Coffee House

Photo by: Ragne Kabanova

BUSINESS PLAN

COFFEE CIRCUS

3005 37th Avenue

Santa Fe, AZ 68002

Coffee Circus’ owners are taking advantage of the coffee house
rage that has been sweeping the country. Along with taking advantage of
this trend, they are also planning for the future. Coffee Circus is also
marketing itself as a full service restaurant to maintain stability, in
case the coffee trend begins to fizzle.

• EXECUTIVE SUMMARY

• MISSION STATEMENT

• PURPOSE OF BUSINESS

• BUSINESS GOALS

• DESCRIPTION OF BUSINESS

• OPPORTUNITIES AND STRENGTHS

• CRITICAL RISKS AND PROBLEMS

• MARKETING

• OPERATIONS

• MANAGEMENT

• FINANCIAL

EXECUTIVE SUMMARY

The interest by consumers in the coffee house industry is sweeping the
country. Coffee Circus is positioned to bring this to the Northwest Santa
Fe area. To date it has been confined to the Central and East areas.

Coffee Circus will provide a friendly, comfortable atmosphere where the
customer can receive quality food, service and entertainment at a
reasonable price. The coffee house will offer a variety of choices to the
customers. Coffee and tea of all sorts will be offered. Juice, soda, and
non-alcoholic beverages also will be available. Both wine and beer will be
on sale. Coffee Circus will serve breakfast, lunch and dinner.

The interior design of the building will focus on projecting a relaxed
atmosphere. Coffee Circus will be divided into different areas. Some will
have tables and chairs, another will have large antique stuffed couches
and chairs, end tables, coffee tables, book shelves filled with books and
magazines, tiffany style lamps and braided rugs. A PA system will be
installed so that the music and entertainment can be heard throughout. A
large selection of table games will be provided.

There will be nightly entertainment featuring acoustic jazz, blues and
folk music. On selected nights there will be poetry readings and an open
microphone. The walls will be used as an art gallery and from time to time
there will be an artist in residence.

The site contains a 3,525 square foot building which was used as a sports
bar and restaurant. The building has substantial parking. The site shares
the Hart Plaza with Folk Limited and Ryan Sports. Remodeling will consist
of removing the existing booths, new carpet and some new furniture. The
kitchen and bathrooms will require only minimum remodeling. The property
is currently zoned for restaurants.

The area comprising a three mile radius around Coffee Circus is heavily
populated with young, upwardly, mobile persons with expendable income.
This is complemented by a large number of upper middle class “Baby
Boomers” who are a large portion of those persons who frequent
coffee houses.

A strength which this business will possess is the ability to change with
the times. Rather than limiting the future opportunities by having a small
area, Coffee Circus will have 3,525 square feet of space and a kitchen
designed for flexibility. As the fad of coffee houses fades, Coffee Circus
will be able to change to a full course restaurant or whatever the
situation calls for.

The advertising and promotion will take a number of avenues. First, flyers
will be distributed in the neighborhood. Ads will be taken out in all of
the Catholic church bulletins in the area. Since Coffee Circus will be the
first union restaurant in the state, ads will be placed in all of the
union newsletters. Ads will also be placed in the target areas of the
Burns’ Grocery, and the local neighborhood newsletters. For
businesses in the area, menus will be distributed and ordering will be
available by fax. A customer mailing list will be developed with a
calendar of events being mailed on a monthly basis.

Coffee Circus will be operated as a Sole Proprietorship. There will be
private investors. However, these investors will be silent investors with
a payoff of investment within three years. These investments will be paid
twice-yearly in equal installments including interest. The total needed
capital for Coffee Circus is $99,900. Owner’s cash contribution is
$10,000 and other investors and family members is $16,000. The amount
needed in loans is $30,800 for equipment, $20,000 for remodeling, and
$23,000 for operations. This is a total of $73,800.

Overall management will be the responsibility of the owner. The owner
brings to the business over 20 years of business experience including over
five years in restaurant management and five years in directing a
multifaceted non-profit housing program. The general manager will have a
minimum of 10 years experience. A major emphasis of Coffee Circus will be
to hire economically disadvantaged or at-risk persons and provide them
with job training. The majority of these persons will be identified
through the City of Santa Fe Job Training Partnership.

MISSION STATEMENT

To provide a friendly, comfortable atmosphere where the customer can
receive quality food, service and entertainment at a reasonable price.

PURPOSE OF BUSINESS PLAN

This document is intended to outline the start-up of the business known as
Coffee Circus. The business plan has a two-fold mission. One is to obtain
financing. The other is to help define the who, what, where, when and how
for the business so that the business will have a clear cut plan and
operations map.

BUSINESS GOALS

The goals of the business are to provide a substantial income and to
create a business and working environment where both the customer and
employee are treated with dignity and respect.

The specific goals of the business are:

Profit

– personal income in excess of $50,000 per year within three years

Clientele

– create a base clientele of persons who live and work in the area. These
persons will like a relaxed atmosphere where they can “hang
out”

Employees

– Competent employees (at least 51% from low-income neighborhoods) who
are committed and loyal

DESCRIPTION OF BUSINESS

Coffee Circus will be a coffee house/restaurant located in the Hart Plaza
on the southeast corner of 37th Ave. and Holgate.

The coffee house will offer a variety of choices to the customers. Coffee
and tea of all sorts will be offered. The choices of coffee will range
from espresso to latte, from regular flavor to raspberry-mocha. The teas
will range from English to flavored varieties.

Juice, soda, and non-alcoholic beverages also will be available. For those
who want something else to drink, both wine and beer will be on sale. Wine
can be ordered by the glass or by the carafe. Bottled micro-brewed beer
will be available.

The breakfast menu will feature croissants, muffins, bagels, donuts,
french pastries, fruit filled crepes, etc. Except for the crepes, the
baked goods will be purchased from The Works. Lunch and dinner will
feature sandwiches, salads and seven different soups. In hot weather, a
variety of cold soups will be offered. In addition, Coffee Circus will
feature a vast array of appetizers. These will include artichokes (Both
stuffed or served with butter); stuffed mushrooms; mini loaves of bread
served with your choice of a bowl of pesto, queso, or green chile, etc.
Desserts will consist of cheesecakes (some fat-free), pastries, pies,
fresh fruit and cheese.

The interior design of the building will focus on projecting a relaxed
atmosphere. The bottom portion of the walls will be forest green with the
upper being eggshell white. The carpeting will be forest green. The table
and chairs will be custom made from light oak. The chair coverings will be
of forest green material and heavily padded for comfort. The table tops
will be a marbleized
forest green laminate. Plants will abound in gold pots. The dishes and
eating utensils will be mismatched and purchased from antique and thrift
stores. The coffee cups will be from the forties and fifties era. They
will be provided by a local antique business and will be for sale.

Coffee Circus will be divided into different areas. An advantage to having
different areas is that customers can partake in different activities
without bothering anyone (i.e., political discussions will not interfere
with the music, or the music will not interfere with those playing board
games or reading).

The emphasis will be on providing a comfortable environment for the
customer where they will want to linger and return many times.

OPPORTUNITIES AND STRENGTHS

The time is right for opening a coffee house in the city of Santa Fe.
Coffee houses are having a great deal of success, which is evidenced by
the full houses every day of the week. The southeast side of Santa Fe has
no such places. The closest competition is the Coffee Club located at
Santa Fe Park and Main. In order to reach a coffee house, a customer from
our area must drive 20 to 30 minutes. The majority of these establishments
are located on the West side of town. A few are beginning to open in the
downtown area.

The area comprising a three mile radius around Coffee Circus is heavily
populated with young, upwardly, mobile persons with expendable income.
This is complimented by a large number of upper middle class “Baby
Boomers” who are a large portion of those persons who frequent
coffee houses.

An additional strength which this business will possess is the ability to
change with the times. Rather than limiting the future opportunities by
having a small area, Coffee Circus will have 3,525 square feet of space.
The kitchen will be designed for flexibility. As the fad of coffee fades,
Coffee Circus will be able to change to a full course restaurant or
whatever the situation calls for.

The business will bring with it a strong group of persons with an
extensive background in both restaurants and business.

CRITICAL RISKS AND PROBLEMS

There are risks inherent with any business. However, the restaurant
business carries with it very unique risks. Most critical is the
customers’ changing tastes. Another is the economy. Restaurants
rely heavily on serving persons who have expendable income. When the
economy takes a down turn, people change their spending priorities. There
are less trips to restaurants.

A problem also in restaurants is finding dependable help who will stay
with the business. Many restaurant employees tend to be younger and are
attempting to move into a career. When either their schooling ends or they
find their “dream job,” they move on. Often servers filling
the positions are non-skilled, and tend to be single mothers or lower
educated persons. These persons come with specific circumstances which
must be accounted for by management. A single mother may experience
child-care problems, or a bus person may have problems with reading. A
good owner must learn to deal with these problems in a manner which
benefits the business as well as the employee.

MARKETING

Goal

Generate monthly sales revenues of $71,000 per month of 3% of the target
market within 18 months of opening.

Objectives

• Maintain a high standard of food quality and service
• Provide first-rate live entertainment without a cover charge
• Ensure a friendly comfortable atmosphere
• Place monthly ads in neighborhood publications
• Distribute monthly fliers to neighborhood, businesses and churches
• Offer discount coupons
• Maintain and use a customer mailing list

Target Customer

The customer will be between 18 to 55 years old. The income level is
between $20,000 and $100,000 per year. They will live within three miles
of Coffee Circus. They will be white collar workers (managers,
professionals, etc.) with expendable income. The education level will
range from some college to post-graduate work. A limited number (10%) will
come from other areas. This 10% will generally be persons who are coming
to see a particular entertainer or poetry reading. A majority of the
customers will be persons who enjoy a relaxing atmosphere, conversation
and table games.

Estimated Market Share and Sales

Based on the customer profile for Coffee Circus the following numbers were
compiled. The report used was prepared by Phoenix Real Estate using
information obtained through the Facts Report. The report was prepared
using Coffee Circus as the focal point and delineating numbers by a one,
three and five mile radius. For purposes of determining market share for
Coffee Circus, a three-mile radius was used. National statistics show that
most persons do not travel more than three miles to eat or to listen to
entertainment. The report shows that 162,908 persons live in the three
mile radius. The following is the breakdown of target customers.

Age Percent


% of Population

21-24

6.26%

25-29

7.97%

30-34

8.15%

35-39

8.03%

4049

16.67%

Total


47.08%

Income


% of Population

50,000-74,999

20.94%

35,000-49,999

20.04%

25,000-34,999

14.92%

Total


55.90%

Education


% of Population

Some college

28.76%

Associate degree

9.09%

Bachelor degree

13.39%

Graduate degree

5.54%

Total


56.78%

Occupation


% of Population

Executive

12.96%

Prof/Specialty

13.16%

Technical Support

4.67%

Administrative Support

20.12%

Total


50.91%

Formula For Market Share

The formula takes the total population and then multiplies that number by
the percentages in order of importance to the Target Customer.

Total Population × Age% × Income% × Education%
× Occupation% = Total Market

162,908×47.08%×55.90%×56.78%×50.91% = 12,393
persons

Market Share For Coffee Circus


2.2% Of Market=276 Cust./Day or 17 Cust./Hour

1.8% Of Market=230 Cust./Day or 14 Cust./Hour

1.6% Of Market=202 Cust./Day or 12 Cust./Hour

Occupancy Levels

The occupancy of Coffee Circus is 127 persons. Two different methods can
be used to determine occupancy levels.

Hourly

– If you estimate percent of occupancy on an hourly basis, the customer
rate would be 9.4% of occupancy. 12 cust/hr /127 = 9.4% occupancy per hour

Mealtime

– Typically, you will have two turnovers per meal. Based on projections
the percentages would be 23% for breakfast, 27% for lunch and 32% for
dinner.

Breakfast

– 57 cust/2 = 29 cust/127 = 23% occupancy level

Lunch

– 67 cust/2 = 34 cust/127 = 27% occupancy level

Dinner

– 79 cust/2 = 40 cust/127 = 32% occupancy level

In reality, the true occupancy rate lies somewhere in the middle. Not all
of the customers will come in during those dinner times nor will they be
spaced evenly throughout the day.

Promotion & Advertising

The advertising and promotion will take a number of avenues. First, flyers
will be distributed in the neighborhood. Ads will be taken out in all of
the Catholic church bulletins in the area: Holy Martyr, Queen of Peace and
St. Christopher’s. These ads will offer 10% off, if the parishioner
brings the bulletin with them. The restaurant is located one block from
Holy Martyr Church and school. The owner’s family attend the church
and have a son who has been a student in the school for 7 years. Special
events will be promoted with a portion of the proceeds going to the
school. Since Coffee Circus will be the first union restaurant in the
state, ads will be placed in all of the union newsletters offering a 10%
discount to anyone showing their union card. Ads will also be placed in
the target areas of the Burns’ Grocery, and the local neighborhood
newsletters. For special entertainment nights, radio and newspaper ads
will be placed. Entertainment and food critics will be given an
invitation. On opening night we will have an invitation only party, with
over 1,200 invitations being sent.

For businesses in the area, menus will be distributed and ordering will be
available by fax. A customer mailing list will be developed with a
calendar of events being mailed on a monthly basis.

Sales Tactics

Servers will always ask the customer if they want added items, i.e.
specialty coffee, soup with the sandwich, appetizers, and dessert. This
will not only increase sales for the business but will also increase the
amount of money the server makes. Most people tip according to a
percentage of the check. The higher the check the greater the tip. The
server can control their own income.

All tables also will have “table tents” or advertisements.
The tents will describe upcoming events. Also, pictures and descriptions
of items for sale, such as micro-brewed beers, desserts, etc., will be on
the tents. The menus will provide detailed descriptions of the items
available, including a section describing the different types of beers
available. For example, the chili beer.

Service/Warranty

If the customer has a complaint, everything will be done to satisfy them.
If that does not work, the customer will be given their meal free of
charge.

Competition

Chicken Little

– Northwest corner of Holgate and 37th Ave. One block north of Coffee
Circus.

Provides home-style cooking. Known for their southern style cooking.
Pleasant homey surroundings. The restaurant caters to families who want to
eat and leave. No live entertainment is provided. Their prices are
moderate with little or no variation. They are known for good quality food
and
service. Extremely clean and well managed. There is little or no product
comparison. They have become successful due to location and reputation.

Burger’s Joint

– Northwest corner of Holgate and 37th Ave.

A well-known fast food franchise with a good presence and marketing plan.
The food and prices are about the same as their competition. There is no
product comparison.

LaJolla

– Southeast corner of 37th Ave. and Holgate

Serves Mexico City style food. The atmosphere is upscale and the food
pricing is moderately high. The food is highly specialized and caters to a
certain type of clientele. There is no comparison.

Steve’s

– Northeast corner of 37th Ave. and Holgate

Serves a full course menu. The pricing is moderate, but cheaper than
Chicken Little. The quality is fair. Most persons eat there because of
pricing and because they are shopping at the store. There is very little
competition for Coffee Circus.

OPERATIONS

Goals

Keep cost of goods sold at or below 30%. Provide customers with prompt and
courteous service.

Objective

• Provide initial training for all employees
• Hold monthly employee meetings
• Have an open door policy for employee suggestions and concerns
• Implement the use of the Business Plan systems
• Purchase and use the Food Fax software package
• Have clearly defined job descriptions and duties
• Have an employee policy handbook
• Do employee reviews every six months
• Customer suggestion box
• Design kitchen and service area to be efficient

Product Distribution

The product will be distributed in the restaurant by food servers. The
food will be cooked on site, except for some of the baked goods. Some of
these, such as croissants will be purchased in the raw frozen form and
baked daily.

When a customer enters Coffee Circus they will be greeted by a hostess who
will seat them and provide them with menus. A server will greet them and
give them water. The server will inquire what they would like to drink.
The drink order will be prepared by the server. If the drink is either
beer, wine or coffee, that will be prepared by the bartender. The drink
order will be given to the bartender on a written check, which will be
rung up on the register. If the server fixed the drink, it will be rung up
on the register by the server. The server will deliver the drinks and then
take the food order if the customer is ready. The server will take the
food order, ring it up and the order will appear on the cook’s
computer screen. The cook will prepare the food, in the order the tickets
are given. The server will prepare the salads, desserts, hot and cold
soups and other items. The cook places the finished food on the window.
The server must pick the food up within two minutes. The food is placed on
the table and the server will ask if there is anything else which the
customer needs. The server will check all the drinks and replenish water,
ice tea and plain coffee. The server will ask if the customer needs
another drink. Specialty drinks are not refill items. Non-specialty drinks
are free refills. The server will familiarize the customer with the
operations of Coffee Circus. They will explain to the customer that a
number of table games are available if they wish to play. The server will
let the customer know about the reading room and present
them with a schedule of events. The customer will always be asked if they
would like dessert or an after dinner coffee. The server is responsible
for checking on the customer in a timely manner. This should be done in an
unobtrusive manner. The server will maintain the tables in a clean and
sanitary condition. Dirty dishes and plates must be removed immediately.
Condiments must be kept full and the containers clean. The server is
responsible for presenting the check, payment of the check and returning a
receipt to the customer.

The cook is responsible for cooking and preparing all dishes not prepared
by the server. The orders will appear on the computer monitor and the cook
will prepare them according to the order given. The cook and their
assistants are responsible for preparing all items in the morning such as
the soups for the day, slicing meat, making specialty items and other
dishes for the day. The assistant cooks are responsible for the prep work
of all items for the servers and the cooks. This includes stocking all
supplies, cutting cheese, fruit, salad items, ice, filling soup tureens,
etc.

Cleanliness is required above all else. The servers will keep all of their
work areas clean at all times. Spills must be cleaned immediately. After
each shift, servers will check the side work chart and have it finished
before they leave. This work will be checked by the shift supervisor. The
cooking area will be maintained in a clean and sanitary manner. All areas
will routinely be wiped down and swept. The cooks and assistants will also
have side work which must be completed before leaving. The dishwasher is
responsible for keeping the dishes washed and helping with busing the
tables if needed. The dishwasher is responsible for mopping the kitchen
floor. All employees must read and be knowledgeable of health regulations
and follow those rules. Training will be provided by Coffee Circus. Hands
must be washed on a routine basis. Smoking is allowed only in designated
areas. No smoking is allowed in any food preparation area.

The servers will be required to present a clean appearance. A uniform
consisting of an eggshell white polo shirt with Coffee Circus logo, forest
green walking shorts or long pants, black sneakers and black ankle socks.
The servers must be polite, friendly, and helpful, not only to the
customer but to the other staff as well. At no time will employees be
allowed to discriminate by remarks, actions or jokes.

Additional regulations are contained in the Employee Handbook.

Cash Register

The cash register system will be Quix 3000 Touchscreen. The built-in
system software prints hard or soft guest checks, uses single or multiple
remote printers, and reports and tracks data terminal to terminal, or
throughout the network. Produces management reports for system, terminal,
or revenue center; current and/or to-date totals for:

• Employee/cashier balance reports
• Employee tip reports
• Open and closed check reports
• Time period sales analysis
• Detailed or summarized menu item sales analysis
• Detailed or summarized sales group and category analysis

Pricing

The food price will be in the moderate range and comparable to other
coffee houses in the area. The cost will be determined by not only what
the going rate in the area is but also by the percentage of actual cost of
the food. The price will not only be competitive, but the food will be
tasty, well presented, and large portions will be served in a relaxing
atmosphere where the customer will be comfortable. The image projected by
the pricing will be that the customer will be getting a fair value for
their money; that they do not need to be rich to eat at Coffee Circus and
anyone can afford to
come in. They will be able to use the books and games. In the evening,
they will be able to listen to the live entertainment. During the day,
music will be played over the PA.

Credit terms will be offered only in the form of credit card service, such
as Visa, MasterCard and Discover. Many people who eat out prefer to pay
with credit cards, whether it is to keep track of expenditures or for a
work expense account.

The cost of the food will be based on a set percentage. Restaurants
traditionally keep food costs between 26% to 32%. Based on the type of
food to be served and the delivery system, the percentage for Coffee
Circus will be an average of 30% of the actual cost of the food. In order
to accomplish this, Food Fax software will be utilized. The software
contains the following features.

Inventory Accounting System

Calculates cost of goods, provides shelf-order inventory forms, receiving
logs, compares actual usage to average usage by item, ranks highest over
and under use items. Tracks vendors, allows look-up by name or vendor item
codes. Automatic distribution of invoice amounts to general ledger account
numbers. Purchase and transaction recap reports, inventory level control
reports, price history and fluctuation reports.

Recipe Costing and Sizing

Plate and batch recipes instantly costed as prices change. Sizing and
modeling capabilities.

Menu Analysis

Complete menu and sales analysis reporting. Evaluate menu performance, run
products by contribution. Product cost reports available by day or any
combination of days. Sales mix can be sequenced to follow
“Z” tape order for fast data entry.

Ideal Use/Perpetual Inventory

Tightest possible method of inventory control compares actual use to ideal
use by item and computes variance. Includes ability to run perpetual
inventories and track batch recipe production variances.

Bid and Purchase Order

Built-in bid pricing system allows entry of vendor bids and automatic
selection of best price available. Shopping list feature, automatic PO
creation, price history reports and more.

POS Interface

Import sales mix data directly from almost any cash register. POS system
or polling package.

Accounts Payable Interfaces

Export purchases to accounts payable system.

Suppliers

The suppliers have all been in business for a number of years and have
dependable reputations.

The Works

They will supply all of the bread products such as croissants, loaves of
bread, pastries, etc. The Works is a major supplier to restaurants in the
area.

Genevieve Pie Company

Since 1987, Genevieve Pie Company has been creating a quality line of
dessert products satisfying even the most discerning palate. One of their
best known customers is The Big Easy.

Genevieve’s is also the distributor for Verson Amos. Verson Amos
has built a reputation of manufacturing the finest products since 1980.
They will supply the cheesecakes.

Southwestern Coffee Roasters

This family owned and operated company has been roasting coffee for almost
a decade. They will supply all of the coffee, teas, and equipment. They
also provide ongoing barista training for all Coffee Circus employees at
no cost.

Lewis Business Systems

Lewis will provide the Purveyor system. For 25 years, Lewis has provided
operational solutions to the hospitality industry. Their specialized focus
on restaurants, hotels and bars has made them one of the largest dealers
of Quix systems in the country.

Powerhouse, Inc.

Powerhouse, Inc. will provide the software package to track the food
inventory and pricing. This system was explained in depth previously.

For over a decade, Powerhouse has specialized exclusively in food and
beverage management. In addition to its Food Fax software, recognized
world-wide as the industry standard, Powerhouse’s consulting and
training expertise has been utilized by trade associations, publishers,
governments and private companies to help operators reduce costs and
improve profits.

Brite Lite

Brite Lite will provide the outside signage.

Dirt Out

Dirt Out will lease the dishwashing system to Coffee Circus. The lease
includes all servicing, parts, labor, and chemicals. There is never an
added charge. Dirt Out builds, guarantees and services its dishwashers.
They provide regular and emergency service whenever you need it.

In Line

In Line has been in business for four years doing tenant improvements and
design coordination. Clients include, Tasmania Restaurants, Red Bank and
St. John’s Boats. In Line is versed in all areas of restaurant
permitting, design and regulations.

MANAGEMENT

Goal

To have a competent and knowledgeable management staff which functions as
a team.

Objectives

• Hire experienced, qualified persons
• Conduct weekly management meetings
• On-going training to include outside classes in food service,
  management, etc.
• Reviews every six months
• Performance incentives
• Encourage creativity

Organization

Coffee Circus will be operated as a Sole Proprietorship. There will be
private investors. However, these investors will be silent investors with
a payoff of investment within three years. These investments will be paid
twice-yearly in equal installments including interest.

Overall management will be the responsibility of the owner. There will be
a general manager and shift supervisors.

Proprietor

As owner, Kirby Pitt brings to Coffee Circus an extensive and varied
background. She has been General Manager for two restaurants and has been
the Dining Room Captain for a major private club.

Her most recent experience was with a non-profit agency. She was
responsible for overseeing three housing programs for the agency and a
staff of six persons. Her duties included: monthly reports to Santa Fe
Bank, City of Bradford and State Housing Trust Fund; over a $500,000
yearly budget. Ms. Pitt is competent in all areas regarding regulations
for the above mentioned organizations, and other government programs.

Also, she performed the grant writing, and was responsible for fundraising
and public speaking on behalf of the agency. She worked closely with the
Executive Director on purchases of properties for affordable rental from
Santa Fe Properties and also wrote the Sante Fe Properties monitoring
reports.

In addition, she helped case-work clients, advocated for low income
persons, performed housing counseling for persons in danger of foreclosure
and worked with union members in need of services.

She serves as a commissioner for the City of Santa Fe Human Service
Commission. She is also a member of the executive committee and the
community services committee, and serves on the advisory board for the
Oasis Family Service Center. In 1984, she was appointed by Mayor Gilda
Raye to the Southwestern Village Planning Committee and is a registered
lobbyist.

General Manager

Qualifications

This position has not been filled. The requirements of the position
require 10 years experience in restaurants, at least five of those years
in some type of supervisory position. A bachelor’s degree in hotel
and restaurant management is preferable. The candidate for this position
will be required to submit a resume and verifiable references. The
candidate will be interviewed and hired by the proprietor.

Job Description

The general manager will report directly to the owner. They will be
responsible for the overall management of the staff. They will work in
conjunction with the owner in ordering supplies, maintaining inventory,
handling customer complaints and scheduling staff. Other duties would
include ensuring staff coverage for all shifts and reports to the owner.

Shift Supervisor

Qualifications

Must have five years experience in restaurant work. At least three years
as a server. They must be at least 21 years old. They must possess a
friendly and outgoing personality and have good personal hygiene.

The candidate for this position will be required to submit a resume and
applications.

The candidate will be interviewed and hired by the proprietor and general
manager.

Job Description

They will be responsible for the oversight of the servers, bus person and
hostess on their shift. They will work under the general manager.

The shift supervisor also works in the capacity of a server and is
responsible for waiting on tables, taking the customers’ food and
drink orders and acting as cashier for their customers. They are
responsible for helping to keep the serving area and the customer areas
clean and sanitary. They are responsible for helping the assistant cook
keep the service area stocked. At the end of their shift, they will be
required to complete all side work as assigned.

Cook

Qualification

The cooks must have a minimum of five years experience, three of which
must be as a cook not an assistant. They must have at a minimum a GED or
high school diploma.

The cook will submit a resume and fill out an application. They will be
interviewed and hired by the owner and general manager.

Job Description

The cook is responsible for cooking food served in the restaurant. They
also are responsible for preparing food items in advance and seeing that
the service area is kept stocked. Their responsibility is to see that the
kitchen is kept in a clean, sanitary and working order. They oversee and
train the assistant cook.

Assistant Cook

Qualifications

The assistant cook must at a minimum have a GED or be attending school or
a training program. They must be at least 18 years of age.

Will be required to submit an application. Will be interviewed and hired
by the cook, general manager and owner.

Job Description

The assistant cook is responsible for assisting the cook in his duties.
He/she is responsible for helping to keep the kitchen clean and sanitary.
When needed will help with dishwashing duties. He/she is responsible for
keeping the service area stocked.

Server

Qualification

The servers must have at a minimum a GED or be attending school or a
training program and one year’s experience working in a restaurant.
They must be at least 21 years of age. They must possess a friendly and
outgoing personality and have good personal hygiene.

Will be required to submit an application. Will be interviewed and hired
by the shift supervisor, general manager and owner.

Job Description

The server is responsible for waiting on tables, taking the
customers’ food and drink orders and acting as cashier for their
customers. They are responsible for helping to keep the serving area and
the customer areas clean and sanitary. They are responsible for helping
the assistant cook keep the service area stocked. At the end of their
shift, they will be required to complete all side work as assigned.

Hostess

Qualifications

The hostess must have at a minimum a GED or be attended school or a
training program. She must be at least 18 years of age and must possess a
friendly and outgoing personality and have good personal hygiene.

Will be required to submit an application. Will be interviewed and hired
by the shift supervisor, general manager and owner.

Job Description

The hostess is responsible for greeting customers as they arrive at the
restaurant and seating them. She is required to take reservations and
answer the phones. Also to assist with busing tables or assisting the
servers when available. Duties include keeping the lobby area clean.

Bus Person

Qualifications

The bus person must be attending school or a training program, must be at
least 16 years of age and have good personal hygiene.

Will be required to submit an application. Will be interviewed and hired
by the shift supervisor, general manager and owner.

Job Description

The bus person is responsible for keeping dirty dishes off the tables.
When customers leave they must clean the table and prepare it for future
customers. They are to help the servers with getting non-alcoholic drinks.
They also are responsible for helping the servers. They are responsible
for helping the assistant cook keep the service area stocked. At the end
of their shift, they will be required to complete all side work as
assigned.

FINANCIAL

To maintain costs of goods sold to 30% or less. To increase sales within
an 18 month period to 3% of the target market. To maintain financial
records according to GAAP.

Goals

Objectives

• Purchase and use Food Fax software
• Train employees proper food handling to prevent waste
• Maintain a weight and portioning system for food
• Check for quality of food from suppliers when food is delivered
• Maintain storage equipment in proper working condition
• Hire an experienced and qualified accounting firm
• Contract out payroll
• Purchase a personnel computer
• Utilize Business Plan equipment Use Accounting software

Financing Plan and Exit Strategy

The total needed capital for Coffee Circus is $99,000. Owner’s cash
contribution is $10,000 and other investors and family members is $16,100.
The amount needed in loans is $30,800 for equipment, $20,000 for
remodeling, and $23,000 for operations. This is at total of $73,800.

An acceptable exit strategy for Coffee Circus is to sell the business to
another company. The restaurant business is booming in Santa Fe.

The least desirable plan would be to sell the equipment, furniture and
other assets. The remaining balance would have to be renegotiated and a
payment plan worked out.

Advertising Schedule

Month 1


Month 2


Month 3


Month 4


Month 5


Month 6


Total

Newspaper

$114.20

$114.20

$114.20

$114.20

$114.20

$114.20

$685.20

Yellow Pages

$98.40

$98.40

$98.40

$98.40

$98.40

$98.40

$590.40

Other

$500.00

$500.00

$500.00

$500.00

$500.00

$500.00

$3,000.00

Fliers, Newsletters, Church Bulletins

Six Month Total


$4,275.60

Cost Analysis

Start-Up Expenses

Owner’s Initial cash contribution

$10,000

Equipment Loan

$30,800

Remodeling Loan

$20,000

Operating Loan

$23,000

Investors

$16,100

Total available cash


$99,900


Total Cost of Capital Equipment

Beginning Inventory

$8,000

Building Lease

$11,238

Equipment

$30,800

Legal Fees

$500

Accounting fees

$1,000

Licenses & Permits

$12,000

Remodeling work

$20,000

Deposits (public utilities, etc.)

$500

Adverting (grand opening, etc.)

$1,000

Promotions (door prizes, etc.)

$1,000

Other

$1,000

Total Start-up Expenses


$87,038


Beginning Cash Balance


$12,862

Capital Equipment

Equipment


Cost

Large Kitchen

$9,750

Small Kitchen

$3,000

Tables

$1,000

Chairs

$3,100

Couches, Chairs

$2,500

20 Lamps

$500

10 End Tables

$300

Curtains

$500

Braided Rugs

$250

Sound System

$1,000

Space Planner

$2,000

POS System-PC

$2,000

Software

$300

Dishes

$1,000

Signage

$3,000

Uniform Shirts

$600

Total Cost Capital Equipment


$30,800

Mortgage Schedule

Principal

73,800.00

Interest

10.750%

# of Periods

120

Yearly Payment

12,074.15

Monthly Payment

1,006.18

Mth#


Mthly Pay


Int.


Principal


Rem. Princ.

$73,800.00

1

$1,006.18

$661.13

$345.05

$73,454.95

2

$1,006.18

$658.03

$348.15

$73,106.80

3

$1,006.18

$654.92

$351.26

$72,755.54

4

$1,006.18

$651.77

$354.41

$72,401.12

5

$1,006.18

$648.59

$357.59

$72,043.54

6

$1,006.18

$645.39

$360.79

$71,682.75

7

$1,006.18

$642.16

$364.02

$71,318.73

8

$1,006.18

$638.90

$367.28

$70,951.44

9

$1,006.18

$635.61

$370.57

$70,580.87

10

$1,006.18

$632.29

$373.89

$70,206.98

11

$1,006.18

$628.94

$377.24

$69,829.74

12

$1,006.18

$625.56

$380.62

$69,449.12

Total


$7,723.27


$4,350.88

Projected Income Statement For Year Ending December 31, 1996


Jan ’96


Feb ’96


Mar ’96


Apr ’96


May ’96


Jun ’96


Sales


$52,538


$54,639


$56,825


$59,098


$60,280


$61,486

Cost of Sales

$15,761

$16,392

$17,048

$17,729

$18,084

$18,446

Gross Profit

$36,777

$38,247

$39,778

$41,369

$42,196

$43,040

Operating Expenses

Owner’s Salary

$3,333

$3,333

$3,333

$3,333

$3,333

$3,333

Salaries, Wages

$13,002

$13,002

$13,002

$13,002

$13,002

$13,002

ERE

$6,270

$6,270

$6,270

$6,270

$6,270

$6,270

Advertising

$713

$713

$713

$713

$713

$713

Legal & Acounting

$200

$208

$216

$225

$234

$243

Supplies

$300

$312

$324

$337

$351

$365

Dishwasher Lease

$131

$131

$131

$131

$131

$131

Live Entertainment

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

Rent & Lease

$3,746

$3,746

$3,746

Repairs & Maint.

$500

$500

$500

$500

$500

$500

Utilities

$2,441

$2,523

$2,608

$2,697

$2,789

$2,885

Insurance

$65

$65

$65

$65

$65

$65

Taxes & Licenses

$111

$1,156

$1,201

$1,250

$1,275

$1,300

Interest

$644

$644

$644

$644

$644

$644

Miscellaneous

$300

$312

$324

$337

$351

$365

Depreciation

$500

$500

$500

$500

$500

$500

Ammortization

$333

$333

$333

$333

$333

$333

Total Operating Expenses


$32,343


$33,502


$33,664


$37,583


$37,737


$37,895


Operating Profits


$4,433


$4,745


$6,113


$3,786


$4,459


$5,145

Jul ’96


Aug ’96


Sept ’96


Oct ’96


Nov ’96


Dec ’96


Totals Periods


$62,716


$63,970


$65,249


$66,554


$67,885


$69,243


$740,483


100.00%

$18,815

$19,191

$19,575

$19,966

$20,366

$20,773

$222,145

30.00%

$43,901

$44,779

$45,674

$46,588

$47,520

$48,470

$518,338

70.00%

$333

$3,333

$3,333

$3,333

$3,333

$3,333

$39,9%

5.40%

$13,390

$13,390

$13,390

$13,390

$13,390

$13,390

$158,352

21.38%

$6,313

$6,313

$6,313

$6,313

$6,313

$6,313

$75,498

10.20%

$713

$713

$713

$713

$827

$827

$8,784

1.19%

$253

$263

$274

$285

$296

$308

$3,005

0.41%

$380

$395

$411

$427

$444

$462

$4,508

0.61%

$131

$131

$131

$131

$131

$131

$1,572

0.21%

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$42,000

5.67%

$3,746

$3,746

$3,746

$3,746

$3,746

$3,746

$33,714

4.55%

$500

$500

$500

$500

$500

$500

$6,000

0.81%

$2,985

$3,089

$3,197

$3,309

$3,426

$3,547

$35,496

4.79%

$65

$65

$65

$65

$65

$65

$780

0.11%

$1,326

$1,353

$1,380

$1,408

$1,436

$1,464

$14,660

1.98%

$644

$644

$644

$644

$644

$644

$7,728

1.04%

$380

$395

$411

$427

$444

$462

$4,508

0.61%

$500

$500

$500

$500

$500

$500

$500

0.07%

$333

$333

$333

$333

$333

$333

$333

0.04%

$38,492


$38,663


$38,841


$39,024


$39,328


$39,525


$437,434


59.07%


$5,409


$6,116


$6,833


$7,564


$8,192


$8,945


$80,904


10.93%

Projected Statement of Cash Flow For Year Ending December 31, 1996


Jan ’96


Feb’96


Mar ’96


Apr ’96


May ’96


Jun ’96

Revenues

$52,538

$54,639

$56,825

$59,098

$60,280

$61,486

COGS

$15,761

$16,392

$17,048

$17,729

$18,084

$18,446

Operating Expenses

$32,343

$33,502

$33,664

$37,583

$37,737

$37,895

Cash Payments for Income Taxes

$0

$0

$0

$0

$0

$0

Cash Flow (Net Cash From Operations)

$4,433

$4,745

$6,113

$3,786

$4,459

$5,145

Cash Interest Payments

$644

$644

$644

$644

$644

$644

Cash After Interest Payments

$3,789

$4,101

$5,469

$3,142

$3,815

$4,501

Depreciation

$500

$500

$500

$500

$500

$500

Chgs Short-term Debt

$0

$0

$0

$0

$0

$0

Chgs Long-term Debt

$362

$362

$362

$362

$362

$362

Owner’s Draw

$0

$0

$3,000

$3,000

$3,000

$3,000

Net Change in Cash

$3,927

$4,239

$2,607

$280

$953

$1,639

Beginning Cash

$12,862

$16,789

$21,029

$23,636

$23,916

$24,869

Net Change In Cash

$3,927

$4,239

$2,607

$280

$953

$1,639

Ending Cash

$16,789

$21,029

$23,636

$23,916

$24,869

$26,508

Projected Income Statement For Year Ending December 31, 1997


Jan ’96


Feb’96


Mar ’96


Apr ’96


May ’96


Jun ’96


Jul ’96

Sales

$71,525

$72,240

$72,962

$72,233

$71,510

$70,795

$70,087

Cost of Sales

$21,458

$21,672

$21,889

$21,670

$21,453

$21,239

$21,026

Gross Profit

$50,068

$50,568

$51,073

$50,563

$50,057

$49,557

$49,061

Operating Expenses

Owner’s Salary

$3,333

$3,333

$3,333

$3,333

$3,333

$3,333

$3,333

Salaries, Wages

$16,944

$16,944

$16,944

$17,163

$17,163

$17,163

$17,509

ERE

$7,692

$7,692

$7,692

$7,717

$7,717

$7,717

$7,755

Advertising

$713

$713

$713

$713

$713

$713

$713

Legal & Accounting

$200

$200

$200

$200

$200

$200

$200

Supplies

$466

$471

$476

$471

$466

$462

$457

Dishwasher Lease

$131

$131

$131

$131

$131

$131

$131

Live Entertainment

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

Rent & Lease

$3,746

$3,746

$3,746

$3,746

$3,746

$3,746

$3,746

Repairs & Maint.

$500

$500

$500

$500

$500

$500

$500

Utilities

$3,617

$3,649

$3,682

$3,649

$3,617

$3,585

$3,553

Insurance

$72

$72

$72

$72

$72

$72

$72

Taxes & Licenses

$8,513

$1,528

$1,543

$1,528

$1,512

$1,497

$1,482

Interest

$644

$644

$644

$644

$644

$644

$644

Miscellaneous

$466

$471

$476

$471

$466

$462

$457

Depreciation

$500

$500

$500

$500

$500

$500

$500

Ammortization

$333

$333

$333

$333

$333

$333

$333

Total Oper. Exp.


$51,370


$44,427


$44,485


$44,671


$44,613


$44,558


$44,885


Operating Profits


($1,303)


$6,141


$6,588


$5,892


$5,444


$4,999


$4,176

Jul ’96


Aug ’96


Sept ’96


Oct ’96


Nov ’96


Dec ’96

$62,716

$63,970

$65,249

$66,554

$67,885

$69,243

$18,815

$19,191

$19,575

$19,966

$20,366

$20,773

$38,492

$38,663

$38,841

$39,024

$39,328

$39,525

$0

$0

$0

$0

$0

$0

$5,409

$6,116

$6,833

$7,564

$8,192

$8,945

$644

$644

$644

$644

$644

$644

$4,765

$5,472

$6,189

$6,920

$7,548

$8,301

$500

$500

$500

$500

$500

$500

$0

$0

$0

$0

$0

$0

$362

$362

$362

$362

$362

$362

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$1,903

$2,610

$3,327

$4,058

$4,686

$5,439

$26,508

$28,411

$31,021

$34,348

$38,406

$43,092

$1,903

$2,610

$3,327

$4,058

$4,686

$5,439

$28,411

$31,021

$34,348

$38,406

$43,092

$48,531

Aug ’96


Sept ’96


Oct ’96


Nov ’96


Dec ’96


Total Periods

$69,386

$70,744

$72,190

$73,634

$75,106

$862,412

100.00%

$20,816

$21,223

$21,657

$22,090

$22,532

$258,724

30.00%

$48,570

$49,521

$50,533

$51,544

$52,574

$603,688

70.00%

$3,333

$3,333

$3,333

$3,333

$3,333

$39,996

4.64%

$17,509

$17,509

$17,682

$17,682

$17,682

$207,894

24.11%

$7,755

$7,755

$7,774

$7,774

$7,774

$92,814

10.76%

$713

$713

$713

$827

$827

$8,784

1.02%

$200

$200

$200

$200

$200

$2,400

0.28%

$453

$457

$462

$466

$471

$5,578

0.65%

$131

$131

$131

$131

$131

$1,572

0.18%

$3,500

$3,500

$3,500

$3,500

$3,500

$42,000

4.87%

$3,746

$3,746

$3,746

$3,746

$3,746

$44,952

5.21%

$500

$500

$500

$500

$500

$6,000

0.70%

$3,522

$3,553

$3,584

$3,616

$3,648

$43,275

5.02%

$72

$72

$72

$72

$72

$864

0.10%

$1,468

$1,497

$1,527

$1,557

$1,589

$25,241

2.93%

$644

$644

$644

$644

$644

$7,728

0.90%

$453

$457

$462

$466

$471

$5,578

0.65%

$500

$500

$500

$500

$500

$500

0.06%

$333

$333

$333

$333

$333

$333

0.04%

$44,832


$44,900


$45,163


$45,347


$45,421


$535,509


62.09%


$3,738


$4,621


$5,370


$6,197


$7,153


$68,179


7.91%

Projected Statement of Cash Flow Year Ending December 31, 1997


Jan ’96


Feb’96


Mar ’96


Apr ’96


May ’96


Jun ’96

Revenues

$71,525

$72,240

$72,962

$72,233

$71,510

$70,795

COGS

$21,458

$21,672

$21,889

$21,670

$21,453

$21,239

Operating Expenses

$51,370

$44,427

$44,485

$44,671

$44,613

$44,558

Cash Payments for Income Taxes

$0

$0

$0

$0

$0

$0

Cash Flow

($1,303)

$6,141

$6,588

$5,892

$5,444

$4,999

Cash Interest Payments

$644

$644

$644

$644

$644

$644

Cash After Interest Payments

($1,947)

$5,497

$5,944

$5,248

$4,800

$4,355

Depreciation

$500

$500

$500

$500

$500

$500

Chgs Short-term Debt

$0

$0

$0

$0

$0

$0

Chgs Long-term Debt

$362

$362

$362

$362

$362

$362

Owner’s Draw

$0

$0

$3,000

$3,000

$3,000

$3,000

Net Change in Cash

($1,809)

$5,635

$3,082

$2,386

$1,938

$1,493

Beginning Cash

$48,531

$46,723

$52,358

$55,440

$57,826

$59,764

Net Change in Cash

($1,809)

$5,635

$3,082

$2,386

$1,938

$1,493

Ending Cash


$46,723


$52,358


$55,440


$57,826


$59,764


$61,257

Jul ’96


Aug ’96


Sept ’96


Oct ’96


Nov’96


Dec ’96

$70,087

$69,386

$70,744

$72,190

$73,634

$75,106

$21,026

$20,816

$21,223

$21,657

$22,090

$22,532

$44,885

$44,832

$44,900

$45,163

$45,347

$45,421

$0

$0

$0

$0

$0

$0

$4,176

$3,738

$4,621

$5,370

$6,197

$7,153

$644

$644

$644

$644

$644

$644

$3,532

$3,094

$3,977

$4,726

$5,553

$6,509

$500

$500

$500

$500

$500

$500

$0

$0

$0

$0

$0

$0

$362

$362

$362

$362

$362

$362

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$670

$232

$1,115

$1,864

$2,691

$3,647

$61,257

$61,926

$62,159

$63,273

$65,137

$67,828

$670

$232

$1,115

$1,864

$2,691

$3,647

$61,926


$62,159


$63,273


$65,137


$67,828


$71,475