business plan | Marlee’s cuisine and bakery business planIvori Johnson
03/03/2014 |

business plan | Marlee’s cuisine and bakery business planIvori Johnson
03/03/2014 |

I. Executive Summary
Introduction
Marlee’s Cuisine and Bakery (MCB) is a family owned upscale restaurant and bakery located in the heart of Short Pump Towne Center in Glen Allen, Virginia. MCB is offers a menu with a large variety of meals to satisfy every customer’s cravings. The company plans to build a strong market position within the Short Pump area by offering products at a competitive price to meet the demand of middle-to higher income residents. Short Pump Town Center is a two-level retail center composed of many upscale stores, such as, Abercrombie and Fitch, Aldo, Apple, Nordstrom’s, and Swarovski. Short Pump Town Center is well known for the exquisite dining options available to local residents and tourists. These restaurants include Cheesecake Factory, Bakers Crust, Maggiano’s Little Italy, and Firebirds. The Short Pump area is in need of a warm and friendly place with exceptional food. A place where customers feel confident that the food they receive will taste amazing each and every time. Marlee’s Cuisine and Bakery will be a two story 300 seat fine dining restaurant and bakery with a 125 seat lounge. The bakery will feature a lounge with comfy couches and antiques love seats facing an extending wall to wall fireplace. The restaurant will feature a cozy dining room with a soft lit bar. The restaurant bar will be located on the bottom floor across from the bakery and lounge. The restaurant will be located on the second floor overseeing an elegant chandelier and soft lighting. Marlee’s Cuisine and Bakery will be the perfect place to stop in for a bit to eat, for a drink, or for a business meeting. With our creative innovation to ensure the customer gets what they want out of their experience at MCB we will provide a diverse menu. The menu will offer amazing food selections at an affordable price. There is stiff competition within the area, but our world class customer service, exquisite dining experience, relaxing environment, and delicious food will always have the customers coming back. Our Menu will be inspired by favorite dishes globally around the world. Our dishes will appeal to a wide range of diverse clientele. You can get Swedish Meatballs or you can go for a bit more international with curry chicken and basmati rice. We will feature a special International dish at $9.99 every day plus the famous American dishes, such as hamburgers and fries or fish and chips. The menu will be inspired by many world events and may change every one to three months, but we will keep the restaurant favorites. Our prices will be extremely competitive with the upscale restaurants in the area. The strategy of Marlee’s Cuisine and Bakery is to give a perception of higher value than its competitors, through our food, exceptional customer service, and daily entertainment. We will hire the best people in the area to full all of our positions. We will train them to provide relaxed, friendly, and welcoming customer service experience to all customers. We will encourage our team to build connects with all customers to create a homely environment. Our management team will be comprised of individuals whose background consists of five or more years’ experience in hospitality, food and beverage management, training, marketing, management, finance, and customer service. The Company
Marlee’s Cuisine and Bakery is incorporated in the state of Virginia. It is equally owned and managed by two partners. Ivori Johnson has extensive knowledge in operations, sales, management and training. She is a Senior Operations Specialist at Capital One LLC overseeing the financial reporting of the Commercial Bank. Harold Johnson has brings experience in the area of marketing and sales. He recently interned at ESPN as a Marketing Associate.
The company intends to hire six full-time and four part-time servers, three full-time and two part-time hosts, and two full-time bartenders to handle front of the house customer service and day to day operations. We also want to hire four full-time cooks, two full-time dishwashers, three full time prep cooks, and three bussers to handle back of the house operations.
We will be open seven days a week to serve breakfast lunch and dinner. Our hours of operations will be from 8:00am – 12:00am daily. Breakfast will be served from 8:00 am-12:00pm. Lunch and Dinner menu items will be served from 11:00am – 12:00 am.
Products and Services
Marlee’s Cuisine and Bakery offer a broad range of bakery and fine cuisine. We use only the freshest and finest ingredients to complete a large variety of bakery items made and sold fresh daily! The bakery provides freshly baked breads, cookies, pastries, tarts, tortes, and rolls.
The Restaurant will serve a full menu of breakfast, lunch and dinner items. The goal of our restaurant is to give our customers a variety of options. Let me introduce our diverse globally influenced menu. We will serve items from salmon to curry.
Market
The restaurant industry in the U.S plays an important role as a support of the economy, a contributor to worthy causes, a partner in conserving the environment, and a supporter of guest’s well-being. The restaurant industry generates more than $665 billion in sales each year. It also creates jobs and careers for every one in ten Americans in the United States.
We will determine our financial success by offering high-quality service and excellent food with an interesting twist. By creating financial projections we were able to determine the start-up expenditure of $650,000.00, where we can generate $1,500,000.00 in sales by the end of year two. We are seeking a small business loan for $480,000.00 with a 6% interest rate. We will be investing $80,000.00 of our own capital and raising an additional $90,000.00 from investors.

II. Mission Statement
Marlee’s Cuisine and Bakery is a spunky, imaginative full service restaurant that aims to provide high quality cuisine that can also satisfy anyone’s sweet tooth with our bakery. The mission is to not only have amazing food, but to also provide an everlasting experience. We will provide world class service to each customer to ensure the dining experience is miraculous. We aspire to be the restaurant of choice for Virginia residents. Marlee’s Cuisine and Bakery will offer high quality dining at a competitive price to meet the demand of the middle-to-high-income market residents. We view ourselves as partners with our customers, our employees, our community and our environment. We want our employees to feel like they are a beneficial part of the success of Marlee’s Cuisine and Bakery.
Objectives
Marlee’s Cuisine & Restaurant’s objectives for the first three years of operation includes: * Keeping food cost under 42% revenue. * Keeping employee labor cost between 29-32% of revenue. * Average sales between $1-1.5 million per year. * Promote restaurant in Virginia. * Expand our marketing and advertising in Virginia. * Achieve 13% return on investment to investors for the first three years and 17% the next four years.
Keys to Success * Providing world class customer service and the highest quality product * Competitive pricing. * World class staff that exemplifies the values of the company. * Providing growth opportunities for career advancement. * We will have special entertainment nightly such as, local artist openings, poetry readings, wine tastings, holiday celebrations, college night, and ethnic food nights. This will attract varied clientele. * Provide quality overall, including great food, exceptional service, and an amazing relaxing atmosphere. * Create a creative and eye popping menu with a diverse menu that will appeal to a wide and varied clientele.
Due to the stiff competition in the area, we must look for ways to differentiate our establishment in order to achieve and maintain a competitive advantage. We believe the concept of our restaurant will set us apart from other restaurants in the area. We are not only a restaurant and bakery, but a place where customers can come and relax to have fun with our nightly events.

III. Industry Overview
The restaurant industry in the U.S has experienced rapid growth in the almost 20 years. This was caused by the economy strengthening, the increase in wages and employment, and U.S residents want more leisure time. In the United States there are now more families with dual income. The competition in the area of Short Pump is strong. These restaurants are many formidable chains that are already established and successful. The restaurant industry grossed approximately $683.4 billion dollars in 2014 currently. Over the years the restaurant industry has steadily increased in industry sales. The increase in sales within the restaurant market has made up 4% of the gross domestic product within the United States. The restaurant industry is expected to hit a high record of sales in 2014 due to the strong economy and high levels of demand from consumers. Despite the high competition in the area, Marlee’s Cuisine and Bakery will position itself as a place where customers can relax and enjoy a fresh pastry or a fine dining experience. We will provide freshly prepared bakery and pastry products at all times during business operations. Seven to Ten moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are available. Our restaurant will only serve freshly prepared and thoroughly cooked food to all customers. We will serve high quality meats to ensure our customers are receiving the best meal each time.
IV. Competitive Analysis
The amount of dining options in the United States varies which causes the competition between restaurants to be intense. Many of the restaurants in the area of Short Pump Town Center offer specific dishes, such as Olive Garden, who offers a range of Italian dishes. There is not one restaurant in the area that offers a wide range of dishes to satisfy all customers. Our direct competitors are establishments that are providing high quality products and are already established chains. We want to set ourselves apart from all restaurants in the industry. Marlee’s Cuisine and Bakery will go all the way to satisfy our customers.
What will set us apart from other local restaurants are our entertainment nights. Every night we will offer entertainment options to the community such as, poetry nights and local upcoming artists. This will draw in a variety of different customers within the area. The goal of this business is to serve our customers and for them to leave with an experience that makes them want to come back.
Our kitchen staff will be the best around the world with the best culinary education. Our creative staff members will complement one another. In order to have a kitchen staff that are able to successfully prepare the meals from around the world we would need staff that specializes in multicultural culinary.
Main Competitors There are two restaurants in Short Pump Town Center that are similar to Marlee’s Cuisine and Bakery. 1. The first restaurant is a 100 seat restaurant, open seven days a week and serves lunch and dinner. Their price range is $12.00 - $21.00 for lunch and $17.00 - $29.00 for dinner entrees. 2. The second restaurant is an upscale bar with a small menu. They are located in the upper West End area. They attract many couples and mid to older adults. The small menu items range from $9.00 - $17.00 and the drinks range from $8.00 - $14.00. Everyone that’s sells prepared foods will become our competition. The key is to deliver the best food at the best price with the highest level of service. This is our concept at Marlee’s Cuisine and Bakery. Target Market We plan to cater to a wide group of people. Our goal is to want every customer to feel welcome and relaxed in a cozy atmosphere. Our men will have something for each type of customer. Business customers that work hard all day and travel frequently, are the ones who spend the most money on food, drinks, and tips. The Couples will want to go to a restaurant that has an intimate, romantic, sophisticated environment. Our restaurant will have this aspect so that couples can bring their dates and enjoy themselves throughout the entire experience. Marlee’s Cuisine and Bakery want to be a place that many people can come to network and meet different people. Our restaurant is also tailored towards families. This is the perfect place for a family to enjoy a nice dinner to accommodate everyone’s cravings. With the influx of college students in the area, we think the students will be our main customers. Most of our night events are tailored towards the young adults. The college students usually spend money on the bakery items, drinks, and food. V. Marketing Plan According to the 2013, United States Census, Virginia has 8,260,405 residents. In Glen Allen there is a population of 14,774. 60% of this population are between the ages of 21-65 years old. That is the age group that dines out two to three times a week and spends an average of $800.00 a month on food and drinks. The Short Pump area has a population of 24,729 residents and the Median Household income is $105,300.00. Short pump has a fair amount of residents but the median income is the highest within the area. Cities | Population | Household Income | Glen Allen | 14,774 | $66,772.00 | Richmond | 210,309 | $39,445.00 | Chester | 20,978 | $57,508.00 | Colonial Heights | 17,479 | $51,612.00 | Petersburg | 31,973 | $35,126.00 | Highland Springs | 15,771 | $43,892.00 | Ashland | 7,289 | $45,227.00 | Short Pump | 24,729 | $105,300.00 | We will utilize three different marketing tactics to increase customer awareness of Marlee’s Cuisine and Bakery. We will use Local media, Local store marketing, and Word of mouth (In store marketing. Word of mouth is the most effective marketing tactic and by far the cheapest. Word of Mouth Marketing Tactics * Before the Grand Opening we will have a V.I.P party. We will host a V.I.P dinner to residents in the area that are either families, couples, singles, business people, or college students. We will send out V.I.P passes to a select group of residents in the area. This is also a free event with free food. * We will have a Grand Opening Celebration with featured local artist, poetry readings, discounted foods, contests, and etc. * Holiday Dinner Celebrations (Valentine’s Day, Christmas, Labor Day, Fourth of July) * Exclusive V.I.P club that offers customers discounts and coupons on dinning, bakery items, and drinks. * College Nights that are exclusively for college students in the area to come and whine down after a long school week. We will offer $2.00 appetizers and $4.00 Margaritas. Local artists will perform and we will also have karaoke entertainment. * We will have Ethnic food nights for tourists in the area and residents that want to try food from all over the world at a great price. Local Media * Internet Marketing * Direct Mail marketing to all residents in the area with coupons included. * Value Saver coupon book * Newspaper campaign- placing large advertisement in the newspaper to deliver our concept to local area. * Innsbrook is our closest business population. We will go to each business place ads for our restaurant for lunch and dinner entertainment. Local Store Marketing * Within the Short Pump Town Center there are many stores. We will place flyers in every store within Short Pump Town Center. We will also offer a 5% discount for all Short Pump Town Center employees. * There are several hotels in the area where we can distribute brochures for the hotels and bread & breakfast establishment’s guests. The brochure will include interior pictures of our restaurant and bakery, menus, and prices. VI. Organization Plan Our management team will be well compensated. We will have a team that has considerable experience together and shares diverse knowledge of the restaurant industry. Employees are the core foundation of our business. Ivori and Harold Johnson will be the General Managers of the restaurant. The staff will include six full-time and four part-time servers, three full-time and two part-time hosts, and two full-time bartenders. We also want to hire four full-time cooks, two full-time dishwashers, three full time prep cooks, and three bussers. The estimated gross annual payroll of $269,540.00 is 27% of total projected sales. Personnel | Year 1 | Year 2 | Year 3 | General Manager | $0.00 | $42,000.00 | $42,000.00 | General Manager | $0.00 | $42,000.00 | $42,000.00 | Assistant Manager | $27,616.00 | $30,945.00 | $30,945.00 | Shift Leader | $6,780.00 | $6,780.00 | $6,780.00 | Shift Leader | $6,780.00 | $6,780.00 | $6,780.00 | Server 1 | $5,040.00 | $5,040.00 | $5,040.00 | Server 2 | $5,040.00 | $5,040.00 | $5,040.00 | Server 3 | $5,040.00 | $5,040.00 | $5,040.00 | Server 4 | $5,040.00 | $5,040.00 | $5,040.00 | Server 5 | $5,040.00 | $5,040.00 | $5,040.00 | Server 6 | $5,040.00 | $5,040.00 | $5,040.00 | Server 7 | $3,864.00 | $3,864.00 | $3,864.00 | Server 8 | $3,864.00 | $3,864.00 | $3,864.00 | Server 9 | $3,864.00 | $3,864.00 | $3,864.00 | Server 10 | $3,864.00 | $3,864.00 | $3,864.00 | Bar person 1 | $9,254.00 | $9,254.00 | $9,254.00 | Bar person 2 | $9,254.00 | $9,254.00 | $9,254.00 | Hosts 1 | $10,560.00 | $10,560.00 | $10,560.00 | Hosts 2 | $10,560.00 | $10,560.00 | $10,560.00 | Hosts 3 | $10,560.00 | $10,560.00 | $10,560.00 | Hosts 4 | $10,560.00 | $10,560.00 | $10,560.00 | Hosts 5 | $10,560.00 | $10,560.00 | $10,560.00 | Cook 1 | $17,760.00 | $17,760.00 | $17,760.00 | Cook 2 | $17,760.00 | $17,760.00 | $17,760.00 | Cook 3 | $17,760.00 | $17,760.00 | $17,760.00 | Cook 4 | $17,760.00 | $17,760.00 | $17,760.00 | Dishwasher 1 | $8,400.00 | $8,400.00 | $8,400.00 | Dishwasher 2 | $8,400.00 | $8,400.00 | $8,400.00 | Prep Cook 1 | $11,760.00 | $11,760.00 | $11,760.00 | Prep Cook 2 | $11,760.00 | $11,760.00 | $11,760.00 | Total Payroll | $269,540.00 | $356,869.00 | $356,869.00 | Total People | 28 | 30 | 30 |
VII. Operating Plan
Marlee’s Cuisine and Bakery will be located in the Short Pump Town Center shopping mall. We will be located at the main entrance of the mall to ensure that we attract as much traffic as possible. We have invested $32,000 in packaging design, product, market research and other working capital requirements. We have secured three major International food exporters, as well as one health food chain and several specialist food shops.
We will need the following to get our products to market: * Place orders with exporters, food chains, and food shops. * Arrange payments for international and domestic goods * Coordinate weekly delivery of products to restaurant * Process inventory and Pre-prep food * Place food in walk in freezer * Prep food every morning * Process customers’ orders * Cook food * Deliver orders to customers
There are risks involved with having international suppliers such as: * Trade war or restrictions on importing foods from International countries could pose an impact on supply. * Loss of a supplier would cause higher rates for products * Shipping problems could cause unsatisfactory customer service.
We plan to avoid these risks by finding back up suppliers with high quality products. If we encounter any of the above issues we can coordinate with a backup supplier to deliver the goods needed. To avoid financial issues we can use a bank loan to finance day to day operations and inventory contracts.
Supplies and Equipment
In order to run an efficient business, we will require a vast number of supplies and equipment. We expect to have two kitchens one on the ground floor and one on the top floor. The ground floor will be composed of booths, a bar and high rise tables. The bakery will have booths and indoor patio furniture. We will require char boilers, deep fryers, warming and holding equipment, microwaves, commercial ranges, range hoods, toasters, waffle and crepes machines, commercial ovens, commercial steamers, dishwashing equipment, appliances, bakery equipment, scales and etc. We will purchase all of our equipment from Central Restaurant Products.

VII. Financial Plan
$650,000.00 of funding is needed over the next year for renovations, furniture, kitchen equipment, liquor license, food and restaurant supplies, legal fees, working capital, marketing and personnel. The financial plan depend on important assumptions. We assume a slow-growth economy, no changes in the expectancy in the popularity of the restaurant and assume access to investments and financing are sufficient to maintain and fulfill our financial plan.
The most important assumption is the projected profit and loss statement. The gross margin will not increase drastically the first year, but overtime Marlee’s Cuisine and Bakery will develop its prime customer base, reputation, and extreme growth. We came up with the below projections.

Projected Cash Flow
The cash flow depends on assumptions for inventory turnover, payment days, and accounts receivable management. Our projected same-day collection is critical, and is reasonable and customary in the restaurant industry. We do not expect to need significant additional support even when we reach the less profitable months, as they are expected.

Projected Balance Sheet
The projected balance sheet is provided below. We do not anticipate any issues meeting our debt obligations if that we achieve our specific goals.

IX. Appendices

(n.d.). Retrieved from http://www.restaurant.org/Industry-Impact

NRA. 2013 pocket fact book [Web log message]. Retrieved from http://www.restaurant.org/News-Research/Research/Facts-at-a-Glance

Head, C. (2014, 02 27). New shops coming to short pump town center. Retrieved from http://www.nbc12.com/story/24845457/new-shops-new-look-coming-to-short-pump-town-center
Quick facts. (2014, 03 02). Retrieved from http://quickfacts.census.gov/qfd/states/51/5100148.html