Biz Plan of Open a Restaurant

Padang Traditional Foods

       Padang Traditional Food will offer a variety of traditional Padang menus and will operate outside of the locations rented in the center of Banten city. Padang Traditional Cuisine is ready to start serving Banten by introducing Padang cuisine to the area. The building will be located in a historic old building that has brick walls and high vaulted antique ceilings. The Banten region has grown rapidly over the years and has a population of 124,000, according to my friend in Banten big enough to support other restaurants.

1.1 Business Opportunities

     The restaurant industry is very competitive and it is often difficult for a new restaurant concept to survive. However, the concept of "Traditional Padang Food" is not a new concept, but new in Banten. This gives Padang Traditional Food a unique opportunity to bring new concepts to new markets, but base them on existing and successful Padang Traditional Foods.

Especially for Banten, it has been proven that with proper market research, operations and management, new restaurants can take part in the existing market. Banten currently has six restaurants in the city center (two of which are new and developing), most of which offer traditional Padang dishes. Padang Traditional Food will be the only restaurant that offers Padang food.

 

1.2 Description of Restaurants and Restaurants

     Padang Traditional Food will be the first in the Banten area. Unique traditional themes bring hope for a cheerful, comfortable and friendly atmosphere. Padang Traditional Food floor and furniture plans have been designed to ensure that these expectations are met.

Padang Traditional Food will be located in the city capital, which is currently being restored in its original brick shop. The interior will be unique, offering high decorative tin ceilings. The entry area will have living trees with branches and leaves hanging above the entrance area. Dark wood booths, brass fittings, and handmade walnut bars will provide a warm, elegant and historic traditional atmosphere. Padang Traditional Food will offer an upscale atmosphere but at affordable prices. Menu items will range from IDR 25,000 to IDR 30,000. Padang Traditional Food must set new standards for dining and entertainment in Banten.

1.3 Current Business Position

      Padang Traditional Food is still in the start-up phase. Its principal stockholders in the company are Mr. Avicena and brother, who will be the general manager. Additional managers include Ms. Erin Johnson, who will be the head chef and kitchen manager, and Ms. Sarah Sweeney, who will be the assistant manager.

1.4 Financial Potential

     Padang Traditional Food will be profitable in its first year of operation. This is unusual for a new restaurant concept; however, given the anticipated loan packaging Padang Traditional Food expects to assemble and the affordable lease on the downtown location, this expectation is reasonable. 

Below is a breakdown of revenues and expenses for Padang Traditional Food during its first three years of operation:

Profit & Loss Statement For years ending December - 2003, 2004, 2005 Year 1 Year 2 Year 3 Income 1.004.000 1.104.401 1.214.840 Less COGS:    Material 301.200 331.320 364.452    Labor 251.000 276.100 303.710       Total COGS 552.200 607.421 668.162 Gross profit 451.800 496.980 546.678 Operating expenses:    Advertising 60.000 60.000 60.000    Cable TV 600 600 600    Cleaning Service 6.000 6.000 6.000    Insurance 18.000 18.000 18.000    Liquor License Fees 4.300 4.300 4.300    Professional Fees 9.500 9.500 9.500    Office Supplies 1.800 1.800 1.800    Lease 90.000 90.000 90.000    Telephone 3.000 3.000 3.000    Utilities 18.000 18.000 18.000    Repairs and Maintenance 6.000 6.000 6.000    Other Payroll 37.500 37.500 37.500    Amortization 22.580 22.580 22.580    Depreciation 17.029 17.029 17.029      Total operating expenses 294.309 294.309 294.309 Operating income 157.491 202.671 252.369    Interest expense 23.148 20.009 16.925 Net income before taxes 134.343 182.662 235.444    Estimated taxes 33.586 45.665 58.861 Net income 100.757 136.996 176.583

1.5 The Request

Based on current financial projections, Padang Traditional Food requires $521,000. This consists of kitchen equipment, building renovation, signage, liquor license, office equipment, and furniture.

To meet this required amount, a 10-year loan of $150,000 with a 4.0% interest rate is being requested from the City of Banten Downtown Revitalization Program. The requested amount is 29% of the total required projected funding. An additional SBA loan of $154,000 over 7 years at 8.5% interest is pending. Mr. Kelly Kiernan, the majority owner, has agreed to contribute $150,000 in cash and personally guarantee a 5-year loan with State Bank for $50,000 at 10.0%. For the City of Banten loan and the SBA loan, Padang Traditional Food will offer all of its securable assets as collateral.

Investment sources:

City of Banten: $150,000

SBA: $154,000

State Bank: $50,000

Mr. Kiernan: $150,000

Total investment: $504,000*

*The remaining funds needed of $17,000 will be charged to Padang Traditional Food line of credit.

based on the explanation you just saw or read, it can be concluded that all of this is a process of how you can achieve success in the future, such as what you will do after completing school, whether it's going to a higher level or going straight into the world of work, so all things must be prepared:
1. start small
2. start from yourself
3. start now
Dare to start and have to take risks that are the nature of successful people

Keep fighting !!