Best Burger Final

S G B I Z S E RV I C E S , I N C . Steven Gara 305.491.0417www.bestburgersandmore.com and info@bestburgersand more.com

Business Plan / Investment Prospectus Non-Disclosure Agreement By proceeding within this document (the “Plan”), you, any company, entity or organization that you are employed by or are otherwise the agent of, and all other employees thereof (collectively, “Recipient”), and Best Burgers & More™ (BEST BURGERS & MORE™) agree that: The plan has been submitted by Best Burgers & More™ to Recipient solely for the purpose of evaluating a potential investment by Recipient in Best Burgers & More™ . The plan is not for use by any other person(s) or for any other purpose, and may not be reproduced, disseminated or otherwise disclosed to any person(s) other than any employees or agents of Recipient, including, without limitation, any legal counsel or accountants of Recipient who have a need to know the contents of the Plan in connection with the evaluation of a potential investment in Best Burgers & More™ (collectively, “Representatives”) who agree to the confidentiality provisions herein. Recipient shall be responsible for any and all acts of its Representatives. Recipient agrees to hold in the strictest confidence, and not to use or disclose to anyone other than the employees of Recipient, its Representatives and Best Burgers & More™, the information contained in the Plan or supplied to the Recipient, orally or in writing, by Best Burgers & More™ (the “Confidential Information”). Confidential Information includes, without limitation, concepts, cost data, techniques, designs, work in progress and other technical know-how; the identity of customers, suppliers, and subcontractors of Best Burgers & More™; financial, marketing and other business information; or any other trade secrets of Best Burgers & More™ disclosed by Best Burgers & More™ to Recipient or its Representatives; or any summaries, analyses or other documents based thereon. Confidential Information further includes any information Best Burgers & More™ has received from others, which Best Burgers & More™ is obligated to treat as confidential or proprietary. If the Recipient has any questions as to what comprises Confidential Information, the Recipient agrees to consult with an officer of Best Burgers & More™ prior to making any disclosure thereof. It is further agreed that any violation of this agreement by the Recipient or its Representatives will cause irreparable injury to Best Burgers & More™ and that Best Burgers & More™ shall be entitled to extraordinary relief in court, including, but not limited to, temporary restraining orders, preliminary injunctions, and permanent injunctions or other equitable relief. If court proceedings are required to enforce any provision or remedy any breach of this agreement, Best Burgers & More™ shall be entitled to an award of reasonable attorney’s fees incurred in connection therewith. The laws of the State of Florida shall govern this agreement. If any provision of this agreement is void or is so declared, such provision shall be severed from this agreement, which shall otherwise remain in full force and effect. This business plan does not constitute an offering. Any offering will be made by a definitive offering agreement. This plan has been submitted on a confidential basis solely to determine whether selected individuals or organizations have an interest in making an equity investment.2

Contents 2 Business Plan / 18 Competition Investment Prospectus Non-Disclosure Agreement 19 Competitive Landscape 4 Executive Summary 19 Innovative Marketing 5 Business Overview 19 Keys to Success 5 Business/Investment Offering 21 Management Summary 6 Company Mission 22 Five Forces Analysis Standard Forces Model 6 Objectives 23 Sales Plan 7 Services and Offerings 23 Sales Channels / Marketing Strategies 7 Market Assessment 23 Direct Marketing 7 Market Opportunity 23 Social Media Networks 8 Overview 23 Social Media ROI Experience 8 Expansion Plans 24 Mobile Coupons 9 Marketing Data 24 Email Marketing 9 Restaurant Statistics 25 Customer Database 9 Hamburger Market Penetration 26 SWOT Analysis 11 Local Market 27 Strengths 11 Local Trends (Florida) 27 Weaknesses 12 Non-Local Trends (Industry) 27 Opportunities 12 Industry Trends 27 Threats 13 Industry Statistics 28 Financial Summary 14 Market Demand Drivers 14 Quality Food 14 Unique Offering 14 Location 15 Product Diversity 15 Product Volume 15 Strategic Alliances 15 Management Team 15 Positive Public Relations 15 Cause-Related Marketing 16 Barriers to Market Entry 16 Capitalization 16 Marketability 16 Industry Expertise 17 Alliances3

Executive Summary Best Burgers & More™ is an innovative Best Burgers & More™ wants to concept which is inspiring for the be kind to our neighbors. We will mature palate and exciting for the accomplish this by buying products youthful protein appetite. At Best locally that will essentially help the local Burgers & More™ we like to call market grow and flourish. Our main goal ourselves the Champions of Burger is to offer a fantastic product, at a great Diversity. We offer exceptional price and captivate repeat business. hamburger offerings including exotic Best Burgers & More™ is seeking protein varieties. Our pricing is inline $500,000 in capital for startup with traditional restaurants but with and facility costs. Steve Gara, a Best Burgers & More™, that is what our proven business leader, will be customers will obtain, The Best Burger the administrator and owner in and we will prove that it is ‘All about the this endeavor. Mr. Gara will be the Burger’. deciding factor regarding operations, The burger business has been around management and assuring the quality for generations; however the concept of all ingredients and products. of the “new” burger has only been We have the vision, we engage in the introduced recently. People are craving concept and we have the knowledge different types of food these days. This and experience to successfully make is evident by numerous food shows that Best Burgers & More™ an innovative are overtaking cable television and even force in the burger business. We will be peaking within prime time with shows the Champions of Burger Diversity. like Hell’s Kitchen and Top Chef. With that, the market is overwhelmed with people that want to try new culinary experiences. Best Burgers & More™ will be that trendy establishment. We intend on expanding the elite burger niche the same way Starbucks did for coffee. Individuals want “new” and “unique” offerings and Best Burgers & More™ will provide a new market for burgers in the South Florida area. Best Burgers & More™ will offer organic produce when available and also be a “green” restaurant which is not only environmentally responsible but will attract a certain demographic that will choose our restaurant because of our policies of trying to maintain a minimal carbon footprint. We will be known as the restaurant that cares about our community and The Green Initiative sells.4

Business Overview Best Burgers & More™ will be an Steve Gara is the sole owner of Best innovative quick, fast gourmet casual Burgers & More™. There are no other establishment with a focus of bringing individuals or groups that have the healthy yet tasteful meal choices to the right to claim an ownership stake in fast growing specialty burger [or use the organization. Ivy-educated with a artisan burger] industry. The restaurant strong business acumen and a resume will offer a variety of meat choices in an that is filled with business success effort to capitalize on consumer tastes in a variety of industries, Mr. Gara is that are trending towards protein- seeking a cash infusion of $500K based, healthy food choices. In addition from an investor or investment group to the innovative, healthy primary that shares in his vision for market course meal choices, the side items leadership, profit and achievement including drink options will also follow this healthy directive. Based in south Florida, the restaurant is set for market entry during once sufficient capital is obtained with the long-term goal of regional expansion followed by national franchising and expansion. Business/Investment Offering Best Burgers & More™ offers a strong investment opportunity. With proper capitalization profits will be seen in year two and provide a solid revenue stream moving forward. Best Burgers & More™’s primary exit strategy is acquisition by a regional or national restaurant chain.5

Company Mission Objectives • Develop a template for long-term expansion. South Florida will be What follows is a listing of the key the initial point of market entry. corporate objectives for Best Burgers & More™. Management will work diligently to develop a template in Miami that can • Obtain sufficient capital financing be layered into other sectors of the to initiate and sustain operations state and nation. through Year Three. • Successful market entry. Strong • Become the champion of burger marketing that communicates clearly diversity. The market is ripe for the value of the Best Burgers & an entity that offers protein-based More™ brand along with a menu burgers, paired with premium fresh that resonates with the targeted and superior quality ingredients audience will be vitally important for that taste great and meet the market entry. budgetary constraints of persons in the targeted audiences. With • Drive profits. In the restaurant that being said, one of the primary industry, there is a fine line between objectives for Best Burgers & More™ profits and losses. With this in mind, will be to satisfy this market niche in management will work diligently to a manner that promotes long-term manage resources in a manner that brand loyalty, profit and growth while ensures profit and long-term viability. introducing new burger variations • To expand regionally and/or and building a solid customer base. nationally and replicate our business Best Burgers & More™ will also model tailored for new markets. be community oriented, buying ingredients and produce locally and respecting recycling initiatives and utilizing “green” environment practices where achievable. • Create a viable, protein-based fast serve brand. To date, the vast majority of burger options are beef. While beef will be offered through Best Burgers & More™, the restaurant will look to introduce a variety of other protein-based burger options such as bison, ostrich and less common beef options such as short rib and Kobe. Best Burgers & More™ will offer a “Burger of the Day” to entice customers to experience these unique items.6

Services and Offerings Best Burgers & More™ is an innovative Market Opportunity offering that combines old trends with The hamburger business by itself is a new ideas to create a truly diverse huge industry. The U.S. purchased 9.5 burger offering. million burgers in 2009 [ndp group]. Our business model is to create a That represents a 12% in sales from specialty hamburger restaurant offering. 2005 sales. Based on their research, Our restaurants will feature unique NDP Groups stated that hamburgers variations on the hamburger. These and sandwiches were the only food variations include select cuts of meat, categories to post servings growth in choice toppings, local produce and 2009 and said it is one of the most fresh baked buns. resilient food categories even within an A sampling of our menu items economic decline. In fact, 85% of all is included in Appendix A of this consumers eat burgers at least once a document. month. Market Assessment According to Laurence Our market assessment as a whole is based on independent research for the Kretchmer, a partner U.S. Our market opportunity will be at Bobby Flay’s Burger defined by local and regional trends. For the purposes of establishing the Palace, the reason for relevant market for Best Burgers & the wave of higher-end More™, this section will focus on the burgers is simple: “It’s the specific industry placements and their common value ratios, as well as other great American sandwich. metrics, to provide benchmark data Everybody loves burgers.” for comparison to similar restaurant offerings. Burger Consumer Trend Report 9/20097

Some of the top restaurant trends include: Overview • Locally sourced meats • Locally grown produce Expansion Plans • Locally produced beer and wine Initial expansion plans will include • Organic items adding services to our existing locations. Services such as catering • Newly fabricated cuts of meat and delivery will enhance our “Burger (Denver steak, pork flat iron etc) Diversity” offering and will be used as a • Simplistic back-to-basics items (such model for future locations. as hamburgers) Our secondary expansion plans will be • Sustainability and Green policies, comprised of opening new locations procedures and practices. based on the enhanced successful • “Farm to Fork” trends including model of our first location. Expansion quality cuts of protein such as “Grass areas will be ones that are not heavily Fed Beef” saturated with specialty burger outlets This is where we define ourselves with or ideally ones that do not have any great opportunity by using specialty specialty burger restaurants. meats and local options when available. When it comes to burgers, 75% of consumers rank the quality of meat as Value Proposition the first important attribute. Our offering is unique in the sense that we provide a combination of products not currently offered in our launch market. What makes us unique? Our Motto is “It’s all about the Burger”™, which makes us a prominent brand in the Burger market. It is the Core product. Various Meats and Vegan proteins used: Soy, Beef, Lamb, Ostrich, Bison, Chicken just to name a few. Daily “Burger of the Day” – always an innovative selection.8

Marketing Data The increased popularity of the Hamburger Market hamburger has created many niche Penetration markets while dominating standard Hamburger specific restaurants markets in terms of sales and volume. comprise the second largest market A reduced economy has also fueled opportunity within quick-service and the sale of hamburgers as restaurants casual dining. With restaurant sales have created gourmet versions of declining, those in the industry knew the hamburger to maintain business they would have to provide some new as customers became less-apt to offerings that would bolster sales while purchase more expensive entrées. This still attracting new customers. Most created the specialty market and it has of these new offerings were comfort proven itself to be a market sector that foods, meaning they are food offerings is a mainstay. that with a strong appeal and familiarity What hamburger purchases contribute to consumers. Hamburgers were one to economy in enormous. The average of the most increased comfort foods hamburger and condiment spending in in a recent study. According to the the U.S. include: Foodservice Research Institute more • $2.2 Billion in Beef than 200 burgers were added to menus in the first eight months of 2010 either • $6.6 Billion in Buns as a menu item or a limited-time offer. • $18 Million in Mustard Hamburgers and/or Steakburgers are • $901 Million in Ketchup now on more than half of independent • $1.2 Billion in Tomatoes and chain menus. This increase has driven the average burger cost up 22% to $6.43. These trends are expected to Restaurant Statistics continue in 2011 and beyond. People The restaurant business has seen are and will be willing to pay for good increases and declines depending burger. on the individual sector but the total industry has shown very impressive revenues. The following data provides an overview of industry statistics from the recent restaurant food & beverage market research handbook. Restaurants in the U.S.: 945,000 Restaurant share of the food dollar: 49%9

“American consumers take their burgers seriously. It may be one area of foodservice where they are less willing to cut back, despite the current economic environment. They expect to pay more for a higher quality, better burger, and are willing to do so because the value proposition is heightened.” Darren Tristano, Exec. V.P. The NPD Group, 9/14/09 The number of restaurants in the U.S. are as follows (numbers in the millions): Quick-service Pizza/Italian 63,489 Hamburger 47,128 Subs 34,308 Coffeeshops/tea rooms 27,569 Frozen sweets 22,112 Mexican 18,816 Chicken 17,496 Deli 14,733 Doughnut 11,621 Other sandwich 5,763 Full-service Asian 43,161 Bar & grill 38,778 Family style 32,336 Mexican 23,637 Cafe 18,281 Casual/fine dining 16,287 Italian 12,797 Barbeque 9,246 Seafood 8,216 All other 27,09410

One defining trend is the number of Local Market hamburgers that have been added (Broward County) to different types of restaurants in Recent trends show Florida restaurant previous years. Since 2005 the overall overall sales were $27.65 billion addition of burger offerings was 4% [national restaurant association]. If you but within finer dining establishments get numbers local to south Florida – the increase was 19% for the same Miami and Broward County (Ft. laud), timeframe. What the trends show is the that would be great too) (Southwestern hamburger has moved into premium Broward County region) restaurants and those in the ‘middle ground’ such as fast, casual are poised for success. Local Trends (Florida) Some keywords restaurants are starting Florida is a thriving market for to use in the industry that have gained restaurants. It is estimated total popularity are: restaurant sales for 2011 will be over • 100% Meat Types (ground chuck, $30 billion statewide. As of 2009 ground sirloin) there over 34,000 eating and drinking establishments in the state employing • 100% Beef Type (Angus, Wagyu, almost 800,000 people. Sirloin) • Hand-Pressed Patties The market is expected to increase in the next decade due to demand and • Fresh Meat (never frozen) the powerful impact the industry has on • Cooked To Order the state. For example, every $1 spent Specialty offerings have been added in Florida restaurants generates an to menus for all types of restaurants. additional $1.03 in sales for the state’s From the A-1 burger and Burger economy. Even more impressive is that King to A-1 Steakhouse burger at for every $1 million spent another 26.5 Applebee’s, these indicators show this jobs are added to the sate. market is here to stay.11

Non-Local Trends Industry Trends (Industry) • The number of foodservice managers The demand for better-tasting burgers is expected to increase 8% between and burgers with better ingredients 2010 and 2020 is evident. Fast Casual Chains such • The restaurant industry is expected as Five Guys’ Burgers and Fries and to add 1.3 million jobs by 2020 Smashburger have proven that a successful burger-based business • 9% of the US work force is model can be extremely successful. employed by restaurants The uniqueness of our product • The restaurant industry represents combines upper-scale burgers with 49% of every food dollar additional offerings such as various cuts of meat and local meats. One research • Every dollar spent in restaurants study [recent technomic] found that generates an additional $2.05 spent 27% of restaurant customers preferred in the nation’s economy burgers made with Angus beef and • Every additional $1 million in 19% said they prefer ground sirloin. restaurant sales generates 34 jobs This only represents two categories. for the economy Our areas of focus include some of the • The majority of the restaurant current trends within the food service industry is comprised of small industry. According to the American businesses. 91% of all restaurants Culinary Federation, these are the top have fewer than 50 employees trends in the industry: • 70% of eating and drinking • Nutrition establishments are single-unit • Organic items operations • Gluten-free foods • Average unit sales were $866,000 • Half portions for a smaller price at full-service restaurants • Culinary cocktails Most industries endured a downturn • Micro-distilled liquor in the recent economy while the • Simplicity restaurant industry outperformed the national economy. According to • Newly fabricated cuts of meat the National Restaurant Association, consumers are seeking value, convenience and expanded menu options. One strong trend, and one we will embrace, is the use of organic foods, when available. The use of organic foods has almost doubled in recent years.12

According to the Organic Trade Association (OTA, www.ota.com), organic food and beverage sales in the United States have been as follows: Organic Food & Beverage Sales in U.S. 25 20 $23.6 Sales in Billions $20 15 $17 $14 10 $12 5 0 2004 2005 2006 2007 2008 Industry Statistics • 56% of adults are more likely to visit a restaurant that offers organic and/ • 73% of adults say they try to eat or environmental friendly foods healthy • 70% of adults are more likely to • 57% of adults are more likely to visit a restaurant that offers locally choose a restaurant that supports produced items charity and the local community • Average household expenditure for • 52% of adults are more likely to eating out: $2,698 choose an establishment that offers a customer loyalty or reward program • Do we have statistics on household income of those who go to fast • 54% of adults would use a direct casual burger places? delivery service if offered by an establishment13

Market Demand Drivers Our market demand drivers include: Location • Quality Food Our initial location will be situated • Unique Offering in a yet to be determined building • Location located in south Florida (Miami / Ft. Lauderdale). The location will be • Product Diversity based on population, demographics • Product Volume and average tax revenue generation. • Strategic Alliances Locations within high traffic areas that • Management Team are located close to a retail anchor such • Positive Public Relations as Whole Foods or Target prove to be ideal locations for restaurants within our • Cause Marketing average menu ticket prices. Our target location is one that meets Quality Food the following criteria: Our food will be purchased from • Exhibits population growth distributors and providers that offer • Above average household incomes quality products (or locally obtained • Above average population and from local farms for produce). Our menu will be based on healthy and • Large corporate presence premium products that meet or exceed The psychographic research will industry and regulatory requirements address location data such as: with the focus being on quality and • Behaviors-how people feel about exceeding those requirements. Best eating out Burgers & More™ will be a Fast Casual • Cultures-different areas demand type of establishment with gourmet varied menus type offerings at a reasonable price • Interests-what trends are occurring considering the unique in this area • Lifestyles-what demographic trends Unique Offering are occurring The success of the hamburger market • Opinions-what foods are people has produced numerous gourmet, eating upper-end hamburger establishments. • Values-the way people feel about Our offering is unique in the sense that particular places. we provide a combination of products not currently offered in our launch market. Our policy is “It’s all about the Burger™,” which makes us prominent in the Burger market.14

Product Diversity Hamburgers are the staple items for menu but we will offer diversity with “Americans as a whole are hamburgers and diversity with our menu embracing different flavors,” in general. Eight out of ten commercial Gibson says. “People just and non-commercial foodservice operators serve hamburgers. Within want to try new things, and this competitive market offering divers they’re starting younger and signature items is important. younger with expanding their taste buds.” Product Volume Diana Barto, former BEEF senior Our prices are inline to be less associate editor. expensive than other specialty restaurants and chains while generating a healthy profit. Our market research will define an average price to drive Positive Public Relations product volume. Our product diversity will also contribute greatly to our Public relations are an integral part of volume sales. By offering items that the restaurant business. Sponsorship other restaurants do not offer will of local civic and charitable functions is promote our niche. important to us and we will create an image that is synonymous with helping the local community. Strategic Alliances Other areas of positive relations include We will strategically align ourselves the promotion of Social Networking, with food distributors and food sustainable practices, green initiatives brokers to form relationships to build and promoting recycling. promotion within the local marketplace. By leveraging our contacts within brokerage houses and local providers Cause-Related Marketing we can expand our ‘word of mouth’ Charitable contributions are an marketing which is essential for local important part of our business mission. community penetration. Best Burgers & More™ will be able to support charitable causes and educational institutions within the local Management Team market. Charity and social responsibility Our capitalization will allow us to hire a are important parts of our business seasoned, valuable management team. model. This allows us to increase our Many successful restaurant endeavors name recognition while also improving are started with key management the community.15 players from chains such as Brinker, OSI, and Darden.

Economic Prosperity The Triple Bottom Line Environmental Social Stewardship Responsibility Barriers to Market Entry • Capitalization Marketability • Marketability Marketability is one of the most • Industry Expertise important factors within the restaurant • Alliances business. It relies on strong management, outstanding resources and understanding of the local area. Capitalization What makes a restaurant popular Without proper capitalization a in Austin, TX does not necessarily restaurant start-up is not able to work in New York City. This creates sustain business and seasonal trends. marketability barriers. Since we are On average, new restaurants require very familiar with this geographic region enough operating capital to cover all we have a definite advantage compared expenses for a minimum of twelve to others entering the marketplace. months. This is an entry barrier that we can overcome through our unique stance in the market. Newcomers may Industry Expertise try to duplicate our offering but they will Expertise is one of the foundations faced with existing competition while of success for new restaurants. This we are currently the front-runner in our industry is not one that can taught in demographic area. a class and it requires solid hands- on experience to be successful. This is why hiring trained management is so important and proper utilization of capital is required to obtain the best talent available.16

Alliances Food industry alliances drive many items such as food cost and local promotion. Without solid contacts within these areas it can prove difficult for new market entries to gain momentum. Our focus on alliances will span the entire spectrum from local wholesalers to regional food brokers to national distributors. This Space Intentionally Left Blank17

Competition From a differentiation standpoint it is important to understand the local market for the south Florida area. There are many ‘standard’ hamburger restaurants and chains in south Florida but very few gourmet hamburger offerings. There are some unique hamburger establishments that can be considered competition but they do not have the vast offering of Best Burgers & More™. Some of these establishments include: 8OZ. Burger Bar Burger creations include top local ingredients. Other specialties include items like house cured bacon and homemade dill pickles. Their signature burgers are made with quality blended humanely raised, hormone-free Black Angus sirloin. All burgers are grilled over a wood burning grill. Fuddruckers Fuddruckers is a franchise chain that focuses on promoting vegetarian fed cattle, a topping bar and fresh baked buns. These are just two examples (one unique and one franchise) of competition in the market. There is no exact offering that matches Best Burgers & More™. There is the possibility that a similar offering is being developed and that would create direct competition. This is why it is of the essence that we obtain funding as expeditiously as possible to secure our initial presence in this marketplace.18

Competitive Landscape Research conducted via IBISworld. same geographic area or in food com estimates that in 2011, the top courts at malls and airports must also four players in the restaurant industry compete with each other. Food courts account for less than 35% of the and other dining hubs have become available market share, providing increasingly popular over the last this industry with a low level of few years. Research also shows that concentration. Given the diversity of health and nutritional value of the food food styles and industry operations, sold in restaurants has also become it is not surprising that nearly 48% increasingly important to customers; of establishments are small-business a fact that bodes extremely well for operators with nine or fewer employees. organizations like Best Burgers & An additional 52% of establishments More™. have between 10 and 99 employees. There is also a very small number of extremely large and dominant chain and Innovative Marketing franchised operations. Management understands that it will be Over time, the industry’s concentration very important to create and cultivate has been increasing as many of the relationships with other companies top tier establishments have been that also serve the targeted, local purchased by equity firms. The recent markets. Through cultivating contacts increase in acquisitions indicates that Best Burgers & More™ will attempt to companies are making a concerted build relationships that could lead to effort to increase profitability by joint advertising programs or even joint claiming larger portions of the market ventures. The companies targeted for share. Between 2005 and 2010, these relationships will be those that the number of establishments and already have local targeted items such enterprises have both either fallen as craft beer locally produced retail or remained stagnant, which has items that are being provided to an caused a marginal increase in industry existing base of customers. concentration. The level of industry concentration is expected to continue Keys to Success to increase over the five years to 2016. • Capital financing in the amount There is a significant price-based $500,000 competition within this industry. However, fast casual establishments • Business expertise of the operator. also compete on the basis of location, Strong operator business expertise food quality and consistency, style and is a requirement to succeed in the presentation, food range with new restaurant industry. The industry is products needing to be introduced wrought with high turnover rates and regularly, variety and customer service. moderate profit margins that can Restaurants that are located in the easily turn to losses if not properly19

maintained. With that thought in effective. This can be done by our mind it should be noted that Best knowledgeable staff and verified Burgers & More™ founder Steven quarterly by our accountant. Gara is an astute professional with a • Keep food costs under 30% of strong business acumen and a skill revenue set that is optimal for a venture of this type. • Keep beverage costs under 20%- 25% of revenue • Having a clear market position. Clear market positioning is a must in • Keep Prime Costs under 65% of the restaurant industry. While Best total revenue Burgers & More™ will be a burger- • Keep location expenses under 8% of based operation, the market position revenue that the organization will occupy • Ability to franchise operations. clearly differentiates the brand from Although Best Burgers & More™ others that are currently residing in plans to enter the market with a the market. single location, the long-range plans • Effective cost controls. Controlling call for founder Steven Gara to costs are important in this moderate explore the opportunity of franchising margin industry. With Best Burgers the restaurant. If this occurs and & More™ being a new market with the unique core of the business entrant, the marketing message model, the revenue and profit will take time to resonate with potentials could be quite promising. the targeted audience, making • Location. Location is an extremely controlling and monitoring cost important variable in the restaurant even more important to the long- industry. Being in close proximity term viability of the brand. Our to the target audience gives philosophy is to maintain to a steady the operation the best possible pricing policy. Our Policy and and opportunity to drive brand loyalty and Operations Manuals will ensure that profits. While south Florida is known all control policies are held to the for being receptive to diverse culinary highest standards. options, will be the point of market The restaurant and beverage industry entry, management must be mindful is a highly competitive market and cost of the need to choose locations control and cost margins are of extreme based on sound research that shows importance. Our key objectives include: the chosen markets will support the • Use the latest technologies to vision. manage cost control, primarily Point of Sale (POS) systems • Perform scheduled audits to ensure cost control procedures are20

Management Summary Steven J. Gara, MS, PHR, CBAP Mr. Gara, owner of SGBIZSERVICES, is a multi faceted business professional with a wide array of skills and experience in a variety of industries including Software, Entertainment (including being a musician), Travel, Banking, Insurance and Tax Lien investments. Educationally, he holds a Bachelor’s Degree from Temple University and a Master’s Degree from Cornell University. He has over a total of 15 years of experience combined in Human Resources and Information Technology consulting, has an entrepreneurial personality and a creative side that allows “thinking out of the box” for any given issue. The ability to think creatively and to step back and see the bigger picture is what sets him and the company apart from others. He is also a Green Belt in Six Sigma principles and this experience helps his clients to maximize their profits and minimize losses. Originally developed by Bill Smith at Motorola in 1986, the Six Sigma Training program was created using some of the most innovative quality improvement methods from the preceding six decades. The term “Six Sigma” is derived from a field of statistics known as process capability. These credentials make both him and the company uniquely qualified to handle a variety of disparate business issues and offer a diverse array of services.21

Five Forces Analysis Standard Forces Model Absolute Cost Advantages None Proprietary Learning Curve None Access to Inputs None BARRIERS Government Policy Minor Threat TO Capital Requirements None (if needed) ENTRY Brand Identity None Access to Distribution None Proprietary Products None Economies of Scale Minor Threat THREAT Client Inclination to Substitutes Minor Threat OF Price Performance None COMPETITION Switching Costs None Bargaining Leverage None Client Volume Minor Threat Client Information None BARGAINING Brand Identity None POWER OF Price Sensitivity None CLIENTS Product Differentiation Minor Threat Client Concentration None Substitutes Available Minor Threat Resource Concentration Minor Threat BARGAINING Differentiation of Inputs None POWER OF Switching Costs of Firms in the Industry None COMPANY Presence of Substitute Inputs None Threat of Forward Integration None Exit Barriers None Industry Concentration None DEGREE Fixed Costs/Value Added None OF Industry Growth None RIVALRY Brand Identity None Diversity of Rivals None22

Sales Plan Sales Channels / Print ad efforts include: Marketing Strategies • Mailers (standard mail) Our sales channels include: • Public flyers (parking lots/events) • Direct Marketing • Local newspaper inserts • Social Media Networks • Coupon/special offer distribution • Customer Database (malls and store ingress and egress) • Email Marketing • Online Viral Strategies Social Media Networks • Advertising Marketing research shows that 83% of • Public Relations companies that have deployed social media technologies report they have experienced either positive ROI or Direct Marketing have at least reached the break-even Direct marketing consists of standard point on their investment. Breaking that sales efforts along with organically and down even further, 39% say they have locally focused growth. Best Burgers achieved a positive ROI, and 44% say & More™ will target individuals on a the benefits have equaled the costs. personal level. Best Burgers & More™ Only 17% say costs outpaced benefits. plans to travel to largely populated “hot spots” to disperse samples of our product, gaining loyalty locally and Social Media building word of mouth sales. ROI Experience Best Burgers & More™ will acquire Negative growth by conforming to the trends set 17% Positive 39% forth in this market. If the market shifts, Best Burgers & More™ will acclimate itself to conform to the changing demographics. This is necessary in order for businesses to be successful and we are fully prepared to comply with the scope of trend changing. We Break-Even 44% will offer menu items and entertainment to please the ever changing business. Source: Computer Economics, 2010 We will also provide marketing and advertising in order to obtain clientele. We will have a presence in college newspapers, on Facebook and whatever other means are available to put us in front of our targeted demographic.23

Social media spans all age groups and Mobile Coupons we will focus our efforts on as many as Mobile coupons will be an integral possible for complete market saturation. part of our business model. Coupon • Social networking now accounts for offerings, such as Groupon, will 22% of all time spent online in the be distributed based on customer United States. profiles and location based services • Twitter processed more than one (if available). Our direct marketing billion tweets in December 2009 and material will include mobile QR codes averages almost 40 million tweets that consumers can scan to download per day. specials and coupons. • Over 25% of U.S. Internet page views occurred at one of the top Email Marketing social networking sites in December Our email marketing strategies will 2009, up from 13.8% a year before. consist of direct marketing campaigns • The number of social media users that will be multifaceted. Our targets age 65 and older grew 100 percent will include: in 2010; one in four people in that • New customers age group are now part of a social networking site. • Existing/previous customers • Affiliates (local websites) As social networks have evolved so has their ability to work with each other Our email marketing will not utilize to promote reciprocal opportunities. spam and ‘blast’ email techniques. Our Our programs will use entry points to emails will be targeted to consumers network users based on variables in the who have opted in directly or through sales cycle. Of course, having someone reputable providers. Email marketing is click the “Like” button on Facebook still very effective. Our design will use shows their friends they like the site but tools to track what emails are opened, these messages can be taken further. what links are used, how many times the email is viewed, coupon tracking One additional area that will be sampled and many more tracking options. includes location based services (LBS). Our techniques will be customized Social network such as Facebook offer to provide the best possible offering applications that allow other people for each individual user and define within their network to see where they formulas to develop a successful are or where they have ‘Checked In”. implementation strategy. These are standard procedures for email marketing but ours will go further and provide an almost algorithmic approach that is tailored just for local restaurant dining. For example, one email24 campaign may promote a new burger

offering such as a Bison/Sirloin mix. All interest in that email will be analyzed based on when the email is being viewed (immediate or not), if the click through link is followed and coupon redemption (if offered). Customer Database An extensive database will be developed based on many items: 1) Frequent dining program 2) Website visitors 3) Opt-in members 4) Email recipients This database will be used to target consumers based on dining and purchasing habits (through our integrated POS system) and will be a cloud marketing effort with our other sales channels.25

SWOT Analysis l The ConCepT STRENGThS l LoCaTion wEakNESSES l LaCk of funding oppoRTuNiTiES l The demands of The markeT ThREaTS l paradigms26

Strengths Opportunities The concept. Whereas most of the The demands of the market. As competitors in the segment that Best the economy rebounds from what Burgers & More™ will be entering offer insiders have dubbed, “The Great mainstream food choices, Best Burgers Recession”, consumers have taken on & More™ will bring a much broader a renewed mindset that includes new scope of menu options. The novelty of consumption patterns, including those the concept will at the very least drive related to dining and food choices. traffic and place the restaurant in a Gone are the days when consumers strong position to drive a sale that adds would automatically flock to traditional to the profit margin. meal choices; in its place a new type of consumer that demands out of the box Location. South Florida is the ideal yet healthy meal options. geographic location to launch a concept of this type. The consumer tastes are as diverse as the city itself. The Threats diversity in tastes will give Best Burgers & More™ the opportunity to gain Paradigms. Although consumer traction in the marketplace and drive mindsets, tastes and demands are profits that can be used for expansion indeed changing, the traditional and any debt service that might be consumer is still very “beef and fry” incurred. oriented. With that being said, the primary threat that Best Burgers & More™ faces is developing a brand Weaknesses following that translates into profit within a reasonable timeframe. Lack of funding. The lone weakness in an otherwise sound business model is the need for proper capitilization. When funding is acquiesced, founder Steven Gara is confident that he can guide the Best Burgers & More™ venture towards a position of market leadership and long-term viability.27

Financial Summary Assumptions: M1Y1 Jan-12 Restaurants to be added 5 Current Facilities 1 Rate at which restaurants are launched 1 per year to 4 additional units Site Funding Raised per added facility: $500,000 Total Site Funding $500,000 Debt/Equity Split of Site Funding 90% /10% Total Site Funding - Debt $50,000 Total Site Funding - Equity $450,000 Total Holding Company Equity Raise $500,000 Depreciation Time Period 420 Months Interest Rate on Debt 6.5% Amortization Period 300 Months Principal Payment Rate on Debt - Annually 3.5% Equity Guaranteed Annual Return 8%28

29Profit and Loss Year 1 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Year 1 TotalsOperating Income:Initial Location $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $306,675 $306,675 $306,675 $3,395,025Location #2 $-Location #3 $- $- $- $- $- $- $- $- $- $- $- $- $-Location #4 $- $- $- $- $- $- $- $- $- $- $- $- $-Location #5 $- $- $- $- $- $- $- $- $- $- $- $- $-Total Operating Income: $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $306,675 $306,675 $306,675 $3,395,025Expenses:Salary/Wages $101,750 $123,750 $123,750 $123,750 $123,750 $123,750 $123,750 $123,750 $115,500 $119,603 $116,537 $113,470 $1,433,110Total Summary G&A $110,000 $129,250 $129,250 $129,250 $129,250 $129,250 $126,500 $126,500 $126,500 $141,071 $141,071 $141,071 $1,558,962Other Operating (3% of Income) $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $9,200 $9,200 $9,200 $101,851Total Operating Expenses: $220,000 $261,250 $261,250 $261,250 $261,250 $261,250 $258,500 $258,500 $250,250 $269, $266,807 $263,741 $3,093,922EBITDA $55,000 $13,750 $13,750 $13,750 $13,750 $13,750 $16,500 $16,500 $24,750 $36,801 $39,868 $42,935 $301,103EBITDA (%) $0 5.00% 5.00% 5.00% 5.00% 5.00% 6.00% 6.00% 9.00% 12.00% 13.00% 14.00% 8.87%Other ExpensesDepreciation/Amortization $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $14,286Interest Expenses $265 $265 $265 $265 $265 $265 $265 $265 $265 $265 $265 $265 $3,185Total Other Expenses $1,456 $1,456 $1,456 $1,456 $1,456 $1,456 $1,456 $1,456 $1,456 $1,456 $1,456 $1,456 $17,471Net Income: $53,544 $12,294 $12,294 $12,294 $12,294 $12,294 $15,044 $15,044 $23,294 $35,345 $38,412 $41,479 $283,633Profit Margin 19.47% 4.47% 4.47% 4.47% 4.47% 4.47% 5.47% 5.47% 8.47% 11.53% 12.53% 13.53% 8.35%

30Profit and Loss Year 2 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Year 2 TotalsOperating Income:Initial Location $306,675 $315,875 $315,875 $315,875 $315,875 $315,875 $315,875 $315,875 $315,875 $320,085 $320,085 $320,085 $3,793,932Location #2 $203,063 $216,061 $236,325 $254,093 $266,460 $286,163 $273,853 $273,853 $273,853 $273,853 $273,853 $273,853 $3,105,283Location #3 $- $-Location #4 $- $- $- $- $- $- $- $- $- $- $- $- $-Location #5 $- $- $- $- $- $- $- $- $- $- $- $- $-Total Operating Income: $509,738 $531,936 $552,200 $569,968 $582,335 $602,038 $589,728 $589,728 $589,728 $593,938 $593,938 $593,938 $6,899,215Expenses:Salary/Wages $226,939.50 $229,209 $231,501 $233,816 $236,154 $238,516 $240,901 $243,310 $245,743 $248,200 $250,682 $253,189 $2,878,161Total Summary G&A $141,776 $235,100 $236,275 $237,457 $238,644 $239,837 $241,036 $242,242 $243,453 $244,670 $245,893 $2,780,313Other Operating (3% of $15,292 $15,958 $16,566 $17,099 $17,470 $18,061 $17,692 $17,692 $17,692 $17,818 $17,818 $17,818 $206,976Income)Total Operating Expenses: $384,007 $479,097 $483,167 $487,190 $491,081 $495,221 $498,430 $502,038 $505,676 $509,471 $513,171 $516,901 $5,865,450EBITDA $125,731 $52,839 $69,033 $82,778 $91,254 $106,817 $91,298 $87,690 $84,052 $84,467 $80,767 $77,037 $1,033,765EBITDA (%) 24.67% 9.93% 12.50% 14.52% 15.67% 17.74% 15.48% 14.87% 14.25% 14.22% 13.60% 12.97% 14.98%Other ExpensesDepreciation/Amortization $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $1,190 $14,286Interest Expenses $256 $256 $256 $256 $256 $256 $256 $256 $256 $256 $256 $256 $3,074Total Other Expenses $1,447 $1,447 $1,447 $1,447 $1,447 $1,447 $1,447 $1,447 $1,447 $1,447 $1,447 $1,447 $17,359Net Income: $124,284 $51,393 $67,587 $81,331 $89,808 $105,371 $89,852 $86,244 $82,605 $83,020 $79,321 $75,591 $1,016,405Profit Margin 24.38% 9.66% 12.24% 14.27% 15.42% 17.50% 15.24% 14.62% 14.01% 13.98% 13.36% 12.73% 14.73%

31Profit and Loss Year 3 Year 4 Year 5 Q1 Q2 Q3 Q4 Year 3 Totals Annual Totals Annual TotalsOperating Income:Initial Location $960,255 $960,255 $960,255 $1,003,368 $3,884,133 $4,013,472 $4,334,550Location #2 $880,983 $880,983 $880,983 $880,983 $3,523,932 $3,680,100 $3,841,020Location #3 $861,175 $880,983 $880,983 $880,983 $3,504,124 $3,667,086 $3,827,610Location #4Location #5 $- $- $- $- $- $(13,014) $(13,410)Total Operating Income: $2,702,413 $2,722,221 $2,722,221 $2,765,334 $10,912,189 $11,347,644 $11,989,770Expenses:Salary/Wages $1,150,745 $1,162,252 $1,173,875 $1,185,614 $4,672,486 $4,859,386 $5,053,761Total Summary G&A $1,109,286 $1,112,060 $1,114,840 $1,117,627 $4,453,813 $4,498,351 $4,543,335Other Operating (3% of Income) $81,072 $81,667 $81,667 $82,960 $327,366 $340,429 $359,693Total Operating Expenses: $2,341,104 $2,355,979 $2,370,381 $2,386,201 $9,453,665 $9,698,166 $9,956,789EBITDA $361,309 $366,242 $351,840 $379,133 $1,458,524 $1,649,478 $2,032,981EBITDA (%) 13.37% 13.45% 12.92% 13.71% 13.37% 14.54% 16.96%Other ExpensesDepreciation/Amortization $3,571 $3,571 $3,571 $3,571 $14,286 $14,286 $14,286Interest Expenses $741 $741 $741 $741 $2,966 $2,862 $2,762Total Other Expenses $4,313 $4,313 $4,313 $4,313 $17,252 $17,148 $17,048Net Income: $356,996 $361,929 $347,527 $374,820 $1,441,273 $1,632,330 $2,015,933Profit Margin 13.21% 13.30% 12.77% 13.55% 13.21% 14.38% 16.81%

Statement of Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flows from Operations Net Income: $283,633 $1,016,405 $1,441,273 $1,632,330 $2,015,933 Capital Ex. For $500,000 $- $- $- $- Site Development * Other Capital $- $- $- $- $- Expenditures Depreciation (+) $14,286 $14,286 $14,286 $14,286 $14,286 Total Cash Flows from $(202,082) $1,030,691 $1,455,558 $1,646,616 $2,030,219 Operations Cash Flows from Investing Cash Investments $- $- $- $- $- Investment Returns $- $- $- $- $- Total Cash Flows from $- $- $- $- $- Investing Cash Flows from Financing Equity Investments Received: Equity Investments - $450,000 $- $- $- $- Site Development Equity Investments - $500,000 $- $- $- $- Holding Company Debt Capital Received $50,000 $- $- $- $- Dividends/Shareholder $76,000 $76,000 $76,000 $76,000 $76,000 Distributions - Guaranteed Return Repayment of Debt $1,750 $1,689 $1,630 $1,573 $1,518 Total Cash from $922,250 $(77,689) $(77,630) $(77,573) $(77,518) Financing Cash at the Beginning $500,000 $1,220,168 $2,173,171 $3,551,099 $5,120,142 of the Period Cash at the End of the $1,220,168 $2,173,171 $3,551,099 $5,120,142 $7,072,844 Period * (This represents the funding raised for building each unit at $500,000 per restaurant)32

Balance Sheet Year / Ending Year 1 Year 2 Year 3 Year 4 Year 5 Assets: Cash and Cash $1,220,168 $2,173,171 $3,551,099 $5,120,142 $7,072,844 Equivalents Accounts Receivables 0 0 0 0 0 Capitalized Assets: $500,000 $500,000 $500,000 $500,000 $500,000 Accumulated $14,286 $28,571 $42,857 $57,143 $71,429 Depreciation: Remaining value of $485,714 $471,429 $457,143 $442,857 $428,571 Capitalized Assets Total Net Assets $1,705,883 $2,644,599 $4,008,242 $5,563,000 $7,501,415 Liabilities and Owner’s Equity Debt Notes $50,000 $50,000 $50,000 $50,000 $50,000 Accumulated Principal $1,750 $3,439 $5,068 $6,641 $8,159 Repayment Remaining Note Value $48,250 $46,561 $44,932 $43,359 $41,841 Stock Issued - All Classes $950,000 $950,000 $950,000 $950,000 $950,000 Retained Earnings $707,633 $1,648,038 $3,013,310 $4,569,641 $6,509,574 Owners Equity $1,657,633 $2,598,038 $3,963,310 $5,519,641 $7,459,574 Total Liabilities and $1,705,883 $2,644,599 $4,008,242 $5,563,000 $7,501,415 Owner’s Equity33

Best Burger Final

by Steven Gara, M.S., CBAP ®, Six Sigma Green Belt

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