Restaurant



BUSINESS PLAN

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.


BUSINESS GOALS

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.

MARKETING GOALS

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.

START UP COST

Restaurant: The Whistle Stop

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:
Mortgage $ 80,000
Equipment $ 2,500

OWNERSHIP

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.

Restaurant: The Whistle Stop

PROJECTIONS
Annual Projected Sales 200,000 Jul-88 Aug-88 Sep-88 Oct-88 Nov-88
Index 1.5 1.5 1.5 0.8 0.8
Net Sales 25,000 25,000 25,000 13,333 13,333
COGS 43.00% 10,750 10,750 10,750 5,733 5,733
Gross Margin 14,250 14,250 14,250 7,600 7,600
General Expense 19.50% 4,875 4,875 4,875 2,600 2,600
Salaries & Benefits 28.00% 7,000 7,000 7,000 3,733 3,733
Payroll Taxes 3.00% 750 750 750 400 400
Total Expense 12,625 12,625 12,625 6,733 6,733
Income Before Taxes 1,625 1,625 1,625 867 867
Provision for Taxes 0.0 0.0 0.0 0.0 0.0
Net Income 1.625 1.625 1.625 867 867
Cash Balance 1st of Month 5,000 14,800 14,925 15,050 9,902
Cash Sales 100.00% 25,000 25,000 25,000 13,333 13,333
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
Inventory Purchases
Cash Purchases 10.00% 1,075 1,075 1,075 573 573
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
Installment Payments 1,500 1,500 1,500 1,500 1,500
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

Restaurant: The Whistle Stop

SALES & PROFIT
Take out Sales 15,563.55 Licenses and Fees 97.00
Cones 16,249.70 Postage 7,920
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
City Taxes 2,179.96 Supplies 2,314.69
FICA Exp. 4,356.91 Telephone 828.75
Workers Comp. 1,322.31 Federal Unemployment 487.49

Restaurant: The Whistle Stop

Dec-88 Jan-89 Feb-89 Mar-89 Apr-89 May-89 Jun-89 Total
0.8 0.8 0.4 0.9 1 1
13,333 13,333 6,667 15,000 16,667 16,667 16,667 200,000
5,733 5,733 2,867 6,450 7,167 7,167 7,167 86,000
7,600 7,600 3,800 3,800 8,550 9,500 9,500 114,000
2,600 2,600 1,300 2,925 3,250 3,250 3,250 39,000
3,733 3,733 1,867 4,200 4,667 4,667 4,667 56,000
400 400 200 450 500 500 500 6,000
6,733 6,733 3,367 7,575 8,417 8,417 8,417 101,000
867 867 433 975 1,083 1,083 1,083 13,000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
867 867 433 975 1,083 1,083 1,083 13,000
9,268 8,635 8,002 4,335 7,055 7,283 6,867
13,333 13,333 6,667 15,000 16,667 16,667 16,667
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
22,602 21,968 14,668 19,355 23,722 23,950 23,533
573 573 287 645 717 717 717
5,160 5,160 5,160 2,580 5,805 6,450 6,450
0.0 0.0 0.0 0.0 0.0
6,333 6,333 3,167 7,125 7,917 7,917 7,917
400 400 200 450 500 500 500
1,500 1,500 1,500 1,500 1,500 1,500 1,500
13,967 13,967 10,313 12,300 16,438 17,083 17,083
8,635 8,002 4,355 7,055 7,283 6,867 6,450

Restaurant: The Whistle Stop

State Unemployment 85,310
Utilities 1,174,085
Wages 6,093,580
Total Expenses 14,202,994
Working Profit 472,426
−250,000
Total Profit 222,426
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