1.

Executive Summary
The Dining Delight Restaurant (“DDR”) will be a moderately priced 130 seat restaurant offering
family style food and service. We will offer a wide range of menu for all types of people
(classifying by age) with high quality food at low prices.

The restaurant will be owned and operated by Babar Shahazad The building will be taken on rent
a 12,000 square foot space located at Kohinoor Plaza, Faisalabad. The location was previously
utilized as a restaurant, the former tenant removed the majority of the furniture, fixtures and
equipment which will need to be replaced. The location will also require some additional
renovation to update the environment and increase table space in the dining area.

The décor will feature wood accented chairs with blue and white checked table cloths. Dinner
style tables will be surrounded by wooden chairs with comfortable seating cushions.

Sales projections assume 1700 customers per week resulting in weekly sales of just over
$19,777, or $1,028,000 annually.

The total capital requirement to launch Dining Delight restaurant is $740,000, of which $643,000
is allocated to start-up capital, and $97,000 as business operations cash reserve.

This Plan is being submitted in order to secure a Business investment for $430,000. The
investment will be used towards Equipment purchase, Design, Construction, and Operational
Start-Up expenses. Owners, Babar shahzad are investing $110,000 in personal capital.

As owner, our commitment is to take personal accountability for all financial debt. We have
taken the necessary precautions to ensure the business is fully capitalized, and have addressed all
financial shortfalls to ensure a successful business start-up. Under a realistic scenario, the
company should have over $84,000 in cash balance the third year. Even with the worst-case sales
scenario, we reach a Net Worth break even at the end of Year 5. On a linear projection, the entire
financial debt will be retired by Year 7.

1.1 OBJECTIVES OF RESTAURANT

 To provide high quality food to the customers.

 To provide better services to the customers.
 To provide better sitting facility to the customers.
 To provide better environment to the customers.
 To provide better waiting facility to the customers.
 1.2 MISSION

The mission of our restaurant is:

 “Every employee strives to provide 100 percent customer satisfaction - for every
customer – every visit. This includes fast, friendly and attentive service, accuracy in order
taking and filling, and anticipation of customer’s needs.”
 To achieve the economies of scale to minimize costs while maximizing value to
Customers.
 To achieve leadership, core and functional competencies restaurant business.

1.3 Guiding Principles

1. Being Mindful of our Customers and our Staff

Coinciding with our family values, we will treat both our customers and staff in a
manner in which we ourselves would want to be treated (or better!)
2. Gratitude
“An attitude of gratitude” shown to our customers, employees and vendors – because
without their input, service, labor and time, our business would not be here without
them!
3. Our Service
Provide the warm and friendly service expected from a family-style restaurant
creating an informal, comfortable environment which will make the customers
satisfied and want to return again and again.
1.4 Keys to Success

1. Unique, Innovative & Contemporary: The creation of a unique and innovative fine
dining atmosphere will differentiate us from the competition. The restaurant will stand
out from the other restaurants in the area because of the unique design and decor. We will
offer a fine dining experience in an electric atmosphere.
2. Repeat business: Every customer who comes in once should want to return, and
recommend us. Word–of–mouth marketing is a powerful ally.
3. Product quality: great food, great service and atmosphere. Hire top notch chefs and
offer training to keep the chef on top of his/her game, and pay top wages to ensure they
stay with us.
4. Location: Convenience is essential to us; we need to be close to our market because we
are not trying to get people to travel to reach us.

5. ‘Spice of Life' Menu: The menu will appeal to a wide and varied clientele. Our eclectic
menu features regional specialties around the globe, reasonably priced to establish
credibility, but not so high as to limit customers.
 6. Employee Retention Focus: Employee retention and development programs will be a
primary focus and success platform for this business. Through these programs, we will be
able to draw seasoned and elite professionals and build a committed work force. We have
budgeted for a stock option program for Chef and Management positions to subsidize a
lower salary base. This lowers our immediate overhead and attracts quality staff.

7. Cost Control Focus: We will control costs at all times, without exception. Cost Control
will be an integrated function of the restaurant from the onset. Cost control is about
managing the numbers - interpreting and comparing the numbers that impact the bottom
line. 80 percent of the success of a restaurant is determined before it opens. Our focus is
to reduce the cost of goods sold to meet our profit margin goals by managing the
following crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory,
Rough Preparation, Service Preparation, Portioning, Order Taking, Cash Receipts, Bank
Deposits and Accounts Payable. We will use of this restaurant/ethnic food business plan
to track actual costs against our forecasts in managing the business.

Due to intense competition, restauranteurs must look for ways to differentiate their business
to achieve and maintain a competitive advantage. This restaurant redevelopment requires a
place that will fit into the 'new look' of the community, one that is contemporary and
entertaining. Dining Delight will fill that niche.

2. Company Description
 The Dining Delight Restaurant (“DDR”) Restaurant will be located at Kohinoor Plaza,
Faisalabad. The restaurant will be wholly owned and operated by Babar Shahzad. The
restaurant will serve a variety of fast food, beverages and ice cream.

 The restaurant will be open 7 days a week with hours as follows:
Monday 11:00 am – 9:00 pm
Tuesday 11:00 am – 9:00 pm
Wednesday 11:00 am – 9:00 pm
Thursday 11:00 am – 9:00 pm
Friday 11:00 am – 10:00 pm
Saturday 11:00 am – 10:00 pm
Sunday 12:00 pm– 5:00 pm

Ownership and Legal Form

DDR will be organized as a sole proprietorship, wholly owned and operated by Babar
Shahzad. DDR will be registered in the state of Punjab a community property state.
Start-Up Summary
The cost to open the restaurant is $363,000. The majority of the expenses are in furniture
fixtures and equipment totally $110,000. The location requires some build-out and
renovation totally $50,000 and will require approximately 30 days to complete.

$175,000 of the start-up costs will be funded by the owners. The owner’s source of funds
is a combination of liquid assets and marketable securities, primarily from their existing
catering business.
Location and Facilities
The 12,000 square foot restaurant will be located in a major traffic area, at the area of
Kohinoor at Jaranwala Road.
Faisalabad, city of Pakistan in Punjab province, has a population of is 7873910 according
to census 2017 Report.

Restaurant Design

The design is inspired by the brand itself. It features Italian home cuisine. A cozy cottage
ambience is theme of the design. The interior is furnished with antique objects such as framed
wooden windows, antique leather and fabric sofa, tiled floor and wood tables.
Paintings of old Italian cities are placed on the walls. The motif of the brand is a clapper board.
Echoing this, its form is adopted to build the wooden tree branches spreading across the ceiling.
W ood is adopted the main material for this project. Together with red tiles and brass, it delivers a
vintage and yet stylish feeling. An important trai t is the ceiling which is left open to create a
spacious headroom effect.

Vertical wooden planks are utilized to build tree branches radiating from the distinctive wooden
tree trunks. It livens up while broadening visual space. The form of the brand logo is also a key
element of the layout. Near the entrance of the restaurant is a display of grocery products. This
follows the old philosophy of Italian grocery where high quality products are open for customers’
selection.
On the back of the restaurant, a n overhead projector is set to play videos of old movies on a
screen from time to time. Sitting on the sofa, visitors can capture a feeling of watching movies in
an old theatre and recollect memories of the dazzling Hollywood of the 30’s and 40’s.
Services
Daily Operations and Production
DDR will be open 7 days a week for lunch and dinner requiring multiple shifts. The
schedules will be written in a manner that will allow the ability to increase or decrease
hourly labor according to sales volume in order to maintain a consistent labor cost control.

Proper labeling and rotation techniques, accompanied by sample storage facilities will
ensure that high quality prepared product will be sufficiently available to meet the demands
during peak business hours. Replenishment and ongoing preparation will continue during
off peak business hours.

Babar Shahzad will be responsible for ordering, receiving and maintaining sufficient
inventory to meet production demands. Ordering schedules will be staggered with
perishable products being ordered multiple times per week to preserve freshness. Standard
grocery and supply orders will be ordered less often, according to a predetermined schedule
and storage capacity.

Mr. Babar will rely on operational checklists to verify that each work shift has been
properly prepared for and to insure the operational standards are followed before, during
and after work shifts.

The restaurant layout, including the dining room, kitchen and serving line, has been
designed for efficiency and flexibility to accommodate the fluctuation in customer traffic
and peak meal periods.

Upon arrival, guests will be greeted immediately by either the assistant manager or a server
and asked for the seating preference. Drink orders will be taken and guests can munch on
our complimentary rolls. Once the customer’s order is taken, the order will automatically
be printed to a requisition printer located in the grill area. The grill cook will use the
printed ticket to keep track of orders and place the meal under the heating lamps until the
order is complete. The kitchen preparation line has been designed to be operated by a
minimum staff of 1 line cook and a maximum of 4 cooks. This design allows line staffing
to be adjusted to the business volume. Shift changes for all staff will involve cleanup,
restocking and preparation. All money will be settled at the end of each shift. The closing
shift will involve designated closing duties that will leave the restaurant clean and fully
prepared for the next day.

Suppliers
Because of market knowledge and social contact ,Babar have established relationships with
qualified suppliers. These suppliers can provide reasonably priced products, delivered
according to the schedule.

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Management Controls
The owner will practice sound management procedures in order to control costs, insure
quality of product and provide friendly customer service. The following systems will be
used by management:

Order Guide: The restaurant will use an item specific order guide to track order history
and maintain designated levels of product in inventory.

Weekly Inventory: Management will conduct a weekly inventory to determine valuation

for use in the preparation of weekly profit and loss reports.

Daily Inventory Tracking: Daily inventory will be taken on specific items. Movement
will be compared to sales data to ensure designated products have been properly accounted
for.

Administrative Systems
With a limited staff, it is crucial that the Wrights remain current with daily cash outlay.
The purchase of a POS system will immensely help them with these daily administrative
reports:

Daily Cash Control. Sales and receipts recorded by the POS system will be compared to
actual cash and credit card deposits on a daily basis. Acceptable over/short amounts will be
limited to $5.00 per day. Discrepancies greater than $5.00 will prompt management to
conduct an immediate audit to account for the difference. Monthly totals will be compared
to actual P&L statements for accuracy. Cash, debit card and credit card receipts will be
deposited in a deposit.

Weekly Prime Cost Report. Jeff Wright will prepare a weekly report that shows the gross
profit margin after cost of goods sold and labor cost has been deducted from the sales
revenue. The prime cost for this type of restaurant is expected to range from 60% to 65%.
Proper control of the prime cost is the single most effective measure of management’s
ability to operate the restaurant.

Purchasing Records/Payables. A part time bookkeeper will process and record invoices
and credits daily. Reports detailing cash expenditures, payments by check, and accounts
payable transactions will be readily available. Check disbursements will be prepared by the
bookkeeper. Check signing authority for the general operating account will be given to the
general manager.

Payroll Processing. Payroll checks will be issued bi-monthly. Jeff Wright will run reports
from the time & attendance system, make necessary adjustments, and prepare for transfer
to the payroll system. Payroll will be processed by a payroll processing service.
Future Services
THR has future plans to provide catering services for family reunions, weddings and other
events desiring a “home-style” menu. This could potentially become a large portion of
gross sales. The Wrights are targeting Year 2 and at that point, a sales agent would be
hired to directly market the products for daily delivery or catered functions.

Zara Menus

Zara's varied international menu will feature Thai, Chinese, Spanish, and
other regional flavors. The menu flows together to create complementary elements.
Normal dining will have a reduced Tapas, Appetizer and Entrée selection, while the
Fusion Dim Sum menu will have special items featured only for after-hours dining. The
final menu will be defined by the Executive Chef and paired with the wine menu. We
have carefully selected a premium wine, beer, and alcohol listing, from which we will
choose a modest rotating selection. Zara's marketing will focus on our exotic foods, but
our hours, target market, and location will produce significant alcoholic drinks sales.
Tapas, in particular, are small dishes meant for sharing while drinking sangria, wine, or
other mixed drinks, and the Tapas menu will play up this idea with drink suggestions.

The list below offers a small selection of our opening menu offerings:

Zara Tapas

Industry Analysis
This analysis is based on the Standard Industry Code (“SIC”) 5812: Eating and Drinking
Places Establishments primarily engaged in the retail sale of prepared food and drinks for
on-premise or immediate consumption. It is also based on the North American Industry
Classification System (“NAICS”) 722110 - Full-Service Restaurants.

This industry comprises establishments primarily engaged in providing food services to

patrons who order and are served while seated (i.e., waiter/waitress services) and pay after
eating. These establishments may provide food services to patrons in combination with
selling alcoholic beverages, providing carry out services, or presenting live nontheatrical
entertainment.

Demographics, consumer tastes, and personal income drive demand. The profitability of
individual companies can vary: while QSRs rely on efficient operations and high volume
sales, FSRs rely on high-margin items and effective marketing. Large companies have
advantages in purchasing, finance, and marketing. Small companies can offer superior
food or service. The industry is labor-intensive. (First Research)

Wages form a significant proportion of operating costs. The existence of a statutory

minimum wage in most states increases the need for players to keep other costs as lean as
possible, which in turn increases the importance of suppliers. A slight complication is that
in some states, foodservice employers are able to treat tips received by their staff as
 contributing to their wages; in such states, this policy reduces the impact of the minimum
wage from the employers' perspective. (Data Monitor)

Annual revenue per worker is less than $50,000.

Restaurants compete with companies that serve meals or prepared foods, including grocery
stores, warehouse clubs, delis, and convenience stores. In addition, restaurants compete
with home cooking.

Among FSRs, most establishments focus on Italian cuisine, steak, or seafood. Hamburger
joints make up a majority of QSR locations, along with pizza parlors and sub sandwich
shops. Industry revenue is roughly evenly split between FSRs QSRs.

In FSRs, waiters take orders, serve beverages and meals, present the check, and process
payment. FSRs include casual dining (full bar); family dining (limited bar); and fine dining
establishments.

Annual sales average $860,000 for FSRs.

An FSR's square footage and the number of seats and tables dictate how many patrons it
can serve (also known as table turns or covers) directly affects sales. Because the restaurant
industry is highly competitive, site selection is critical: companies may consider population
density, household income, competition, visibility, accessibility, and traffic.

Companies carefully manage inventory of perishable food products, such as fresh seafood
and dairy goods, to reduce losses due to spoilage.

Computerized information systems can improve and link food preparation and serving
operations. Touch screen ordering programs ensure accurate communication of customer
orders. Timing systems monitor meal progress and can alert staff if an order is running
behind schedule. Reservations programs maximize traffic flow and seating. Inventory
management systems track supply levels and can help reduce waste due to spoilage. Cost
accounting programs help companies determine the profitability of individual menu items.
Handheld point-of-sale (POS) devices allow servers to place orders and print checks
tableside, improving accuracy and reducing ordering time. Some handhelds can also print
customer checks and process credit card payments. (First Research)

Market Size
The US restaurant industry includes about 480,000 restaurants with combined annual
revenue of about $400 billion.

Industry Participants
Major participants include Major companies include McDonald's; YUM! Brands
(KFC, Pizza Hut, Taco Bell); and Darden Restaurants (Olive Garden, Red Lobster).
Main Competitors
The following restaurants are located within a five mile radius of THR:

 Hedarys Restaurant - This is a full service family restaurant established in

1977. The 5,000 SF restaurant run as a sole proprietorship, has 17 employees
and generates $1.7 million in revenue annually. Prices are higher than THR
and range from $8.00-$20 per entrée.
 Applebee’s - This is a chain restaurant offering standard fare. The food
quality is average. Entrées range from $6.99 - $20.
 Chili’s – This is a chain restaurant also offering standard fare. Food choices
are varied and prices range for $8-$21.
 Barbeque Ben’s – This is sole proprietorship offering primarily barbeque
item. Although the food offering does not compete directly with the subject,
the restaurant targets the same neighborhood families and has been operating
at the single location since 1978. Entrée range from $8.99-$12.
 Cracker Barrel – Located along Interstate 30, the restaurant is not located
within the target market area. However due to its menu offering of home
comfort food, the restaurant attracts a similar market, although Cracker
Barrel’s attract the tourist business as well. Entrées range in price from $7.99-
$14.

Market Segments
THR will appeal to a broad base of consumers in both the residential and business
community. The location selected for THR was chosen primarily to appeal to the
growing number of households in the area.

The suburb of Benbrook located in western Forth Worth, TX has a population of

over 51,000 according to the 2010 U.S. Census Report. The residential population in
the immediate area is comprised of a mixture of single family and multi-family
housing. The median household income is $46,532 for 2010 and estimated to be
$54,646 for 2015. (US Census).

Major employers include Union Pacific Railroad and Bank of America.

 (www.Business Decision. Info)

Market Tests
For the past 10 years, Jeff and Betty have been catering part-time. Their home-style menu
is very popular with family reunions. More often than not, the couple gets asked to open a
restaurant full-time so that patrons can return again and again.

Through Constant Contact (an online marketing program) the couple has stayed in touch
with their host and hostesses, and has been asked to return to provide catering services to
several repeat events. Home-Style Catering as also grown by word of mouth.

The couple also co-authors a home-style blog - attracting foodies nationwide and globally,
swapping recipes, compiling the most sought after home-style comfort recipes, and
identifying current trends, for example, providing expanded menus for children and for
those with food allergies.

The Wrights already have a customer base through their catering business and local blog
visitors. These customers will be the first to be contacted when they announce the grand
opening of the brick and mortar restaurant.

Target Market Segment Strategy

Jeff and Betty Wright selected the subject area for its restaurant primarily because of its
location to the very busy intersection of Cherry Street and Camp Bowie. The restaurant
located in a retail strip center is located on “going home” side of Camp Bowie. This will
encourage families tired from a day of work to stop in for a home cooked meal they can
enjoy – without the cleanup!

Cherry Road which runs North and South is connected to the busy Interstate 30 corridor, ½
mile north of the shopping center. Camp Bowie which runs East and West connects to the
newer western suburbs of Fort Worth.
Market Needs
The Benbrook area is in great need of a family style restaurant. This section of
Camp Bowie is commonly referred to as “fast food alley” The selection of fast food
is vast however; the area is limited on its family restaurant choices. THR’s nearest
competitor, The Hedary Restaurant is located over 5 miles away from the location.
Further, established in the 1970’s the Hedary Restaurant’s customers are older than
the targeted family group THR focuses on.

Market Trends
According to the National Restaurant Association, the top 10 trends for are:
1) locally sourced meats and seafood,
2) locally grown produce,
3) sustainability as a culinary theme,
4) nutritious kids’ dishes,
5) hyper-local items, (networked locally grown – like a Craigslist for restaurants)
6) children’s nutrition as a culinary theme,
7) sustainable seafood,
8) gluten-free allergy conscious items,
9) back to basics cuisine, and
10) farm brand ingredients.

Market Growth
US consumer spending on services, an indicator of restaurant sales, rose 1.8 percent
in November 2011 compared to the same month in 2010. The average US retail
price for diesel and regular gas, which influences discretionary consumer spending
on eating out, rose 13.1 percent and 9.3 percent respectively in the week ending
January 16, 2012, compared to the same week in 2011. US tourism spending for
food services and drinking places, an indicator for restaurant revenues, increased 6.1
percent in the third quarter of 2011 compared to the same period in 2010. (First
Research)

Positioning
Consumers believe that meals at home are healthier and higher quality than eating at
restaurants. At THR, we will position ourselves as the premier home-style restaurant by
preparing quality home cooked meals with simple wholesome ingredients. Jeff and Betty
Wright will also provide home cooked fare that appeals to the current trends of healthier
food and offer menu selections which will appeal to this group. THR will be positioned as
the premier traditional home-style restaurant.