Business plan for a Korean and Japanese restaurant

3966 words (16 pages) Essay

1st Jan 1970 Marketing Reference this

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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.

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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.

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

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.

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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