Business Plan for Wok Box
Food court
Lower Place Riel
University of Saskatchewan
Prepared by
Yuanyuan Chai & Youchuan He
12/5/2011
Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
Table of Content
Executives Summary ................................................................................................... 3
1.0 Introduction ............................................................................................................ 4
2.0 Operation Plan ....................................................................................................... 5
2.1 Site Plan................................................................................................................ 5
2.2 Floor Plan ............................................................................................................. 6
2.3 Operation Hours ................................................................................................... 6
2.4 Daily Operation Flow ........................................................................................... 7
2.5 Quality Control and Supply Analysis ................................................................... 8
3.0 Human Resources Plan.......................................................................................... 9
3.1 Organizational Structure ...................................................................................... 9
3.2 Role and Responsibilities ..................................................................................... 9
3.3 Employee Shift/Schedules.................................................................................. 10
3.4 Wages and Benefits ............................................................................................ 11
3.5 Training .............................................................................................................. 11
4.0 Marketing Plan..................................................................................................... 12
4.1 Competition ........................................................................................................ 12
4.11 Direct Competition ........................................................................................ 12
4.12 Indirect Competition ..................................................................................... 12
4.2 Customer Source ................................................................................................ 13
4.3 Products and Services Features .......................................................................... 13
4.4 Pricing Strategy ................................................................................................ 14
4.5 Promotion Strategy ........................................................................................... 14
4.6 Marketing Budget ............................................................................................. 14
5.0 Financial Plan ....................................................................................................... 15
5.1 Capital Budget .................................................................................................... 15
5.2 Financial Structure ............................................................................................. 15
5.3 Revenue Analysis ............................................................................................... 16
5.4 Operating Expenses ............................................................................................ 16
5.5 Net Income and Profitability .............................................................................. 17
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
5.6 Sensitivity Analysis ............................................................................................ 18
5.7 Debt Amortization and Dividend Policy ............................................................ 18
5.8 Break-even Analysis .......................................................................................... 18
5.9 Ratio Analysis .................................................................................................... 19
5.10 Income Tax ....................................................................................................... 19
6.0 Conclusion ............................................................................................................ 20
7.0 Appendixes............................................................................................................ 21
7.1 Regular Menu ..................................................................................................... 21
7.2 Catering Menu .................................................................................................... 22
7.3 Sample Special Features..................................................................................... 23
7.4 Nutrition Fact ..................................................................................................... 24
Figure 2.1 Site Plan .................................................................................................... 5
Figure 2.1 Floor Plan .................................................................................................. 6
Figure 2.4 Daily Operations ..................................................................................... 7
Figure 3.1 Organizational Chart ................................................................................. 9
Table 3.3a Working Hours ....................................................................................... 10
Table 3.3b Working Shift/Schedule ......................................................................... 10
Table 4.12 List of Indirect Competitors ................................................................... 13
Table 5.1 Capital Budget .......................................................................................... 15
Table 5.2 Capital Structure....................................................................................... 15
Table 5.3 Total Annual Revenue .............................................................................. 16
Table 5.4 Operating Expenses .................................................................................. 17
Table 5.5 Net Income ............................................................................................... 17
Table 5.6a Changing in Net income ......................................................................... 18
Table 5.6b Changing in NPV and IRR ..................................................................... 18
Chart 5.8 Break-even Analysis ................................................................................. 19
Table 5.9 Ratio Analysis .......................................................................................... 19
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
Executive Summary
Yuanyuan Chai and Youchuan He are proposing a business project of franchising a
Wok Box restaurant in the Lower Place Riel Food Court, University of Saskatchewan.
This completed business plan is composed of operation plan, human resources plan,
marketing plan, and financial/accounting plan. Each plan thoroughly addresses its
related issues about this business.
Considering the nature of the business and store’s location, the Wok Box’s operation
process will be the most significant part to succeed. Specifically, how to provide our
customers quality and healthy foods within the shortest possible time will be pivotal
to survive and succeed. In terms of operation, two parts, quality and healthy foods and
quick services, should be the first priorities. As a player in quick service restaurant
industry, the Wok Box is the first company to join the Health Check Program through
Heart and Stroke Foundation. This membership indicates the Wok Box’s commitment
to caring about healthy foods provided to our customers. On the other hand, we value
customers’ satisfaction so that we will pay our best efforts to save customers’ time by
increasing overall efficiency and maximizing business utilization.
Financially, the initial capital investment, $96,381, to start up this profitable business
will not be high. The Franchise fee, opening inventory, and kitchen equipments will
be three major components of initial capital budget. Thirty three percent of capital
requirement will be borrowed from a local financial institution. The rest of it will be
equity from investors, which will be Yuanyuan Chai and Youchuan He. Each investor
will hold 50 percent share of the business. In terms of profitability, the university
Wok Box will generate 106 percent internal rate of return which is significantly larger
than the 20 percent of required rate of return. That means the invested capital will be
paid back in only one year. Furthermore, the Wok Box will start distributing
dividends from the second year. And the amount of dividends will be increasing year
by year.
The market should not be an issue to worry about because the location already
provides a large customer base-more than 20,000 university students, over 7,000
faculty and visitors, and eight months of regular school terms. The only issue to focus
will be continuously offering customers quality foods and premium and fast services.
As mentioned above and details followed below, the university Wok Box is believed
to be a successful project.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
1.0 Introduction
The following business plan is for a Wok Box restaurant locating in the food court at
the University of Saskatchewan Lower Place Riel. It will be formed as franchise
based corporation by investors Yuanyuan Chai and Youchuan He.
By observing Umi Shi, one of direct competitors, the average daily customers are
over 200. An easy captured market is already provided to Wok Box. Investors believe
that the strengths of Wok Box, which are taste, healthiness, variety, freshness,
quickness, and cheapness, will satisfy all consumers’ needs. Based on the financial
analysis, it turns out that Wok Box is feasible and positive to run. Some key financial
factors are as follows:
 Total capital budget is $96,381
 Average number of customer will be 175 per day in 2012, break-even point
will be 125 customer per day
 Total revenue will be $465,500 in 2012
 Net income in 2012 will be $56,941
 Gross profit margin will be maintained at 70%, and will be consistent every
year
 Net present value is $232,813, internal rate of return is 106%
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
2.0 Operation Plan
2.1 Site Plan
Wok Box will be located in the food court at the University of Saskatchewan Lower
Place Riel. The food court is in the center of the university areas, surrounding by
different colleges and offices, and under the Murray Library. It is easy for students
and faculties to access from different directions. It also connects the university bus
terminal so that gives convenience to outsiders and visitors.
The total ground area of the Wok Box will be 600 square feet. The figure 2.2 will
show the detailed location in the food court.
Figure 2.1 Site Plan
This area provides a casual, relax and comfortable environment where students can
get food easily and spend meal time together. It is thoughtful and exciting to open a
Wok Box restaurant here to provide students and university faculty different types
food. Food court is steadily offering a sufficient supply of customer. It could be
considered as a kind of guaranteed source of customers to the Wok Box.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
2.2 Floor Plan
The floor plan, see Figure 2.2, leads kitchen to a fully functional work station. The
layout includes ordering and picking-up spaces; beverages and side dishes display
areas, kitchen; and back storage room.
Figure 2.2 Floor Plan
This floor design can maximize working efficiency and allow employees flowing
effectively. The empty space between the cooking stage and the front counter would
minimize the working distance, and the backroom delivers enough space for preparing
ingredients and stocking.
2.3 Operation Hours
Since Wok Box will be opened in the university, the operating time basically will
follow the university schedule. The regular operating time will be from 9:30 am to
7:30 pm through Mondays to Thursdays, 9:30 am to 5:30 on Fridays, and 10 am to 3
pm on Saturdays. However, we will have a probation period for Saturday’s opening.
Once the Saturdays’ sales cannot meet our demands, we will consider rescheduling
operating hours on Saturdays.
Above predetermined operating hours will be only applied to the regular semesters
which are from September to April. Differing to regular terms, Wok Box will
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
decrease operating hours, and the schedule will be varied depending on actual demand.
As currently set schedule, the totalled opening days of the Wok Box will be 266
throughout one year.
2.4 Daily Operation Flow
Figure 2.4 Daily Operations
Close the store
•Opening of the
store
•Fresh goods
on display
Receive orders
•Preparing &
cooking
•Cashier &
serving
•Cleaning
•Bookkeeping
for the day by
manager or
supervisor
Finish the day
Manger will open the store along with another full-time worker. The worker will start
to prepare all ingredients that needed for the day such as washing and cutting
vegetables, precooking meat, displaying beverages and side orders. Manager will also
help employee prepare and make sure the store will be ready to receive orders at 10
am from Mondays to Fridays (11 am on Saturdays). Part-times will arrive at the store
based on their preset schedules.
During the day, store will be basically running as receiving orders, cooking, and
keeping floor clean. During the peak time, four people will be working together, two
people will cook dishes, and one will be cashier, and the other one will package
cooked meals and pass them to customers. While, preparing ingredients will be major
task during the slack hours. Therefore, fewer workers will be needed (probably two).
The store will stop receiving orders 15 minutes prior to the store closing time. During
the non-order time, workers will clean the whole store, organize all kitchen ware and
food ingredients, and turn off the cooking devices; while managers will record the
transactions for the day and check the amount of inventory. If the amount of inventory
falls below the safety level, manager should prepare the ordering list and make the
order next morning.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
2.5 Quality Control and Supply Analysis
Since Wok Box is a franchised restaurant, everything regarding quality control has to
comply with franchiser's standard book, which including cooking procedure and
methods, products and supplier selection, packaging, store decoration, signage etc.
We currently decide to place an order twice a week for groceries in order to keep
foods fresh because we promise to offer fresh and high quality food to our customers.
Other supplies such as beverages and packages will be ordered from contracted
suppliers due to actual usage.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
3.0 Human Resources Plan
3.1 Organizational Structure
The Wok Box university store will be a corporation base on franchised structure.
Capital budget and future fund will be provided by shareholders in equal amount.
Each of two shareholders will begin to hold 50 percent of common shares.
Shareholders’ agreements and business decisions will be made jointly by two
shareholders. Both shareholders will have the equal rights in voting. In addition,
shareholders are responsible for future financial injection to the Wok Box, if it is
necessary.
Figure 3.1: Organizational Chart
3.2 Roles and Responsibilities
As the organizational chart shows, the Wok Box will have one manager and one
supervisor. These two positions will be held by two shareholders. As being the store
management, they have responsibility in store maintaining, supervising, and operating.
The specific roles are list as below:
1) Financially manage and monitor store
2) Control supply and product/service quality
3) Recruit, train and oversee staff and schedule employees’ working hours
4) Monitor and direct daily operations
Besides management, one full-time worker and three part-time workers will be
needed. Qualified workers are required to undertake following responsibilities:
1) Maintain a clean and organized kitchen
2) Wash, cut and prepare the raw materials
3) Receive orders and serve customers
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
4) Cook dishes
3.3 Employee Shifts/Schedules
Since Wok Box is located in the university food court, number of staff will be varied
from peak hours to slow hours. Based on estimation, four people will be needed
during peak hours, including manager or supervisor, one full-time worker and two
part-time workers; on the other hand, manager or supervisor will stay in with an either
full-time worker or part-time worker during slack hours. The number of staff will also
fluctuate according to school season: in two full terms, from September to April, the
Wok Box will need more employees than Spring/Summer terms (May - August) due
to the much decreased demand in Spring/Summer terms. Total working hours for
different employees are demonstrated in table 3.3
Table 3.3a Working Hours
Hr/day
Manager
Supervisor Full-time Part-times
(Supervisor) (Manager)
(2 people)
Monday
5
10
8
4
Tuesday
10
6
8
4
Wednesday
5
10
8
4
Thursday
10
6
8
4
Friday
5
8
8
4
Saturday
5
4
40
40
40
20
Total
Basically, management level personnel will be around the store in most time. And two
working schedules for manager and supervisor will shift every another week. Full
time worker will be working 40 hours straightly per week. In terms of part-time
workers, they will be schedule to work during busy hours.
Table 3.3b Working Shift/Schedule
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Manager
(Supervisor)
10:30am – 4:30pm
9:30am – 7:30pm
10:30am – 3:30pm
9:30am – 7:30pm
10:30am – 3:30pm
10:00am – 3:00pm
Supervisor
(Manager)
9:30am – 7:30pm
10:30am – 4:30pm
9:30am – 7:30pm
10:30am – 4:30pm
9:30am – 5:30pm
Full-time
9:30am – 6:00pm
9:30am – 6:00pm
9:30am – 6:00pm
9:30am – 6:00pm
9:30am – 6:00pm
Any changes could be applied based on the actual situation.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
3.4 Wages and Benefits
Wok box will offer different level of wages to different job positions:



$40,000/year for managers
$13/hour for full-time workers
$10/hour for part-time workers
We also offer benefits to our staff. Each employee can get continental meals, discount
card and internal coupons. Moreover, Wok Box will also provide employees
insurance, pension funds, and paid vacation, as well as an employee-friendly working
environment.
3.5 Training
Wok Box focuses on providing superior quick customer services and high quality
foods. Therefore, we will help employees equip with necessary cooking skills,
customer service skills, and supply and inventory management skills. The customer
service skills will be the major part of training which includes polite greetings,
communications with appropriate eye contact and smiling, etc. Since Wok Box is a
restaurant, safety issue will also be incorporated as an important part in training
program.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
4.0 Marketing Plan
By November, 2011, two Wok Box restaurants are already opened in Saskatoon
locating in Stonebridge area and Confederation Mall. By interviewing one of the Wok
Box owners, we found Wok Box is becoming popular in quick service food industry.
University of Saskatchewan has around 20,000 students, including international
students from all over the world, and most of them are from Asia. With a lack of
Asian taste in university food court, Wok Box should be a new choice for both
international students as well as Canadian students.
4.1Competition
A number of restaurants either on campus or around the university are providing food
services. However, most of them provide North American food without
differentiation.
4.11 Direct competitors
In terms of the Wok Box’s location, it is facing seven direct competitors. They are:







Umi Sushi, Japanese food, Sushi rolls and bento boxes
Extreme Pita, North American food, pitas
Harvey’s, North American food, Burgers
Treats, dessert house, coffee
Le Crêpe Bistro, world food, crepes
Mac’s, snacks, beverages, packaged foods
The Cove, pizza, snacks, beverages
By considering the food type and the location, Umi Sushi will be the most important
direct competitor to Wok Box because it is solely offering Asian taste foods.
4.12 Indirect competition
With many other available cafes in each college on campus, they are viewed as
competitors as well, but indirectly. Besides, there is also a list of other off-campus
places offering food choices. In addition, lots of students bring foods from homes. All
of these foods providers are Wok Box’s indirect competitors.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
Table 4.12 List of Indirect Competitors
On Campus
Marquis Hall Cafe
Arts Cafe
St Thomas Cafe
PAC Cafe
Louis’ Browse
Off Campus
Dairy Queen
Subway
Alexander’s restaurant
.
4.2 Customer Source
Statistics from university website shows that over 20,000 students are enrolled and
over 7,000 faculties are working in the university. Moreover, this number is
increasing due to increasing population, booming economy, and immigration trend in
Saskatchewan.
The new Wok Box’s location has already captured market due to university student
traffic on campus. When students pass through Lower Place Riel to get their
classrooms, they can naturally and easily see Wok Box. Therefore, the location
provides the Wok Box a stable source of customers.
By observing Umi Sushi in the food court, it serves about 60 to 80 customers per hour
during peak hour (from 11:30am to 2:00pm), and 10 to 25 customers per hour during
the slow time. This information helps us estimate the number of customers per day
and calculate the projected annual revenue, which will be discussed in financial
section.
4.3 Product and Service Features
The main type food from Wok box will be Asian flavor pan fried noodles or rice
dishes, combined with other side dishes. Wok Box will promise to provide
excellent-tasted and healthy meals with quick cooking time (only a few minutes). The
unique menu (attached on the appendix) consists of items that are prepared daily
using innovative and proprietary recipes with high quality and fresh ingredients. In
addition, the sauces used by Wok Box are proprietary, which means the products are
not replicated.
Nowadays, people are becoming more and more health conscious. In order to meet
consumers’ needs, Wok Box is the first quick service restaurant registered and
participated in the Health Check Program through Heart & Stroke Foundation. This
action shows that Wok Box assure giving the freshest and the most delicious foods as
well as nutritious choices to every customer.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
4.4 Pricing Strategy
The pricing strategy will be remaining the same as all other Wok Box restaurants
across Canada. The specific prices will be shown on the attached menu. However,
negotiation will be pursued in order to get more discounts for students and lunch
specials. We will assure offering reasonably priced premium products and services to
our customers.
4.5 Promotion Strategy
Wok Box will set up an “opening soon” sign before the grand opening to give out the
first notice. On the upper Place Riel, a sign with Wok Box logo will give people
another notification as well.
Besides, on the grand opening day, we will launch an event to boost a marketing
affection and get people try our products. In other regular days, some promotion
means, such as offering meal plan cards and distributing coupons, will be conducted
as well.
4.6 Marketing Budget
Our first year budget for local advertising will be $5,000 (coupon and meal cards
printing expenses, etc). Once we get enough brand awareness and customer loyalty,
marketing budget will be decreasing. Furthermore, we will also be paying the 3% of
gross profit as the marketing fee to our franchisor. This amount of fee will be paid
monthly and recorded as operating expenses.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
5.0 Financial Plan
5.1 Capital Budget
The total cost of this project will be $96,381, including franchise fee, equipment and
leasehold improvements, and opening inventory. Table 5.1 shows the specific
proportion.
Table 5.1 Capital Budget
Capital Budget
Equipment
Opening Inventory
Franchise Fee
Leasehold Improvements
Total
16,381
5,000
25,000
50,000
$96,381
Equipment will be mostly composed of kitchen wares, including ovens, microwave,
fridge and freezers, and other tools. In order to keep low budget, we will purchase
most equipment on second hand condition. For leasehold improvement cost, along
with inquiring an Asian restaurant owner, we decide to put $50,000 as the expenditure
including store decoration and signage.
5.2 Financial Structure
67 percent of initial capital will be equity and 33 percent, as business loan, will be
from a bank. Since we do not have enough collateral to be approved from bank, we
will take co-sign. The equity will come from two owners equally (Youchuan He and
Yuanyuan Chai). Table 5.2 shows details of capital structure.
Table 5.2 Capital Structure
Financing
Debt
Equity
Total
33%
2012
31,806
64,576
$96,381
There are two reasons to take debt from bank.
 First, certain amount of debt could largely leverage our projected internal rate
of return (IRR). Meanwhile, we will not be under intense pressure of paying
back interests. In a word, we will benefit from leverage IRR while maintaining
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He

the probability of insolvency at a low level.
Second, large capital involvement from owners guaranteed owners’
commitments. And equal investment will assure equal commitment from each
investor.
5.3 Revenue Analysis
Based on an observation on the direct competitor (Umi Sushi), we estimate 175
customers will be served per day in first year. Due to people’s curiosity and nature of
food industry, there will be more customers coming in the opening year. However,
customer number will decrease gradually and eventually remain at the level of 165
customers a day in each year.
By deducting all breaks and holidays, Wok Box will operate 266 days a year. And
based on the menu price, the average purchase per customer will be approximately
$10. However, the average purchase will be increasing under the effect of 2.5%
inflation rate. The total annual revenue in each year is listed in table 5.3.
Table 5.3 Total Annual Revenue
Revenue
# of customer
per day
# of days per
year
Ave. purchase
per customer
Total Revenue
2012
175
2013
170
2014
165
2015
165
2016
165
266
266
266
266
266
$10
$10.25
$10.51
$10.77
$11.04
$465,500 $463,505
$461,119
$472,647 $484,463
5.4 Operation Expenses
Three major contributors in operation expenses will be rent, wages, and other variable
costs. A list of expenses will be list under.



Rent: $30/sqf (totally $18,000) with 10% of gross profit
Wages:
1. two managers with $40,000 per year each,
2. one full-time worker with $13 per hour
3. two part-time workers with $10 per hour
Other variable costs:
1. Loyalty fee to franchisor at 6 percent of gross profit
2. Marketing fee to franchiser at 3percent of gross profit
3. Miscellaneous expenses at 2 percent of gross profit
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
Table 5.4 Operating Expenses
Operating
Expenses
Utilities &
Rent
Wages
Employee
Benefit
Repair &
Maintenance
Variable
Costs
CCA
Interests
Total
15.21%
11%
2012
2013
2014
2015
2016
70,550
70,351
70,112
71,265
72,446
111,880
17,017
114,677
17,442
117,544
17,878
120,483
18,325
123,495
18,784
1,000
1,025
1,051
1,077
1,104
51,205
50,986
50,723
51,991
53,291
6,638
2,111
260,401
11,949
1,958
268,387
9,559
1,795
268,662
7,647
1,620
272,408
6,118
1,433
276,669
5.5 Net Income and Profitability
By subtracting all costs, we get our net income figures present in Table 5.5. In specific
2012, a large increasing amount in CCA expense causes decrease in net income in that
year.
Table 5.5 Net Income
Taxable
Income
Taxes
Net Income
2012
65,449
2013
56,066
2014
54,122
2015
58,446
2016
62,455
8,508
7,289
7,036
7,598
8,119
56,941
48,778
47,086
50,848
54,336
Wok Box provides investors a significant potential profit. Based on 20% required rate
of return, Wok Box presents a projected net profit value (NPV) at $232,813. Besides
this, project’s IRR will be over 100%. Namely, Wok Box will pay back all initial
investments in one year.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
5.6 Sensitivity Analysis
Due to the nature of business, Wok Box is extremely sensitive to sales volumes. Sales
for Wok Box are jointly determined by three variables – number of customer per day,
number of opening day per year, and average purchase per customer. Any changes in
any variable will result in a significant change in revenues.
We decide to change the most important factor, which is the numbers of customer per
day, to analyze the sensitivity in details. We adopt 10% change in customer numbers
to observe the corresponding change in net income. The figure 5.6a shows the
influence on net incomes by percentages and figure 5.6b indicates differences in NPV
and IRR.
Figure 5.6a Changing in Net Incomes
% change of NI
(Decreased)
% change of NI
(Increased)
2012
-34%
2013
-41%
2014
-40%
2015
-38%
2016
-37%
36%
41%
43%
41%
39%
Figure 5.6b Changing in NPV and IRR
Base
Decreased
Increased
NPV
228,481
133,777
284,317
IRR
106%
78.10%
142.40%
5.7 Debt Amortization and Dividend Policy
Debt amount, $30,156, generates interest amount of $8,917 at 7% interest rate. And
the interest and principle will be paid off during next five years. In order to provide a
certain level of safety in operations, we settle to keep $50,000 cash on hand each year.
The surplus will be paid out as dividend to each shareholder starting in the second
year.
5.8 Break-even Analysis
As chart 5.8 presenting, the break-even point is around 125 customers per day per
year. Referring to the base case, which is at 170 customers, the gap will allow
absorbing negative effect such as decreasing in number of customers.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
Chart 5.8 Break-even Analysis
180
170
160
150
140
130
120
110
100
1
2
3
4
5
6
Base Case
175
170
165
165
165
Breakeven
125
128
126
124
122
5.9 Ratio Analysis
The following table demonstrates ratios from different financial indicators.
Table 5.9 Ratio Analysis
Ratios
Gross Profit
Margin
Net Profit
Margin
ROA
ROE
D/E Ratio
Current
Ratio
2012
70%
2013
70%
2014
70%
2015
70%
2016
70%
12%
11%
10%
11%
11%
37%
48%
30%
1.95
27%
33%
22%
3.34
28%
34%
22%
3.47
31%
38%
21%
3.85
34%
41%
19%
4.33
5.10 Income Tax
Since Wok Box is an incorporated entity, the income tax will be charged
straightforwardly at 11% by federal government, plus 2% by provincial government.
In total, Wok Box will pay 13% in tax rate, and it may be varied by government
policy.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
6.0 Conclusion
As completely discussed through operation, human resources, marketing, and
financial area, the university Wok Box is a feasible business project in terms of
pursuing large profit.
First, the Lower Place Riel furnishes the Wok Box a stable and predictable customer
source. Locating there, the risk of customer fluctuation could be minimized. Second,
the required initial capital investment will not be high. And the business loan is easily
accessible in Saskatoon. Due to the high internal rate of return, the capital investment
will be paid back in only one year. Last, as a franchising business, the franchisor will
be supportive for university store, including provides operation instruction and
guidance, management expertise, training support, supplier selection, etc. Moreover,
franchisor is also responsible for branding and overall marketing.
Therefore, the university wok Box would be a worthwhile project that could provide
investors streams of cash in return.
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
7.0 Appendixes
7.1 Regular Menu
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
7.2 Catering Menu
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
7.3 Sample Special Features
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
7.4 Nutrition Fact
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
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Wok Box University Business Plan, Yuanyuan Chai and Youchuan He
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