefore, the reader agrees not to disclose

any information contained herein or in verbal discussions without the express written permission of

Ficken Restaurants, LLC or its principals.

It is acknowledged by the reader that information to be furnished in this business plan is in all respects

confidential in nature, other than the information that is in the public domain, and that any disclosure or

use by the reader may cause serious harm or damage to Ficken Restaurants, LLC or its entities.

Upon request, this document is to be immediately returned to Ficken Restaurants, LLC.

_____________________________________

Signature

_____________________________________

Name (typed or printed)

_____________________________________

Date

This is the business plan of Ficken Restaurants. The presentation of this business plan does not imply an

offering of securities.


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Table of Contents

1.0 EXECUTIVE SUMMARY

Introduction

Business Model

Growth Strategy

Financial ProjectionsCapital Requirements

2.0 BUSINESS SUMMARY

Company Profile

Stage of Development

Mission Statement

Location & Facilities

Core Corporate Objectives

Critical Success Factors

3.0 PRODUCT SUMMARY

Flagship LocationMenu

Service & Dcor

Technology Systems

4.0 MARKET ANALYSIS SUMMARY

Industry Analysis

Market Trends

Customer Analysis

Competitive Landscape

5.0 GROWTH SUMMARY

Value Proposition

Competitive AdvantageMarketing Strategy

Milestones

Exit Strategy

6.0 ORGANIZATION SUMMARY

Management Team

Personnel Plan

External Providers

7.0 FINANCIAL PLAN

Sources and Uses of Funds

Key AssumptionsRevenue Forecast

BreakEven Analysis

Projected Profit & Loss (5 yr)

Projected Cash Flow (5 yr)

Projected Balance Sheet (5 yr)

APPENDIX

Pro Forma Financials


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FFiicckkeenn RReessttaauurraannttss 5 & Diner Business Plan

Confidential 1

1.0 Executive Summary

Introduction

Ficken Restaurants, LLC (the Company or Ficken Restaurants) is a limited liability company,

operating the fullservice, 1950s

themed franchise of 5 & Diner

Ficken Restaurants, LLC (the Company) is a Limited Liability Company, operating the 5 & Diner

franchise in the Southern Illinois market. The highly successful franchise system is expanding

throughout the United States, creating an outstanding opportunity for the Company to join the

franchise network and contribute to the growth of the 5 & Diner brand. Owned and operated

by John Ficken, principal of Ficken Restaurants, LLC, the 5 & Diner location proposed for the

prescribed St. Clair County, Illinois territory will serve a large business professional and family

segment of the population. The Company will combine the successes and innovations of existing

franchise operations with the experience and financial business management expertise of the

proprietor to achieve continual sales growth and profitability.

Within the first year of operations, the Company believes it will grow sales at its flagship

location as it faces limited competition for the vast and varied American menu in an appealing

and modern quickservice environment. The quality menu will attract a broad base of

customers, driving gross sales to approximate $1.02 million within the first year and reach $1.4

million by the fifth year. Ficken Restaurants, LLC will continually reinvest profits for growth and

develop new opportunities for additional franchise in surrounding ideal communities.

Business Model

The management team of Ficken Restaurants, LLC has developed a business model to maximizethe full potential of the proven 5 & Diner restaurant to generate solid profitability and build

opportunities for additional locations in the territory.

The unique business concept positions Ficken Restaurants, LLC to effectively and rapidly

transform the viable opportunity within its target market into a regionallyexpanded operation.

The simple menu and operating system presented by 5 & Diner enables Ficken Restaurants, LLC

to stabilize overhead costs and drive revenues through its diversified channels. 5 & Diner will

draw a broad customer base, building on the longstanding appeal of varied and flavorful

options for the fullservice casual dining segment, but positioned far above competition with a

retro, hip, and fun instore dining environment proven in numerous other markets.

Employing effective strategies for business growth, Ficken Restaurants, operating its 5 & Diner

location, will be able to deliver high quality, appetizing menus and topnotch customer services

through its restaurant while minimizing burn rate to effectively and efficiently utilize capital,

delivering on the investment return strategies, and focusing on the key marketing campaigns.


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Confidential 2

Growth Strategy

The Companys growth strategy involves several approaches. Initially, the focus is to build a

strong operation within East St. Louis region at the flagship location, and expand throughout its

territory with an additional location launched within three years. A combination of creative and

conventional marketing strategies executed on the local level by the Company will drive storesales for each location.

Financial Projections

The projected financial position of the Company indicates the requested funding amount will

sufficiently support and sustain operations. The Company anticipates a steady growth with

significant net profit, which will be reinvested as leverage for continued brand and overall

business development. Based on current market activity in the targeted geographic area,

management projects Ficken Restaurants will realize profits in the second quarter of operations.

The following illustration represents projected asset position, profits, and margin growth over

five years of operations.

FiveYear Financial Highlights

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue Profit


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Confidential 3

Capital Requirements

The Companys initial capital requirements total $572,000 to fund the fullscale the Company

launch, execute sales and marketing strategies, and establish the solid foundation for success.

The capital infusion combines with invested equity from the owner and principal, anticipated at

30% of the total loan value, $132,000.

The requested financing provides a sustainable cash balance to support business operations

until specific profitability and revenue benchmarks are attained. A summary outline of the

sources and uses of funds follows, with a more detailed representation provided in the Financial

Plan section.

SUMMARY STATEMENT

Sources of Capital

Owners' and other investments $ 132,000

Bank loans $ 440,000

Total Source of Funds $ 572,000

Startup Expenses

Buildings/real estate $

Leasehold improvements $ 224,000

Capital equipment $ 160,000

Location/administration expenses $ 85,700

Opening inventory $ 8,000

Advertising/promotional expenses $ 16,500

Other expenses $ 2,500

Contingency fund $ 10,000

Working capital $ 65,300

Total Startup Expenses $ 572,000


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Confidential 4

2.0 Business Summary

Company Profile

Ficken Restaurants, LLC will structure as a limited liability company in the State of Virginia,

owned by founder and principal, John J. Ficken. The Company will operate its flagship 5 & Dinersite within St. Clair County, Illinois while developing additional locations within the same market

territory.

With the superior and popular 5 & Diner concept, Ficken Restaurants, LLC will build on the

market potential to realize profits within its first location and develop the other location to

accelerate business growth and profitability, while delivering significant return to the franchising

entity. Concurrent with national and regional cooperative corporate advertising, Ficken

Restaurants, LLC will execute local marketing and advertising campaigns to drive revenues for all

planned franchised locations, i.e. newspaper and flyers.

The Companys founder is an ambitious entrepreneur and business professional, with thepassion for the concept and the target market to ensure the success of the business. As

outlined in the management summary of this business plan, the principal has developed a sound

organizational structure to effectively execute the strategies that ensure the longterm viability

of the corporation.

Stage of Development

Ficken Restaurants, LLC is currently in the advanced phases of startup as an operator of

the 5 & Diner franchise. Relationships with vendors and contractors who will execute

the installation of the unique fullservice restaurant interior and ensure consistency in

menu product quality have also been developed.

Mission Statement

Simply stated, it is the goal of Ficken Restaurants, LLC and its franchisee locations to

offer dining customers the nostalgia of traditional American dining for breakfast, lunch,

and dinner, at affordable prices. Ficken Restaurants, LLC, through its 5 & Diner

franchises, is dedicated to fair and courteous operations in all aspects of its business,

from vendor and franchisor relationships to food and service quality for its customers

and communities.

Location & Facilities

The 5 & Diner location will launch its establishment in an approximately 3,200 square

foot space within the prescribed St. Clair territory. The site will strictly adhere to the

brand and dcor standards established by the franchisor for locations and will create an

inviting and convenient atmosphere for patrons. Ficken Restaurants, LLC will enlist the

assistance of professional commercial real estate consultants in the retail trade to

identify and review possible site selections which will be submitted to the franchisor for

review and acceptance prior to any offer finalization to ensure the mutual success of the


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Confidential 5

location. The first location will serve as an operational prototype for the management

team of Ficken Restaurants, LLC to refine and implement the tools and training provided

by 5 & Diner within its own market.

Business operations and administration will be conducted from corporate offices,

currently planned for home office space of the principal. The facilities have the

infrastructure in place to address the technology and office space needs of Ficken

Restaurants, LLC for three to five years. In future years, space requirements must

accommodate the complete needs of creating a single location for senior management

staff as well as allow for expansion as subordinate support staff that may be added.

A more detailed description of the signature design concept of 5 & Diner is presented as

an integral part of the Product Summary in Section 3.0 of this business plan.

Core Corporate Objectives

Based on in depth observation, quickservice restaurant management and startup experience,

and a comprehensive understanding of the market opportunity, Ficken Restaurants has

identified the following sets of objectives as key to its success:

Build a successful and stable operation that can be expanded to meet new

market opportunities. Reach new markets through franchising opportunities

regionally and nationwide.

Effectively leverage venture and longterm financing and equity positions to

achieve funding goals.

Establish internal controls to ensure capabilities, finances, and personnel are

effectively managed and optimally utilized.

Foster reputation in fullservice market by offering the highest caliber of quality

foods and services, location growth, proven sales value, and successful franchise

arrangements.

Develop mutually beneficial relationships with key strategic allies, restaurant

and franchising industry gurus as well as suppliers and vendors.

Critical Success Factors

Both the shortterm and longrange success of Ficken Restaurants, LLC and its 5 & Diner

franchises rest in the ability of the Company to satisfy the needs of the market, while remaining

on the cutting edge of promotions, and staying current with fluctuating customer preferences

and interests.

Fundamentally, success lies in the following elements:


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Confidential 6

Develop restaurant and administrative location in a highly trafficked area of St.

Clair County that will afford sustained customer activity for all products offered

throughout the week.

Development of a talented team for store management and staffing who share

the longrange vision of the Company.

Leverage the strength and popularity of the 5 & Diner brand to realize the profit

potential of multiple locations, and contribute effectively to overall growth of

the franchisor and the brand.

Continual negotiation of favorable arrangements and agreements with

suppliers, employees, and distributors.


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Confidential 7

3.0 Product Summary

Ficken Restaurants, LLC will offer the varied menu of 5 & Diner, emphasizing food quality, flavor,

and freshness. The selection creates a savory and fun menu of beverages and bakery goods for

families and individuals on the go.

As a 5 & Diner franchise, Ficken Restaurants, LLC shares the corporate mission of delivering

quality coffees and baked goods to consumers. Every Ficken Restaurants, LLC location in

Alexandria/Fairfax County will present a shared vision based on the principles of:

Quality Product

Committed Service

Cleanliness

Price & Value

Through its dedicated customer service philosophy and adherence to the highest quality

product and restaurant standards, Ficken Restaurants, LLC will further the mission of thefranchisor.

The experience and community ties of management and the desirable locations will enable the

Company to attract a broad client base within Alexandria/Fairfax County and from bordering

commuter routes.

Flagship Location

The 5 & Diner restaurant of Ficken Restaurants, LLC will be a tableservice establishment. The

business caters to the demands and recreational needs of working professionals, families,

restricted dieters, and students with convenient, quickservice, healthy items for lunch and

dinner. The experience and community ties of management and the desirable location will

enable the Company to attract a broad client base within Fremont seeking convenient access to

quality, freshly prepared food and beverages in a tableservice, casual atmosphere.

Menu

The restaurant offers a wistful menu of freshly cooked and prepared hamburgers,

sandwiches, side dishes, and a variety of beverages, ice cream floats, and other desserts.

Food service runs throughout the day, with a variety of breakfast options, from

pancakes and waffles to eggs and breakfast meats, and a selection of large dinner

entrees and appetizers. Every aspect of service and preparation incorporates the

restaurants key philosophy convenient and affordable food does not have to sacrificetaste or consumer health, harkening back to simpler times for families.


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Confidential 8


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Confidential 9

Service & Decor

The restaurant will offer dinein and take

out of its vast menu. At every point of

customer interaction, from order taking at

the counter to serving dinein customers,

only considerate, friendly, and efficient

service and employee attitude will be

communicated.

The atmosphere of the establishment and

surrounding common area will adhere to

the highest standards of quality and

cleanliness while creating a differentiated

and inviting ambience that accentuates the

brand identity. The approximately 3,200 square foot restaurant will incorporate 1950s

style diner car atmosphere, with booth and counter seating for 110 occupants. The

dcor draws on the period elements, but is stylish and clean, not cluttered or obtrusive.

Technology Systems

Management has outlined the key components for the robust technology the business requires

for quickservice restaurant operations as well as multisite reporting capabilities needed in the

future. The Company will purchase an integrated application that functions at every level of the

enterprise, from ensuring order accuracy to controlling prices, menus, and profits on a chain

wide basis. The system will be scalable to meet the needs of the business as it expands.

The preferred technology will utilize touch screens with greater ease of training and use. With adynamic ordering screen flow with automatic recognition of specials, the system will manage

frontofthehouse activity and backend management functions. MICROS is a likely provider, as

it meets the needs of the business and is competitively priced.


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Confidential 10

4.0 Market Analysis Summary

Industry Analysis

According to the National Restaurant Association, industry sales are forecast to reach $511

billion in 2006, an alltime record. The annual sales total represents a nearly 5.1 percent

increase over 2005 figures. Analysts project that American households will spend almost 48

percent of their entire grocery and food budget on dining or takeout this year.

Based on prior figures, the restaurant industry should see annual compounded sales growth of

at least 4.9 percent per year throughout the decade. The average perperson check in the

industry is between $15 and $25, with the higher ticket values in the range occurring in the most

populous major metropolitan areas of the United States. The majority of businesses has fewer

than seven total employees and is a sole proprietorship or partnership.

Market Trends

In its 2006 Restaurant Industry Forecast, the National Restaurant Association cited a

number of definite trends that will continue to proliferate in the industry for several

years. One key trend is the increased focus on health lifestyles among consumers and

responsiveness among the industry. Consumers will continue to expect fullservice and

quickservice establishments to improve their offerings with balanced meals, a variety of

dietary choices (vegetarian, The Zone, South Beach, Heart Healthy, etc.), and

opportunities to customize their meals from the menu offering.

Additionally, consumers are becoming increasingly adventurous and enthusiastic

about trying new foods and ingredients, seeking new alternatives to fastfood fare, as

individuals become more knowledgeable about nutrition and develop moresophisticated palates. According to the National Restaurant Association, Caribbean and

Middle Eastern dishes are now more popular than more traditional alternative cuisine,

such as French cuisine or American soul food. These consumers are typically between

the ages of 30 and 60 years old, welleducated, living in urban areas, of a variety of

ethnic origins, and are active diners.

Customer Analysis

The market segment targeted by the 5 & Diner location operated by Ficken Restaurants in St.

Clair County is predominantly part of the Baby Boomer and Generation X age groups in family

households (either married couples, with or without children, or single householders, withchildren). 5 & Diner will attract customers from its immediate area in St. Clair County and

outlying regions to Monroe County and beyond.

The regional area is comprised of the cities and towns in St. Clair County and the Illinoisside of

the greater St. Louis metropolitan area, with a total population over 256,000, according to the

latest census data and counts supplied by the Illinois Planning Commission. The population is

53% female, of which more than 51% are between the ages of 25 and 74.


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5.0 Implementation Summary

Through development of a strong executive team and a focused, integrated marketing

communications strategy, Ficken Restaurants, LLC intends to expand operations geographically

and increase revenues through additional locations. With 5 & Diner, the Company presents a

unique advantage and alternative to typical fastfood and full

service fare, as well as competing

providers offering a similar menu.

The Companys successful model, not only for business management, but also for operating a

popular quickservice restaurant, translates effectively to new geographic markets and

transcends demographic delineations.

Value Proposition

The combination of user convenience and the quality of the product and service sets 5 & Diner

apart from every other provider in the marketplace. With more healthful options, better

prepared choices, and tremendous value, 5 & Diner is the best choice with the best menu for

busy individuals and families seeking a quality and nostalgic meal.

Competitive Advantage

The core competency of Ficken Restaurants, LLC lies in the 5 & Diner menu. The ability to

maintain price competitiveness and costeffective methods of producing meals for the

consumer ensures high quality product and substantial differentiation from traditional or

themed fullservice establishments.

Management has identified several key factors on which to differentiate the business from

regional competitors.

5 & Diner will have a more inviting and socially engaging atmosphere for regular

patrons representing a broad crosssection of the East St. Louis community in the

business model that easily transfers to communities throughout the nation.

Within its local market, 5 & Diner fulfills an identified gap for a simple, nostalgic

American menu delivered in an attractive and retro tableservice environment that

effectively combines diverse appeal and in a more casual, hasslefree setting.

To demonstrate its high level of commitment to its customers, 5 & Diner will

develop loyalty programs for frequent customers and continually respond tocustomer feedback for appropriate product and service strategies.

Leveraging the vendor relationships established by the franchisor, 5 & Diner will

obtain the freshest high quality ingredients at competitive costs to increase overall

margin and improve the bottomline through purchasing and production

efficiencies.


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Confidential 15

Marketing Strategy

Franchisees contribute to and benefit from regional and national marketing and advertising

campaigns using appropriate media vehicles. Ficken Restaurants, LLC will also regularly develop

and execute its own promotional programs specific to the territory and its target consumers.

Management intends to commit to a significant annual marketing and advertising budget

throughout the scope of this business plan and the life of the enterprise. The budget for sales

and marketing expenses is currently based on estimated needs, but will be adjusted as needed

as the business develops and key vehicles and promotional venues are furthered cultivated. The

key strategies are highlighted below.

Opening Advertising Program

Sales Collateral

Multimedia Presentations

Attractive Signage, Atmosphere, and Location for the Restaurant

Loyalty Programs Local Television Commercial Advertising

Special Promotions & Events with Corporate Sponsorship

Internet Marketing

Advertising

Print publications will be the key advertising vehicle for the restaurant initially. Display

advertisements in the Sunday weekly dining and entertainment sections of major regional

newspapers will position Ficken Restaurants location as a high point of interest among

consumers.

Sales Collateral

Sales and marketing literature will be produced to support marketing efforts directed at

prospective franchisees. These materials will be essential to positioning the Company and

developing topofmind presence among the audience following multimedia presentations

and demonstrations using operations at the flagship location as a marketing tool.

Television Commercials

5 & Diner will use 30 and 60second spots on local programming and cable advertising to

promote business and the grand opening of the establishment. Ongoing media buys will

effectively position the unique concept in the market, announce special promotions and

incentives, and publicize the menu variety.


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Confidential 16

Milestones

Key milestones for Ficken Restaurants, LLC are structured around specific product and service

launch activities and associated marketing efforts to fuel their success in the marketplace.

Implementation of certain targets is dependent upon the availability of funding.

The milestone schedule indicates an emphasis on future planning for implementation.

Management will conduct monthly evaluations of the financial and market position to

determine feasibility, resource availability, and progress toward achieving each operational

milestone.

The fundamental steps, listed in priority order for each milestone, are highlighted below.

Establish Flagship Location 2 to 4 months

Acquire site and complete necessary interior construction and/or renovation.

Create unique complimentary atmosphere and interior dcor aligned with corporate

objectives and restaurant identity.

Implement Personnel Plan 1 to 2 months

Fill key restaurant operations roles with skilled, highly flexible, and motivated

candidates through regional searches.

Establish Brand Ongoing

Coordinate with internal staff and external marketing agencies and consultants to

ensure all aspects adhere to brand identity, visual appearance, and service standards

Create an appealing interior and exterior dcor for the flagship location that can easily

be translated to different markets through franchising arrangements.

Execute Local Marketing Campaigns Ongoing

Develop and implement marketing campaigns throughout communities in the St. Clair

County trade area to introduce the new locations as they are developed.

Expand marketing efforts throughout the region to reach the various target segments:

residents, commuters using surrounding routes and thoroughfares, and business

travelers, to build awareness among consumers.

Exit Strategy

The management team is committed to the longterm viability of the Company and its 5 & Diner

franchises. As such, the principal intends to effectively manage and operate the business toensure its success. If the projections are not met, and Ficken Restaurants can not continue to

operate with a profit, equipment can be liquidated and furnishings can be sold to cover the cost

of the remaining loan amount.


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Confidential 17

6.0 Organization Summary

The management team has developed the following personnel plan and hiring schedule based

on estimated daily and weekly occupancy projections. The management team will offer

competitive pay scales for the type of work and the region. The management team will

compliment their own skills, as discussed below, with consultants specializing in operations andfinancial management specific to restaurant establishments.

Management Team

Ficken Restaurants, LLC is owned and managed by its principal and cofounder, John Ficken.

In addition, the store manager and each shift leader involved in managing restaurant operations

and the staff will possess a wealth of experience spanning the gamut of essential skills, from

frontend and backofhouse operations, to customer service and food preparation.

Personnel Plan

The principal and owner will manage the business and provide all staff supervision, training, and

administration for the Company. Their years of professional experience, education and training,

and involvement in the community are their greatest strengths.

The Company will hire additional staff to provide food preparation and waiting services to

patrons. Intended employees will cover multiple functions as needed as part of the family

culture the business will foster among its employees as well as its clientele. Labor costs are

targeted at 32% to 34% of gross revenues annually. The workforce will consist of a store

manager, receiving a competitive salary with bonus potential, as well as shift leads and full

foodservice and kitchen crews receiving a competitive hourly wage. Projections for payroll

expenses also address personnel burden.

PROJECTED EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5

Employee Costs

Store Manager $ 38,000 $ 41,040 $ 42,066 $ 43,118 $ 44,196

Shift Leads (2) $ 44,000 $ 47,520 $ 48,708 $ 49,926 $ 51,174

Kitchen Crew $ 101,040 $ 109,123 $ 117,853 $ 127,281 $ 137,464

Foodservice Crew $ 165,840 $ 179,107 $ 193,436 $ 208,911 $ 225,623

Benefits 13% $ 43,784 $ 47,287 $ 50,459 $ 53,869 $ 57,536

Subtotal $ 392,665 $ 424,078 $ 452,522 $ 483,104 $ 515,993

Labor Costs/Sales 35% 34% 34% 34% 33%


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Confidential 18

External Providers

Relationships are being developed with a network of advisors in the accounting and legal

professions to provide assistance and professional services to the Company. To compliment the

skills, experience, and expertise of the management team, the Company has also sought the

advice and counsel of seasoned business owners, industry segmentspecific entrepreneurs,

entrepreneurs, and other industry professionals who will provide ongoing support through the

life of the business.


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Confidential 19

7.0 Financial Plan

Management has developed the following financial plan to address the strategic and

implementation needs of 5 & Diner as summarized in this business plan. Detailed financial

forecasts for the first several years have been created utilizing figures from sales projections, the

pricing strategy, and marketing and overhead expense estimates. Overall, the ratios formargins, growth, and expenses are in line with general comparative industry business standards.

The financial plan and projections represent managements best efforts to forecast income and

expenses, based on good faith estimates and project planning. Management is seeking

$440,000, raised through conventional business financing, to combine with a substantial

contribution from the owners toward securing the loan.

Sources and Uses of Funds

The Companys initial capital requirements total $572,000 to fund the venture startup, execute

sales and marketing strategies, and recruit essential staff. The requested $440,000 loan total,combining with a $132,000 investment from the owner, provides a sustainable cash balance to

support business operations until specific profitability and sales benchmarks are attained.

Please refer to the chart below, detailing the distribution of initial funds. Ongoing use of capital

includes funding key service positions, sustaining strategic marketing programs, and supporting

equipment and environmental quality standards.

The following table outlines initial startup costs, based on estimates from real estate entities,

potential contractors and suppliers, and industryspecific calculations. The results are

summarized in the accompanying illustration.

Sources and Allocation of Startup Capital


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Confidential 20

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Investment Loans Expenses Assets


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Confidential 21

SOURCES OF CAPITAL

Owners' Investment

Owner Investment $ 132,000

Total Investment $ 132,000

Bank LoansPrimary Lender $ 440,000

Total Bank Loans $ 440,000

STARTUP EXPENSES

Leasehold Improvements

BuildOut/Improvements/Landscaping $ 224,000

Total Leasehold Improvements $ 224,000

Capital Equipment List

Furniture $ 55,000

Equipment $ 85,000

Fixtures $ 15,000

Small wares $ 5,000Total Capital Equipment $ 160,000

Location and Admin Expenses

Rental Deposits $ 13,200

Utility deposits $ 1,200

Legal and accounting fees $ 3,300

Prepaid insurance $ 1,500

Consultants $ 2,000

Initial Franchise Fee $ 35,000

Supplies $ 4,000

Architectural Design Fees $ 8,500

POS Software & Systems $ 12,000

Staff Recruitment & Training $ 5,000Total Location and Admin Expenses $ 85,700

Opening Inventory

Food & Food Preparation $ 8,000

Total Inventory $ 8,000

Advertising and Promotional Expenses

Grand Opening Marketing & Advertising $ 15,000

Corporate Identity Material $ 1,500

Total Advertising/Promotional Expenses $ 16,500

Other Expenses

Miscellaneous $ 2,500Total Other Expenses $ 2,500

Reserve for Contingencies $ 10,000

Working Capital $ 65,300

Total Startup Expenses $ 572,000


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Confidential 22

Key Assumptions

The annual assumptions, which form the basis for much of the financial plan, are depicted

below. Rates are based upon the best available current data for the industry segment. In

general, forecasts are based on the best ability of management to project sales growth,

operating expenses, and expected profits using a combination of experience, research, andindustry standards.

GENERAL ASSUMPTIONS

Tax Rate 39.00%

Payroll Tax/ Personnel Burden 12.55%

Merchant Account Costs (Credit Cards) 2.79%

% of Sales Paid by Credit Card 65.00%

Bad Transactions % 0.00%

LongTerm Loan Interest Rate 8.75%

Current Liability Interest Rate 0.00%

ACCOUNTS PAYABLE

% of Vendors Paid Within

Immediately 25%

30 days 75%

60 days 0%

ACCOUNTS RECEIVABLE

% of Customers Paying Within

Immediately 100%

30 days 0%

60 days 0%


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Revenue Forecast

The following forecast outlines the revenue activity generated through store sales at the initial

Ficken Restaurants, LLC 5 & Diner location.

The table is followed by a chart detailing annual sales growth projections for revenue for theflagship 5 & Diner location of the Company. Once established, per store revenue is expected to

track corporate trends with incremental annual growth as efficiencies and awareness are

developed. Monthly projections for restaurant sales activity in the first fiscal year are included

in the Appendix.

FIVEYEAR REVENUE PROJECTION


Breakfasts 15135 16648 17980 19418 20972

Avg. Price per Unit $6.49 $6.49 $6.49 $6.49 $6.49

Breakfasts $98,223.71 $108,046.08 $116,689.76 $126,024.94 $136,106.94

Hamburgers 26486 29134 31465 33982 36701


Hamburgers $206,322.75 $226,955.03 $245,111.43 $264,720.34 $285,897.97

Sandwiches 22702 24972 26970 29127 31458


Sandwiches $163,226.91 $179,549.60 $193,913.57 $209,426.66 $226,180.79

Dinner Entrees 18918 20810 22475 24273 26215


Dinner Entrees $194,669.09 $214,136.00 $231,266.88 $249,768.23 $269,749.69

Side Dishes 11351 12486 13485 14564 15729


Side Dishes $22,588.43 $24,847.27 $26,835.05 $28,981.85 $31,300.40

Beverages 75673 83240 89900 97092 104859


Beverages $226,262.62 $248,888.88 $268,799.99 $290,303.99 $313,528.31

Appetizers 15135 16648 17980 19418 20972


Appetizers $74,916.39 $82,408.02 $89,000.67 $96,120.72 $103,810.38

Desserts 8829 9711 10488 11327 12234


Desserts $33,460.13 $36,806.14 $39,750.63 $42,930.68 $46,365.14

Projected Totals $1,019,670.02 $1,121,637.02 $1,211,367.99 $1,308,277.43 $1,412,939.62


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Confidential 24

Projected Revenue Forecast by Category Annual

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000


Breakfasts Hamburgers Sandw iches Dinner Entrees Side Dishes Beverages Appetizers Desserts


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Confidential 25

Breakeven Analysis

The breakeven analysis for 5 & Diner is summarized in the following table. The breakeven

estimate is a very conservative figure and represents an average dollar contribution of all

product categories. Higher margin food and beverage sales contribute significantly more dollars

to bottom line financial projections.

SALES

Sales price per unit $ 4.78

Sales volume per period (units) 25044

Total Sales $ 119,795

VARIABLE COSTS

Direct material per unit $ 1.82 38%

Variable costs per unit $ 1.82

Total Variable Costs $ 45,522

Unit contribution margin $ 2.97

Gross Margin $ 74,273

FIXED COSTS (per period)

Labor costs $ 37,806 32%

Administration Costs $ 595

Occupancy Costs $ 4,340

Depreciation $ 593

Marketing Costs $ 3,034

Total Fixed Costs per period $ 46,367 62%

Net Profit (Loss) $ 27,905

Breakeven Point (units): 15,635


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Confidential 26

BreakEven Analysis

$-

$15,000

$30,000

$45,000

$60,000

$75,000

$90,000

0 2504 5009 7513 10018 12522 15027 17531 20035 22540 25044

Sales Volume (Units)

Dollars

Total costs Total sales


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Confidential 27

Pro Forma Profit and Loss

The projected profit and loss statement represents the expected performance of Ficken

Restaurants during its first five years of operations. Company sales are forecast to increase at a

rate similar to proven growth trends observed by other operators in the niche space. Net profit

margins also steadily rise as the business matures and the traditional learning curve of the firstyear is overcome.

The following table is accompanied by illustrations of monthly and annual profit and gross

margin estimates. Monthly profit and loss figures for the first full year are included in the

appendices.

REVENUE Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue $ 1,019,670 $1,121,637 $1,211,368 $1,308,277 $1,412,940

Cost of Sales

Direct Materials $ 387,475 $ 426,222 $ 460,320 $ 497,145 $ 536,917

Total Cost of Sales $ 387,475 $ 426,222 $ 460,320 $ 497,145 $ 536,917

Gross Profit $ 632,195 $ 695,415 $ 751,048 $ 811,132 $ 876,023

EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5

Salaries & Wages $ 348,880 $ 376,790 $ 402,063 $ 429,235 $ 458,457

Personnel Burden $ 43,784 $ 47,287 $ 50,459 $ 53,869 $ 57,536

Franchise Fees $ 31,610 $ 34,771 $ 37,552 $ 40,557 $ 43,801

Supplies $ 1,800 $ 1,872 $ 1,947 $ 2,025 $ 2,106

Repairs and maintenance $ 1,800 $ 1,872 $ 1,947 $ 2,025 $ 2,106

Marketing & Advertising $ 36,405 $ 28,041 $ 27,861 $ 27,474 $ 27,552

Janitorial Expense $ 3,000 $ 3,120 $ 3,245 $ 3,375 $ 3,510

Accounting and legal $ 1,200 $ 1,248 $ 1,298 $ 1,350 $ 1,404Rent $ 38,400 $ 39,936 $ 41,533 $ 43,195 $ 44,923

CAM/Property Taxes $ 6,000 $ 6,240 $ 6,490 $ 6,749 $ 7,019

CC Processing Fees $ 18,492 $ 20,341 $ 21,968 $ 23,726 $ 25,624

Computer/IT $ 1,440 $ 1,498 $ 1,558 $ 1,620 $ 1,685

Utilities $ 7,680 $ 7,987 $ 8,307 $ 8,639 $ 8,985

Insurance $ 4,500 $ 4,680 $ 4,867 $ 5,062 $ 5,264

Depreciation $ 7,111 $ 7,111 $ 7,111 $ 7,111 $ 7,111

Postage & Delivery $ 600 $ 624 $ 649 $ 675 $ 702

Miscellaneous Expense $ 2,400 $ 2,496 $ 2,596 $ 2,700 $ 2,808

Total Expenses $ 555,102 $ 585,914 $ 621,451 $ 659,385 $ 700,591

EBIT $ 77,094 $ 109,501 $ 129,597 $ 151,747 $ 175,432

Taxes (real estate, income) $ 30,067 $ 42,705 $ 50,543 $ 59,181 $ 68,418Interest $ 36,931 $ 33,311 $ 29,362 $ 25,052 $ 20,350

NET PROFIT $ 10,096 $ 33,484 $ 49,693 $ 67,514 $ 86,663

Net Profit/Sales 0.99% 2.99% 4.10% 5.16% 6.13%


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Confidential 30

Projected Cash Position

$(30,000)

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

$50,000


Cash Balance Net Cash Flow


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Confidential 31

Pro Forma Balance Sheet

The proposed financial plan of Ficken Restaurants provides excellent financial strength and

liquidity. Company operations are designed to minimize loss and shrinkage while maximizing

existing resources in human and financial capital. The balance sheet in the following table is for

the initial five years of operations. The complete table, including monthly estimates for YearOne, is included in the appendices.

Assets

Current Assets Starting Balances Year 1 Year 2 Year 3 Year 4 Year 5

Cash $65,300 $43,316 $26,955 $27,244 $20,515 $18,151

Accounts Receivable $0 $0 $0 $0 $0 $0

Inventory $8,000 $24,578 $24,578 $24,578 $24,578 $24,578

Other Current Assets $0 $0 $0 $0 $0

Total Current Assets $73,300 $67,894 $51,533 $51,822 $45,092 $42,728

Longterm Assets

Long

term Assets $139,000 $139,000 $139,000 $139,000 $139,000 $139,000Accumulated Depreciation $0 $14,222 $21,333 $28,444 $35,556 $42,667

Total Longterm Assets $139,000 $124,778 $117,667 $110,556 $103,444 $96,333

Total Assets $212,300 $192,672 $169,199 $162,377 $148,537 $139,062

Liabilities and Capital

Current Liabilities Year 1 Year 2 Year 3 Year 4 Year 5

Accounts Payable $0 $218,983 $240,711 $254,138 $282,670 $301,121

Current Borrowing $0 $0 $0 $0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities $0 $218,983 $240,711 $254,138 $282,670 $301,121

Longterm Liabilities $440,000 $360,523 $317,164 $269,856 $218,238 $161,917

Total Liabilities $440,000 $579,505 $557,875 $523,994 $500,908 $463,039

Total Owner's Equity ($227,700) ($386,834) ($388,676) ($361,616) ($352,371) ($323,977)

Total Liabilities and Capital $212,300 $192,672 $169,199 $162,377 $148,537 $139,062

Net Worth ($227,700) ($223,186) ($388,676) ($361,616) ($352,371) ($323,977)


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themed restaurant sample

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