Selling tactics

Contending against both "informal-dining-steakhouses" and "family-steak-restaurants," we will be offering these benefits: (1) Low pricing for complete buffets, (2) customers will not be giving tips since the restaurant will be self-service, (3) giving speedy service to all customers at all times, (4) offering variety in meals all the way through the week and (5) diners can watch their favorite sports during their meals.

The sales annual projections for the next 3 years are summed up below in table 3 below.

Table 3: Sales Forecast

Unit Sales

2010

2011

2012

Meals

22,822

35,000

45,000

Drinks

11,415

17,500

22,500

Other

1,000

Total Unit Sales

34,477

53,000

68,500

Unit Prices

2010

2011

2012

Meals

$15.00

$15.00

$15.00

Drinks

$2.00

$2.00

$2.00

Other

$10.00

$10.00

$10.00

Sales

Meals

$342,330

$525,000

$675,000

Drinks

$22,830

$35,000

$45,000

Other

$2,400

$5,000

$10,000

Total Sales

$367,560

$565,000

$730,000

Direct Unit Costs

2010

2011

2012

Meals

$2.00

$2.00

$2.00

Drinks

$0.50

$0.50

$0.50

Other

$1.00

$1.00

$1.00

Direct Cost of Sales

2010

2011

2012

Meals

$45,644

$70,000

$90,000

Drinks

$5,708

$8,750

$11,250

Other

$240

$500

$1,000

Subtotal Direct Cost of Sales

$51,592

$79,250

$102,250

Management and Operations plan

The entire initial-management will be dependent on the originator of the restaurant. He, however, will acquire a little back-up from others. Additional assistance will be taken as the business grows and flourishes. Additional workforce will only be taken into consideration when the time is right. This will increase responsibility of the initial workforce as they will have to perform many tasks, which in turn will give higher returns to investors in a short span of time (Davis, 1984).

Personnel Plan

The comprehensive yearly personnel estimates for the first 3 years are given in table 4 below (Davis, 1984):

Table 4: Personnel Plan

2010

2011

2012

Manager

$60,000

$65,000

$70,000

Hostess

$42,000

$45,000

$50,000

Chef

$54,000

$60,000

$65,000

Cleaning

$30,000

$35,000

$40,000

Waiters

$72,000

$100,000

$130,000

Other

$24,000

$52,000

$55,000

Total People

8

10

12

Total Payroll

$282,000

$357,000

$410,000

Human resources plan

At present, accounting along with payroll operations will be carried out by a bookkeeper, whose service will be hired through a contract. Later on, after such an expense can be managed internally, we will stop outsourcing both accounting along with payroll operations. We also plan to hire marketing director, procurement director, regulator, human resource manager along with an administrative assistant (Davis, 1984).

Financial data

Our financial plan is founded on cautious approximations and suppositions (Riebesell, 2001).

Important Assumptions

Table 5 outlines our "break-even analysis," Our break-even analysis is presented as "per-unit revenue," "per-unit cost," along with "fixed costs (Riebesell, 2001)."

Table 5: Break-even Analysis:

Monthly Units Break-even

14,028

Monthly Revenue Break-even

$146,453

Assumptions:

Average Per-Unit Revenue

$10.44

Average Per-Unit Variable Cost

$8.34

Estimated Monthly Fixed Cost

$29,459

Projected Profit and Loss:

The annual approximations of profit and loss for the next 3 years are given in table 6 below (Riebesell, 2001):

Table 6 Pro Forma Profit and Loss

2010

2011

2012

Sales

$367,560

$565,000

$730,000

Direct Cost of Sales

$51,592

$79,250

$102,250

Other

$0

$0

$0

Total Cost of Sales

$51,592

$79,250

$102,250

Gross Margin

$315,969

$485,750

$627,750

Gross Margin %

85.96%

85.97%

85.99%

Expenses:

Payroll

$282,000

$357,000

$410,000

Sales and Marketing and Other Expenses

The yearly cash flow estimates have been included in Table 7 below (Riebesell, 2001):
Table 7: Pro Forma Cash Flow

2010

2011

2012

Cash Received

Cash from Operations:

Cash Sales

$367,560

$565,000

$730,000

Cash from Receivables

$0

$0

$0

Subtotal Cash from Operations

$367,560

$565,000

$730,000

Subtotal Cash Received

$367,560

$565,000

$730,000

Expenditures

2010

2011

2012

Expenditures from Operations:

Cash Spending

$8,979

$13,273

$20,231

Payment of Accounts Payable

$395,818

$525,084

$645,906

Subtotal Spent on Operations

$404,797

$538,357

$666,137

Additional Cash Spent

Long-term Liabilities Principal Repayment

$0

$10,000

$15,000

Subtotal Cash Spent

$404,797

$548,357

$681,137

Net Cash Flow

($37,237)

$16,643

$48,863

Cash Balance

$50,763

$67,405

$116,268

Projected Balance Sheet

The balance-sheet displays wholesome growth of net-value along with a powerful financial standing. The yearly estimates have been included in table 8 below (Riebesell, 2001).

Table 8: Pro Forma Balance Sheet

Assets

Current Assets

2010

2011

2012

Cash

$50,763

$67,405

$116,268

Other Current Assets

$50,000

$50,000

$50,000

Total Current Assets

$100,763

$117,405

$166,268

Long-term Assets

Long-term Assets

$0

$0

$0

Accumulated Depreciation

$1,000

$2,050

$3,153

Total Long-term Assets

($1,000)

($2,050)

($3,153)

Total Assets

$99,763

$115,355

$163,116

Liabilities and Capital

Current Liabilities

2010

2011

2012

Accounts Payable

$10,294

$15,217

$23,194

Current Borrowing

$0

$0

$0

Other Current Liabilities

$0

$0

$0

Subtotal Current Liabilities

$10,294

$15,217

$23,194

Long-term Liabilities

$100,000

$90,000

$75,000

Total Liabilities

$110,294

$105,217

$98,194

Paid-in Capital

$40,000

$40,000

$40,000

Retained Earnings

($3,000)

($50,532)

($29,862)

Earnings

($47,532)

$20,670

$54,784

Total Capital

($10,532)

$10,139

$64,922

Total Liabilities and Capital

$99,763

$115,355

$163,116

Net Worth

($10,532)

$10,139

$64,922

Conclusion

Since "The Assemblage" is completely different from other restaurants in the neighborhood, it will be able to attract a lot of clients. It is the solution of consumers' desire for a quality eating experience together with quality leisure and entertainment. Therefore, it is hoped that investment in this high-quality project is taken into due consideration.

References

Hensley, S. And Donohue, M. (2009). Restaurant Industry Expected to Post Modest Sales Growth in 2009 as it copes with the Weakest Economy in Decades. National Restaurant Association. Accessed from: http://www.restaurant.org/pressroom/print/index.cfm?ID=1725

Bryson, J. (1995). Strategic Planning for Public and Non-Profit Organizations; Jossey-Bass: San Francisco,; 137.

Daniels, J. And Radebaugh, L. (1998) International Business: Environments and Operations, 8th edn. Addison-Wesley: Reading, MA.

Davis, S. (1984). Managing Corporate Culture. Cambridge MA: Ballinger.

H.F. Riebesell. Small Business Planning: Entities, Succession and Implementation. PESI, 2001.