Artemis Greek Restaruant Final

Texas Woman’s University Applied Business Environment

Business 5893-50

ARTEMISCONTEMPORARY GREEK CUISINE

ArtemisContemporary Greek Cuisine

Executive Management Team

Sharla Rose Director of Accounting

Sommer Smith Assistant Chef

Lesley OuyoDirector of Marketing

Executive Management Team

Erika CaldwellDirector of Finance

Omolade Lawal-SolarinRestaurant Supervisor

Andrea McCulloughExecutive Chef

Executive Summary The new start-up enterprise is called: “Artemis Contemporary

Greek Bistro”, LLC. The restaurant will be located in Park Cities area near Lemmon Avenue. The name “Artemis” was one of the most widely honored of the Ancient Greek Goddess deities. This is the concept that Artemis will operate by.

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Artemis Mission Statement

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Problem Being Solved

Artemis will serve authentic Greek foods using only low fat low cholesterol oils. The fruits and vegetables are locally grown while the meats are from a safe, healthy, natural and nutritious grass-fed animals.

Artemis takes pride in cooking the right meals and is a great alternative to fast foods choices. It satisfies the need of health conscience customers looking for healthy alternatives.

Andrea McCullough

The Market

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Market Summary – Park Cities

Highland Park- Pop. 9,392 University Park – Pop. 23,324

Park Cities Pop. 32,716

Source: www.census.gov 8

Potential, Addressable, & Capturable Market for Restaurant

Sales in the Dallas County Area

5 Year Annual Restaurant Sales with 5% Annual growth (In Thousands of Dollars)

Macro Demand Curves

Source: www.census.org9

Year Potential Market Addressable Market Capturable Market % of Market

share

1 $1,493,588,840 $32,317,530 $16,158,765 .50%

2 $2,240,383,260 $48,476,295 $36,357,221 .75%

3 $3,360,574,890 $72,714,443 $72,714,443 1.00%

4 $5,040,862,335 $109,071,664 $136,339,580 1.25%

5 $7,561,293,502 $163,607,496 $245,411,244 1.50%

Drivers

Source: www.restaurant.org 10

Drivers

Consumers looking for healthy options

Offering locally produce items

Payment options (smartphone payment app., electronic payment

system at table)

Product Value Index

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Artemis/ Gyro Plate Café’Greek / Gyro Plate

Stratos /Gyro Plate

0.5

0.1

0.9

KPI's For Artemis Contemporary Bistro

.1-1 value range

Product Value Index for Artemis Contemporary Bistro

Company/Product Price/.1 – 1 value

range

Weight/.1 – 1 value

range

Size/.1 – 1 value

range

Total Value

Artemis/ Gyro Plate $10 .8 2 lb. .7 1” .8 .5

Café 'Greek / Gyro Plate

$8.95 .5 1 lb. .4 2” .5 .1

Stratus /Gyro Plate $10.45

1 2 lb. .9 3” 1 .9

TOWS Analysis – High Level

STRENGTHS1. Serving authentic Greek Cuisine2. Serving healthy alternatives3. Prices are lower than competitors4. Service is new to the area

ST STRATEGIES1. Provide an alternative menu for vegans, vegetarians.2. Negotiate with local markets to get fresh produce3. Keep our margin costs down so we can offer competitive

prices

WEAKNESSES1. Restaurant is new and not established2. Training new staff and chefs3. Offer a menu that is already available on the market4. Limited funds available

WT STRATEGIES1. Increase public knowledge of restaurant on tweeter, face

book, and other social media2. Create an effective training strategy

OPPORTUNITIES1. Smart phone app payment system2. Offer home delivery3. No other famous Greek restaurant in the area4. Room for expansion 

SO STRATEGIES1. Set-up phone app payment system2. Offer discount rates to business dinners3. Having weekly coupons in newspaper

THREATS1. Increase in food/alcohol prices2. Existing competitor can lower price3. Better advertising from competitors4. Down turn in economy affecting the ability to eat out as

much

WO STRATEGIES1. Build strong relationship with vendors2. Set-up home delivery

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Erika Caldwell

Projected Results of Operations

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Source: www.restaurant.org

Projected Results of OperationsKey Performance Indicator -UNAUDITED NON-GAAP

( in Thousands of Dollars)

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Year Year 1 Year 2 Year 3 Year 4 Year 5

Revenue  $707,012 $1,211,088 $1,279,204 $1,341,260 $1,406,670

COGS  $371,416 $398,407 $406,976 $415,276 $423,597

Gross Margin  $335,596  $812,681 $872,228

  $925,984  $983,073

Cash Balance  (233,193)$32,173 $309,405 $626,035 $984,241

Net Income (after taxes) ($105,125) $250,357 $263,096 $303,689 $346,357

Number of Employees 30 30 31 31 31

Revenue Per Employee  $35,351 $60,554 $63,960 $67,063 $117,223

Expenses Per Employee  $27,549 $27,254 $28,974 $29,189 $29,424

Gross Margin  %47 67% 68% 69%  70%

Debt Ratio  195% 58%  31% 19% 15%

Current Ratio  N/A 1:1 7:1 13:1 20:1

Return on Assets -96% 72% 44% 34% 29%

Profit Margin on Sales 69% 69% 69% 69% 69%

Sources and Uses of Funds

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Use of Funds

Total Start-Up Expenses $117,549

Total Start-Up Assets $193,900

Total Required Start-Up Costs $311,449

SBA Loan $200,000

Owner's Investment $111,449

Total Required Start-Up Funding $311,449

As owners, knowing the estimated value of the business is important regardless of what the company’s future business plans are. Whether the owners are contemplating selling the restaurant or not. Knowing the value of Artemis is important for a variety of situations including: Financing, partnership dissolution, marital changes, insurance settlements, and death of owner.

At the end of the fifth year, the forecast for Artemis worth will be approximately $2.1M. (Estimated 5th Year Net Income $346,357 discounted at a 10% NPV (x.62) and then a 10X P/E multiplier is applied).

End of Year 5 Estimated Enterprise

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Sommer Smith

Exit Strategy & Summary

Exit Strategy

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Private Sale

Merge

Let it run dry

Artemis Contemporary Bistro is a Limited Liability Company that is operated by several owners. These owners have the knowledge and background experience to not only be successful restaurant owners but able to endure the many challenges that comes with operating a new business. Artemis will be designed to create a Roman Greek experience so that customers can enjoy while providing fresh and appetizing foods that are healthy and reasonably priced. The many customers that Artemis intends to capture will not only enjoy the many fine delicacies but become apart of the Artemis family of Bistros that will endure for years to come.

Summary

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Questions

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• Park Cities. (2008). Retrieved 07 16, 2012, from http://www.dallasrelo.com/parkcities.html

• City data.com. (2010). Retrieved 07 16, 2012, from highland park, Texas: http://www.city-data.com/city/Highland-Park-Texas.html

• Sperlings best places. (2011). Retrieved 07 16, 2012, from People in highland park: http://www.bestplaces.net/people/city/texas/highland_park

• DFW.com. (2012). Retrieved 07 11, 2012, from Texans dine out more than any other state, survey says: http://www.dfw.com/2012/03/08/589114/texans-dine-out-more-than-any.html

• National Restaurant Association. (2012). Retrieved 07 11, 2012, from Trends & Forecasts: http://www.restaurant.org/research/forecast/

• United States Census Bureau. (2012). Retrieved 07 11, 2012, from Monthly & Annual Retail Sales: http://www.census.gov/retail/

References

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