Dino's Diner Business Plan Original

Dino’s Diner

Table of Contents

← 1.0 Executive Summary ← 2.0 Company Summary ← 3.0 Services ← 4.0 Market Analysis Summary ← 5.0 Strategy and Implementation Summary ← 6.0 Web Plan Summary ← 7.0 Management Summary ← 8.0 Financial Plan

Dino’s Diner

1.0 Executive Summary

Our initial statement to Investors and Financial Lenders is a open disclosure of the Dino’s Diner business proposal - our intent is to set realistic business expectations, and eliminate any questions about the profitability of this business venture.

Entrepreneurs have a tendency to paint the business plan with a very optimistic brush, highlighting strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the success of this restaurant. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows:

1. Our business concept was derived from detailed Market Analyses

Instead of building a business around a preconceived concept, we analyzed the market findings and built a concept around our consumers. In other words, our business is built to service an unmet consumer 'want'.

2. A buffered financial plan that ensures adequate capitalization

A contingency buffer is included in the start-up cost to ensure the business in not under financed, as well as giving the business adequate funding to sustain it in the first six months of start-up. Our industry experience confirms a longer ramp-up stage for restaurants over other retail/service businesses. A common mistake for new entrepreneurs, but fully addressed in this business plan.

3. A solid Risk alleviation Plan

We have evaluated traditional and non-traditional risks associated with Restaurant failure and accounted for them directly in the business plan. Instead of dismissing the risks, we have identified valid mitigation strategies for each.

The total capital requirement to launch Dino’s Diner is Rs. 5,102,250.

This Plan is being submitted in order to secure a Business loan for Rs. 2,551,125. The loan will be used towards Equipment purchase, Design, Construction, and Operational Start-Up expenses. Owners, Mr. Hassan Raza and Mr. Abdul Samad are investing Rs. 2,551,125 in personal capital.

As owners, our commitment is to take personal accountability for all financial debt. We have taken the necessary precautions to ensure the business is fully capitalized, and have addressed all financial shortfalls to ensure a successful business start-up.

Dino’s Diner1.1 Objectives

Dino’s Diner objectives for the first three years of operation include:

Keeping food costs at less than 35% of revenue. Improving our Gross Margin from 34% in Year 1 to 36% in Year 2. These are

attainable targets; our aim is to attain 39% by Year 3. Keeping employee labor cost between 9-13% of total sales. Remaining a small, unique restaurant with eclectic food and service. Promoting and expanding the Dino’s Diner concept as a unique Blue Area

destination restaurant. Expanding our marketing and advertising in Islamabad and in the neighboring

suburbs to increase our customer base.

1.2 Mission

Dino’s Diner will be an inspiring restaurant, combining an eclectic atmosphere with excellent and interesting food. The mission is to have not only a great food selection, but also efficient and superior service - customer satisfaction is our paramount objective. Dino’s Diner will be the restaurant of choice for a mature and adult crowd, couples and singles, young and old, male or female.

Employee welfare, participation, and training are equally important to our success. Everyone is treated fairly and with the utmost respect. Our employees will feel a part of the success of Dino’s Diner.

Our concept combines variety, atmosphere, entertainment and a superior staff to create a sense of 'place' in order to reach our goal of overall value in the dining/entertainment experience. We offer fair profits for the owners and a rewarding place to work for the employees.

1.3 Keys to Success1. Unique, Innovative & modern:

The creation of a unique and innovative fine dining atmosphere will differentiate us from the competition. The restaurant will stand out from the other restaurants in the area because of the unique design and decor. We will offer a fine dining experience in an electric atmosphere.

2. Product quality:

Great food, great service and atmosphere.

Dino’s Diner3. ‘A Spice of Life' Menu:

The menu will appeal to a wide and varied customer. Our eclectic menu features specialties appealing to all kinds of food lovers. Italian pastas, juicy steaks, soups to local delicacies.

4. Employee Retention Focus:

Employee retention and development programs will be a primary focus and success platform for this business. Through these programs, we will be able to draw seasoned and elite professionals and build a committed work force. We have budgeted for a stock option program for Chef and Management positions to subsidize a lower salary base. This lowers our immediate overhead and attracts quality staff.

5. Cost Control Focus:

We will control costs at all times, without exception. Cost Control will be an integrated function of the restaurant from the onset. Cost control is about managing the numbers - interpreting and comparing the numbers that impact the bottom line. 80 percent of the success of a restaurant is determined before it opens. Our focus is to reduce the cost of goods sold to meet our profit margin goals by managing the following crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory, Rough Preparation, Service Preparation, Portioning, Order Taking, Cash Receipts and Bank Deposits.

2.0 Company Summary

The Design:

Dino’s Diner is unique to Blue Area Islamabad. The restaurant features 3 venues in one (a concept called a Multi-Branding'): A Sheesha Lounge, Drink Corner, and Full Service Dining. This concept offers customers variety, offering multiple dining and entertainment options within a single establishment. The spatial and menu divisions will broaden our appeal and provide our customers with a different experience on each visit.

Total space requirements are 18,000 square feet. In total, the restaurant will provide seating for 110 Customers. Where possible, consideration will be given to incorporate a dining patio. Parking and accessibility issues will be reviewed as key criteria.

The Menu

Dino’s Diner is focused on servicing Islamabad's growing demand for an ethnic eating experience. For lack of a better term we are launching a multi-Branding food restaurant - a restaurant concept that responds to Islamabad's need for selection and choice. Dino’s Diner is a complimentary mingling of international food on a single menu. The Blue Area demographics fit this concept perfectly.

2.1 Company Ownership

Dino’s DinerThe restaurant will start out as Partnership, owned by its founders, . Hassan Raza and Mr. Abdul Samad. Mr. Hassan will function as the General Manager and Mr. Samad as Managing Partner.

2.2 Start-up Summary

We are currently negotiating a restaurant space of 18,000 sq. ft. in Blue Area Islamabad and will open Dino’s Diner in January 2008.

Project investment:

Items Cost(Rs.)

construction cost 1,307,000

furniture 542,250

machinery 967,000

advance rent 1,200,000

preliminary expenses 50,000

working capital 1,036,000

total 5,102,250

Machinery:

items detail quantityunit price

(Rs.)total price

(Rs.)

freezers 3 25,000 75,000

cocking range 1 650,000 650,000

hot plate for kebab and other things 1 33,000 33,000

soup container 1 50,000 50,000

cutters 1 3,000 3,000

piller 1 6,000 6,000

microwave 1 10,000 10,000

working table 2 20,000 40,000

racks & shelves 2 10,000 20,000

deep well frier 2 40,000 80,000

Total 15 - 967,000

Furniture and Fixture:

Dino’s Diner

Item Detail QuantityUnit

Price(Rs.)Total

Price(Rs.)Dining Table – Square (2x2) 25 6,000 150,000

Chairs (Standard 14”) 100 1,500 150,000

Kitchen Cutlery Set 2 2,500 5,000

Dining Cutlery 150 150 22,500

Air Conditioner Split Units (6 Ton) 2 31,000 62,000

Hot Water Geyser Large 1 20,000 20,000

Halogen Lights 25 250 6,250

Wall Lights (Large) 4 1,500 6,000

Portable Emergency Light 4 2,500 10,000

Generator (1.5 KVA) 1 90,000 90,000

Counter Chairs 2 1,500 3,000

Office Table & Chair Set 1 10,000 10,000Waiting Chairs for Take away customer

5 1,500 7,500

Total 322 168,400 542,250

2.2.1 Location & Operations

Restaurant Location:

Blue Area Islamabad is the location selected for the Dino’s Diner concept. The outlook for the future of Islamabad's Blue Area district is exceptionally positive and the most progressive development area in the city.

The market has been carefully selected and tested for the necessary demographics and retail traffic necessary to meet the goals laid down for profitability. The busy Blue Area commercial/residential location has been chosen based upon a successful demographic model and a traffic count.

Restaurant Design:

Single-Level Design Concept: The total space requirement is 18,000 square feet. The restaurant will feature a comfortable and open concept design. The restaurant will provide seating for 110 Customers. Where possible, consideration will be given to incorporate a dining patio. Parking and accessibility issues will be reviewed as part of this analysis.

Optional Patio: During the busy summer months customers can also sit outside on our patio and we will offer a special summer menu, featuring lighter price and exotic drinks. The patio setting will be a fun and casual atmosphere for the summer crowd.

Operating Criteria:

Dino’s DinerThe restaurant will be located in Blue Area Islamabad. The restaurant will service lunch, dinner, and after-hours dining during the week and weekends. The restaurant will operate during peak service time to take advantage of street traffic, and after-hour patronage from the entertainment facilities in the area. Service will be available during the following hours:

Lunch: Monday to Sunday, 11 a.m. - 2:30 p.m.

Dinner: Monday to Sunday, 5:30 p.m. - 12 midnight

3.0 Services

Dino’s Diner will feature international dishes, an eclectic atmosphere, and superior service. Our food will be of the finest quality and prepared with exotic flare. Customer satisfaction is the driving force behind our success. We will update our menu every 4 months, but maintain the 'favorites' for loyal Customers. Portions will be modestly sized, garnished with stunning presentation.

In order to attract more selected customers we are also offering a separate selection of Sheesha flavors.

The kitchen staff will have the best in cooking education and work experience. Their creative talents will compliment one another. The lounge and restaurant staff will offer the finest service in an electric atmosphere and offer customers an extraordinary dining experience.

3.1 Dino’s Diner Menus

Dino’s Diner varied international menu will feature a starters selection, Italian food, a selection of steak choices, a seafood selection and for the traditional eaters a selection of local Pakistani foods selection. The menu flows together to create complementary elements. The final menu will be defined by the Executive Chef and paired with the drinks menu. Dino’s Diner marketing will focus on our exotic foods, but our hours, target market, and location will produce significant juice drinks sales. Tapas, in particular, are small dishes meant for sharing while smoking sheesha, or other mixed drinks, and the Tapas menu will play up this idea with drink & sheesha suggestions.

The list below offers a small selection of our opening menu offerings:

Dino’s Diner Tapas

← Chicken Grilled Cubes served with white sauce and nan← Sheesh Tawouk served with roasted nut sauce ← Bamboo Chicken Satay served with Sesame marmalade

Dino’s Diner Starters

← Garlic Bread basket served with a sprinkling of Basil ←← Chicken Wings with tomato ketchup← Nachos (2 Types) served with a spicy tomato sauce← Fried Calamari served with French fries and cheese sauce

Dino’s DinerSalads

A complete salad bar with plain and cream salads

Main Course

Steaks: (Chicken & Beef)

3 to 4 types of steaks served with a choice of baked or mashed potatoes or French fries and choice vegetables

Italian:

Spaghetti

Pasta

Lasagne

Pizzas

Chicken:

Burgers

Deserts

← Chocolate Chunk Bread Pudding ← Dino’s Diner Chocolate Explosion-Milk, Dark and White chocolate

← Dino’s Diner Fruit Plate← Selection of Ice cream flavors← Waffles served with 2 or 3 scoops of ice cream

Specialty Drinks & Coffees:

A key source of revenue for the restaurant will be drink sales. The restaurant will feature exotic drinks on a separate menu. These drinks will include fruit shakes, flavored ice teas, cocktails. Coffees will include regular black, cappuccinos, cream coffees, coffee shakes & mocha chinos.

4.0 Market Analysis Summary

Dino’s DinerInstead of building a business around a preconceived concept, we conducted market research and built a concept around our consumers. Our market analysis identified the following key drivers as areas of opportunity to service restaurant customers:

1. Portion Selection:

Nearly 95% of our surveyed focus group endorsed having a choice of different size portions. Our concept is built to offer different-sized portions. Our customers want the option to choose what satisfies their appetite.

2. The Dining Experience:

Customer satisfaction with food and service has been and continues to be of utmost importance, but our findings indicate that the lighting, atmosphere, and other options to improve the dining experience are also factors in customer decisions. We take all these factors in consideration for the design of this cosmopolitan restaurant.

3. Reasonable Prices:

This was no surprise given the economic tide. Although the restaurant industry as a whole has seen grow, customers are demanding value for their dining. And we have given very reasonable prices for quality food.

4.1 Market Segmentation

Dino’s Diner intends to cater to a wide customer base. We want everyone to feel welcome and entertained. We have defined the following groups as targeted segments that contribute to our growth projections:

The Business Person Couples The Destination Customer High-End Singles Tourists

These particular market segments are 25-45 years old, have disposable income, and are seeking upscale, trendy, and comfortable restaurant options. These are the types of people who frequent other restaurants and lounges in the area. They are likely to spend more on experiences they perceive as unique, cosmopolitan, and sophisticated. They are also the most open to trying something new, food wise, and will embrace our international fusion food.

The Business Person:

Dino’s DinerThey work hard all day and often stay overnight in a strange city. They need a competent establishment that helps impress clients and prospects. Afterward, they want to relax and use the money they are making (or are expensed by their company). They spend the most on drinks, food and tips. Dino's Diner cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people, whether they live in and around Islamabad or are here for work.

Couples:

The restaurant will have an intimate, romantic, enticing adult atmosphere. Dino's Diner will be the best location in town. These young Blue Area couples are generally very successful working professionals. In most cases they are budgeting to eat out on a regular basis, as they don't have the time to prepare food nightly.

The Destination Customer:

Islamabad is a much 'sectioned' city, and consumers often look only in their own neighbor hoods for restaurant options. Dino’s Diner will break these habits, using marketing to draw customers from outside the main city limits. Dino’s Diner will be a destination restaurant. Our Destination Clients tend to be new suburbanites that miss the excitement of the inner city. They have disposable income, and will spend quite a bit on such outings. Dino's Diner will be especially appealing to married suburban couples indulging themselves with a "date night”, away from the kids. Many of these consumers are new to Islamabad from larger cities, accustomed to dining within the city and at non-franchised restaurants.

High-end Singles:

We will attract them with our eclectic atmosphere and layout. Our international menu, striking decor, entertainment and events, excellent service and engaging customers will confirm the feeling of being in "the in place" in Islamabad. These are the individuals that pride themselves on socializing and dining at the premier locations - The Image Seekers.

Tourists:

Islamabad attracts many vacationers during the summer months of May through September. Dino's Diner will be a destination dining locale, with its attractive atmosphere, international menu, and lounge. A large percentage of the tourist populations are vacationing singles, here to socialize and be entertained. This is especially true for the tourist population that visits for sporting and social events - they are not interested in family establishments.

4.2 Service Business Analysis

The restaurant industry is highly competitive and risky. The owners know this through their many years of experience opening, running, and improving restaurants across Pakistan. Most new restaurants opened by inexperienced owners struggle or fail. However, those based on solid understandings of the market needs, and management of

Dino’s DinerInventory and staff have a much higher chance of success, especially when combined with prior experience in the restaurant industry.

Restaurants make money by taking inexpensive ingredients, combining them in creative ways, cooking them properly, and selling them at a much higher price. Any ingredients wasted in the kitchen are money thrown out. Any time wasted in seating customers, taking orders or preparing food is money walking away. While some entrepreneurs think that success is as simple as a good location and a trendy concept, we know the truth:

To succeed in the restaurant industry, you need an understanding of the risks and financial conditions, the ability to handle enormous pressure, and the organizational skills to bring off what is essentially a giant catered party, two to three times a day.

4.3 Competition and Buying Patterns

In 2007, the top ten Islamabad restaurants shared two things: cozy, hip interiors and reasonably priced, regionally specialized menus Our competitors are heading in the right direction, but only Dino's Diner based on sound market research in the local market. Islamabad consumers are seeking variety and new experiences. Location is clearly important, but so is atmosphere and uniqueness. Our marketing challenge is thus to stand out from our competitors, not only as the "new" restaurant, but as one that offers consistently high quality food, menu variety, and a unique atmosphere.

4.4 Marketing Strategy

Dino’s Diner Marketing strategy will be to promote our electric food, superior service, and exciting concepts to draw in the local repeat customers. Marketing initiatives will concentrate on the following:

Building and Signage:

The most important Marketing tool that we have is the exterior of our building, and our new sign. We budgeted a great deal into the renovations and decor to generate the aesthetic appeal of Dino’s Diner.

Customer Service:

In our years within the restaurant industry, customer service has always been the major draw for the dining customers. Food and atmosphere is far out-shadowed by superior customer service that turns a new customer into a repeat customer.

Management will demand the wait-staff provide the very best in quality services to the customer, making certain that they are content and satisfied with their dining experience. Wait-staff are thoroughly trained, and every 90 days they undergo a performance appraisal. This is part of our Employee Manual, and Operations Manual guide.

Advertising and Promotion:

Our Advertising Plan and media schedule call for targeting customers directly through local publications aimed at, respectively, singles, couples, and destination customers.

Dino’s Diner

Management recognizes the key to success at this time of initial opening is extensive media promotion. This must be done aggressively in order to accomplish our service goals. A healthy budget is allocated for the first year. A primary part of the budget is allocated to create the media and customer buzz for the month prior to opening and the next three months after the grand opening. The full Marketing program is as follows:

Media Objectives and Strategy:

Establish our image as a unique Blue Area restaurant with great service, value, and great food served in an eclectic atmosphere. We will maximize efficiency in the selection and scheduling of advertisements by:

Selecting primary business publications with high specific market penetration, using The Creative Loafing Dining Section,

Scheduling adequate frequency of ads to impact market with menu items and promotions.

Where possible, positioning advertisements in or near entertainment/food related editorial.

Redirecting customers to our website to register for upcoming functions, VIP lists, reservations, and flash media promotions.

Maximizing ad life with monthly and weekly publications.

Additionally, we will develop a consistent reach and frequency throughout the year, targeting each specific customer segment within a five-mile radius, and new 'suburbanites,' who still appreciate in-town dining.

Promotional Campaign:

The best way to reach our potential customers is to develop an intense advertising campaign promoting our Dino’s Diner concept of "Spice of Life." In addition to standard advertising practices, we will gain considerable recognition through newspapers, newsletters and public announcements. Consumers will be encouraged to visit our website to be greeted with a flash media intro that highlights the restaurant, past happenings, upcoming attractions and our dynamic menu.

Our periodic customer surveys and weekly menu item sales evaluations will help us to understand what advertising is working and what is not; basically, who we are reaching. Our goal is to understand our customer, measure the success of our direct marketing and media activities, and redirect advertising as effectively as possible.

Publicity Strategy:

Dino’s Diner will focus on the following publicity strategies:

Develop a sustained public relations effort, with ongoing contact between key editors and top-level personnel at local dining publications.

Dino’s Diner

Develop a regular and consistent package update program for the major target media, keeping key editors abreast of all new promotions, and menu introductions.

Establish contact with editorial staff for the purpose of being included in entertainment "round-ups"--product comparisons in dining publications and the local papers.

Produce a complete Dino’s Diner Restaurant history and menu offering piece to be used as the primary public relations tool for all target media editorial contact. This will also be effective for inclusion in press kits.

Press Release/Grand Opening:

Dino’s Diner Restaurant will release a series of press releases on the Grand opening.

Editorial Visitation:

Leading up to the Grand Opening, and over the first 6 months of operations, we will invite the most influential reporters and editors from all local publications to Dino’s Diner Restaurant in order to evaluate our menu, service, and atmosphere.

Publicity Revenues:

We anticipate at least 10% of our annual sales will be generated directly from our publicity. A full media kit will be sent to all local publications, and releases on new menu items will be made monthly.

Community:

Dino’s Diner will look for key opportunities to pair with local community development organizations and radio stations to interface with our customers. We will continually look for local community programs in which we can participate, in order to better our community, and give something back.

4.4 Marketing Program

In line with our Marketing strategy, we will employ three different marketing tactics to increase customer awareness of Dino’s Diner: In-Restaurant Marketing, Public Relations Marketing, and Media Marketing. Our most important tactic will be word-of-mouth/in-restaurant marketing. This will be by far the cheapest and most effective of our marketing programs.

Word-of-mouth/In-Restaurant Marketing

Restaurant Night:

Every first Monday of the quarter, we will have a special evening for restaurant people. A perfect night for the local area's restaurant owners, chefs and staff to get together to discuss the market and food trends, and possible Co-op efforts to promote the Blue Area.

Dino’s DinerThis is not a conflict of interest; it is an effort to increase visibility and patronage across the Blue Area. We will also invite the Blue Area Alliance committee for their participation.

Wait Area Marketing:

Wait staff will service appetizer to customers waiting to be seated or on the wait list.

Live Entertainment parties Special Events Eid’s Special Ramadan’s Special Valentine's Day New Year's party

Public Relations Marketing

V.I.P. Party:

We will host a V.I.P. Dinner before the 'Grand Opening.' This will serve the dual purpose of training our staff and introducing ourselves to the community. The list of individuals we will invite comes from the Chamber of Commerce and Tourism. We want their full commitment to the restaurant to draw the tourist dollars.

Critics' Choice:

Prior to the Grand Opening there will be two preliminary parties catering to the Media and Critics community. We will encourage the media and restaurant critics to meet at the restaurant and review the decor, service and food. This will be a preliminary review, where we will consider constructive input to make minor revisions prior to the true Grand Opening. This initial review and input will give critics and media commenter a stake in Dino’s Diner success, through their contributions to the final design.

Brochures:

Make a brochure for the in-town hotels and business establishments to provide to their guests and staff, containing interior pictures of our restaurant, menus and prices.

Private Functions:

Target marketing to businesses for regular business lunch and dinner entertaining, and private functions.

Dino’s Diner4.5 Media Marketing:

Newspaper campaign:

A much targeted media campaign to obtain featured articles about the restaurant in their Living, Entertainment and Dining segments. Notices of all live entertainment segments and special features will be posted to local newspapers' calendar announcements.

Restaurant and Special Events Website:

We have contracted with local design teams to deliver a high-quality, navigable, constantly updated website.

Media Relations:

Several media relations teams will be utilized to market the Restaurant. Ad’s group and Midas are two media companies we will utilize for media relations. Both companies have an insightful presence and connection with our target market.

Billboard Advertisement:

One month prior to the opening, distinct billboard ads will advertise the launch of the Restaurant.

Inner & Outer City Marketing:

We will budget to attract customers from the suburbs.

5.0 Strategy and Implementation Summary

Our strategy is simple. We intend to succeed by giving people a combination of excellent and interesting food in an environment that appeals to a wide and varied group of successful adults.

Dino’s DinerWe will focus on establishing a strong identity in our community with a grand opening. Our main focus in marketing thereafter will be to increase customer awareness in the surrounding communities. We will direct all of our tactics and programs toward the goal of explaining who we are and what we do. We will keep our standards high and execute the concept flawlessly, so that word-of-mouth will be our main marketing force.

We will create an appealing and entertaining environment with unbeatable quality at an exceptional price. As an exciting and eclectic restaurant, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan.

All menu items are moderately priced for the area. While we are not striving to be the lowest-priced restaurant, we are aiming to offer exceptional food at reasonable prices for the average restaurant diner.

5.1 Competitive Edge

Dino’s Diner's competitive edges are:

1. The owners' thorough understandings of opening and running a restaurant 2. An extraordinary contemporary restaurant design 3. International menu with featured menu changes every 4 months 4. Unique, 3-Tiered spatial layout 5. Employee Training, Incentive and Retention program

5.1.1 Competitor Analysis

Below are excerpts from our competitive analysis study.

1. Cave (Direct Competitor):

This restaurant is a main competitor for Dino’s Diner, a casual dining restaurant that has evolved to be a great success story for the Blue Area district. This restaurant served to validate

1) The evolving need for after-hours dining

2) A place for relaxing and eating with friends

2. Envoy Continental (Indirect Competitor)

This restaurant has grown in popularity over the years, and has gained popularity as a destination restaurant that can cater to business professionals as well as the local

residents. The menu is somewhat formal for this market segment, but the juice corner and coffee attracts a good crowd. During this study it was evident that some Customers came exclusively to sit at the juice and coffee counter, without any intent of dining in the restaurant.

Dino’s DinerEnvoy Continental is more of a formal dining restaurant and meets a certain need within the community, but I don't see it as a direct competitor of Dino’s Diner. I do feel that it has some very special elements that have helped it succeed over the past years, which Dino’s Diner can benefit from.

Market Analysis Conclusion:

At the end of the day, everyone that sells prepared meals in this district is a Dino’s Diner competitor, because we all compete for the same home meal replacement rupees. However, there are two segments of the restaurant industry that are our main competition: the casual dining restaurant and the fine dining value restaurant.

So, if the food and service is better at a fine dining restaurant than a casual restaurant, but price has become a factor as a result of the economic turns, where is a customer more likely to go?

There is no absolute answer to the question, but the solution is to deliver the best food at the best price with the highest level of service in one establishment. This is the very definition of value and the concept at the heart of Dino’s Diner's business model.

5.2 Sales Strategy

Our strategy is simple: we intend to succeed by giving our customers a combination of delicious and interesting food in an appealing environment, with excellent customer service, whether on their first visit or their hundredth.

Our marketing strategies are designed to get critics and initial customers into our doors. Our sales strategies must take the next step and encourage customers to become repeat customers, and to tell all their friends and acquaintances about the great experiences they just had at Dino’s Diner.

New restaurants often make one of two mistakes: they are unprepared or under prepared for opening, and initial poor service, speed, or quality discourages customers from returning, or they spend all of their efforts at opening, and are unable to maintain the initial quality customers expect on return visits, decreasing word of mouth advertising and leading to poor revenues.

Dino’s Diner sales strategy requires consistently high quality food, service, speed, and atmosphere. We can accomplish this by:

Hiring employees who genuinely enjoy their jobs and appreciate Dino’s Diner unique offerings

Continually assessing the quality of all aspects mentioned above, and immediately addressing any problems

Interacting with our customers personally, so they know that their feedback goes directly to the owners

Evaluating food choices for popularity, and keeping favorites on the menu as we rotate seasonal foods and specials

Dino’s Diner6.0 Web Plan Summary

Dino’s Diner will have a dedicated website. It will be the virtual business card and portfolio for the company, simple, modern and well designed. Our site will offer our menus, prices, reviews and happenings at Dino’s Diner. We will also have a monthly Review about what did happen at Dino’s Diner to get new customers interested in our restaurant.

Our website will be used to try out new offers, starting with an on-line order feature for the Sunday Market Brunch, and expanding if the concept gains favor with our customers. A customer will be able to order a selection for pickup using a credit card. Selections will be based on our pre-packaged meals available during the Sunday Market Brunch. This is also a potential for customers needing catering.

The website will include email capabilities and online reservations and special events scheduling.

7.0 Management Summary

The strength of our management staff positions us for success. We have assembled a team that embraces different disciplines, accomplished professionals with expertise in all areas of the business, including marketing and restaurant management.

The owners, Hassan Razz(Managing Partner) and Abdul Samad (Executive Chef), have considerable experience in the restaurant industry. Day to day operational management will be conducted by Hassan and Samad, as hands on managers.

Umair Hassan: Managing Partner (Operations, Marketing, Financial and Business Development)

Mr. Hassan brings to Dino’s Diner an accomplished restaurant background, exceptional business acumen, and a lifetime passion for the restaurant experience. Umair has over 17 years of business management in the Information Technology industry. Like IT, successful ventures in the restaurant industry must balance capitalizing on new trends with continual quality assessment. Hassan's understanding of day-to-day cash flow planning and staff management will be critical to Dino’s Diner's financial success.

Mr. Umair has a background in International Business Management and Business Start-ups, and is certified in Restaurant and Hotel Management. As co-owner, Hassan Raza responsible for overall direction and operational management. Mr. Hassan is a strong

business leader responsible for strategic planning and continued growth of restaurant services and business development. In addition, Umair will be the management lead for all public relations, financial and investor services.

Degrees, Certifications, and Professional Affiliations:

← BBA(in Process)

Dino’s DinerAbdul Samad: Managing Partner (Executive Chef and Restaurant Operations)

Mr. Samad is an accomplished restaurateur. Mr. Samad is responsible for the concept and the daily operations management.

Mr. Samad contributes the experience of his successes, and is charged with leading the Restaurant Operations, Staff Selection, Menu Definition and Training initiatives for Dino’s Diner.

Managing Partner Responsibilities

In addition to the management of day to day operations, both managers, as principals within the company, will oversee menu development, purchasing, portioning, pricing and inventory control, including approval of all financial obligations of the company. They will plan, develop, and establish customer service policies and objectives, and write, explain, and enforce an employee's manual for all employee-related policies.

Responsibilities for hiring and firing employees lie solely with the two operations managers, and any decisions in these areas will be made jointly.

They will:

Manage working capital, including inventory and cash. Perform financial forecasting, including capital budgeting, cash flow analysis,

pro forma financial statements, and external financing requirements. Prepare financial analyses of operations for guiding management, including

reports which outline the company's income, expenses, and earnings.

7.1 Personnel Plan

Human Resource Requirement

Type NumberMonthly Salary

Total Salary

Owner 2 - -

Dino’s Diner

Kitchen Supervisor 2 6,000 12,000

Shift Supervisor 3 8,000 24,000

Cook 4 4,000 16,000

Servers 6 3,000 18,000

Cashier 1 6,000 6,000

Dishwasher 2 2,500 5,000

Cleaner 1 2,500 2,500

Guard (12 Hour) 1 6,000 6,000

Total 21 38,000 89,500

8.0 Financial Plan

Dino’s Diner financial model is based on a business concept to "Plan for the Worst, but Manage for the Best." We have approached the financial plan as follows:

Revenue & Cost Projections

Dino’s DinerThe Sales are expected to increase by 15% every year while the cost of raw materials is assumed to increase by 10%. The 15% annual increase in revenue is expected to result from a part increase in population increase and part increase in product price. The prices used to calculate the gross revenue earned are based on the billing rate at which we will charge the customer. The prices are also inclusive of the General Sales Tax.

Rent Cost

The rent for the assumed premises will be Rs. 100,000/- per month. It is assumed that Rs.1,200,000 will be given in advance before possession of premises. This will include 6 months deposit and 6 month advance rent. The rent would be payable on a monthly basisand is expected to increase at the rate of 10% per annum for the projected period.

Utilities Requirement

The following table presents the assumed breakup of utilities on a monthly basis:

As depicted above the most of the food machines require considerable gas during the preparation process. The preheating procedure of the equipment before commencement of preparation also consumes considerable gas. It is assumed that utilities expenses will be increased by 10% every year.

Depreciation on Building & Equipment

Depreciation on Shop, Equipment, Machinery and Fixtures is assumed to be at the rate of10% per annum based on the diminishing balance method for the projected period.

Working Capital & Pre Operating Costs

It is estimated that an additional amount of approximately Rs. 1,036,000 will be requiredas cash in hand to meet the working capital requirements / contingency cash for the initial

stages. The requirement is based on the rent, utilities and salaries expenses for at least four months and 3 days raw material inventory. The following table gives the break up.

Utility Monthly Charges (Rs.)Electricity 25,000Water 2,000Gas 15,000Telephone 10,000Total 52,000

Dino’s Diner

The provision for pre operating costs is assumed

to be Rs. 50,000 which will be amortized equally over a 5

year period.

Financial Charges

It is assumed that long-term financing for 5 years will be obtained in order to finance thefast food setup which would mainly include construction & décor of Building, Purchase of machinery & equipment, purchase of inventory etc. This facility would be required at arate of 15% (including 1% insurance premium) per annum with 60 monthly installmentsover a period of five years. The installments are assumed to be paid at the end of every month.

8.1 Income Statement:

Item 4 Months Cost (Rs.)Utilities 208,000Salaries 358,000Raw Material Inventory 70,000Rent 400,000Total 1,036,000

Dino’s Diner

Dino's Diner

Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 10,015,200 11,517,480 13,245,102 15,231,867 17,516,647

Raw Material 4,910,141 5,401,155 5,914,270 6,535,397 7,188,937

Salaries 1,074,000 1,181,400 1,299,540 1,429,494 1,572,443

Utility 624,000 686,400 755,040 830,544 830,544

Cost of Goods Sold 6,608,141 7,268,955 7,995,850 8,795,435 8,795,435

Gross Profit 3,407,059 4,248,525 5,249,252 6,436,432 7,841,668

Administration & Selling Exp.

Rent Expenses 1,200,000 1,320,000 1,452,000 1,597,200 1,756,920

Office & Miscellaneous Exp. 72,000 79,200 87,120 95,832 105,415

Amortization Exp. 10,000 10,000 10,000 10,000 10,000

Depreciation Exp. 281,625 253,463 228,116 205,305 184,774

Maintenance Exp. 21,758 19,582 17,624 15,861 14,275

Operating Income 1,821,677 2,566,281 3,454,392 4,512,234 5,770,284

Financial Charges (15% per annum) 357,889 298,344 229,228 149,001 55,878

Profit Before Tax 1,463,788 2,267,936 3,225,164 4,363,233 5,714,406

Tax 365,947 566,984 806,291 1,090,808 1,428,602

Net Profit 1,097,841 1,700,952 2,418,873 3,272,425 4,285,805

8.2 Cash Flow Statement:

Dino’s Diner

Dino's Diner

Cash Flow Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flow From Operating Activity

Net Profit 1,097,841 1,700,952 2,418,873 3,272,425 4,285,805

Depreciation Exp. 281,625 253,463 228,116 205,305 184,774

Amortization Exp. 10,000 10,000 10,000 10,000 10,000

Net Cash Flow From Operating Activity 1,389,466 1,964,415 2,656,989 3,487,729, 4,480,579

Cash Flow From Financing Activity

Payment of Long Term Debts (370,404) (429,949) (499,065) (579,292) (672,415)

Net Cash Flow From Financing Activity (370,404) (429,949) (499,065) (579,292) (672,415)

Cash Flow From Investing Activity

Net Cash Flow From Investing Activity 0 0 0 0 0

Net Cash Flow 1,019,062 1,534,466 2,157,924 2,908,437 3,808,164

8.3 Balance Sheet:

Dino’s Diner

Dino's Diner

Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current assets

Cash & Bank 1,036,000 2,055,062 3,589,528 5,747,452 12,464,053

Prepaid Rent 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000

Total Current Assets 2,236,000 3,255,062 4,789,528 6,947,452 13,664,053

Fixed Assets

Machinery 967,000 870,300 783,270 634,449 571,004

Construction 1,307,000 1,176,300 1,058,670 857,523 771,770

Furniture & Fixture 542,250 488,025 439,223 355,770 320,193

Total Fixed Assets 2,816,250 2,534,625 1,181,163 1,847,742 1,662,967

Preliminary Expenses 50,000 40,000 30,000 10,000 -

Total Assets 5,102,250 5,829,687 7,100,690 11,713,631 15,327,020

Owner's Equity 2,551,125 3,648,966 5,349,918 11,041,216 15,327,020

Long Term Liability 2,551,125 2,180,721 1,750,772 672,415 -

Total Equity & Liability 5,102,250 5,829,687 7,100,690 11,713,631 15,327,020

8.4 Business Ratios

Dino’s Diner

Ratios

Gross Profit Ratio 34.01 % 36.88 % 39.63 % 42.25 % 44.76 %

Net Profit Ratio 10.96 % 14.76 % 18.26 % 21.48 % 24.46 %

Assets Turnover 1.96 1.97 1.86 1.30 1.142

Debt To Asset 0.5 0.37 0.24 0.05 0

Debt To Equity 1 0.59 0.32 0.06 0

8.5 Exit Strategy

We at Dino’s Diner are committed to our concept and its viability. We step into this venture with confidence and the success of our respective prior business efforts. No one attempt a business anticipating failure, however sometimes ventures does not fulfill their promise.

In the event that our venture cannot achieve profitability and retire the load, we will first attempt to sell the operation and use the proceeds to clear all outstanding balances. If we are unable to sell the operation for sufficient proceeds we will forced to default whereby the Bank loan will be in senior standing. Any further outstanding balances will be borne by the owners on equal percentage.