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Our initial statement to Investors and Financial Lenders, this restaurant/ethnic food business plan, is a candid
disclosure of the Zara Restaurant & Lounge business proposal - our intent is to set realistic business expectations,
and eliminate any questions about the profitability of this business venture.
Entrepreneurs have a tendency to paint the restaurant business plan with a very optimistic brush, highlighting
strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the
success of this restaurant. Our intent is to have a definitive business, financial, and marketing plan that not only
serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to
validate our business and financial models, focusing on realistic projections. We have accomplished this as follows:
1. Our financial model is rooted in industry facts, not optimism. We have based costs on our vast industry
and practical experience with similar ventures, validation against National Restaurant industry cost averages,
and analysis against local Atlanta market averages. We have taken a collective look at all figures to make solid
business estimates.
2. Our business concept was derived from detailed Market Analyses. Instead of building a business
around a preconceived concept, we analysed the market findings and built a concept around our consumers. In
other words, our business is built to service an unmet consumer 'want'.
3. A buffered financial plan that ensures adequate capitalization. A contingency buffer is included in the
start-up cost to ensure the business in not under financed, as well as giving the business adequate funding to
sustain it in the first six months of start-up. Our industry experience confirms a longer ramp-up stage for
restaurants over other retail/service businesses. A common mistake for new entrepreneurs , but fully addressed
in this business plan.
4. A solid Risk Mitigation Plan. We have evaluated traditional and non-traditional risks associated with
Restaurant failure and accounted for them directly in the business plan. Instead of dismissing the risks, we have
identified valid mitigation strategies for each.
5. Deep Management Experience. Our management team has 20 years combined experience, involved with
over 86 restaurant openings, and deep involvement with the Atlanta restaurant industry.
The total capital requirement to launch Zara Restaurant & Lounge is $740,000, of which $643,000 is allocated to
start-up capital, and $97,000 as business operations cash reserve.
This Plan is being submitted in order to secure a Business loan for $430,000. The loan will be used towards
Equipment purchase, Design, Construction, and Operational Start-Up expenses. Owners, Mr. Alex Hunte and Mr.
Peter Smith are investing $110,000 in personal capital. Private Investors, who will be part owners with a non-
managerial interest in the business, will contribute the remaining $200,000.
As owners, our commitment is to take personal accountability for all financial debt. We have taken the necessary
precautions to ensure the business is fully capitalized, and have addressed all financial shortfalls to ensure a
successful business start-up. Under a realistic scenario, the company should have over $84,000 in cash balance the
third year. Even with the worst-case sales scenario, we reach a Net Worth break even at the end of Year 5. On a
linear projection, the entire financial debt will be retired by Year 7.
Mission
• Zara will be an inspiring restaurant, combining an eclectic atmosphere with excellent and interesting food.
The mission is to have not only a great food selection, but also efficient and superior service - customer
satisfaction is our paramount objective. Zara will be the restaurant of choice for a mature and adult crowd,
couples and singles, young and old, male or female.
• Employee welfare, participation, and training are equally important to our success. Everyone is treated fairly
and with the utmost respect. Our employees will feel a part of the success of Zara Restaurant & Lounge.
• Our concept combines variety, ambiance, entertainment and a superior staff to create a sense of 'place' in
order to reach our goal of overall value in the dining/entertainment experience. We offer fair profits for the
owners and investors, and a rewarding place to work for the employees.
Keys to Success
1. Unique, Innovative & Contemporary: The creation of a unique and innovative fine dining atmosphere will
differentiate us from the competition. The restaurant will stand out from the other restaurants in the area
because of the unique design and decor. We will offer a fine dining experience in an electric atmosphere.
2. Product quality: great food, great service and atmosphere.
3. ‘Spice of Life' Menu: The menu will appeal to a wide and varied clientele. Our eclectic menu features
regional specialties around the globe, from Spanish ceviche, to Thai and Indian curries, to local crabcakes.
4. Employee Retention Focus: Employee retention and development programs will be a primary focus and
success platform for this business. Through these programs, we will be able to draw seasoned and elite
professionals and build a committed work force. We have budgeted for a stock option program for Chef and
Management positions to subsidize a lower salary base. This lowers our immediate overhead and attracts
quality staff.
5. Cost Control Focus: We will control costs at all times, without exception. Cost Control will be an integrated
function of the restaurant from the onset. Cost control is about managing the numbers - interpreting and
comparing the numbers that impact the bottom line. 80 percent of the success of a restaurant is determined
before it opens. Our focus is to reduce the cost of goods sold to meet our profit margin goals by managing the
following crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory, Rough Preparation,
Service Preparation, Portioning, Order Taking, Cash Receipts, Bank Deposits and Accounts Payable. We will
use of this restaurant/ethnic food business plan to track actual costs against our forecasts in managing
the business.
Due to intense competition, restauranteurs must look for ways to differentiate their business to achieve and maintain
a competitive advantage. Midtown/Downtown Atlanta's redevelopment requires a place that will fit into the 'new look'
of the community, one that is contemporary and entertaining. Zara will fill that niche.
Objectives
Zara Restaurant & Lounge's objectives for the first three years of operation include:
• Improving our Gross Margin from 65.41% in Year 1 to 67.10 in Year 2. These are attainable targets; our
‘stretch' is to attain 70.73% by Year 3.
• Promoting and expanding the Zara restaurant concept as a unique Midtown destination restaurant.
• Expanding our marketing and advertising in Atlanta and in the neighboring suburbs to increase our customer
base.
The atmosphere caters to a young but mature adult crowd. This is not a family dining establishment. Total space
requirements are 3,000 square feet. In total, the restaurant will provide seating for 110 patrons. Where possible,
consideration will be given to incorporate a dining patio. Zoning, parking, and accessibility issues will be reviewed as
key criteria. We will draw on our Advisory Board as part of the site selection and lease negotiation.
The Menu
Zara is focused on servicing Atlanta's growing demand for an ethnic eating experience. For lack of a better term we
are launching a ‘multi-ethnic' cuisine restaurant - a restaurant concept that responds to Atlanta's need for selection
and choice. Zara is a complimentary mingling of international cuisine on a single menu. The Midtown demographics
fit this concept perfectly.
The Management
Our management team has over 48 years combined experience in food, restaurant and hotel, business management,
finance, and marketing arenas.
Company Ownership
The restaurant will start out as an LLC corporation, owned by its founders, Zander Hunte and Peter Smith. Mr. Smith
will function as the General Manager and Executive Chef, and Mr. Hunte as Managing Partner.
Mr. Hunte and Mr. Smith have a long-standing professional relationship in the restaurant industry, stemming back
to Toronto, Canada. Mr. Smith is an accomplished restauranteur, having owned several full-service restaurants. He
currently owns Brassaii Restaurant (www.brassaii.com), and Bauhaus Bar and Nightclub. Mr. Smith is also an
international Restaurant Consultant for top organizations such as the Starwood Group, who own the hotel chains of
The Westin, Sheraton Hotels, Four Points, St. Regis, and W Hotels.
Mr. Hunte has a background in International Business Management, and is certified in Restaurant and Hotel
Management. Under the management of Zander Hunte, Myth Restaurant was a feature restaurant in Toronto, and
distinguished as a top 10 restaurant while under his management from 1992 - 1995.
Start-up Summary
We are currently negotiating a restaurant space of 3,000 sq. ft. in Midtown Atlanta, Georgia, and will open Zara in
October of this year.
Our start-up costs are mostly expensed equipment, furniture, painting, reconstruction, rent, start-up labor, liquor
license, and legal and consulting costs associated with opening our restaurant. At the start of business, $97,000 will
be allocated for business operations reserve. This is a solid start-up forecast based on our market analysis and our
knowledge and experience in the industry.
We will purchase the following $73,311 worth of current assets during start-up :
The two owners are personally committing $110,000 of capital, plus a $300,000 SBA 7(A) loan guaranty. In addition,
we have obtained a $130,000 grant from the city towards restoration of our historical building, as part of the city's
Midtown revitalization program, contingent upon locating in the proposed space. We are seeking $200,000 of equity
investment to fully fund Zara's startup costs.
The market has been carefully selected and tested for the necessary demographics and retail traffic necessary to
meet the goals laid down for profitability. The busy Midtown commercial/residential location has been chosen based
upon a successful demographic model and a traffic count of more than 33,000 cars daily.
Restaurant Design
Single-Level Design Concept: The total space requirement is 3,000 square feet. The restaurant will feature a
comfortable and open concept design. The central dining area will allocate 76 seats, the lounge 22 seats, and the
dining bar with 12 seats. In total, the restaurant will provide seating for 110 patrons. Where possible, consideration
will be given to incorporate a dining patio. Zoning, parking, and accessibility issues will be reviewed as part of this
analysis.
Optional Patio: During the busy summer months customers can also sit outside on our patio and we will offer a
special summer menu, featuring lighter fare, exotic drinks, as well as non-alcoholic offerings. The patio setting will be
a fun and casual atmosphere for the summer crowd.
Operating Criteria
The restaurant will be located in Midtown Atlanta. The restaurant will service lunch, dinner, and after-hours dining
during the week and weekends. The restaurant will operate during peak service time to take advantage of street
traffic, and after-hour patronage from the entertainment facilities in the area. Service will be available during the
following hours:
Requirements
Start-up Expenses
PROJECT MANAGEMENT $0
DESIGN $0
CONSTRUCTION $0
Plumbing $33,244
Electrical $7,964
Flooring $14,622
EQUIPMENT $0
OPERATIONAL $0
Inspections $750
Start-up Assets
Start-up Funding
Liabilities
Current Borrowing $0
Capital
Planned Investment
Investor 1 $40,000
Investor 2 $40,000
Investor 3 $40,000
Investor 4 $40,000
Investor 5 $40,000
Our wine list will be modest and primarily focused on wines from California, Spain, Portugal, and Argentina.
Approximately 25% will be available exclusively by the glass, and the remaining labels will be available by the
bottle. We will also feature a moderate international beer selection on tap and in bottles. The Zara bar features a
comprehensive selection of local and international spirits.
The kitchen staff will have the best in culinary education and work experience. Their creative talents will compliment
one another. The lounge and restaurant staff will offer the finest service in an electric atmosphere and offer
customers an extraordinary dining experience.
Zara Menus
Zara's varied international menu will feature Thai, Chinese, Spanish, and other regional flavors. The menu flows
together to create complementary elements. Normal dining will have a reduced Tapas, Appetizer and Entrée
selection, while the Fusion Dim Sum menu will have special items featured only for after-hours dining. The final menu
will be defined by the Executive Chef and paired with the wine menu. We have carefully selected a premium wine,
beer, and alcohol listing, from which we will choose a modest rotating selection. Zara's marketing will focus on our
exotic foods, but our hours, target market, and location will produce significant alcoholic drinks sales. Tapas, in
particular, are small dishes meant for sharing while drinking sangria, wine, or other mixed drinks, and the
Tapas menu will play up this idea with drink suggestions.
The list below offers a small selection of our opening menu offerings:
Zara Tapas
• Shrimp Baskets w/ sweet & sour peanut coulis Minced curry beef/chicken w/ onions in roti wrap (or spring
roll)
• Mixed Seafood Ceviche w/ couscous siding
• Bamboo Chicken Satay w/ kaffir lime and Sesame marmalade
Zara Appetizers
• Bread basket served with Olive oil, Black Pepper, and Goat Cheese dip
• Blue Crab Fritters with Mango-Tamarind sauce
• Crab Cake medallions w/ Shrimp & Lobster ‘Zara'
Salads
Entrees
Desserts
1. Portion Selection: Nearly 95% of our surveyed focus group endorsed having a choice of different size
portions. This statistic is in line with findings reported by the Tableservice Operator Survey. Zara's Tapas
concept is built to offer different-sized portions. Our customers want the option to choose what satisfies their
appetite.
2. Menu Variety: Ethnic restaurants are increasing in Atlanta. The proliferation of international cookbooks,
food magazines, TV cooking shows and imported goods offers ample evidence that America, as a whole, is
currently on an international tasting spree. In fact, eating places that identify themselves as ethnic
establishments numbered nearly 78,000 in 1999 and recorded sales of $30.5 billion. Our research results do
not identify any single ethnic style of restaurant as desired, but rather suggest that incorporating strong multi-
ethnic influences in the menu selection will be popular. Again, variety is the underlying element for this concept.
3. The Dining Experience: Customer satisfaction with food and service has been and continues to be of
utmost importance, but our findings indicate that the décor, lighting, bar, and other options to improve the dining
experience are also factors in customer decisions. Zara takes all these factors in consideration for the design of
this cosmopolitan restaurant.
4. Reasonable Prices: This was no surprise given the economic tide. Although the restaurant industry as a
whole has seen growth in 2002/2003, customers are demanding value for their dining dollar. Zara's menu is
priced at a mid-tier level, with no entrée over $20. In addition we have an extended Tapas and Appetizer
selection priced between $3.50 - $9.50, allowing budget dining in a full-service restaurant.
Market Segmentation
Zara's Restaurant & Lounge intends to cater to a wide customer base. We want everyone to feel welcome and
entertained. We have defined the following groups as targeted segments that contribute to our growth projections:
These particular market segments are 25-45 years old, have disposable income, and are seeking upscale, trendy,
and comfortable restaurant options. These are the types of people who frequent other restaurants and bars in the
area. They are likely to spend more on experiences they perceive as unique, cosmopolitan, and sophisticated. They
are also the most open to trying something new, foodwise, and will embrace our international fusion cuisine.
Market Analysis
Downtown Atlanta Couples 32% 17,645 18,527 20,565 21,593 22,673 6.47%
Downtown Atlanta Couples: The restaurant will have an intimate, romantic, enticing adult atmosphere that suggests
"date." Zara's will be the best date location in town. These young Midtown couples are generally very successful
working professionals. In most cases they are budgeting to eat out on a regular basis, as they don't have the time to
prepare food nightly.
The Destination Customer: Atlanta is a very 'sectioned' city, and consumers often look only in their own
neighborhoods for restaurant options. Zara will break these habits, using marketing to draw customers from outside
the main city limits. Zara will be a destination restaurant. Our Destination Clients tend to be new suburbanites that
miss the excitement of the inner city. They have disposable income, and will spend quite a bit on such outings. Zara's
will be especially appealing to married suburban couples indulging themselves with a "date night" downtown, away
from the kids. Many of these consumers are new to Atlanta from larger cities, accustomed to dining within the city
and at non-franchised restaurants.
High-end Singles: We will attract them with our eclectic atmosphere and layout. Our international menu, striking
decor, entertainment and events, excellent service and engaging clientele will confirm the feeling of being in "the in
place" in Atlanta. These are the individuals that pride themselves on socializing and dining at the premier locations -
The Image Seekers.
Tourists: Atlanta attracts many vacationers during the summer months of May through September. Zara's will be a
destination dining locale, with its attractive atmosphere, international menu, and lounge. A large percentage of the
tourist population are vacationing singles, here to socialize and be entertained. This is especially true for the tourist
population that visit for sporting and social events - they are not interested in family establishments.
Restaurants make money by taking inexpensive ingredients, combining them in creative ways, cooking them
properly, and selling them at a much higher price. Any ingredients wasted in the kitchen are money thrown out. Any
time wasted in seating customers, taking orders or preparing food is money walking away. While some entrepreneurs
think that success is as simple as a good location and a trendy concept, we know the truth:
To succeed in the restaurant industry, you need an understanding of the risks and financial conditions, the
ability to handle enormous pressure, and the organizational skills to bring off what is essentially a giant
catered party, two to three times a day.
Atlanta consumers are seeking variety and new experiences. Location is clearly important, but so is atmosphere and
distinctiveness. Our marketing challenge is thus to stand out from our competitors, not only as the "new" restaurant,
but as one that offers consistently high quality food, menu variety, and a unique atmosphere. Maintaining our edge
will depend partly on marketing ourselves as an adult-only destination, and not a family restaurant.
We will focus on establishing a strong identity in our community with a grand opening. Our main focus in marketing
thereafter will be to increase customer awareness in the surrounding communities. We will direct all of our tactics and
programs toward the goal of explaining who we are and what we do. We will keep our standards high and execute
the concept flawlessly, so that word-of-mouth will be our main marketing force.
We will create an appealing and entertaining environment with unbeatable quality at an exceptional price. As an
exciting and eclectic restaurant, we will be the talk of the town. Therefore, the execution of our concept is the most
critical element of our plan.
All menu items are moderately priced for the area. While we are not striving to be the lowest-priced restaurant, we
are aiming to offer exceptional food at reasonable prices for the average restaurant diner.
Competitive Edge
Zara's competitive edges are:
Competitor Analysis
Below are excerpts from our competitive analysis study.
We were able to draw some conclusions from this analysis that helped defined the concept and positioning for Zara:
1) Keep the menu pricing modest but offer superior food quality and presentation. We plan to keep the menu prices
under $20; 2) Midtown is a prime restaurant location. One Midtown Kitchen is in an obscure location but has thrived
as one of the more successful restaurants in the area; and 3) The customer base in this segment of Atlanta is ready
for after-hours dining, and is willing to travel to establishments that accommodate their needs.
This restaurant is a main competitor for Zara, a casual dining restaurant that has evolved to be a great success story
for the Midtown district. This restaurant served to validate 1) the tapas concept appeal for Midtown customers; 2) the
evolving need for after-hours dining; 3) tapas as a good food concept for after-hours dining (smaller portions, smaller
price); 4) the appeal of live Entertainment.
This restaurant has grown in popularity over the years, and has gained popularity as a destination restaurant that can
cater to business professionals as well as the local residents. The menu is somewhat formal for this market segment,
but the bar attracts a good crowd. During this study it was evident that some patrons came exclusively to sit at the
bar, without any intent of dining in the restaurant.
Cumulus is more of a formal dining restaurant and meets a certain need within the community, but I don't see it as a
direct competitor of Zara. I do feel that it has some very special elements that have helped it succeed over the past 3
years, which Zara can benefit from.
Although Cheesecake Factory is outside of Zara's restaurant district and not considered a direct competitor, it was
beneficial to analyze the most profitable restaurant in Atlanta to understand what contributes to their success.
Cheesecake Factor offers several key elements that would also benefit Zara: 1) Customer Satisfaction through
moderate pricing and high-quality food; 2) Location selection to benefit from core customer demographics, situated in
a busy/popular area for both business and residential traffic; 3) Exceptional Service, from the Valet, to Hosting, to
Wait, Bus, and Bar staff; and 4) Menu Variety, offering a broad array of menu items.
This restaurant is not in our market district and therefore not a direct competitor, although we do consider it an
‘indirect' competitor. Swing incorporates some of the characteristics that we have mapped out for Zara. Those
elements are: 1) A Tapas and Entrée menu – realizing that customers want varied meal size and variety; 2) A club
type atmosphere to entice the single scene and to drive bar sales.
Swing validates some of the elements uncovered in our market research as to what the new Atlanta diners are
looking for. This serves as a true validation that the timing is right for the Zara Restaurant & Lounge concept.
Location:
This was a very cosmopolitan restaurant located in a core business community. The restaurant was hidden in cross
streets and away from the general street traffic. This was a destination restaurant and a secondary selection for the
general customer base in this area.
Lesson Learned: As part of this analysis, we have determined that the downtown core is not a good fit for the Zara
concept. We will limit our site selection to the core Midtown district and the upper Downtown district. Midtown is
Atlanta's major growth district and is developing the residential infrastructure in pace with the business infrastructure.
Customer Segment:
Atlanta's downtown core is not ready for this type of restaurant. Atlanta's downtown core is a business district, and
residential development for this area is at the Genesis state. The primary customer base is the business person and
tourist. The largest percentage of this customer segment will be looking for a restaurant in which to conduct business
or a family establishment; Mumbo Jumbo would not be a primary selection in either case.
Lesson Learned: Zara's target market demographics are perfectly in alignment with the Midtown profile. Midtown
has a business core as well as a residential core. We will look to the business core for our primary daytime business,
but to our residential core for our dinner and after-hours patronage. In addition, the business core will look to Zara as
a place of socialization for dinner and after-hours unwinding. Mumbo Jumbo depended on the business segment for
their lunch and dinner profits, and customers who would travel from outside the downtown district to eat at the
restaurant – there was no static dinner segment.
Visibility:
Hand-in-hand with location, this restaurant also suffered from poor visibility. In the downtown core a large percentage
of business is from walk-in traffic. The business and tourist customers tend to select a restaurant from touring the
area and accessibility. Mumbo Jumbo was situated on a cross street behind the main street.
Lesson Learned: Although being situated on a main street is not as key in the Midtown district, we will ensure that
visibility is part of our site selection criteria. In addition, we will use signage and exterior décor as means to attract
customers and get noticed.
In all, this restaurant was a staple in Atlanta's downtown core for over 10 years, but key restaurant disciplines
(Location, Customer Segment, Visibility) came back to hurt them as the economic climate changed.
At the end of the day, everyone that sells prepared meals in this district is a Zara competitor, because we all compete
for the same home meal replacement dollar. However, there are two segments of the restaurant industry that are our
main competition: the casual dining restaurant and the fine dining value restaurant.
So, if the food and service is better at a fine dining restaurant than a casual restaurant, but price has become a factor
as a result of the economic turns, where is a customer more likely to go?
There is no absolute answer to the question, but the solution is to deliver the best food at the best price with the
highest level of service in one establishment. This is the very definition of value and the concept at the heart of Zara's
business model.
Marketing Strategy
Zara Restaurant & Lounge's Marketing strategy will be to promote our electric food, superior service, and exciting
concepts to draw in the local repeat customers. Marketing initiatives will concentrate on the following:
Customer Service:
In our years within the restaurant industry, customer service has always been the major draw for the dining clientele.
Food and atmosphere is far out-shadowed by superior customer service that turns a new customer into a repeat
customer.
Management will demand the wait-staff provide the very best in quality services to the customer, making certain that
they are content and satisfied with their dining experience. Wait-staff are thoroughly trained, and every 90 days they
undergo a performance appraisal. This is part of our Employee Manual, and Operations Manual guide.
• Selecting primary business publications with high specific market penetration, using The Creative Loafing
Dining Section, The Atlanta Journal Constitution, Atlanta City Search, and Social Diva, which all reach our
targeted demographics.
• Scheduling adequate frequency of ads to impact market with menu items and promotions.
• Where possible, positioning advertisements in or near entertainment/food related editorial.
• Redirecting customers to our website to register for upcoming functions, VIP lists, reservations, and flash
media promotions.
• Maximizing ad life with monthly and weekly publications.
Working with The Reynolds Group Media Co. (Zara Advisory Board), we will develop an advertising campaign built
around our Zara Diner theme, menu offering, location, and decor. We will support this plan with ads that reinforce the
Zara dining concept.
Additionally, we will develop a consistent reach and frequency throughout the year, targeting each specific customer
segment within a five-mile radius, and new 'suburbanites,' who still appreciate in-town dining.
Promotional Campaign:
The best way to reach our potential customers is to develop an intense advertising campaign promoting our Zara
concept of "Spice of Life." In addition to standard advertising practices, we will gain considerable recognition through
newspapers, newsletters and public announcements. Consumers will be encouraged to visit our website to be
greeted with a flash media intro that highlights the restaurant, past happenings, upcoming attractions and our
dynamic menu.
Our periodic customer surveys and weekly menu item sales evaluations will help us to understand what advertising is
working and what is not; basically, who we are reaching. Our goal is to understand our customer, measure the
success of our direct marketing and media activities, and redirect advertising as effectively as possible.
Publicity Strategy:
Working with The Reynolds Group, Zara will focus on the following publicity strategies:
• Develop a sustained public relations effort, with ongoing contact between key editors and top-level
personnel at local dining publications.
• Develop a regular and consistent package update program for the major target media, keeping key editors
abreast of all new promotions, and menu introductions.
• Establish contact with editorial staff for the purpose of being included in entertainment "round-ups"--product
comparisons in dining publications and the local papers.
• Produce a complete Zara Restaurant history and menu offering piece to be used as the primary public
relations tool for all target media editorial contact. This will also be effective for inclusion in press kits.
Press Release/Grand Opening: Zara Restaurant will release a series of press releases on the Grand opening.
Editorial Visitation: Leading up to the Grand Opening, and over the first 6 months of operations, we will invite the
most influential reporters and editors from all local publications to Zara Restaurant in order to evaluate our menu,
service, and atmosphere.
Publicity Revenues: We anticipate at least 10% of our annual sales will be generated directly from our publicity. A
full media kit will be sent to all local publications, and releases on new menu items will be made monthly.
Community: Zara will look for key opportunities to pair with local community development organizations and radio
stations to interface with our customers. We will continually look for local community programs in which we can
participate, in order to better our community, and give something back.
Marketing Program
In line with our Marketing strategy, we will employ three different marketing tactics to increase customer awareness of
Zara: In-Restaurant Marketing, Public Relations Marketing, and Media Marketing. Our most important tactic will be
word-of-mouth/in-restaurant marketing. This will be by far the cheapest and most effective of our marketing programs.
Word-of-mouth/In-Restaurant Marketing
• Restaurant Night: Every first Monday of the quarter, we will have a special evening for restaurant people.
A perfect night for the local area's restaurant owners, chefs and staff to get together to discuss the market and
food trends, and possible Co-op efforts to promote the Midtown district. This is not a conflict of interest, it is an
effort to increase visibility and patronage across the Midtown district. We will also invite the Midtown Alliance
committee for their participation.
• Monthly Dating Connection: With the increasing appeal of Internet and speed dating, the restaurant will
offer a monthly dating night. In addition to food and beverages, customers can choose from an array of dating
packages up for auction.
• Wait Area Marketing: Wait staff will service appetizers to customers waiting to be seated or on the wait list.
• Live Entertainment parties
• Special Events
• Valentine's Day
• Zara Halloween Masquerade party
• Wine tasting weekend
• New Year's Eve party
• Georgia Hospitality & Tourism V.I.P. Party: We will host a V.I.P. Dinner before the 'Grand Opening.' This
will serve the dual purpose of training our staff and introducing ourselves to the community. The list of
individuals we will invite comes from the Chamber of Commerce, Georgia Hospitality & Tourism, and Midtown
Development group. We want their full committment to the restaurant to draw the tourist dollars.
• Critics' Choice: Prior to the Grand Opening there will be two preliminary parties catering to the Media and
Critics community. We will encourage the media and restaurant critics to meet at the restaurant and review the
decor, service and food. This will be a preliminary review, where we will consider constructive input to make
minor revisions prior to the true Grand Opening. This initial review and input will give critics and media
commentors a stake in Zara's success, through their contributions to the final design.
• Brochures: Make a brochure for the in-town hotels and business establishments to provide to their guests
and staff, containing interior pictures of our restaurant, menus and prices.
• Government Relations: There are several Government offices in the Midtown/Downtown area. We will
approach them to cater business luncheons and private functions. This will offer us higher visibility for future
functions and community events. Word-of-mouth referral is very powerful and particularly amongst the business
community.
• Private Functions: Target marketing to businesses for regular business lunch and dinner entertaining, and
private functions.
Media Marketing
• Newspaper campaign: A very targeted media campaign to obtain featured articles about the restaurant in
their Living, Entertainment and Dining segments. Notices of all live entertainment segments and special
features will be posted to local newspapers' calendar announcements.
• Restaurant and Special Events Website: We have contracted with local design teams to deliver a high-
quality, navigable, constantly updated website.
• Media Relations: Several media relations teams will be utilized to market the Restaurant. Social Diva and
Green Frog are two media companies we will utilize for media relations. Both companies have an insightful
presence and connection with our target market.
• Billboard Advertisement: One month prior to the opening, distinct billboard ads will advertise the launch of
the Restaurant.
• Inner & Outer City Marketing: We will budget to attract customers from the suburbs.
Sales Strategy
Our strategy is simple: we intend to succeed by giving our customers a combination of delicious and interesting food
in an appealing environment, with excellent customer service, whether on their first visit or their hundredth.
Our marketing strategies are designed to get critics and initial customers into our doors. Our sales strategies must
take the next step and encourage customers to become repeat customers, and to tell all their friends and
acquaintances about the great experiences they just had at Zara.
New restaurants often make one of two mistakes: they are unprepared or underprepared for opening, and initial poor
service, speed, or quality discourages customers from returning, or they spend all of their efforts at opening, and are
unable to maintain the initial quality customers expect on return visits, decreasing word of mouth advertising and
leading to poor revenues.
Zara's sales strategy requires consistently high quality food, service, speed, and atmosphere. We can accomplish
this by:
• Hiring employees who genuinely enjoy their jobs and appreciate Zara's unique offerings
• Continually assessing the quality of all aspects mentioned above, and immediately addressing any problems
• Interacting with our customers personally, so they know that their feedback goes directly to the owners
• Evaluating food choices for popularity, and keeping favorites on the menu as we rotate seasonal foods and
specials
Sales Forecast
The following sales graph is based on first year start-up estimates only. We anticipate that the business will not be at
full operating capacity until the sixth month of operations. This is due to the competitive nature of the market and
existing customer loyalty. All factors governing our sales progress are outlined below in the Important Assumptions
section.
Our sales forecasts for years 3 through 5 are very conservative, compared to industry standard growth rates. (See
Ratios table for comparisons.)
Although we hope to do catering for local businesses and government offices with time, we will insist on payment at
delivery - we will not sell on credit.
Sales Forecast
Sales
Other $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Milestones
The following Milestones table lists important business milestones, with dates and managers in charge of each
deliverable. The milestone schedule indicates our emphasis on planning and managing the details.
Milestones
Design
Restaurant Design Complete 11/25/2004 12/12/2004 $0 Contractor X
Contract
Design
Interior Design Complete 11/25/2004 12/12/2004 $0 Contractor Y
Contract
Design
Kitchen Design Complete 11/25/2004 12/12/2004 $0 Contractor Z
Contract
Design
Submit Kitchen Plan for Approval 12/15/2004 12/19/2004 $0 Contractor Z
Contract
Design
Architect Review Board Approval 12/29/2004 1/31/2005 $0 Contractor X
Contract
Media
Launch Zara Website 3/15/2005 3/15/2005 $0 Alex
Marketing
Order Restaurant/Lounge
2/2/2005 3/20/2005 $0 Alex/Peter Owners
Furniture
Media
Web Site & E-Mail Media Launch 5/1/2005 6/5/2005 $0 Alex
Marketing
Media
Direct Mail 8/16/2005 8/16/2005 $0 Alex
Marketing
Media
Direct Mail 11/1/2005 11/1/2005 $0 Alex
Marketing
Totals $0