Jamaica Restaurant: Taste of Jamaica in the City!

Jamaica restaurant is a high scale Jamaica oriented restaurant in the heart of the city. The estuarian serves mainly Jamaican cuisine including curry goat, fried dumplings, ackee and saltfish, fruit beverages, and Jamaican rum. It is dubbed the Jamaican restaurant because the restaurant is mainly targeting Jamaicans in America interested in having a taste of Jamaica in the city. The restaurant will be started as a partnership between a Jamaican chef and three venture capitalists who will prove the capital for 50% ownership. The restaurant will be managed by Tom, the Jamaican chef who will also oversee all the operations. The Jamaican restaurant will employ 60 people one a full-time basis and 10 people on a part-time basis. The Jamaican restaurant will be located along the street road, on the ground floor of the street plaza.

While the Jamaican restaurant's main strength includes the celebrated Jamaican chef and the fact that it will focus on thiamin cuisine, the restaurant also located at a strategic location at the airport. The Jamaican restaurant will also employ a competent and experienced graduate chef with years of experience in addition to other staff who will be recruited through executive search and recruiting firms. The main weaknesses are that the hotel will be newly established and will take time to break even and start making profits. The opportunities in the market include many underserved Jamaican clients increasing demand from the locals who are interested in trying the Jamaican cuisine as well as large corporate bodies that will use the venue for their conferences. The threats including mushrooming Caribbean cuisine outlets that are emerging in the market. For the company, the community will benefit from corporate social responsibility initiatives. The company has planned several initiatives including developing social amenities, feeding the less privileged din then society as well as school bursaries for the bright but needy students. With the increasing globalization, the company aims to take advantage of the increasing connectivity to the market both locally and abroad. The company is eying the global market for its exit strategies as the company will expand to other international markets especially look for booths at the airport to serve the passengers as they wait for their flight.

Part 2 - Management Plan

SWOT Analysis

Analysis of Strengths

The strength of the restaurant depends on what the restaurant can deliver best. In this case, preparing and serving tasty Jamaican cuisine, exceptional services to the customers. The company also has a competitive price structure which includes offering a lower price compare to other similar restaurants. Other strengths include the company financial strength to roll out new products, open branches, and give discounts

Analysis of Weaknesses

These are factors hindering the smooth running of the restaurant and it gives an idea of things to improve in the restaurant, for instance, the staff will be new people in the region and will take time to acclimatize with the region. It will also make the company a lot of time to create loyal customers who will be the company sole source of revenue.

Analysis of Opportunities

The company will be expanding its service range to provide different types of food and beverages. Taking advantage of trends related to eating and offer innovative menus

Analysis of Threat

These are factors affecting the smooth running of the business for example unfavorable environment due to the economic slumps. Other threats include competition from other restaurants, unfavorable government policies.

Employee Management Plan Employees Job description Number Compensation

Manager

Hire, train staff, coordinate employee schedules, ensure the company complies with regulations, plan menu, control supply chain, budget, and execute the budget as well as address employees' issues. 1 $18.00 - $20.00 per hour

Chefs

The chefs are trained professional cook proficient in all aspects of food preparation especially the Jamaican cuisine 4 $8.00 - $11.00 per hour (plus tips)

Cooks

The most important staff in the restaurants as they determine the success of the restaurant. The cooks will design the menu and oversee operations in the kitchen. 10 $8.00 - $10.00 per hour

IT specialists Will oversee both electrical and information technology in the restaurant Dishwashers They ensure the cleanliness of the dishes in the restaurant 10 $7.25 - $8.75 per hour

Serving Staff

The servers are the people with whom the customers will have the most interaction, so they must make a favorable impression to keep customers coming back 20 $18.00 - $23.00 per hour

Hosting Staff

This normally depends on the size and style of the restaurant, the company may need someone to seat guests, take reservations, and sometimes act as cashier. 5 $7.25 - $9.00 per hour

Bus persons

Bus persons are responsible for setting up and clearing tables and filling water glasses after customers are seated. 5 $10.00 - $11.00 per hour

Finance and accounting manager Will oversee capital planning and execution 2 $15.00 - $20.00 per hour

Bartenders

The company has a small bar in the restaurant 4 $3.50 - $7.50 (plus tips)

Employee Motivation

It is important to motivate employees to boost their morale to perform their duties. The company will use different ways to motivate the employees including competitive compensation and benefits, financial rewards for achievements, tips, paid holidays, recognitions. The company will also create a friendly working environment because workers spend a lot of time in the facility working in their assigned tasks. Acknowledge employees' achievement employees to be identified with whatever they have done whether it was a work or personal achievement. Positive communication is the key management needs to hold a meeting to motivate workers and to encourage friendly competition.

Part 3 - Financial Plan

5-Year Budget Plan

FORECASTED REVENUE

Units sold annually Averageprice per unit Annual revenue per product

Waiter service 6000 200.00 1,200,000.00

Banquet service 4000 210.00 840,000.00

Buffet service 2100 180.00 378,000.00

Self-service 1000 120.00 120,000.00

TOTAL OF FORECASTED REVENUE 2,538,000.00

COST OF GOODS SOLD

Expected gross margin Annual cost of goods sold

Waiter service 30% 360,000.00

Banquet service 25% 210,000.00

Buffet service 25% 94,500.00

Self-service 30% 36,000.00

TOATL COST OF GOODS SOLD 700,500.00

ANNUAL MAINTENANCE, REPAIR, AND OVERHAUL

Factor (%) on capital equipment 12%

ASSET DEPRECIATION

Number of Years 5

TAX

Annual Tax Rate 16%

INFLATION

Annual Inflation Rate 2%

PRODUCT PRICE INCREASE

Annual Price Increase 2%

FUNDING

Loan Amount 600,000.00

Annual interest rate 5.00%

Term of Loan (months) 60

Monthly rate 0.41%

Payment 11,292.24

Total Amount Payable 677,534.34

Profit and Loss Projection

PROFIT AND LOSS ASSUMPTION

Year 1 Year 2 Year 3 Year 4 Year 5

Annual cumulative price (revenue) increase 0.00% 3.00% 3.50% 5.20% 6.50%

Annual cumulative inflation (expense) increase 0.00% 3.00% 4.00% 6.00% 7.00%

INCOME

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue

Waiter service 1,200,000.00 1,236,000.00 1,279,260.00 1,345,781.52 1,433,257.32

Banquet service 840,000.00 865,200.00 895,482.00 942,047.06 1,003,280.12

Buffet service 378,000.00 389,340.00 402,966.90 423,921.18 451,476.06

Self-service 120,000.00 123,600.00 127,926.00 134,578.15 143,325.73

Total revenue 2,538,000.00 2,614,140.00 2,705,634.90 2,846,327.91 3,031,339.23

Cost of Sales

Waiter service 360,000.00 370,800.00 385,632.00 408,769.92 437,383.81

Banquet service 210,000.00 216,300.00 224,952.00 238,449.12 255,140.56

Buffet service 94,500.00 97,335.00 101,228.40 107,302.10 114,813.25

Self-service 36,000.00 37,080.00 38,563.20 40,876.99 43,738.38

Cost of goods sold 700,500.00 721,515.00 750,375.60 795,398.14 851,076.01

Gross Profit 1,837,500.00 1,892,625.00 1,955,259.30 2,050,929.78 2,180,263.22

Non-Operation Income

Loss (gain) on sale of assets - - 1,000.00 - -

Other income (specify) - - - - -

Toatal Non-Operation Income - - 1,000.00 - -

TOTAL INCOME 1,837,500.00 1,892,625.00 1,956,259.30 2,050,929.78 2,180,263.22

EXPENSES

Operating expenses

Sales and marketing 12,000.00 12,360.00 12,854.40 13,625.66 14,579.46

Depreciation 4,000.00 6,180.00 6,240.00 6,360.00 6,420.00

Insurance 3,000.00 3,090.00 3,213.60 3,406.42 3,644.87

Payroll and Payroll Tax 12,000.00 12,360.00 12,854.40 13,625.66 14,579.46

Property taxes 3,000.00 3,090.00 3,213.60 3,406.42 3,644.87

Maintenance, repair, and overhaul 2,100.00 1,236.00 1,248.00 1,272.00 1,284.00

Utilities 6,000.00 6,180.00 6,427.20 6,812.83 7,289.73

Administrative fees 400.00 412.00 428.48 454.19 485.98

Interest expense on long-term debt 30,000.00 21,492.75 15,792.04 9,806.30 3,521.27

Other 1,300.00 1,339.00 1,392.56 1,476.11 1,579.44

Total operating expenses 73,800.00 67,739.75 63,664.28 60,245.59 57,029.07

Non-Recurring Expenses

Unexpected Expenses 200,000.00 150,000.00 120,000.00 100,000.00 80,000.00

Other expenses 1,000.00 2,000.00 2,000.00 4,000.00 6,000.00

Total Non-Recurring Expenses 201,000.00 152,000.00 122,000.00 104,000.00 86,000.00

TOTAL EXPENSES 274,800.00 219,739.75 185,664.28 164,245.59 143,029.07

TAXES

Income Tax 250,032.00 267,661.64 283,295.20 301,869.47 325,957.46

Other Tax (specify) - - - - -

TOTAL TAXES 250,032.00 267,661.64 283,295.20 301,869.47 325,957.46

NET PROFIT 1,312,668.00 1,405,223.61 1,487,299.82 1,584,814.72 1,711,276.69

Balance Sheet Projection

Current Assets Initial balance Year 1 Year 2 Year 3

Cash and short-term investments 50,000.00 1,400,000.00 2,599,900.00 3,000,000.00

Accounts receivable...