Business Plan: Mobile restaurant

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ISM UNIVERSITY OF MANAGEMENT AND ECONIMICS

BUSINESS MANAGEMENT AND ANALYTICS BACHELOR STUDIES

III year students

Vytautas Vasiliauskas

Arnoldas Kybartas

2014 05 31

MOBILE RESTAURANT

BUSINESS PLAN

Supervisor

Lecturer Thomas Frank

VILNIUS, 2014
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Table of Contents

EXECUTIVE SUMMARY ....................................................................................................... 4

Idea ......................................................................................................................................... 4

Our strategy ............................................................................................................................ 4

Our product and future growth .............................................................................................. 4

ORGANIZATIONAL STRUCTURE ....................................................................................... 5

Legal structure ....................................................................................................................... 5

Ownership Structure .............................................................................................................. 5

Organization Chart ................................................................................................................. 5

MARKETING PLAN ................................................................................................................ 7

Marketing objectives .............................................................................................................. 7

Marketing strategies ................................................................................................................... 7

Target market ......................................................................................................................... 7

Positioning statement ............................................................................................................. 8

Marketing mix ........................................................................................................................ 8

Brand name ........................................................................................................................ 8

Product/Service .................................................................................................................. 8

Pricing ................................................................................................................................ 8Distribution channels ......................................................................................................... 9

Marketing communications ............................................................................................... 9

Marketing research................................................................................................................... 10

Marketing budget ..................................................................................................................... 10

OPERATIONS PLAN ............................................................................................................. 11

Physical location .................................................................................................................. 11

Day to day activities............................................................................................................. 11

Management Activities .................................................................................................... 11

Sales activities .................................................................................................................. 12

People ................................................................................................................................... 12

Leadership ........................................................................................................................ 12

Employees ........................................................................................................................ 12

External Service providers ............................................................................................... 13

Training programs ............................................................................................................ 13

Facilities ............................................................................................................................... 13Mobile restaurant ............................................................................................................. 13


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Equipment ........................................................................................................................ 14

Quality Control Systems .................................................................................................. 14

Major Suppliers of key resources .................................................................................... 14

Management Control ....................................................................................................... 15

FINANCIAL PLAN................................................................................................................. 16

Summary .............................................................................................................................. 16

Sales revenue forecast .......................................................................................................... 16

Sources of revenue ............................................................................................................... 16

Potential customers estimation ............................................................................................ 18

First year revenue ................................................................................................................. 19

Second year revenue ............................................................................................................ 20

Third year revenue ............................................................................................................... 21

Income statement ................................................................................................................. 22

Cash flow schedule .............................................................................................................. 23

Explanation of the Cash Flow Schedule .............................................................................. 24

Cash inflow ...................................................................................................................... 24

Cash outflows................................................................................................................... 24

Balance sheet ....................................................................................................................... 25

Start up cash requirements ................................................................................................... 26

Costs ................................................................................................................................. 26

Fixed costs ....................................................................................................................... 26

Variable costs ................................................................................................................... 27

Financing strategy ................................................................................................................ 28

1st option .......................................................................................................................... 28

2nd option ........................................................................................................................ 28

GROWTH STRATEGY .......................................................................................................... 29
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EXECUTIVE SUMMARY

Idea

Our business plan idea is to create a chain of mobile restaurants. This is a simplified version

of a standard restaurant that most of the people go to eat for breakfast, lunch, and dinner. The

whole concept is very similar to the kebab kiosks that there are plenty in Lithuania, but there

are few major differences that our idea stands out. The first difference is mobility. There are

plenty of various food kiosks but neither of them can move, even though they are on wheels.

The second difference is the food itself, to our knowledge there arent any food kiosks where

you can actually buy a regular lunch instead of fast food.

Our strategy

We are planning to be very flexible and adjust to customer needs, and to fulfil working time

we are planning to cater whole day meals, for example in the morning our menus would

consist of fresh simple cup of coffee, tea or juice and some buns for those people who are in a

hurry. In the mornings our main selling spots could be where plenty of people are waiting for

public transportation, or at the universities campuses. For the lunch our main goal would be

to cater as much people as possible, thats why we would choose business center areas and

universities, that dont have, or have very small canteens for example ISM. For the evening

we could choose places, where people would like to gather, parks and other cozy places.

Our product and future growth

As mentioned above we would be very flexible and would have a competitive advantage

against our rivals, that we would serve fresh and good quality food. The client could choose

main meal, adding to the meal, side dishes, soups, deserts and various snacks and drinks.

Taking about the development of mobile restaurant idea we could see an opportunity to grownot only in our capital, but also to expand to cities such as Kaunas and Klaipeda, where

gathers a lot of students and are lot of business centers. After a year our optimistic plans are

to expand to other two Baltic capital cities Riga and Tallinn. Looking in the long time period

we are not tending to limit ourselves only by a mobile restaurant, after years of being

attractive to our customers we are willing to bring a group of our brand lovers who would

create a demand for our restaurants chain and we will be forced to create not only mobile

restaurant, but also a normal healthy restaurant chain.
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ORGANIZATIONAL STRUCTURE

Legal structure

Our company will be registered as a private limited liability company. In Lithuania it will be

called UAB Mobilus restoranas. According to Lithuanian policies, the start-up capital of a

company must be higher than 10000 Lt in order to register the company as UAB. Also, there

should be no more than 250 shareholders inside the company. Finally, the organization cant

distribute shares outside the company.

We will need to collect several documents in order to be registered as UAB Company. Also,

the bank account with minimum capital must be opened, as well as a bank certificate proving

the availability of the funds should be obtained. Besides that, the owners of the companyshould get a confirmed electronic signature from the Centre of Registrar of Certificates. Also

it is important to complete VAT registration, because annual turnover is expected to be more

than 155,000 LT. Finally, the company should obtain the official seal of the company.

Ownership Structure

The owners of the company will be the two general managers, who will run the business.

They will be responsible for hiring new employees. Also, they will manage their documentsand their salaries. GM will supervise all of companys employees. Therefore, the owners

must be management experts. They will be the most important figure for the company, since

they will take responsibility for all activities of the company. The general managers will

make all decisions considering the operations of the business.

Organization Chart

The company will have 10 employees during the first three years of operations. The mainmanagement team will include two general managers. The general managers will constitute

the board of directors. They will make major decisions about the organization. In addition to

that the company will employ part-time marketing company that will help the store to

increase sales, but this will not include in the number of 10 employees. The company will

also employ sales people and chefs for operating the mobile restaurants.


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The organization will have a vertical information flow. The information will flow upward and

downward. All decisions will be made by the general managers and will be communicated to

lowest chain part. Employees will be able to communicate their suggestions and thoughts

about the business to the general managers directly. Thus, it is expected that no problems

with communication will appear.

General

Managers

Salespeople

Kitchenchefs


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MARKETING PLAN

Marketing objectives

Our main marketing plan objectives:

Awareness (to make customers aware that new restaurants are available).

Gain popularity between our potential customers and till the end of the first year to

attract 15% of them.

To generate revenue of 4 804 575 Lt in the first year.

In the second year to increase our sales by 60% and the third year sales by 20%

comparing to the second year.

To become a new business people attribute of a healthy lifestyle.

To become a new trend for youths, where they could have a conversation with friends.

To become recognizable and most trusted mobile restaurant brand in the capital city

of Vilnius.

Marketing strategies

Target market

In Vilnius there are about 400 cafs and restaurants, most of them are located in the citycenter. For business people, who work in business centers distant from the old town arise a

problem, how to have a time to drive to nice restaurant, to dine and come back to work during

one hour length lunch break and for students restaurants and cafes in old town and city center

is not affordable.

Our main target group would be employees of business centers, who will be having whole

meal lunch. Average income of our primary target group is approximately about 2500 Lt, so

we could do the assumption that they could afford to spend from 17 to 22 Lt for the lunch

every day. Our customer age is about from 20 to 35 years, because these people lifestyle is

similar to west Europeans or Americans, which are mostly open for innovativeness and

search ways to eat healthy and at the moment save their time.

Secondary target group is youth, who is always in a hurry and do not have time to drink cup

of coffee with their friends. This target group could be named as an active students for whom

24 hours is not enough to do everything they have planned. This target group income is not as

high as the first groups, but they still will visit our restaurant because of a new trend and

during their conversation with their friends they could afford to drink a cup of coffee with

some snacks or desserts from our menu.


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Positioning statement

Mobile restaurants are going to be the only one restaurant brand in Lithuania, which have

wheels and could be moved in every place, which has a parking lot. It would be the first

restaurant positioned as mobile and flexible, which provide high quality whole meal food inconvenient location only in a several minutes from taking the order. The time spent in the

mobile restaurant would not exceed the time you eat in a fast food restaurant (McDonalds),

but the quality of the food will make you feel healthy and active to do the remaining job after

lunch, and the place we are located will decrease your lunch and journey time minimum by

20 minutes.

Marketing mix

Brand name

Mobile restaurant name would reflect our two main advantages among our rivals. Mobile will

mean that we are quick, movable, live and flexible. Restaurant - that we are qualitative and

ready to serve food, which is fresh, tasty and affordable.

Product/Service

Our business lunch menu would differ from fast food and would not be a junk food, because

we would provide only regular dishes which is usual in normal restaurants, also our service

would be fast comparing to regular restaurants, because you would not need to wait half an

hour for your order. The location of our restaurant is changeable and according to the demand

location is chosen where it is most handy for the most of our customers.

Pricing

We will be affordable for people whose income is little bit less than average in Lithuania

about 2000 Lt and for all the others who want high quality meal in extremely short time. Our

menu is created to be available for customers according to their needs.


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Soup of the day + salad + drink (juice, coffee or

tea)

17 LT

Soup of the day + main dish + drink (juice,

coffee or tea)

19 LT

Soup of the day + salad + drink (juice, coffee or

tea) + dessert or snack

20 LT

Soup of the day + main dish + drink (juice,

coffee or tea) + dessert or snack

22 LT

Soup of the day 7 LT

Salad 10 LT

Main dish 13 LT

Dessert 6 LT

Snack (bun or croissant) 4 LT

Juice 4 LT

Coffee or tea 5 LT

Distribution channels

For the first years we are planning to have three restaurants on wheels, whose location could

be changed according to the demand. But most attractive locations for us are the business

centers which are located not in the city center. In these business centers approximately are

working about 25000 people which are a lot promising to create a demand for our restaurants.

After lunch hours we are planning to move into places that are popular among youth it is park

areas or campuses of universities, also during the weekends in the warm period of the year

we will participate in sport events.

Marketing communications

Our first marketing communication would be the leaflets. Leaflets will be distributed among

the business centers employees to create as much awareness as we can, because this is our

main target group. In most of the Lithuanias offices we could see a trend of listening to the

normal or internet radio and broadcasting our advertising through popular radio stations wewill reach our main target group and other potential customers. Also we will use banner

advertising in popular news internet pages, because a lot of people are reading news there

during the work time and another marketing communication would the promotion through

Facebook, where we could announce our menu.


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Marketing research

To understand our main target group needs we will do the survey, as a sample we will take

about 1000 people from business center. We think that this sample will be big enough to

represent the needs of whole population of our main target group. We will create aquestionnaires which will help to improve our decision making and help to avoid serious

problems in the future, and people who will participate in our survey we will give a free cup

of coffee or tea.

Marketing budget

We plan that our marketing budget would be about 20000 Lt. To print 100000 leaflets will

cost about 2000 Lt, we hope this would be enough to get awareness between the business

people in the offices. In May we will launch the one month advertising broadcast in the radio

station in which one month cost about 10000 Lt. After three months in September we will

launch the 3 month banner advertising campaign which in total will cost about 7500 Lt.

Nowadays most effective and attracting the most attention of consumers is promotion through

the Facebook, which is for free. In our plans our marketing budget should not exceed the

20000 Lt.
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OPERATIONS PLAN

Physical location

For the first three years we are planning to use our mobile restaurants as headquarter. As the

shelf of the restaurant has enough places for the kitchen, we might use some space for the

tables and computers. The places of headquarters naturally become the place where are our

restaurants located.

Our main targeted regions, as mentioned in the beginning of this business plan, are the places

where the most business centers are located, later we might move to the universitiesterritories and expand to other cities (Kaunas, Klaipeda, Riga and Tallinn). Business centers

are probably the safest place to keep and locate our mobile restaurants during nights, as there

is plenty of security over there.

Day to day activities

Our mobile restaurants will operate from 07:00 to 23:00, all week long, which means that

each restaurant will have 1.5 shifts.

Our company, for the first two-year is planning to employ 3 chefs, 5 sales people and 2

general managers, in total there will be 10 employees.

Management Activities

For the first year of operation, general managers main daily tasks will involve mainly

directing and coordination the activities of the business and the departments concerned with

sales, organization and distribution. They will have to develop and maintain a comprehensive

understanding of the working procedures.

For the first year of operations, the general managers will prepare and assign specific duties

for the sales people. They will mainly be concerned with serving and attracting as many

customers as possible.

The general manager will also be responsible on signing the contracts with the future

suppliers and partners. He will provide support in managing projects run by the project

manager, including execution in a timely, accurate and consistent manner the allocation of

resources.

The general manager will prepare and review budgets on the regularly base gathering

information for planning of the future expenses, and allocating cash resources where needed.Moreover, he will summarize and consolidate the budget estimates.


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Sales activities

We will have 5 sales people, whom duties will involve working with cash registers, serving

customers, cleaning restaurant place, preparing outside tables and driving mobile restaurants

to the places where those restaurants will be located. They are a very important part ofbusiness, as company performance will very strongly depend on their performance. Even

though we will have 3 mobile restaurants in the first few years we will need 5 sales people

because there will be one and a half shift, so that all the people would get appropriate

working time.

People

Leadership

General Manager (salary range: LTL 3000/ month LTL 4000/ month) Is the person

driving force behind the company; he or she will make things happen, put together resources

to support the company and take the products and services to the market place. The individual

is the leader of the organization, its duties being handling external relations with the

companys suppliers, customers and partners. Also, the individual is in charge of controlling

the team and evaluating the performance of each individual. The General Manager will be the

person who will set goals for each mobile restaurant, and the one that will ensure the goals

are met.

Employees

Sales person (salary range: LTL 1500/ month LTL 2500/ month) Is the person that is

responsible for the operations of the mobile restaurant; he or she will guide work together

with kitchen chefs and will be responsible for serving the clients, for the visual looks of the

restaurants (cleanliness) and responsible that there are enough supplies. Sales person will be

in charge of driving the mobile restaurant to the necessary place and to prepare mobile

restaurant for the working day.

Chef (salary range: LTL 2500/ monthLTL 3500/ month)Is the person that is responsible

for everything in the kitchen; he or she will take all the responsibilities of all the food. Duties

of a chef are to ensure the taste, visual looks and healthiness of the food. Chefs will also be

responsible for creating daily menus, cleaning working place and making list of all needed

products.


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External Service providers

Contracted Accountant/bookkeeper (expenditures range: LTL 8.000/year LTL 12.000/year)This company will be in charge of the primary responsibility for our company financial

records, making sure the appropriate taxes are paid. They are also in charge of overseeing the

efficient use of funds related to tasks. Also, they will work closely with the companys clients

in preparation, explanation and verification of any financial paperwork. Another major task

accountants/bookkeepers have is in helping customers go over their budgeting and help them

make plans for future investments.

Training programs

Our company is planning to have only one training program for the first few years. This

training program will be for both, chefs and sales people. Training program will include all

the instructions how to operate the mobile restaurant, as operating this machinery requires

special trainings. Training will also include main instructions of what to do in case of

technical failure and etc. We are planning to have this training a month before our mobile

restaurants will start to operate.

Facilities

Mobile restaurant

We are planning to buy 3 mobile restaurant facilities for the first few year. Mobile restaurant

will consist of truck, restaurant shelf, storage compartment and office shelf. Complete

restaurant costs 660.000 LTL excluding kitchen and other necessary equipment.


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Equipment

Main expenditures for our mobile restaurants equipment will go to the kitchen equipment,

which will cost 200.000 LTL for each mobile restaurant. Other equipment expenditures will

consists of cash registers, office equipment and software. The total price for this equipmentwill be 50.000 LTL

Quality Control Systems

Sales Person will be responsible for the quality control, because he will receive the products

from our suppliers and in most cases will be the most frequent member who will mostly

communicate with the customers. For sure we trust our supplier VILSIDA, because the brand

name speaks for itself and guarantees the quality, but to be sure our Sales Person, as I have

mentioned before, will supervise every shipment. In the supervision also will be involved our

restaurant Chef who will evaluate the freshness and quality level of the food. Chefs opinion

is most important, because he is preparing the dishes and is the person who is responsible that

our customers will be satisfied by our product. Service quality control also will be the duty of

our Sales Person, because his task would be to initiate conversation with the customers that

they could share opinion about the service. Little surveys among our visitors will help to

improve our service and ensure the sustainability in our activities long time period.

Major Suppliers of key resources

In restaurant businesses one of the main key resources is food, because our menu will consist

of various courses, including drinks, soups snacks and main dishes, we will need strong

supplier partnership, which could provide qualitative food in time. Mobile restaurant is

planning to create partnership with one of the biggest food suppliers in Lithuania named

VILSIDA. UAB VILSIDA was established in 1997 and through the years have created

reliable brand image. Years of experience and cooperation with foreign partners from Russia,

Ukraine, Latvia, Estonia and biggest local retail chain brands such as Maxima, Iki and Rimi

led to a wide range of quality products, various flavors and favorable prices. Collaboration

with such supplier will guarantee the highest quality and lowest prices in the market.


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Management Control

At the top of our companys structure will be General Manager who is the driving force of

our mobile restaurants. Regular review meetings will be organized in every beginning of theweek, where all the team members could share their opinion and observations about the

improvement of the procedures in service and product preparation. Direct supervision will be

used to find out about the performance of every employee and if some weaknesses will be

noted, training will be provided to raise employees skills. Sales Persons and Chefs will

provide their reports to General Manager, if anything has changed in the process and why,

also provide suggestions how to fix the problem and share the future plans how to avoid the

arising difficulties. The biggest control force will be reflected in the financial statement,

which must be prepared in every three months. There would be easiest way to check and

measure performance, because number never lies and shows have you reached your set tasks

and plans.


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FINANCIAL PLAN

Summary

In Vilnius there are about 400 cafs and restaurants, most of them are located in the city

center. For business people, who work in business centers distant from the old town arise a

problem, how to have a time to drive to nice restaurant, to dine and come back to work during

one hour length lunch break.

Sales revenue forecast

According to the data collected by tv show Pinig karta(Cash generation) regular business

lunch cost are in the interval from 10 to 26 Litas. Business lunch menu mostly offer a soup of

the day, main dish or salad, also sometimes it includes a juice, coffee or tea, and very rarely it

offers desert or snacks. In cafs where business lunch cost about 10 to 13 Litas you will get a

shoddy food which is not as good quality, but people who get less than average income it is

the solution. Average income in Lithuanias capital Vilnius are approximately about 2500

Litas, people with such income search for higher quality food and are ready to spend from 15

to 25 Litas for lunch.

Sources of revenue

The main idea to sell our dishes is to sell them near business centers. There are 3 business

centers where in each work around 5000 people, this makes a total of around 15000 people

just in 3 business centers. There are around 20 smaller business centers each having around

500 people working in, which makes additional 10000 potential customers. Added these two

numbers together we get around 25000 of potential customers.

The first thing we should do is to decide how many mobile restaurants we need, and where

could we park them in lunchtime. The map shows how business centers are spread. All red

dots mark business center, bigger red dot marks a business center where works more than

2000 people.


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As we can see from the map we need at least 3 mobile restaurants. With 3 mobile restaurantswe would be able to reach around 12000 customers, for them it would require not more than

5-minute walk to reach our restaurant.

Each mobile restaurant would have around 4000 potential customers only from business

centers.


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First year revenue

As we will start our activities only in the beginning of April we will have a not full year of revenue, which means that for the first year our

company will have a big loss. For the second year we are planning on break-even strategy.

Customers/Month Price % ofpeople

January February March April May June July August September October November December Annual Revenue

Soup of the day +

salad + drink (juice,

coffee or tea)

17,00

Lt

10% 0 0 0 3000 4200 3825 3375 2625 2625 4575 5325 5700 35250 599 250,00

Lt

Soup of the day +main dish + drink

(juice, coffee or tea)

19,00Lt 30% 0 0 0 9000 12600 11475 10125 7875 7875 13725 15975 17100 105750 2 009 250,00Lt

Soup of the day +


coffee or tea) +

dessert or snack

20,00

Lt

5% 0 0 0 1500 2100 1912,5 1687,5 1312,5 1312,5 2287,5 2662,5 2850 17625 352 500,00

Lt

Soup of the day +

main dish + drink


+ dessert or snack

22,00

Lt

8% 0 0 0 2400 3360 3060 2700 2100 2100 3660 4260 4560 28200 620 400,00

Lt

Soup of the day 7,00

Lt

7% 0 0 0 2100 2940 2677,5 2362,5 1837,5 1837,5 3202,5 3727,5 3990 24675 172 725,00

Lt

Salad 10,00

Lt

7% 0 0 0 2100 2940 2677,5 2362,5 1837,5 1837,5 3202,5 3727,5 3990 24675 246 750,00

Lt

Main dish 13,00

Lt

9% 0 0 0 2700 3780 3442,5 3037,5 2362,5 2362,5 4117,5 4792,5 5130 31725 412 425,00

Lt

Dessert 6,00

Lt

4% 0 0 0 1200 1680 1530 1350 1050 1050 1830 2130 2280 14100 84 600,00 Lt

Snack (bun or

croissant)

4,00

Lt

10% 0 0 0 3000 4200 3825 3375 2625 2625 4575 5325 5700 35250 141 000,00

LtJuice 4,00

Lt

3% 0 0 0 900 1260 1147,5 1012,5 787,5 787,5 1372,5 1597,5 1710 10575 42 300,00 Lt

Coffee or tea 5,00

Lt

7% 0 0 0 2100 2940 2677,5 2362,5 1837,5 1837,5 3202,5 3727,5 3990 24675 123 375,00

Lt

Total income 4 804 575,00

Lt


20/29

Second year revenue



Soup of the day +


coffee or tea)

17,00

Lt

10%

5700 6000 6300 6350 7000 7200 7200 7100 7000 6500 6200 6000 785501 335 350,00

Lt

Soup of the day +

main dish + drink


19,00

Lt

30%

10700 11000 11300 11350 12000 12200 12200 12100 12000 11500 11200 11000 1385502 632 450,00

Lt

Soup of the day +


coffee or tea) +dessert or snack

20,00

Lt

5%

2900 3000 3200 3300 3400 3450 3500 3100 3200 2950 2900 2850 37750

755 000,00

Lt

Soup of the day +

main dish + drink


+ dessert or snack

22,00

Lt

8%

3200 3300 3500 3600 3700 3750 3800 3400 3500 3250 3200 3150 41350909 700,00

Lt


Lt

7%3150 3250 3450 3550 3650 3700 3750 3350 3450 3200 3150 3100 40750

285 250,00

Lt

Salad 10,00

Lt

7%3100 3200 3400 3500 3600 3650 3700 3300 3400 3150 3100 3050 40150

401 500,00

Lt

Main dish 13,00

Lt

9%3800 3900 4100 4200 4300 4350 4400 4000 4100 3850 3800 3750 48550

631 150,00

Lt

Dessert 6,00

Lt

4%3600 3700 3900 4000 4100 4150 4200 3800 3900 3650 3600 3550 46150

276 900,00

Lt

Snack (bun or

croissant)

4,00

Lt

10%3700 3800 4000 4100 4200 4250 4300 3900 4000 3750 3700 3650 47350

189 400,00

Lt

Juice 4,00

Lt

3%2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350

141 400,00

Lt

Coffee or tea 5,00

Lt

7%2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350

176 750,00

Lt


Lt

From the table above we can see that the first the second year company will increase its revenue by 60% due to the full revenue year and more

customers that will get to know our restaurant.


21/29

Third year revenue



Soup of the day +


coffee or tea)

17,00

Lt

10%

5700 6000 6300 6350 7000 7200 7200 7100 7000 6500 6200 6000 785501 335 350,00

Lt

Soup of the day +

main dish + drink


19,00

Lt

30%

10700 11000 11300 11350 12000 12200 12200 12100 12000 11500 11200 11000 1385502 632 450,00

Lt

Soup of the day +


coffee or tea) +dessert or snack

20,00

Lt

5%

2900 3000 3200 3300 3400 3450 3500 3100 3200 2950 2900 2850 37750

755 000,00

Lt

Soup of the day +

main dish + drink


+ dessert or snack

22,00

Lt

8%

3200 3300 3500 3600 3700 3750 3800 3400 3500 3250 3200 3150 41350909 700,00

Lt


Lt

7%3150 3250 3450 3550 3650 3700 3750 3350 3450 3200 3150 3100 40750

285 250,00

Lt

Salad 10,00

Lt

7%3100 3200 3400 3500 3600 3650 3700 3300 3400 3150 3100 3050 40150

401 500,00

Lt

Main dish 13,00

Lt

9%3800 3900 4100 4200 4300 4350 4400 4000 4100 3850 3800 3750 48550

631 150,00

Lt

Dessert 6,00

Lt

4%3600 3700 3900 4000 4100 4150 4200 3800 3900 3650 3600 3550 46150

276 900,00

Lt

Snack (bun or

croissant)

4,00

Lt

10%3700 3800 4000 4100 4200 4250 4300 3900 4000 3750 3700 3650 47350

189 400,00

Lt

Juice 4,00

Lt

3%2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350

141 400,00

Lt

Coffee or tea 5,00

Lt

7%2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350

176 750,00

Lt


Lt

As we can see from the third year sales forecast, we can see that the companys revenue will increase by another 20% comparing to the second

year. The reasons are similar to the second year increased revenues, more and more customers will get to know our services and start

appreciating our good quality and fast serving time food.


22/29

Income statement

2015 2016

Sales 4804575 7734850

Cost of Goods Sold 4600586 7458791

Gross Profits 203989 276059

Operating expenses

Marketing budget 20000 16000

Parking spaces rent 50000 43008

Salaries 117000 163000Training 2000 0

Utilities expense 35200 42000

Depreciation

Kitchen equipment 3500 3500

Vehicles 9000 9000

IT equipments 500 500

Restaurant equipment 2500 2500

Total operating expenses 239700 279508

Operating income before tax -35711 -3449

Income tax (15%)Net Income -35711 -3449

As we can see from the first year income statement the company will face a very big loss,

which is 35711 Lt, the reasons are due to the not full revenue year and that we will not be

able to attract the customers immediately. For the first year we need high marketing

expenses, also we need to train our new employees how to deal with all the equipment. We

should not forget that we will have to rent spaces for our mobile restaurants from city

municipality or private enterprises which will significantly increase our operating expenses.

For the second year, we can see a much different situation, as our company should more-lessreach a break-even point. The reasons are that our sales will increase significantly which will

also increase revenues. We are also planning to spend less money o marketing, because the

foundation for companys marketing will be built in the first year. For the second year we are

also planning les parking spaces expenses, the reasons are that we will get in touch with the

enterprises and municipality from whom we rent parking spaces and hopefully we will get

some discounts. We will also not have any training expenses as the employees will have right

skills from the second year.

According to approximate calculations, the restaurant will break even in the middle of March

of the third operational year. During this month the total costs and total revenues will be

equal.


23/29

Cash flow schedule

Projected Cash Flaw for the year I

January February March April May June July August September October November December

Beginning

cash

balance

3001500 271500 271500 271500 248060,766 244565,838 238900,815 230631,677 218022,347 205413,017 204088,185 207103,545

Cash

Inflow

Loan 2800000Owners

money201500

Sales 0 0 0 408900 572460 521347,5 460012,5 357787,5 357787,5 623572,5 725797,5 776910

Total

cash from

oper.

0 0 0 408900 572460 521347,5 460012,5 357787,5 357787,5 623572,5 725797,5 776910

Cashoutflows

Marketing

budget12000 1000 1000 1000 1000 1000 1000 1000 1000

COGS 391539,23 548154,93 499212,52 440481,64 342596,83 342596,83 597097,33 694982,14 743924,54

Salaries 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333

Rent 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56

Training 2000

Utilities

exp.3911,11 3911,11 3911,11 3911,11 3911,11 3911,11 3911,11 3911,11 3911,11

Equipment 2730000Total

cash

outflows

2730000 0 0 432339,234 575954,928 527012,523 468281,638 370396,83 370396,83 624897,332 722782,14 771724,545

Endingcash

balance

271500 271500 271500 248060,766 244565,838 238900,815 230631,677 218022,347 205413,017 204088,185 207103,545 212289


24/29

Explanation of the Cash Flow Schedule

Cash inflow

It is expected that the beginning cash balance will be 3001500 Lt. Our Company will take a

loan in order to operate. The number is extremely high, because we will heavily spend money

on purchasing restaurant equipment and marketing activities. Also, the company needs this

cash for buying goods from suppliers.

Cash inflow will consist of money from investments and sales. Revenue will start to occur

only in April, when all our restaurants will start to operate. Thus, cash inflow of the first year

is calculated for 9 months (from April till December).

Cash outflows

Cash outflow will consist of different expenses. Firs expenses will be associated with

purchasing all the equipment we need, after that there will be we months of no expenses as

our company will wait for the arrival of all ordered equipment. Our company will use this

time to find parking places, suppliers of all the goods and partners. In March, registration of

the business costs will appear. In April, the store will pay for the ordered equipment. Many

expenses will start to occur on April. It is expected that we will start our operations in this

months. Thus, the company will start to pay rent and utilities expenses. The company will

start to pay for marketing activities. Also, the company will find employees for operating thestore. Thus, training costs will appear. Finally, the company will start to order food and non-

food goods. Thus, the company wont be empty on December 31. Overall, the store will have

ending cash balance of 212289 Lt at the end of December.


25/29

Balance sheet

Mobile restaurant

Balance Sheet

For the year ended December 31, 2015Assets Liabilities and owner's equity

Current assets Current Liabilities

Cash 212289 Annual repayment of Loan 100000

Inventory Long-term Liabilities

Total current assets 212289 Loan 2800000

Fixed Assets Total Liabilities 2700000

Restaurant equipment 2730000 Owner's equity

Accumulated depreciation 15500 Total owner's equity 226789

Net fixed assets 2714500Total Assets 2926789 Total Liability and equity 2926789

At the end of December the company will have cash of 212289 Lt (see cash flow, p. 23). The

company will not have any inventory, due to the holiday period. Thus, current assets will

constitute 212289 Lt. The Company will also have fixed assets, such as equipment. It will be

worth of 2714500 Lt after depreciation. Thus, the company will have total assets of 2926789

Lt. The store will have a long term liabilities of 2800000 Lt and current Liabilities of 100000

Lt. Retain earnings will be positive during the first year. They will be 226789 Lt. Total

liabilities and owners equity will be the same as total assets 2926789 Lt.


26/29

Start up cash requirements

Overall, the company will need 3001500 Lt for operations, before the business will become profitable. That money will be needed for operations

during 3 years. The largest part of that cash will be needed to purchase all the equipment and keep going until the store will become profitable.

The store will spend 2730000 Lt for buying equipment. 263200 Lt will be spent on all operations that will be done during the first year. These

include marketing expenses, paying parking rent, utilities, and salaries.

Costs

For the first year, the main costs are the restaurant and the equipment purchase. As mentioned above, for the first year we are planning to

purchase and create 3 mobile restaurants, this includes 3 vehicles, which will carry restaurant, kitchen equipment, solar battery system and the

restaurant base. Costs table is missing marketing cost, which we will calculate later in this business plan.

Fixed costs

Qty Price Cost

Truck 3 400000 1200000

Restaurant shelf 3 200000 600000

Solar panels 6 30000 180000

Kitchen equipment 3 200000 600000

Additional equipment and accessories 3 50000 150000

Total cost 2730000


27/29

Variable costs

January Februar

y

March April May June July August Septembe

r

October Novembe

r

Decembe

r

Food for meal

production

0 0 0 300000 42000

0

382500 33750

0

26250

0

262500 45750

0

532500 570000

Drinks 0 0 0 60000 84000 76500 67500 52500 52500 91500 106500 114000

Snacks 0 0 0 60000 84000 76500 67500 52500 52500 91500 106500 114000Cups, napkins, knives,

forks, etc.

0 0 0 30000 42000 38250 33750 26250 26250 45750 53250 57000

Maintenance 0 0 0 12000 16800 15300 13500 10500 10500 18300 21300 22800

Total cost 0 0 0 462000 64680

0

589050 51975

0

40425

0

404250 70455

0

820050 877800

Total cost for the first year 5701500


28/29


29/29

GROWTH STRATEGY

Mobile restaurant idea is viable and has potential to grow through the years if the right

strategy would be chosen. Whole concept of mobile restaurant idea consists from two words

healthy and fast.

Nowadays people are concerned about their lifestyle and want to come back to the old,

healthy lifestyle. The pace of life is getting faster and faster through the years and anyhow

could stop it. The surveys coming from the west shows that fast food and high speed of life

decreases life expectancy by many years and makes people to desire for changes. This creates

a niche for green food restaurants where food is healthy and beneficial for your body and

soul. This new trend has created a demand for new profitable healthy food business, which is

gaining popularity all around the world, including the Lithuania too. The new green

restaurant chain in Lithuania TakeWay is expanding in enormous speed and has enormous

success among other restaurants.

Our future growth strategy is to collaborate with TakeWay, because they are growing very

fast and already has strong basis under their feet. Both restaurants Mobile restaurant and

TakeWay declare themselves as healthy and fast and could create a partnership with big

potential to become strong successful brand not only Lithuania, but also in the region of

Baltic countries, without changing their nature and prime strategies.

The benefit for us would be that we would have a strong back behind us, which would help

us to become more popular among youth, because TakeWay visitors are mostly from 15 to 23

years old, and benefit we bring in the collaboration is that our main customer auditorium is

more solid, because our target market consist of businessmen who are from 20 to 35 yearsold. This cooperation will help to capitalize this trend 100 percent and become strongest

players in the market. After fulfilling these objectives we could create a chain of normal

TakeWay and Mobile TakeWay restaurants, which could sell franchise to other countries

such as Latvia and Estonia.

This growth strategy is valid and has big potential, because pizzas and other fast food are the

past and now it is time for new business.

Documents

Business Plan: Mobile restaurant