Business Plan
OWNERS
Sari Bornstein- CEO Binsy Thomas- CEO Chris Shelton- INVESTOR David Weinman- INVESTOR
The Curly Lentil 5701 Dennis McCarthy Drive Highway I-5/ Exit 219 - Laval Road Lebec, CA 93243 Tele: (661) 858-5887 Fax: (661) 858-5679 E-mail: [email protected]
I. TABLE OF CONTENTS
I. Table of Contents…………………………………………………………………… 1
II. Executive Summary………………………………………………………………... 2
III. General Company Description…………………………………………………… 4
IV. Marketing Plan………………………………………………………………………..6
V. Operational Plan…………………………………………………………………….18
VI. Financial Plan………………………………………………………………………..29
VII. Marketing and Advertising Plan………………………………………………….32
VIII. Floor Plan…………………………………………………………………………….36
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II. EXECUTIVE SUMMARY
To promote healthy eating habits, whether on a long commute or grabbing a
quick bite to eat, The Curly Lentil is devoted to meet the standards of nutritious and
healthy eating by providing fresh, quality foods to our customers. The Curly Lentil can
be best described as a convenient fast food restaurant that provides nutritious meals
and snacks. We are conveniently located in the San Joaquin Valley on Interstate 5, exit
219. This is a busy highway for either local commuters who are passing through on their
way to or from work or school, or for travelers needing a nutritious snack or meal. As a
new business within the San Joaquin Valley, along with anticipation of exponential
growth and the ongoing attraction to our unique cuisine, The Curly Lentil has lofty goals
for success when catering to those who wish to eat more nutritious foods. Our current
agenda is to open our first location on exit 219; within a year we plan to open other
restaurants in the neighboring areas of the San Joaquin Valley. We are an initial startup
business seeking to grow and expand within one year of opening.
The Curly Lentil will operate as a limited liability company. Our business has a
startup budget of $300,000. At the present time, we have two CEO’s, Sari Bornstein and
Binsy Thomas along with two investors, David Weinman and Chris Shelton, and a silent
partner, Eva Yip. Each of us will be contributing $25,000 and a $125,000 loan will be
obtained from the local Credit Union. Funds will be distributed to purchasing new
equipment for the kitchen, rent, utilities, inventory, wages, etc. Collectively, we are four
Registered Dietitians who are seeking to create opportunities for convenient, healthy,
and nutritious eating through our entrepreneurship. With our skill set and nutrition
background, we will seek to provide the best possible service through our business. As
a food service business, will be adhering to the regulations of the Kern Public Health
Service Department. Each employee will be ServSafe certified which will be maintained
during his/her employment.
Our forthcoming entrepreneurship lies within the fast food restaurant industry.
However, what distinguishes The Curly Lentil from our fast food competitors is our
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mission to serve affordable, nutritious food. Based on the Agriculture Marketing
Resource Center data, the US spends a significant amount of food ‘away from home’.
Having said this, The Curly Lentil strives to cater to the needs of our customers who are
on-the-go, based on the statistics of the average US citizen. Fast food has a negative
stigma attached to it; however, The Curly Lentil will set a new example of healthy,
nutritious food for our on-the-go customers. Our entrepreneurship is unique as we are
able to cater to all ages and preferences including items that are local, organic, and
non-GMO. Our extensive menu also provides alternatives for those who are gluten free,
dairy free, vegan, or vegetarian.
As with any business in the restaurant industry, The Curly Lentil will anticipate
changes with cost of food through our various vendors due to market seasonality. We
are expecting an increase in sales in the summer months due to the increase in
travelers who are commuting along Interstate 5. Along with the increase of sale through
commuters, we anticipate an increase in sales by word of mouth, billboards, and
popularity. To break even, The Curly Lentil will aim to sell 647 food items per day with a
monthly revenue of $138,434. We anticipate turn a profit after the fifth month of
operation.
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III. GENERAL COMPANY DESCRIPTION
Name of Business
The Curly Lentil
Brief Description
Nutritious, vegetarian and vegan-friendly, organic and non-GMO fast-food restaurant
with an emphasis on convenience and drive-through capability that caters to travelers
looking for affordable food near a busy Interstate exit.
Mission Statement
The Curly Lentil strives to provide affordable food to travelers who are looking for more
nutritious alternatives than traditional fast-food establishments.
Goals and Objectives
1.First year gross sales of $3,588,695 by end of first year and increase sales by 15% by
end of year one.
2. Expand menu items to non-GMO, organic, and vegan options to 50% of menu
options by end of year three.
3. Capture 30% of fast-food sales on Exit 219 on Interstate 5 in California.
4. Add two additional Curly Lentil franchises within the first five years of opening.
Philosophy
The Curly Lentil believes travelers should have access to well-balanced meals at an
affordable price and strives to change the culture of traditional fast-food eating habits by
giving consumers alternative options.
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Target Customers
California is all sun and shine until you have to commute on Interstate-5 without
any delicious, well-nourishing snacks in sight. A long commute in Southern California is
more than a hassle -- it is a devilish challenge. Whether passing by on a daily commute,
on an extended road trip with a few pals, or driving the morning carpool to send the kids
off to school, The Curly Lentil is here to provide nutritious, guilt-free snacks and meals
for all commuters and travelers.
The Curly Lentil aims to please health conscious commuters and travelers by
introducing an escape from the usual greasy, processed fast-food chains found on
nearly every Interstate-5 exit. The Curly Lentil will also introduce to the rest of the
commuting and traveling community that convenient food can be nutritious, and fresh,
without being expensive. We wish to target all commuters passing by whether they care
for nutritious eating or not. Our fresh, guilt-free and satisfying items will inspire each
customer to revise their perception of fast food.
Location
The Curly Lentil is located in the San Joaquin Valley, north of the Kern County
line and just off Interstate-5 at exit 219 for Laval Road. We are leasing a building in the
location of 5701 Dennis McCarthy Drive, Wheeler Ridge (Lebec), California 93243. This
location lies at the Wheeler State Interstate, where Interstate-5 and State Route 99
intersect and three miles north of the start of the Grapevine, if headed southbound. Our
location is ideal for the typical on-the-go customers driving through this major route that
connects Northern and Southern California, as this is the last exit before entering the
40-mile, steep drive through the mountainous canyons of the Tehachapi Mountains,
known as the Grapevine. This exit contains numerous gas stations, fast-food and
sit-down restaurants as well as a large shopping mall with food establishments across
the I-5. Being the last service stop before entering the long grapevine, our location’s exit
is a popular stop to refuel stomachs, as well as vehicles.
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IV. MARKETING PLAN
Market research
The Curly Lentil will be well suited to take advantage of emerging market trends,
and hopefully capture what is an enormous amount of money spent on eating out. Our
location sees heavy interstate traffic, but is situated in a somewhat rural area.
The Curly Lentil can expect to capture a heavy dose of travelers. Located 60 miles north
of Los Angeles and 37 miles south of Bakersfield, the Curly Lentil will sit just off an I-5
exit that sees about 65,000 vehicles pass by each day, according to interstate travel
data (www.interstate-guide.com/i-005_aadt.html#california). People in California are
often on the move. In 2014, the state saw about 251.5 million total person trips,
according to visitcalifornia.com.
Locals are not as plentiful as travelers. Locally, only about 1,500 people reside in
the same zip code as the Curly Lentil, according to U.S. Census figures. There are,
however, about 850,000 people residing in Kern County, home of the Curly Lentil.
Census figures show that almost half of the Kern County population is between the
ages of 20 and 54, and the majority of the population is white. The median household
income is $48,552 in Kern County and $64,611 in our zip code, according to Census
figures.
The Curly Lentil will face some competition from other fast-food restaurants.
Businesses in the town of Lebec that serve fast food include Jack in the Box (2
locations), Panda Express, Quiznos, Starbucks and Wendy’s, according to
city-data.com/city/Lebec-California.html. More specifically, fast-food restaurants at exit
219 include Chipotle Mexican Grill, Panda Express, Starbucks and In-N-Out Burger.
There is also an outlet mall nearby with restaurants.
The Curly Lentil aims to join a robust industry. According to the latest figures
from the Agriculture Marketing Resource Center, U.S. spending on food away from
home was $594 billion in 2010. Full-service and fast food restaurants captured about
three-quarters of all “food-away-from-home” sales. Additionally, U.S. adults buy a
restaurant snack or meal 5.8 times per week. More recent data shows good news for
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the Curly Lentil. The National Restaurant Association’s 2015 restaurant industry
forecast calls for a record high in sales. This group projects sales of $709.2 billion in
2015, which will be the sixth consecutive year of growth in sales.
The Curly Lentil is located in the San Joaquin Valley which is known for its
agricultural production and recreational activities. Common attractions in this area
include local food festivals, showcase bands, crafts, and animal shows annually,
marketing crowds of all ages. Among other popular cities, Fresno and Bakersfield
provide various educational attractions such as 3 National Parks, Chaffee Zoo, and
other indoor and outdoor activities. More specifically, the intersection of the I-5 and
Wheelers Road is home to many fast food restaurants and the Outlets of Tejon, which
holds other fine dining restaurants. Not only does this area draw in locals and tourists,
but also local commuters in a busy stretch of Interstate 5.
Trends Affecting the Business
When it comes to healthy eating, some trends favor the Curly Lentil. According to
the National Restaurant Association, 8 in 10 consumers say restaurants offer more
healthful menu options now compared to two years ago, and 76 percent say they are
more likely to visit a restaurant that offers healthful options. In addition, 67 percent of
consumers say they also order more healthful options in restaurants than they did two
years ago. Consumers are showing increased interest in local sourcing and more
restaurants are taking notice, with 8 in 10 tableservice operators saying their guests are
more interested in locally sourced items this year, compared with 7 in 10 that said the
same a year earlier.
The National Restaurant Association surveyed professional chefs and members
of the American Culinary Federation to find out what trends will be hot for 2015. The
following list contains items that were deemed to be “hot” in 2015 and that would pertain
to The Curly Lentil:
● Appetizers : Vegetarian appetizers; ethnic/street food-inspired appetizers
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● Starches and sides : Non-wheat noodles; ancient grains; quinoa; black/forbidden
rice; pickled vegetables; Asian noodles; grilled vegetables; brown/wild rice;
couscous
● Main dishes : Locally-sourced meats/fish; new cuts of meat; sustainable seafood;
non-traditional fish; grass-fed beef; free-range pork/poultry; half-portions/smaller
portions; meatless/vegetarian items; street-inspired food; low sodium items;
vegan items
● Breakfast : Ethnic inspired items, traditional ethnic breakfast items, omelets/egg
sandwiches, breakfast burritos
● Culinary themes : Environmental sustainability, natural ingredients/minimally
processed food; hyper-local sourcing; food waste reduction; gluten-free cuisine
● Dessert : House-made; bite sized/mini; savory
● Kids items : healthful kids’ meals; whole grain items; fruit/vegetable sides; kids’
entrée salads; oven-baked items in kids’ meals (baked chicken fingers,
oven-baked fries)
● Local produce : Heirloom apples; uncommon herbs; organic produce; dark
greens
● Non-alcoholic beverages : Gourmet lemonade (house-made), specialty iced
teas; house-made soft drinks; organic coffee; coconut water; dairy-free milk
The current trends increasing in popularity include on-the-go, ready-to-eat meals. To
meet the needs of the locals and tourist, the location of the I-5 and Wheelers Road is an
excellent location to provide fast, nutritious meals, snacks and drinks to any commuter
and of any age. The Curly Lentil is owned by four Registered Dietitians. Our focus is to
attract customers who are seeking a healthier lifestyle by choosing vegetarian,
vegan-friendly, organic, and non-GMO items. Our nearby competitors, such as Chipotle
and Panda Express provide the same type of fast food services without
nutritious-centered focus. Another important feature which sets the Curly Lentil apart
are the healthy meal and drink options, as well as a convenient drive thru service. Along
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with the drive thru, our customers can enjoy their meals in our spacious dining area. Our
easy-to-read menu provides a variety of fresh, affordable, healthful choices.
Within the last decade, there has been an increasing popular trend for healthy
fast food restaurants. Consumer’s desire to have a variety of selections consisting of
fresh, fast, and nutritious options which cater to certain diets- without breaking the bank.
Various articles have been published promoting the new healthy fast food trends. Mike
Corrin from the New York Times expects a “hypergrowth” in the restaurant business to
focus on ‘health casual’ dining. "It's all the elements and characteristics of fast casual
with an added focus on health," he said. That means replacing iceberg and romaine
with kale, and finding flavors through spices instead of cream. Aaron Allen, a restaurant
consultant, says "The most bankable word in food service is fresh." Greg Dollarhyde,
chief executive of Santa Monica-based chain Veggie Grill says, “People want to eat
more vegetables that are nutritious and unprocessed.” As you can tell, times are
changing to adapt to a healthier, nutritious lifestyle.
As RDNs, we want to promote a healthier lifestyle for our everyday consumers
who are generally requiring a quick rest stop before continuing their lengthy drive
through the Grapevine. We cater to all ages and meet the needs of individuals with
most dietary restrictions (gluten free, dairy free, vegan, vegetarian). Our easy-to-read
menu will provide options for all palettes- meat-lovers, vegetarians, and vegans;
including, local, organic and non -GMO items. Along with providing fresh, local,
high-quality menu items, we aim to educate the consumers on how to make
wholesome, nutritious food choices while still catering to a fast-paced lifestyle.
Education materials will be available on our website, which will include recipes and
nutrition content of our food. We hope to prove to our traveling population and the
general public that “fast-food” can be healthful, nutritious and nourishing while being
tasty and inexpensive.
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SWOT Analysis
STRENGTHS · Location is on a major highway, I-5, with high volumes just before a long stretch of road without exits · Close-by, year-round access to high quality produce · Access to people of all income levels · Food will be inexpensive, vegetarian and vegan friendly, nutritious fast-food with many allergy friendly selections · Food will be made to order · Registered Dietitian(s) on staff · Will serve primarily organic and non-GMO foods
WEAKNESSES · Food may be more expensive than traditional fast-food prices · Selections and customization for on order foods may lead to increased production times and confusing menu · Increased number of employees and labor costs to ensure fast, prompt, accurate service · Start-up and implementation costs high · Focus on organic and non-GMO
OPPORTUNITIES · Increased public demand for organic, non-GMO, plant-based, and healthier nutritious foods · Last exit for 40 miles going south, busy exit to get fuel and food · Possible opportunities for expansion to other locations on highways or urban areas
THREATS · Other “healthy” and non-GMO and regular fast-food companies near our location, e.g. Chipotle and McDonald’s · Difficulty converting the consumers faithful to traditional fast food restaurants · Higher costs for organic & non-GMO making products more expensive · Increased public backlash against organic and non-GMO marketing tactics and lack of scientific backing for superiority
Comparison with Potential Competitors
Major competitors:
1. Chipotle Mexican Grill: 5602 Dennis McCarthy Dr., Lebec, CA 93243
Per chipotle website: “When Chipotle opened its first restaurant in 1993, the idea was
simple: show that food served fast didn't have to be a “fast-food” experience. Using
high-quality raw ingredients, classic cooking techniques, and distinctive interior design,
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we brought features from the realm of fine dining to the world of quick-service
restaurants.
“Over 20 years later, our devotion to finding the very best ingredients we can—with
respect for animals, farmers, and the environment—is shown through our Food With
Integrity commitment.”
2. Wendy’s - 5821 Dennis McCarthy Dr., Lebec, CA 93243
Per Wendy’s website: “The Wendy’s Company (NASDAQ: WEN) is the world’s third
largest quick-service hamburger company. The Wendy’s system includes more than
6,500 franchise and Company restaurants in the U.S. and 29 other countries and U.S.
territories worldwide.”
3. Starbucks - 5844 Dennis McCarthy Dr., Lebec, CA 93243
4. Panda Express - 5810 Dennis McCarthy Dr., Lebec, CA 93243
5. McDonald’s - 5852 Dennis McCarthy Dr., Lebec, CA 93243
6. In-N-Out Burger - 5926 Dennis McCarthy Dr., Lebec, CA 93243
COMPETITIVE ANALYSIS
Table 1: Competitive Analysis
(1 = critical importance; 5 = not very important)
Factor Curly Lentil Strength Weakness Chipotle Wendy’s
Importance to
Customer
Products
Signature lentil dish
Burgers (veggie or meat)
Organic, local and/or non-GMO foods; grass-fed meats, dairy
Some of our items are similar, such as burgers, yet will be slightly more expensive due
burritos
tacos
salads
chips/guacamole
Burgers
Chicken sandwiches
salads
1. for health conscious customers, but a 5 for others
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Variety of vegetarian bowls
Entree and side salads
Baked potato and yam fries
whole fruit
Hearty snacks
Real fruit shakes
No fried foods
to higher cost of organic, Non-GMO or antibiotics and hormone free animal products
drinks fries and sides (baconator fries)
Drinks
Frosty
Price
Signature Curly Lentil Bowl $3.99
Burger $3.49
Burrito $4.99
Hummus & Veg Salad $7.49
Fries $2.49
Black Bean Brownie $2.69
Competitive for standard fast-food items
We don’t have a value menu
Burritos $6.50-$7.20
Tacos $6.50 - $7.20
salads $6.50 - $7.20
Chips and guacamole $3.25
drinks $1.80-$2.60
Signature burgers $3.79 - $6.19
Chicken sand $2.99 - $5.09
Salads $3.99 for half; $5.99 for full
Value menu items $0.99 - $1.69
Fries - $1.49-2.39
Frosty $0.99 - $3.29
1
Quality
High quality
Utilizes local fresh products, organic and
Can be costly to maintain
Committed to “vegetables grown in healthy soil, and pork from pigs allowed
Mass produced
1 for health conscious customers, 5 for others
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non-GMO if possible
Organic, Grass-fed beef patties, organic dairy
to freely root and roam outdoors or in deeply bedded barns.”
Uses non-GMO ingredients, aims to serve local produce
Services
Limited seating, drive-thru
Informed, health- conscious employees, including menu created by RDs
Public health/ nutrition facts and messages displayed in store, on packaging
None
Typical fast-food chain seating, take-out
Typical fast-food chain seating,take-out
1 for health conscious; 5 for others
Image
Clean, healthy/trendy average prices, fresh ingredients
Health-driven concept for fast food
None
Trendy. Quick and convenient, and mid-rangecost. No value menu. Large burritos
Quick and convenient, and low cost on value menu
1 for health conscious; 5 for others
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Customer Profile
health conscious travelers driving across California; health conscious locals looking for fast food
Situated near the last exit before heading into mountains, centrally located in California, right off an I-5 exit
Those who want bacon burgers and fries, regular fries instead of fruits/veg sides
People looking for fast-food, regardless of health consequences
People looking for cheap, fast-food, regardless of health consequences
1 for health conscious; 5 for others
Advertising
Local word of mouth, Billboards on I-5; Social media, local newspaper
Promoting healthier alternative to traditional fast food
We don’t have the national-scale advertising budget others have
National chain, TV, radio, newspapers, magazines
National chain, TV, radio, newspapers, magazines
3 - We just need to capture travelers passing through Lebec, not advertise for anation-wide chain
Location
Right off a popular and busy I-5 exit
Well situated for auto travelers
In same complex as Wendy’s, Chipotle, Starbucks andPanda Express
In same complex
In same complex
1
Appearance
Images of healthy people enjoying healthy food; Clean, family-friendly, trendy
Clean, stylish and appealing
None Bright, colorful, fresh
Traditional fast-food chain
2
Competitive advantages/disadvantages - Niche:
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In one sense, The Curly Lentil is a cross between Wendy’s and Chipotle, in that we are
a traditional fast-food eatery like Wendy’s but also with a focus on high quality
ingredients like Chipotle. But in another sense, we are unique in that we aim to provide
a healthier fast-food alternative to Wendy’s and Chipotle. For example, instead of
offering french fries or salty chips and salsa as a side, we will offer sides such as baked
potato wedges, fresh roasted vegetables, fresh fruit, raw cut-up vegetables with
hummus and a nut/dried fruit mix. We will offer some traditional fast-food products, such
as beef burger, but much of our menu will be uniquely different from Wendy’s and
Chipotle. We will have a signature lentil dish, fresh-made veggie burgers, a wide variety
of salads and a plethora of bowls. We also separate ourselves from our competitors by
offering a variety of vegetarian meals, and a variety of menu items beyond the standard
burger fare -- we offer burgers, either vegetarian or with beef, as well as lentil dishes,
bowls and burritos. The items we offer as sides are also different from Wendy’s and
Chipotle in that our customers can get fruit/nut snacks, fresh fruit, yogurt parfaits, baked
potato wedges and tasty desserts such as dark chocolate squares.
Competitively, our prices will fall between prices at Wendy’s and prices at
Chipotle. Our biggest challenge may be in attracting customers - primarily locals and
travelers who may not care about personal health - to a “health-conscious”
establishment. But we believe it is important to try and we also believe that, given a
competitively priced choice, the public will come to understand they can eat well for the
same price as they could at other fast-food establishments.
Pricing
The Curly Lentil menu price will be based on cost of the food with 20% being the
average food cost. Some food items, such as raw fruits or vegetables or cooked
vegetable sides, may have a cost closer to 50% or higher to encourage consumption of
those products. Prices will range from $0.50 to $7.99 for individual items. Items will be
competitive with other fast food restaurants in the area such as Chipotle but more
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expensive than McDonald’s and In-N-Out Burgers due to the higher price of organic
foods and non-GMO products.
The menu is priced higher compared to other fast food, drive-thru restaurants such as
McDonald’s and In-N-Out Burgers. This may limit the clientele we serve to those only
interested in healthier foods, vegetarian or vegan fare, options for gluten-free or
allergen-free foods, and organic/non-GMO labels in addition to those with higher
incomes who can afford the Curly Lentil’s food. Regardless, many of our menu items
will be at similar prices compared to drive-thrus such as Amy’s Drive Thru. Regardless,
the menu price will be set at a price point that will entice traditional fast-food customers
as well as customers that visit “healthier” restaurants such as Chipotle.
Below are some examples of predicted menu item costs and prices. Please note all
items are vegan but can be made to order for those with allergies, are gluten-free, or
want animal products added (e.g. meat, eggs, dairy):
Table 2: Cost versus price of select menu items
Item Cost ($) Price ($) - Item Cost ($) Price ($)
Signature Curly
Lentil Bowl
1.35 3.99 - Burrito 1.25 4.99
Classic burger,
No Cheese
1.25 3.49 - Lentil Garden
Patch Wrap
1.45 5.99
Lentil Veggie
Burger
1.50 3.49 - Burrito Bowl 1.10 4.99
Baked french
fries
0.50 2.49 - Roasted
Vegetables
0.79 1.99
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Coffee 0.20 1.99 Greek yogurt &
Granola
0.75 3.49
Soda 0.10 1.99 - Tea 0.25 1.99
Fresh Fruit
Milkshake
0.75 3.49 - Lemonade 0.50 2.49
Black Bean
Brownie
0.60 2.69 - Bean & tofu
Salad
2.00 7.49
Apple/Fresh
fruit
0.25 0.99 - Lettuce Wrap 1.80 5.99
Hummus &
Veggies Pack
0.75 2.99 - Protein snack
pack
1.00 2.99
Side seasonal
salad
1.25 3.99 - Chili & brown
rice bowl
1.19 3.99
Seasonal
Entree Salad
1.75 5.99 Hummus &
Quinoa Salad
1.50 7.49
Legal Issues
The Curly Lentil will operate as a limited liability company (LLC) under California State
under the owners of Sari Bornstein and Binsy Thomas, and the investors of Chris
Shelton and David Weinman.
The Curly Lentil will register with the County of Kern Public Health Services Department
Environmental Health Division, pass inspection, and be monitored closely to ensure The
Curly Lentil abides to all health regulations. All owners, managers, and cooks will be
required to be Servsafe certified and demonstrate their ongoing knowledge and
understanding of food safety techniques. Additionally, all employees are required to
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receive food safety training and demonstrate their understanding of food safety before
starting work. Food safety protocols, and policies and procedures will be strictly
enforced to ensure compliancy will local and state regulations are maintained.
A ServSafe certified manager will always be present during our hours of operation.
The premises of The Curly Lentil will comply with all building and fire regulations
according to the California State. The Curly Lentil will have insurance to cover our
restaurant and fast-food establishment for events such as fire, liability, customer injury,
employee injury, destruction of property, and crime.
V. OPERATIONAL PLAN
Business Operations
The Curly Lentil will be open 7 days a week from 10 AM to 10 PM
Potential suppliers
Local vendors - Tangleweed Farms; Clover Stornetta, California; Fruit Depot; Tesch
Family Farms; Budwood Farms; Barsotti’s Family Juice Co.; Cal-organics/Grimmway
Farms.
National vendors - Freshpoint; Sysco; Goldstar; American Farmers Network
Initial and ongoing inventory needs
Since we are starting as brand new business, we will initially purchase new equipment
for both the kitchen and office, shown in the table below.
Table 3: Initial Inventory needs of kitchen equipment
Equipment Cost Supplier
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Everest Refrigeration
ESRF2D2 Reach In –
fridge/freezer combo
$3, 921.21 www.culinarydepotinc.com
Turbo Air MST – 72 72” M3
Series Refrigerated
salad/sandwich prep table
with 3 doors
$2, 524.90 www.webstaurantstore.com
Vulcan V60F – 1 63” NG
Range w/ 6 burners, 24”
griddle and 2 ovens, each
$4, 115.00 www.acemart.com
Hobart Edge Slicer 12”
EDGE-1
$1, 599.00 www.webstaurantstore.com
Waring OB 115 Food Blender
w/ Touch pad controls 1
gallon
$1, 069.00 www.webstaurantstore.com
Star Manufacturing QCSI –
350 convey toaster, 350
slice/hr
$529.00 www.webstaurantstore.com
Manitowoc UD-0140A Neo
Undercounter Ice Maker,
Cube-style, Air-cooled
$1,781.00 www.webstaurantstore.com
Bunn Axiom –DV-TC
Automatic Thermal Carafe
Coffee Brewer
$519.00 www.webstaurantstore.com
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Moffat P8M Turbofan
Proof/Holding cabinet,
capacity 8 Full – S
$2,449.99 www.restaurantsupply.com
Waring Commercial WDF
7513 Deep Fryer – 2700
$259.00 www.webstaurantstore.com
Panasonic NE 1054 F 1000 W
Commercial Microwave w/
touch pad
$219.99 www.webstaurantstore.com
FE – 3 – 1620 – 18 RL – X
Advance Tabco – 3
compartment sink, 84”
$619.00 www.webstaurantstore.com
Winco Plastic Dish Box,
Black (10)
$3.69 www.webstuarantstore.com
Twin Infusion Series®
BrewWISE® DBC® Coffee
Brewer
$2,200.00 www.bunn.com
Twin Infusion Series®
BrewWISE® DBC® Coffee
Brewer
$1,400.00 www.sodadispenserdepot.com
Table 4: Initial inventory needs of office equipment and supplies
Expenditures on fixed
assets
Purchase
Price
Month of
Purchase
Life in
years
Supplier
Computers (2) $600.00 1 3 years Best Buy
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Cash Registers (3) $740.00 1 3 years Staples
Printer/Fax/Scanner (1) $70.00 1 3 years Best Buy
Telephone System $995.00 1 5 years Cisco 5 IP phone
Telephone line $29.95 per
line
1 5 years Comcast
Office Supplies $600.00 1 1 year Staples
Paper Supplies $300.00 1 1 month Sysco
Kitchen Supplies $3100.00 1 3 years Sysco
Table 5: Initial Cost of Food Inventory for the first week of open business
Condiments $278.20
Meats/Meat Alternatives $448.00
Dairy $294.51
Vegetables $1,748.75
Legumes $1,138.91
Grains/seeds $1715.79
Fruit $312.82
Beverages $320.00
Other – seasonings $126.25
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Total $6,383.23
* These values are based on our forecasted number of 75 customers/day x 7days = 525 customers Table 6: Ongoing inventory cost of produce for each week
Vegetables $1,960.00
Fruit $604.22
Meats/Meat Alternative $501.00
Dairy $530.16
Total $3,595.38 * These values are subject to changes due to change in season which can affect crops changing the demand of supply
Table 7: Ongoing inventory cost of all other food bi-weekly
Condiments $415.60
Legumes $1,516.78
Grains/seeds $2007.37
Beverages $570.00
Other $268.47
Total $4,778.22
* These values are based on our forecasted increased number of 100 customers/day x 7
days = 700 customers
Personnel
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Number of employees: Operations Manager (RD), Marketing & Financial Manager (RD),
Floor Manager, 5 Cooks, 20 Food Service Workers. Number of hourly workers subject
to change, as deemed necessary, per demand.
Type of labor (skilled, unskilled, and professional): Management positions require skilled
labor with relevant education and work experience. Cook position requires skilled labor
with work experience. Food Service Worker positions are unskilled for they can be
taught on the job. All positions hold a professional level of standards.
Finding the right employees: Operations Manager, as co-owner of the company, will
recruit a qualified applicant for a Floor Manager. The Floor Manager, with the
assistance of either the Operations Manager or Marketing & Financial Manager, will
recruit qualified applicants for the following positions: Cooks and Food Service Workers.
Open positions will be posted on standard job search engines. Ads will be placed online
and on our company website. Applicants will be screened by their resumes and
applications. Qualified applicants will be asked to attend an in-person interview led by
the floor manager and one co-owner. Candidates will be hired, as seemed fit, for the
respective position.
Pay structure: Salary rate for Operations Manager (OM) and Marketing & Financial
Manager (MFM); hourly rate for the Floor Manager, Cooks, and Food Service Workers.
Training methods and requirements: Training will be provided for all newly hired cooks
and food service workers, and the floor manager will require extended training with the
OM and MFM. All newly hired personnel are required to attend a mandatory, New
Employee Orientation prior to on-the-job training. Orientation is designed to familiarize
new employees with our facility, services, and policies and procedures. All newly hired
staff will be required to read and sign off on all policies and procedures before beginning
on-the-job training. Training includes, but is not limited to, kitchen safety, equipment
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operation and safety, general food safety, and area-specific training for the Food
Service Worker’s respective positions of one or more of the following: drive thru
operator, order taker, cashier, server, dishwasher, receiving and stocking, and waitron.
Drafted Job Descriptions: see section ‘Job Descriptions’ below.
Schedules and written procedures: Schedules will be made and posted for two-week
increments two weeks before the first date on the upcoming schedule. Schedule will be
posted outside manager’s office along with copies for employees to take. Schedule is
subject to change, only by management, depending on business needs. Other hard
copies of schedules, written procedures, and policies will be kept in a binder outside the
Manager’s office for employees to view at any time. All employees are expected to
follow all policies and procedures during working hours.
Use of contract workers in addition to employees: Our business does not plan to use
contracted workers. All workers will be screened, interviewed and hired by the
co-owners. This hiring process is subject to change, as deemed appropriate, to meet
business demand.
Organization Chart
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*Food service workers include: drive thru operator, order taker, cashier, server, dishwasher, receiving and
stocking, and waitron.
Job Descriptions
Operations Manager
Job Description and Responsibilities:
The Operations Manager (OM) is responsible for administrative duties and managing the daily operations of the fast food restaurant. The OM is responsible for the financial success of the company and oversees all employees, managers and ensures safety of both employees and customers. Being a Registered Dietitian, both the OM and Marketing & Financials Managers (MFM) are responsible for the planning and creation of the nutritious, Non-GMO, Organic menu options including sourcing vendors, cost, and pricing. In addition, the OM is responsible to set the vision, goals and strategic plan for the business. This position works closely with the Assistant Manager. Responsibilities include:
● Assistance with: interview, hire, oversee and discipline employees, as needed ● Manage inventory and budget, order food, beverages, supplies and equipment ● Plan and create nutritious, fast food menu options that promote more healthful
eating of fast-food consumers ● Ensure staffing needs are met and create employee schedule biweekly
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● Maintain professional image of restaurant, uphold ServSafe credentials and guidelines, and ensure employees and management adhere to similar guidelines, policies and procedures
● Assists in monthly inventory, financials and tracking of business goals, as needed
● Estimate food needs, place orders with vendors and schedule deliveries of food, beverages and supplies
● Ensure safe working environment for employees and guests ● Handle and resolve customer complaints
Skills and Requirements:
● Bachelor Degree required, Master’s Degree a plus, experience in Business Administration preferred
● Completed minimum of a Bachelor’s Degree in nutrition-related field at a US regional accredited university or college and course work accredited by the Accreditation Council of education in Nutrition and Dietetics (ACEND) with completion of an ACEND-accredited supervised practice program and passing of the national examination administered by the Commission on Dietetic Registration (CDR) with completion of continual professional educational requirements to maintain registration
● ServSafe certification required ● Minimum of 5 years of managerial experience ● Good decision and judgment making capabilities ● Out-going, initiative and leadership skills ● Pleasant, polite, neat, clean and organized ● Possess good written and verbal communication skills and dealing with diverse
staff and customers, and exceptional interpersonal skills ● Able to work in fast-paced environment with long hours
Marketing & Financials Manager
Job Description and Responsibilities:
The Marketing & Financials Manager (MFM) is responsible for the accounting operations of the restaurant, including marketing, office paperwork, managing invoices, reviewing financial transactions and monthly reports. In addition, the MFM is responsible for quality control and ensuring consistent high quality food production and service. Being a Registered Dietitian, both the MFM and OM are responsible for the planning and creation of the nutritious, Non-GMO, Organic menu options. This position works closely with the Operations Manager. Responsibilities include:
● Assistance with: interview, hire, oversee and discipline employees, as needed ● Ensure all financials, monthly reports, payroll, and relative administrative duties
are completed accurately and on time
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● Handles all aspects of promoting, advertising and selling the business and our philosophy
● Plan and create nutritious, fast food menu options that promote more healthful eating of fast-food consumers
● Handles business’ emailing, phone calling, mailing, consumer outreach and recordkeeping
● Logs and prepares invoices for payment ● Leads monthly inventory ● Creates dietary educational handouts for consumers, if chosen, regarding our
menu items and information about general healthful dietary choices ● Ensure staffing needs are met and creates employee schedule biweekly in
absence of GM ● Maintain professional image of restaurant, uphold ServSafe credentials and
guidelines, and ensure employees and management adhere to similar guidelines, policies and procedures
● Ensures quality control of food and ensure guests are satisfied with food service experience and establishes standards for personnel performance
● Ensure safe working environment for employees and guests ● Handles and resolves customer complaints
Skills and Requirements:
● Bachelor Degree required, Master’s Degree a plus, experience in Business Administration preferred
● Completed minimum of a Bachelor’s Degree in nutrition-related field at a US regional accredited university or college and course work accredited by the Accreditation Council of education in Nutrition and Dietetics (ACEND) with completion of an ACEND-accredited supervised practice program and passing of the national examination administered by the Commission on Dietetic Registration (CDR) with completion of continual professional educational requirements to maintain registration
● ServSafe certification required ● Minimum of 5 years of managerial experience ● Good decision and judgment making capabilities ● Out-going, initiative and leadership skills ● Pleasant, polite, neat, clean and organized ● Possess good written and verbal communication skills and dealing with diverse
staff and customers, and exceptional interpersonal skills ● Able to work in fast-paced environment with long hours ● Knowledge of computers and computer programs (MS Word, Excel)
Floor Manager
Job Description and Responsibilities:
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The Floor Manager is responsible for managing the floor operations, including interviewing, hiring, overseeing and managing employees. This position reports to the Operations Manager or the Marketing & Financial Manager. Responsibilities include:
● Interview, hire, train, oversee and discipline employees ● Oversee all daily floor operations during business hours, including but not limited
to ensuring employees follow proper food safety and sanitation, provide high quality service, abide by policies and procedures, handles and resolves employee conflict or direct customer complaints
● Responsible for cash handling and close out reports after closing ● Assists in training all hourly employees for various positions ● Ensure safety standards are being met during food preparation ● Assists in cooking, preparation or other areas, as needed during times of high
demand ● Assists in monthly inventory ● Ensures a smooth running business on a daily basis ● Assist in various functions and supports a wide range of needs of a fast-paced
food service establishment. Supports OM and Marketing & Financial Manager, as needed
Skills and Requirements:
● High school diploma required, Bachelor Degree in related field preferred ● Minimum of 3 years in managerial position required ● ServSafe Certified required ● Strong interpersonal, communication and leadership skills ● Customer service skills, attention to detail, organized and ability to solve
problems using own judgment ● Ability to delegate, lead by example and motivate staff ● Professional, maintains integrity, and punctual ● Must be able to stand and walk for extended periods of time, lift and carry objects
greater than 40 pounds, and be able to reach, bend and stretch
Cook
Job Description and Responsibilities:
Prepare and cook food according to limited menu. Duties involve operating large-batch cooking methods. A cook reports to the Floor Manager first and the OM or the Marketing & Financial Manager secondary. Responsibilities include:
● Operates cooking equipment, measuring ingredients and following standardized recipes
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● Follows HACCP and exceptional food safety and sanitation techniques including maintaining and recording appropriate temperatures in logs
● Tasks include but are not limited to: cut, peel, mince, chop, dice, grind, roast, broil, steam, bake
● Prepare, cook, present and garnish food according to standards with consistency and high quality
● Clean and sanitize work stations, equipment and utensils ● Keep accurate production records and daily temperature logs up-to-date ● Proper heating, cooling and storing of menu items ● Performs other tasks assigned by Floor Manager, Marketing & Financial
Manager or OM
Skills and Requirements:
● High school diploma or equivalent required, culinary certification a plus ● Minimum of 3 years experience in foodservice as a cook required ● ServSafe Certified required ● Strong knowledge of cooking techniques including use of standard large-batch
cooking equipment ● Positive attitude, eager to learn, professional, punctual ● Possess good written and verbal communication skills ● Attention to detail, excellent customer service skills ● Ability to follow instructions, both verbal and written
Food Service Worker
Job Description and Responsibilities:
A food service worker is responsible for the service, preparation and cleanup of food, including a variety of other duties listed below. This may include one or more of the following positions: drive thru operator, order taker, cashier, server, dishwasher, receiving and stocking, and waitron. A food service worker reports to the Floor Manager first and the OM or Marketing & Financial Manager secondary. Responsibilities include:
● Follows standardized recipes when preparing and serving food ● Follows food safety and sanitation guidelines ● Assists in set up, serving, storing and clean up of food and beverages ● Cleans and sanitizes work areas and equipment according to standards ● Clean tables and counters, remove trash, clear trays and stock supplies in
front-of-the-house ● Performs cashier responsibilities, operates drive-thru system and takes orders ● Perform dishwashing duties while adhering to proper cleaning and sanitation
standards ● Assists in inventory, procurement and stocking of food and beverages according
to standards
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● Provides continuous, exceptional customer service when performing all duties ● Performs other tasks assigned by Floor Manager, Marketing & Financial
Manager or OM Skills and Requirements:
● Must be 16 years or older ● Experience in food service is a plus ● Positive attitude, eager to learn, professional ● Ability to work with others in a fast-paced environment ● Excellent customer service skills, attention to detail ● Must be able to stand and walk for extended periods of time, lift and carry objects
greater than 40 pounds, and be able to reach, bend and stretch
VI. FINANCIAL PLAN
Startup Budget
Curly Lentils will have a startup budget of $300,000. The four owners, David, Chris,
Binsy, and Sari and our silent partner Eva, will contribute $25,000 each. A loan of
$175,000 will be obtained from the local credit union, Thanos CU. Startup expenses
include leasehold improvements, equipment, rent, utilities, insurance, inventory, and
advertising, reserve, and pre-opening salaries.
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Leasehold improvements will cost approximately $50,000. These expenses will include
painting, remodeling, and kitchen improvements to better suit our needs for usage of a
high percentage of fresh whole food ingredients. Improvements will be extensive but
require overall minimal changes to an existing kitchen being in place.
New equipment will cost approximately $34,000. This will include of $5,000 for furniture
such as tables, chairs, condiment carts/stations, and other miscellaneous furniture
items; $1,000 for fixtures; and $30,000 to replace old and obtain new kitchen
equipment.
Location and administration expenses will cost approximately $77,000 in the 3 months
prior to opening. Rent will be $3000-3500 per month. Utility deposits will be $2,500.
Legal and accounting costs will be $3,000. Insurance will cost $1,500. Pre-opening
salaries will cost approximately $60,000, which includes three weeks of 5 FTE
employees and 3 months of 1 FTE manager and 2 FTE Registered Dietitian Nutritionist
owners.
Consumable and non-consumable inventory will be kept at a minimum. Consumables,
such as fresh and frozen foods, will be delivered on a regular basis depending on items
(1 to 3 deliveries per week). Non-consumables, such as utensils, to-go items, napkins,
cups, toiletries, kitchen items, and other miscellaneous items.
Advertising and promotional expenses will cost approximately $14,000 pre-opening.
Signage will be on the building and stand-alone will cost approximately $8,000.
Pre-opening advertising will cost approximately $10,000 will include billboards, online
ads, media outreach. Printing for menus, handouts, and other items will cost $1,000.
Lastly, a reserve of approximately $100,000 will be available for contingencies and
losses in the first couple months.
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12-month profit/loss projection
If projected sales go as expected, the Curly Lentil will start turning a profit in its fifth
month of operation, May (see attached Excel sheet).
The Curly Lentil expects to lose $11,421 in its first month and $68,791 in the first four
months. But as the tourists start rolling across California in May, sales are expected to
pick up and the Curly Lentil expects to post a net profit of $2,286. Once summer gets
into full swing and the number of tourists and travelers increases, and as more people
become aware of the business, sales are expected to reach $175,652 in June and keep
climbing throughout the summer. The Curly Lentil’s best month is expected to be
August, with a net profit of $280,488. Total profit at year’s end is expected to be
$1,381,727. Each of the five investors expects to receive $276,345 in profit for the first
year.
Early sales are expected to be sluggish until the community falls in love with the Curly
Lentil’s food and the number of summer travelers increases. For example, the Curly
Lentil projects to sell about 1,050 food items per day for the first four months. To reach
1,050 food items sold per day, the Curly Lentil would need about 350 people to walk
through the door each day and buy three items.
The number of food items sold is expected to quadruple by August. To reach the August
goal, the Curly Lentil would need about 1,400 customers daily to purchase three items.
Keep in mind, that an average of 65,000 vehicles pass by the Interstate-5 exit to the
Curly Lentil every day. And if, for example, there were only one person in each vehicle,
the Curly Lentil would need only about 2% of those 65,000 people to stop at the Curly
Lentil and purchase three food items. But, the Curly Lentil is not counting solely on I-5
travelers. The Curly Lentil aims to attract many of the 850,000 locals living in Kern
County, leaving the Curly Lentil well poised to reach its financial goals.
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Break even analysis
The Curly Lentil needs to sell 647 food items per day to reach its breakeven point.
This figure comes from using Harvard’s breakeven analysis tool. The Curly Lentil’s
monthly average variable costs are $47 per unit. The Curly Lentil’s monthly average
fixed costs are $108,030. The Curly Lentil’s revenue per unit is expected to be $214.
Punching those numbers into Harvard’s online calculator
( https://cb.hbsp.harvard.edu/cbmp/resources/marketing/multimedia/flashtools/breakeve
n/index.html ), gives the Curly Lentil the goal of selling 647 items per day to break even.
This analysis also shows the Curly Lentil needs monthly revenues of $138,434 to break
even.
Please see attached excel spreadsheet for greater detail.
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VII. MARKETING AND ADVERTISING PLAN
We aim to focus the marketing of The Curly Lentil on our high quality, organic,
non-GMO menu, created by registered dietitians, in hopes to promote fast food that is
wholesome, nutritious and affordable to any consumer. This also includes gluten-free
and dairy-free options available with the high demand of these products on the market.
All the foods on our menu are free from preservatives, hormones, antibiotics or
bi-products- the ingredients come as natural and wholesome as if they came from a
backyard garden with the help of our local farms and vendors. All the menu items will
have nutrition information available for the consumer upon request, with the exception
of the changing, seasonal items.
Website- Our website can be found at www.TheCurlyLentil.weebly.com . The website
will contain information about The Curly Lentil, including our philosophy, menu with
pricing, local products used in our fresh menu items, recipes for gluten-free, dairy-free,
vegan, and vegetarian cooking, a pre-ordering function, and much more. Also, our
location, hours of operation, and contact information is displayed in a user-friendly
format. The website will be updated monthly by the Marketing & Financial Manager.
Recipes are to be updated bi-quarterly. As The Curly Lentil increases in popularity and
expands, the website will expand too.
Menu Brochures & Flyers- Our menu brochure can be found in PDF form on our
website. We will also have hardcopies available upon entry, located by the door. For the
locals, our menu brochure and flyers will also be distributed to local grocery stores and
shopping malls including the Outlets of Tejon across from our exit on the Interstate-5.
Press- We will reach out to the local newspapers and magazines to print a press
release about the start and progress of our company, including building progress,
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opening day, and ongoing popularity among the public. The Marketing & Financials
Manager, RD will be responsible for meeting with reporters or making any media
appearances. Additionally, we will purchase ads in the local newspaper in which the
Marketing & Financials Manager is responsible for creating.
E-newsletters- An e-newsletter will be initiated and will grow as the company expands
approximately six months to a year after the grand opening of the Curly Lentil Drive
Thru and restaurant. It will be available on our website, and our Facebook and Twitter
pages. It will include some of the following topics: nutritional tips and advice, dietary
information and fun facts about our menu, information about our local vendors,
products, and food events, deals, coupons, birthday specials, and healthy recipes.
Social Media- We will reach out to Google to add our company to their search engine
and advertise on the internet through online advertisements. Also, we will reach out to
the local radio stations for both on-air interviews, verbal advertisements via radio talk
show hosts, and radio commercials. The Curly Lentil will have a Facebook page and
Twitter account where prospective consumers can inquire about our company, read
reviews, our menu and hours of operation, follow our company updates and read
applicable nutrition information. After approximately six months of establishment,
Facebook and Twitter will have links to our e-newsletters.
Billboards- To reach out to the travelers, we will be renting three billboards. One is
located two miles north of our exit, exit 219 for Laval Road, if going southbound on
Interstate-5. This billboard will be displayed to the travelers headed into the Grapevine,
knowing this may be their last opportunity to stop for food or gas for several miles. The
second billboard is located directly on the Interstate-5 freeway just before exit 219 for
Laval Road on the right side if headed southbound. The exit’s billboard, named Tejon
Ranch, will display our company name along with with other businesses at this exit,
such as Chipotle, In N Out, multiple gas stations and motels. The third billboard is
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located approximately five miles south of our location on the right side of Interstate-5 if
headed northbound. This billboard will be displayed to travelers heading north and just
coming out of the Grapevine after a long drive through the Tehachapi Mountains that
separates southern and central California.
Branding Paper products- All products used for to-go items or in-house paper products
will be printed with our company name. This includes, but is not limited to cups, to-go
containers, napkins, tissue paper, trays, paper mats, and bags. This will ensure our
name is getting out into the public and even farther in the cars of our massive traveling
population.
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VIII. FLOOR PLANS
3-Dimensional Floor Plan
2-Dimensional Floor Plan
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