1.0 Executive Summary
The purpose of this business plan is to raise $115,000 for the development of a vegan restaurant while showcasing the expected financials and operations over the next three years. Vegan Restaurant, Inc. (“the Company”) is a New York based corporation that will develop a restaurant that will serve a broad range of cuisine that does not contain any animal products. The Company was founded by John Doe. Revenue generating operations are expected to commence in the third quarter of this year.
It should be immediately noted that the demand for vegan cuisine has increased substantially over the past ten years. More people have become concerned about their health and well as the impact that their food choices have on the environment. Nearly 9.8 million Americans consider themselves to be strict vegans. The Company, through its unique menu, will provide its customers with outstanding vegan fare during lunch and dinner hours.
As stated above, the Vegan Restaurant intends on serving a number of classic vegan dishes that contain no meat, dairy, or animal products. A major focus of the Company’s menu will be fusion based cuisines that draw inspiration from international cultures. The business will also have a number of American styled food options that use the business’ proprietary vegan recipes.
Additionally, the business will offer a wide variety of standard and alcoholic beverages, which Management expects will generate a significant portion of the Company’s revenues and profits.
The Company will offer its vegan fare on a sit-down and take-away basis.
The third section of the business plan will further describe the services offered by the Vegan Restaurant.
1.2 Financing
Mr. Doe is seeking to raise $115,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 7year loan with a 5% fixed interest rate. The financing will be used for the following:
- Development of the Company’s Vegan Restaurant location.
- Financing for the first six months of operation.
- Capital to purchase kitchen equipment.
- Working capital
The Founder will contribute $20,000 to the venture.
1.3 Mission Statement
Mr. Doe’s mission is to provide customers with an outstanding line of vegan cuisine while concurrently remaining within the letter of the law regarding the sale of food and alcohol in the State of New York.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the food service industry (in numerous culinary and managerial capacities). Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years:
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals that have an interest in vegan cuisine within the target market of New York. Mr. Doe may also seek to increase the number of locations owned after the fifth year of operations.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Vegan Restaurant, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Mr. Doe requires $115,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Vegan Restaurant, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Vegan Restaurant. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Restaurant
Below is a description of the products offered by the Vegan Restaurant.
3.1 Entrees
The Company will offer a number of authentic vegan cuisine entrees with a focus on pastas, wraps, and other cuisine that contains no meat, dairy, or animal products. The Restaurant will include fusions from other types of cuisine within its proprietary recipes.
Below is an overview of the restaurant:
- Location: New York City
- Design: Modern, Farm-to-Table Atmosphere
- Size: 1,500 square feet
- Employees: 8 to 9 full time
- Seating: 35-45.
- Types of transactions: 80% dine in, 10% take away, 10% catering.
Generally, entrees will have a pricing point of $13 to $20. Small lunch options (including wraps, sandwiches, salads, and related items) will be priced from $8 to $15. Catering operations are expected to generate $250 per order.
3.2 Beverages
The Vegan Restaurant also offers its patrons an expansive line of beverages including coffees, tees, beer, wine, and spirits. The Company will ensure the proper procedures for serving alcohol at the Vegan Restaurant establishment (including verifying IDs of all patrons regardless of the perceived age).
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the restaurant industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic climate is uncertain. The pandemic stemming from COVID-19 has created a substantial amount of turmoil within the capital markets. It is expected that a prolonged economic recession will occur given that numerous businesses are being forced to remain closed for an indefinite period of time (while concurrently having their respective employees remain at home). However, the central banks around the world have taken aggressive steps in order to ensure the free flow of capital into financial institutions. This is expected to greatly blunt the economic issues that will arise from this public health matter.
However, three vaccines have entered the market, and many health experts anticipate that the pandemic will have drawn to a close by the end of this year. Given that the Company anticipates that it will launch its operations in the third to fourth quarter, the pandemic will not impact the way that the restaurant conducts operations. The demand among consumers to return to normal life is immense.
4.2 Industry Analysis
There over 600,000 restaurants and eateries in the United States. Gross annual receipts total more than $720 billion dollars per year. It is one of the country’s largest grossing industries. The industry also employs over ten million people, and generates an average annual payroll of more than $120 billion dollars per year. Among the 600,000 different restaurants within the United States there are approximately 20,000 businesses that specifically specialize in the sale of vegan cuisine.
As the country has become significantly wealthier of the last ten years, more and more Americans are eating out. Time has also become a concern for the average American family. Studies have shown that more than 40% of American families eat out at least one night per week.
4.3 Customer Profile
The Vegan Restaurant’s average customer will be a middle to upper middle class man or woman living in the Company’s targeted market. The following profile will be used during the course of marketing operations. Common traits among clients will include:
- Annual household income exceeding $50,000
- Lives or works no more than 10 miles from the Company’s location.
- Will spend $15 to $25 per visit to the Vegan Restaurant location
4.4 Competition
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with a better vegan restaurant experience than other competitors in your area.
5.0 Marketing Plan
Mr. Doe intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its location. Below is an overview of the marketing strategies and objectives that Mr. Doe will use once he launches his Vegan Restaurant.
5.1 Marketing Objectives
- Develop an expansive online presence that uses all forms of social media in order to create awareness of the Vegan Restaurant (including the usage of social media influencers that live in the greater New York metropolitan area).
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
- Hire a public relations firm to provide reviews and articles about the Company’s grand opening.
- Place a substantial number of advertisements among food journals, food review magazines, and related publications throughout the Company’s targeted market.
5.2 Sales Overview
5.3 Marketing Strategies
Management intends on using a broad range of high impact marketing strategies in order to create awareness for the Vegan Restaurant while developing a substantial base of loyal patrons. A major focus of the Company’s marketing strategies will be online based.
Prior to the launch of operations, the Company will hire a qualified web development firm to produce a state-of-the-art website that will feature ecommerce functionality (for take-away options). This website will be mobile friendly and search engine optimized. On all online advertisements used by the business, the Company will always have its web address showcased.
Beyond the Company’s proprietary website, the business will maintain pages on all major social media platforms including Facebook, Instagram (for images), Twitter, and YouTube. The business will frequently announce specialized cuisine items and discounts through its established social media channels. Management will also have a number of professionally produced videos that showcase the Vegan Restaurant location as well as its cuisine. These videos will be shown on the Company’s website as well as uploaded to all social media platforms. The business will maintain profiles on popular review sites including Yelp.com, TripAdvisor.com, and through Google Reviews.
Once the location completes its grand opening, Management intends on hiring a social media influencer in order to provide a video based review of the restaurant. The Company will target a well known influencer that lives within the greater New York City area (and heavily focuses their social media platform on healthy living, vegan cuisine, and related lifestyle topics). This method of marketing has become extremely popular over the past five years, and the return-on-investment can be outstanding.
The Company will also distribute flyers/menus via mail to residents while concurrently taking out advertisements in popular regionally distributed magazines/newspapers. As it relates to public relations, Management anticipates that a number of food reviewers will come to the location and provide reviews during the first six to twelve months of operation. This will further boost the business’ brand name during its first year in business.
Finally, the Company will support a number of local/regional organizations that focus on community improvement and animal welfare. Many people that are vegan have a deep appreciation for caring for animals (especially as many vegans maintain this dietary method given their ethical considerations). The business will frequently make donations to these entities, and the business will engage in co-branding opportunities with regional animal shelters and rehabilitation preserves.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.1 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- The Company will have an annual revenue growth rate of 8% per year.
- The Owner will acquire $115,000 of debt funds to develop the business.
- The loan will have a 7 year term with a 5% interest rate.
7.2 Sensitivity Analysis
Vegan Restaurant’s fare is in demand individuals due to the simple fact that the pricing point for these products are relatively low and people that are vegan will specifically seek out the restaurant. The business will be able to control a number of its input costs, which will further ensure the economic stability of the business. The high gross margins from sales will ensure that the business is able to remain profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
Strengths
- Efficient back office support for managing the day to day operations of the Vegan Restaurant.
- High gross margins on all food/beverage sales made through the Company’s high visibility location.
- Moderate operating costs as a function of revenues.
- The ability to aggressively market the business via numerous social media channels.
- Motivated and experienced owner-operator, John Doe.
Weaknesses
- Adverse market conditions can impact revenue (limited risk for the reasons discussed earlier in this document).
- Several competitors operating in targeted New York metropolitan area markets.
- Moderate barriers to entry.
Opportunities
- Development of multiple locations throughout greater New York metropolitan area.
- Expansion of catering operations.
- Development of a franchise system.
Threats
- Ongoing competitive issues.
- Liabilities as a result of improper food handling (very limited risk as all staff will go through intensive food safety training).
Please note that the expanded P&L, expanded cash flow analysis, and amortization tables have been omitted for brevity. They can be seen on the Samples Page.