Business Plan For July 3rd, 2009 Irene Chen Alan Koop Trisha Kramer Akemi Nakanishi Table of Contents 1.0 Executive Summary ................................................................................... 1
2.0 Introduction to The Noodle Box ................................................................ 3
3.0 Marketing Plan .......................................................................................... 4
3.1
The Marketing Mix ......................................................................................................... 4
3.2
Segmentation, Targeting and Positioning ....................................................................... 7
3.3
Competitive Analysis ...................................................................................................... 8
3.4
Marketing Strategy.......................................................................................................... 9
3.5
Marketing Expenses ........................................................................................................ 9
3.6
SWOT Analysis ............................................................................................................ 10
3.7
PESTE Analysis ............................................................................................................ 13
4.0 Operations Plan ...................................................................................... 15 4.1
Organizational Structure ............................................................................................... 15
4.2
Daily Operations ........................................................................................................... 16
4.3
Supply Analysis ............................................................................................................ 17
4.4
Service Providers .......................................................................................................... 18
4.5
Technical Processes and Procedures ............................................................................. 18
4.6
Total Quality Management ........................................................................................... 19
4.7
Environmental Limitations ........................................................................................... 19
4.8
Capital Budget .............................................................................................................. 20
4.9
Working Capital Planning and Management ................................................................ 21
4.10 Operating Expenses ...................................................................................................... 22
4.11 Cost of Goods Sold ....................................................................................................... 23
5.0 Human Resources Plan ............................................................................ 23 5.1
Labour ........................................................................................................................... 23
5.2
Staff and Management Costs ........................................................................................ 24
5.3
Human Resource Strategy............................................................................................. 25
6.0 Financial Plan .......................................................................................... 27 6.1
Overview ....................................................................................................................... 27
6.2
Economic Forecast ........................................................................................................ 27
6.3
Financing and Debt Amortization ................................................................................. 27
6.4
Investment and Risk Analysis....................................................................................... 28
7.0 References .............................................................................................. 29 Appendix A: Menu ............................................................................................ 30 Appendix B: Ingredients Listing ......................................................................... 32 Appendix C: Site Plan at 2311B 8th Street East ................................................... 33 Appendix D: Floor Plan ..................................................................................... 34 Appendix E: Sample Survey ............................................................................... 35 Appendix F: Detail of Job Responsibilities ......................................................... 36 Appendix G: Required Staffing Hours ................................................................ 38
1.0 Executive Summary The purpose of this business plan is to support our request for $275,000 of financing from your financial institution for the expenses involved with starting up a franchise “The Noodle Box” establishment in Saskatoon, Saskatchewan. The business will be located in leased space at 2311B 8th Street East, Saskatoon, Saskatchewan. We have already obtained $275,000 of funding via shareholder loans and are applying to secure a required additional $275,000 of debt financing. The Noodle Box offers customers a unique Asian‐fusion dining experience; this includes appetizers, stirfrys, curries, and soups inspired from countries such as Thailand, Malaysia, China and Japan. It is a funky, alternative fast‐food restaurant serving customers creative and unique dishes resulting in a “fresh, fun and fiery” experience. Our dishes are priced competitively due to the large serving portions. The competitive advantage lies within the ability to prepare such exotic and nutritious food for its customers within 5‐10 minutes. Noodle Box customers can choose to either take their food to‐go in a convenient Asia‐style take out box or eat‐in on the premises. The Noodle Box also offers lunch orders for business and government organizations, as well as catering for special events. Marketing Plan The Noodle Box operates on word‐of‐mouth, local advertising, and press reviews. This has proven successful in British Columbia and we expect that the same strategy will be effective in Saskatoon due to the close‐knit community atmosphere. We propose to promote our store and products via a series of local marketing efforts with an emphasis on promotional efforts in the first year of operations, after which we intend to rely mainly on word‐of‐mouth of our customers. We plan to locate our store in a leased space on the corner of 8th Street and Campbell Avenue. The Noodle Box will be located on one of Saskatoon's busiest commercial arteries, a few blocks from the interchange with the city's main highway and traffic through‐fare, Circle Drive. Our competition is the fast‐food Asian‐style cuisine establishments on and near 8th St. Saskatoon, Saskatchewan. Currently, there are two fast‐food chain restaurants present in Saskatoon serving Asian‐
style cuisine; Edo Japan and Manchu Wok. There are also various Asian‐style restaurants present in and Page 1 around 8th Street (for e.g. Spicy Garden Restaurant, Wok Asian Restaurant), however, due to the more formal nature of these restaurants they are not in direct competition with The Noodle Box. As there is currently no “The Noodle Box” franchise in Saskatoon, by opening the first franchise store in the city we are able to capture the first‐mover advantage in this segment. Currently there are few Asian‐style fast food dining establishments in Saskatoon and on 8th street, therefore we have the opportunity to begin our franchise in an unsaturated market. Operations Plan The Noodle Box will be structured as a corporation, and the head office based Board of Advisors will provide guidance to the Saskatoon franchise management. Daily operations include preparing and cooking customers’ orders; monitoring inventory levels; and overseeing financial and operational results. Food ingredients, supplies, and equipment will be sourced from franchise‐approved suppliers, whereas local firms will provide accounting, legal, and IT services. The Noodle Box will also be committed to quality through total quality management techniques. The capital budget will comprise of equipment, signage, leasehold improvements, and the franchise fee. Working capital management is not complex due to the nature of the business; for, example, the majority of sales are from eat‐in and take‐out customer (i.e. monies are collected immediately) and most of the inventory is perishable within a one‐week time frame (i.e. inventory turnover is approximately seven days). Human Resources Plan The Noodle Box values its employees as its primary asset. In order to attract cashiers and wok chefs we offer a positive, upbeat, vibrant atmosphere for all to work in. We respect all employees and encourage and invest in their professional development through training and seminars. We will hire a manager, assistant manager and supervisor to promote the Noodle Box Philosophy. Page 2 Financial Plan The Noodle Box franchise provides an exciting financial and investment opportunity in Saskatoon. Our expected scenario indicates an internal rate of return of 16%. This is due to the low competitive environment for healthy Asian fast‐food in Saskatoon and, in particular, on 8th Street. Approximately $550,000 in financing is required to open The Noodle Box on 8th Street. This is planned as 50% shareholder loans and 50% bank financing. Growth is expected to be quite strong through year 5 at which time growth will begin to taper off and approach capacity through year 8. An important qualitative factor to take into consideration is that the difficult task of building brand awareness and market acceptance with be taken care of by first location in Saskatoon. Once this local brand awareness is built, and the first location approaches capacity, there will be an opportunity to open additional locations to capitalize on this brand awareness. Given this strong financial outlook, and unique opportunity, we are excited to bring The Noodle Box to Saskatoon. 2.0 Introduction to The Noodle Box The Noodle Box is a South‐East Asian Noodle Bar that brings its customers the best of South‐East Asian street fare. This chain of noodle bars offers fresh and savoury, quickly‐prepared dishes customers can easily take to go, or eat‐in. This is a new franchise opportunity, as currently there are only three franchise stores operating in British Columbia. We feel that this franchise provides an exciting financial and investment opportunity in Saskatoon. We propose to open a franchise “The Noodle Box” on 8th street in Saskatoon in order to capitalize on the untapped niche market of fast food Asian‐style cuisine. Based on our market research performed an establishment which provides quick and healthy Asian‐style cuisine would be very well received. Our expected scenario indicates an internal rate of return of 16%. This is due to the low competitive environment for healthy Asian fast‐food in Saskatoon and, in particular, on 8th Street. Approximately $550,000 in financing is required to open The Noodle Box on 8th Street. This is planned as 50% shareholder loans and 50% bank financing. We invite you to grow with us as investment partners as we undergo this exciting franchise opportunity. Page 3 3.0 Marketing Plan 3.1
The Marketing Mix Products & Services Noodle Box is a South‐East Asian Noodle Bar that brings its customers the best of South‐East Asian street fare. This chain of noodle bars offers fresh and savoury, quickly‐prepared dishes customers can easily take to go, or eat‐in. Catering options are also available, described in greater detail under “Pricing” below. Food options available include appetizers, stirfys, soups and curry dishes. Each Noodle Box dish is prepared using whole foods, fresh herbs, spices, and sauces. At Noodle box there is an emphasis on high‐quality fresh food as well as on providing an exciting and unique dining experience. Customers are involved with the food preparation as they watch as wok‐chefs expertly toss orders together over dancing flames. A complementary self‐serve condiment stations is available to complement your order with chili oil, soy and fish sauce, chopsticks, napkins, and a filtered and purified water station. The Noodle Box is a funky, alternative restaurant serving customers creative and unique dishes consisting of stir‐fried noodles, with a variety of signature sauces and garnishes. Pricing The prices of menu options range from $6.50‐$8.50 for appetizers, and $9.00‐$14.00 for main dishes, depending on the variety and type (meat or vegetarian). Sides and extras are available for a nominal cost. The pricing between fast‐food and sit‐down restaurants and is priced competitively due to the large serving portions. Prices will be increased by 2% per year to adjust for inflation. Refer to a sample menu in Appendix A. The Noodle Box also offers catering for special events. Catering involves delivery and set‐up of a “hot noodle bar” where individuals can enjoy a buffet‐style spread of a variety of stirfrys, curry dishes complemented with roti bread. Besides food, each Hot Bar comes with the appropriate number of disposable plates, napkins and serving utensils. Pricing is set at $18.00/individual. Corporate lunch orders are available as well at set menu prices plus delivery charge. Page 4 Promotion The Noodle Box operates on word‐of‐mouth, local advertising, and press reviews. This has proven successful in the prior British Columbia marketplace. We propose to promote our store and products via a series of local marketing efforts with an emphasis on promotional efforts in the first year of operations, after which we intend to rely mainly on word‐of‐mouth of our customers. Promotional techniques will include the following: •
Local press reviews by food critics o
We will invite local food critics from the StarPhoenix to try our menu options. This has proven successful in the BC franchises with such reviews as that listed in The Georgia Straight, a well‐read local Vancouver newspaper: “Fresh, colourful, and full of flavour, this is the essence of West Coast pan‐Asian. Also demographically geared are the bevy choices ‐ pop, as much water as you want ‐ a no‐carb box for the Ron Zalko/yummy‐
mummy crowd, and a kid’s noodle box. Median dish price: $10, tax included, plus an additional buck if you want to share. If regular fast‐food places had any sense, they’d be looking at Noodle Box as the long skinny shape of things to come.” •
Printed advertisements in local newspapers and radio ads. o
Occasionally we will offer two‐for‐one coupons to entice new customers. o
Our grand opening will be advertised for 2 weeks prior to the opening. o
Ad will be run on the main radio stations in Saskatoon (including Magic 98.3, C95, CJWW and Hot 93) to make customers aware of the grand opening. •
Grand opening offering a free Noodle Box for first 100 customers. o
This will increase buzz around our establishment and begin the word‐of‐mouth advertising process. •
Facebook® group will be established to help with social networking as word‐of‐mouth is crucial to advertising. •
Noodle Box “Daily Special” o
Monday through Sunday we will feature a “Noodle Box of the Day” which will be discounted by $2.00. This will attract customers to our location on a consistent basis. •
The Noodle Box Recycling and Composting Campaign – In house promotion o
Since 2004, The Noodle Box franchise has been working with local recycling units in Vancouver as part of our extensive in house recycling program. The Noodle Box is highly Page 5 committed to respecting the environment and being considerate of our environmental footprint. Our in‐house recycling program will be strongly promoted and encouraged within the establishment. This dedication to the community and our environment will separate The Noodle Box from other fast‐food establishments, by demonstrating a cultural awareness. ƒ
Our Noodle Boxes, chopsticks and napkins can be broken down and turned into compost enriched soil mixes ƒ
All food waste, including vegetable trim is turned into compost ƒ
All cardboard, including waxed boxes, used paper, glass and tin cans are recycled or composted ƒ
We have switched our paper products such as paper towels and napkins to an unbleached 100% post consumer product •
Presence at “A Taste of Saskatchewan” annual event o
We plan to operate a kiosk at the “A Taste of Saskatchewan” annual event which takes place on July 14 ‐19. This will raise immediate awareness of our establishment. Note that under the franchisee agreement there is website maintenance and advertising as well as signage provided. Therefore the store will be liable to remit payment to the Franchise for these expenses as well as for any future franchise‐wide promotional efforts. Place We are committed to providing a “fresh, fun and fiery” experience for our customers as they enjoy excellent food served piping hot in a takeout box to enjoy either in‐house or to‐go. Our planned location is on 8th Street, one of the main commercial areas in Saskatoon, Saskatchewan. Based on our research, there is currently no fast‐food Asian fare on 8th Street within a 5 block radius. We plan locate our store in a leased space on the corner of 8th Street and Campbell Avenue. The exact address is: 2311B 8th Street East, Saskatoon, SK S7H 0V4 (Refer to Appendix C). The Noodle Box will be located on one of Saskatoon's busiest commercial arteries, a few blocks from the interchange with the city's main highway & traffic through‐fare, Circle Drive. The property is adjacent to a Winners, London Drugs and Staples chain store, offering excellent parking, high visibility and high thru‐
traffic. Page 6 3.2
Segmentation, Targeting and Positioning The Noodle Box has the option to either dine‐in or take out; therefore we will be appealing to: ƒ
Consumers who wish to grab a lunch to go during work hours ƒ
Consumers who want a casual and unique dining experience ƒ
Consumers who want to bring dinner home ƒ
Consumers who wish to cater a special event or corporate lunch We will be focusing on the segment of the market that frequents fast‐food establishments on 8th Street, Saskatoon. We will mainly be targeting consumers who live/work nearby our location. 8th street is a high traffic location, and therefore we also anticipate attracting drive‐by consumers. Our aim is to provide Saskatoon consumers with mid‐range income level an additional option for lunch and dinner fare. Please refer to “Marketing Strategy” for more details on our targeted consumer. Currently there are limited Asian‐style food options on 8th street, with even more limited Asian‐style casual/take‐out options. Therefore we are positioning our establishment to fill a niche market for fast‐food Asian‐style cuisine. We are differentiated from our competitors due to our focus on environmental responsibility, health‐conscious menu items and exciting dining atmosphere. Page 7 3.3
Competitive Analysis Our competition is the fast‐food Asian‐style cuisine establishments on and near 8th St. Saskatoon, Saskatchewan. Currently, there are two fast‐food chain restaurants present in Saskatoon serving Asian‐
style cuisine; Edo Japan and Manchu Wok. There are also various Asian‐style restaurants present in and around 8th Street (Spicy Garden, Wok Asian Restaurant), however, due to the less casual nature of these restaurants they are not in direct competition with The Noodle Box. As you can see in the table below, The Noodle Box is differentiated from the competition as they offer unique South‐east Asian cuisine, an exciting dining atmosphere due to the live preparation of your order by a wok chef, and an emphasis on recycling and health‐awareness. # of Saskatoon stores Locations The Noodle Box 1 Proposed location: 2311B 8th Street East Saskatoon, SK Food featured South‐east Asian cuisine. Catering availability Franchise Dining Style Yes Yes Exciting dining atmosphere with live‐
food preparation as you watch Emphasis on recycling and environmental awareness. Emphasis on healthy and “low‐carb” dishes. Unique features Edo Japan Manchu Wok 2 3310 8th St E Saskatoon, SK As well as food court in Midtown Plaza Japanese style cuisine including sushi, bento boxes and teriyaki bowls. 1 Midtown Plaza Saskatoon, SK S7K 1K1 No Yes Buffet‐style fast‐
food, pre‐made items. No Yes Buffet‐style fast‐
food, pre‐made items. None None Chinese‐style cuisine. Page 8 3.4
Marketing Strategy The leading chain casual Asian‐style dining options in Saskatoon are: ƒ
Edo Japan o
ƒ
One location present on 8th Street, Saskatoon Manchu Wok o
Does not currently have a location on 8th street, Saskatoon o
One location in Midtown Plaza food court The Asian food dining market in Saskatoon, Saskatchewan is relatively undeveloped with little competition when compared to other provinces in Canada. This allows for enormous growth potential in a market with few competitors. In order to determine our targeted consumer, we surveyed 500 Saskatoon community members (refer to survey in Appendix E). Based on our surveying and preliminary research, we determined that the majority of individuals surveyed have eaten Asian‐style cuisine, however the frequency is less than once a month. Of the individuals interested in trying Asian‐
style fast food, the general population was females aged 18‐49 with incomes under $60,000. The most common fast‐food establishment these individuals frequented was Quiznos/Subway which indicates they are looking for a healthier alternative in their fast food. Based on our marketing research, we are targeting the following consumers: ƒ
Mid‐range income females •
Families with children •
Health‐conscious individuals •
Business professionals Therefore, our positioning in close proximity to the “Winners” shopping center and “London Drugs” establishment is an area of high traffic for our targeted consumer, making our location ideal for success. As well, the location is ideally situated for individuals who work on and around 8th street who wish to order some take‐out during lunch. 3.5
Marketing Expenses We will advertise our grand opening in local newspapers and through radio placements, at an estimated cost of $8,000. Free noodle boxes for the first 100 customers will cost approximately $1000 in lost revenue. Ongoing advertising is estimated at $1,000 per month. In‐store discounts and coupons are Page 9 budgeted in the first year of operations only to create further awareness of our establishment in the community. We intend to rent a kiosk space at the “A Taste of Saskatchewan Event”. This will immediately increase the awareness of our establishment with potential consumers. Take‐away brochures are factored in at an estimated $2,500 per annum. Fixed fee franchise marketing expenses amount to $4,000 per annum and include website development and maintenance as well as signage. Estimated marketing expenses are summarized in the following table. Expenses have been adjusted for inflation at 2%. 2011 2012 2013 2014 Grand‐opening $8,000 N/A N/A N/A advertisements (newspaper and radio) Free noodle box for first $1,000 N/A N/A N/A 100 customers promotion Ongoing advertisements in $12,000 $12,240 $12,485 $12,734 local newspapers In‐store discount and $5,000 $5,100 $5,202 $5,306 coupons Kiosk rental at “A Taste of $6,000 $6,120 $6,242 $6,367 Saskatchewan Event” Marketing paid to $4,000 $4,080 $4,162 $4,245 franchisor (includes website costs, signage) Take‐away brochures $2,500 $2,550 $2,601 $2,653 Total $38,500 $30,090 $30,692 $31,306 Note that the expenses have been projected based on the following assumptions: ƒ The business will be up and running starting 2011. ƒ Inflation will continue at 2% a year. 3.6
2015 N/A N/A $12,989 $5,412 $6,495 $4,330 $2,706 $31,932 SWOT Analysis Strengths ƒ
Unique dining experience Customers are able to watch the Wok‐chefs freshly and quickly prepare their food over live flames which add to the excitement of the dining experience. The Noodle Box offers a unique fusion dining experience blending the flavours of Malaysian and Thailand cuisine. Page 10 ƒ
Environmentally responsible The Noodle Box vision is in line with the current trend in Saskatoon towards environmental awareness. Currently the city offers a voluntary paid bi‐weekly recycling pick‐up service which we anticipate will become city‐sponsored in the next five years. By incorporating a recycling‐conscious vision into The Noodle Box operations we are on the cutting‐edge of environmental responsibility in Saskatoon. ƒ
Health‐conscious menu The Noodle Box’s health conscious menu items are in line with the current trend towards health awareness. All of the menu items are low in fat and are prepared with fresh natural ingredients, promoting health and well‐being. Low‐carbohydrate options are also available, distinguishing us from the “full fat” fast food chains on 8th street. ƒ
Universal proprietary recipe and training Operating as a franchise, we will receive proprietary recipes and training from the Noodle Box Inc. This ensures that a customer who had the Noodle Box in other city can find the exact experience with us. Our sauces for the stirfrys are patented; as well, prior to opening, our wok chefs will receive a few days of training to learn the aspects of preparing each dish. Weaknesses ƒ
Low brand‐recognition in the local market Currently in Canada, there are only three “The Noodle Box” stores, all which are operating in British Columbia. No establishments have yet been made in Saskatchewan. The zero‐brand‐recognition imposes a challenge to the business and more local marketing efforts will be needed to create awareness. ƒ
Control over suppliers Under the franchise agreement, we are required to buy materials from approved suppliers. This may prevent potential cost‐savings in the event that a cheaper supplier could be found. This inflexibility with Noodle Box standards may prove to be a hindrance if we are unable to find economical suppliers in the local region. Page 11 Opportunities ƒ
First‐mover advantage As mentioned previously, there is no “The Noodle Box” franchise in Saskatoon. By opening the first franchise store in Saskatoon, we are able to capture the first‐mover advantage in this segment. ƒ
Booming economy in Saskatchewan and increased disposable income Saskatchewan is one of the few provinces that have shown growth during difficult economic times. Saskatoon is the largest city in the province of Saskatchewan. ƒ
Unsaturated market Currently there are no South‐east Asian Noodle houses on 8th street therefore the market is unsaturated. Threats ƒ
Entrance of other industry leaders The biggest threat to The Noodle Box is the entrance of other industry leaders on 8th street such as the “Manchu Wok” franchise, which already has a presence in Midtown Plaza Shopping Center in downtown Saskatoon. With an unpredictable economy, people are trending towards mid‐range dining experiences and food that can be enjoyed at home for a lower cost. This attracts other industry leaders. ƒ
Popularity of food‐style Another risk is the popularity of South‐east Asian cuisine with Saskatoon residents. This risk has been mitigated through the intensive surveying and consumer research that we have conducted prior to this proposal. Please refer to the survey results discussion under “Marketing Strategy” above. Page 12 3.7
PESTE Analysis Political Economic ƒ
ƒ
Required to file a tax return each year. ƒ
Required to remit source deductions to the The Noodle Box would be affected by government laws and regulations involved government on behalf of employees and with the operations of a small business. ‐
pay the employer portion of benefits Required to obtain permits and licenses including Canada pension plan and from all levels of government (federal, employment insurance. provincial, municipal) to operate The Noodle Box. ƒ
Required to collect and remit GST to the government. ƒ
While the global economy is currently in the midst of an economic recession, this situation is expected to improve. The Bank of Canada has reduced the overnight interest rate in order to stimulate the economy. ‐
Saskatchewan is one of the few provinces that have shown growth during difficult Conclusion: economic times. The Noodle Box would need to ensure it obtains Conclusion: all of the proper permits and licenses before it The Noodle Box would need to ensure its tax commences with renovations to its site and return is filed each year and its source before it starts operations, to avoid unnecessary deductions and GST are remitted on time to the fines. This would include and not be limited to a government to avoid interest and penalties. business registration, business license, building Despite the recession, the Saskatoon economy permit, vendor’s license, public establishment would be able to support a new business license, business name registration, worker’s opening up. People would still have disposable compensation board registration, electrical income; however, they would be more careful permit and gas permit. where they are spending it. Page 13 Social ƒ
Technological Aging demographic, trend towards ƒ
Better computer systems coming out healthier eating. ƒ
ƒ
Consumers wanting value for their every few months. ƒ
In terms of restaurant Point of Sale (POS) money. software, a few big companies to choose Consumers more aware and from and they have been in business for a concerned about the environment. while. ƒ
Software upgrades. Conclusion: Conclusion: The Noodle Box is in a good position to The Noodle Box depends on its point of sale capitalize on all these social aspects through system in order to take and keep track of its offering of high‐quality fresh food as well as orders and sales. A computer system would on providing an exciting and unique dining be required to record system and payroll experience to customers for a reasonable functions. Even though computer hardware price. The Noodle Box also integrates and systems are constantly changing they can environmental responsibility into its daily often last for quite awhile (around 4‐5 years practice, in line with consumer’s current for a small business). What The Noodle Box awareness and concerns about the needs to be aware of is software upgrades; environment. these should be done regularly and kept track of, as they can help to improve the functionality of The Noodle Box’s point of sale system. Environmental We believe that any additional environmental regulations that do come into effect The Noodle Box will be able to handle. Page 14 Conclusion: The Noodle Box prides itself on being an environmentally responsible corporation. By incorporating a recycling‐conscious vision into The Noodle Box operations we are on the cutting‐
edge of environmental responsibility in Saskatoon. This dedication to respecting our environment and being considerate of our environmental footprint separates The Noodle Box from other fast‐food establishments. PESTE Conclusion By understanding underlying market factors that can affect The Noodle Box business, we can mitigate the risks that may be associated with operating a business in this environment. 4.0 Operations Plan 4.1
Organizational Structure Corporate Structure The Noodle Box will be incorporated under the Saskatchewan Business Corporation Act. The corporate structure’s primary advantage is the limited legal liability for its owners; the owners are only liable for the corporation’s debts up to their original investment. Another advantage includes the flexibility in the use of earnings. As a Canadian Controlled Private Corporation (“CCPC”), the first $500,000 of active business income is subject to the lower corporate tax rate of 16%, including both federal and provincial taxes. These earnings, which have only been taxed at 16%, can then be reinvested into the company. However, the second level of tax is not incurred until earnings are distributed to the shareholder. For example, dividends paid out to owners are taxed in the individual’s hands. Board of Advisors The Board of Advisors has been formed by The Noodle Box’s franchise head office location in Victoria, BC. The Board includes the two founders of The Noodle Box (Jodi Mann and Nick Crooks) as well as an external accountant and lawyer. Hence, each Board member has a specified area of expertise in subjects such as management and operations of quick service restaurants, accounting and finance, and legal Page 15 matters. The Board’s responsibilities include overseeing The Noodle Box’s philosophy and corporate social values as well as providing guidance to the franchise managers at each location. Management The Noodle Box franchise will be managed and run by the Saskatoon Noodle Box Manager and Assistant Manager. Please refer to the “Human Resources Strategy” section within the “Human Resources Plan” for further information regarding the qualifications and experience of these managers. 4.2
Daily Operations Floor Plan The Noodle Box restaurant will be approximately 2,000 ft², with the customer, kitchen, and office areas consisting of 1,400 ft², 500 ft², and 100 ft² respectively. The customer area will seat approximately 22 people, including both bar and table seating. Asian décor will also be featured and will complement the Noodle Box dining experience. The majority of the kitchen area will consist of an open kitchen. As noted in “The Marketing Mix” section of the “Marketing Plan”, this serves as a unique feature as customers can witness the wok chefs prepare their dish while they wait for their order. Please refer to Appendix D for the detailed floor plan. Lastly, there will be a small office room used for administrative purposes. Hours of Operation The Noodle Box’s hours of operation are as follows: Monday 11:00am – 9:00pm Tuesday 11:00am – 9:00pm Wednesday 11:00am – 9:00pm Thursday 11:00am – 9:00pm Friday 11:00am – 10:00pm Saturday 11:00am – 9:00pm Sunday 11:00am – 9:00pm Employee Responsibilities Opening wok chefs will arrive at the restaurant at 10:00am to commence food preparation duties for the peak lunch hour period, whereas opening cashiers will arrive at 10:30am to re‐count the cash float Page 16 with management and perform other administrative tasks. During the peak hours of 11:30am – 1:30pm and 6:00pm – 8:00pm, there will be two wok chefs, one cashier, and one manager working. By year four it is anticipated that sales will have grown to the point where an additional wok chef will be added during peak hours. During non‐peak hours, approximately one wok chef and one cashier will be working in the kitchen area. Employees will also assist with taking stock of ingredients and supplies. Closing work chefs will work for an additional hour subsequent to close to clean the restaurant and kitchen area, as well as prepare for the next day. The closing cashier will also stay one hour after close to count the monies collected for the day, prepare the next day’s float, and clean the customer area and washrooms. It should be noted that table service is not provided as The Noodle Box’s primary focus is on devoting its resources to the fast preparation of customers’ orders. Management Responsibilities Daily responsibilities for The Noodle Box Manager/Assistant Manager include placing food orders to suppliers to be delivered the subsequent morning, re‐counting monies collected, and performing the night deposit. Management is also responsible for monitoring inventory usage and quantities, managing the monthly invoicing of the corporate accounts, and analyzing financial and operational results on an ongoing basis. Lastly, managers will also be held accountable for promoting The Noodle Box’s Philosophy at the Saskatoon franchise through strong leadership skills, and will be dedicated to continuous improvement of the Noodle Box’s operations. 4.3
Supply Analysis Food and Beverage Please refer to Appendix B for the full ingredients listing required for The Noodle Box. In order to maintain the high‐level of quality of Noodle Box cuisine, the Saskatoon franchise will use a national supplier for food products as per the franchise agreement. However, local suppliers such as “Chung Wah Chinese Grocery & Seafood” (located at 210, 20th Street West, Saskatoon) will also be considered in the future given the convenience of location. All proposed suppliers are required to go through a screening process prior to approval by the Victoria head office location. Page 17 As for beverages such as pop and juice products, local suppliers will be approved for bulk purchases of these items. It should be noted that the head office will negotiate price arrangements with all suppliers on behalf of the franchises. Equipment and Other Supplies All equipment (see “Capital Budget” section) and general supplies will be provided by local franchise‐
approved suppliers. Other “Noodle Box specific supplies” such as chopsticks, napkins, and the trademark Noodle Box take‐out boxes will be shipped from the Vancouver location rather than be locally produced. This is due to the significant cost savings from economies of scale realized in the production of these supplies. 4.4
Service Providers Accounting and Legal The Noodle Box will require accounting and legal services. A local accounting firm will provide bookkeeping services and prepare financial statements on a monthly basis to help the managers evaluate financial results against budgeted figures. The accounting firm will also prepare the corporate income tax return. The local legal firm will provide various legal professional services as required. Information Systems and Technology The Noodle Box will also require information systems and technology services; however, such systems will be basic as the restaurant will only require Point of Sale (POS) software, one cash register, and one computer system for operational, financial, and customer data. These systems will be maintained by a local IT firm. 4.5
Technical Processes and Procedures The Noodle Box’s technical processes and procedures relate to the general operations of the franchise, including the preparation of customer orders. Please refer to the “Human Resources Strategy” section within the “Human Resources Plan” for further details over the training programs offered to Page 18 management. Please note that WHMIS (workplace hazardous materials information system) training will also be provided for all employees. 4.6
Total Quality Management Part of The Noodle Box Philosophy is to “serve freshly prepared, high‐quality food at affordable prices”; thus, the quality of food serves as a key success factor to the franchise. The Noodle Box’s dedication to quality is evidenced through the following aspects: •
Food Safety: The Noodle Box is registered and in full compliance with HACPP (Hazardous Analysis and Critical Control Points) standards. All staff are required to be certified in Foodsafe Level I. •
Food Preparation: An extensive 10‐day training program held by Noodle Box trainers from Victoria will be provided for Saskatoon management in preparation for the commencement of operations; specific days during the training course will be set for the wok chefs along with management to learn the aspects of preparing each dish. The Saskatoon managers will then, in turn, train the cashiers. Please refer to the Human Resources Strategy” section within the “Human Resources Plan” for further details over training. •
Continuous Improvement: Internally, an open door policy will be promoted and all employees will be encouraged to provide both positive and negative feedback to management. Anonymous feedback forms will also be available. Externally, The Noodle Box will provide feedback forms for customers near the cashier area as well as on the The Noodle Box website. 4.7
Environmental Limitations Permits and Licenses First, the physical space at 2311 8th Street West must meet all local zoning laws for restaurants. Next, once all of the Noodle Box equipment has been installed, the local department of health services or a restaurant regulation agency will approve the site. This includes examining kitchen equipment, ventilation systems, and the sufficiency of counter space. While these permits are inexpensive at approximately $100 each, they can take up to 9 months for processing and final approval. Subsequently, and as noted under “Total Quality Management” within the “Operations Plan”, employees will be Page 19 required to be certified under Foodsafe Level I. Lastly, a local fire inspector will inspect The Noodle Box site. 1 It should be noted that a liquor license is not required as no alcoholic beverages will be served on the Saskatoon franchise’s premises. 4.8
Capital Budget All capital costs are based on discussions with the franchise, marketing research, and supplier quotes. Equipment 2 Kitchen Area Equipment ($80,000): This includes industrial cooking and ventilation equipment; refrigerators and freezers; counters with stations for cutting, heating and cooling; a dishwasher; woks and miscellaneous kitchenware. Customer Area Equipment ($30,000): This includes tables, benches, chairs, bar stools, recycling & garbage bins, and Asian décor. Office Area Equipment ($10,000): This includes a computer, POS software, a cash register, shelving, a cabinet, desk chairs, and a phone/fax system. Capital replacement: Estimated to be $20,000 every 5 years. Signage Outdoor Signage ($15,000): This consists of an outdoor sign, display board, and window painting. Indoor Signage ($10,000): This consists of an indoor menu board, daily special board, and open/closed sign. Capital replacement: Estimated to be $10,000 every 10 years. 1
Farrell, Maureen. How to Run a Restaurant: Permits. February 2, 2007. Forbes.com
http://www.forbes.com/2007/02/02/restaurant-liquor-license-ent-manage-cx_mf_0202fundamentalspermits.html
(accessed June 27, 2009).
2
Farrell, Maureen. How to Run a Restaurant: Start-up Costs. February 2, 2007. Forbes.com
http://www.forbes.com/2007/02/02/visa-american-express-ent-manage-cx_mf_0202fundamentalscosts.html
(accessed June 27, 2009).
Page 20 Leasehold Improvements Total leasehold improvements of $215,000 will comprise of adding and removing walls, re‐wiring, re‐
plumbing, adding finishes, lighting, shelving, and installing various fixtures. Capital replacement for leasehold improvements is estimated to be $50,000 every 5 years. Franchise Fee The franchise fee of $25,000 relates to the upfront cost required to operate and maintain a franchise. This will not require capital replacement as it is a one‐time cost. 4.9
Working Capital Planning and Management Accounts Receivable As the majority of sales will be collected instantaneously (e.g. eat‐in meals and take‐out meals are paid for at the time of sale), accounts receivable will solely comprise of customer accounts and catering clientele. As noted in the “Management Responsibilities” section above within the “Operations Plan”, these accounts will be invoiced on a monthly basis and management will consistently monitor the aging of accounts. Both credit terms and overdue penalties are determined by the franchise, and accounts receivable are expected to have a turnover of 15 days. Inventories Inventories will consist of food ingredients and beverages. Given that the average shelf time for perishables is approximately two to three days, food inventories are expected to turnover every seven days. 3 While beverages are expected to turnover less frequently, as the majority of inventories will comprise of food, the beverage turnover has not been factored into our “Financial Plan”. Both employees and management will be responsible for monitoring inventory items, and management will place inventory orders on a daily basis. 3
MonkeyDish. The meat goes on. Ideal Media. http://www.monkeydish.com/2000053123025/trade-secrets/the-meatgoes-on.html (accessed June 27, 2009).
Page 21 Accounts Payable Accounts payable includes payments to suppliers for inventory and operating expenses, as well as regular payments to the Franchise; this balance is expected to turnover every 15 days. Management will also be responsible for monitoring accounts payable balances and ensuring timely payment to vendors and the Franchise. Cash Conversion Cycle The cash conversion cycle (“CCC”) exemplifies the number of days that cash is occupied within the process of converting raw materials into finished goods. The CCC is determined to be seven days. Given the nature of The Noodle Box and quick service restaurants in general, as explained above within “Accounts Receivable” and “Inventories”, the CCC is not a primary concern for The Noodle Box. 4.10
Operating Expenses Similar to capital costs, all operating expenses are also based on discussions with the franchise, marketing research, and vendor quotes. Operating expenses consist of the following: •
Depreciation: Depreciation is calculated based on capital cost allowance (“CCA”) and cumulative eligible capital (“CEC”) rates as per the Income Tax Act. •
Franchise Fee: The franchise fee is based on 6% of total sales. •
Insurance: Insurance comprises of fire and liability insurance. •
Interest on Long‐Term Debt: Interest is incurred at 6% of long‐term debt outstanding. •
Lease Payments: These payments are for the site location and building, and consist of $25 per square foot. •
Marketing: This includes both local marketing expenses as well as franchise marking expenses for central advertising such as the maintenance of The Noodle Box website. Franchise marketing expenses are estimated to be approximately 3% of total sales. •
Professional Fees: These fees include incorporation costs at start‐up, in addition to ongoing accounting and legal services provided. •
Repairs & Maintenance (“R&M”): This expense is for ongoing R&M as needed, and is estimated to be 10% of the lease payment. Page 22 •
Supplies: Supplies consist of general and office supplies; this includes paper, customer feedback forms, business cards, and take‐out menus. •
Telephone & Utilities: This comprises of expenses such as phone lines, internet services, electricity, water, and gas. Please refer to the Financial Plan spreadsheet analysis for further details over the above expense balances. With the exception of start‐up expenses (e.g. incorporation costs), operating expenses are expected to be consistent; however, they have been adjusted for inflation in the Financial Plan. 4.11
Cost of Goods Sold The cost of goods manufactured consists of direct materials required to produce The Noodle Box menu items. Please refer to Appendix A for a sample menu and Appendix B for the ingredients required, both of which are based on Franchise requirements. The target gross profit margin will be 60%, thus, the cost of goods manufactured will be approximately 40% of total sales. 5.0 Human Resources Plan 5.1
Labour Management Expertise The manager and assistant manager should have past management experience in the fast food/ restaurant industry. We are seeking motivated and hardworking individuals that have the leadership skills necessary to promote The Noodle Box’s Philosophy. The manager will be paid a salary of $40,000 per year and the assistant manager will be paid a salary of $30,000 per year. We will also need to hire a supervisor to work when the manager and assistant manager are not working. Staff We are seeking upbeat, motivated and hard working individuals to join our staff as cashiers and wok chefs. We will need to hire approximately 6 wok chefs and 3 cashiers, all on a part‐time basis. Please refer to the Employee and Management Responsibilities sections within “Daily Operations” of the “Operations Plan” for daily required duties. Page 23 A detail of the job descriptions are provided in Appendix F. 5.2
Staff and Management Costs Below is a summary of the total annual staff hours required to run the restaurant and the projected 5 year payroll expenses. This is based on the projections of staff required during the busy peak and non peak hours in Appendix G. Summary of hours and labour costs
Manager
Assistant Manager Supervisor Wok‐Chefs Cashiers Total labour hours
Total Hours 2,080
1,872
416
6,552
4,004
14,924
Salary/ Wage rate $40,000 / year $30,000 / year $13.25 / hour
$11.25 / hour
$9.25 / hour
Five Year Projection of Salary and Wage Expenses
Salary and wages
Manager
Assistant Manager
Supervisor
Wok‐chefts
Cashiers
Benefits
Employment insurance
Canada pension plan
Workers compensation
Holiday pay
Total payroll expenses
Year 1
2011
Year 2
2012
Year 3
2013
Year 4
2014
Year 5
2015
40,000
30,000
5,512
73,710
37,037
40,800
30,600
5,622
75,184
37,778
41,616
31,212
5,735
76,688
38,533
42,448
31,836
5,849
104,296
39,304
43,297
32,473
5,966
106,381
40,090
4,511
9,220
3,725
10,746
4,601
9,404
3,800
10,961
4,693
9,592
3,876
11,180
5,419
11,075
4,475
12,908
5,527
11,296
4,564
13,166
214,461
218,750
223,125 257,609 262,762
Page 24 5.3
Human Resource Strategy THE NOODLE BOX PHILOSOPHY At The Noodle Box, our goal is to: * serve freshly prepared, high‐quality food at affordable prices; * develop and maintain good customer relations; * integrate environmental responsibility into our daily practice; * respect all employees, and encourage and invest in their professional development; * foster a positive work environment; * provide an upbeat, vibrant atmosphere for customers. We keep these principles top of mind and continuously strive for ways to improve and enhance our practice to ensure we conduct ourselves ethically and responsibly. THE NOODLE BOX CORPORATE SOCIAL VALUES The Noodle Box values staff as its primary asset. We believe in basing our staffing relations on positivity, trust, respect, and open communication. We want our staff to experience success in their work, develop skills and be in an environment that encourages growth and confidence.
The Noodle Box provides a positive, upbeat, vibrant atmosphere for all staff to work in. We respect all employees and encourage and invest in their professional development. Flexible shifts will be offered to attract staff. One of the benefits of working at The Noodle Box is the 50% discount on food for staff during their shifts. Training Programs As part of the franchise agreement, trainers from the corporate head office will fly to Saskatoon to provide a 10 day intensive training course to the manager, assistant manager; specific days during the training course will be set for the wok chefs along with management to learn the aspects of preparing each dish. Page 25 During the training course, the manager and assistant manager will learn the secrets to operating a successful Noodle Box franchise, how to train and manage employees and utilize the Point of Sale systems. The manager and assistant manager will also join the wok chefs in learning all the aspects of preparing each dish. Ongoing support is provided by The Noodle Box head office to the manager to ensure that the restaurant is running according to The Noodle Box’s standards. Any additional training for the employees will be provided in‐store by the manager or assistant manager. Seminars aligning with our Noodle Box philosophy covering topics ranging from customer service, cooking, food safety, understanding different types of Asian foods and environmental responsibility will be regularly provided to all staff. Projected Training Expenses Training expenses Year 1 2011 $6,000 Year 2 2012 $3,000 Year 3 2013 $3,060 Year 4 2014 $3,121 Year 5 2015 $3,184 Organizational Chart Manager
Assistant Manager
Supervisor
Wok Chefs Cashiers Page 26 6.0 Financial Plan 6.1
Overview The financial plan includes 10 year financial projections (see the attached excel file) under the base, or expected, case as well as best case and worst case scenarios. The expected case projections are based on market and supplier research conducted above under the marketing, operations and human resource plans. In examining the scenarios it is important to note that anticipated capacity for this location is approximately 225 meals per day. The primary factor to consider in conducting a sensitivity analysis are the number of meals per day which is comprised of both the anticipated number of meals per day during the first year of operations as well as the rate of growth and market penetration over the following years. Our expected scenario indicates an internal rate of return of 16% which correlates to a positive net present value at a 15% required rate or return. This is due to the low competitive environment for healthy Asian fast‐food in Saskatoon and, in particular, on 8th Street. 6.2
Economic Forecast In preparing these financial projections, a 2.0% rate of inflation has been assumed. This rate of inflation impacts both revenues and most costs. The interest rate on long‐term debt has been forecast at an expected average rate of 6.0% based on the currently low prime rate. Expected growth is projected at 20% for the first couple years after which growth begins to taper off by 5.0% per year down to 2.0% expected growth in year 8. This is based on anticipated rates of market acceptance and penetration. 6.3
Financing and Debt Amortization The financing is planned at 50% shareholder loans and 50% bank financing to raise the $550,000 required for start‐up. The bank financing is anticipated to be amortized over 15 years and additional financing will be taken out for the leasehold improvement upgrades in years 5 and 10. It is anticipated that the shareholder loans will be repaid between years 4 and 8 at $40,000 per year. Page 27 If actual results tend more towards the best case scenario, then the shareholder loans can be repaid more quickly. If results tend more towards the worst case scenario, then the shareholders will be required to inject additional capital to fund losses; assuming they choose to continue with the business. 6.4
Investment and Risk Analysis The Noodle Box represents a unique opportunity in Saskatoon, and particularly on 8th Street, where there is a relatively low level of competition in the healthy Asian fast‐food market. However, as this does represent a new offering to the market, it does carry with it a certain level of risk. There is also a certain level of risk attached to opening a restaurant in general, given the capital investment required without any guaranteed sales; this risk is mitigated somewhat by the fact that The Noodle Box has franchise support that will improve the chances of success by providing advice and guidance to avoid the pitfalls and difficulties experienced by the first stores in Vancouver and Victoria. Therefore, the overall required rate of return for this business has been assessed at 15%. Under the expected scenario, the Company will experience a loss in year 1 and will not experience a profit until year 5. This is due to the time it takes to build awareness and acceptance in the market and increase market penetration. Over a 10 year period the Company will have a positive net present value and an internal rate of return of 16%. The best case scenario provides for increased market acceptance in the first year and faster growth rate due to quicker growth in market awareness and penetration. Accordingly, capacity is reached in year 5 under the best case scenario as opposed to year 8 under the expected scenario. The best case scenario provides a net present value of approximately $385,000 and an internal rate of return of 33%. The worst case scenario would result from relatively weaker market acceptance in the first year and slow growth in awareness and penetration. As a result, sales are significantly below capacity under the worst case scenario, even through year 10. The worst case scenario results in a significantly negative net present value with an internal rate of return of only 2%. Anticipated results generate a rate of return that satisfies the required rate of return, accompanied by the possibility of expansion to a second location once market acceptance and brand awareness has been built. Accordingly, we are excited to pursue this opportunity to bring The Noodle Box to Saskatoon! Page 28 7.0 References Farrell, Maureen. How to Run a Restaurant: Permits. February 2, 2007. Forbes.com http://www.forbes.com/2007/02/02/restaurant‐liquor‐license‐ent‐manage‐
cx_mf_0202fundamentalspermits.html (accessed June 27, 2009). Farrell, Maureen. How to Run a Restaurant: Start‐up Costs. February 2, 2007. Forbes.com http://www.forbes.com/2007/02/02/visa‐american‐express‐ent‐manage‐
cx_mf_0202fundamentalscosts.html (accessed June 27, 2009). MonkeyDish. The meat goes on. Ideal Media. http://www.monkeydish.com/2000053123025/trade‐
secrets/the‐meat‐goes‐on.html (accessed June 27, 2009). The Noodle Box. The Noodle Box | Southeast Asian Noodle Bar and Restaurant Victoria and Vancouver BC Canada. The Noodle Box Copyright 2009. http://www.thenoodlebox.net/ (accessed June 27, 2009). Wok Box. Wok Box – Franchise Information K it. 2008 Wok Box. http://www.wokbox.ca/franchise‐
info/documents/wokboxfran.pdf (accessed June 27, 2009). Page 29 Appendix A: Menu A sample menu featuring our tasty Noodle Box dishes is found on the next page. Page 30 Saskatoon 384-1314
All taxes included in prices
Appetizers
The Noodle Box.
2311 8th St East
Saskatoon
Stirfry
VIETNAMESE SPRING ROLLS (4)
BLACK BEAN AND GARLIC (available with rice)
House made Pork Spring Rolls, served with cilantro and
lettuce for rolling, and nouc cham for dipping. $8.50
Hokkein noodles, wok fried with garlic, peppers, asian
greens, sprouts, herbs and black bean sauce.
$9.50
Available with: Chicken, Pork, Beef or Tofu
Prawns
$10.50
Combination $11.50
INDONESIAN STYLE SATAY (6)
Chefs choice, skewered and grilled, served with
complementary dipping sauce. THAI STYLE CHOW MEIN
Fried puff paratha served with a spicy curry sauce. $7
Thin egg noodles wok fried with sprouts, crushed peanuts,
peppers, cilantro, green onion and a light soy and ginger
sauce.
Available with:
Chicken, Pork or Tofu $9
Prawns
$10
Combination $11
FRIED DUMPLINGS (6)
TERIYAKI BOX (available with rice)
$8.50
MALAY STYLE ROTI BREAD (2)
Pork or Vegetable, served with ponzu sauce.
$6.50
Soup & Curry
TOM YUM SOUP
Hot and sour broth, with rice noodles, mushrooms, peppers,
asian greens, sprouts and herbs.
Chicken, Pork or Tofu $9
Available with:
Prawns
$10
Combination $11
SINGAPORE CASHEW CURRY (available with rice)
Mild curry spices, with toasted cashews, coconut milk,
peppers, asian greens, herbs, and ribbon noodles.
Available with:
Chicken, Pork or Tofu $11
Prawns
$12
Combination $13
CAMBODIAN JUNGLE CURRY (available with rice)
Spicy curry broth with rice noodles, simmered with ginger,
mushrooms, peppers, asian greens, sprouts and finished with
mango, herbs and lime.
Available with:
Chicken, Pork or Tofu $10
Prawns
$11
Combination $12
THAI GREEN CURRY (available with rice)
Fragrant housemade curry, simmered in coconut milk and
lime, with rice noodles, bamboo shoots, sprouts and herbs.
Available with:
Chicken, Pork or Tofu $9.50
Prawns
$10.50
Combination $11.50
MALAYSIAN LAMB CURRY
A traditional slow cooked lamb curry, medium spiced, served
with a roti bread, Jasmine rice and cucumber Raita.
$14
Upgrades
SPICY PEANUT BOX (available with rice)
Indonesian style peanut sauce, wok fried with peppers, asian
greens, crushed peanuts, herbs, sprouts, coconut milk and
lime on ribbon noodles.
Available with:
Chicken, Pork or Tofu $11
Prawns
$12
Combination $13
NOODLE BOX CHILI PLUM (available with rice)
Hokkein noodles, wok fried with peppers, asian greens,
sprouts, and green onion, tossed in our own sweet chilli plum
sauce.
Available with:
Chicken, Pork or Tofu $9.50
Prawns
$10.50
Combination $11.50
MALAY STYLE FRIED RICE (Nasi Goreng)
Jasmine rice, wok fried with prawns, chicken and egg with
mild curry spices, asian greens, sprouts and herbs.
$11 KIDS NOODLE BOX
Thin Egg Noodles, with sprouts and green onion, flavoured
with a light soya sauce. (Veg. Optional)
$5
Available with:
Regular / Plain
Vegetable
$5.50
Chicken or Tofu
$6
Extras
SIDE OF RICE
$3 / $2
$3 for single side of rice or $2 with any meal
PREMIUM PROTEIN
market $
Locally sourced and seasonal. Upgrade any box. DOUBLE MEAT
BROWN RICE OPTION
Thick Japanese udon noodles, wok fried with garlic, peppers,
asian greens, sprouts, green onion and a sweet and mild
teriyaki glaze.
$10.50
Available with: Chicken, Pork, Beef or Tofu
Prawns
$11.50
Combination $12.50
$3.50
$2
NO CARB BOX
EXTRA VEGETABLES
EXTRA CASHEWS / PEANUT SAUCE
1 DISH SPLIT INTO 2 BOXES
SUBSTITUTIONS/MODS
Please note our food may contain traces of nuts, seafood, heat and msg, inform your server of any allergies.
$3
$2
$1.50
$1
$0.50
Appendix B: Ingredients Listing Type of Ingredient Meats Meat substitutes Vegetables Fruits Seasonings and herbs Sauces Noodles, grains, and breads Other Ingredient Listing Chicken, pork, prawns, lamb Tofu Lettuce, mushrooms, peppers, Asian greens, bamboo shoots, green onion, cucumber raita, sprouts Mango, lime Nouc cham, ponzu, curry spices. coconut milk, ginger, garlic, cilantro Black bean sauce, soy sauce, fish sauce, ginger sauce, sweet chili plum sauce, chili oil Spring rolls, roti bread, rice noodles, ribbon noodles, jasmine rice, brown rice, hokkein noodles, egg noodles, udon noodles. Eggs, cashews, peanuts Page 32 Appendix C: Site Plan at 2311B 8th Street East Page 33 Appendix D: Floor Plan Emergency Exit Door for receiving deliveries Door Door
Counter and shelving Freezer Fridge Office Men’s washroom Women’s washroom Windows
Open wok Preparation stations Along the wall bench, Tables, Chairs
Overhanging bar and stools Self‐serve condiment and purified water station Garbage Can Point of Sale System
Benches for customers to sit when waiting for take Recycle
and Garbage Cans
Entrance Windows Windows Page 34 Appendix E: Sample Survey Marketing Research Survey – Asian‐style cuisine fast food in Saskatoon 1. Have you ever eaten Asian‐style cuisine? Yes_____ No_____ 2. If the answer in Question 1 is yes, how often do you normally eat Asian‐style cuisine? a. More than once a week ____ b. Once a week ____ c. Once every two weeks ____ d. Once a month ____ e. Less than once a month ____ 3. If the answer in Question 1 is no, are you interested in trying Asian‐style fast food? Yes ____ No ____ if no, why not? _________________________________________________ 4. Which fast food establishment on 8th street do you frequent the most? a. McDonalds / Wendy’s b. Quizno’s / Subway c. Other ___________________________ d. I don’t eat fast food 5. What is your annual income: a. Below $30,000 _____ b. $30,000 ‐ $60,000 _____ c. Above $60,000 _____ d. Prefer not to say ____ 6. What is your gender? F ___ M ____ Prefer not to say ____ 7. What is your age a. Below 18 ___ b. 18‐29 ___ c. 30 – 49___ d. 50 + ___ e. Prefer not to say ___ Page 35 Appendix F: Detail of Job Responsibilities One Manager Salary: $40,000 ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Oversee staff Monitoring inventory usage, placing orders for food, beverage and non‐food supplies Ensure restaurant kept up to health codes and Noodle Box standards Recruit, hire, and train/oversee training for all staff Schedule work hours for all staff, prepare payroll Maintain budget and pay bills Perform record keeping tasks Total receipts and balance against sales, deposit receipts, open or lock facility Manage catering orders and monthly invoicing of corporate accounts Fully trained in all positions to help out during peak periods Promoting Noodle Box’s Philosophy through strong leadership skills Dedicated to continuous improvement of Noodle Box’s operations One Assistant Manager Salary: $30,000 ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Oversee staff Monitoring inventory usage, placing orders for food, beverage and non‐food supplies Ensure restaurant kept up to health codes and Noodle Box standards Help recruit, hire, and train/oversee training for all staff Total receipts and balance against sales, deposit receipts, open or lock facility at end of day. Fully trained in all positions to help out during peak periods Promoting Noodle Box’s Philosophy through strong leadership skills Dedicated to continuous improvement of Noodle Box’s operations One Supervisor Wage: $13.25 per hour ƒ
ƒ
ƒ
ƒ
Oversee staff Ensure restaurant kept up to health codes and Noodle Box standards Total receipts and balance against sales, deposit receipts, open or lock facility at end of day Fully trained in all positions to help out during peak periods Ten Part­time Wok Chefs Wage: $11.25 per hour ƒ
ƒ
ƒ
Food preparation and cooking to Noodle Box standards Follow health regulations in the preparation of food Clean up of restaurant and dining area Page 36 Appendix F: Detail of Job Responsibilities (Continued) Four Part­Time Cashiers $9.25 per hour ƒ
ƒ
ƒ
ƒ
Take and call out orders Process transactions through the Point of Sale system Clean up and organizing of dining area Restocking self‐serve condiment stations Page 37 Appendix G: Required Staffing Hours Monday – Friday Manager
Assistant
Manager
Supervisor
# Staff required
Shifts
Cashier
1
Wok Chef's
1
2
10:00
11:00
12:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
Total Daily hours
Monday to Friday Total Hours
8
4
0
11
18
40
20
0
55
90
Manager
Assistant
Manager
Supervisor
Cashier
1
# Staff required
Shifts
Saturday & Sunday Wok Chef's
1
2
10:00
11:00
12:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
Total Daily hours
0
8
4
11
18
Saturday and Sunday Total Hours
0
16
8
22
36
Total Weekly Staff Hours
40
36
8
77
126
Total Yearly Staff Hours
2,080
1,872
416
4,004
6,552
Page 38