The purpose of this business plan is to justify the startup of a high-end Korean and Japanese restaurant in the Carrolton, TX area. Sushi Nara will have one owner and the legal structure will consist of a sole proprietor. Sushi Nara will be located in 2625 Old Denton Rd. #200 Carrolton, TX 75007.
Sushi Nara will provide a high class Korean and Japanese cuisine. Based on projected income and financial analysis included in this business plan, Sushi Nara will be successful. There is a high demand for healthy food, especially Asian cuisine like Korean and Japanese cuisine in the Dallas area due to the lack of similar business available. We look forward to the future at Sushi Nara. We expect in five years that demand for our specialized service will grow in other areas to justify opening several restaurant owned franchises in other areas.
Sushi Nara’s specialized service, distinctive logo, slogan “Top quality & Top Service”, reputation for customer service will provide a tough to beat competitive edge. The owners have earned Bachelor degrees of business, and have extensive experience in business management and operations from past years of work experience.
Management and Organization Plan
Sushi Nara, Korean and Japanese fusion restaurant, has a mission that to provide outstanding Korean and Japanese cuisine to Korean community in Dallas, Texas. Sushi Nara’s specialized service, distinctive logo, and slogan “Top Quality and Top service”, reputation for customer service will provide a tough to beat competitive edge. Sushi Nara is committed to becoming Dallas’s premier Korean and Japanese restaurant. Dedication to building relationships is based on our honesty, service, and accountability. Sushi Nara is also committed to exceptional customer satisfaction.
Location
Sushi Nara is located in a Korean town in Carrolton, TX. The address is 2625 Old Denton Rd. #200 Carrolton, TX 75007. The 3,400 square foot building was built specifically for the commercial property. The entire building is serviced by a Korean retailer and whole seller. Sushi Nara maintains 11am to 9pm, on Tuesday to Sunday.
Company mission
At its core, Sushi Nara provides for the Korean traditional cuisines, Japanese cuisines, traditional Korean Soju, and Japanese Sake. Restaurant provides to customer with an outstanding quality sushi, sashimi, and Korean cuisine in one place. To provide high quality food, we do not use chemical ingredients and frozen products.
Company Vision
Eating healthy! Korean and Japanese cuisine at one place! Today there are many concerns regarding to our health and many experts advising us how we should eat. We must pay close attention to our diets, but eating well should not only benefit your body, but your mind as well. We, Sushi Nara, believe that of all the ways that people can eat, Korean and Japanese Cuisine are the healthiest and safest diet. We are going to start Sushi Nara so that people might learn how to eat a healthy diet. As native Koreans, we have the benefit of understanding traditional Korean cuisine and quickly saw that there were many Korean dishes we could introduce to westerners.
Product
The service that Sushi Nara is going to offer is one in which it makes your dining better and healthier. We want to treat our guests with respect so that it makes their dining more enjoyable. Sushi Nara will be providing services for dining such as: Korean cuisine, Japanese cuisine, and traditional alcohols. A typical Korean meal usually consists of one main dish, generally meat or fish, and a wide range of tiny side dishes as appetizers or Ban Chan. Kim Chi, a spicy fermented cabbage dish highly seasoned with garlic and red pepper, is served at virtually all meals and is probably the best known Korean Ban Chan. A typical Korean meal usually consists of sushi, sashimi and teriyaki.
Two very popular meat dishes are Gal-Bi, and Bul-Goki which are marinated in a delectable sauce and grilled over an open flame.
Soups are also another Korean staple at mealtimes. A popular soup is Man Du Guk, a tasty dumpling stew in a seasoned beef broth.
Another favorite is Bi-Bim-Bab, which usually makes for a hearty meal on its own, with just a few appetizers. Bi-Bim-Bab starts with rice in a big bowl, and is topped with assorted vegetables and mixed with a spicy bean paste. This dish can be served with shreds of beef or without.
Sushi is a Japanese dish consisting of cooked vinegary rice which is commonly topped with other ingredients, such as fish or other seafood. Sliced raw fish by itself is called sashimi, as distinct from sushi
Organizational Structure and Human Resources
Sushi Nara’s legal structure is sole proprietorship. Sushi Nara has 4 full time employees and 3 part time employees. Sushi Nara categorizes employees into four types of labor, Director, Receptionist/Casher, Kitchen employee, and Customer Service. These categories are determined by position education and experience requirements.
Director has all responsibility of restaurant not only financial problems, customer service, advertising but also recipe and food quality, but usually executive director is going to be to greet customers and to check customer’s bill at the front desk.
Receptionist/Casher has responsibilities about dining appointment, check bill, and customer greeting.
Kitchen employee has responsibilities about cooking, food supply purchasing, food quality and everything inside the kitchen.
Customer service has responsibilities about customer satisfaction during food serving.
Director/Owner 1Organization Structure
Kitchen employee 2
(Chef 1)
(Assistant chef 1)
Receptionist/Casher 1
Customer service 3
Human Resource Requirements
Director/Owner
The person who has knowledge of general business.
Receptionist/Casher
The person who has an accounting Knowledge
The person who with no contagious diseases
Kitchen Employee
– The person who has a license of Korean and Japanese cuisine
– The person who has chef experienced at least three years
– The person who has and honest and diligent attitude
– The person who with no contagious diseases
Customer Service
The person who with no contagious diseases
The person who has a customer service mind
The person who has honest and diligent attitude
Marketing Plan
Industry Outlook
According to National Restaurant Association’s 2010 Restaurant Industry Forecast, economic downturn easing, the restaurant industry is expected to show gradual improvement in 2010. Sustainability, health and nutrition will be the top trends on restaurant menus this year. Seventy percent of consumers say they are more likely to visit restaurants that offer fresh produced food, and nearly three out of four say they are trying to eat healthier in restaurants now than they did two years ago.
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Target Market
A store’s success often depends on how carefully its target market has been identified. Our main targets are Korean customers who live in Dallas and nearby states. Dallas is one of the most important cities to Korean society in US. According to The Korea Embassy in Houston, officially 148,000 Korean people live in Texas. There are a lot of Korean wholesale stores in Carrolton, TX and on Harry Hines Blvd in Dallas. Usually, Dallas covers business supply to Korean retail store, located in Oklahoma, Mississippi, Louisiana, and Arkansas.
Customer Profile
Primary customers will be:
A Korean and Japanese family who lives in Dallas and age range are twenty to seventy.
Korean goods retailer who lives in out of Texas such as Ok, AR, and LA.
Secondary customers will be:
American customer who likes Korean and Japanese cuisine.
Competitive Environment
According to Yellow Pages, there are only 13 Korean restaurants and 88 Japanese restaurants In Dallas area. But, there are a few restaurants that serve Korean and Japanese dishes at the same time. So, we focus on Korean and Japanese restaurant at the same time, for as I do this, our restaurant can meet the customer’s needs, they want to eat Korean dishes and Japanese dishes in one place. This will allow for the creation of a great deal of customer awareness and brand loyalty, erecting significant barriers to entry for potential competitors. Here are our competitors.
Korea House
Gui Korean Japanese Bistro & Bar
Omi Korean Grill & Bar
Todamgol
Direct Competitor
Restaurant Name
Menu
Distance/Address
Price range
Korea House
http://www.koreahousedallas.com/
Korean and Japanese cuisine
Within 8 miles/
2598 Royal Ln. Dallas, TX 75229
Korean dishes $12- $20
Japanese dishes $20- $90
Gui Korean Japanese Bistro & Bar
http://www.guirestaurant.com/
Korean and Japanese cuisine
Within 15 miles/
2719 McKinney Ave
Dallas, TX 75204
$10 ~ $30
Indirect Competitor
Restaurant Name
Menu
Distance
Price range
Omi Korean Grill & Bar http://www.omikoreangrill.com/
Korean cuisine
Within 0.1 miles/ 2625 Old Denton Rd
Carrollton, TX 75011
$8 ~ $33
Todamgol
Korean cuisine
Within 0.1 miles/
2625 Old Denton Rd., Ste. 310 Carrollton, TX 75007
$8 ~ $20
SWOT Analysis
Price strategy
Sushi Nara will be offered at the following prices. Our Korean cuisine price is a little bit superior then our competitor’s price, but our Japanese cuisine price is inferior then our competitor’s price, for we use good ingredients for customer’s health.
Korean Traditional Meal starts ten dollar to twenty dollar.
Sushi starts fifteen dollar to twenty dollar.
Sashimi starts twenty dollar to one hundred dollar.
Korean traditional alcohols start nine dollar to fifteen dollar.
We offer money back guarantee If customer who does not satisfied food quality. We will do re-dish or refund your money.
We offer ten dollar gift card when you visit 10 times.
Advertising and Promotion Strategy
For the first year, Sushi Nara will use word of mouth advertising by meeting with friends and business associates on a regular basis. Promotion of Sushi Nara will also do by attending meetings and networking with the Korean Society of Dallas. Also we will advertise on three different types of Korean daily news papers, seven different types of Korean weekly news papers, and Korean social TV network. We will create our own commercial through Korean social broadcasting to attract the television viewers. We are also trying to expose our service placing flyers in local grocery stores and placing ads in the local newspaper to attract the readers. Once business gets going we will also be providing discount coupon and special offers when the customer chooses Sushi Nara.
Adverting on Korean news paper and Korean social TV network
Flyers
Discount coupon
Special offers (ex. birthday special)
Market Penetration Strategy
At Sushi Nara our main target market is reaching out to middle to upper income customers, Korean community, and who interested in healthy food about Korean and Japanese cuisine. Our service is affordable and convenient to our customer. Sushi Nara wants to make sure that we keep our pricing in the mid to upper range to attract customers. Keeping our price reasonable will create a higher profit margin for the service that we are providing along with attracting more potential customers.
As the market is continuously changing, we will be adding a new menu to adapt market changing.
We treat our customer like a family.
30% of our profit will be invested to improve our restaurant’s environment.
We will use fresh product
We will focus on quality
We will use Original Korean/Japanese recipe (No modify)
Facility Plan
Facility Description
The restaurant at 2625 Old Denton Rd. #200 Carrolton, TX 75007 is a 2400 Square foot space. It was formerly a restaurant and needs on minor structural modifications. The licenses and codes’ issues are all in order. New equipment and dining room furnishings will be purchased and installed by the general contractor.
< Basic Table Setting>
conveyor-belt sushi * 1 (10 people )
Table and four chairs * 8 (32 people)
Table and eight chairs * 2 (16 people )
Total 58 seats available
< Basic Equipment>
Used Commercial Stainless Steel 30×27 Equipment Utility Stand
Kitchen appliances
Serving dishes
Commercial Cooking Equip 36″ Six Eye Range V36
OVEN
Used Refrigerator Cooler
Deep Fryers
Japanese Cookware
Japanese Kitchen Utensils
Rice Cookers
Sushi Display Case
Teppanyaki Griddles
Under counter Coolers x 1
Computer and Printer
Used Ice Head Maker w/ Bin and Remote IRC830
Used McCann Coke Product 6 Head Soda Beverage Dispenser w/ Ice Bin
Wine Buckets & Stands x 10
Financial Plan
Objectives
We are expecting that sales of over $400,000 in first year.
We are expecting that net profit over $100,000 in three year.
Start-up Summary
Sushi Nara has found the store location. Sushi Nara’s monthly rent cost is around $4,000 per month. We are expecting to set up the shop in time to begin turning back a profit by the end of month sixth and be profitable in the one year. The place which we selected is already surrounded by Korean shopping center, so there is a lot of customer traffic. So we plan to come up with a total of $90,000 in capital, plus a $100,000 guaranteed loan, to start up the restaurant.
.
Table: Start-up financial plan
Sushi Nara Start-up financial plan
Requirements
Start-up Expenses
Legal Form
$3,000
Cleaning and Stationery
$2,000
Other
$1,500
Total Start-up Expenses
$6,500
Start-up Assets Needed
Cash Balance on Starting Date
$88,500
Other Current Assets
$100,000
Total Current Assets
$188,500
Long-term Assets
$0
Total Assets
$188,500
Total Requirements
$194,500
Funding
Investment
Investor 1
$90,000
Total Investment
$90,000
Current Liabilities
Accounts Payable
$5,000
Current Liabilities
$5,000
Long-term Liabilities
$100,000
Total Liabilities
$105,000
Loss at Start-up
($6,500)
Total Capital
$83,500
Total Capital and Liabilities
$188,500
Sales Strategy
Table: Sales Forecast
Unit Sales
2011
2012
2013
Meals
28,080
33,000
38,000
Drinks
13,000
16,000
19,500
Other
310
450
700
Total Unit Sales
41,390
49,450
58,200
Unit Prices
2011
2012
2013
Meals
$16.00
$16.00
$16.00
Drinks
$2.00
$2.00
$2.00
Other
$10.00
$10.00
$10.00
Sales
2011
2012
2013
Meals
$449,280
$528,000
$608,000
Drinks
$26,000
$32,000
$39,000
Other
$3,100
$4,500
$7,000
Total Sales
$478,380
$564,500
$654,000
Direct Unit Costs
2011
2012
2013
Meals
$3.00
$3.00
$3.00
Drinks
$0.60
$0.60
$0.60
Other
$1.50
$1.50
$1.50
Direct Cost of Sales
2011
2012
2013
Meals
$84,240
$99,000
$114,000
Drinks
$7,800
$9,600
$11,700
Other
$465
$675
$1,050
Subtotal Direct Cost of Sales
$92,505
$109,275
$126.750
Human Resource Financial Plan
Our restaurant will be consisting of seven peoples. As the Human resource financial plan table shows that each salary are considering inflation.
Table: Human Resource Financial Pan
Human Resource Financial Plan
2011
2012
2013
Director
60,000
61,000
62,000
Receptionist
$42,000
$43,000
$44,000
Chef
$54,000
$55,000
$56,000
Chef assist
$30,000
$31,000
$32,000
Hall server
$72,000
$75,000
$78,000
Other
$14,000
$15,000
$16,000
Total People
7
7
7
Total Payroll
$272,000
$280,000
$288,000
Break-even Analysis
Sushi Nara’s break-even analysis is based on the average of the first financial year sales revenue for total product sales by meal and drink served, total cost of sales, and all operating expenses. Our total product sales are presented as per-unit revenue, per-unit cost, and fixed costs. We estimate that this break-even analysis numbers are not really the same as fixed cost, but these break-even analysis assumptions make for a better estimate of real risk.
Table: Break-even Analysis
Break-even Analysis (Monthly)
Sushi Nara
Sushi Nara Units Break-even Point
16,000
Sushi Nara Revenue Break-even Point
$16,000
Sushi Nara Break-even point assumptions (Average)
Unit Revenue
$10.44
Unit Variable Cost
$8.34
Estimated Monthly Fixed Cost
$29,459
Projected Profit and Loss
As the profit and loss table shows, we expect to become barely profitable in the second year of business, and to make an acceptable profit in the third year.
Table: Pro Forma Profit and Loss
Pro Forma Profit and Loss
2011
2012
2013
Sales
$478,380
$564,500
$654,000
Direct Cost of Sales
$92,505
$109,275
$126.750
Production Payroll
$0
$0
$0
Other
$0
$0
$0
Total Cost of Sales
$92,505
$109,275
$126.750
Gross Margin
$385,875
$455,225
$527,000
Gross Margin %
80.66%
80.64%
80.58%
Expenses
Payroll
$272,000
$280,000
$288,000
Sales and Marketing and Other Expenses
$15,000
$23,000
$33,000
Depreciation
$1,000
$1,050
$1,103
Utilities
$2,200
$2,260
$2,323
Payroll Taxes
$41,300
$52,550
$60,500
Other
$0
$0
$0
Total Operating Expenses
$331,500
$358,860
$384,926
Profit Before Interest and Taxes
54,357
$96,365
$142,074
Interest Expense
$10,000
$9,500
$8,250
Taxes Incurred
$0
$6,890
$18,363
Net Profit
$44,357
$79,975
$115,461
Net Profit/Sales
9.27%
14.16%
17.65%
Projected Cash Flow
The cash flow projection shows for three years
Table: Pro Forma Cash Flow
Pro Forma Cash Flow
Cash Received
2011
2012
2013
Cash from Operations:
Cash Sales
$478,380
$564,500
$654,000
Cash from Receivables
$0
$0
$0
Subtotal Cash from Operations
$478,380
$564,500
$654,000
Additional Cash Received
Non Operating (Other) Income
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
New Investment Received
$0
$0
$0
Subtotal Cash Received
$478,380
$564,500
$654,000
Expenditures
Expenditures from Operations:
Cash Spending
$17,400
$19,800
$27,000
Payment of Accounts Payable
$360,000
$410,000
$480,000
Subtotal Spent on Operations
$377,400
$429,800
$507,000
Additional Cash Spent
Non Operating (Other) Expense
$3,500
$4,700
$6,800
Principal Repayment of Current Borrowing
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$500
$10,000
$15,000
Purchase Other Current Assets
$0
$0
$0
Subtotal Cash Spent
$381,400
$444,500
$528,000
Net Cash Flow
$96,980
$120,000
$126,000
Cash Balance
$185,480
$305,480
$431,480
Projected Balance Sheet
The table shows projected balance sheet for three years.
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current Assets
2011
2012
2013
Cash
$185,480
$305,480
$431,480
Other Current Assets
$100,000
$100,000
$100,000
Total Current Assets
$285,480
$405,480
$531,480
Long-term Assets
Long-term Assets
$0
$0
$0
Accumulated Depreciation
$1,000
$1,050
$1,103
Total Long-term Assets
($1,000)
($1,050)
($1,103)
Total Assets
$284,480
$404,430
$530,377
Liabilities and Capital
2011
2012
2013
Accounts Payable
$35,000
$41,000
$53,000
Current Borrowing
$0
$0
$0
Other Current Liabilities
$0
$0
$0
Subtotal Current Liabilities
$35,000
$41,000
$53,000
Long-term Liabilities
100,000
$90,000
$75,000
Total Liabilities
$135,000
$131,000
$128,000
Paid-in Capital
$90,000
$90,000
$90,000
Retained Earnings
($15,123)
($45,000)
($50,000)
Earnings
$44,357
$79,975
$115,461
Total Capital
$119,234
$124,975
$155,461
Total Liabilities and Capital
$284,480
$404,430
$530,377
Net Worth
$119,234
$124,975
$155,461
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