Nukarn Suwatikul Amit Shah Don Ta Lloyd Wellington Hazem Yassin Let’s Make a Deal! Brought to you by: “Modesty, casualness, and an air of nonchalance are.

Nukarn Suwatikul

Amit Shah

Don Ta

Lloyd Wellington

Hazem Yassin

Let’s Make a Deal!

Brought to you by:

“Modesty, casualness, and an airof nonchalance are characteristic attitudes in Australian business culture.”

Outline Mission & Overview of the Wrap Core Competencies Country Profile Economic Summary Australia-US Comparison Investment Incentives Business Set-Up Checklist Australian Food Industry

Characteristics Marketing Strategy Financial Strategy

MissionThe company's goal is that of financial

success through a multi-faceted approach. We will meet this goal while

trying to consider:

1) the effect of our products on the health and well being of our customers (and our staff),

2) the impact that our business practices and choices will have on the environment, and

3) the high quality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors.

Awareness of all these factors and the responsible actions that result

will give our efforts a sense of purpose and meaning beyond our basic

financial goals.

Overview In 1996, fast, fresh, healthy food was difficult

to find in Boston.

These wildly popular food concepts existed en masse in California, but were far and few between in Massachusetts and other parts of the country.

The Wrap was launched as a restaurant that featured wraps, burritos, smoothies … in a friendly, casual environment.

Building and running the first location helped the management team identify the competencies that are now at the core of The Wrap.

Success required three key ingredients: always being fresh, friendly, and fast.

Core Competencies A unique recipe for success in hand …

Bringing the healthy concept to more Bostonians.

Penetrating the markets of and eventually acquiring competing businesses.

Fast menu that focused on simplicity, mouth-watering recipes, and custom-ordering.

Keeping the focus on our customers - as long as our customers continue to give thumbs up, The Wrap will slowly expand to communities that value its food and its services, as well as its desire to give back to its neighbors.

Famous

"Top 40 Bangs for the Buck"

--Zagat 2003

Burritos Nutritional Fact Sheet

New Location

P. Sherman 42 Wallaby Way Sydney

Prime Minister: John Howard.

Independence: January 1, 1901

Population: 19,731,984

Total area : 7,687 Sq. Km

Major Cities: Sydney, Melbourne, Canberra (Capital), Brisbane, Perth, Adelaide

Languages: English, native languages

Ethnic Groups: Caucasian (92%), Asian (7%), aboriginal and other (1%)

Religions: Anglican (26%), Catholic (26%), other Christian (24%), non-Christian (11%)

Country Profile

Economic Summary Currency: Australian Dollar ($A)

Market Exchange Rate: US $1=$A1.34

GDP per Capita US$: 30, 695

GDP Growth Rate: 3.7%

Inflation Rate (Consumer prices): 3.1%

Unemployment Rate: 5.7%

Major Trading Partners: Japan, other Far East, European Union, United States

Major Exports: crude materials, food & live animals, mineral fuels & lubricants

Major Imports: machinery & transport equipment, manufactured goods, & chemicals

Economic/Industrial Trends Traditional strength of manufacturing employment is

declining, however it remains strong.

Key employment areas - wholesale trade, finance, business services, health insurance, property and community services.

Growth areas – retail trade, construction, restaurants, transport, storage, cultural and recreational services

Employment Trends

Australia-US ComparisonAustralia US

Total area: 7687 Sq. Km 9629 Sq. Km Population in millions: 20.1 293 GDP per Capita US$: 30,695 39,862 GDP Growth: 3.7 % 3.2 % Unemployment Rate: 5.7% 5.4 % Corporate Income tax: 30% 40% Highest Personal Income tax: 47% 35% Quality of Life: 9.35 8.11

Primary Industries

Financial Services

Transportation

Technology

Healthcare

Real Estate

Agriculture

FoodForestSea foodWine Industry

Age Groups

Population Density

Investment Incentives

Australia gives investors a competitive and quality choice in the Asia-Pacific region

Average business costs in Australia. is around 8 to 9 per cent below those in the US.

Australia is ranked the second most cost competitive country for business operations in the industrialized world.

Cheap real estate: Sydney is approx. 66% less thanin London, 46% less than in Tokyo, & 11% less than in New York.

More Incentives Australia's transport and logistics systems

provide a mature, efficient and cost effective means of delivering products and services.

Cost competitiveness coupled with a superior workforce and a low overall cost of living implies that the commercial advantages of doing business in Australia are excellent.

Australia's overall tax burden as a share of GDP is significantly lower than its western competitors.

Level of corruption is among the lowest of OECD (Organization for Economic Cooperation and Development) member nations.

Human Resource Business Documentation Budgeting & Finance Control Marketing & Advertising

Target Industry Characteristics Legal aspects Registration & Insurance

Business Set-Up Checklist

Feasibility Study Location & Premises Licenses and Permits Business Planning Finance/Funding Business Structure Taxes

Australian Cuisine At a Glance

Traditionally-based on English cuisine e.g., roasts, grilled chops, other forms of meat, accompanied with vegetables (mashed potatoes, beans, peas, and carrots)

Currently– very diverse, reflective of its multi-cultural influences. South East Asian, Greek, Lebanese, and Italian foods are very common.

Australian Government, through health initiatives and cultural marketing efforts, is promoting a push towards healthy food choices.

Australia’s Fast-Food Industry

Australian fast-food market was US$6.2billion in 2003

Market is an Oligopoly, with independent outlets e.g., McDonald’s, Burgers Burritos Nachos and Tacos (BBNT), Subway, KFC, Pizza Hut, Burger King (a.k.a. Hungry Jack’s) accounting for 70.5% of total number of fast food outlets

McDonald’s is the market leader in Australia, with a market share of 34.7%. This figure is a decrease from its 2002 market share.

Australia’s Fast-Food Industry – Cont.

Fast food market in Australia is predicted to grow about 17% to $7.25 billion by 2008.

Takeaway foods favorites in Australia are: meat pie fish & chips sausage rolls

Marketing Strategy “Fresh-Friendly-Fast”

Fresh – fresh ingredients make a tasty product.

Friendly- friendly atmosphere suits our customer base and our work culture.

Fast- fast service to maximize our clients’ lunch and relaxation time.

But Also “Healthy-Reasonable”

Healthy- we serve fast, healthy food to fit the lifestyles of our customers.

Price- quality offerings at reasonable prices has and will enable us to increase our market share.

Marketing Strategy

Our Customers…

Professionals and young adults – our stores are typically found close to business districts and universities.

Everyone that shares our ideology of a tasty, healthy meal at an affordable price.

Marketing Strategy

Promotions and Advertising Strategy

Our theme is : “Fresh-Friendly-Fast”

Primary medium for advertisement will be the radio. Radio spot and jingle will create brand recognition.

Special promotions will be advertised in newspapers. We will also do flyers and coupons periodically.

Frequent customer reward card.

We will also sponsor health events.

Setup Costs of a Typical Deli Franchise Investment required: $100,000-$200,000

Includes $60,000-$80,000 towards furniture/fixtures

Initial Franchise Fee: $10,000-$25,000

Royalty Fees: 6-8%

Advertising Fund: 3.5%-4.5%

6-8 employees

2-4 weeks of management training

Franchise Costs in Australia Investment Required: $125,000

$80,000 in Equipment, Furniture & Fixtures

Initial Franchise Fee: $15,000

Royalty Fees: 6%

Advertising Fund: 4%

4 weeks of management training

Breakdown of Initial InvestmentFranchise Fee $15,000

Equipment, Plumbing & Smallwares $30,000

Millwork, Fixtures/ Signage & Graphics $30,000

Leasehold Improvements $20,000

Start-up Supplies & Inventory $10,000

Training $1,000

Opening Advertising $2,000

Other Prepaid Expenses $2,500

Legal & Accounting Costs $500

Insurance & Permits $1,500

Miscellaneous Expenses $1,400

Additional Funds - 3 months $20,000

First Month Rent & Deposit $6,100

Total Investment Cost $140,000

Industry Derived Values Broken down from annual sales

25% target profit Ranges from 20-30%

75% expenses 25% dedicated to food and paper costs Range from 70-80%

The value of the business is typically sold 3-4 times the annual profit

Expect positive return on investment after 4-5 years

Australia Investment Strategy

1. Use current retained earnings of $400,000 to penetrate the growing health conscious Australian fast food market

2. Establish one store in each of the largest two cities: Sydney and Melbourne

3. Aggressively develop the business and create franchising opportunities

Australia Investment Strategy

4. Franchise at a pace of two locations annually

5. Sell the Melbourne store after the 5th year

6. Maintain the Sydney operation as a franchisor-owned location where management training and franchisee consulting takes place

7. By the end of the 10th year, comprise of at least 20 franchisee-run stores while achieving a positive present value return and to further expose as an expanding international franchise opportunity

Asking Price: $52,238 US

Annual Sales of $111,940 US

Low start-up capital required as the majority of the furniture/fixtures can be carried over

Situated in the heart of the city’s business and residential population – considered one of the best locations in the Melbourne Central Business District

New local university opening soon

High visibility in an upscale shopping plaza

Annual lease is US$25,224 for 1,200 sq ft

Total acquisition and transition start-up costs is less than US$100,000

1) Melbourne Acquisition Target

2) Establish in the Prime Darling Harbor

area in Sydney Darling Harbor

Houses Sydney's convention and exhibitioncenters, as well as several major tourist attractions, shops, restaurants and cafes

One of the world’s leading waterfront leisure and entertainment destinations.

Attractions include the Imax Theatre, Sydney Aquarium, Chinese Garden of Friendship, Australian National Maritime Museum, Powerhouse Museum, Harbourside Shopping Centre and Cockle Bay Wharf.

King Street Wharf

The most recent prestigious waterfront office location overlooks the Harbor

The location will be larger than normal to accommodate itself as the management training and corporate store

Annual lease is $100,000 for 2,980 sq ft 1,635 for restaurant and 1,345 for office

Total investment costs at $250,000

2) Establish in the Prime Darling Harbor

area in Sydney

Tax methods

Companies are taxed at a straight 30% rather than at a marginal tax rate

Depreciation For each capital cost worth under

$1,000, depreciation is calculated at 37.5% of the annual value until it is fully depreciated

Items over $1,000 use 15% the first year and 30% annually thereafter

Capital gains tax is not a separate tax, but a component of income tax

10 year Business Plan - Assumptions Tax rate at 30%

Depreciation at 37.5% No capital gains tax (rolled into income) Annual Escalators

Sales Revenue and Royalty Income: 3% yrs. 2-3 4% yrs. 4-5 5% yrs. 6-10

Expenses: 4% yrs 2-5

2.8% yrs. 6-10 (inflation rate and max operation efficiency)

Discount rate at 11%, with 10% and 12% as alternatives

10 year Business Plan - Financials $400,000 initial investment

$350,000 actual investment cost $50,000 in reserves for unexpected costs

Achieve a positive return at the end of the 5th year when the Melbourne restaurant is sold for approximately $150,000.

Projected annual royalty income of $0.5 million by the 10th year, assuming two franchises are established annually.

Present Value and Rate of Return 10 year Net Present Values

range from $800,000-$1,300,000,using 10-12% discount rates.

Internal Rates of Return range from 33%-34% after taxes.

As evidenced by the projected return with a conservative 10 year forecast, this project is guaranteed to be a market success for the expanding health conscious sector in Australia and

Project will open the doors for future development in Asia and Europe.