CHLOROPHYLL RESTAURANT BUSINESS PLAN a Table of Contents Executive Summary…………..……………………………………….…….. 1 Company Profile……………..……………………………………………… 2 Marketing Plan……………………………………….……………………... 4 Marketing Objectives……………………………………………………. 4 Marketing Mix…………………………………………………………… 4 Target Market Segmentation…………………………………………….. 4 Competitor Analysis……………………………………………………... 5 SWOT Analysis…………………………………………………….. 5 Five Forces Analysis………………………………………………... 6 Marketing Strategy……………………………………………………….. 7 Advertising Method…………………………………………………. 7 Promotional Campaign……………………………………………… 8 E-Commerce……………………………………………………………... 8 Management Plan………….………………………………………………... 10 Organization Chart……………………………………………………….. 10 Management Summary…………………………………………………... 10 Hiring Positions…………………….……………………………….. 11 Three-year Personal plan………………………………………………… 12 Facilities and Utilities……………………………………………………. 13 Value Chain Management………………………………………………... 13 Total Quality Management………………………………………………. 15 Government Regulations………………………………………………… 16 Protection of Intellectual Property Rights……………………………….. 16 Financial Plan………………..………………………………………………. 17 Financial Assumption……………………………………………………. 17 Financial Statements……………………………………………………... 18 Financial Ratios……………………………………………………... 18 Capital Budgeting…………………………………………………… 19 Income Statement…………………………………………………… 20 Balance Sheet……………………………………………………….. 21
CHLOROPHYLL RESTAURANT BUSINESS PLAN b Statement of Cash Flow…………………………………………….. 22 Financing – Installment Plan…………………………………………….. 22 Conclusion…………………………………………………………………….. 23 Appendix……………………………………………………………………… 24 1. Chlorophyll Drink & Its benefits……………………………………… 25 2. Research on Gay Customers…………………………………………... 27 3. Sample of Chlorophyll Webpage……………………………………… 30 4. Graphical form of Three Financial Ratios…………………………….. 34 References…………………………………………………….………………. c
CHLOROPHYLL RESTAURANT BUSINESS PLAN 1 Executive Summary “Chlorophyll” restaurant is a new small anchor restaurant. “Chlorophyll” will mainlyemphasize on healthy food, low calories, clean and fresh foods and beverages which aresuitable for everyone especially health conscious consumers including dieting consumers,elders who pay close attention in their health, and others that would pays close attention totaking care of themselves. In the menu, all of our healthy choices will show the number ofcalories in each dish so that customers would know how many calories they will consume. Our restaurant will be located in one of the busiest areas in Bangkok which is on Silomroad near the “California Fitness” which is the center of the business area and close to ourtarget customers. Our restaurant also has a plan to expand more branches in many importantlocations in Bangkok such as Siam square and Asoke Road. Moreover, our restaurant also provides the healthy drinks such as fruit smoothies, herbaldrinks, and many more. We will set up the beverage counter area in the front space of therestaurant for more convenience of both in-house and take-away customers. In addition, ourrestaurant will provide “Kiosk point” available at North Sathorn Road and Silom Road whichwill be selling beverages and snacks to the customers. “Chlorophyll” will hire the Nutritional Expert who has the knowledge to help uscalculate the calories in each dish, to create and balance our menu set in terms of nutritionalvalue. Also occasionally, will be suggesting and advising our customers about how to plan theirdiet or how to stay healthy by eating right. Our additional highlight is the “Chlorophyll water” which will be served in bottles oras a refill drink in the restaurant. It will also be sold in our beverage counter and kiosks asorders from our customers. We are expecting the restaurant to have a total initial investment of approximately 2.02million baht with a payback period of approximately 1.5 years. Chlorophyll will generate thenet profit margin of 9.5% on average over the five years time with return on investment ofapproximately 52.2% and return on equity of approximately 64% over five years. Chlorophyll Restaurant is requiring quite a large amount of investment and because weare in a restaurant business, direct labor is a very important resource that we need in ouroperation. Aside from that, there would be raw materials as fresh vegetables, fruits needed.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 2 Company Profile Our Chlorophyll restaurant is the brand new healthy food restaurant in Thailand. Therestaurant will be established in June 2008 at Soi Convent, Silom Road, Bangkok, near SalaDeang BTS station. Also the location of the restaurant is in the heart of business center area.Our highest priority to provide the high quality food and beverage to all customers whoprimarily concerned about their health and strongly interested in all kinds of healthy food andbeverages. This restaurant is the first branch of the company which targeted in Bangkokespecially in the metropolitan area. Moreover, the company is planning to expand this healthyfood restaurant business by opening more branches to cover important target area in Thailandand international country in the future. The highlight of the restaurant is at the ‘Chlorophyll Drinks” which the customers canchoose whether they want to order by glass or for a refill. Chlorophyll drink is considered goodfor your health. It is refreshing, enhance digestion, purifying bloods, etc. (See appendix 1 formore information)Vision • To be the leading restaurant distinguished by the superior healthy food and beverage by using the best nutrition for everyone.Mission • Promising to provide the best healthy food and beverage for every people in the society along with using the high standard raw material • In attempt to focus especially on the health concerned group of people.Goals • To make our Chlorophyll Restaurant a well-known healthy franchise restaurant within 3 years.Restaurant Atmosphere • Overall Since our Chlorophyll restaurant is providing the healthy food and beverage, our restaurant will look bright, shine, and clean but has comfortable and warm at the same time. Moreover, when the customers enter the restaurant, it will make them feel fresh, lively, and health conscious from the first step that they entering into our Chlorophyll restaurant.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 3 • Decoration • Our restaurant will focus on using cool and bright colors which represent peace and quiet such as different shades of greens, creamy yellows, and white. • Also adding some colorful pictures that show about the fresh material and the delicious dishes those we use such as vegetables, and fruits etc. • Together with some of the flowers which spread out some soft smell and giving the customer a good eye view in the restaurant. • Moreover, tables and chairs that we use will looks trendy but comfortable and convenient for customers so that they will feel relax when they are in Chlorophyll restaurant.Open Hours Chlorophyll restaurant will open on Monday – Saturday The restaurant will open from 9.00am – 10.00pm o Chlorophyll restaurant will operates at these hours because the observation shows that Silom area will be crowded during 9.00am – 10.00pm so we act according to the observation. o Also, most of the people in Silom are working people who work all day from morning through evening Monday – Saturday, most of them will have one day off on Sunday. However, our beverage counter will open at 7.00am for the early birds in the area to be able to get a take-away healthy breakfast.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 4 Marketing Plan Marketing Objectives • To operate and manage one branch on Silom Road within 2008. • To build 2-3 branches in 2010, concentrating in Bangkok area, anywhere near a fitness center.Marketing Mix Product: One concern is the ability to create the foods with as low calories as possible but still have high nutritional value. We will have healthy drinks such as fruits and yogurt smoothies. Aside the a la carte, we will offer menu set for customers which the calories are carefully calculated and well-designed by the nutritionist we hired to design our menu. We will use only the freshest ingredients and the highest quality products available. Furthermore, all of our healthy choices will show you the calories in each dish. You will know how many calories you will be consuming for our foods and beverages. Price: “Chlorophyll” is offering the medium price products of approximately 70-120 Baht per dish and 40-60 Baht per drink. Place: The location is in Soi Convent on Silom Road, near “California Fitness” which will be near our main target markets with a plus of the convenience in transportation as we are also near the Sala Deang BTS Station. Promotion: Each month, there will be special discounts based on occasions in each month. Moreover, we have a “Rainbow Month” which will be held on September. This event is provided especially for gays, lesbians, and bisexuals since nowadays, these groups of people are playing a more important in the society and they are more accepted by the society as well. We also have a pilot plan to provide a healthy trip for our customers to upcountry with activities involving how to stay healthy.Target Market Segmentation The market can be segmented into major and minor target groups which are; Major target market: - Male / Female / Alternatives - 20 – 45 years old - Middle to high income Minor target market: - Health conscious customers e.g. Fitness customers - Gay markets (See Appendix 2: Gay Customers) - Dieting consumers - Elders who want healthy foods to create longevity in themselves - Vegetarians
CHLOROPHYLL RESTAURANT BUSINESS PLAN 5 Competition Profile (SWOT Analysis and Fives Force Analysis) SWOT Analysis S – Strengths • New and Creative “Chlorophyll Restaurant” menus will show the calories of each dish and beverage. It is the beneficial to the customers and suitable for people who worry about calorie intake. • Cleanness Our Restaurant will offer extremely clean and healthy food and beverages with finest process and high quality of service. • Good location Chlorophyll restaurant will be located in Soi Convent on Silom Road which is near to our target market. • Universal Our products can be suitably served both Thais and foreigners. • Pure and Natural Our beverages are composed of 100% pure fruit and vegetable; for example, the popular 100% wheat grass juice. • Communication We have our own website; providing information about foods and beverages, at the same time updating news about healthy life to the customers.W – Weaknesses • New to the market with no experience “Chlorophyll Restaurant”, our idea is new to the market due to no current restaurants providing the calories count per dish and neither offer only the healthiest of food and beverage. Therefore, we have no case study about the market and customers we are targeting. • High cost of location The better the location, the higher the cost • Budget controlling at the beginning It’s difficult to cover all the costs from the very beginning or quickly get the return on investment because restaurant business has variable costs at all times. It’s more considered to be “day-to-day” operation. • No parking space available Since the restaurant is located in Soi Convent on Silom Road, the parking space is limited and high cost of parking when parking at the buildings nearby.O – Opportunities • The growing of health-minded and dieting consumers Growing needs of the health-minded consumers and dieting people who want a great, healthy, and dieting meal. • High traffic of the potential customers According to our restaurant location, Soi Convent, Silom Road, is the business area so that there will be the store traffic occurred. Especially during peak
CHLOROPHYLL RESTAURANT BUSINESS PLAN 6 period such as lunch, there are overfull demand with limited number of restaurant; therefore, it could be our opportunity to grab some market share in this area.T – Threats • Bad traffic condition There are consistent traffic jams on Silom road and nearby roads. This is a major issue that will discourage the people to visit our restaurant due to time consuming travel to our restaurant if they were driving. • High competition There is a high competition because the area is surrounded with many beverages kiosks which similarly serve as ours.Five Forces Analysis 1. Bargaining power of suppliers < Low > • In restaurant business, there are plenty of suppliers who sell raw material such as vegetables, meats, and other ingredients that used in the process of producing finished nutrition foods for the customers. Since lots of supplier who sell the same kinds of raw materials, all of these suppliers must compete against each other to get the customers both households and restaurants around Bangkok. They must sell them at the low price because when the restaurant purchases the raw materials, they must be in large quantities. Moreover, if suppliers do not lower their price for the restaurant, they will purchase from other suppliers in the market, which also provide the same types of product.2. Bargaining power of buyers < Medium > • In Silom area, though there are many beverage kiosks and restaurants, the restaurant concentrating on healthy food are very limited for the health conscious customers. There is one main healthy restaurant (corner of California fitness) operated in this business. They do not offer a full meal to their customers. Most of their products are beverages and some snacks for the customers in case they got hungry. When compare to Chlorophyll restaurant, our restaurant sells both nutrition foods and healthy beverages, also having wide varieties of foods available for the customers. • As a result, customers in Silom area will have to come to our restaurant if they preferred to have a healthy meal with reasonable prices. However, because there are other restaurants nearby and some with a lower price but not health conscious, customers may go to those restaurants over our healthy restaurant due to the reason of prices and convenience. 3. Rivalry < Low > • When mentioning about the restaurant that sells the healthy foods to the customers in the Silom area, it is considered to be less number of nutrition foods and beverages businesses. There are not many restaurants that provide healthy foods to the customers. Even though there are some restaurants that sell only the healthy beverage such as the mixture of fruit and vegetable juice for example, SQUEEZE beverage shop.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 7 • There are very few restaurants that do both healthy foods and beverage at the same time. Moreover, the foods and beverage corner at California Fitness Silom branch, they provide few nutrition menus with a very expensive price so the consumers do not want to purchase the foods from them if they have a chance.4. Substitute products < High > • Since Chlorophyll restaurant is in the food industry, there are many substitute products that can provide the same need to the consumers such as other types of food and will replace the demand for our products. For example, the Canned Fruit beverages that are sold in retail shops such as Tipco brand, Unif brand, and Malee brand. For food industry, there are a lot of foods that can substitute the dishes of our healthy foods, which can easily find everywhere.5. Threats of new entrance < High > • If there are some competitors who are willing to operate the same business to Chlorophyll restaurant. It can create some problem for our restaurant because, normally, healthy foods restaurant will target almost the same group of customers. For example; The group of dieting consumers, Customers who are interesting in healthier foods choices, Elders people who want the best foods to create longevity in themselves, Foreigners and Thai people who are health conscious. • So if there was same type of new restaurants open, with the same target market, it will surely cause high threat to our restaurant business. • Moreover, there is no regulation that against the opening of the new nutrition restaurant so it is easy to access. However, they need to follow the regulations those apply to the restaurant business.Market Strategy Advertising Method We are using posters, leaflets, and postcards in the advertising method at the beginningstage of opening the restaurant. These posters are to be posted and leaflets are to be distributedaround Silom area. Since the Silom area are concentrated with offices and also one branch ofCalifornia fitness, posters will be posted of lobbies of buildings in the area as well as thedepartment stores, hospital, and near California fitness as well. As for the postcards, they willbe placed in front of and inside our restaurant, in the beverage kiosks, information counters ofoffice buildings, department stores, and hospital in the area. The next step is to place advertisement in newspapers, spot radio, and through guidelinewebsites since we also have our own website for customers to search for information of therestaurant if they are interested. We are also planning to open other branches as well; the same advertising methodwould also be used at the opening stage of the extending branch.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 8 Timetable for Promotional Campaigns (June, 2007 – June 2008) MonthTask Person Responsible Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Attaching posters and distribute 1 leaflets at the surrounding offices on Silom Rd. Grand Opening 2 (July 1) 10% off discount and free membership 3 (July1-7) "Moms" special menu and 15% 4 discount (August 12) 5 Rainbow Month Sales promotion with California 6 Fitness [100 units of 100 Baht gift voucher with 2 months expiry] Christmas + New Year cards given, as 7 well the coupons "Dads" special menu and 15% 8 discount (Dec. 5) 10% discount for Christmas & New 9 Year celebrations (Dec. 24, 07-Jan. 8, 08) Special menu for "Lovers" 10 (February 14) Special menu for "Family" and games 11 for children (April 7-12) Renovate, improve, and be prepared 12 for the first anniversary (May-June) ECommerce: For online marketing, customers can visit our website by clicking banner ads in many Thai popular websites such as Sanook.com, MThai.com, and etc. or entering the website directly. The website will be providing the company background, menus, promotions, location, reservation, and contact us. • Company Background: shows the background of the Chlorophyll Restaurant and also has some pictures to show the atmosphere of restaurant. • Menu: provides both names and prices of all foods & beverages that are available for serving at the restaurant. • Promotions: shows all promotions of our restaurant to persuade visitors. • Location: shows the clear map and address of Chlorophyll Restaurant. • Reservation: provides the Chlorophyll’s phone number and fax number for customers to make reservations. • Contact Us: will provide for visitors to make some comments or to ask some questions about our restaurant.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 9 As we know that the color of Chlorophyll is “Green”. So we will use green and white asmain colors for the website. The cool color tones (blue, green) on our website not only cancreate relaxing feeling to the site visitors but also means suggests nature (plant life, forests),life, stability, restfulness, and naturalness. (See appendix 3; Sample of Chlorophyll Webpage)
CHL LOROPHYLL RES STAURANT BUSINESS PLAN 10 Ma anage nt Plan emen n Orga anization n Chart Owners Marketing Manageme ent Accountin & ng Financce General Man G nager Chef Waiters*4 Cashier r Beverage Maker Prep Coo oks*2 Kios Beverage sk Maker*2 M Dish Wa asherMana agement t Summar ry 1. Manageme Role ent • Strategic planning and manag ging resourc of the re ces estaurant as a whole. • Also responsible for the op peration of the resta f aurant with assistant of General l Manage er. 2. Marketing Role g • Genera ating and executing mar rketing plan of the business and pu n ublic relatio ons. o Cr reating new campaigns and promo w s otions to attr the cust ract tomers. o Cr reating the brand assocciate and brand aware eness to the customers in order to o ga the brand equity suc as brand loyalty. ain d ch 4. Finance & Accountin Role ng • Responnsible for fin nancial man nagement a planning Control all about th revenues and g. he s and exp penses. • In addi ition, the pperson takin the role will also b an acco ng be ountant resp ponsible for r providi organiz ing, zing, and ma anaging finaancial statem ments in the company. e
CHLOROPHYLL RESTAURANT BUSINESS PLAN 11 Hiring Positions 1. General Manager (1 position, experiences required) • The general manager will be controlling in almost every activities that occur in the restaurant so the general manager must have experience in running a restaurant business. • Responsibilities o Controlling most of the activities in the restaurant. o Advising subordinates in order to improve the quality of their works. 2. Chef (1 position, experiences required) • Chef is one of the most important roles in the restaurant therefore; a chef must have cooking experience because our foods have high quality so it is very important for our Chef to have well-rounded cooking experiences. • Responsibilities o In charge of cooking and managing the kitchen o Cooking the main dish for all customers according to order 3. Prep cooks (3 positions) • There will be three Prep cooks in our restaurant. • Responsibilities o Helping chef prepares the ingredients and assists the chef with easy tasks such as cooking the easy dish such as salad and soup. 4. Waiters (3 positions) • Responsibilities o Working mainly in a service area o Take customers’ orders and serve customers with precision and under an appropriate time. o Waiters should understand and the menu thoroughly in order to give suggestion and answer any questions asked about the menu. 5. Dish washer (1 position) • Working in the kitchen to help cleanings but the main duty is to wash dishes 6. Cashier (1 position, with some accounting background) • Cashier will be working in the restaurant area. She should have some of the accounting background and should have accuracy in receiving payments and giving changes. • Responsibilities o Responsible of the petty cash inside the restaurant and the beverage counter at the end of the day. o Also be an assistant for accountant. 7. Beverage Maker (1 position) • Will be stationed in the beverage counter and will provide soft drinks and blenders for the customers inside the restaurant and the take-out customers. • Beverage blender should be quick, active, and organize in order to serve the customers as fast as possible.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 12 • The beverage blender should also have accuracy in receiving payments from and giving changes to the customers as well. • Duty o Take beverage orders from the take-out customers and in-house customers. o Try to make the drinks as fast as possible with a good quality. o Recommend the drinks to customers in case that the customers were not sure of what to get. 8. Nutritional Expert (Contract) • Nutritionist is essential to our restaurant but will be hired by contract in order to save costs to the restaurant. • Responsibilities o Design the menu based on the nutritional factors and calories in each dish. o Design a few diet plans for various type of customers. o Train a basic course to the restaurant’s employees in order to be able to give some advice to the customers. o Occasionally will be a guest speaker in the health trip which is our future plan.3year Personnel Plan Salaries & Wages / Month Positions Year 1 Year 2 Year 3 No. of No. of No. of Amount Amount Amount People People PeopleOffice Personnel: Owners:- Management 1 12,000 1 12,000 1 12,000- Marketing & PR 1 12,000 1 12,000 1 12,000- Finance & Accounting 1 12,000 1 12,000 1 12,000Restaurant Personnel:- General Manager - - 1 11,000 1 11,000- Nutritionist 1 30,000- Chef 1 9,000 1 12,000 1 13,000- Prep Cook 2 7,000 2 9,000 2 9,000- Waiters 4 7,000 4 8,000 4 8,000- Dishwasher 1 5,500 1 5,500 2 5,500- Cashier 1 7,000 1 7,000 1 7,000Beverage Counter Personnel:- Beverage Maker 1 7,000 1 7,000 1 7,000Beverage Kiosk- Beverage Makers 2 7,000 3 7,000 4 7,000 Total No. of People 14 14 15 Total Payroll per Month 136,500 128,500 135,000 Total Payroll per Year 1,638,000 1,542,000 1,620,000
CHLOROPHYLL RESTAURANT BUSINESS PLAN 13 Facilities and Utilities 1. 1 Beverage counter in front of the restaurant 2. 10 Tables and 40 chairs • 10 vases • 30 table-cloths • 5 extra chairs 3. 1 Kitchen • 70 sets of Silverware (spoons, forks, and knife) • 5 kitchen knives • 3 pans, 3 woks, 5 sets of pot (small, medium, and large size) • 8 ladles • 100 sets of plate and bowl (small, medium, and large size) • 3 large chopping boards • 2 blenders • 2 large freezers • 1 large refrigerator • 5 trays • 70 sets of glass and 40 sets of cup • 1 large rice cooker • 5 sets of mixing bowl for cooking (small, medium, and large size) • 2 large stoves and 2 large ovens • 1 microwave • 1 medium dish washer 4. 1 Store room 5. 2 Restrooms <Men and Women> 6. 1 Service counter 7. 1 Television 8. 2 Telephones and 3 telephone linesValue Chain Management Primary Activities: 1. Inbound logistics • The chlorophyll restaurant will buy and deliver only fresh and clean raw materials and ingredients from the reliable source such as Golden Place farm which always provide the higher quality of fresh vegetable. • We also use the Just-in-time process which means we will stock the raw materials such as vegetables and meats at the right amount (according to the forecasting). Therefore, our foods are always fresh and there is no waste of the inventories. Moreover, we can save more cost. • According to the Just-in-time process, we will deliver the vegetable everyday. For the meats, we will deliver every other day.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 14 2. Operations • Neatly clean all of the raw materials those delivered under the nutrition control in order to prevent the customers from deceases. Moreover, we can serve them with full nutrition remained. • Keep all of the raw materials and ingredients in the right temperature and clean environment. • Carefully cook the healthy dishes under the quality control of the nutritional expert. For example, use only the fresh vegetable in the salad bowl ,mixing the right amount of ingredient in the salad dressing, creating the good looking design dishes in order to appetite the customers more.3. Outbound logistics • After well-prepared dish from the operation process, the server must serve the right dish with the right silverware (spoon, fork, chopstick, or knife) and to the right customer. • For take away dishes, we will provide the special take away packaging to pack the dishes and can be well preserved. • For the smoothies and beverage counter, the take away plastic glasses are available and the clear glass for the in house customers to create more refreshing and relax feeling for them.4. Marketing and Sales • For advertising, Chlorophyll restaurant will promote the restaurant by using posters, leaflets, and website to attract the customers. • For promotion, we will have a special discount or promotion on every special occasion such as Father’s Day, Mother’s Day, Valentine’s Day, Christmas holiday, and New Year. • The marketing and sales department will create the marketing plan for the restaurant. (see Marketing and Sales part)5. Service • The atmosphere of the restaurant must be able to make the customers feel fresh, clean, relax, and healthy. • The employees must dress properly and polite. • The servers must have the service mind. For example, able to handle the customers the difficult situation like complain from the customers and try to satisfy their needs. The most important thing is “smile” at all time. • Also have a quick billing system so that the customers will not have to wait for too long.Supporting Activity Information Technology • Create the website for the convenience of the customers for information of the restaurant. • Also setting up the billing system for the quicker and more convenience of the customers.
CHL LOROPHYLL RES STAURANT BUSINESS PLAN 15 Tota al Quality y Manage ement (TQ QM) Total quaality manag gement is the worldw wide system that is w m widely used by many d ycompaanies around the world So we wil apply this system to our restaur d. ll s rant in order to manage r ethe wh system of our rest hole m taurant to be more effec e ctive and re eliable for al customers so that we ll ecan m make sure tha we provid our custo at de omer with hhigh standar food and beverage se rd erved. Our restau urant will d determine th core of th system f he his from the top managem p ment level to othe bo ottom in ord to make the system effective an reliable f the custo der nd for omers. Moreover we implem r, ments the T Total Quality Managem basing on the thre important y ment ee tbases which are 1. Continuou improvem us ment • Using the qualit control process by improving the proc g ty y cess of pro oducing thee finishe food sinc the begin ed ce nning stage to the final stage. 2. Employee involvemen e nt • Allow all employ w yees to parti icipate in th TQM system by imp he proving their morale. r 3. Customer satisfaction r n • Focus sing on bot eat-in an take-out customers in order to decrease the defects th nd o s finishe dish as m ed much as pos ssible. To crreate better customer satisfaction on our food d and beeveragesQuali ity • Our Chlo orophyll reestaurant w orders raw materials as veg will getables, meat, fruits, m , seasoning etc. from the famous Thai orga g s anic supermmarket, “Gollden Places which is s,” s one of the supermar rkets that w provide clean and fresh mate will erials in ord to make der e sure that, our materia are of the highest qu als e uality in org ganic materi ials. • Moreover raw mater r, rials that we will use ar 100% org e re ganic. • As a resu of the best quality materials t ult that our Chhlorophyll re estaurant w use will will l leads to th high stan he ndard proces of makin each dish finely se ss ng hes erved to the customers.TQM Procedur res Diagram Raw Materials Fi inest Finished d Procuremen nt Prod duction Process Foo & Beverag od ge Useful Inf formation
CHLOROPHYLL RESTAURANT BUSINESS PLAN 16 Cost • In order to control the cost for our Chlorophyll restaurant operation, we will implement the “Zero Defects” plans in order to lessen the cost of our operation. • Therefore, there will be only a small amount of unnecessary wasted materials or defected in finished products in cooking and making of beverage. • By which our kitchen operation and beverage counter must understand and pay attention to the customers order in order to cook and make the right foods and beverages to the customers’ orders.Morale • In order to motivate employees to stay with us and to do a good work by making them feel like they are a part of the family within the restaurant. Whereby they would feel comfortable working in the restaurant. Moreover, by providing them with benefits that they deserve and some incentives would also create happiness in working with the restaurant. The incentives include 1) increase in salary for every employee in the restaurant, 2) setting up the “Employee of the month award” in order to set some standard and to show them that we appreciate their efforts and good work.Government Regulations Consumer protection Due to our business is to provide a healthy food; therefore we have to provide it notonly with good quality and full of nutrition but also it must be clean and safe for the consumers.Juristic Person Registration In order to operate easier, we would register our Chlorophyll Restaurant as a juristicperson. This will aid us especially with the financial management such as applying for loanfrom the bank, payment, etc.Commercial License Because we are opening a restaurant business, we need to apply for the commerciallicense from the government to operate our business. The application for the commerciallicense needs to be done within 30 days starting from the day of operation.Protection of Intellectual Property Rights Trademarks We will register our company trademark to identify the origin of a company or todistinguish it from other companies.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 17 Financial Plan Financial Assumption 1 Beginning Working Capital (Cash) 1,000,000 Baht 2 Purchases of raw materials are paid by Cash Purchase 60% of Sales 3 Fist-in First-out (FIFO) Inventory System 4 Mark Up: Food 50% of Cost Healthy Drink 100% of Cost Fruit Juice & Smoothies 200% of Cost 5 Depreciation Expense - Straight Line Method 6 The estimated useful life of the assets: Equipment 20 Years Furniture & Fixture 10 Years 7 Monthly Expense : General & Administrative Employee Benefits 10,000 / month Rental Expense 40,000 / month Insurance Expense 450 / month Depreciation Expense 4,871 / month Maintenance Expense 1,200 / month Office Supplies 1,000 / month Transportation 2,100 / month Telephone 800 / month Other 1,000 / month Utilities Electrical 6,400 / month Gas 8,000 / month Water 1,500 / month Marketing Selling & Promotions 5% of Sales Advertising Expense 3% of Sales 8 Interest Rate (Siam Commercial Bank) 11.375% Annually 9 Income Taxes 30% Annually 10 Annual Growth Rate Year 1 4.0% of Sales Year 2 3.0% of Sales Year 3 1.0% of Sales Year 4 0.3% of Sales
CHLOROPHYLL RESTAURANT BUSINESS PLAN 18 Year 5 0.0% of Sales 11 Dividend Payout 40% 12 Loss from operation will be financed by cash from shareholders according to the proportion of their investmentFinancial Statements 1. Financial Ratios 2. Capital Budgeting 3. Income Statement 4. Balance Sheet 5. Statement of Cash FlowChlorophyll Restaurant Ratios Units Measure Year 1 Year 2 Year 3 Year 4 Year 5Short-Term Liquidity % Cash to Current Assets 99.45% 99.61% 99.65% 99.69% 99.72%Operating Efficiency (Asset Management) Times Total Assets Turnover 7.35 6.03 5.76 5.29 5.03 Times Fixed Assets Turnover 21.88 24.22 28.60 33.26 39.11Operating Profitability % Gross Profit Margin 40.59% 40.59% 40.59% 40.59% 40.59% % Operating Profit Margin 11.66% 15.09% 14.88% 14.00% 14.06% % Net Profit Margin 7.60% 10.19% 10.23% 9.80% 9.85% % Returns on Investment 55.86% 61.44% 58.88% 51.86% 49.56% % Returns on Equity 87.43% 72.11% 58.88% 51.86% 49.56%Financial Risk (Debt Management) Times Long-Term Debt to Equity 0.57 0.17 0.00 0.00 0.00 Times Equity to Total Debt 1.77 5.76 - - - Times Fixed Assets to Equity 0.53 0.28 0.20 0.16 0.13(See Appendix 4; Ratios in graphical form of Net Profit Margin, Returns on Investment, andReturns on Equity) The payback period of the Chlorophyll Restaurant is 1.46 years.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 19 Chlorophyll Restaurant Capital Budgeting Estimates of Construction & Preopening Costs Amount Total (Baht)Fixed Assets : Kitchen Equipment - Kitchenware 40,000 - Refrigerator 20,000 - China, Silverwares & glasses 18,000 - Storage shelves and cabinets 3,400 - Other 2,500 83,900 Beverage Counter Equipment - Juicer*3 9,000 - Blender*3 5,400 - Other 4,000 18,400 Other Equipment - Cash Register 20,000 - Office Equipment 24,000 - Beverage Kiosk *2 20,000 64,000 Total Equipment 166,300 Dining Room Furniture - Tables & Chairs 38,000 - Counters 22,000 - Other 10,000 70,000 Interior Finishes - Construction & Decoration Cost 360,000 - Air Conditioner 54,000 - Television 6,000 - Sound System 19,000 - Phone System 7,400 - Other 1,000 447,400 Total Furniture & Fixture 517,400 Total Fixed Assets 683,700Current Assets Prepaid Rent 40,000 Working Capital (Cash) 1,000,000 1,040,000Pre-Opening Expenses Construction - Rental Deposit 120,000 - Rental for Construction Period (1 month) 40,000 160,000 Legal fees - License of running a Food Business 10,000 - Trademark Registration 3,200 13,200 Marketing - Advertising 30,000 - Public Relations 15,000 - Opening Parties 22,000 67,000 Personnel - Chef / Kitchen Management 20,000 - Employee Training 28,000 48,000 Total Pre-Opening Expenses 288,200 Total Initial Capital 2,011,900 Chlorophyll, Capital 1,050,000 Finance by Long-term Debt 961,900
CHLOROPHYLL RESTAURANT BUSINESS PLAN 22 Chlorophyll Restaurant Statement of Cash Flows For the year ended June 30 (in Baht) Year 1 Year 2 Year 3 Year 4 Year 5Cash Flows from OperationsNet Income 1,037,639 1,439,046 1,472,447 1,445,776 1,476,288Depreciation Expense 60,055 60,055 60,055 60,055 60,055Increase in Raw Materials -6,805 -207 -70 -259 0Total Cash Flows from Operations 1,090,889 1,498,894 1,532,431 1,505,572 1,536,343Cash Flows from InvestingChange in Equipment -166,300 0 0 0 0Change in Furniture and Fixture -517,400 0 0 0 0Total Cash Flows from Investing -683,700 0 0 0 0Cash Flows from FinancingChange in Long-term Debt -291,070 (324,179) (346,650) 0 0Change in Capital 0 0 0 0 0Cash Dividends -900,760 -630,370 -967,201 -1,158,631 -1,285,694Cash from Shareholders 0Total Cash Flows from Financing -1,191,830 -954,549 -1,313,851 -1,158,631 -1,285,694Net Change in Cash Balance -784,641 544,345 218,580 346,941 250,650Add : Beginning Cash Balance 2,011,900 1,227,259 1,771,604 1,990,184 2,337,125Ending Cash Balance 1,227,259 1,771,604 1,990,184 2,337,125 2,587,775Financing Chlorophyll Restaurant has total investment of 2,011,900 baht. Out of this amount, weare using capital of 1,050,000 baht and finance the rest of 961,900 baht by taking a loan fromSiam Commercial Bank which we are estimated to borrow at the ceiling interest rate of11.3750% (MRR 7.3750% + Premium 4.00%) The long-term debt of 961,900 baht is to be repaid through an installment plan whichwe would be able to pay of the amount within 3 years as following table; Interest Outstanding Balance Year Installment Principal ฿961,900 11.375% 1 400,486 109,416 291,070 670,830 2 400,486 76,307 324,179 346,650 3 400,486 39,431 346,650 0
CHLOROPHYLL RESTAURANT BUSINESS PLAN 23 Conclusion The key to success of Chlorophyll Restaurant is the innovation that focusing on thehealth conscious customers and providing a more direct alternative to customers in taking careof their health through food and beverage. Many times, customers try to be health consciousbut do not have any knowledge, or idea of what they should eat or how to plan their diet.Chlorophyll is their solution! In additional, we are selling “Chlorophyll Water” which is known to be good theirhealth in helping the system to work better e.g., help purifying blood, enhance digestion, speedsup recovery from illness, etc. We also plan that in the future, we will arrange a healthy trip to our customers in orderfor them to be able to take sometime out of the competing and stressful city to upcountry, in thenature, relax and have activities concerning of their health with a group of people with theshared interests of keeping themselves healthy. Chlorophyll restaurant is also provides an easy access to information about therestaurant which is our location and the website that we created for the convenience of ourcustomers. Based on our financial estimation, we are generating the net profit in the first year withthe payback period of approximately 1 year and 6 months which is quite good consideringhaving to pay off the long-term debt at the same time whereby this debt would be paid off within 3 years. Therefore, based of our information gathered, researches, planning, and analysis, westrongly believe that “Chlorophyll Restaurant” is a potentially successful business.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 24 Appendices Appendix 1: Chlorophyll Drinks & Its benefits Appendix 2: Research on Gay Customers Appendix 3: Sample of Chlorophyll Webpage Appendix 4: Graphical form of Three Financial Ratios
CHLOROPHYLL RESTAURANT BUSINESS PLAN 25 Appendices Appendix 1: Chlorophyll (The article from Wikipedia website) “Chlorophyll is a green pigment found in most plants, algae and cyanobacteria. Itsname is derived from ancient Greek: chloros = green and phyllon = leaf. Chlorophyll absorbslight most strongly in the blue and red but green color of chlorophyll-containing tissues likeplant leaves.” (www.wikipedia.com)Chlorophyll and photosynthesis Chlorophyll is vital for photosynthesis, which allows plants to obtain energy from light.Chlorophyll molecules are specifically arranged in and around pigment protein complexescalled photosystems which are embedded in the thylakoid membranes of chloroplasts. In threecomplexes, chlorophyll serves two primary functions. The function of the vast majority ofchlorophyll is to absorb light and transfer that light energy by resonance energy transfer to aspecific chlorophyll pair in the reaction center of the photosystems. Because of chlorophyll’sselectivity regarding the wavelength of light it absorbs, areas of a leaf containing the moleculewill appear green.Benefits of the Chlorophyll Drinks The Chlorophyll drinks are a grate source of varied vitamins, minerals, chlorophyll,micronutrients and antioxidants. Being highly alkaline, they also help to boost the body’senergy levels and remove toxins from the lymph system whilst encouraging new cell growth.The following shows the ingredients of chlorophyll and other green drink products andhighlights some of the benefits of each element: • Kamut Grass - Can decrease cholesterol levels, lead to weight loss and add protein to the diet. • Alfalfa Sprouts - Also helps to lower cholesterol, shift weight, and is also a source of protein and folate. • Broccoli - Strong anti-cancer ingredient. Also helps to cleanse and strengthen the blood, boost the immune system and improve digestion. Broccoli helps to lower cholesterol and adds vitamins c, a, b6 and b2, and the minerals folate, iron, potassium and magnesium! • Dandelion Greens - Excellent at warding off cancer, strengthens the immune system and also helps with weight loss and cholesterol levels. Great source of iron and calcium. • Kale - Also anti-cancer, strengthens blood, strengthens immunity, lowers cholesterol, contributes to weight loss and contains Vitamin C, A, Iron, Calcium, Potassium, Magnesium.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 26 • Kelp - Strengthens the blood and immune systems while lowering cholesterol! Importantly, also assists in breakdown of protein and regeneration of blood cells. Also a source of folate, Iron, Calcium, Magnesium and Iodine.• Okra - Anti-cancer, Strengthens blood, Strengthens immunity, Improves digestion, Lowers Cholesterol, Weight Loss, Source of Fibre, Vitamin C, B1, B6, Folate, Iron, Calcium• Parsley - Anti-cancer, Strengthens blood, Strengthens immunity, Lowers Cholesterol, Weight Loss, Vitamin C, A, Folate, Iron• Spinach - Anti-cancer, Improves blood pressure, Strengthens blood, Strengthens immunity, Improves digestion, Lowers Cholesterol, Weight Loss, Source of Fibre, Vitamin C, A, B2, B6, Folate, Iron, Calcium, Potassium, Magnesium• Tomato - Anti-cancer, Strengthens blood, Strengthens immunity, Lowers Cholesterol, Weight Loss, Vitamin C, A, Folate, Iron, Potassium• Watercress - Watercress has strong cancer fighting capabilities and can also help to reduce cholesterol and aid with weight reduction. It is a good source of vitamins A and C.• Oat Grass - As with watercress, but also contains a high level of fibre, iron and magnesium.• Soya Bean - Soya bean is a great source of protein and give the immune system an almighty kick!• Sprouts - Sprouts contain literally hundreds of condensed vitamins, minerals and micronutrients.• Celery - Lowers Cholesterol, Weight Loss, Source of Fibre, Vitamin C, Folate• Cabbage - Anti-cancer, Strengthens blood, Strengthens immunity, Weight Loss, Source of Fibre, Vitamin C, Folate• Bilberry Leaves - Improves blood sugar control in diabetics, Lowers triglycerides, Strengthens capillaries, Protects against atherosclerosis, and blocks E. coli bacteria• Boldo - Helps indigestion, Protects the liver from toxins, has anti-inflammatory and anti-microbial properties• Goldenseal - Anti-fungal and Anti-bacterial properties• Lecithin - May lower cholesterol, may protect liver• White Willow - Anti-inflammatory• Slippery Elm - Aids irritable bowel syndrome, gastritis, heartburn, and haemorrhoids• Marshmallow Root - Good for digestive and respiratory problems• Turmeric - Anti-inflammatory, works on indigestion and gall bladder disease• Peppermint - Treats colicky pain, irritable bowel syndrome, indigestion, gall stones, candida, yeast infections, and relieves mucus congestion• Corn Silk Diurectic - rich source of potassium, helps disorders of the kidneys, bladder and urinary tract, and liver• Couch Grass - Improves sore throats, difficult urination and kidney stones• Pau d’Arco - Immune stimulant, effective against bacterial, fungal, viral, parasitic, and yeast infections• Rosemary - Potent antioxidant, antiseptic, and antispasmodic. Used for nervous disorders upset stomach, headaches, pain, strains and bruises• Thyme - Antiseptic, treats respiratory problems such as asthma, allergies and coughs, as well as digestive problems and headaches
CHLOROPHYLL RESTAURANT BUSINESS PLAN 27 • Black Walnut Leaf - Anti-fungal and anti-parasitic, relieves constipation, and may help eliminate warts. Helps balance blood sugar levels, burn toxins and fatty deposits, and has anti-cancer effects. • Wintergreen - Helps headaches, arthritis and muscle pain. Reduces inflammation and stimulates circulation • Celery Seed - Reduces blood pressure, eliminates arthritis, gout and kidney problems. Diuretic and antioxidant properties • Dandelion Diuretic - cleans blood and liver, increases bile production, improves kidney, spleen, pancreas, and stomach function • Lemon Grass - Aids in digestion, reduces fevers, flu, headaches and intestinal irritation • Meadowsweet - Tightens tissues, promotes elimination of excessive fluids, anti- inflammatory. Works on colds, flu, nausea, digestive disorders, diarrhoea, muscle cramp and ache • Papaya - Aids digestion, eliminates heartburn, indigestion and inflammatory bowel diseases • Plantain Diuretic - treats indigestion and heartburn • Sage - Stimulates central nervous system and digestive tract • Rosehips - Antioxidant properties, fights inflammation, bacteria and fungi. Relaxes stomach, stimulates circulation and digestion, and detoxifies the liver • Parsley - diuretic, anti-cancer effects, stimulates digestion, helps kidney, liver, stomach, lung and thyroid function. Appendix 2: GAY CUSTOMER Gay, Lesbian, Bisexual and Transgender Health<GLBT> Definition Gay, lesbian, bisexual, and transgendered (GLBT) people are a diverse group of peoplewho have struggled with issues of sexuality and gender identity, and may therefore feel a senseof kinship. GLBT people are diverse in terms of race, ethnicity, age, education, politicalaffiliation, income, and the degree to which they identify with other GLBT people.Sexual Orientation Sexual orientation refers to ones sexual and romantic attraction. Those whose sexualorientation is to people of the opposite sex are called "heterosexual", those whose sexualorientation is to people of the same sex are called "homosexual" (or lesbian or gay), and thosewhose sexual orientation is to people of both sexes are called "bisexual." The term "sexualpreference" is misleading because it implies that this attraction is a choice rather than anintrinsic personal characteristic. Sexual orientation is not necessarily the same as sexualbehavior.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 28 Gays cares about health “Gay and bisexual men are as diverse as the entire community. Like the generalpopulation, gay and bisexual men vary in terms of age, income, cultural background, affiliationwith the gay community, and education. Also like the general population, gay and bisexual menare varied in their physical activity levels, sexual behaviors, diet, health history, genetics andother factors that affect overall health.” According to this paragraph we may conclude that • Gay and bisexual men extremely concern about their health condition. • Gay and bisexual loves to have good characteristic by using their shape in order to show how healthy they are. • Gay and bisexual will use any mean necessary method that can lead them having the better healthy condition. Another theory is that gay men have different ideals about physical appearance and,similar to women, feel pressured to stay thin and other studies have backed this theory.Researchers found that were active in recreational sports that mostly included other gay or bi-sexual men, had an elevated risk of having an eating disorder while those who felt closelyconnected to the gay community had a lower risk. This supports another theory that acceptancein the community boosts men’s self-esteem and buffers them from pressure to stay thin.Thai Gay segment Target market characteristic < Gay > • Moreover; according to “Health concerns and health care provision for Gay men is affected by a number of issues specific to the Gay community. Stigma and prejudice still persists in many societies about Gay men and research indicates that only between 18% to 49% of Lesbian, Gay, Bisexual and Transsexual people disclose their sexual orientation” o Due to the research, it indicates that there are more number of gay o Because 18 percent to 49 of gay will not disclose their sexual orientation which is a lot of portion • Gay men tend to be image conscious. Moreover, they have higher purchasing power than family men because they don’t have to provide for children • According to the internet secondary data research there are 6 activities to Gay Bangkok that they would like to do 1. Homey love-in house loving 2. Night life 3. Over dressing 4. Trendy – personality 5. Conservative 6. Healthy loves –Healthy things
CHLOROPHYLL RESTAURANT BUSINESS PLAN 29 The gay consumer was not the new born segment but it was the interesting segmentbecause this segment has clear profile and lifestyle while the most interesting factors wasmiddle – up to high level gay segment because they had high income and they also lovesbeauty. They often bought brand name products. They had good taste, dress so fashionable. Thesociety are more acceptable about gay society this group of people are people who have goodcareer, good reputationIn this case we will focus on middle – up to high income gay segment • As a result it creates one interesting new target customer for our restaurant • So they are good target customer for our restaurant because they have high income and they would like to look good because they likes beauty • They will definitely consume healthy food and beverages because it offers them a lot of benefits • If they consume our food and beverage which offer low calories with high nutrition, they will surely have the better shape which leads to the Gay segment who loves to have good characteristics • Also the price of our product is not the problem for Gay customer because we are mainly focus on the middle to high income gay.Moreover in Thai gay consumer segment • Thailand’s gay population is increasingly being acknowledged as big spenders • Thailand’s gay market remain untapped • As a result, it present good opportunity for our restaurant to capture these untapped market, also there are a lot of gay consumer in BKK silom area • Due to our restaurant located at Silom road which near Phatpong R., known as the places that has numbers of gay • So our restaurant could attract these types of customer who mainly care a lot about their health condition and their body shape. Apparently match with our restaurant that always provide high quality of food and beverages with low calories and high nutrition values to the all types of customer.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 30 Appendix 3: Sample of www.chlorophyllrestaurant.com website pages Chlorophyll “Home” page “Menu” page, containing several types of food serving in the restaurant
CHLOROPHYLL RESTAURANT BUSINESS PLAN 31 Sample of the “Main” courses in the Menu which will show menus serving in our restaurant along with calories and price. Some Promotion that our restaurant will offer in different occasions will be put in this webpage, “Promotion”. This page will be updated every time we have a promotional campaign.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 32 The “Company Background” is telling the audience a little something about our restaurant with some photo gallery for them to look at. “Location” page is showing the map of the location of the restaurant.
CHLOROPHYLL RESTAURANT BUSINESS PLAN 33 “Reservations” page is telling the information of how to make reservation at our restaurant. This page would be more useful in the future when we establish an online reservation.“Contact Us” page is for the audiences or customers to give us some feedback or suggestion so that we can improve ourselves and set a higher standard.
CHL LOROPHYLL RES STAURANT BUSINESS PLAN 34 Appeendix 4: G Graphs showing t the Net P Profit Mar rgin, Retu urn on Investment, a and Retu urn on Eq quity % Net Prof Margin fit n 12.00% 10.00% Year 1 8.00% Year 2 6.00% Year 3 4.00% Year 4 2.00% Year 5 0.00% Year 1 Y Yea 2 ar Year 3 Year 4 Year Y 5 %R Returns on Investm n ment 70.00% 60.00% 50.00% Year 1 40.00% Year 2 30.00% Year 3 20.00% Year 4 10.00% Year 5 0.00% Year Y 1 Yea 2 ar Year 3 Year 4 Year Y 5 % Returns on Equity y 90.00% 80.00% 70.00% Year 1 60.00% Year 2 50.00% 40.00% Year 3 30.00% Year 4 20.00% Year 5 10.00% 0.00% Year Y 1 Yea 2 ar Year 3 Year 4 Year Y 5
CHLOROPHYLL RESTAURANT BUSINESS PLAN c References Information on ‘Chlorophyll’ • http://www.energiseforlife.com/green_drink_benefits.php • http://en.wikipedia.org/wiki/Chlorophyll • http://www.herbalistprograms.com/chlorophyll.htm • http://allonhealth.com/barleylife/more-than-multivitamins.htmInformation on ‘Gay Customers’ • http://www.metrokc.gov/health/glbt/ • http://www.positioningmag.com/Magazine/Details.aspx?id=32875 Translated essay from Positioning Magazing <April, 2005> By Mr. Suphatcha Sukchu Mr. Atthasit Hmeonmard • http://188.8.131.52/search?q=cache:ASTaIIL_qHgJ:www.soundshealthy.com/+gay%2 Bhealthy+food&hl=en&ct=clnk&cd=20&gl=th • http://menshealth.about.com/od/gayhealth/a/Gay_Concerns.htm • http://184.108.40.206/search?q=cache:Z6u1BjGVfFUJ:www.nationmultimedia.com/sear ch/page.arcview.php%3Fclid%3D2%26id%3D120048%26usrsess+gay+marketing&hl= en&ct=clnk&cd=4&gl=thInformation on ‘Interest Rates’ • http://www.bot.or.th/bothomepage/databank/Financial_Institutions/interestrate/interest_ e.asp (October 19, 2007)