Final business plan

The Lotus Café and Wellness Center
Business Proposal
Chelsea Flaherty
San Francisco State University
Fall 2015

1
Mission Statement, Goals, and Objectives
Our mission at Lotus Café and Wellness Center is to provide an atmosphere where people
from all walks of life can come eat and learn how to prepare nutritious meals on any budget. Our
goal is for guests to be able to obtain well balanced and affordable meals on their lunch hour. We
will serve lunch Monday through Friday 11 am to 3 pm. Another goal is to help the community
develop healthy eating habits. We will achieve this by teaching weekday, evening and weekend
cooking classes to help others learn skills they can use at home, whether they are single or
feeding a family. We will also achieve this by targeting our youth. Within the first year, we will
develop a contract with a neighborhood high school to deliver healthy options for lunch time and
afterschool sports programs. A long term goal will be to expand this to multiple schools. Our
emphasis will be on a farm-to-table model where all ingredients will be from local sources,
benefitting the community and boosting local economy.
Classification and Type of Food Service
Lotus Café and Wellness Center is a commercial fast-casual restaurant and wellness
center owned and operated by a Registered Dietitian. It stands apart from competitors by offering
only healthy and nutrient dense meals that also taste amazing. Our foodservice is categorized as
conventional, where ingredients are delivered in their original state and preparation is done
onsite (Hudson, 2013, p. 8). All ingredients will come from local farmers. The recipes will be
developed by a dietitian, along with a chef, with an emphasis on proper nutrition guidelines,
established by the USDA Center for Nutrition Policy and Promotion (CNPP) and the Harvard
School of Public Health. A proper diet should contain half fruits and vegetables along with
protein, whole grains, and limited amounts of dairy and healthy oils (hsph.harvard.edu). Our
meals will be centered around this idea while being creative and delicious.

2
Lotus Café and Wellness Center is open to the public for lunch from 11 am to 3 pm.
Guests will be able to dine-in, take-out, or have their lunch delivered by bicycle within a one-
mile radius. The chef and two others will arrive at 8 am to do preparation for lunch. At 10:30 am
two employees will arrive to open the front and get ready to assist guests. Doors will open at 11
am and the delivery person will arrive at that time. Guests will order and pay at the counter, then
the food will be brought to them when it is ready. Food will be served until 3 pm. The dietitian
will be available by appointment to have one-on-one consulting with anyone seeking meal
planning advice. Clean up will be done by all employees from the lunch shift, excluding the chef,
and will be completed by 4:30 pm.
The wellness center component will focus on teaching guests how to continue healthy
eating at home. Classes will be taught by either the chef or dietitian. Guests can come in and pay
$20 to take hands-on cooking classes to learn how to recreate meals from our recipe book. Some
classes will be family friendly to get kids involved in meal preparation. Guests will eat the meals
prepared at the end of the class to make it a fun and rewarding experience. Classes will be held at
5:30 pm on weekdays and per our schedule on the weekends. We will set up rotating times to
make it available to a variety of guests. The teacher along with two employees will be needed for
set up, execution, and clean up of the classes.
Target Population
The target population will be pretty broad since we offer many different components. By
contracting with the high school and having kid friendly classes, we will target San Francisco’s
youth. Our lunch time meals will be catered to busy, local people looking to grab some lunch.
The classes will be available for men and women looking to increase their healthy cooking skills,
many of whom will be young adults who might not have much experience in the kitchen. We

3
believe it is important to make these classes available to anyone interested, regardless of income.
"Although healthy foods aren't always more expensive, many low-income people face time and
resource challenges when it comes to putting healthy food on the table” (Eating on a Budget the
USDA Way, 2014). We plan to connect with the local food bank to market special classes to
low-income people. These will be made available at a reduced rate or free to those in need. We
believe, "Promoting nutritious food choices can have a positive impact on improving the health
and diet quality of Americans” (Eating on a Budget the USDA Way, 2014). “More than two
thirds of US adults and about a quarter of 2- to 5-year-olds are overweight or obese, and one
third of school-age children, including adolescents, are overweight or obese” (Bryant, Hess &
Bowen, 2015, p. 220). It is very important to reach a wide range of people to help combat this
epidemic.
Location of Business
Lotus Café and Wellness Center will be located in the Upper Market neighborhood of
San Francisco. This is a very central location, neighboring the Castro, Twin Peaks, the Mission,
and Noe Valley (http://www.sf-planning.org/index.aspx?page=1654). This area is easily
accessible by public transit and has beautiful views of the city (http://www.sanfrancisco.com
/neighborhoods/#uppermarket). With many businesses and residential areas all around us, we
believe we will be able to reach all groups described in the target population section
aforementioned. There are also five high schools within those nearby neighborhoods that we
could extend our services to in the future to further build our client base. Asawa San Francisco
School of the Arts, Mission High School, John O’Connell High School, SF International High
School, and Ida B. Wells High School are all within reach (http://www.sfusd.edu/en/schools
/high-schools.html).

4
Sample Menu
The menu at Lotus Café and Wellness Center will incorporate many flavors that appeal to
the diverse population of San Francisco. In this area we love Mexican, Italian, Asian, and
American food. The goal is to take these cuisines and make healthier versions of some signature
dishes. We will offer sustainable seafood dishes following the guidelines set by the Monterey
Bay Aquarium. Organic ingredients will be used as much as possible. We will focus on proper
portion sizes and balanced meals. The menu will change with the seasons and ingredients will
come from nearby farms to support our local economy. We are blessed to have so many fresh
foods grown in this beautiful area and we intend to take full advantage.
Lunch Entrees, servedwith fresh seasonal fruit
Rolled Oat, Lentil & Veggie Tacos
Fresh Kale & Spinach Pesto, served over pasta or spaghetti squash
Sweet & Sour Tofu or Mary’s Chicken
Margarita Pizza with Cauliflower Crust
Black Bean Burger
Wild Salmon & Cucumber Salad
Spinach & Raspberry Salad
Wild Gulf Prawn or Blackened Mary’s Chicken Caesar Salad
Wild Mushroom Soup
Butternut Squash Soup
Juices
Mean Green
Sweet Beet
Pineapple Mint
Coconut Dream
Smoothies, choice of almond or coconut milk base
Strawberry, Peach, Spinach
Pineapple, Apple, Cucumber
Banana, Blueberry, Kale

5
Layout and Design
The kitchen at Lotus Café and Wellness Center has been designed to meet our needs and
mission. We will use healthy cooking practices and fresh, local ingredients. The equipment we
have carefully chosen will help us accomplish this, while keeping sustainability in mind. Most
hot foods will be cooked on the range or baked to minimize the need for excessive cooking oil.
We don’t have a deep fryer. The produce is delivered using a just-in-time system from local
vendors, so we order what we need (Hudson, 2013, p. 364). The refrigeration is kept to a
minimum, since we will receive shipments often. There is plenty of storage for pantry and dry
products that can be bought in bulk. The storage closet in the dining room is used for keeping
supplies needed for the cooking classes. The dining room will be rearranged when the classes
take place. The kitchen layout has been designed so that employees can work as a team and do
not feel confined to a small space. We feel a healthy work environment is just as important as a
healthy diet.
The kitchen is an open, modified straight line model, to minimize intersections, while
encouraging team work (Hudson, 2013, p. 380-381). The flow of work starts in the back left
corner of the kitchen. This is the receiving area. Food delivered will be received by the morning
kitchen staff, and transferred to its proper location: reach-in refrigerator, freezer, preparation
table, front counter refrigerator, or dry storage shelving units. Shelving is located in the
preparation area and in the baking area so items are stored where they are needed. The large
reach-in refrigerator has four glass doors so dairy, produce, meats, and ready-to-eat foods will
each have their own designated, clearly marked space. The worktop refrigerator in the front
counter area will be used for produce needed for smoothies and juices, as well as nut milks and

6
dairy products used in these beverages. The Vitamix and juicer are located on top of the worktop
refrigerator for preparing drinks for guests.
The next step in the flow of work is preparation. The large preparation table is located
right next to the cold storage for easy access. There is a two compartment drop in sink installed
on the table for washing produce and any other food preparation. There is also a food processor
and blender on that table. The slicer, on an equipment stand, is located nearby for slicing fresh
meats, cheese, and produce. The other preparation area is used for baking. It contains a large
baker’s table, a planetary mixer, a convection oven with proofing shelves, and a cooling rack for
cooked baked goods. Bins for flours and sugar will be under the baker’s table for easy access. A
hand washing sink for kitchen staff is also in the baking area.
After preparation is done, the food will go to the cooking area. Cold food is transferred to
the refrigerated salad prep table and food to be cooked will go to the chef’s steam table. The
salad prep table has room for twelve pans on top and a two door refrigerator on the bottom. The
steam table has four openings and racks above to set plates that are ready for service. There is a
four burner range with a 24” griddle and two ovens for cooking hot food. Next to the range is a
wood top worktable with a wall mounted salamander broiler above it. The refrigeration,
preparation, and cooking areas are all open and close together so it will be easy to access
anything needed to prepare meals.
Once meals are cooked and ready for service, they are carried out through the left door to
the front counter area by front of house staff. Takeout orders will be brought to the counter and
given to the guests or will be taken by the delivery person. Dine-in guests will be given a number
when they order and the food will be dropped off at their table. Front of house staff will keep an
eye out for guests that are finishing up. When the guests leave, these employees will pick up the

7
used dishes and carry them through the right side door in the front counter area and into the ware
washing zone to complete the work cycle.
The ware washing zone goes from right to left for washing dishes and left to right for
kitchen equipment. It has a soiled dish table with racks for glassware and a tub for utensils. On
the other end of the table, is a pre-rinse sink with a wall mounted sprayer. Once dishes are rinsed,
they enter the dishwasher for sanitizing. On the far left is a three compartment sink with drain
boards on both sides. In between the right drain board and the dishwasher is the clean dish table
with racks above for clean dishes to cool off. After dishes are cleaned and cooled, they will be
returned to their proper location. Plates and pans are kept on the storage racks between the ware
washing and cooking areas. Glassware is kept in the front counter area. There is a hand washing
sink located in the front counter area for front of house employees and another between the ware
washing zone and break area for use after clearing tables and taking breaks. It is important to
have hand washing sinks easily accessible to maintain a safe environment for food service.
We care about the environment at Lotus Café and Wellness Center. We use many
sustainable practices to minimize our carbon footprint. As previously mentioned, we only have
the necessary refrigeration for just-in-time delivery methods. This helps with energy usage. All
our equipment is Energy Star compliant and energy efficient lighting is used throughout the
building. To minimize water usage, all of our sinks have low flow valves, the faucets have
sensors, and we use tank less water heating (Walsh, 2015, p. 16). Dine-in meals and drinks are
served with wash and reuse wares and utensils. Takeout meals are all served in recyclable
packaging. In the kitchen we compost and recycle to minimize waste. All kitchen linens are sent
out for washing instead of being disposable. All the food we serve is produced using sustainable
practices and most is locally sourced. Animal welfare is important to us. In a time where so

8
many people are careless about the planet, we believe all of this is necessary to maintain a
healthy environment for future generations.
Lotus Café and Wellness Center cares about the environment and health, safety and
general wellbeing of our staff and guests. The open, modified straight line layout of the kitchen
leads to interaction between staff members while maintaining safe traffic patterns and
minimizing possible accidents. Plenty of safe food storage keeps everything fresh and available
when needed. Multiple hand washing sinks keep germs out of food. Sustainable practices ensure
an eco-friendly work environment. The kitchen was designed with our mission statement in
mind. All of the food will be prepared in a healthy manor to ensure our guests will receive
nutritious, well balanced meals.
Budget & Justification
Lotus Café and Wellness center is a for-profit restaurant that provides valuable education
that can be used by our guests after hours. We will have customers for dine-in and take-out at
lunch time, as well as classes and counseling services. These sales will generate the majority of
our income. School catering sales will also bring in some income, but not as much at first. Our
team is small, with each member working together to complete the tasks of the day. The owner
will be involved in day to day work to save on management costs.
The majority of our revenue will be made during lunch time, Monday through Friday. We
expect a lot of our lunch sales to be take-out, as many people have short lunch breaks. We
estimate about one hundred takeout orders per day, with each guest’s check being about $15,
with 15% being on beverages. We estimate about sixty dine-in guests per day, with an average
guest’s check being $18, with 20% being on beverages, as people tend to order extra things when
they eat in the café. The group cooking classes and individual counseling sessions will add about

9
forty-five guests per week, at a cost of $20 per person. Children are free during family classes.
School catering will be done three times a week, starting with one hundred and fifty orders a day
to start, with room for growth as we have more demand or get new accounts. The portions will
be set so we can offer an affordable cost of $6 per person and still generate a profit. Total food
revenue will be $809,400 and total beverage revenue will be $114,660 before expenses, adding
up to the total sales revenue of $924,060.
At Lotus Café and Wellness Center, we will only use high quality ingredients to make
our food and beverages. This can be costly. Food cost is 30% of food sales, or $242,820.
Beverage cost is 20% of beverage sales, or $22,932. The total cost of sales is $265,752, leaving a
gross profit of $658,308, after all ingredients are subtracted. We believe it is important to use
high quality, fresh, local ingredients and are willing to pay for it.
Our controllable expenses include payroll, employee benefits, and other expenses, such
as office supplies and utilities. Payroll will come out to 35% of our total sales. Fixed payroll will
be 20% and will include employees on salary, the chef and dietitian/owner. The variable payroll
will be 15% and will include hourly kitchen and front of house employees, including the delivery
person. These numbers are $184,812 and $138,609 respectively. Employee benefits will be 10%
for the total payroll, $32,342. We believe it is important to offer benefits to our employees so
they can stay healthy and happy. If employees are happy they stay with you, which keeps the
cost of training and turnover down. Other controllable expenses come out to 5%, or $46,203.
After deducting these expenses from the gross profit, we are left with $256,342.
Other costs of operation include occupancy costs, interest and depreciation. The
occupancy cost is 20% of our income and comes out to $51,268. The interest is 5% of total sales
and totals $12,817. Depreciation of equipment is 2% of total sales and is $5,127. After

10
subtracting these costs from the total income, the Lotus Café and Wellness Center is left with a
nice profit of $187,130. With a profit this high, we will be able to offer free classes to low
income people to maintain our goal of helping people from all walks of life eat healthier.
The Lotus Café and Wellness Center generates a very positive profit, while sticking to
the mission of providing healthy, affordable meals to all of our guests. We treat our employees
well, with generous pay and benefits, to keep our team working together towards our mission.
We can provide services to people on limited budgets, helping to bring the community together
through food. A healthy diet leads to a more positive life and we believe in passing this on to
everyone who walks through our doors.
Conclusion
Lotus Café and Wellness Center will be an asset to San Francisco in so many ways. From
fresh meals made quickly and affordable, to counseling and meal planning services, to cooking
classes, to making healthy food available to teenagers, we have it all. Having a central location
that is easily accessible will make our services available to a wide range of guests. Connecting
with the local food bank will help us reach some of the members of the community that are in
need. Lotus Café and Wellness Center strives to provide an environment that is encouraging and
welcoming to anyone who walks through the doors. Thank you for sharing our vision for a
healthier San Francisco.

11
Appendix
Revenue Budget
Meal Period # of
Seats
Turnover Average
Check
# of
Days
per
wk.
# of
Weeks
Total Food
Sales (a)
Beverage
%
Total
Beverage
Sales
(b)
Mon.-Fri.
Dine-In Lunch 30 x 2 x $18 x 5 x 52 = $280,800 x 20 = $56,160
Mon.-Fri.
Takeout 100 x 1 x $15 x 5 x 52 = $390,000 x 15 = $58,500
Classes &
Counseling 15 x 1 x $20 x 3 x 52 = $46,800 x 0 = $0
Catering # of Meals Average
check
# of
Weeks
School
Catering 150 x $6 x 3 x 34 = $91,800 x 0 = $0
Total Food
Sales
Total
Beverage
Sales
$809,400 $114,660

12
Expense Budget
SALES
Food (a)
$809,400
Beverages (b)
$114,660
Total Sales (c) c = a + b
$924,060
FOOD & BEVERAGE COSTS
Food (d) d = 30% x a
$242,820
Beverages (e) e = 20% x b
$22,932
Total Cost of Sales (f) f = d + e
$265,752
GROSS PROFIT (g) g = c - f
$658,308
CONTROLLABLE EXPENSES
Fixed Payroll (h) h = 20% x c
$184,812
Variable Payroll (i) i = 15% x c
$138,609
Employee Benefits (j) j = 10% (h + i)
$32,342
Other Controllable Expenses (k) k = 5% x c
$46,203
Total Controllable Expenses (l) l = h + i + j + k
$401,966
INCOME BEFORE OCCUPANCY COSTS,
INTEREST, DEPRECIATION & INCOME
TAX (m)
m = g - l
$256,342
Occupancy Costs (n)
$51,268
INCOME BEFORE INTEREST,
DEPRECIATION & INCOME TAX (o)
o = m - n
$205,074
Interest (p)
$12,817
Depreciation (q)
$5127
Restaurant Profit/(Loss): (r) r = o – p - q
$187,130

13
References
Anonymous. (2014, August 1). Eating on a Budget the USDA way. USA Today (Magazine),
143(2831), 5. Retrieved from http://0-search.proquest.com.opac.sfsu.edu/docview
/1553752353?accountid=13802
Big Tray, Restaurant Equipment and Supplies, Big Tray Inc. (2015). Retrieved from
http://bigtray.com/default.asp
Bryant, P., Hess, A., & Bowen, P. (2015). Social determinants of health related to obesity. Jnp-
journal for Nurse Practitioners, 11(2), 220-225. http://0-dx.doi.org.opac.sfsu.edu/
10.1016/j.nurpra.2014.10.027
City and County of San Francisco Planning Department. (2015). Map of San Francisco
Neighborhoods [Interactive Map]. Retrieved from http://www.sf-planning.org/index
.aspx?page=1654
Harvard T.H. Chan School of Public Health. (2015). The Nutrition Source [Data file]. Retrieved
from http://www.hsph.harvard.edu/nutritionsource/healthy-eating-plate/
Hudson, Nancy R. (2013). Management Practice in Dietetics (3rd ed.). United States of
America: Cognella, Inc.
San Francisco.com. (2015). San Francisco Neighborhoods [Date file]. Retrieved from
http://www.sanfrancisco.com/neighborhoods/#uppermarket
San Francisco Unified School District. (2015). High Schools [Date file]. Retrieved from
http://www.sfusd.edu/en/schools/high-schools.html
United States Department of Agriculture. (2015). Choose My Plate [Date file]. Retrieved from
http://www.choosemyplate.gov/about
Vista Room Kitchen. (2015). San Francisco State University
Walsh, C. (2015). Business Plan Budget & Justification. [Word Document]. Retrieved from
https://ilearn.sfsu.edu/ay1516/course/view.php?id=4248.
Walsh, C. (2015). Chapter 17: Sustainability. [PowerPoint slides]. Retrieved from
https://ilearn.sfsu.edu/ay1516/course/view.php?id=4248
Walsh, C. (2015). In-Class Budget Worksheet. [Word Document]. Retrieved from
https://ilearn.sfsu.edu/ay1516/course/view.php?id=4248.

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