Business Plan for Diverso Restaurant 1

Diversö Restaurant Business Plan

Executive Summary

Diversö will be a restaurant and exciting Dinner Show located in Senai, Johore, that celebrates the era of cultural refinement, social elegance, and general prosperity in the last decades of the 19th and first decade of the 20th centuries. The exuberance of the "60’s, 70’s, 80’s and 90’s" era will be rekindled as we model our restaurant.

The decor will be similar to that of the restaurant/dance hall/theatres of 1890s, and feature artwork of the Impressionists such as Dato’ Mohd Nor Khalid (Lat), Amron Omar, Md Sani Mohd Dom (Pak Sani),  Abdul Rahim Muda (Imuda),  Mazli Bin Ibrahim (Gayour) and  Ibrahim Anon (Ujang). Hosting and serving staff will dress in period costume.

The combination of a dance hall, bon vivants, famous artist and lively music is why our restaurant is so dynamic. The exciting and exhilarating aspect of this restaurant is that it transcends beyond decorations and moves into a real life, first person experience - face to face. From the singing aloud of ditty's, to the hearty, back-slapping laughter or breathtaking can-can dancing - every second is a treasured, emotional meeting with Leftenan Adnan, Saloma and Upin Ipin "look-alikes."

Our menu is a varied, international, tasteful extravaganza. Each page is highly illustrated with artists' drawings of the regional cuisine, a tiny map of the world showing the region and indigenous ingredients. The majority of the menu is the cuisine of Malaysia, France and America, though we will offer specialties from Japan, Korea, Philippines, Italy, Germany,Mexico, Spain and Middle East. A few pages are build for VIP place such as “Istana” stylings where our Head Chef served the First Family.

Diversö is the first in what hopefully will become a chain of similarly themed restaurants. It offers a new and exciting concept that is already being done in other successful era's such as, "Capitan Hook" www.capitanhook.com and "Medieval Times" www.medievaltimes.com. These concepts are expanding with cash driven proofs of winning financial operation. Originally laughed at and stereotyped as ridiculous for a dining concept, these outlets are reaching new potential and breaking previously set sales figures. Medieval Times started as a single location and opened its eighth restaurant and show in March, 2004. We aim to attract customers from the same market niche, but with a Impressionist/Jimi Asmara theme.

Executive Chef Kashi Mahadi will lead the management team. Chef Kashi is retiring from a 30-year military career during which he won many awards, served as Executive Chef to the Prime Minister of Malaysia, and managed multiple Malaysian government restaurant/food service venues worldwide.

1.1 Mission

Diversö offers an impressive, blockbuster revue of international food, fare and drink centered around the high culture and exuberant night life of the 19th century of Malaysia. Our combination is wonderful food and Impressionist history. This revue also includes our shows, acts, skits, original music and entertainment for the customer - whom we live to impress and make happy.

In each and every facet of all that we do - the focus remains on the customer. Likewise, our employees never work "for us" - rather they work "with us" - and as such - they are our customers also. We are all serving each other in some capacity.

Our focus includes community service, involvement and family. We will always be deeply involved with the community and people of Johore. Diversö is also an excellent place to work, a professional environment that is challenging, rewarding, creative, and respectful of ideas and individuals. Diversö ultimately provides excellent value to its customers and fair reward to its owners and employees.

1.2 Keys to Success

1.     Production of a high quality menu and superior ingredient sourcing.

2.     Training of a crack workforce, with paper lists that detail daily actions, and managerial follow-up that ensures winning goals are completed. Food production books, recipes, management routine, records and returns will be detailed.

3.     Practice by dinner show participants and actors will produce a fantastic show. Continued excellence in performance will come in diversity of workforce training and a, "Qualification Card," system - similar to the system successfully used by the Royal Malaysian Navy.

4.     Distribution of some profits to the workforce will breed cyclical results that exceed first five year goals.

5.     Unusual interior design and outdoor landscaping.

6.     The actors and staff learn habits, quips, funny answers and anecdotal comments for customer enjoyment. Similar in concept to the highly profitable and world known, "Ed Debevics" "50's" diner in Chicago.

7.     Excellence in fulfilling the promise - reliable, trustworthy expertise in operation, leadership and management of the show and restaurants.

8.     Developing visibility to generate new business leads.

9.     Leveraging from a single pool of expertise into multiple revenue generation opportunities: bar, restaurant, catering, show, and events.

Among the Malaysian Restaurant Association highlights for this year in the restaurant industry are:

• The restaurant industry anticipated sales of RM44.1 billion equal 4% of the Malaysian gross domestic product.
• This coming year will mark the 10th consecutive year of real growth for the restaurant industry.
• The number of restaurant locations in the Malaysia will grow to 100,000.
• The restaurant industry will employ 3 million people, making it the largest private-sector employer in the nation.
• Continued expansion will occur, driven by Malaysian’s need for convenience and socialization, and a healthy increase in disposable income.
• New menu items in response to diners' increasingly sophisticated tastes, and heightened interest in health and nutrition.
• Greater efforts by lawmakers to regulate restaurants.

1.3 Objectives

1.     Build and create a restaurant that celebrates the Diversö  in Malaysian history. Celebrating the high society of the era will be done via kits, acts, drinks, music, demonstrations, food, a small museum, fantastic show and dance. The measurable objectives will be:

o    Opening night in full regalia and profitability within two months

o    Gross sales receipts of RM1,000,000 by 12 month

o    Food costs not to exceed 20% total operation

2.     Deliver a stunning, unbelievable, international menu to the local and summer "swell" community that produces 97% satisfaction surveys or higher and profits in excess of 200% Return on Investment (ROI). Surveys to be done for sixteen weeks by an independent third-party review agency.

3.     The international menu will reflect the Diversö era of the late 19th and early 20th centuries. This objective will be reviewed by a number of friends who are Presidents and Continental Directors of their respective countries in the World Association of Cooks Societies (WACS)(www.wacs2000.org).

4.     Continuous analysis and outsider inspections will be held to fine-tune objectives via goal planning, Directives, Operations, Objectives ands Milestones (DOOM) and weekly Best Objectives Review Evaluation (BORE) meetings.

5.     Objectives will be handled in a planning and strategy sense espoused by business leaders. Business will be conducted monitoring our Profit and Loss statement numbers, local business owners of restaurants and their own marketing ploy, advertising and profits. Consultants will be on minor, as needed retainers not to exceed RM 6,000 per annum.

Company Summary

Diversö is a restaurant with lunch and dinner menus and a theme show for dinner only. It welcomes artists, historians, living history interpreters, and re-enactors to its grounds for, plein aire painting sessions, historical shows and events. It features the culinary adventures and exquisite tastes of late 19th century Malaysian as prepared under the exacting standards of Executive Chef Kashi Mahadi.

Chef Kashi retired as a Senior Chief Petty Officer and was the first ever Malaysian Culinary Federation Executive Chef in Camp David's history. As a Navy Executive Chef he excelled in the history of Malaysian at the Catoctin Mountain Retreat. He later was asked by the Navy to live around the world, in Asia, Arabia and in Europe - cooking for Admirals in Japan, at NATO and for Lords, Prime Ministers, Kings and Queens, royalty, stars and public personalities. His food is fully representative of direct experiences - worldwide, with international culinary favorites learned firsthand.

2.1 Company Ownership

Diversö has been solely chartered as a Upstate LLC corporation based in Border County, owned by its principal investor and principal operator, Executive Chef Kashi Mahadi. It is expected to drop the LLC status within three to five years and seek Sub-chapter S, followed by C status, pending changing tax laws, the economy and review of profit and loss statements. Additional investors may bring forward additional operations assistance and staff.

2.2 Start-up Summary

Start-up expenses include legal costs, artwork, property lease or purchase, remodeling, logo design, computer software, stationery, liquor license, and related expenses.

Start-up assets required include short-term assets (office furniture, tablewear and glasswear, signage, and small kitchen equipment and utensils, kitchen and server uniforms and costumes etc.) and initial cash to handle the first few months of operations - as sales and accounts receivable play through the cash flow. Inventory for the first two weeks of operations will need to be ordered and delivered in the week prior to opening.

Long-term assets include office computers, serving staff workstations, kitchen terminals, POS terminals, security and fire alarm systems, shelving, food storage.

This plan assumes moving into a retrofit of a former restaurant where tables, chairs and kitchen stoves and equipment are in place. If that is not available an additional RM50, 000 to RM150, 000 will be needed for a scratch start.

Start-up Requirements
Start-up Expenses
Legal and Attorney's Fees	RM12,288
Stationery and Office Supplies	RM12,341
Brochures	RM3,382
Consultants	RM3,900
Insurance	RM9,809
Remodeling Expenses	RM19,400
Utilities	RM2,000
Liquor License	RM100,000
Rent or Mortgage 1st month/startup	RM14,000
Research and Development	RM1,300
Total Start-up Expenses	RM178,420
Start-up Assets
Cash Required	RM50,000
Start-up Inventory	RM75,000
Other Current Assets	RM17,000
Long-term Assets	RM175,000
Total Assets	RM317,000
Total Requirements	RM495,420

Services

Diversö offers a first-of-its-kind in the area entertainment and dining concept with excellent, tasty food. The interaction with live human actors from 1950’s Malaysian is fascinating. The concept is not content to just deliver the service of good food and friendliness though. It offers colorful, haute culture actors by day, and an entertaining, optional Moulin de la Galette evening dinner show that will amaze and delight. Our table side service is extremely fun and unique. The catering will also entertain and thrill customers (i.e. bringing the show to their event).

Market Analysis Summary

Our main target market is quite simply the well known vacationing family or vacationing friends, lovers and fun-seekers. A smaller sub-section of locals will visit us as well.

The local season resident population is 100,000 people (Source: Malaysian Census).

• The summer season visitor attendance is 0.8 million visitors of which:
• 75.5% are families with two or more children
• 17.6% are single
• 2.6% are senior citizens
• 78.3% are between the ages of 28 and 54
• 56.34% earn more than RM32,000 per year
• The average stay is 4.6 days
• Spending per day varies between RM78 to RM300

Tourism Ringgit generated in Johore are RM2.5 billion (Source: Johore Tourism Official Portal)

TOURIST SEASON IS BASICALLY FIVE MONTHS LONG - FROM MAY TO SEPTEMBER

• Restaurants generate RM0.899 billion
• Retail generates RM33 million
• Lodging generates RM0.594 billion
• Automobile generates RM60 million
• Recreation generates RM29 million
• Transportation generates RM0.5 million

Johore at a Glance as of 2012 - The Official Border County Government Report

PEOPLE

• 102,326 year round residents with an estimated summer population of 614,261
• 5% of the people are under 5 years old
• 22% percent are under 18 years old
• 20% are over the age of 65 years old
• Per capital income is RM12,172
• Median household income is RM25,591 and is increasing
• There are 91,000 housing units consisting of 46% year round residents and 54% used for seasonal and recreational

GEOGRAPHY

• Encompassing 44.16 square miles of land area located at the southern tip of Upstate
• Made up of 12 municipalities
•  5.6 miles of white sandy beaches and islands with thousands of acres on the mainland preserved for open space, farmlands and natural conservation
• With over 70 square miles, Village Township is the largest geographically of all the municipalities
• Kota Tinggi Region is the most populated with almost 23,000 people

ECONOMY

• Tourism represents the number one industry generating almost $1 billion a year in revenues
• Total labor force of 23,201 people
• There are 1,993 private establishments
• The Services sector of the economy employs 37% of the labor force followed by the Trades that employ 36%
• Government employs 15% of the labor force

4.1 Market Segmentation

We use this topic to explain the Market Analysis table and chart, below. Our analysis is based on a list of potential customer groups, each of which is a market segment.

• The family segment looking for fun while on their week of vacation.
• The local residents included in the summer population looking to see something new or to take guests in town out to a great, proud place. Local residents are increasing with condominium ownership and increased building.
• Long distance drivers coming in especially to experience our dinner show. This last geographic segment will normally travel one driving day or up to 150 miles for a short weekend stay.

There are two specific sub-groups of clientele within each of the listed segments: the lunch crowd, casual drinking (sodas specifically, market encouraged), and our nightly "Admiral's Table" crowd. Both of these segments (especially sodas drinkers) are slightly more sophisticated; average coffee drinking age is about 25 to 34-plus years old while the dining room averages 35 to 54-plus. Household income is upper middle, in the RM30,000 and up range. We hold these specific two groups to be similar to McCormick & Schmick's - a close match to our offerings (data as reported in Market Watch, October, 2003).

Some of the more recent trends include correlating behavioral patterns and so-called psychographics, which produced the famous classification of, "yuppies," as young urban professionals, and of course the, "baby boomers," with certain buying patterns. We believe both of these segments will frequent Diversö.

Teenagers sort themselves into marketing groups with names like, "preppies, dudes, gothic, jocks, and skaters." Each of these labels actually stands for certain sets of behavior patterns, and has some value in segmentation. These segments will attend our offerings in groups for class trips and major events. They also will attend with their parents for general dining and we plan on marketing directly to their segment. An example of successful teenager marketing is the offering of bottled sodas instead of just fountain service. Teenagers are highly ranked for their liking of bottled soda over all other categories - due to its extra pep and fizz.

Marketing one simple item to a specific segment generates sales across the board. Especially when teens encourage parents to "go to Diversö  tonight." This is only one, direct example of techniques to be employed for market domination via segmentation understanding. We have other areas and methods scheduled. Many are based on award-winning experience, financial success, and published books by noted experts.

Market Analysis
		Year 1	Year 2	Year 3	Year 4	Year 5
Potential Customers	Growth						CAGR
Weekly summer population	5%	225,000	235,000	245,000	255,000	265,000	4.18%
Weekly winter population	5%	4,808	5,008	5,208	5,408	5,608	3.92%
Long distance customers	2%	5,000	8,000	12,000	15,000	20,000	41.42%
Total	5.47%	234,808	248,008	262,208	275,408	290,608	5.47%

4.2 Target Market Segment Strategy

We cannot survive just waiting for customers to come to us. Instead, we must focus on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future. We will attract customers with live performances and distribution of brochures.

Therefore, we need to focus our marketing message and our product offerings. We need to develop our message, communicate it, and make good on it. The Marketing Strategy topic contains the details of our tactics and programs.

4.3 Service Business Analysis

The restaurant and entertainment show business is dynamic and fast paced. It offers exciting food and dining experiences with high profit margins. Interested owners who have extensive multi-decade experience will almost always do well. Those who have theater and acting experience, combined with 20 to 30 years of business success, will do extremely well in profit, employee and customer happiness. This service business provides rewards via customer satisfaction surveys.

4.3.1 Competition and Buying Patterns

In one part of the restaurant market competition depends on reputation, advertising, and the dining experience of the customer. In another, competition centers around location and parking. In most cases the restaurant industry strongly relies on word-of-mouth recommendations over advertising. Word of mouth is the secret in retaining long-term satisfied customers. This, combined with changing drama shows each year, and other side acts, will ensure that diners return.

Customers will choose our business over others from the first time they see our actors dressed up in the mall handing out brochures or in parking lots staging mini-shows. We have extensive experience with free publicity. For instance, Chef Kashi recently appeared on the Today show. He has also filmed many other shows all over the world and in a number of different languages.

Appearances on the public boardwalks, streets and anywhere that is free - such as at huge events, competitions, conventions and more, will attract the public. Customers will definitely choose us due to our personal and face-to-face interaction in a dining experience. Host and serving staff will dress in period costumes, and those with a yen toward acting and performance will be encouraged to play the parts of denizens, during the Malaysian' cultural heyday. Staff will regularly portray famous members of Parisian high society including Impressionist painters, theatre doyens, writers, philosophers, etc.

All too often the problem with today's restaurants is that they look great, have waterfalls or beautiful physical decoration, or great motifs and themes, but are missing the human element...the host or server who is unpredictable and physically shakes your hand. The dining experience should not be another video simulator or Nintendo game. Even serious businessmen and businesswomen can get excited over a corporate event held in our Diversö restaurant where they can talk with actors who believe that they are back in that era (called first person acting). What might someone say and what answer might come back? Something snappy or robust?

The buying patterns of our customers will be repeat patterns. Our pricing for food, taste, and product delivered will exceed local expectations. We rely on the world tastes and travels of Chef Kashi and team - difficult to equal or duplicate.

Strategy and Implementation Summary

Diversö will focus on attracting target customers who are usually, fun-seekers, couples and families. We will offer a dynamic menu of global cuisine, an extensive drink list, a staged show and entertainment.

5.1 Competitive Edge

Our competitive edge will be to cut wide open the competition with our amazing and exciting actors. We will be different from all others because of our creativity, presentation, marketing, advertising and delivery. We will stand out with sustainable value, something that we can maintain and develop over time - the transition from real life into fantasy escape. The competitive edge, that puts us ahead of most competitors is the opportunity to live and interact in history or another world. Stepping into our world will reveal discussion with people of the time and physically doing things with them - while enjoying a great meal and a show.

The ultimate edge is that we allow people to be in our show and to walk a few hours or days in history's shoes. This is the opportunity for customers to gain instant fame on stage with the crowds cheering and clapping. That is a competitive edge, with benefit, that all humans dream of. But, beyond that, we also will offer the opportunity to live and work in our historic world for a reasonable price.

Patrons are not forced to attend the dinner show. They can still have dinner in our separate dining room.

Chef Kashi Mahadi experience provide acclaim, reputation, and credibility when combined with his 30 years of Naval service.

We start with a critical competitive edge: there are few competitors we know of that can claim anywhere near as much hype, attention to detail and people, excitement, dancing, singing or showmanship with historic proportions. The closest thing to our platform in this geographic area is The Capsized Sailor—Seafood on the Pier. Our positioning on this point is very hard to match, as long as we maintain this focus in our strategy, marketing, business development, and fulfillment. We are aware that the tendency to dilute this expertise with premature expansion will dull the importance of our competitive edge. Also, excessive changing of our plan and rollout could break the creative side of the operation.

5.2 Marketing Strategy

Marketing will be our life blood of crowd draws and excitement. Our Marketing Strategy has been explained a bit already. Our Sales Strategy is the easiest of our plans.

Our Marketing Strategy first and foremost is born out of three governing functions:

1.     An indignant refusal to adopt typical high cost advertising schemes in print, television or internet campaigns. Throwing tens of thousands of ringgit at billboards or magazines is a crutch for those less creative. The impact we can have with other creative means will be impressive.

2.     "Beyond belief," word-of-mouth and first person character advertising. Guaranteed to affect image, awareness and propensity to buy. A meeting with one of our six historical Impressionist painters will not be forgotten.

3.     Ingenious strategic placement and appearance into market at the right time and stunning venue with our actors and, "Boulevardiers." One of the easiest ones is the strolling the promenade and boulevard, handing out leaflets. Other events will include partnering with various menus and spirit distributors for special promotions.

5.3 Sales Strategy

Sales in our business is customer service. It is repeat business. One doesn't just sell a glass or bottle and boost the check price, one develops a proposal that works for the client, that convinces him or her to crave the bottle. Direct-in house sales classes will be held to teach staff how to "get in with the smile," "enjoy laughter with customers" and then go for the boost in the check price by selling that dessert or drinks. We can also make money with our extensive selections of tea, coffee, cheese and cigars.

With our innovative, drama sales platforms wallets will fly out of pants pockets and purses. Our independent tests and studies show that what sells most is human interaction and excitement. Paying attention to people, listening and talking with them, admiring their face and clothes - this adoration - this sales truth of genuine, heartfelt, over-the-top achievement - this is what makes dynamic drama sales happen. Our goal is extraordinary attention to reveal extraordinary sales.

We must always be aware of the big-company feeder phenomenon of the split between selling the restaurant and failure to fulfill the sale with entertainment and luscious food, which leads to client dissatisfaction. The human sale should be developed and scoped, sold, and fulfilled by the same people. If you see, run over to meet and greet Impressionist painter Dato’ Lat and his signature of Kampung Boy on the mall as you are shopping, then you expect to see him that night at the restaurant. Our customers should never buy into a sale from one partner and have it delivered by anybody other than that same partner. The promise shall be fulfilled.

5.3.1 Sales Forecast

Lunch Hour Sales are figured on starting in April of 2013 with 27 available days of weather x 190 seating (based @ 200 seats avail total over a three hour period with 1.0 turnovers - 10:30 AM to 1:30 PM) at RM10.00 average check take. In May this rises to 220 covers or a 1.1 ratio. For the months of June, July and August this escalates to full capacity of the 200 seats and two turnovers, with a cap of 385 out of 400 in four hours and 27 days of good weather. The Direct Cost of Sales in this category is 38% of Sales Forecast.

Dinner Sales are figured on starting in April of 2013 with 27 available days of weather x 110 seating (based @ 200 seats avail total over a four hour period with 1.0 turnovers - 6:00 PM to 10:00 PM) at RM22.00 average check take. In May this rises to 140 covers. For the months of June, July and August this escalates to full capacity of the 200 seats and two turnovers, with a cap of 385 out of 400 in four hours and 27 days of good weather. The Direct Cost of Sales in this category is 36% of Sales Forecast.

Dinner Show Sales are figured on starting in April of 2013 with 27 available days of weather x 101 seating (based @ 340 seats avail total over a three hour period with 1.0 turnovers - 7:00 PM to 10:00 PM) at RM50.00 fixed ticket price. In May this rises to 201 covers. For the months of June, July and August this escalates to full capacity of 320 of the 340 seats and 27 days of good weather. The Direct Cost of Sales in this category is 25% of Sales Forecast.

Bar Sales are figured on 50 people per night at RM19.00 for 15 nights in April, May, September and October. In June, July and August the bar will book out at 200 people per night and be filled with excitement and games from 6:00 PM to 2:00 AM. Average take is expected to be RM29.00 per person. One of the primary pulls will be the two sunken pool tables. The Direct Cost of Sales in this category is 36% of Sales Forecast.

Be in the Show Sales are figured on 10 participants per night at RM58.00 with 27 days of good weather. The Direct Cost of Sales in this category is 25% of Sales Forecast.

Catering Sales are not desired to be our strong suit or a strong sales platform. But, we do expect to do at least two events in the summer including the Boulevarier Festival. The Direct Cost of Sales in this category is 55% of Sales Forecast.

High Tea with a Lady, Wives of the Impressionist Painters Sales will be brisk at 30 people per afternoon for 27 days of good weather each month. Prix Fixe will be rm18.00 per person from 2:00 PM to 4:00 PM each day. The Direct Cost of Sales in this category is 38% of Sales Forecast.

Sales Forecast
	Year 1	Year 2	Year 3
Unit Sales
Lunch Sales	78,975	86,873	95,560
High Tea Sales	9,720	10,692	11,761
Dinner Sales	66,335	72,969	80,265
Dinner Show Sales	68,074	74,881	82,370
Bar Sales	28,350	31,185	34,304
Be In the Show Sales	3,240	3,564	3,920
Catering Sales	4	4	5
Total Unit Sales	254,698	280,168	308,185
Unit Prices	Year 1	Year 2	Year 3
Lunch Sales	RM14.00	RM14.98	RM16.03
High Tea Sales	RM18.00	RM19.26	RM20.61
Dinner Sales	RM24.00	RM25.68	RM27.48
Dinner Show Sales	RM55.00	RM58.85	RM62.97
Bar Sales	RM28.57	RM30.57	RM32.71
Be In the Show Sales	RM65.00	RM69.55	RM74.42
Catering Sales	RM7,250.00	RM7,757.50	RM8,300.53
Sales
Lunch Sales	RM1,105,650	RM1,301,350	RM1,531,689
High Tea Sales	RM174,960	RM205,928	RM242,377
Dinner Sales	RM1,592,040	RM1,873,831	RM2,205,499
Dinner Show Sales	RM3,744,070	RM4,406,770	RM5,186,769
Bar Sales	RM810,000	RM953,370	RM1,122,116
Be In the Show Sales	RM210,600	RM247,876	RM291,750
Catering Sales	RM29,000	RM34,133	RM40,175
Total Sales	RM7,666,320	RM9,023,259	RM10,620,375
Direct Unit Costs	Year 1	Year 2	Year 3
Lunch Sales	$5.32	$5.53	$5.81
High Tea Sales	$6.84	$7.11	$7.47
Dinner Sales	$8.64	$8.99	$9.43
Dinner Show Sales	$13.75	$14.30	$15.02
Bar Sales	$10.29	$10.70	$11.23
Be In the Show Sales	$16.25	$16.90	$17.75
Catering Sales	RM3,987.50	RM4,147.00	RM4,354.35
Direct Cost of Sales
Lunch Sales	RM420,147	RM480,648	RM555,149
High Tea Sales	RM66,485	RM76,059	RM87,848
Dinner Sales	RM573,134	RM655,666	RM757,294
Dinner Show Sales	RM936,018	RM1,070,804	RM1,236,779
Bar Sales	RM291,600	RM333,590	RM385,297
Be In the Show Sales	RM52,650	RM60,232	RM69,567
Catering Sales	RM15,950	RM18,247	RM21,075
Subtotal Direct Cost of Sales	RM2,355,984	RM2,695,245	RM3,113,008

5.4 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn't show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.

Milestones
Milestone	Start Date	End Date	Budget	Manager	Department
Business Plan	10/18/2004	1/23/2005	RM709	J. Oignons	BOD
Property scouting	12/18/2003	6/1/2004	RM580	A. Spergras	Property
Interior Design	8/30/2004	10/30/2004	RM11,548	T. Matto	Gourmet
Print Design & Production	9/22/2004	11/12/2004	RM45,723	O. Bergene	Media & PR
Script writing	9/22/2004	9/22/2004	RM4,000	C. Wensleydale	Theatrical
Menu rollout	2/4/2005	4/12/2005	RM430	J. Oignons	F & B
Stage design and build	2/2/2005	3/28/2005	RM19,050	C. Wensleydale	Theatrical
Legal rollout	1/1/2004	6/1/2004	RM22,288	S. Prouts	Legal
Design sketches	12/22/2004	1/22/2005	RM300	O. Bergene	Media & PR
Logo design	1/22/2005	2/12/2005	RM100	J.Oignons	Media & PR

The " Diversö " website will be the virtual business card and portfolio for the company, as well as its online "home."

It will showcase the 1890s Malaysian high-society decor of the restaurant, and the exuberant, social elegance show and costumes of our staff.

The website needs to be a simple yet classy and well designed website that, at the same time, is in keeping with the latest trends in user interface design. A site that is too flashy, or tries to use too much of the latest Shockwave or Flash technology can be over done, and cause potential customers to look elsewhere for online excitement as well as a meal or show. A particular, small section will offer a stunning and robust Flash MX presentation of the gay 80s Malaysian Impressionist arts scene.

To further show off its expertise the website may create a resources area, offering articles, research, re-enacting tips and sales to interested parties. We will accept reservations online as well as partner with Amazon Malaysia, PayPal and book sellers to sell products while holding no inventory. Of course, all of the items will be totally Impressionist/Moulin Rouge/Age of Elegance in nature. We will accept all credit cards via our merchant accounts.

The key to the website strategy will be combining a very well designed front end, with a back end capable of recording leads and proposal requests, as well as running our own online marketing program.

We will sell targeted advertising to specific market groups, as well as partnering with online retailers to sell relevant products to the users.

6.1 Website Marketing Strategy

Marketing for us will center primarily around distribution of our URL, initially via paper means. That will plug and pull unique hits on our real time database reporting and stats. Our restaurant concept will not rely on achieving first hit status for keywords to draw customers into the premises. Rather, a visit to the website will most always be an after-the-fact event. For instance, after visiting the restaurant or after reading our brochure or after hearing our commercial on the radio.

We will garner some specific unique entry hits via usage of our time proven keyword and html skills. These will result in number one placement across certain keywords and dozens of engines, worldwide. Such is our proven success of using numerous URLs, keyword generation and testing with the number one rated international "Web Position Gold 2" program. In addition to that, whole, separate websites are built specifically for precise search engines. The most intelligent designers are able to achieve #1 ranking via weekly updating across 1,200+ engines. Our primary goal model is the Google engine.

We will be linked to from hundreds of websites, including the Greater Johore Chamber of Commerce and Malaysian Chamber of Commerce.

6.2 Development Requirements

The website will be initially developed with few technical resources. A simple hosting provider, www.datakl.com services, will host the site and provide the technical back end out of Teknologi Park Bukit Jalil, Malaysia.

We will work with a contracted user interface designer to develop the simple, classy, yet Internet focused site. The user interface designer will work with a graphic artist to come up with the website logo, and the website graphics. A number of articles, photos and features will be provided based on our recreation of the 1900s Malaysian Boulevardier lifestyle.

The maintenance of the site will be done by the owner. As the website rolls out future development such as newsletters and downloadable games, a technical resource may need to be contracted to build the high-end items.

Management Summary

The initial management team depends on the founder, Kashi Mahadi and his recruitment of managers. As we grow, we may take on additional consulting help, plus graphic/editorial, sales, and marketing. By opening Diversö,  management team will be composed of:

Executive Chef Kashi Mahadi will manage the kitchen staff and oversee the financials

Serving Staff manager – Mohd Malik Saidi

Sommelier/Bar manager – Zaimi Azham

Performance manager – Nur Inca Medina

* Management team resumes, confidential and proprietary information have been removed from this sample plan.

7.1 Personnel Plan

The following table summarizes our personnel expenditures for the first three years, with compensation increasing from less than RM334K the first year to about RM550K in the third.

Employees include hosts, kitchen staff, serving staff, performance staff, bartending staff, and dishwashing/cleanup staff, sufficient to cover the hours of operation, prep-time and cleanup. Restaurant serving hours begin at 12:00 PM, and the bar closes at 3:00 AM. A Bookkeeper/Office Assistant will also be hired.

We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. The detailed monthly personnel plan for the first year is included in the appendices.

Personnel Plan
	Year 1	Year 2	Year 3
Executive Chef Kashi Mahadi-owner	RM59,000	RM 61,950	RM 65,048
Serving Staff Manager	RM 36,000	RM 37,800	RM 39,690
Sommelier/Bar Manager	RM 36,000	RM 37,800	RM 39,690
Performance Manager	RM 36,000	RM 37,800	RM 39,690
Host/Serving Staff	RM 129,024	RM 135,475	RM 142,249
Kitchen Staff	RM 169,344	RM 177,811	RM 186,702
Performance Staff	RM 124,416	RM 130,637	RM 137,169
Bar Staff	RM 32,256	RM 33,869	RM 35,562
Bookkeeper/Office Assistant	RM 12,000	RM 12,600	RM 13,230
Total People	0	0	0
Total Payroll	RM 634,040	RM 665,742	RM 699,029

Financial Plan

We are assuming a low start-up funding figure of approximated RM240,000. The business will grow exponentially by a net worth of about two million ringgit per year and this growth is based off of sheer cash profits and managerial excellence. Growth will be self financed. No additional funding will be needed.

8.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendices. From the beginning, we recognize that our direct marketing will be critical to advertising, a factor we can influence easily. Weather and catastrophe cannot be so easily planned on and would delay project by a year (hurricane, tornado, etc...) At least we are planning on the potential problem, and dealing with it.

Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Two of the more important underlying assumptions are:

1.     We assume a strong economy, without major recession.

2.     We assume funding will be maintained and strongly backed.

One item of particular note is that we have set our cost of goods for food sales at high percentage factors of 29% to 34%. The majority of seasoned managers would raise an eyebrow at those percentages. We intend to beat these percentages and therefore bring in a windfall on our P & L. One important assumption is our capability to decrease food waste and costs.

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	10.00%	10.00%	10.00%
Long-term Interest Rate	8.20%	8.20%	8.20%
Tax Rate	25.00%	25.00%	25.00%
Other	0	0	0

8.2 Start-up Funding

Start-up funding requirements come to just shy of RM290,000. This presumes we can move into an established, equiped restaurant space. Expenses and asset purchases will increase dramatically if we must fully outfit and equip a space for its first use as a restaurant.

Funding will be through a combination of owner investment, outside investment, and long-term loans. A small amount of current borrowing (credit card purchases) complete the start-up funding.

Start-up Funding
Start-up Expenses to Fund	RM 178,420
Start-up Assets to Fund	RM 317,000
Total Funding Required	RM 495,420
Assets
Non-cash Assets from Start-up	RM 267,000
Cash Requirements from Start-up	RM 50,000
Additional Cash Raised	RM 420
Cash Balance on Starting Date	RM 50,420
Total Assets	RM 317,420
Liabilities and Capital
Liabilities
Current Borrowing	RM 5,420
Long-term Liabilities	RM 40,000
Accounts Payable (Outstanding Bills)	RM 0
Other Current Liabilities (interest-free)	RM 0
Total Liabilities	RM 45,420
Capital
Planned Investment
Owner	RM 50,420
Investor	RM 400,000
Additional Investment Requirement	RM 0
Total Planned Investment	RM 450,420
Loss at Start-up (Start-up Expenses)	(RM 178,420)
Total Capital	RM 272,000
Total Capital and Liabilities	RM 317,420
Total Funding	RM 495,840

8.3 Business Ratios

The following table shows the projected businesses ratios. We expect to maintain healthy ratios for profitability, risk, and return. The Standard Industrial Classification (SIC) Code for the industry we chose is French Restaurant (5812.0104), though there is no SIC that accurately describes our offering platform of dinner theatre. We used the Industry Ratios report for Eating Places (5812) to generate the industry profile shown in the following table.

Ratio Analysis
	Year 1	Year 2	Year 3	Industry Profile
Sales Growth	0.00%	17.70%	17.70%	7.60%
Percent of Total Assets
Inventory	1.79%	1.00%	0.73%	3.60%
Other Current Assets	0.46%	0.22%	0.14%	35.60%
Total Current Assets	95.58%	98.01%	98.84%	43.70%
Long-term Assets	4.42%	1.99%	1.16%	56.30%
Total Assets	100.00%	100.00%	100.00%	100.00%
Current Liabilities	5.68%	4.70%	3.46%	32.70%
Long-term Liabilities	0.90%	0.33%	0.13%	28.50%
Total Liabilities	6.58%	5.03%	3.60%	61.20%
Net Worth	93.42%	94.97%	96.40%	38.80%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	69.27%	70.13%	70.69%	60.50%
Selling, General & Administrative Expenses	32.12%	34.20%	34.10%	39.80%
Advertising Expenses	1.12%	1.10%	1.08%	3.20%
Profit Before Interest and Taxes	56.94%	59.34%	61.10%	0.70%
Main Ratios
Current	16.82	20.84	28.56	0.98
Quick	16.50	20.63	28.35	0.65
Total Debt to Total Assets	6.58%	5.03%	3.60%	61.20%
Pre-tax Return on Net Worth	126.67%	74.25%	56.06%	1.70%
Pre-tax Return on Assets	118.34%	70.52%	54.04%	4.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	42.67%	44.48%	45.81%	n.a
Return on Equity	95.01%	55.69%	42.04%	n.a
Activity Ratios
Inventory Turnover	24.00	38.04	38.21	n.a
Accounts Payable Turnover	17.85	12.17	12.17	n.a
Payment Days	27	24	28	n.a
Total Asset Turnover	2.08	1.19	0.88	n.a
Debt Ratios
Debt to Net Worth	0.07	0.05	0.04	n.a
Current Liab. to Liab.	0.86	0.93	0.96	n.a
Liquidity Ratios
Net Working Capital	RM 3,313,676	RM 7,081,367	RM 11,450,067	n.a
Interest Coverage	1,354.42	2,241.85	3,837.09	n.a
Additional Ratios
Assets to Sales	0.48	0.84	1.13	n.a
Current Debt/Total Assets	6%	5%	3%	n.a
Acid Test	16.50	20.63	28.35	n.a
Sales/Net Worth	2.23	1.25	0.92	n.a
Dividend Payout	0.03	0.06	0.10	n.a

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