Liam Tayler Allyson Nash Lídia Mongay. Market Statistics The UK figure for people eating out of home (34%) By year 2025 50% of food consumption will be.

Liam TaylerAllyson NashLídia Mongay

Market Statistics

• The UK figure for people eating out of home (34%)

• By year 2025 50% of food consumption will be out of the home

• Eating out is in the fourth place of UK customer spending after food, housing and cars

Eating out is no longer just a treat or a luxury – it's a fact of modern life

Market segmentation

Professional (286,600)Residential (5,200)Tourist (5,000)Other (5,000)

Professional Segment•Male and female•Ages 25-55 (divisible into 2 main target groups)•Young professionals•Have attended college or graduate school•Eat out at least once a week•Yearly income between £25,000 and £100,000

Demographics

Needs Identified

• Possible Scenarios

– For the Bar:– Scenario 1: Quick lunch/snack business drink with for

discussion with colleague/client.– Scenario 2: After work drink with tapas (formal).– Scenario 3: Recreational drink with tapas (informal).

– For the Restaurant:– Scenario 1: Working lunch/dinner with colleagues/client

(formal).– Scenario 2: Recreational lunch/dinner (informal).

General Concept

• Unique Spanish environment where the local population of The City can relax and enjoy Spanish montaditos and culture.

• Spanish style montaditos bar with food lining the bar.

• Restaurant offering high quality Spanish food and tapas.

• The payment process for the bar is going to be based on the number of ‘palillos’ the client has collected.

• We aim at excellence and exceeding the expectations of our customers.

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

• New Concept• Existing know how• MBA experience• Suppliers in Spain

• Limited budget to develop brand awareness

• New concept in the market• Start-up• Short term 'fashionable'

foreign food trend

• UK people eating out will grow from 34 % 2002 to 50 % in 2025

• Global trend of healthy and natural food

• High expenditure on drink and food

• Cultural differences in eating and drinking habits

• Fashion driven market• Low entry barriers

Competition

Development

Management

Menu

Price

Quality

Concept and

Market

AtmosphereLocation

Service

Food

Product & PriceProduct

Spanish based drinks:– Wine, Beers, Coffee.

Bar Food:

– Tapas in a 'montaditos' form although assorted traditional tapas will also be provided.

Restaurant Food:– Delicious traditional Spanish cuisine (main meals,

montaditos and tapas).PriceThe pricing policy finds a balance between the customer's perception of value and a reasonable contribution to profit.

•Cost-Based pricing: •Competitive pricing•Contribution based pricing

Place & Promotion

• Place– Defined by the availability of rentable spaces, in

accordance with our target market.

• Promotional Objectives– Increase consumer awareness of the restaurant– Improve consumer perception of the restaurant– Entice 1st time buyers to try the restaurant

• Promotional Mix– External promotion

• magazines, emails, flyers, posters and tasters.– Internal promotion

• 'on the house meal'

Layout

Total: 115 sqm

Restaurant: 44 sqm36 seats18 tables for 2

Kitchen: 30 sqm

Bar: 42 sqm10 m counter10 stools30 ps

Kitchen layout

Kitchen Equipment

• Storage equipment

• Fabrication and preparation equipment

• Preparation and processing equipment

• Assembly, holding and serving equipment

• Cleaning and sanitation equipment

Process map

Critical processes

Key processesFood preparationOrder processingService protocol

Stock control

Strategic processesQuality control

Customer satisfactionEmployee selectionRaw material supply

Scrap policy

Support processesTraining

CommunicationMaintenance

IT

Capacity-demand

Capacity 2004

Weekday

• 760 montaditos • 120 meals

Saturdays

• 250 montaditos • 80 meals

Expected Capacity

-20%

20%

60%

100%

2004 2005 2006 2007 2008

Years%

sales increase Minimum Capacity

Maximum Capacity

Human Resources

1 manager

1 chef 1 head waiter 1 cleaner

2 kitchen hand 5 waiters 4 bartenders1 restaurant/bar

hand

Job category Salary (£)Manager 2.500Chef 2.000Kitchen hand 500Head Waiter 800Waiter 650Bar tender 650Bar/restaurant hand 450Cleaner 450

Total£13,050

Action plan

Financial Plan

Total investment of £150,000:

• Shareholders equity: £ 30,000

• Shareholders debt: £ 15,000

• Working capital loan of £ 36,000

• Fixed asset leasing £ 75,000

Recouped in 11 months

ROA of 103%

ROE of 131%

Sales ForecastProducts

Sales Price

Montaditos 1Starter 4.5Restaurant dish 1 8.3Restaurant dish 2 15.5wine (house wine) 5Beer 2.5Coffe 1.5

Standard menu constructed using market research from different restaurants of the City (Spanish restaurants and Tapas Bars).

1

Optimal scenario. •opening hours•average spending •average turnaround

2 Average spending was calculated simulating “typical” consumption patterns for each of the different opening hours

3

Optimal Scenario: 100% sales

Sensitivity AnalysisFirst Year Sales Forecast

020,00040,00060,00080,000

100,000120,000140,000160,000

Jan

ua

ry

Fe

bru

ary

Ma

rch

Ap

ril

Ma

y

Jun

e

July

Au

gu

st

Se

pte

mb

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Oct

ob

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No

vem

be

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De

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be

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Worst case Scenario Expected Scenario Best case Scenario

Growth Projections

2004 2005 2006 2007 2008Sales I ncrease 10% 8% 5% 5%Minimum 20% 30% 38% 43% 48%Maximum 52% 62% 70% 75% 80%

Sales Projections Next Five Years

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2004 2005 2006 2007 2008

Cost Structure

Price Setting

•A 300% mark-up over variable and later cross checked with the competition pricing structure to adjust Montaditos prices competitively.

32% of the total costs are variable raw materials

Fixed costs include:• Labour• Utilities,• Rent, among others

Break Even Point

Break Even Point

0

20000

40000

60000

80000

100000

0 15000 30000 45000 60000 75000

Sales Fixed Variable Total cost

Break Even Point: £ 30,000 a month

Balance Sheet

16%

25% Liabilities

Current Assets

75% 85%

Fixed Assets Equity

The provisional balance for the end of the first year leaves the company

• 85% equity financed• In a risk averse position • Possibility of going into

debt in the following years for expansion

Provisional Balance as of Dec 2004

www.montaditos.co.uk