Can-Sian Restaurant By: Ye Yang Sang Kim Sang Kim Natsuko Soejima Vince Wang Chloe Liu Jin Liu

Elements of a Business Plan Goals and Missions Management Team Location Product / Service Description Market Opportunity Competition Analysis Financial Projections Legal Requirement

Goal: Produce good reputation and royalty from consumers. We expect to have a constant 15% annual growth rate,

Mission: We supply the good quality and delicious food with reasonable price. We provide a good balance diet to customer We provide a good atmosphere for the family to spend time together.

Management Team: Experience in catering industry for 10years Chief Chef was awarded the Best Chef in Korea in 2000

Location The West Lethbridge Advantages  Population of Lethbridge

Location  The strongest population growth University Students New Housing  No direct competitors  Not enough restaurants in West

Location Specific Site West Village Mall –Easy access from University Drive. –Close to a dense population of the target market –Walking distance of University –Enough parking spaces

Product: Quality must be at the fore of our product: Quality in Food Quality in Service

What Type of food we provided: Chinese Food Korean Food Japanese Food

Integrating supply chain Three main ingredients Meat (Beef, chicken and fork) Vegetables (typical vs. basic) Other ingredients (spices, salt, sugar and etc.)

Continued 5 conditions  Cost: Charges for transportation  Time: Adequacy and speed of transit  Capability: The competency of suppliers to provide amounts of ingredients we request Dependability: Reliability of service regarding time, loss and damage Frequency: Scheduling

Meat supplier Local (Lethbridge) transaction Advantage 1.Best quality 2.Cost effective: low cost for transportation 3.Easily monitor: How the supplier produces products (quality of meat) 4. Customized products

Vegetable supplier Typical ingredients ( Chinese white cabbage, Japanese parsley..) Transaction proceeded in Calgary (Chinatown) 1)The cost for transportation 2)Possible economic detriments regarding to time, damage and loss of vegetables. 3)Typical services offered by supplier (delivery, discounts, credit, promotion, promotional support materials, guarantees and technical assistance) are not guaranteed. 4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check).

continued Basic ingredients (onion, garlic, rice … ) Transaction proceeded in local markets Local farmers Integrated market: Farmer ’ s market in Lethbridge None or inexpensive cost for transportation: delivery service suppliers offer and closeness to markets Face to face contact with suppliers (if vegetables have bad quality)

Supplier for Other ingredients Ingredients like sauce, salt, pepper, sugar.. Easily run out but easily purchased from local retailers (Wal-Mart, Sears Canada..)

Inventory Using inventory organizer (Chart or notice board) and collective inventory management involving all managers and employees. 1)Unnecessary to purchase them in large quantities. (expense of cash out of our pockets) 2) Accurate estimation from chefs, assistants and employees

Two ways to purchase equipments Buying the used Equipments Leasing

3 conditions for purchasing decision:  Sales service: credit sale, guarantee,..  Repair  Affordability: reduce star-up cost

Marketing opportunities target market: families in Westside University Students

Marketing strategy Taste and service Pricing

Competition Advantage: No Chinese restaurant in Westside Only have the fast food chain available Disadvantage: Low competitive with downtown restaurant

Advertising Flyer Coupon Word of Mouth

Sales promotions Lunch combo Discount for every Tuesday

Personnel 2 Chefs 1 Store Manager 4 Part time waiters

ItemCost Equipment15000 Inventory10000 Wages (first 2 months) Utilities Deposite100 First 2 months800 Start Up Cost

Rent Deposite1000 First 2 months20000 Advertising400 Insurance3700 Licences and permits 850 Others Pre-Paid200 Contingancy1000 Total Start up Cost72570

Net Sales Cost of Good Sold Gross Margin on Sales Expenses Rent Selling Expense Advertising Expense1200 Wages and Salaries Depreciation Expense2000 Insurance Expense3600 Utilities4800 Total Operating Expense Profit Before Interest and Tax Interest payment Net Income before tax Income Tax Net Income Pro Forma Income Statement

Break- Even Analysis The Fixed Cost is $ The Contribution as % of Sales is 75% The Break-Even Point is $331627

Legal Requirements Legal Structure: Limited partnership with 4 silent partners. Limited partnership with 4 silent partners.

Legal Requirements (Cont ’ d) Licenses and Taxes:  Provincial business license  Taxes: Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements (Cont ’ d) Intellectual Property Protection: Gain a trademark from government for the name of our restaurant — Can- Sian.

QUESTION??QUESTION??