Business Plan - Millenium Restaurant

I. BUSINESS DESCRIPTION

I.1. BUSINESS IDEA

Throughout Hedon restaurant, Millennium has been providing catering services for approximately 6 years. During this time, following the impeccable quality of its services, the restaurant has won a deserved reputation and a comfortable market share. Quality of supply and affordable prices, however, attract a large number of consumers in the western part of Bucharest. Currently, the service capacity of the restaurant is used 75%.

Based on knowledge gained, past successes and type of services, future business strategy will be a qualitative differentiation to offer competition. Although there are many places competing with lower prices, particularly for attracting and maintaining the target customers of the company concerned, this strategy proved to be most efficient. The 6 years of experience and success base the good choice for this strategy.

I.2 THE COMPANY

Currently, the company has a capital of 622,000,000 lei, represented by a total of 6,200 shares worth 100,000 lei/share. Funding is made predominantly from own sources, the date for the business plan funding structure of the business including the 80% equity and 20% of current liabilities to suppliers, shareholders and state institutions. At this point, Millennium reinforced its image and market position, the turnover of 2001 reached the record level of about 610,000 USD (17,400 million lei). The current structure of the monthly turnover is as follows:

Monthly Turnover Structure Percentage Value (lei) Average No. Of Customers (daily)

Catering 25 362,000,000 172

Direct Services 75 1,087,500,000 290

Total 100 1,450,000,000 462

The 172 customers served daily by the catering department are generated by orders of 15 companies and the 290 direct customers of the restaurant translate into a daily average of 10 clients/table (at a restaurant capacity of 30 tables - approximately 120 seats).

The objective is to fully meet customer gastronomically requirements, given that people's concern for a healthy and nutritious diet has been increasing in recent years - according to market studies conducted by the monitoring agency of consumer trends in 2001.

The restaurant was able to attract and satisfy the demands of new customers through culinary variety and the range of drink products available. The current structure of supply can be traced in the following table:

Variety Approximate no. of Varieties Percentage

Traditional culinary products 150 50

International Cuisine 70 30

Drinks 70 20

There is an increasing consumer interest in the culinary specialties belonging to international cuisine, especially from Italian cuisine, French and Asian. Except for the Asian cuisine, the company currently has personnel to fully meet these consumer trends.

There are two types of customer service:

- Directly - one of the 30 tables in the restaurant;

- By delivering at home or at the office.

Hedon restaurant has a great commercial opening, located near the intersection of streets and semicircular arches, on the ground floor of an apartment building recently developed. The restaurant is situated across the street from Herastrau Park; therefore Hedon enjoys a place near high traffic and the view offered by the park vegetation. It is also within an easily accessible area in the vicinity of Business Town - an important business centre in the western half of the city.

Catering services have been and will always be a permeable business, easily emulated and supported by open competition. Therefore the risk of bankruptcy is high enough. In this activity, influences arising from the political system, macroeconomic policies and legal system are not important. What matters most are the management skills to anticipate and perceive market trends to meet consumer needs and make them loyal. After a good period of time that there was a general preference for fast food restaurants, there is a tendency reconsideration of traditional restaurants. Still, fast-foods remain young and modest-income people favourite, according to market demand.

The new restaurant will be opened in the western part of town, in a building which has already been paid an advance of about 11% (14,000 USD). The building where the project will materialize requires renovations, improvements and outfitting. This work will be conducted to enhance the strength and structure the necessary repairs will be made. Special attention will be paid to the utility, superior finishes and decorative elements - glass windows, panelling of precious wood, indirect lighting, air conditioning, indoor artificial waterfall, etc The precinct will include a dining room (27 tables), space booths (3 tables), wardrobe, and dressing rooms for employees, bathrooms, kitchen, a warehouse and head office of the restaurant. The restaurant will have all necessary facilities: furniture, kitchen equipment, tableware. The total amount of accommodation and facilities will be 190,000 USD: