GoHealthy Restaurant

Executive Summary

GoHealthy is a planned restaurant which will be started soon and will be located in New York. The restaurant aims at providing the customers with healthy food that will be able to change their current eating habits. The current eating habits of the customers’ accounts for the high number of obesity cases experience in the region. From the NHANESS publication, over 65% of the American have obesity. The people desire to eat healthy and low-calorie food contributes significantly to the start of the business has the need to enjoy a long healthy life arises.

The presentation will put more emphasis on the business start-up with the capital of $50,00. An introduction to the industry will be provided in the paper, organization marketing plan as well as profitability projection of the business. Similarly, the break-even analysis of the company is as well provided. The presentation also put more emphasis on the business expansion internationally in its three years of operations putting into consideration debt financing, the process of venture capital as well as raising its capital through stock.

The restaurant will have the responsibility of providing the customers with guidelines as well as knowledge regarding the type of food the business offers. GoHealthy will give the consumers dieting schedule which is expected to be flexible and easy to follow. The program will as well promote the sale of organic food to consumers.

Information regarding the industry

In the united states, restaurant industry made part of some of the most significant and fast-growing industries. The sales from the restaurant are expected to reach $800 million according to National Restaurant Association in the united states. In the next ten years to come, the industry is expected to create over 1.6 million job opportunities to American citizens as the demand for organic food products increase.

GoHealthy marketing plan

The business will market it the restaurant products through social media networks, for example, Facebook, Twitter, YouTube as well as Instagram. The main reason why the firm will use social media networks is that most youths use these platforms widely and they form the primarily targeted customers. The use of television, radio and print media will as well be utilized in the in marketing the company products. The company will have published its products also in the newspapers and banners this is to give the restaurant more exposure. Banners will be placed in more extensive and famous malls in the city for a large population to have access to the restaurant.

Assumptions and projected income statement

A net sale of 100,000$ is estimated to be achieved by the GoHealthy restaurant during its first year of operation. The net sale is expected to increase by 20% annually as the firm will extend space and facilities during the following years of service. The cost of a good is projected to remain at 40% during the second and third year of the restaurant operations.

The expenditure as well as interiors are projected to be around $18.000 including the kitchen utensils and crockery. Leasing of the building where the firm operates is estimated to be $30,000 monthly, and the organization will pay it for three months. The restaurant is expected to experience losses amounting to $44200 after which it will start earning a profit a during its second year of operation in the market. The annual net income in its second and third year of service is estimated to be $6,000 and $164600 respectively. Depreciation related expenses are also expected to rise by 10% monthly.

Analysis of Competitors

There are many competitors in the market where the firm plans to operate. Based on the demand and customers’ awareness most of the food chain in the environment have started providing to consumers with healthy and organic food. The fresh natural grocery sellers have increased rapidly in the United States, for instance, the Walmart and McDonalds. Other organizations such as Wendy have begun producing organic food to customers, and this has made the competition to be stiff.

Proposed Funding Schedule

$200,000 is required for starting the restaurant and making it operational. The restaurant promoters will contribute $100,000 whereas the remaining portion will from bank loans. The finance that will be required during the third and fourth year of restaurant operation will be from the business profit accumulated and loans from the bank.

Break-Even Analysis

During the initial years of business operation, the business will experience losses. The loses during its initial years of operation are estimated to be around $44.2 thousand. However, from the business projection, it will gain momentum in the following years of services as the sales are expected a rise by 20%. According to the projection, the business net income will be around $6000 annually. This suggests that the profit the restaurant gains will increase with a more significant percentage in its third and fourth functional years hence the break-even point will be achieved by the restaurant.

Expansion After Three Years and Corporate Tax

The restaurant will be in a position of starting its branches in other countries after operating for three years. Starting a restaurant in Canada is the significant preference of the company in working internationally. Most people in Canada are facing obesity health problem based on their habits for eating. Canadians are also changing their eating habits as they continue to move towards the healthy foods for healthy leaving.

Debt. Financing Versus Company Stocks

Issuing of common stock and debt financing forms two sources used by various corporations to arrange their capital appropriately. Debt financing always attracts interest expense this is the advantage that conventional stock has over debt financing since the interest expense is a fixed expenditure. When the capital has been sourced through issuing of stock, then such liability will not be available. The company stockholders are paid using dividend which makes part of the profit realized by the company

Venture Capital Process

Capital financing of venture implies the funding supported by the private equity in the form of seed funding during early stages of the business development. The idea of venture capital process is useful in business with high potential or institutions that have undergone high growth. The funding takes place in the form of family funding but is the funding type works where profit gained, and growth rate of the business is high. According to Iskold, (2015), “Venture capitalists are looking to deploy millions of dollars, and they are looking for multiple times return on that capital.” In the case of a restaurant, the venture capital process is highly recommended since the profit will be increasing rapidly immediately the break heaven point is reached by the business.

References

Gagliardi, N. (2015). Consumers Want Healthy Foods–And Will Pay More for Them

Iskold, A. (2015). 8 Things You Need to Know About Raising Venture Capital.

McKinley, R. (2016). Celluoid and Silicon Ceilings: Undeinvestment in Women Directors and Entrepreneurs. Duke J. Gender L. & Pol’y, 24, 89.

Murphy, T. (2017). Playing to a New Crowd: How Congress Could Break the Startup Status Quo by Raising the Cap on the Job Act’s Crowdfunding Exemption. BCL Rev., 58, 775.

Murphy, T. (2017). Playing to a New Crowd: How Congress Could Break the Startup Status Quo by Raising the Cap on the Job Act’s Crowdfunding Exemption. BCL Rev., 58, 775.