Tai Kai. Tai Kai Business Plan Key West, Florida Dan Pieroni, Owner
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1 Tai Kai Business Plan 2012 Tai Kai Sushi 423 Hibachi Wall Street Bar Key West, Florida Dan Pieroni, Owner Ryan Goff, Owner Josh Cusack, Owner Table of Contents Executive Summary... 2 Part I: Business Description, Vision, and Mission... 3
2 Part 2: Competitive Market Analysis... 4 Part 3: The Management Team... 6 Part 4: The Marketing Plan... 8 Part 5: The Financial Analysis
3 Executive Summary Tai Kai will be located Key West, Florida in the downtown area. We will be known for our sushi. Tai Kai will only use fresh fish, meats, and vegetables, the premium foods. The prices will be affordable. There will be 8 hibachi grills inside with an outside eating area with 2 hibachi grills and bar area; it will be located in the downtown area for beach sunsets and nightlife. Tai Kai aims to sell delicious and fresh seafood and meat. We will only sell the freshest and highest rated seafood and meat. But keep the prices at an affordable level. We will keep the traditional hibachi grill going, but then also incorporate the fun aspect with the bar and entertainment. We also aim to make every customer happy, with service, food, and entertainment. We also aim to be consistent every day in every aspect. We want every customer to love what we do and want to come back. We want to give every employee the best workplace, best benefits, and best experience. Also we would love to give back to the community by hosting different events and giving a percentage of every bill to the community. Our ideal customers are those who are looking for a different dining experience. Those who like to have a fun time as we cook the food in front of our customers. Those who are looking for a different way to have their fish, we offer sushi. Tai Kai s features are its sushi and hibachi grill. We will hire only the best hibachi grill chefs. We will have the menu that will allow every customer just about everything that they want to eat. Aside from sushi we will have prime steaks, chicken, pork, and beef. Alongside all the delicious, fresh, and premium food we will only hire the best and most personable waiters/waitresses. Customer service will be the most important thing to us and is the most important to most customers. We also strive on being reasonably priced and giving the customer the best experience. We also will have entertainment on Thursday nights through Saturday nights. Tai Kai has three owners, Dan Pieroni, Ryan Goff, and Josh Cusack. We each have different skill sets; Ryan is very personable and will manage the customers, Dan will handle the food with the head chef and the business portion of the restaurant, and Josh will handle the finances. All three owners plan to put in $30,000 each to start up the business while the rest we need will come from the bank. The future for Tai Kai will look promising as it will be the only sushi and hibachi within the downtown area of Key West. When we start up and people become fans of our cooking and we make good profits, we plan to move upward into the main state of Florida, not just the island of Key West. 2
4 PART 1. Business Description, Vision, and Mission LEGAL NAME Tai Kai Sushi Hibachi and Bar DESCRIPTION OF BUSINESS Tai Kai will be located Key West, Florida in the downtown area. Tai Kai will only use fresh fish, meats, and vegetables, the premium foods. The prices will be affordable. It will be a hibachi grill inside with an outside eating and bar area; it will be located in the downtown area for beach sunsets and nightlife. FORM OF BUSINESS OWNERSHIP The business will be a limited liability corporation with three primary partners. The three owners are specialized in three different areas. The percentage of the restaurant owned between the three owners is 33, 33, and 33. LOCATION OF BUSINESS 423 Wall Street Key West, Florida Tai Kai is right along Mallory Square, which is a historical active life place. This is a perfect atmosphere for our customers to enjoy our food while watching the sunset and the night life. Tourists will love our restaurant because of the beautiful scenery and the legendary sunsets. We plan on having a modern design all throughout, and because of the rain we plan to have an indoor/outdoor bar that we can close or leave open depending on the weather. Some competitive advantages we have are: We are right on the water, beautiful scenery and sunsets We are right in the downtown area for a great nightlife. Being right on the water will give us the freshest seafood. THE VISION Tai Kai is looking to be a great restaurant and hot spot in Key West. By having the inside and outside casual dining experience, we will give our diners that fun feeling. We want to start a trend where restaurants are not boring anymore, and somewhere where people want to be. THE MISSION STATEMENT Tai Kai aims to sell delicious and fresh seafood and meat. We will only sell the freshest and highest rated seafood and meat. But keep the prices at an affordable level. We will keep the traditional hibachi grill going, but then also incorporate the fun aspect with the bar and entertainment. We also aim to make every customer happy, with service, food, and entertainment. We also aim to be consistent every day in every aspect. We want every customer to love what we do and want to come back. 3
5 To give every employee the best workplace, best benefits, and best experience. To give back to the community by hosting different events and giving a percentage of every bill to the community. 4
6 PART 2. Competitive Market Analysis MARKET ANALYSIS ASSESSMENT OF THE COMPETITION A lot of competitors are in this area, from fast food to small local restaurants. Almost every restaurant has seafood on their menu, but little to none have sushi. There are also a bunch of places that sell key lime pie, that have a little food menu and some cafes. Tai Kai believes that we have an upper hand because we have premium meals with an affordable price. In Key West restaurants either have quality with high prices or fast food with low prices. We will be in the middle with prices. Specifically there is the Thai Island restaurant, Ambrosia Restaurant, and the Origami Japanese Restaurant. These places are the only sushi places in the whole island of Key West, they are also very pricy. Other places in Key West include Hard Rock Café, Sloppy Joes, and Blue Heaven. These places are all American food based, where we will specialize in Asian, specifically Japanese, food. COMPANY STRENGTHS Our sushi will be the high seller and strength of this restaurant. Also the hibachi grill environment will bring in many customers, and will persuade them over any other restaurant. Our head chef will have very many different sushi rolls and will train each hibachi grill tender how to cook everything in the correct manner. For those who don t like sushi, we also offer many different types of fish and meats. The seasonings on those are magnificent and will also be a good strength to have. Also another strength will be that we have the grills outside but also have a bar facing right at the water for the beautiful sunset. Again here are our main strengths: Sushi Nightlife Outdoor Eating option Different foods, high quality Water front ANTICIPATED CHALLENGES AND PLANNED RESPONSES ANTICIPATED CHALLENGES We have three major anticipated challenges: 1. The owners are 3 men coming out of only a couple years in the workforce, so money to start this restaurant up will be a challenge. 2. We will have to compete with the already established restaurants in the downtown area. 3. We will have to deal with the rain as it rains all year, also we will have to deal with hurricane season. 5
7 PLANNED RESPONSES We plan to respond to these three major anticipated challenges as follows: 1. The three initial partners are planning to help pay for at least 35% of the anticipated funds needed to start the restaurant. The place we are interested in buying, has some equipment so hopefully we can also buy the equipment that they have, downing the equipment costs. 2. With the established restaurants we plan on combating that with the environment we will create. With the bar and entertainment our restaurant will be the place to be at night. 3. The rain will be no problem as we will have a roof over the outside eating area, also a wall that can open and close to expand the indoor area. Creating a bigger space for the customers so they don t get wet. Also with the hurricane season we will have hurricane shutters and insurance. But as they are unpredictable we can just hope we don t get hit by one. INDUSTRY PROFILE INDUSTRY DESCRIPTION The Restaurant sector is in the Services industry. A lot of competitors are in this area, from fast food to small local restaurants. Almost every restaurant has seafood on their menu, but little to none have sushi. There are also a bunch of places that sell key lime pie, that have a little food menu and some cafes. Tai Kai believes that we have an upper hand because we have premium meals with an affordable price. In Key West restaurants either have quality with high prices or fast food with low prices. We will be in the middle with prices. Specifically there is the Thai Island restaurant, Ambrosia Restaurant, and the Origami Japanese Restaurant. These places are the only sushi places in the whole island of Key West, they are also very pricy. Hibachi is in the services Industry as well. It is a fun way to eat as the chefs prepare the food right in front of the customers. They also know a bunch of tricks, like the onion ring volcano or the egg in the pocket. This is a way for a family or some friends to get a meal and have some fun as well. Key West is a service because it is a place that does a lot of tourism. Key West is a fun place to visit because it is an island, but is very historical too. Plenty of beaches, nightlife, and street shows occur as a reason of people making extra money on the tourists. We chose this area because it is a beautiful area and has a chance to make us a lot of money. OPPORTUNITIES AND THREATS Key West is one of the most tourist populated cities in the United States. The whole economy is based mostly on tourism. Therefore most of the people won t be cooking their own food and will be eating out. Tai Kai has affordable prices which makes it easier on people s wallets. This economy is a perfect opportunity. Also there is an opportunity to open up a stand in Mallory Square. Since there are shows every night there, we could have 6
8 a stand open that sells sushi and bottles of soda or water. This would give us more sales and a chance to get our name out there. A threat that Key West possesses is that of extreme weather. There are hurricanes and tropical storms. Also heavy rain storms interrupt all kinds of activities. With our restaurant being half inside and half outside that is a potential threat. Also with hurricanes, fish and other foods may be hard to come by. But another opportunity off of that is that we can give money to a hurricane foundation or supporter. Another threat is that of competition. This is always a threat for businesses, but is especially for our business because every restaurant there is developed. We are just beginning so getting customers from their favorite spots could be challenging. 7
9 PART 3. The Management Team MANAGEMENT There is one level of management in the restaurant, with three different types of managers as follows: Floor Manager Grill Manager Business Manager All managers are also co- owners. ORGANIZATIONAL CHART The organizational chart for Tai Kai is quite simple given that it contains only one level of management. As the business grows, further levels of management and more employees will need to be added. Owner/ Grill Owner/ Floor Owner/Business Hosts Servers Bartenders Cooks Dishwashers Bussers BUSINESS GOALS The goals of this restaurant are based around making a profit and making the customers happy and satisfied. First- year business goals: 1. To be as close to break even as possible 2. To donate 8% of every bill to local charities 3. To set up a customer relationship management system 8
10 Intermediate to long- term business goals: 1. To earn profits of about $4-6 hundred thousand in 4 or 5 years 2. Open up another restaurant in 5 or more years ETHICAL ISSUES We will base our restaurant off our service, freshness, and quality. These mean more than any money we bring in. Here is our code of ethics. We will: Ensure that our service of the customers come before anything. Ensure that our quality and freshness of our food is at the highest standard. Ensure that our restaurant is clean and sanitized at all times. Ensure our employees are treated fairly and given the best workplace experience. Ensure that we give benefits to our hard working employees. Ensure that we are a team who takes in everyone s ideas and values and respects each other. SOCIAL RESPONSIBILITY Tai Kai wants to be an important part of the city of Key West. To do so we would like to donate a portion of every bill to feed, build, or help the community in any way. We believe that restaurants should be more than just a restaurant. We should be a helping hand in the community. We will also donate our time, the owners and other employees that want to, to help build schools or houses for those who cannot afford it or were affected by a hurricane. 9
11 PART 4. The Marketing Plan MARKET RESEARCH MARKET RESEARCH Our target market is basically the tourists that visit. Since tourism runs the Key West economy, they will help us out greatly. We will target the tourists that are 20 to 30 years old. Sushi is becoming popular with the younger generations. Also we know that those who are in their first couple years of being 21 like to partake in having a few drinks. With our entertainment, food, and bar this target market will want to give this a try. Also we will target the families. A good portion of tourism comes from family vacations, so we will have a special offer from 3-7 pm where families eat at a discounted price. But we also have to take in the people who live in Key West and will be regulars. For the regulars we will have a special deal, where there will be a card system. This will be, register for a member card and earn points towards free meals and free drinks. PRODUCT FEATURES AND BENEFITS Tai Kai s features are its sushi and hibachi grill. We will hire only the best hibachi grill chefs. We will have the menu that will allow every customer just about everything that they want to eat. Aside from sushi we will have prime steaks, chicken, pork, and beef. Alongside all the delicious, fresh, and premium food we will only hire the best and most personable waiters/waitresses. Customer service will be the most important thing to us and is the most important to most customers. We also strive on being reasonably priced and giving the customer the best experience. We also will have entertainment on Thursday nights through Saturday nights. Here are a couple basic foods we will have on our menu: Sushi: 5 pc- $8, 7 pc- $11 all types of rolls included Steak: 8oz- $12, 12oz- $17 Chicken: ¼- $8, 1/2 - $12 Seafood will range because of market price This is where we are also different in the food area. We have the highest quality, but will make it affordable so we can have more sales and it is easier on our customer s wallets. PRODUCT DIFFERENTIATION Our products will be very different from any other restaurant. First there are only 3 other restaurants that even serve sushi. These restaurants also won t be anywhere close to our location. So sushi will be a different product to the people around Mallory Square. 10
12 Second is the hibachi grills. There are no other places that cook and serve the entire meal right in front of the customers. Third will be the amazing sunsets that happen every night, some other places have an okay look at this. We will have prime front row seats right in front of the water, giving our customers an experience like none other. PRICING Our prices will reflect our quality of food. The minimum we can charge to make a profit is what we will charge. We want our customers to be able to enjoy a high quality meal for a reasonable price. We will also have rewards for locals because they will be the most likely to join the members club. This will result in a free meal every so often or a free drink, losing money for us, but will make up for it if they keep coming back. We do not see ourselves price skimming or penetration pricing because we do not want to set prices and then higher them on our customers. SALES AND PROMOTION ADVERTISING Advertising for our restaurant will be basic. We will go into doing billboards, posters where we can hang them, tourist brochures, and maybe commercials. Commercials will be pretty expensive so that would be a long term goal to get into. We will basically put our trust in our customers to spread it by word of mouth. Tell their friends who tell their friends. Since tourism will be a large part of our profit and is our target market, we will advertise as a fun place to eat. We will cook our food right in front of our customers. For billboards on the expressways that will be our advertising. For billboards and posters in local living areas we can say it is a fun family place to eat. But since we will have bar in our name, we will hope that people take that into consideration when it gets later into the night. Also we will have coupons for the first timers and opening night and a couple days after that. We will put ads out in the newspapers and the tourist brochures. We will advertise more in the first week to get our name out there. PROMOTION Our promotion will be the member s cards. This will be for the locals, to keep them coming back. The points they are rewarded will be based on how much they spend on every bill. So if a local spends $100 then they will receive 100 points. A free meal will be 1000 points and a free drink will be 750 points. When they get to the 750 point they can get a free drink, with only 250 points left to get a free meal. For the tourists we will not have a promotion because they will most likely just come for one meal, which we want to make as much as we can off of those meals. For the first week we will run promotions and put extra coupons out in the papers and brochures. We want the customers to come and taste the food, because when they do we feel like they will come back. 11
13 PLACE (DISTRIBUTION) ISSUES Key West has a lot of tourism year round and still many locals still live there. We see really no issues in distribution, as there should be customers all the time. 12
14 PART 5: The Financial Analysis EXPECTED REVENUE We believe that we can average about 125 customers per day, between lunch and dinner. The average cost per meal we believe will be about $15. With these expected averages we will bring in total revenue of $1875 daily. Yearly revenue will be expected to be around $685,000. We also have the bar portion of our restaurant. We expect to have a lot of different types of alcohol and beers. This will be about $6 a drink. On the weekend we expect there to be more bar traffic than on the weekdays. On a weekday we will anticipate around 20 bar tabs, whereas the weekend we will expect around 120 a night. We anticipate bar revenues of approximately $120 on a weekday, $1,440 on weekends, so approximately $2,040 a week. Total bar and food revenue is anticipated to be approximately $791,080 per year, after the restaurant is running for a year or two. COST OF DOING BUSINESS Expenses Expected Monthly Cost Expected Yearly Cost Rent 2,500 30,000 Salaries and Wages 12, ,000 Supplies ,000 Advertising and Other Promotions 550 6,600 Utilities: Heat, Electricity, etc. 1,500 18,000 Utilities: Telephone and Internet 200 2,400 Insurance 2,000 24,000 Total 19, ,000 13
15 STARTUP COSTS RAW MATERIALS AND SUPPLIES Tai Kai will need all the supplies listed below. We plan on using whatever is left behind that is in quality condition from the restaurant before us. 180 $50 each... 9, $50 each... 1,500 6 Cash $200 each... 1,200 POS System... 1,000 Char- Grill Oven Unit... 1, Hibachi each... 10,000 3 Microwave $100 each Deep Fryer... 1,000 Refrigeration Unit... 1,750 Freezer... 3,000 Ice Maker... 1,000 Dishwashing Unit... 1,000 5 Prep- $100 each Table Linens and Napkins Small $1.00 each Large $1.50 each Wine $2.00 each Beer each short aristocrat 1.50 each tall aristocrat 2.00 each Sets Plates, Bowls, each... 2, Sets $10 per set... 2,000 Miscellaneous Kitchen and Bar Supplies... 2,500 Table and Restaurant Decorations... 2,000 Total... $42,950 In addition to the above, we anticipate renovation costs of approximately $300,000 to convert the old restaurant to the modern restaurant, bar, hibachi, and kitchen facility. We will need to stock our bar and our pantry. We anticipate initial bar and food stocking costs to be approximately $5,000 to $8,000. We anticipate startup costs to total $308,
16 FINANCING The three managers will each put a total of $30,000 into the startup of this business. This will come from our earnings of the jobs we had for a couple years out of college. The remaining $218,000 is the amount that we are requesting for bank financing. 15
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