3 1 2 Mission example essay topic

Company Name Gilligans Bar and Grille Business Form Partnership Address 000 North Reading Rd Adamstown, PA 17569 Contact Person Sandra Nash Telephone 717-336-7491 Hours of operation Sunday - Thursday 11: 00 am - 12: 00 am Friday - Saturday 11: 00 am - 1: 00 am Days open 7 days Closed on Thanksgiving and Christmas Opening date November 27, 2003 Type of Restaurant Full Service Gilligans Table of Contents 1.0 Executive Summary 1.1 Objectives... 3 1.2 Mission... 3 1.3 Keys to Success... 3 1.4 Start-up Cap tial... 3-5 2.0 Description of the Business 2.1 Business Description... 6 2.2 Mission Statement...

6 2.3 Development & Status... 6 2.4 Hours of Operation... 6 2.5 Future Plans... 6-7 2.6 Product / Service... 7 2.7 Location... 7-8 3.0 The Marketing Plan 3.1 Market Analysis...

8 3.2 Target Market... 8 3.3 Competitor Analysis... 11 3.4 Issues Analysis... 11-13 3.5 Marketing Objectives... 13 3.6 Pricing...

13-14 3.7 Promotion Plan... 14 3.8 Sales And Distribution... 14 3.9 Sales Forecast... 14-15 3.10 Action Programs... 15 4.0 The Management Plan 4.1 Key Employees... 16 4.2 Compensation & Incentives...

16 4.3 Consultants & Professional Support Resources... 16 4.4 Management Structure & Style... 16 4.5 Personnel Plan... 16-18 5.0 The Financial Plan 5.1 Important Assumptions... 18 5.2 Break-Even Analysis... 18 5.3 Projected Profit & Loss Statement...

19 5.4 Projected Cash Flow... 20 5.5 Projected Balance Sheet... 21 5.6 Business Ratios... 22 Appendix Appendix A-Restaurant Design... 23 Appendix B-1 -Promotional Plan... 24 Appendix B-2 -Marketing Budget...

25 Appendix B-3 -Actions Programs... 28 Appendix C-1 -Financial Summary... 29 Appendix C-2 - Avg Check Calculation... 30-31 Appendix C-3 -Statement of Income... 32 Appendix C-4 - Depreciation Schedule... 33 Appendix C-5 - Loan Calculation...

34-35 Appendix C-6 -Projected Profit and Loss Year 1... 36 Appendix C-7 -Projected Cash Flow Year 1... 37 Appendix D-1 -Drink Menu... 38-43 Appendix D-2 -Food Menu...

44-55 1.0 THE EXECUTIVE SUMMARY Gilligans will be a single unit, medium size, full-service restaurant that will offer a menu covering a wide variety of food and beverages. Our target market will include residents and tourists of Lancaster County. Adamstown, Pennsylvania is a prime location for our restaurant due to the lack of competition and the frequency of tourists. Gilligans will be managed and owned by a partnership of four executives in the food service industry, each owning 25%. Together the team has a combined experience of 64 years.

The combined experience offers expertise in all areas of restaurant operations. Gilligans plans to achieve sales of $1,735,793.95 in the first year of operations. From that point we plan to increase sales each year at the rate the industry is increasing. For 2003 that increase is projected to be 4.5 percent. As the restaurant grows, Gilligans has future plans to expand its operations into other communities within Lancaster County. The key to success for Gilligans will be the ability to entice customers to visit our restaurant.

This will be accomplished through a promotional campaign and word-of-mouth. A professional and knowledgeable staff will be essential to the serving of our product. 1.1 Objectives The objectives for Gilligans are: 1. To design a restaurant that will go beyond anyone's expectations. 2.

To carefully select and train a professional and knowledgeable staff of 100 employees. 3. To provide quality homemade products. 4.

To reach target sales and increase each year there after. 5. To open a new restaurant in another community within Lancaster County in three to five years. 6. To build a reputation for a quality product with quality service in Lancaster County. 7.

To set the standards for the food service industry within Lancaster County. 8. Increase the target market by offering something for every budget. 1.2 Mission "We begin with a GOOD PRODUCT served in a GOOD PACKAGE at the RIGHT TIME and PROPERLY PRICED". 1.3 Keys to Success The keys to success in this business are: 1. Marketing - Our competitors lack the initiative to sustain an active promotional campaign.

Gilligans will promote and advertise extensively to create a large customer base and extend our market. 2. Product Quality - Gilligans will offer 150 menu items made from scratch daily. Our products will be served by professional waitpersons. 3. Cost Control - Actively keeping food and liquor, and labor costs under control.

1.4 Start-up Capital. The following tables summarize the capital needed for this project. Sources of Capital & Debt Service Gilligans Bar & Grille 11/27/2003 Total start-up capital $1,100,000 Loans & notes $100,000 Stock sales Partnerships $1,000,000 Loans & notes Amount Rate Term Source #1 $100,000 #2 #3 #4 #5 Total $100,000 Stock Total Shares Outstanding Shares Price per Share Shareholders Amount paid in Shares % #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 Total Dividend Schedule Partnership Information Number of partners 4 Amount paid in by each partner 250,000 Total capital 1,000,000 Percentage of profits for general partner 100 Interest on principal amounts 5.00% Cumulative? N Total yearly interest 50,000 Use of Funding & Start-up Costs Summary Gilligans Bar & Grille 11/27/2003 Total start-up capital $1,100,000.00 Amount Expense Depreciation Amortization Amort.

Lshld. Lshld. Balance Sheet $1,100,000 2.0 DESCRIPTION OF THE BUSINESS 2.1 Business Description. Gilligans Bar & Grille will be a single unit, medium size, full-service restaurant that will offer a menu covering a wide variety of food and beverages for the lunch and dinner hours. In order to operate Gilligans will obtain a business license and a liquor license from the state of Pennsylvania. 2.2 Mission Statement.

The company's mission statement is such that "We will begin with a GOOD PRODUCT served in a GOOD PACKAGE at the RIGHT TIME and PROPERLY PRICED. While striving for our mission statement, the company's goal is that of a multi-faceted success. Our first responsibility is to the financial well being of the restaurant. We will meet this goal while trying to consider; 1) the effect of our products on 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 goal (1).

2.3 Development & Status. Construction is set to begin as soon as all funding is secured. Gilligans is founded and owned by four individuals, who will also serve as the management team; Sandy Nash, General Manager; Michael Horton, Kitchen Manager; Tom Thompson, Hospitality Manager; and Tony Helton, Bar Manager. A suitable site for the restaurant has been found and purchase negotiations are in the final stages. The location will be 000 North Reading Road, Adamstown, PA. When the purchase is finalized construction will begin and the balance of the start-up funds must be raised.

With that phase completed, Gilligans can then open and the operations phase of the project can begin. Our target market and location will prove to be our key to profitability. Adamstown, Pennsylvania is a prime location for our restaurant due to the lack of competition and the frequency of tourists 2.4 Hours of Operation. Gilligans will operate seven days a week, 363 days a year. Hours of operation will be: Sunday - Thursday 11: 00 am - 12: 00 am Friday - Saturday 11: 00 am - 1: 00 am Hours may be extended nightly depending on business and manager discretion. Gilligans will be closed on Thanksgiving and Christmas.

2.5 Future Plans. Gilligans will offer a unique experience to our consumer starting with restaurant design and ending with the last bite taken. The restaurant and menu is designed to attract people of all age groups. Our menu will offer items made from scratch daily giving us a competitive edge over our competition. Gilligans plans to achieve sales of $1,735,794 in the first year of operations, showing a net profit of $59,448.22. 2.6 Product / Service.

Much time and effort has been spent to create and collect a menu that will appeal to practically everyone. The menu will offer 150 homemade items under headings such as Appetizers, Soups, Salads, Chicken, Imported Pasta, Veal, Seafood, Steaks, Sandwiches, Burgers, and Subs. For those with children, Gilligans will offer a separate kids menu sure to please the pickiest eaters. Besides the food menu, Gilligans will offer a full service bar with a menu featuring Specialty Drinks, Frozen Drinks, Shooters and Hot Drinks. Our diverse menu will provide customers with a wide selection of items that fit within their budget (see menus in appendix).

Gilligans will not only be offering a quality product we will also be offering a quality service. Gilligans philosophy will be such that "We will begin with a GOOD PRODUCT served in a GOOD PACKAGE at the RIGHT TIME and PROPERLY PRICED". The PRODUCT is our menus. Our restaurant is the PACKAGE. By having the opportunity to design and build our own restaurant we have the opportunity to create something that goes beyond anyone's expectations (see restaurant design in appendix A). Ambiance, styling, color and interior as well as exterior architecture are the bridge between what the customer expects and what the proprietor is offering.

The customers of Gilligans can expect to see unusual or unique colors, textures and styling; sights and sounds which will transport them from their daily stress and strain into a world of pleasurable sensations - also known as the "Wow Factory". Restaurant design is also essential in attracting quality staff. The restaurant will be designed with the employees' need in mind. The back of the house will accommodate our employees by having areas for eating, changing and resting. Service stations will be placed for user ergonomics and convenience. By attracting quality employees Gilligans will complete its package with quality service.

Employees will serve as sales people and advertisers. To the customer THEY ARE GILLIGANS. Thus, the necessity for careful selection and professional training is critical. Customers do not enjoy waiting.

TIMELINESS in seating customers, taking their orders and then serving them promptly is a must if we are to keep customers coming back for more. Lunch tickets are not to take longer than 15 minutes, dinner tickets no more than 20 minutes. Our kitchen will be designed to expedite the preparation and serving of an item. This along with a kitchen staff organized and trained to give immediate attention to ALL orders should result in a condition conducive to serving our customers quickly and efficiently.

A customer must feel he or she is getting their money's worth. Our large portions and high quality product will prove to our customers that they are getting good VALUE for their money. Our diverse menus will provide customers with a wide selection of items that fit within any budget. 2.7 LOCATION.

Gilligans will be located on North Reading Road, in Adamstown, Pennsylvania. Adamstown is located in the center of Lancaster County. Lancaster County is comprised of 60 independent municipalities that cover 946 square mile and serves as home to 470,000+ residents. Lancaster County hosts more than 5 million tourists each year (2). Adamstown, nestled in the heart of scenic Pennsylvania Dutch Country, is known as the Antiques Capital of the United States. This particular area is where people travel to eat out and is frequented by tourists visiting the many antique shops in the vicinity.

Restaurants & Institutions ranked Lancaster County as the 5th best place in the Mid-Atlantic Region to open a restaurant. According to their study, the average Lancaster household spends $1,811 each year dining out - more than any other household in the Mid-Atlantic Region (2). North Reading Road is also a main route connecting many of the communities of Lancaster County. A prime commercial location has been found for construction to begin. On either side of Gilligans will be two of the largest antique shops in Adamstown. The benefits of this location are room for expansion if decided upon at a future date, high visibility from North Reading Road, ease of access from North Reading Road, convenient parking as well as a large parking area, and a close proximity to area retailers.

In three to five years, as the company grows Gilligans would like to expand their location by establishing a new restaurant in another community within Lancaster County. 3.0 THE MARKETING PLAN 3.1 Market Analysis. Economists at the National Restaurant Association estimate total foodservice sales for 2003 at $426.1 billion dollars, representing a 4.5 percent increase over 2002 (3). That means consumers will spend an average of 1.2 billion dollars per day on food away from home. This will mark the 12th consecutive year of growth in the industry.

According to the Restaurant Report, more Americans eat out each week than participate in any other single form of entertainment (4). As Americans depend more on meals away from home, dining has become what they do to relax and unwind. There are several economic and cultural trends that have contributed to the growing demand for meals prepared away from home: o Increasing number of women in the workplace o Increasing number of woman-owned businesses o Growing number of higher-income households o Americans working longer hours o Decreasing amount of leisure time o Premium placed on convenience (5) According to Foodservice Solutions, a Tacoma, Washington hospitality consulting firm: "Home-meal replacement is not a luxury today - it's a necessity. People don't want to take time to cook; they have too many other things to do... ". (6).

In addition, food expenditures rise significantly as income increases according to the Bureau of Labor Statistics' Consumer Expenditure Survey Data (7). While much of the nation faced a decrease in the median income from 2000 to 2001 of 2.2 percent, the Northeast did not, more specifically, Pennsylvania's median income increased by 4.1 percent to $43,426 (8). Food expenditures away from home per household have steadily increased in accordance with the steady increase of median income (9). As income grows so will the foodservice industry. The more people make the more they will be willing to spend on a high quality product with high quality service. 3.2 Target Market.

Over the past few years, usage of restaurants by consumers over 50 is greater than that of consumers overall. In addition, the fastest population growth is forecast among Empty Nesters, Single Parents and Over 75 age groups. Empty Nesters, along with Singles and DRINKS (married, dual-income, no kids) have the highest usage of restaurants. They have been driving the U.S. restaurant industry growth over the past five years and will continue to do so over the next five to ten years (10). The specific demographics for Gilligans target market are as follows: Demographics Study: Local Population Tourists Local Businesses Median Household Income $43,426 $45,000 $40,000 Age 18-65 25-65 28-55 Marital Status Married or High Income Singles Married - Education College Degree College Degree College Degree Children 1.2 2 - Residency Lancaster County Throughout US Adamstown / Denver The customer base will come from 3 major segments: o Local population - the city of Adamstown is centrally located in Lancaster County.

Lancaster County is comprised of 60 independent municipalities that cover 946 square miles and serves as home to 470,000+ residents. o Tourism - Lancaster County hosts more than 5 million tourists each year. Adamstown is one of the largest attractions in Lancaster County due to the large collection of antique dealerships in the area. o Local businesses - The Lancaster Chamber of Commerce lists over 700 businesses. The following psycho graphic charts show what consumers are eating when dining out and what drives them to eat out and why they eat where they do: Price 40% Menu Choices 25% Atmosphere 5% Service 20% Location 10% 3.3 Competitor Analysis. Direct competition will exist from two full service restaurants. They are Zia Maria's, an Italian Eatery and Pub and the Black Angus Restaurant and Brew Pub. The strength of these competitors lies in the reputation they have built in the community.

Awareness of their product is well established with both the community and the tourists. Zia Maria's, located in a small shopping center on North Reading Road, offers a selection of Italian dishes along with a large selection of sandwiches on their menu, all moderately priced. They also offer a full service bar with the usual offerings; drinks are moderately priced. Gilligans will compete by offering a broader menu selection as well as offering Specialty Drinks at the bar. Zia Maria's location has limited them to a relatively small space making both the restaurant and bar area uncomfortably close.

By having the ability to build from the ground up, Gilligans will be able to offer their customers a large dining area set away from the large bar area. Gilligans will also compete on the basis of location. Gilligans will be centrally located within the business district with adequate parking and easy access from North Reading Road. Zia Maria's has become very slack in their marketing efforts.

Their marketing has been limited to the occasional ad in the community newspaper, "The Shopping News". Their customer base comes from the fact there is little or no competition in the area. The Black Angus Restaurant and Brew Pub has been in operation for 40 years. It is a Victorian theme fine dining restaurant offering a menu selection of steaks, seafood, German dishes and an oyster bar. The Black Angus also features a brewery, where they produce and sell their own beer.

Dining at the Black Angus is by reservation only (11). As with any fine dining restaurant, the menu prices for the Black Angus are relatively expensive. Because of the reservation system, the menu options, and the prices, the Black Angus attracts only those who earn much more than the median income. The reservation system also denies access to the Black Angus by tourists who visit the area either because they are first time visitors or the trip to the area was a spontaneous day trip. Families with children also tend to shy away from such places as the Black Angus. By offering a broader menu selection at considerably cheaper prices Gilligans will attract those customers that the Black Angus cannot attract.

And by offering a quality product with top-notch service with no reservation system to turn away customers Gilligans will entice those customers who do frequent the Black Angus. Much like Zia Maria's, the Black Angus does very little to market their product. Again their customer base comes from the lack of options in the area. Through marketing, publicity, and word-of-mouth, people who visit Zia Maria's and the Black Angus will be curious or open-minded enough to experience a fun, convenient and inexpensive meal or drink with Gilligans. Indirect competition comes from a local fast food chain and a local diner, Subway and Zinn's Diner, respectively. Gilligans will offer dishes and drinks which cannot be found in these restaurants and which are priced generally higher.

Gilligans will attract customers who may be willing to spend more on a meal for the dining experience. 3.4 Issues Analysis - Threats and Opportunities. A major threat to our market is the state of the economy. Unemployment continues to remain at elevated levels, which in turn forces consumers to cut spending. The latest leading economic indicators did however report a slight improvement in economic activity. With interest rates being reported at their lowest ever, now is an opportune time to obtain the commercial lending needed to begin construction on Gilligans.

Construction will take five to six months and at that time the economy should be experiencing an increase in activity. There are numerous regulatory bodies that oversee the food service industry. While some see these bodies as a threat, Gilligans sees them as an opportunity to protect management, our employees, and the consumer. By abiding by each of the regulations Gilligans will provide a safe environment for its employees and its consumers. By abiding by each of the regulations Gilligans will also protect itself from lawsuits or worse, from being shut down.

There has been a nationwide push by the federal government to ban smoking in all public places. Some states, such as Delaware, as already implemented this law. This definitely poses a threat to the food service industry. The food service industry is first and foremost a service business driven by customer demands and needs. If smokers are no longer allowed to smoke in bars and restaurants they will simply quit dining out or at least cut back. Some bars in the Delaware area have been able to circumvent this law by privatizing their restaurants and bars.

Customers simply have to sign a sheet and they are made members. Gilligans will do the same if forced to. A sign in sheet could also prove to be a powerful promotions tool by having the names and addresses of all who visit Gilligans. Other pending legislation that would pose a threat by increasing expenses is: o House Bill 179 - Would require certain establishments to train staff on the Heimlich maneuver and CPR techniques. o House Bill 154 - Amends as act imposing an emergency State tax on liquor... providing for the collection and payment of such tax... to be used exclusively for grants to fire companies and volunteer ambulance and rescue companies (12). Pending legislation that would create an opportunity for Gilligans include: o Tip Tax Fairness Act - Would prohibit the IRS from billing an employer for FICA payroll taxes on allegedly unreported tips without first verifying that individual employees actually under reported their tips.

This would shift the burden of enforcing tip-reports laws back to the IRS. o Senate Bill 350 - Increases the wholesale discount on the purchase of wine and spirits in PA from 7% to 16% (12). Once Gilligans has obtained the needed funding and is positioned in the market, the entry barrier for new competitors is extremely high due to the capital requirements. Before the SBA will even consider guaranteeing a restaurant loan, the SBA wants the lender to have somewhere around 50 percent to 60 percent of the total amount of equity required. This is compared to 25 to 30 percent equity required of other businesses (bankers operate on the same principle) (13). The needed licenses are also somewhat of an obstacle when opening a restaurant.

3.4 Issues Analysis - Strengths and Weaknesses. By having the opportunity to construct from the ground up, Gilligans has an opportunity to create two strengths by design. The first of which is design of space. Ambiance, styling, color and interior architecture are the bridge between what the customer expects and what the proprietor is offering.

The customers of Gilligans can expect to see unusual or unique colors, textures and styling; sights and sounds which will transport them from their daily stress and strain into a world of pleasurable sensations - also known as the "WOW FACTOR". The second strength, which stems from the construction of Gilligans, is service. From an employer standpoint, the restaurant eur wants to attract the best service staff available and keep them as long as possible. One of the ways this can be accomplished is by designing their workspace with their needs in mind. A third strength lies in our menu offering. Gilligans will set a standard of excellence above the rest.

Instead of just serving "good food" whose preparation consists of dropping a boil-n-bag into a pan, Gilligans will start our menu items from scratch daily. Sauces made from scratch, homemade soups, specialty drinks, and fresh ground hamburger meat, hand-patted in our kitchen will prove to be a standard above the competition. The management team of Gilligans creates a fourth strength. With a combined experience of 64 years, the management team is well diverse in all areas of restaurant operations.

Weakness will come from the fact that Gilligans is the new kid on the block. Both competitors have had operations in the area for many years and as a result both have built a good reputation in the community. Because people are curious of new restaurants and tend to give them a try at least once, Gilligans has the opportunity to turn this weakness around very quickly. A second weakness will be the lack of an experience staff.

However, by creating a restaurant designed to attract the best in the business, Gilligans will have the opportunity to turn this around. Through careful selection and extensive training Gilligans will create a staff that is both knowledgeable and professional. A solid relationship with purveyors is essential for the success of a restaurant. Because Gilligans is a new restaurant coming to the area, no such relationships have yet been established.

This will create a third weakness for Gilligans. An extensive amount of research and time will be spent in order to build these necessary relationships. 3.5 Marketing Objectives. One of the greatest challenges facing Gilligans in its first year of operation is lack of community awareness. Therefore, marketing objectives include: o Product awareness among the target audience o Inform target audience about features of our products o Decrease or remove potential resistance to buying our product o Build a customer base or "regulars" 3.6 Pricing.

Gilligans pricing strategy will be such to offer something for every budget. Pricing will be as follows: ITEM PRICE RANGE Appetizers $4.50 - 7.95 Soups and Salads $1.25 - 7.95 Hamburgers and Sandwiches $4.25 - 8.25 Chicken and Pasta $7.95 - 15.95 Steak, Veal and Seafood $7.95 - 29.95 Desserts $3.50 - 4.95 Kids Menu $3.50 - 5.25 Beverages $1.25 - 2.95 Specialty Drinks $4.50 - 5.95 Frozen Drinks $5.50 ITEM PRICE RANGE Liquor $3.50 - 6.50 Beer $1.50 - 3.75 Wine $3.50 - 5.50 Method of payment accepted will be cash, check or major credit card (Visa, MasterCard, and American Express). 3.7 Promotion Plan. No single unit restaurant has the ability, from a financial standpoint, to compete with an established national chain with regard to massive advertising campaigns.

The best advertising for any restaurant, is the referrals you receive from satisfied customers who patronize your restaurant. By establishing relationships with your own customer base and actively seeking ways to fulfill their needs based upon existing patterns of business activity, you can capture a greater immediate market share. As a single unit operation, Gilligans is uniquely able to provide a higher and more intimate level of specialized customer service than most chain operators due to issues of flexibility. However, some heavy advertising will need to be done at opening and Gilligans will do some regular advertising over the coming years. The marketing effort will be split into 3 phases; 1.) Opening - Heavy advertising to make the public aware 2.) Ongoing - A flexible campaign, assessed regularly for effectiveness 3.) Point of Sale - A well-trained staff can increase the average check as well as enhancing the customer's overall experience. Word-of mouth referral is very important in building a customer base.

See Appendix B for a more detailed promotion plan. 3.8 Sales and Distribution. There will be three ways a customer can purchase food. They may sit in the dining room or bar area and get full service from a waitperson. A separate take-out counter will service those who wish to pick up their food. Most take-out food will be prepared to order with orders coming from either the telephone of fax.

Delivery will be available at certain times and to a limited area at a later date. 3.9 Sales Forecast. The following table and chart give a run-down on forecasted sales. In year 1 Gilligans has a total revenue of $1,735,793.95 and a net profit of $59,448.22. Total revenue is projected to grow 4.5% each year there after, net income is projected to grow to $164,585.19 in year 2 and $176,280.03 in year 3. See Appendix B for detailed planning of promotions and costs, including the budget allotted.

4.0 THE MANAGEMENT PLAN The four founding partners of Gilligans will also serve as its management team. Each partner has his or her own area of specialty, covering all areas of restaurant management. 4.1 Key Employees. Sandra Nash, General Manager. Sandra Nash is 25% owner and will serve as General Manager of Gilligans. Sandra has received her Bachelors in Business Administration and is currently working towards her Masters of Business Administration.

She has previously worked as the Operating Accountant for the Veterans Affairs Medical Center. She brings her experience at managing the general operations of a business with her. She will oversee the day-to-day operations of the business. Michael Horton, Kitchen Manager. Michael Horton is 25% owner and will serve as Kitchen Manager for Gilligans. Mr. Horton's focus will be on menu implementation and kitchen operations, including all kitchen personnel.

Mr. Horton has developed our initial menu. Mr. Horton has previously worked as Kitchen Manager for several major restaurant franchises. In these positions he has consistently met food and labor budgets. He also brings with him a track record of success in decreasing labor turnover. Tom Thompson, Hospitality Manager. Tom Thompson is 25% owner and will serve as Hospitality Manager of Gilligans.

Mr. Thompson's primary focus will be on the management of the front of the house staff. Mr. Thompson previously owned and operated his own restaurant, which he has now sold for a considerable profit. Mr. Thompson previous track record of success will prove to be an asset for Gilligans. His management style is innovative and in keeping with the style outlined in the mission statement.

Tony Helton, Bar Manager. Tony Helton is 25% owner and will serve as Bar Manager for Gilligans. Mr. Helton's primary focus will be on the operations of the bar and its personnel. Mr. Helton has developed our initial drink menu. Mr. Helton has worked as the Bar Manager for Holiday Inn, Cheers! Restaurant, and Grady's Bar and Grill.

Mr. Helton has been successful in developing programs to increase bar sales and bar patrons. His staff will be highly trained in the latest drink technology and techniques. 4.2 Compensation & Incentives. Gilligans will offer competitive wages and salaries to all employees with benefit packages available to key personnel only.

4.3 Consultants & Professional Support Resources. At the present, no outside consults have been retained. 4.4 Management Structure & Style. Sandra Nash will be the General Manager. All other managers will report to her. All other personnel will report to their respective manager.

4.5 Personnel Plan. The following table summarizes our personnel expenditures for the first year. The General Manager will be paid a salary of $50,000. All other managers will be paid a salary of $35,000. Other personnel will be paid according to industry averages. The financial plan is dependent on important assumptions, most of which are shown in the following table as assumptions.

The following table summarizes our break-even analysis. Break-Even Analysis Income Statement Gross Sales $1,735,793.95 Cost of Sales $564,671.06 Gross Profit $1,171,122.89 Gross Profit Margin 1 Total Fixed Costs $1,081,358.59 Break-Even $1,646,029.65 Cash Remainder $89,764.30 Controllable Expenses Salaries & Wages $493,178.34 Employee Benefits $69,431.76 Operating Expenses $78,110.73 Marketing $173,579.40 Energy & Utility Expenses $60,752.79 Repair & Maintenance $17,357.94 Occupation Costs $104,147.64 Interest & Principal $84,800.00 Total Fixed Costs $1,081,358.60 5.3 Projected Profit and Loss. Our projected profit and loss is shown on the following table, with revenue increasing from $59,448.22 the first year to $176,280.03 the third year. This is achievable with the assumption that the food service industry continues to grow at its current rate of 4.5%.

Host night before grand opening, inviting all VIP member of the Chamber of Commerce. Turn out count Approach the Lancaster Intelligencer about writing a column discussing our restaurant and the food service industry. Send an advanced notice to all media Offer coupons in the local paper Coupon turn ins Advertise in "The Shopping News" Contact local businesses to print valuable coupons in their newsletters Coupon turn ins Phase II - Ongoing Marketing Objective Promotional Tool Effectiveness Measurement Product Awareness, Inform about Features and Benefits and Build a Customer Base, Decrease resistance Handout business cards, offer a 10% discount off receiver's next meal Business card turn ins Use short term frequency cards (punch cards) to get more visits from customers Return visits Publish an email newsletter, including unadvertised specials Allow feedback, measure feedback Continue to advertise in local papers, advertising daily specials: Nightly two for one appetizers; Saturdays two for one hamburgers; Sundays kids eat free; Nightly Happy Hour Turn out during special hours APPENDIX B-2 MARKETING BUDGET Marketing Budget Expected Revenue $1,735,793.95 Cost of Food Sold $564,671.06 Salaries and Wages $493,178.34 Employee Benefits $69,431.76 Restaurant Occupancy Costs $104,147.64 Other $156,221.46 Income Before Income Taxes $148,595.46 Marketing Budget 10% $173,579.40 APPENDIX B-3 ACTION PROGRAMS Opening Date: November 28, 2003 Phase I Promotion When it will be done Price Register with Chamber of Commerce October 31, 2003 Approach Lancaster Intelligencer about column discussing Gilligans November 3, 2003 Send advanced notice to all media November 10, 2003 $10,000.00 Offer coupons in local paper November 17-28, 2003 $1,500.00 Advertise in "The Shopping News" November 17-28, 2003 $500.00 Host dinner for VIP of Chamber of Commerce November 27, 2003 $4,000.00 Contact local businesses to print valuable coupons in their newsletters November 28-December 15, 2003 Phase II Handout business cards, offer 10% discount November 27, 2003, continue indefinitely $3,000.00 Handout short term frequency cards November 28, 2003, continue indefinitely $3,000.00 Publish email newsletter December 29, 2003 Continue to advertise in local media Advertise twice monthly in "The Shopping News", twice monthly in the "Lancaster Intelligencer" for the next year.