Dragon Chinese Restaurant Kelly Liu Comm 447

Who We Are? Dragon Chinese Restaurant is a sole proprietorship restaurant own and run by myself. The restaurant is willing to provide customers the real authentic Cantonese style of food, especially the Cantonese barbecue, at a reasonable price.

What do we offer? AS I just mentioned, Dragon Chinese Restaurant is going to provide the high quality of real authentic Cantonese food to the customers, especially the Cantonese barbecue, at a reasonable pricing and quantity. The chefs of the restaurant are having many years of experience in cooking Cantonese food, in order to provide the customers the real taste of Cantonese food, and the memory of the homeland for the Cantonese people. Since the barbecue is being ready in the morning, and the other Cantonese food only need short time to be prepared; it is easy for take-out Also, we will provide daily special of Cantonese style of soups

Where Are We? The restaurant will be located in the Grosvenor Park Centre at 8th street. The restaurant is going to locate there because 8th street is one of the busiest area in Saskatoon. In this area, many stores and restaurants located there, which caused many people going to this area. Although there are many different restaurants, none of them provided the real authentic Cantonese barbecue and other food, so this will be a competitive advantage to attract customers to eat at Dragon Chinese Restaurant. As there are many people working or living at the surrounding area, they are willing to go nearby to enjoy delicious food.

Floor Plan

Target Market The primary target markets for the restaurant are people who are willing to dine at 8th street, living at surrounding area and Chinese people.

Competitors New Fuhao Restaurant Yip Hong’s Dim Sum Restaurant Mandarin Restaurant

Capital Budgets Capital Budget Lease Hold of Improvement 50,000 Equipment and Furniture 250,000 Total $300,000 To start up the restaurant, there is a capital requirement of $300,000. This will cover the lease hold of improvement, equipment and furniture.

Revenue Projection Average Purchase: $22 Average COGS: $7.70 Maximum capacity of 3 turns are 216 customers. To breakeven: year one need 98 customers per day with $22/customer; or 120 customers per day with $17.91/customer The restaurant will still be profitable and the owner can still get good return on her investment, if there is 100 customers/day and have $18/customer. Average Purchase: $22 Average COGS: $7.70 Gross Profit Margin: 65%

Financial Projection Expected IRR= 104.6% Gross Payback: $2,303,130 Net Payback: $2,103,130 NPV: $915,634 ROI= 20% Expected IRR= 104.6% Internal rate of return Owner Compensation 50,000 152,495 272,162 329,195 363,748

Critical Factors Customers per day Purchases per customer Base Case: 120 customers per day Break-even: 98 customers per day Purchases per customer Base Case: $22 per customer Break-even: $17.91 per customer

Questions? Thank You!