Dominic's Caf

Business Plan

CONTACT:

Kavita Sahai Phone: (609) 316-7355 E-mail: kgsahai@gmail.com

Table of Contents

1.0 Executive Summary...................................................................................................................... Growth Opportunities............................................................................................................. Mission........................................................................................................................................... Company Ownership .............................................................................................................. Company Location....................................................................................................................

3 4 4 4 4

2.0 Products and Services ................................................................................................................. 5 Description of Products and Services ............................................................................... 5 3.0 Market Analysis Summary ......................................................................................................... Market Segmentation.............................................................................................................. Industry Analysis ........................................................................................................................ Competitive Comparison ....................................................................................................... 6 7 7 8

4.0 Strategy and Implementation Summary ............................................................................. 10 Competitive Edge ...................................................................................................................... 10 Marketing Strategy...................................................................................... 10 5.0 Management Summary ............................................................................................................. 11 Personnel Plan ............................................................................................................................ 11 6.0 Financial Indicators ...................................................................................................................... Revenue Forecast ....................................................................................................................... Break-even Analysis ................................................................................................................... Projected Pro t and Loss ......................................................................................................... Projected Cash Flow .................................................................................................................. Projected Balance Sheet .......................................................................................................... Sensitivity Analysis ..................................................................................................................... 12 13 15 16 17 18 19

Appendix .................................................................................................................................................. 20

1.0 Executive Summary

ominic's Caf, a successful business located on a busy intersection in Deer eld, Florida, is currently available for sale to new management. The Company is a sit down caf that sells Italian lunch and dinner items. Dominic's Caf taps into the market created by the workers in adjacent o ce buildings, which has close to 100% occupancy. This customer base brought about the Company's success throughout its years of operation, and the Company's new ownership expects it to remain constant as it maintains the quality of product and service that customers have come to expect. These customers are busy professionals who enjoy the ability to purchase lunch and dinner on their way to and from the o ce. The closest direct competitor, a Dunkin' Donuts, is located 15 minutes from the o ce, which gives Dominic's Caf access to a virtually untapped market. Dominic's Caf has never spent much on marketing, management believes there would be great bene t to updating the brand and using a variety of advertising avenues to deliver its message. Speci c promotional tools could include use of a large outdoor sign and direct mail to the local community. In addition, positive word of mouth referrals will continue to drive in new business while building a loyal base of customers who are satis ed with what the Company has to o er. Terry Lynn is the current restaurant manager and would like to stay on post sale. Ms. Lynn is an experienced business professional with over 10 years or relevant operations experience. Her prior employment history includes work in administrative suppor t and waitressing. Due to health issues, the owner is looking to exit the business but will be available for consulting and coaching for a couple months post sale and is open to a seller's note

Financial Highlights

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Growth Opportunities
There are many potential growth opportunities for buyers including:

Start advertising locally and creating loyalty programs. Reduce Sta . Currently, restaurant is oversta ed due to employment of family members. ~$60,000 potential savings Expand to breakfast as there is a large population of working professionals in the area.

Mission
The Company's mission statement is as follows:
We want our food to taste handmade with high quality ingredients as well as quick and friendly customer service.

Company Ownership
Dominic's is a limited liability company registered in the state of Florida. The Company is 100% owned by Je Strongman.

Company Location
The Company is located in Deer eld, Florida.

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2.0 Products and Services

Dominic's Caf is an existing restaurant located in a commercial building in Deer eld, Florida. The Company's location is attractive because it is in a Publix plaza and adjacent to several o ce buildings. Dominic's makes all its money in the sale of food and beverages.

Description of Products and Services

A photograph of the Company's interior and menu are presented below:

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3.0 Market Analysis Summary

The Company's location in Deer eld, Florida places it in a thriving and diverse metropolitan area. The speci c location in a Publix plaza taps into a steady stream of consumer tra c. The following table provides pertinent gures for the population living within ve miles of the Company's location. This data is provided by ESRO ArcGIS Business Analyst Online, a market research rm. Deereld, FL Full Demographic Report Radius: 1.0 miles
2009 Total Population 2014 Total Population 2009-2014 Annual Rate 2009 Households 2009 Average Household Size 2009 Families 2009 Average Family Size Median Household Income 2000 2009 2014 Per Capita Income 2000 2009 2014 Median Age 2000 2009 2014 2009 Households by Income Household income Base <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 + Average Household Income 5,779 5,962 0.63% 2,552 2.26 1,319 2.93

Radius: 3.0 miles

86,910 91,769 1.09% 36,511 2.37 20,903 3.04

Radius: 5.0 miles

233,765 245,671 1.00% 91,777 2.53 57,709 3.12

$40,770 $53,339 $55,161

$45,169 $61,302 $64,379

$49,024 $67,331 $71,939

$22,281 $29,486 $31,440

$23,055 $30,497 $32,530

$23,756 $31,420 $33,501

42.0 43.7 43.8

44.7 46.5 46.7

44.9 46.6 46.7

2,550 9.7% 10.0% 11.1% 15.0% 22.4% 17.2% 8.2% 3.8% 2.6% $65,347

36,511 7.7% 7.6% 9.4% 14.2% 21.8% 20.0% 13.1% 3.7% 2.5% $72,463

91,781 6.6% 7.3% 8.3% 12.6% 20.4% 20.4% 15.8% 5.1% 3.5% $79,700

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2009 Population by Age Total 0-47 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ 18+ 2009 Population by Sex Males Females 2009 Population 25+ by Educational Attainment Total Less than 9th Grade 9th-12th Grade, No Diploma High School Graduate Some College, No Degree Associate Degree Bachelor's Degree Master's/Prof/Doctorate Degree 2009 Consumer Expenditure Food Away from Home: Total $ Average Spent Spending Potential Index

5,781 .0% 5.8% 5.2% 5.6% 9.6% 19.1% 15.6% 13.0% 9.4% 4.7% 3.2% 1.9% 79.0%

86,910 6.7% 6.2% 5.9% 6.1% 7.2% 15.6% 15.0% 15.0% 11.0% 5.9% 3.7% 1.8% 77.6%

233,764 6.8% 6.5% 6.4% 6.5% 6.8% 14.7% 14.9% 15.5% 11.4% 5.8% 3.4% 1.4% 76.5%

49.4% 50.6%

49.6% 50.4%

50.0% 50.0%

3,863 4.9% 7.4% 28.6% 24.5% 7.9% 20.0% 6.7%

59,028 5.1% 6.9% 27.8% 24.7% 9.2% 19.9% 6.5%

156,771 4.6% 7.0% 26.5% 24.2% 9.1% 20.7% 7.8%

$8,232,567 $3,225.93 97

$127,491,715 $3,491.87 105

$348,550,305 $3,797.80 114

2009 Consumer Spending above shows the amount spent on a variety of goods and services by households that reside in the market area. Expenditures are shown by broad budget categories that are not mutually exclusive. Consumer spending does not equal business revenue.

Market Segmentation
Dominic's Caf speci cally targets the workers in its adjacent o ce buildings as well as walk-in tra c from the plaza. The building employs busy professionals, who appreciate the chance to pick up a quick lunch or dinner when on the go.

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Industry Analysis
The Company will operate within the Eating Places industry (Standard Industrial Classi cation 5812). The table below shows Dun & Bradstreet data regarding the performance of the businesses in this industry on a national and state level, as well as in the Co ee shop subset, which is measured on a national scale only

Industry Eating Places (5812) Establishments primarily engaged in the retail sale of prepared food and drinks for on premise or immediate consumption. Caterers and industrial and institutional food service establishments are also included in this business. Market Size Statistics Estimated number of U.S establishments: 460,198 Number of people employed in this industry: 6,254,429 Total annual sales in this industry: $284.2 billion Average number of employees per establishment: 17 Average sales per establishment(unknown values are excluded from the average) : $1.0 million Market Analysis by State and Metropolitan Area State South Dakota No Bus. 10,404 %Total 2.3 Total Employees 128,775 Total Sales $15.4 billion Average Employees 14 Average Sales $2.1 million

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Market Analysis by Specialty (8-digit SIC Code) SIC Code 5812-0304

SIC Description

No Bus. 13,186

% Total 2.9

Total Employees 108,037

Total Sales $12.1 billion

Average Employees 10

Average Sales $1.7 million

Co ee shop

Competitive Comparison
Dominic's Caf is the only caf in its immediate area. The closest competitor, a Starbucks, is located 15 minutes away. Starbucks has a poor reputation for its quality of product and for its reputation as a major national chain. However, Starbucks is convenient for drivers and its familiar menu options are a powerful draw for customers. Other competition comes from a burger and donut place near the Starbucks, which is inconvenient for the workers in the same o ce building as Dominic's Caf, but it does provide co ee and a variety of products. For a comprehensive analysis of the Company's competitive strengths, refer to 4.1 Competitive Edge.

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4.0 Strategy and Implementation Summary

The Company recognizes that building its brand is important to securing a strong standing. Therefore, Dominic's Caf will re-brand itself to focus on its quality, convenience, and overall excellence in its provision of a caf that sells quality products and serves individuals of all kinds, especially business professionals on the go. To raise brand awareness among its intended audience, the Company will focus on developing a memorable logo that it will use throughout its promotional strategy and its various marketing material. This will aid in brand reinforcement and adoption, as well as the enhanced growth of its name and positive reputation among prospective patrons in the Mitchell area. With its brand and guiding established, Dominic's Caf will send a clear message about what it stands for, thereby building brand loyalty and encouraging the steady growth of its regular base of patrons. Dominic's Caf intends to achieve the following objectives:

Continue to establish a strong brand name and reputation in the community Fuel growth through positive word of mouth referrals

In order to reach these operational goals, the Company will build on its strengths and advantages as outlined in the following section.

Competitive Edge
Dominic's Caf intends to capitalize on its core strengths in order to establish itself as a leading caf in the target area. These competitive advantages are outlined in greater detail below.

Already established base of regular customers Conveniently located Unmatched customer service Superior level of professionalism Extensive marketing tactics will reach a large segment of customers

Marketing Strategy
The Company will generate interest for its product by utilizing a variety of advertising channels that will increase the Company's exposure among industry businesses and consumers.

Outdoor signage: Dominic's Caf will create a large board sign in a prominent placement in the front of its location, for maximum visibility to both foot and vehicular tra c. These signs will notify potential customers of the Company's products and services. Established relationships: The Company already has a stronghold on the market and will use established business relationships, as well as relationships with customers to continue to market its caf. This will help attract new customers, and generate word of mouth. Direct mail: Dominic's Caf will develop full color yers and brochures for distribution to businesses within the o ce building, as well as area residents within the community. This will serve as a simple yet e ective marketing tool. Word travels quickly between peers, family members and colleagues who are pleased with the quality products and e cient customer service they receive at JJ's Landmark Caf. The Company will rely on this form of e ective, yet inexpensive marketing to generate interest in its services. Consumers have reported that a person like me has become the most credible source of information about a company or a product from 20% in 2003 to 68% today.

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5.0 Management Summary

Terry Lynn, Manager TerryLynn will own and operate the Company. Ms. Lynn is an experienced business professional with a strong background in hospitality. Her prior employment history includes work in administrative support and waitressing.Ms. Lynn intends to use her natural leadership ability and proven business expertise to build the Company's reputation.

Personnel Plan
Personnel Forecast Year 1 Personnel Count Employees Owner Total Personnel Personnel Wage Employees Owner Personnel Costs Employees Owner Total Payroll 1 1 2 Year 2 1 1 2 Year 3 1 1 2

$7,800 $24,000

$8,190 $25,200

$8,600 $26,460

$7,800 $24,000 $31,800

$8,190 $25,200 $33,390

$8,600 $26,460 $35,060

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6.0 Financial Indicators

The following table summarizes the Company's projected nancial performance with standardized measurement indicators used to evaluate pro tability, leverage, asset turnover, and liquidity. As with any long-range projection, accuracy is based on reasonable estimates of return on investment and past performance. The Company believes the following numbers are attainable and reasonable. However, actual results will vary.

Financial Indicators Year 1 Pro tability % 's: Gross Margin Net Pro t Margin EBITDA to Revenue Return on Assets Return on Equity 67.50% 19.67% 26.55% 27.29% 109.30% Year 2 67.50% 24.08% 29.67% 29.87% 60.61% Year 3 67.50% 28.03% 32.53% 30.08% 44.79%

Activity Ratios: Accounts Payable Turnover Asset Turnover Leverage Ratios: Debt to Equity Debt to Assets Ratio Interest Coverage Ratio Liquidity Ratios: Current Ratio Current Debt to Total Assets Ratio Additional Indicators: Revenue to Equity Ratio

5.18 1.39

6.38 1.24

6.67 1.07

3.01 75.03% 7.41

1.03 50.72% 10.88

0.49 32.85% 16.20

4.14 8.70%

8.52 6.32%

13.00 5.23%

5.56

2.52

1.60

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Revenue Forecast
The following is a three-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include costs of goods. Financial Indicators Year 1 Units Drinks Pizza Soups/Salads Sandwiches Total Units Unit Price Co ee Pizza Soups/Salads Sandwiches Revenue Drinks Pizza Soups/Salads Sandwiches Total Revenue Direct Unit Cost Drinks Pizza Soups/Salads Sandwiches Direct Cost of Revenue Drinks Pizza Soups/Salads Sandwiches Subtotal Cost of Revenue 32,400 27,000 20,250 16,200 95,850 37,260 31,050 23,287 18,630 110,227 42,849 35,707 26,781 21,424 1 26,762 Year 2 Year 3

$2.50 $3.00 $4.00 $5.00

$2.50 $3.00 $4.00 $5.00

$2.50 $3.00 $4.00 $5.00

$81,000 $81,000 $81,000 $81,000 $324,000

$93,150 $93,150 $93,150 $93,150 $372,600

$107,122 $107,122 $107,122 $107,122 $428,490

$0.63 $0.75 $1.60 $2.00

$0.63 $0.75 $1.60 $2.00

$0.63 $0.75 $1.60 $2.00

$20,250 $20,250 $34,400 $34,400 $105,300

$23,287 $23,287 $37,260 $37,260 $121,095

$26,781 $26,781 $42,849 $42,849 $139,259

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Year 1 Revenue Monthly

$40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0
nt h Mo 7 nt h8 Mo nt h Mo 9 nt h1 0 Mo nt h Mo 11 nt h1 2 h1 h4 h5 h2 h3 nt nt nt nt nt Mo Mo Mo Mo Mo Mo nt Mo h6

Sandwiches Soups/Salads Pastries Co ee

Revenue by Year
$450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Year 1 Year 2 Year 3 Sandwiches Soups/Salads Pastries Co ee

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Break-even Analysis
The following break-even analysis shows the revenue necessary to break even. It equilibrates revenue and expenses. As shown below, the Company is expected to incur average monthly xed costs of $11,946 in Year 1. To cover xed costs and variable costs, which rise and fall with revenue, the Company must, on average, achieve revenue of $17,698 per month to break even.

Break-even Analysis Monthly Revenue Break-even Assumptions: Average Monthly Revenue Average Monthly Variable Cost Estimated Monthly Fixed Cost $17,698

$27,000 $8,775 $11,946

Year 1 Break-even Analysis

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Projected Pro t and Loss

The Company intends to deploy its funding to maximize growth and pro tability. In the Pro t and Loss table below, gross margin equals sales minus direct costs. The bottom line or pro t (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses.

Pro Forma Pro t and Loss Year 1 $324,000 $105,300 $0 $105,300 $218,700 67.50% Year 2 $372,600 $121,095 $0 $121,095 $251,505 67.50% Year 3 $428,490 $139,259 $0 $139,259 $289,231 67.50%

Revenue Subtotal Cost of Revenue Other Direct Costs Total Cost of Revenue Gross Margin Gross Margin/Revenue Expenses Rent Insurance Travel Supplies Marketing Fees/Permits Entertainment Contractors Other/Misc. Depreciation Payroll Taxes Total Personnel Total Operating Expenses

$5,520 $12,000 $24,000 $18,000 $16,200 $3,000 $2,400 $9,000 $6,000 $10,667 $4,770 $31,800 $143,357

$5,796 $12,600 $25,200 $18,900 $18,630 $3,150 $2,520 $9,450 $6,300 $10,667 $5,009 $33,390 $151,611

$6,086 $13,230 $26,460 $19,845 $21,424 $3,308 $2,646 $9,923 $6,615 $10,667 $5,259 $35,060 $160,521

Pro t Before Interest and Taxes EBITDA Owner Salary Adjusted EBITDA % of Revenue

$75,343 $86,010 $11,614 $97,614 30.0%

$99,894 $110,560 $10,162 $120,722 30.50%

$128,709 $139,376 $8,606 $147,982 30.50%

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Projected Cash Flow

Year 1 Cash The following depictions of the Company's projected cash ow show that the Company expects to maintain su cient cash balances over the three years of this plan. The pro forma cash ow table di ers from the pro forma pro t and loss (P&L) table. Pro forma cash ow is intended to represent the actual ow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include non-cash items and exclude funding and investment illustrations. $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0
0 1 h4 h1 h6 h2 h3 h7 h8 h9 h1 h1 nt h5 nt nt nt nt nt nt nt nt nt Mo nt Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo nt h1 2

Net Cash Flow Cash Balance

Pro Forma Pro t and Loss Year 1 Cash Received Revenue New Current Borrowing New Long-term Liabilities Sale of Other Current Assets Sale of Long-term Assets New Investment Received Subtotal Cash Received Expenditure Expenditures from Operations Cash Spending Bill Payment Subtotal Spent on Operations Additional Cash Spent Current Borrowing Repayment Long-term Liabilities Principal Purchase Inventory Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $324,000 $0 $0 $0 $0 $0 $324,000 Year 2 $372,600 $0 $0 $0 $0 $0 $372,600 Year 3 $428,490 $0 $0 $0 $0 $0 $428,490

$31,800 $197,478 $229,278 $0 $20,081 $0 $0 $0 $249,359 $74,641 $84,221

$33,390 $240,164 $273,554 $0 $21,532 $0 $0 $0 $295,086 $77,514 $161,735

$35,060 $260,765 $295,825 $0 $23,089 $0 $0 $0 $318,914 $109,576 $271,312

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Projected Balance Sheet

Pro Forma Balance Sheet Assets Current Assets Cash Inventory Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-Term Assets Total Assets Liabilities and Capital Current Liabilities Account is Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Year 1 $84,221 $0 $84,221 Year 2 $161,735 $0 $161,735 Year 3 $271,312 $0 $271,312

$160,000 $10,667 $149,333 $233,555

$160,000 $21,333 $138,667 $300,402

$160,000 $32,000 $128,000 $399,312

$20,326 $0 $0 $20,326 $154,919 $175,245 $0 ($5,420) $63,729 $58,309 $233,555 $58,309

$18,974 $0 $0 $18,974 $133,387 $152,361 $0 $58,309 $89,732 $148,041 $300,402 $148,041

$20,869 $0 $0 $20,869 $110,298 $131,167 $0 $148,041 $120,104 $268,145 $399,312 $268,145

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Sensitivity Analysis
The sensitivity analysis below assumes that revenues are 15% higher or lower than gures projected earlier in this business plan.

Best Case Scenario (Revenue Increased by 15%) Year 1 Revenue Cost of Goods Gross Margin Gross Margin/ Revenue Operating Expenses Net Pro t Cash Flow Cash Balance Net Pro t/ Revenue $372,600 $121,095 $251,505 67.50% $143,357 $96,534 $107,446 $117,026 25.91% Year 2 $428,490 $139,259 $289,231 67.50% $151,611 $127,457 $115,240 $232,266 29.75% Year 3 $492,763 $160,148 $332,615 67.50% $160,521 $163,488 $152,961 $385,227 33.18%

Worst Case Scenario (Revenue Decreased by 15%) Year 1 Revenue Cost of Goods Gross Margin Gross Margin/ Revenue Operating Expenses Net Pro t Cash Flow Cash Balance Net Pro t/ Revenue $281,739 $91,565 $190,174 67.50% $143,357 $35,203 $46,115 $55,695 12.5% Year 2 $324,000 $105,300 $218,700 67.50% $151,611 $56,927 $44,709 $100,404 17.57% Year 3 $372,600 $121,095 $251,505 67.50% $160,521 $82,378 $71,850 $172,255 22.11%

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Appendix
To preserve the privacy of our client, we have changed the name and numbers throughout the business plan. In the Appendix, we will usually include monthly projections, historical nancials and/or tax returns.

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