Official Bus PLN Mgt 491

i
PARISIAN BAKE CO.
Zachary Lipson, Brooke Frohlich, Maggie Cohen
NOVEMBER 1, 2015
PARISIAN BAKE CO.
2200 Nicholasville Rd. Lexington KY

CONFIDENTIAL
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Parisian Bake Co.®
Table of Contents
I. Executive Summary
1.1 Opportunity, The…………………………………………………………………………………………………………………...1
1.2 Company, The……………………………………………………………………………………………………………………….2
1.3 Growth Plan, The…………………………………………………………………………………………………………………..3
1.4 Team, The…………………………………………………………………………………………………………………………..…4
II. Industry, Target Customers, and Competitors
2.1 Restaurant Industry………………………………………………………………….…………..……..………….....................5
2.2 Fast Casual Segment………………………………………………………………….…………..……..…………................6-7
2.3 Pastry Food……………………………………………………………………………..…………………..…………....................8
2.4 Target Customer….…………………………………………………………………..…………………..…………....................9
2.5 Competitors….…………………………………………………………………..…………………..…………………................10
2.6 Competitive Advantage….…………………………………………………………………..………..…………...................11
III. Company, The
3.1 Company Overview….…………………………………………………………………..…………………..……...................12
3.2 Menu, The……………………………………………………………..…………………..……………………………..........13-14
3.3 Store Layout….…………………………………………………………………..…………………..…………..........................15
IV. Marketing Plan, The
4.1 Marketing Objectives….…………………………………………………………………..…………………..…………........16
4.2 Targeting and Positioning
4.2.1 Targeting….…………………………………………………………………..…………………..………….............................17
4.2.2 Positioning….…………………………………………………………………..…………………..………….........................18
4.3 Market Penetration….…………………………………………………………………..…………………..…………............19
4.4 Pricing Strategy….…………………………………………………………………..…………………..…………...................20
4.5 Marketing Mix….…………………………………………………………………..…………………..…………......................21
V. Operations Plan, The
5.1 Location

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5.1.1 Real Estate Strategy….…………………………………………………………………..…………………..…………22-25
5.1.2 Potential Location….…………………………………………………………………..…………………..…………...........26
5.2 Hours of Operation….…………………………………………………………………..…………………..………….............27
5.3 Employee Training and Hiring….…………………………………………………………………..……………………...28
5.4 Production, The……………………………………………..…………………..…………................................................…..29
5.4.1 Employees……………………………………………..…………………….....…………................................................…..30
5.5 Facilities and Equipment…..………………………………………..…………………..………….....................................31
5.6 Suppliers….…………………………………………………………………..…………………..………….................................32
5.7 Detailed Timeline….…………………………………………………………………..………………………….....................33
VI. Development Plan, The
6.1 Launching Plans……………………………………………………………………………………………………………….…34
VII. Growth Plan, The
7.1 Current growth Plan…………………………………………………………………..…………………..…………...............35
7.2 Future Growth Plan……………………………….………………………………………..…………………..…………........36
VIII. Team, The
8.1 Launch Team….………………………………………………………………..……..………..…………………...…................37
8.2 Board of Advisors….…………………………………………………………...………..…………………..…………............38
IX. Financial Plan, The
9.1 Capital Requirements….…………………………………………………………………..…………………..……………....39
9.2 Proforma Income Statement….…………………………………………………………………..………………...…40-45
9.3 Summary Financials……….………..……………………………………………………..……………………………..........46
9.4 Depreciation Schedule….………..……………………………………………………..……………………………......47-48
X. References
10.1 Works Cited…………………………………………………………………………………………………………………..…..49

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Parisian Bake Co.®
I. Executive Summary
1.1 The Opportunity
1) Consumer trends indicate consumers desire a variety of flavors & options for desserts1.
2) With the American economy making tremendous progress since the recession of 2008,
Americans are spending more money eating out2. We believe that gives our restaurant
an opportunity to capitalize on the rise in discretionary spending of the American
consumer.
3) Restaurant industry analysts are saying that consumer’s willingness to try new types of
cuisine over the years is increasing. Consumers are “interested more than ever in
authentic international cuisine.”5 Homemade ingredients have become a nationwide
trend that is shaking up the industry as sales of fast food stores have plummeted.5 The
idea is that as the economy improves “consumers are becoming more discerning for
new tastes and flavors.”5
Lexington consumers are limited in choices:
 Lexingtonians seeking to enjoy homemade desserts, pastries both sweet and savory have a
difficult time finding that sort of restaurant in their area.
 Professionals who enjoy Starbuck’s atmosphere where one can sit down enjoy themselves
while reading the morning news, find that there’s usually one element missing. Quality food!
For example, homemade egg and sausage soufflé, which would be a nutritional and healthy
way to start the morning. Or homemade breakfast sandwiches and other assortments of
high quality foods for the working professional to commence their day.

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1.2 The Company
 Parisian Bake Co. is a bakery and dessert shop that makes from scratch its items and
provides the highest quality foods for its customers. We will be open from morning to late in
the evening. We plan to open our first store on November 1st, 2015 in Lexington, KY with
plans to grow next year.
 Our store will be counter-order and table-service. Our average ticket prices will vary from
the times of the day, whether it’s the week verses the weekend, and also whether the
University of Kentucky has a football game. For example, on weekday mornings, we predict
our average ticket price will range from $9-$12. On weekday afternoons (during lunch
time), we predict our average ticket price will range from $12-$15. On weekday nights
(during dinner time), we predict our average ticket price will range from $15-$18. On a day
when the University of Kentucky has a football game, the average ticket price will range
from $13-$18.
 There will be plenty of space for our customers to come in and read the morning newspaper
while enjoying their coffee and eating some savory pastries that we will sell.
 We will offer a variety of sweet and savory pastries as well as decedent desserts. Our shop
will not just offer desserts but will provide a vast array of savory pastries such as egg,
cheese & sausage, and spinach soufflés to start the morning off right.
 We will make deliveries to local businesses or any events that place large orders.
 Some of our target customers will include middle aged to older businessmen and
businesswomen. Possible customers might include fraternity and sorority people hosting
large events.
 The size of our restaurant will be close to 1,500 square feet with 15-20 tables and 6-9
booths. The first location was specifically selected because of its favorable location on
bustling Nicholasville Road near a busy intersection. This will make it easy for our
customers to turn in and out of our parking lot. Most importantly it is on the side of the road
that is in the favorable direction of “going to work” traffic.

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1.3 The Growth Plan
 Our plan for the time being is to operate one shop in one location then if we deem we are
ready to expand, we shall open another shop in Louisville, Covington, Cincinnati, and
Nashville within 12-15 years. After about 15 years later and a successful year in Nashville
we will partner with a Venture Capital firm to coach us into going pubic with an IPO and
becoming a nationwide franchise. We hope to eventually franchise but for the time being we
will oversee and develop our operations to ensure our shop has the right image and
perception in each city. As with any business, it’s better to wait and see how the shops are
doing before expanding nationally.
 Timeline of Store Opening: Year 1: Lexington, KY, Year 4 Louisville, KY.
Bellow is a chart showing the schedule for our the future growth of our company:
Year 1 Year 2 Year 3 Year 4 Year 5
Owned
Stores
1 2 3 3 4
City Lexington
No New
Store
No New
Store
Louisville
No New
Store
State Kentucky
No New
Store
No New
Store
Kentucky
No New
Store
Location
Nicholasville
Rd
No New
Store
No New
Store
Unknown
No New
Store

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1.4 The Team
Management Team:
Zachary Lipson, founder, CEO (owner), baker, – Zachary has over ten years of experience in
cooking, whether it be making desserts or pastries both sweet and savory. He worked in the
home office of one of Kentucky’s most profitable family McDonald’s, Healy Family McDonalds’.
Brooke Frohlich, Chief Operating Officer & baker – Brooke has experience as a hostess for
O’Charley’s and worked as an administrative assistant as ASI Machine Tool Company. Brooke
has also worked at Benton Farms within the customer relations department.
Maggie Cohen, Senior Vice President of Operations & baker – Margaret has worked at several
restaurants as both a hostess and a server. O’Charleys (waitress & bartender) Oct 2011-
January 2015 Enterprise-Rent-a-Car (intern) May 2014-present.
Board of Advisors:
Paul Lipson – Financial backer and investor of the entire business.
Zachary Lipson – Owner Operator of The Parisian Bakery Company.
Jordan Lipson – Experience as an analyst for a franchise valuation firm on Wall Street.
Dr. Paul Lipson – Is a partner of a the country’s top medical group.
Don Cunningham – Owned a series of gas stations and restaurant franchises for over 10 years.

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II. The Industry,Target Customers,and Competitors
2.1 Restaurant Industry
 The restaurant
industry has
increased 3.9%
per year from
2000 to 2014 and
reached $586.7
billion dollars in
sales in 20143
 Even more
impressive is an
11% annual
growth rate. Visits
per store for fast
casual restaurants
have been rising
by 5% in the last
five years4.

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2.2 Fast Casual Segment
 The fast casual restaurant is a hybrid of fast food restaurants and casual dinning restaurants
placed between price, quality, and experience. Fast casuals places differ greatly from fast
food places. Most people would agree that fast casuals provide an upper level when it comes
to a more customized menu, fresher and higher caliber ingredients in comparison to fast
foods shops. Fast food consists of highly processed foods prepared in bulk using
standardized procedures adapted from Henry Ford’sassembly line. Another aspect of how
fast casuals differ from fast food is the décor. Despite some fast food restaurants revamping
their stores, by and large most fast food restaurants lack in décor ambience and features.
 Sales for the fast casual industry grew an impressive 11% in 2013 and expanded store count
by 8%. To give an idea of how fast the fast casual restaurant industry is growing one can
look at the growth rate of Chipotle at 20% per year for 5 consistent years.
Industry V. Fast Casual Segment Comparison
(Sales in Billions)
Yes, the fast food industry is a
giant within the restaurant
sector, however, there is a “dark
horse” among the giants of the
restaurant industry. That young
stud is the fast casual restaurant,
which includes bakeries, cafes,
specialty food stores, and other
fast casual chains like Chipotle
Mexican Grill, Panera Bread.
 The typical fast casual restaurant runs from a cost basis of $8-$15 per meal.
Bellow is a chart that shows compares the percentage of customer traffic in QSR (Fast Food)
restaurants and Fast Casual Restaurants:
Percent Change in Customer Traffic 6
Restaurant Industry Fast Casual Segment
Year Sales Year Sales
2012 $631 2012 $27
2013 $659.31 2013 $31
2014 $683.09 2014 $34.41
QSR (Fast Food) Fast Casual Segment
Year Traffic Year Traffic
2010 -1% 2010 4%
2011 0% 2011 6%
2012 1% 2012 9%

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As one can see there is a crucial rise
in the flow of customers visiting fast
casual restaurants in comparison to
the gloomy situation of traditional fast food restaurants known as the QSR style of stores6.
 “Many fast-casual concepts were positioned as a fresh, made-to-order alternative to
traditional fast food options, and consumers responded positively,” said Bonnie Riggs, NPD
restaurant industry analyst. “The segment benefited from fast-food consumers trading up
and full-service consumers trading down.”
 As a result, several quick-service chains have begun offering more premium products and
healthful options, and upgrading interiors with upscale and modern looks that can compete
on a fast-casual level, the NPD report said.
2013 0% 2013 8%
2014 -30% 2014 23%

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 NPD’s “Fast Casual: A Growing Market” report also found that consumer demand for fast-
casual dining outpaced the industry’s rate of expansion, and several chains in the segment
have built strong customer loyalty.
2.3 Pastry Food (Sweet & Savory)
 There is a positive relation between a prosperous economy and consumer spending on
discretionary income goods. Obviously the economy and GDP has made tremendous
improvements since the recession of 2008, which implies consumers have more money to
spend and are spending it on higher quality goods and services. Hence a fall in both the sales
revenue of fast food companies but also a dramatic decline in the number of visitors to fast
food stores. The growth rate for fast casual restaurants is booming more than ever and
consumers are venturing out in tastes and preferences.
 Using advanced economic techniques that project both long term and short-term market
growth outlook, restaurant analysts agree that this segment of the restaurant industry is
making a name for itself.
Bellow is the market forecasts that show the long-term industry outlook and growth trends
for a five-year forecast:
U.S. Census Department 6

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2.4 Target Customer
1) Workers En Route To Work
People on their way to work might want to spend a portion of their morning at our
restaurant. As we will sell coffee, breakfast pastries such as egg, cheese & spinach, sausage
soufflés. Our facility will have an a business décor that is perfect to sit down and read the
morning paper.
2) Delivery To Work
Businessmen and businesswomen might want to place an order for an assortment of
decadent desserts or savory artisan breads to be delivered to them at their place of work. Or a
person might wish to place an order as a gift for a fellow co-worker or employee.
3) Corporate Events & functions
Business owners might want to place large orders for decadent desserts, array of savory
pastries, or homemade artisan bread for a large, medium, or small corporate function.
4) University Related Events & Functions
Our company hopes to get involved with the Universities of the region by delivering all sizes
of orders for college and university events and functions especially the athletic
administration events of the University of Kentucky. The regional colleges will include,
University of Kentucky. University of Louisville, Georgetown College, Eastern Kentucky
University, Asbury, and Centre College.
5) Fraternity & Sorority Events & Functions
We believe there is a lot of potential market to be capitalized within the Greek Life of the
University of Kentucky. Most of the Greek Life on and off campus have hundreds of different
functions and events where we could fulfill orders of all sizes. The upside is that the ticket
amounts of these orders usually have a higher budget than most people.

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2.5 Competitors
Bellow shows some of the key players in the dessert, bakery, and pastry segment of the restaurant
industry:
Competitor A: Panera Bread Company is a publically traded fast casual restaurant headquartered
in St. Louis Missouri. They specialize in sandwiches, soups, salads, and desserts.
Competitor B: Au Bon Pain: Is a fast casual bakery and café headquartered in Boston in 1978. It is
now owned and controlled by a private equity group called LNK Partners acquired
in 1999. There are 243 cafes in the US 135 are company owned and 108 are
franchised locations.
Competitor C: Provence Bread Company Bakery & Café: An American owned and operated
company that specializes in baking breads, deserts, and pastries. Established in
1996 by Terry Carr-Hall and a group of financiers. They serve the Nashville
Tennessee and Middle Tennessee area.
Competitor D: Le Matin Bakery: Located on E. High St. in the Chevy Chase area is a very small
unknown bakery that specializes in pastries and desserts. We feel they pose as a
little threat to our business. From personal experience the management and service
of the place is of poor quality. The owners are rude and yell at customers for
walking on wet floors by accident {from personal experience}.

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2.6 Competitive Advantage
The HomemadeCompetitive Edge….
We believe our company’s competitive advantage is our use of high quality ingredients and the
delivery of decadent, one of a kind foods to the area, with the combination of our relaxed business
ambience, and our homemade foods.

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III.The Company
3.1 Company Overview
 Parisian Bake Co. is a fast-casual restaurant serving sweat and savory pastries and a
variety of decadent desserts made in house.
 The restaurant will contain a lounge area with 15-20 tables and 6-9 booths for customers
to eat their food, drink sip on some coffee and read the morning papers in a relaxed
business ambience.
 The size of the restaurant will be roughly 1,500 square feet.

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3.2 The Menu
Beverages
Sodas: sprite, coke, diet coke, orange fanta, root beer.
Coffees: Assortment of N’espressos and coffees
Other: bottled water smart water, fruit drinks.
Beers: Stella Artois, Hogue, Carlsberg, and Heineken.
Soups: Chicken Noodle, Tomato Basil, Broccoli,
Vegetable, and Tortilla
Breads
Homemade Artisan breads – Onion, Sesame, Everything, Wheat, White, Rye, Focaccias.
Sandwiches: Turkey, Reuben, Club House, Ham N’
Cheese, Smoked Turkey with Vermont Cheddar
Panini’s
Steak & Sweat Bell Peppers, Chicken pesto

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Pastries
Savory
Pastries: Savory – cheese & spinach soufflé, cheese & tomato soufflé, sweat sausage & onion soufflé.
Quiches – cheese, meat, & vegetables.
Sweet
Puff pastry with fruit fillings, creams, and chocolates.
Assortment of Decadent Desserts

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3.3 Store Layout
Follow Panera Bread Company’s store layout. Our store will have a kitchen, a area for customers to
sit and read the morning papers.

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IV. The Marketing Plan
4.1 Marketing Objectives
Parisian Bake Co.’s marketing mix will cause the target audience to:
 Venture into our store (produce new customers)
 Explore our website for information and feedback (develop brand loyalty)
 Inform others about our business (create talk among people)
 Become a regular customer (establish repeat business)

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4.2 Targeting And Positioning:
4.21 Targeting
Parisian Bake Co. targets a variety of target markets. Our main target markets are professionals
headed to and from work. People attending corporate events (and or functions), parties, and
galas. Another target market will be sorority and fraternity groups who will place orders from
our company for their events (and or functions) with the hopes of spreading the word among
their peers at school. Also other events (and or functions) will include University of Kentucky
football tailgating as we will deliver large orders to the parking lots of Commonwealth Stadium
(the university’s football stadium).
29%
23%
20%
15%
10%
3%
Target Market
Profesionals
Events/Functions
UK Football Tailgaters
Parents
Greek Life
College Students

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4.22 Positioning
Parisian Bake Co. is positioned as
“A European Bakery and Dessert restaurant that offers the hectic customer a variety of homemade,
decadent, and tasty dishes that save both time and money.”

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4.3 Market Penetration
The restaurant will be located on Nicholasville Road, one of the busiest and frequently traveled
streets in Lexington. There will be heavy traffic constantly flowing from 7:00AM to 7:00PM on
weekdays. Our restaurant naturally has expectations that we will be talked about from local
professionals and students creating a new store opening buzz via email, text, social media, and
word-of-mouth.
Parisian Bake Co.’s Financial Plan in Section X includes in depth explanations concerning
the costs of our marketing budget.

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4.4 Pricing Strategy
These prices are drawn from restaurants across the baking segment of our industry (i.g. Panera
Bread Co., La Bon Pain, Provence Bread Co.). Elaborate more on our pricing strategy.
Drinks: Coffees $5-$8, Sodas $1.55, Beers $4.33 each, smart water $2.10.
Soups: Cup $3.12, Bowl $4.20
Sandwiches: Ham N’Cheese $5, Grilled Cheese $3.97, Smoked Turkey $9.95, Rueben $13.10,
Clubhouse Turkey $12.30, Chipotle Chicken Avocado BLT $12.10, Italian Salami &
Smoked Provolone $11-$13.10.
Panini’s: Steak $11-$16 Grilled Chicken Pesto $11-$16
Soufflés: $6-$8
Breads 7 Baguettes: Vary from $4-$12
Desserts: Vary from $3-$20.

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See works cited for references
4.5 Marketing Mix
A mix of marketing tools will be employed to display our restaurant’s unique image and dishes.
1) Local Colleges & Universities
 We will put up flyers in the student center lobbies of all the colleges in the Lexington
area. These student centers provide a meeting point for most students and constantly
have a flow of heavy traffic, which will be great for eye catchers.
 Leave flyers, menus, and coupons with fraternities and sororities with expectations that
they will take interest and place future orders for their events (and or functions).
2) Broadcast Media: Local programming and radio stations
 We will cook on local news channels.
 We will get advertisements on morning radio stations to reach professionals on their
way to work.
3) Direct Mail
 We plan to mail coupons, menus, and flyers to local businesses with expectations that
the business will place future orders for their corporate events (and or functions).
 We also have expectations that by mailing these information materials and sales
promotions to businesses (the places where professionals work) the professionals
working there would discuss and spread the word at the office.
4) Integrate into the local community
 We plan to make donations to local charities that are popular in the area and strike
accord with the people.
 We will also take part in community rebuilding and restoration activities for people
who’ve lost a home due to reasons beyond their control.
Our strategy is to develop Parisian Bake Co. into a respectable and recognizable brand producing
and delivering food consistent in taste, appeal, and cost.

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V. The Operations Plan
5.1 Location
Our restaurant’s strategy is to locate near a main street that contains a large volume of work traffic
thus developing a customer base of professionals. The following are our restaurant’s criteria for
location:
5.11 Real Estate Criteria
1) Population
We plan to locate near the heart of the flow of work traffic. The following are our criteria:
 Locate near a target market that is:
 Near local businesses (the places where professionals work)
 Near the University of Kentucky (a relatively short distance from the University)
 Income:
 Median household income in Lexington, KY is $50,279.
 The National Average is $47,966.166
 The Kentucky Average is $37,005.344
 Per capita income 4.6% greater than the national average and 26.4 greater than the
Kentucky average.
 High concentration of daytime population: 10,000 within a three mile radius
 Residential population relatively close: 20,000 within five and a half mile radius
2) Traffic Volume
Our restaurant favors locations with high vehicle traffic and to a lesser degree foot traffic.
3) Site Visibility
Drivers from all directions of the road should easily spot the site.
4) Site Neighbors
 The site is surrounded by other food businesses that will help attract people from the
area seeking to satisfy their appetites. In other words draw in the “food crowd.”
5) The Site
 Our restaurant should have a relatively high visibility due to its favorable location of
being located at a major intersection on the heavily traveled Nicholasville Road.
 Location specific parking is not required nor should it ever become an issue.
 Our restaurant is approximately 1,500 square feet.

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6) Demographics of The Area
Retail Sales Volume 1-mi. 3-mi. 5-mi.
2013 Restaurant Expenditures $4,175,592 $52,352,270 $103,336,289
2013 Supermarkets and other grocery
(except convenience) stores $14,300,615 $185,470,283 $364,070,373
2013 Beer, wine, and liquor stores $947,872 $10,769,882 $20,926,768
2013 Convenience stores $3,827,731 $52,481,500 $102,964,203
Population Change 1-mi. 3-mi. 5-mi.
Total: Employees (NAICS) n/a n/a n/a
Total: Establishments (NAICS) n/a n/a n/a
2013 Total Population 8,396 120,607 239,763
2013 Households 3,909 51,944 101,225
Population Change 2010-2013 66 543 1,463
Household Change 2010-2013 4 -138 -194
% Population Change 2010-2013 0.79% 0.45% 0.61%
% Household Change 2010-2013 0.10% -0.26% -0.19%
Population Change 2000-2013 -179 9,086 17,088
Household Change 2000-2013 -90 3,483 7,121
% Population Change 2000 to 2013 -2.09% 8.15% 7.67%
% Household Change 2000 to 2013 -2.25% 7.19% 7.57%
Population 1-mi. 3-mi. 5-mi.
2013 Total population: 30 to 34 years 530 7,966 17,400

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Housing 1-mi. 3-mi. 5-mi.
2000 Housing Units 4,182 51,519 101,068
2000 Occupied Housing Units 3,999 48,460 94,100
2000 Owner Occupied Housing Units 2,651 25,281 50,245
2000 Renter Occupied Housing Units 1,348 23,179 43,855
2000 Vacant Housings Units 183 3,057 6,964
% 2000 Occupied Housing Units 95.62% 94.06% 93.11%
% 2000 Owner occupied housing
units
66.29% 52.17% 53.40%
% 2000 Renter occupied housing
units
33.71% 47.83% 46.60%
% 2000 Vacant housing units 4.38% 5.93% 6.89%
(LoopNetInc. Is responsible for the gathering of this data on the area demographics.)

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Income 1-mi. 3-mi. 5-mi.
2013 Household Income: Median $53,014 $46,843 $46,441
2013 Household Income: Average $66,635 $63,965 $62,802
2013 Per Capita Income $31,024 $29,122 $27,697
2013 Household income: Less than $10,000 276 5,332 9,739
2013 Household income: $10,000 to $14,999 309 3,014 6,207
2013 Household income: $200,000 or more 136 2,278 4,072
% 2013 Household income: Less than $10,000 7.06% 10.26% 9.62%
% 2013 Household income: $10,000 to $14,999 7.90% 5.80% 6.13%
% 2013 Household income: $100,000 to
$124,999 6.96% 6.30% 6.62%
$149,999 5.78% 4.59% 4.21%

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$199,999 3.89% 3.68% 3.43%
% 2013 Household income: $200,000 or more 3.48% 4.39% 4.02%
5.12 Potential Location
Address: 2200 Nicholasville Road, Lexington, KY
Phone: (859) 275-1955
Based on our criteria, we are negotiating a deal to purchase the old Fazoli’s at a busy intersection
on Nicholasville road.
Our restaurant will be located approximately ½ mile from Baptist Health Lexington Hospital, 2
miles from the University of Kentucky campus, 3 miles from downtown and 5 miles from the Blue
Grass Airport. Numerous restaurants, financial institutions and shopping centers are located in the
immediate area offering an added convenience for employees and students. Close proximity to
these markets make the site an ideal location for serving both the residential population of
Lexington and the expanded retail trade area.
Located adjacent to Zandale Shopping Center, an 80,000 sf community retail anchored by Chase
Bank, Fazoli' s, Once Upon a Child, Penn Station, Critchfield Meats and more. Adjacent to
Walgreen' s, O' Charley's, Trader Joe' s, Kroger and TJ Maxx.
Nicholasville Road is the busiest regional retail corridor in the market.
High traffic area just off Nicholasville Road with access from Lowry Lane. 43,989 (' 07) average
daily traffic count on Nicholasville Road in front of site. Ideal location near Baptist Health Lexington
Hospital, University of Kentucky, downtown Lexington and surrounding dense residential
population.

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5.2 Hours Of Operation
The restaurant will be open for breakfast, lunch, and dinner. We will begin preparing the food early
in the morning starting at 3:00AM. Bellow is a chart detailing the full schedule for our hours of
operations: elaborate on our deliveries i.e. to UK football tailgaters & local businesses.
Mon-Fri Sat Sun
Food Prepping 3:00AM 5:00AM Closed
Open Doors 6:30AM 8:30AM Closed

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5.3 Employee Hiring And Training
In time we will develop and draft a comprehensive hiring and training manual. For now, we are
incorporating the guidelines and principles of successful bakery companies such as Panera Bread
Co. and La Bon Pain. Kitchen employees for our first store will be primarily made up of our two
COO’s and CEO during our first year of business. Until then we will be searching for cooks and
kitchen helpers with prior experience in the restaurant industry.

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29
5.4 The Production
The kitchen will be closed off from customers view to make a cleaner and more organized
ambience. Like most Fast Casual Restaurants, a computer from the front registers will receive
kitchen orders. The kitchen will comprise roughly 40% of the store space while 10% is made up of
food display cases and the remaining 45% is made up of seating areas, and lastly restrooms will
comprise the final 5% of store space.

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30
5.41 Employees
Fulltime employees: For the first year the executive staff will be making the food.
We will hire fulltime employees to clean the kitchen, premise, and dinging areas. There will also be
fulltime employees to clean the dishes and cookware.
Hourly employees: We will employ part time employees to act as deliverymen transporting the
orders to the customers, specifically for functions and (or events), UK Football Tailgaters, and
Greek Life functions and (or events).

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31
5.5 Facilities And Equipment
Space: Our restaurant will undergo major renovations both on the inside and out.
We will spend approximately $250,000 on renovating the exterior and interior.
Equipment: 1) We will purchase a large amount in kitchen equipment.
We will spend approximately $71,850 on professional kitchen equipment.
2) We will spend approximately $3,150 on culinary tools.

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5.6 Suppliers
 We will source our ingredients from Sysco and or Performance FoodGroup
 We will reorder supplies and ingredients on an as need basis from Sysco and or PFG.
 This will be the same for our cleaning supplies.

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5.7 Detailed Timeline
July Aug Sept Oct Nov Dec Jan Feb
Menu development X
Restaurant concept designer X
Get estimates from kitchen suppliers Ohio X
Get estimates from kitchen suppliers Tennessee X
Get estimates from kitchen suppliers Kentucky X
Select chefs for Louisvillerestaurant X
Select chefs for Covington restaurant X
Select chefs for Cincinnati restaurant X
Select chefs for Cookeville restaurant X
Select chefs for Nashvillerestaurant X
Look at Louisvillesites with real estate agents X
Look at Covington sites with real estate agents X
Look at Cincinnati sites with real estate agents X
Look at Cookeville sites with real estate agents X
Look at Murphy’s Borough sites with real estate agents X
Look at Nashville sites with real estate agents X
Meet vendors to prepare orders and delivery schedule X
Order food and beverage products X
Place hiring adds/conduct interviews. X
Order equipment, small wares, POS X
Insurance in place X

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34
Apply for permits X
Select GM & Ass. MGR for Louisvillestore X
Select GM & Ass. MGR for Covington store X
Select GM & Ass. MGR for Cincinnati store X
Select GM & Ass. MGR for Nashville store X
Purchase office equipment X
Set up name & legal entity. Obtain taxpayer ID X
Finalize operations manual and employee handbook X
Meet with exterior and interior designers & renovators April
Set up utility service X
Dress rehearsal with family and friends X
Grand opening X
VI. The Development Plan
6.1 Launching Plan
We are strategically planning to cater for free for a University of Kentucky Athletic Department
meeting and plan to donate some of our foods to charity auctions. We expect and hope that this will
help not only spread the word about our new store but also will leave a positive feeling of impact in
the minds of Lexingtonians. By helping the community we feel that it will allow our restaurant to
develop a brand name and reputation as a “community restaurant” and or place to go and read the
morning news paper.

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35
VII.The Growth Plan
7.1 Current Growth Plan:
For the next five years our plan is to grow slowly as to ensure a strict quality control, establish a
brand name with a solid reputation, and produce consistent sustainable cash flows. In year one we
will open our first store in Lexington, KY. In year four we will open a store in Louisville, KY.

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36
7.2 Future Growth Plan:
Our plan is to grow via franchising but we estimate that is 12-15 years later in the future.
Obviously our goal to franchise nationwide is not immediate, in that we want to first develop a
brand name and the reputation that is associated and consistently produce sustainable cash flows.
Those key objectives will help convince investment bankers to establish a higher IPO offering price.

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37
VIII.The Team
8.1 Launch Team
Founder & Chief Executive Officer: Zachary J. Lipson has over
ten years of experience in cooking. He worked in the home office
of one of Kentucky’s most profitable family McDonald’s, Healy
Family McDonalds’.
Chief Operating Officer: Brooke Frohlich has worked in the
restaurant industry for over six years working up from hostess,
To-go server, server to front of
house manager. Along with the Zachary Lipson
restaurant industry she has other
experience including farm work,
hospital care and party
planning.
Senior Vice President of Operations: Maggie
Cohen – has worked at several restaurants as
both a hostess and a server.
O’Charleys (waitress & bartender) Oct 2011-
January 2015
Enterprise-Rent-a-Car (intern) May 2014-
present
Brooke Frohlich

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38
Maggie Cohen
Chef: In year one, the executive staff will be in the kitchen cooking. This will guarantee a
strict quality control system is in place and ensure our restaurant’s brand name is being
developed, as it should. Also there will be very little office work in our initial year and to
save some costs we will employ our executive to cook in the kitchens in that first year.
8.2 Board of Advisors
Dr. Paul Lipson Dr. Lipson is an Anesthesiologist who helped build and develop AMG (Aesthesia
Medical Group) one of the top medical groups in the country that provides critical care to several
Nashville hospitals. In the late 1980’s Dr. Lipson joined AMG and became a partner of the group in
the early 1990’s. Since then, the medical group has quadrupled in size and operations, overseeing
every surgery in all the hospitals they operate. Dr. Lipson will be an investor in our business.
Donald Cunningham Mr. Cunningham is a prominent developer who started a successful
construction and building company in Nashville, TN that provides services all
throughout Tennessee and the deep South. He has over ten years experience as an
owner operating of a gas station franchise and some food franchises as well. Mr.
Cunningham will be an investor in our business.
Zachary J. Lipson Mr. Lipson has over ten years of experience in cooking. He
worked in the home office of one of Kentucky’s most profitable family McDonald’s,
Healy Family McDonalds’. He will be the owner operator of the company acting as the
Chief Executive Officer.
Zachary Lipson
Jordan Lipson Mr. Lipson worked for several years
at a Venture Capital called Clayton Associates firm in
Nashville, TN. He was an analysts overseeing major
investments in up and coming healthcare startup

Parisian Bake Co.®
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39
companies as Nashville is a hub for healthcare companies and the healthcare industry. He was an
analyst who worked on Wall Street and worked for an investment firm that helped large
franchisees sell to wealthy buyers.
Jordan Lipson
Dr. Paul Lipson
X. Financial Statements
9.1 Capital Requirements
Initial funding is by two private lender investors who will provide a total of $2,500,000 in funds.
Listed bellow is a list of all of our initial startup costs.
_______________________________________________________________________________________________________________________________
Source of Funds Uses of Funds
_______________________________________________________________________________________________________________________________
Debt $2,500,000
Legal Costs $ 10,000
Accounting Fees $ 20,000
Office Equipment $ 4,750
Renovation Cost $ 207,050
1ST Year Marketing $ 55,000
Opening $ 6,500
Inventory $ 18,000
Working Capital $ 155,000
Building Permits $ 500
Building Purchase $ 1,944,700
Maintenance $ 3,500
Kitchen Equipment $ 71,850

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Culinary Tools $ 3,150
_______________________________________________________________________________________________________________________________
Total Sources $2,500,000 Total Uses $2,500,000
_______________________________________________________________________________________________________________________________
Parisian Bake Co.
9.2 Pro Forma IncomeStatement
Year 1
Gross Sales $1,950,000 N/A
Cost of Goods Sold:
Food & Beverage $435,000 22%
Beer & Wine $5,000 0%
Paper Costs $48,000 2%
Direct Labor $130,000 7%
Store General Manager $60,000 3%
Assistant Store Manager $40,000 2%
Total Cost of Goods Sold $718,000 37%
Gross Profit $1,232,000 63%
Controllable Costs:
Repair and Maintenance $1,500 0%
Vans $20,000 1%
Culinary Tools/Equipment $3,150 0%
Restaurant Equipment $71,850 4%
Gas $4,000 0%
Electric $11,000 1%
Water $3,800 0%
Telephone/Computer $3,000 0%
Pest Control $200 0%

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41
Office Supply $4,750 0%
Payroll Services $3,500 0%
Administrative (COO & CEO) $300,000 15%
Legal & Accounting Fees $30,000 2%
Advertising & related Expenses $55,000 3%
Renovation $207,050 11%
Total Controllable Costs $718,800 37%
Non-Operating Costs:
Insurance $10,000 1%
Depreciation Expense $2,395 0%
Accounting Fee $5,000 0%
Loan Payment (Interest) $200,000 10%
Loan Payment (Principal) $250,000 13%
Total Non-Operating Costs $467,395 24%
Total Operating Expenses $718,800 37%
Operating Income (Loss) $509,700 26%
Income Taxes $205,280 10%
Net Income (Loss) $307,920 16%
Year 2
Gross Sales $2,452,500.00 N/A
Cost of Goods Sold:
Beer & Wine $6,000 0%
Controllable Costs:
Vans $0 0%
Restaurant Equipment $0 0%
Gas $4,000 0%
Electric $12,000 0%
Water $3,950 0%

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42
Legal & Accounting Fees $0 0%
Advertising & related
Expenses $20,000 1%
Renovation $0 0%
Operating Income (Loss) $847,509 35%
Income Taxes $296,628.15 12%

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43
Year 3
Cost of Goods Sold:
Beer & Wine $6,000 0%
Controllable Costs:
Vans $0 0%
Gas $4,000 0%
Electric $13,000 0%
Water $4,100 0%
Renovation $0 0%
Operating Income (Loss) 1,024,397 39%
Income Taxes 358,539 14%
Year 4

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44
Cost of Goods Sold:
Beer & Wine $12,000 0%
Total Cost of Goods Sold $1,572,000 33%
Controllable Costs:
Vans $40,000 1%
Gas $550 0%
Electric $23,000 0%
Water $4,250 0%
Renovation $0 0%
Income Taxes 787,628 16%
Net Income (Loss) 1,462,738 30%

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45
Total
Year 5
Cost of Goods Sold:
Beer & Wine $20,000 0%
Controllable Costs:
Vans $0 0%
Culinary Tools/Equipment $500 0%
Gas $600 0%
Electric $23,500 0%
Water $4,350 0%
Renovation $0 0%
Income Taxes 1,815,461 24%
Net Income (Loss) $3,371,570 44%

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Cost of Goods Sold:
Food & Beverage $3,365,000 17%
Beer & Wine $49,000 0%
Gross Profit $14,080,794 72%
Controllable Costs:
Vans $60,000 0%
Gas $13,150 0%
Electric $82,500 0%
Water $20,450 0%
Pest Control $1,800 0%
Administrative (COO & CEO) $1,500,000 8%
Legal & Accounting Fees $30,000 0%
Advertising & related
Expenses $180,000 1%
Renovation $210,550 1%
Total Controllable Costs $2,324,465 12%
Loan Payment (Interest) $1,000,000 5%
Loan Payment (Principal) $1,250,000 6%
Total Non-Operating Costs $2,404,721 12%
Total Operating Expenses $4,729,186 24%
Income Taxes 3,462,136 18%
Net Income (Loss) $5,889,472 30%

Parisian Bake Co.®
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47
9.3 Summary Financials
The following is a summary of our financials.
Our CEO (Zachary Lipson) will receive an annual salary of $110,000. Our two Chief Operating
Officers (COO Brooke & Sr. VP of Ops Maggie) will receive a base salary of $95,000. GM’s salary contract
will be $60,000. Each restaurant will have an assistant GMwith an annual salary of $40,000. Here are
management’s predictions for store net income for the next five years: 16% year 1, 21% year 2, 25% in
year 3, 30% year 4, 44% in year 5. As for DL we plan to hire 20 direct labor workers per store. DL will be
approximately $130,000 per year per store. Each new city of expansion will require the purchase of a
$20,000 delivery van. Our principal investors loaned us money: Dr. Paul Lipson and Don Cunningham,
who each loaned us $1,250,000 for a combined $2,500,000 in total funds. We will be paying two semi-
annual interest payments of $50,000 at 4% interest (per lender/investor) for 10 years. We will also be
paying principal payments of $125,000 a year (per lender/investor) for 10 years. We estimate that
restaurant equipment purchases for year one will be $71,850 and culinary equipment will be $3,150
and we also estimate costs pertaining to technical issues (repair & maintenance) will be $3,500. Each
year we will use double declining depreciation method to charge depreciation against net income. This
depreciation method will count twice as much of the asset’s book value each year as an expense. This
will entail spreading the cost of $71,850 worth of kitchen equipment, for our Lexington store, over the
assets useful life of 10 years. Note: The assets begin being used beginning on November 1st, 2015.
Bellow is a table showing our total yearly depreciation:
Year DE
2015 $2,395
2016 $13,891
2017 $11,113
2018 $11,290
2019 $21,032
Further costs include:
Note: We’ve estimated for the first fives years each store will bring in approximately $1,950,00 in
sales.
We estimate and initial required investment of $1,944,700 for the purchase of the Nicholasville
Road Fazoli’s building.
9.4 Depreciation Schedule

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48
Store: Lexington Year: 2015 Month: November Day: 1st
Store: Louisville Year: 2018 Month: November Day: 1st
Year
Book
Value Year
Start
Depreciatio
n Rate
Depreciation
Expense
Accumulated
Depreciation
Ending
Book
Value Year
End
2018 $72,000 3% $2,400 $2,400 $69,600
2019 $69,600 20% $13,920 $16,320 $55,680
2020 $55,680 20% $11,136 $27,456 $44,544
2021 $44,544 20% $8,909 $36,365 $35,635
2022 $35,635 20% $7,127 $43,492 $28,508
2023 $28,508 20% $5,702 $49,193 $22,807
2024 $22,807 20% $4,561 $53,755 $18,245
2025 $18,245 20% $3,649 $57,404 $14,596
2026 $14,596 20% $2,919 $60,323 $11,677
2027 $11,677 20% $2,335 $62,658 $9,342
2028 $9,342 17% $1,557 $64,215 $7,785
X. References
Year
Book
Value Year
Start
Depreciation
Rate
Depreciation
Expense
Accumulated
Depreciation
Ending
Book
Value Year
End
2015 $71,850 3% $2,395 $2,395 $69,455
2016 $69,455 20.00% $13,891 $16,286 $55,564
2017 $55,564 20.00% $11,113 $27,399 $44,451
2018 $44,451 20.00% $8,890 $36,289 $35,561
2019 $35,561 20.00% $7,112 $43,401 $28,449
2020 $28,449 20.00% $5,690 $49,091 $22,759
2021 $22,759 20.00% $4,552 $53,643 $18,207
2022 $18,207 20.00% $3,641 $57,284 $14,566
2023 $14,566 20.00% $2,913 $60,197 $11,653
2024 $11,653 20.00% $2,331 $62,528 $9,322
2025 $9,322 16.67% $1,554 $64,082 $7,768

Parisian Bake Co.®
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10.1 Works Cited
1. Troxell, Nicole. "Dessert Trends Indicate Consumers Want a Mix of Flavors and Textures."
Pizza Marketplace. N.p., 17 Feb. 2015. Web. <http%3A%2F%2Fwww.pizzamarketplace.com%2Farticles%2Fdessert-
trends-indicate-consumers-want-a-mix-of-flavors-and-textures%2F>.
2. Touryalai, Halah. "Lunchtime: Americans Spend Nearly $1K Annually Eating Out For Lunch."
Forbes.com. N.p., 25 Sept. 2013. Web. <http://www.forbes.com/sites/halahtouryalai/2013/09/25/lunchtime-
americans-spend-nearly-1k-annually-eating-out-for-lunch/>.
3. "Facts at a Glance." National Restaurant Association. N.p., 18 Feb. 2015. Web. 11 Feb. 2015.
<http://www.restaurant.org/News-Research/Research/Facts-at-a-Glance>.
4. Team, Trefis. "How The Fast Casual Segment Is Gaining Market Share In The Restaurant Industry."
Forbes. Forbes Magazine, 23 June 2014. Web. 12 Feb. 2015.
<http://www.forbes.com/sites/greatspeculations/2014/06/23/how-the-fast-casual-segment-is-gaining-market-
share-in-the-restaurant-industry/>.
5. "Fast Casual Industry Analysis 2015 - Cost & Trends." Fast Casual Industry Analysis 2015 - Cost &
Trends. N.p., n.d. Web. 18 Feb. 2015. <https://www.franchisehelp.com/industry-reports/fast-casual-industry-report/>.
6. "2015 Market Research Report on Retail Bakeries Industry." 2015 Retail Bakeries Industry Statistics
Market Research Report. Anything Research Company, Analysis of U.S. Federal Statistics, n.d. Web. 23 Feb. 2015.
<http://www.anythingresearch.com/industry/Retail-Bakeries.htm>.
Bread picture: https://www.sobeys.com/en/promos/artisan-bread
Steak Panini: http://www.sheknows.com/food-and-recipes/articles/1030109/caramelized-onion-steak-swiss-chard-
panini-recipe
Chicken Panini: http://www.google.com/url?q=http://bevcooks.com/2012/02/chicken-pesto-
panini/&sa=U&ei=MsAmVfnaHoPisAWR8oKQCA&ved=0CB4Q9QEwBA&usg=AFQjCNE9Enz2p3eeKrncQ7uDyZKTxxBz
Eg
Cheese soufflé:
http://www.google.com/url?q=http://www.youtube.com/watch%3Fv%3DKQYYMz0IZXg&sa=U&ei=9cMmVf-
ICMHssAXo_oP4DA&ved=0CBoQ9QEwAjgU&usg=AFQjCNH-2E3falbinw-kOOTO2EXTZBms0A
Dessert displayed: http://mahati-followyourdreams.blogspot.com/2011/08/laduree-my-love.html
Median Household Income of Lexington, KY:
www.deptofnumbers.com/income/kentucky/lexington

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