THE WHISTLE STOP
520 N. Central Drive
Cleveland, OH 44123
The Whistle Stop's business plan gives a simple description of the owner's plans for the business. The plan contains helpful financial information for those interested in learning more about the costs associated with opening a restaurant establishment.
The Whistle Stop Restaurant, which will be located in the Cleveland Railroad Depot, will be a family-oriented, clean restaurant offering ice cream desserts, subs, sandwiches, pizza and a wide variety of Italian food.
Currently, the property holds the Cleveland Ice Cream Parlour. I plan to keep many of the same menu items and add a line of Italian food. The building, which is a unique, eighty year-old depot, is structurally in good condition, although it is in need of some minor repairs.
I will be the owner/operator of the restaurant, and my main goals will be to provide excellent quality, service and cleanliness to Whistle Stop customers.
By being involved in the daily operations of the restaurant, I can use my 15 years of experience in the service industry to directly impact the quality of customers' visits to Whistle Stop. Through an improved and professionally run operation, our guests will be sure to experience a pleasant atmosphere each time they visit.
The clientele that I wish to attract will be the blue collar work-force and farm workers, and their families, located in the Cleveland area, that want a reasonably priced alternative to fast food.
Whistle Stop's hours of operation will be 11:00 a.m. - 10:00 p.m. daily, with the possibility of expanding to include breakfast.
I anticipate using 3% of sales for advertising and improvements each year. This money will be used for billboards, print advertisements and a message board, all of which will be designed to develop and increase public awareness of Whistle Stop.
While many businesses expend much time and money to create a unique establishment, my business is already unique by virtue of being located in an actual old depot. I plan to capitalize on this by stressing the train station's history. Therefore, I am in the process of obtaining railroad memorabilia, signals, signs, and possibly even a caboose.
Together with the improved parking, lighting, and general appearance of the building, I hope to transform the depot into a comfortable eating establishment for residents, as well as a unique travel destination for visitors to Cleveland. By providing a quality meal, in a clean establishment, served quickly and efficiently, these customers, many of whom will be visitors to the Rock and Roll Hall of Fame, will tell their friends about the pleasant experience they had at the Whistle Stop. The potential for nationwide exposure is tremendous.
|Purchase price of building and property||$ 100,000|
|Price of existing equipment||10,000|
|Existing perishable food supplies (purchased after closing||500|
|First month's improvements:|
|paint, lot repair, road sign, menu||2,000|
|20% down payment for mortgage||20,000|
|25% down payment for equipment||2,500|
|Investment from father||30,000|
|Total to be financed:|
The business will be a subchapter S corporation. This allows the Whistle Stop to be taxed like a partnership or sole proprietorship, with profit taxed at the individual rate rather than the corporate rate. The benefit of an S corporation is that it protects investors, as only the corporation, not the individuals are held liable for the corporation's debts.
I will run the corporation with my father, who will hold the title of Officer. Besides being the company's main investor, he will assist in supervising the restaurant. He is recently retired and has over thirty years of supervisory and sales experience.
|Annual Projected Sales||200,000||Jul-88||Aug-88||Sep-88||Oct-88||Nov-88|
|Salaries & Benefits||28.00%||7,000||7,000||7,000||3,733||3,733|
|Income Before Taxes||1,625||1,625||1,625||867||867|
|Provision for Taxes||0.0||0.0||0.0||0.0||0.0|
|Cash Balance 1st of Month||5,000||14,800||14,925||15,050||9,902|
|30 - 60 Day A/R||0.0||0.0||0.0||0.0||0.0|
|Over 60 Day A/R||0.0||0.0||0.0||0.0||0.0|
|Total Cash Available||30,000||39,800||39,925||28,383||23,235|
|30 Day Terms||90.00%||9,675||9,675||9,675||5,160|
|60 Day Terms||0.0||0.0||0.0||0.0||0.0|
|General & Salary||11,875||11,875||11,875||6,333||6,333|
|Taxes & Other||750||750||750||400||400|
|Total Cash Needed||15,200||24,875||24,875||18,482||13,967|
|Net Cash Flow||14,800||14,925||15,050||9,902||9,268|
|SALES & PROFIT|
|Take out Sales||15,563.55||Licenses and Fees||97.00|
|Food (In House)||10,989,5.73||Purchases||55,102.00|
|Non-taxable Sales||5,045.22||REP & IMP||831.88|
|Total sales||146,754.20||Single Bus Tax (approx.)||200.00|
|Snow & Trash Removal (approx.)||700.00|
|Workers Comp.||1,322.31||Federal Unemployment||487.49|