M_Cardona Business Plan 2

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Liberty University *

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Industrial Engineering

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Dec 6, 2023

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docx

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Matthew Cardona Taste of Home Deli 2070 RT.69 Wolcott CT, 06716 860-222-2222 TasteofHome@gmail.com 04/30/2023 1
Table of Contents -Research Design and Development -3 -Financials -4 -Milestone Schedule-5 Research Design and Development 2
There are so many fast food options available today in general, although the are that we are looking to move into does not have to many options available. We have an idea to create a research, design and development plan that is a reflection on what other fast food options are doing. This includes chain food businesses that specialize in sandwich making. This research would evaluate the sales and business plans of places like major chains like Subway, Jimmy's Johns, Fire House Subs and one of the greatest Italian Deli Chains called A&S Deli. These chains would be evaluated to see the different strategies involved in how they market to their customers and what kind of deals they offer. Many of these chains offer online ordering services that allow you to build your order and pre-pay before pick-up. This is important to determine how we will compete with faster more convenient food chains that do not offer fresher home cooked options that we would. The research team would be given the job of separating ourselves from the rest and still offering the convenience of these other chains. We would use a Experimental research design that would involve us purchasing foods that would be similar to the ones we would offer on our menus. This would allow us to not only test the quality of their foods but also place a margin between the bushiness as well. This research process will provide us the idea of how customers interact with these businesses and how to navigate the online features provided by the competitors. 3
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The costs involved in this research will include purchasing of food items from competitors for sampling and research, hiring a web and program designer to create a similar interface that we can possibly incorporate in our business as well, these costs will all be recorded and documented. Financials Delis have a range of expected income they can net each year from their profits. The stand alone Delis can make far more each year ranging from 150K-500k a year. Franchise Delis can look to make as much as 75K a year in profits. These income variances also are affected and contributed to based on the delis location and market need. During the first year I would expect to make a profit of 30K a month this is not the gross and I will still have income designated to pay the needed costs to operate. These operational costs will be calculated by including the cost of rent, supplies, machinery, food products and licenses need to serve and operate. The restaurant business profit margin is between 0-15 percent. There will need direct and indirect cost evaluation that will include the cost of food and materials monthly which will be approximately 5K. The other indirect costs that will need to be factored are the rent cost of 3.5k a month, equipment charges will cost around 850.00 a month, and utilities that will cost around 2k a month. These total 11,350 a month. The total revenue required each month to operate and collect an income and pay these operational costs would be 50K a month. This would allow for a payroll for employees 4
around 38k a month. Between three employees this will be a little over 10k a month fro each employee. The funding for this business will be partly from loans and also from revenue created from selling my pizzerias. One positive savings that I will have when starting this Deli up is that I am using the Mobile POS stations and software previously used at my pizzerias. This will save on not only costs of purchasing but as well as time and money spent on training for a new system. The menu items would be created and priced based on the cost per item. Whatever our cost to provide a item on the menu would be we would mark that item up to create a profit without creating prices that are not customer friendly Milestone Schedule When starting a new business it is very important to designate goals or milestones that will become must do's for the business to reach deadlines successfully. The grand opening of a Deli is a big moment and a great opportunity to introduce yourself and your business to the community you will be serving. This will be announced to the community through social media, local newspapers, and flyer s in the town hall. Once we have received the funds needed to begin I plan to have the doors open fro business in 30 days max. The sooner I can open to the public the better. I have some objectives and that is to supply our local police, fire department, and emergency services with a free lunch twice a month. I would like to set dates with the local news paper to have 5
them report on the delivery to our local hero's by bringing them some foot long hero's! Another objective is to accomplish a liquor license for the deli as well. This will allow for the sale of our homemade wine as well as for the use of tasting and cooking on our weekend cooking classes we would provide to customers who are interested in a fun night of cooking. As mentioned previously there are contingency plans in place if there are delays in my grand opening. This would involve food truck appearances at our local parks on the weekends. The money profited would be donated to the local kids sports teams and we would offer to cater their first game of the season for teams that use our logo on their uniforms. 6
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