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Executive Summary

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Executive Summary
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   | 1 Executive Summary   Liu Sana’a, YemenFinal Project of comm105Dr. Abdurrahman AlahdalSubway Business PlanMade by: Tawq Abdullah _ ID: 61210044   | 2 The purpose of this business plan is to secure additional, long-term funding to open a QSR (Quick Service Retail) franchise in Sana’a, Yemen. The owners of the company are willing to invest $30,000, and assume over $110,000 in short-term liability to secure the funding for inventory, and early operations. The required long-term loan that we seek is in the amount of $200,000, and if approved, will be amortized to 10 years.The franchiser, "The Subway Shop Inc. ," is one of the fastest growing franchises in North America. Sales last year topped $800,000,000. The chain is positioned somewhere  between traditional fast food restaurants, and sit-down restaurants. This segment of the market is attuned to the health benefits of their eating habits, are more conscious of their  buying habits than the general population, and more importantly, they have higher incomes and are willing to pay more for a better fast food choice. Our goal is to be that choice in Sana’a, Yemen.To succeed with our goal, and to encourage a healthy lifestyle, we will sponsor local sporting events, and give 3% of profits to local charities. We will build roots into our community. We will also market our products with local businesses in Yemen, the famous Festivals, weekends, national holiday days, seasonal events, to local hotels, and offer catering services through local party supply stores and through close ties to local hotel managers and executives. Our primary goal for this plan is that it help us secure this $200,000 as long-term loan to finance our business project that we are aiming for. Once we have done that, our goal will beto build value for ourselves, our employees, our customers, and the whole community here in Yemen. We see these goals as being consistent with the goals the SBA expects of itself and its guarantors.   | 3   1. Objectives Our first objective is to open the Franchise restaurant 6 months from the day that our site is confirmed by the realtor. Our site was confirmed in April, therefore our goal is to be up and running by August. Our P&L and Balance Sheet all begin in August. Start-up costs betweenApril and August may be found in the Start-up Summary Section. Overall view :- • The Subway Shop will turn a profit by the beginning of our second fiscal year of operations. • We will pay down our $200,000 SBA loan to $180,000 by the end of year one. • Repeat customers will constitute 70% of our overall business by the end of year one. We will track customer habits and loyalty through a local marketing research firm, and publish the results of these findings to our employees once a quarter. •  Net Profit for year one will be 21%. 1. Mission   | 4 Our mission is to bring to market the tastiest and healthiest fast food in Sana’a, at a slight cost premium over other fast food restaurants. Our high standards of quality and cleanliness will establish our reputation as the cleanest fast food restaurant in Sana’a. Our community is as important to us as making a profit. We will devote 2% of profits to a local poor people shelter, and 1% to a local environmental conservation fund. This company is founded on the concept that good works and good deeds not only serve the needs of the community, but will also keep our company healthy and committed to the success of its customers. 1. Keys to Success The most important key to success is our location. It is very important that our location live up to our expectations, and is convenient to as many potential customers as possible. As stipulated by the franchise agreement, our location must contain a minimum of 50 customersto be quickly served as soon as they have ordered for the required meal . Another key to success lies with our ability to execute our plan. If we neglect one or more aspects of our plan, whether that is our numbers, our employees, our cleaning and food standards, or our commitment to customers, we will not succeed and thrive. Company Summary "The Sub Shop" Corporation franchises, and sometimes owns and operates quick-service Italian-style sub sandwich shops called, appropriately, "The Sub Shop" subs.The Sub Shop's upscale concept fits a niche between fast food and fine dining--offering the customer the best benefits of both segments. The company provides the convenience of fast food with rapid response times, affordability, as well as carry-out and home meal replacement options. The Sub Shop also offers a fresher and tastier alternative to typical fried fast food products such as hamburgers and French fries.   | 5 The Sub Shop's concept was born in the kitchen of a popular Italian sit-down restaurant called Gianni's. The goal of the srcinal owner was to provide great Italian food in a clean, urban environment, and at a reasonable price. After two years as Gianni's, the owner changed the name to The Sub Shop and began selling subs and soup to go. In 1993, the company expanded to two stores and sales tripled. Financing was secured in December of 1993, and the company became a local Franchise, then a national Franchise. Now with 53 stores in 23 states in USA and four other countries, The Sub Shop has taken the Fast Food segment by storm by producing a better product than its competitors, and at a moderately low price. 1. Company Ownership  Ninety-seven percent of the restaurant belongs to Tawfiq Abdullah and Hammed Huthaily asequal ratios for both partners. The remaining 3% is held by Waleed Mothana, Store Manager. All of them formed the basic partnership for this investment “ owners of the restaurant in Sana’a, Yemen. 2. Start-up Summary The start-up table shows a summary of our overall start-up costs. The highest initial outlay is for the franchise fee. This is required to launch the franchise. After paying our Franchise fee, our only liability to the franchise will be the 7% cost of sales, and 2.2% advertising charge. Normally the franchise fee would be paid in interest accruing installments, but we decided to forego this to keep the books as clean as possible and to reduce the possibility of a "parent/child" conflict between our company and the constituents.Cash requirements for start-up are $19,700, and most of this will sit in a zero interest  bearing, highly liquid bank account. The first month our change in accounts payable will top $61,000, so we need this $19,700 in case sales are not what we expected.

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