Restaurant

BUSINESS PLAN

AMERICAN DINER

5409 Lapel St.
Timbuktu, UT 48224

January 4, 1993

Adopting a 1950s theme, the American Diner intends to serve traditional foods, such as fruit pies and cobblers, freshly baked breads, pot pies, and other "home-cooking" with an eye toward health. The two proprietors, both experienced restauranteurs, intend to draw on their extensive food service backgrounds as they launch their new business. The following plan outlines the strategy the Diner will develop to cater to the growing Timbuktu community in the face of strong competition.

• EXECUTIVE SUMMARY
• INTRODUCTION
• MENU
• MARKET DESCRIPTION
• COMPETITION
• MARKETING STRATEGIES
• MANAGEMENT TEAM
• FINANCIAL PROJECTIONS
• APPENDICES

EXECUTIVE SUMMARY

Founders

John Doe has worked in food service for over 17 years. In 1984, he established the popular and successful downtown restaurant, Paris Cafe, and as owner, was involved in all aspects of its business for six years until its sale in 1990.

Jane Smith was instrumental in the planning and start-up of The Watering Hole one of Timbuktu's most popular bar/restaurants. She has worked in food service/food retailing since 1980 and has extensive managerial experience.

Type of Business

Diner, structured as a limited liability business.

Company Concept

American Diner will create a community atmosphere as a good, old-fashioned neighborhood cafe in thriving downtown Timbuktu.

Financial Goals

To acquire $107,000 needed to capitalize the American Diner project, with an estimated payback in five years.

INTRODUCTION

American Diner is designed to create a community atmosphere as a good, old fashioned, friendly, neighborhood cafe. The location at 5409 Lapel St. puts the diner in the heart of lively, downtown Timbuktu.

A priority of American Diner will be serving fresh, healthful fare with all selections made on the premises from "scratch." To keep food costs down, the menu will be simple, yet creative with many interchangeable ingredients. Foods will come from local and regional suppliers whenever possible, with a preference for organically grown products. Emphasis will be placed on the bakery which will feature old-world breads baked daily. A deli counter, fine coffees, and a fresh juice bar will also be showcased.

Setting the mood of a '50s diner with decor, American Diner will be a simple 50-seat cafe with neon signage, checkered tile floors, grey booths with formica/chrome tables, a refurbished pressed-tin ceiling with ceiling fans, and a lunch counter (with the look of an old soda fountain) to match the tables. Only counter service will be offered to keep labor costs low. This will also keep the dining costs reasonable for consumers, self-service with no tipping expenses.

Most of the menu will revolve around baked goods, e.g. pot pies with fresh, flaky crusts, freshly baked breads, pies and cobblers. The deli will offer a choice of fresh mini-loaves for sandwiches. As learned from her experience with the downtown Timbuktu restaurant, Paris Care, a strong need exists for quick, diverse (vegetarian and non-vegetarian), and well-organized carry-out food for the downtown labor force as well as for downtown shoppers. In increasing numbers of single households and dual earner households with limited time for food preparation, many consumers are seeking fast, nutritious meals. College students, another large group of consumers for American Diner, are well-known for their appetite for quickly prepared good food.

Future plans include expanding the bakery line, increasing over-the-counter sales (e.g., packaged loaves of bread and whole pies), possible downtown and university delivery, and a continuing effort to become more proficient in carryout operations.

Based on projections by the Institute for Public Policy and Business Research at the University of Timbuktu, the Timbuktu population is expected to grow 5-7% in the next five years, during that time, downtown Timbuktu will continue to provide a unique, vibrant, shopping and entertainment center for this region.

MENU

To keep food and labor costs low