Business Plan for Armadillo Plates

This document is a comprehensive business plan for Armadillo Plates, a traditional style restaurant outlet in Adelaide. It includes information about the business, market research, future plans, and financial review. The document also provides insights into the target market, competitors, and marketing strategies.

Running head: BUSINESS PLAN
Business Plan
Name of the Student
Name of the University
Authors Note
Course ID

1BUSINESS PLAN
Table of Contents
Part A:........................................................................................................................................4
1: Summary:...............................................................................................................................4
The Business:.........................................................................................................................4
The Market:............................................................................................................................4
The Future:.............................................................................................................................4
The Finance:...........................................................................................................................4
2: The Business:.........................................................................................................................5
Business details:.....................................................................................................................5
Registration details:................................................................................................................5
Business premises:.................................................................................................................5
Organizational Chart:.............................................................................................................5
Management and Ownership:................................................................................................6
Key personnel:.......................................................................................................................6
Products/Services:..................................................................................................................7
Innovation:.............................................................................................................................7
Insurance:...............................................................................................................................8
Risk Management:.................................................................................................................8
Legal considerations:.............................................................................................................8
Operations:.............................................................................................................................8
Sustainability plan:.................................................................................................................9

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3: The Market:..........................................................................................................................10
Market research:...................................................................................................................10
Market Targets:....................................................................................................................10
Industry Analysis:................................................................................................................11
Your Customers:..................................................................................................................11
SWOT Analysis:..................................................................................................................12
Your Competitors:................................................................................................................12
Advertisement and Sales:.....................................................................................................13
4: The Future:...........................................................................................................................13
Vision Statement:.................................................................................................................13
Mission Statement................................................................................................................13
Goals/Objectives:.................................................................................................................13
Action Plan:..........................................................................................................................14
5: The Finance:.........................................................................................................................14
Key assumptions & Financial review:.................................................................................14
Assumptions:........................................................................................................................14
Start Up Costs:.....................................................................................................................15
Balance Sheet forecast:........................................................................................................17
Profit and loss forecast:........................................................................................................18
Expected Cash flow:............................................................................................................19
Part B:.......................................................................................................................................20

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Answer to 1:.............................................................................................................................20
Answer to 2:.............................................................................................................................20
Answer to 3:.............................................................................................................................20
Answer to 4:.............................................................................................................................21
Answer to 5:.............................................................................................................................21
Answer to 6:.............................................................................................................................21
References:...............................................................................................................................22

4BUSINESS PLAN
Part A:
1: Summary:
The Business:
Armadillo Plates would be the nearby owned traditional style restaurant outlet that
would be positioning itself as the domestically franchise all through its creativity approach
towards the company’s image. Armadillo Plates would be providing a combination of
excellent value pricing food inside the fun packaging atmosphere.
The Market:
In the present day highly competitive market, it has become very difficult to
differentiate the restaurant outlets from one another. Adelaide, a city state of Australia is
presently becoming the metropolis for new economic growth (Lounsbury et al. 2019). With
greater than 12 million visitors on an annual basis particularly from the Asia-pacific nations,
Australia’s restaurant sector presently offers plenty of opportunity.
The Future:
The main goal of the Armadillo Plates is to currently start with one outlet however
upon gaining success it would look forward to add one more outlet in order to strive in the
local restaurant industry.
The Finance:
Armadillo Plates would be privately held by the owners. Presently, the company will
operate under the sole proprietorship with the owner’s contribution of $100,000 and a bank
loan of $100,000 would be obtained to fund business operations.

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2: The Business:
Business details:
Armadillo Plates would be located at the 78 Penfold RD, in Adelaide. The restaurant
would be entirely owned and operated by the proprietor with wide variety of home style
classic foods ranging from mashed potatoes to patty meats and pot roasts to vanilla ice-
creams.
Registration details:
The registration details include the following;
a. Proof of possession of premises (Rental Agreement)
b. Certification of Incorporation
c. Health NOC (No-Objection Certificate)
d. Australian Business Number (ABN)
Business premises:
The business premises would be located at West Roads Shopping Center with a 3,400
square foot premises. The restaurant would be located at the major traffic areas of Penfold
RD.
Organizational Chart:
The organization chart of Armadillo Plates represents the individual working
employees that forms the part of restaurant staff together with owners and managers.

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Figure 1: Figure demonstrating Organization Chart
(Source: As Created by Author)
Management and Ownership:
The proprietor would practice a strong management process to implement control
over the costs and assure the quality of foods. The management of the restaurant would
include the daily order guide, weekly inventory guide and daily tracking of inventory to make
sure that designated products are accounted appropriately.
Key personnel:
Armadillo Plates anticipates to hire 20 employees. An effective interview procedure
would be developed to recruit the staff with highly qualified personnel for each position.

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Positions No. Of Employees
General manager 1
Ass Manager 1
Cashier 1
Line Cooks 3
Prep Cooks 2
Service Staffs 5
Dishwashers 2
Accountant 1
Sales Agent 1
Catering Employees 3
Total Employees 20
Products/Services:
The key products of Armadillo Plates are as follows;
a. Broasted Chicken
b. Pot Roasts
c. Pork Chops
d. Hamburgers
e. Pesto mayo
f. Belgian fries
g. Korean BBQ
h. Garlic Dip
i. Italian sodas
j. Fresin Fries
Innovation:
The innovation of Armadillo Plates would include the signature sauces from
Indonesia. The business would also look forward to introduce innovative packaging that
would include the single cone with the cup that would reserve for dipping sauce.

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Insurance:
Armadillo Plates would insure its property coverage to assure uninterrupted business
operations. A general commercial general liability insurance would be taken by the company
to cover its assets on the premises (Piperopoulos 2016).
Risk Management:
To help the success of Armadillo Plates, the owners has recognized the risk management
strategies of doing their business. The risk management strategies are as follows;
a. Property protection: This strategy includes the combination of commercial cooking
operations. The owners would implement appropriate measures to protect the property
from malfunctions of HVAC (Heating, ventilation and air conditions).
b. Facility equipment and building system: This would include the optimum
maintenance and servicing of processing and refrigeration system that are critical to
operations and food inventory.
c. Employer liability- health and safety: The health, safety and welfare act would be
implemented that would require the employer to perform risk assessment of the
workplace routinely to help in mitigating risks that would harm employees.
Legal considerations:
Armadillo Plates would be organized as the sole proprietorship business that would be
entirely owned and functioned by the owner. Armadillo Plates will be registered under the
Australian Business Register.
Operations:
The restaurant will be operating seven days a week to offer local patrons with lunch
and dinner. The business operation schedule would be written in a way that it would allow to
increase or decrease the hourly labour based on the sales volume for maintaining consistency

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with cost. The restaurant would be open for seven days a week with the working hours given
below;
Sustainability plan:
The below stated are the three stage of sustainability that would be followed at Armadillo
Plates;
a. Improving efficiency: Energy efficient water heating would be followed to help
improving the efficiency on saving the future bills.
b. Waste reduction: To be successful Armadillo Plates would implement waste
reduction strategies (Storey 2016). This includes recycling and composting programs
to improve waste reduction.
c. Sustainable buying habits: The sustainable buying habits would include the
purchase decision from the locally grown source ingredients.

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Figure 2: Sustainability Plan
(Source: As Created by Author)
3: The Market:
Market research:
As per the recent public research 80% of the patrons have been interviewed and they
have liked the traditional meal for lunch and dinner. There are customers that have preferred
very much or loved traditional foods (Burns 2016). As per survey majority of the customers
prefer strolling around shopping district and require quick bite to accommodate their
activities. The white collars workers have preferred chicken, hamburger, pizza and fast food
for their vicinity. The survey reveals that eating out is still the common habit of life for the
patrons.
Market Targets:
The Armadillo Plates aims to meet the demand of bulk of teenagers and youngsters as
well as it would target families. The primary strategy is to target the age group of 15 to 25
Improving
Efficiency
Waste
reduction
Sustainable
buying
habits

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years where brand creation efforts would take place (Burns and Dewhurst 2016). The
secondary target customers would include the age group of 25 and 37 years that are heavy
restaurant users group.
Industry Analysis:
The industry analysis is completely based on the Standard Industry Code. The
Australian industry consists of the establishment that are mainly involved in offering food
services to the patrons that order and liked to be served while seated. The restaurant industry
demographics, customer tastes and personal income drive the demand (Lipset 2018). The
larger companies have the advantage in purchasing, financing and marketing. The industry
shows that the average annual sales ranges $860,000 for the restaurants.
Mc Donalds YUM Brands Olive Gardens Red lobster
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
45000000
0%
10%
20%
30%
40%
50%
60%
70%$42,240,000.00
$11,520,000.00
$640,000.00
$9,600,000.00
Industry Participants
Figure 3: Industry Analysis
(Source: As Created by Author)
Your Customers:
The customers include;
a. Office goers

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b. Shopping patrons
c. Teenagers
d. Local resident families
SWOT Analysis:
Strength:
a. Prime location with easy access
b. Exceptional staff attitude with combined 15 years of experience
c. Experience of owner in catering industry
Weakness:
a. Tighter margins would provide little rooms for error
b. Retraining and recruiting quality employees
Opportunities:
a. Less barrier for entry
b. Providing additional catering services
Threats:
a. Increasing operational costs
b. Building and maintaining volume of sales
Your Competitors:
The following are the competitors located inside the 5-mile radius
a. Applebee’s Cabana: It is chain of restaurant that provide food at standard fare.
b. Hardy Restaurants: Full service family restaurant established since 2000 and prices
ranges from $8.00 to $35.00.

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c. Chili’s: Food choices varying from lower prices of 8.00 to - $21.00.
Advertisement and Sales:
Word of mouth: The business has ready database for its customers that would remain
dependent on attracting new customers.
Direct mailing: Bulky mailing to attract the potential customers.
Newspaper Advertisement: The company would also advertise with the local newspaper to
create awareness among the customers.
4: The Future:
Vision Statement:
a. The company aims to offer speciality selection that would include lighter options
salads and sausages as well as smaller portion of the food menu for children.
b. The company following a successful five-year operation would look to open another
outlet within a range of five kilometre of its current business premises.
Mission Statement
The mission of Armadillo Plates is to offer its customers with unique relaxing dining
experience that is identical to home. It would strive to attain its goals by offering menu items
incorporating the quality ingredients at the reasonable price.
Goals/Objectives:
The main business objectives include the following;
a. Achieving the cover ratio of 1.00X for each serving of lunch and dinner
b. To attain the prime cost ratios of less than 65%
c. To establish the existence as the successful local food restaurant and attain the market
share in the domestic restaurant industry.

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Action Plan:
Action Plan Start Date End Date Budget Manager Department
Presentation materials for all stakeholders 01-02-2019 03-03-2019 TBD Carl Kane Business Development
Follow up with suppliers 10-02-2019 30-03-2019 $100 Sam Bills Business Development
Follow up with developers 01-04-2019 15-04-2019 $50 Sam Bills Business Development
Printing materials 10-03-2019 04-04-2019 $8,000 Guy Keith Marketing
Marketing communication program 06-05-2019 06-06-2019 TBD Harry Sauce Marketing
Hiring staff 03-01-2019 30-05-2019 $900 Charton Hip Human Resources
Training staff 01-06-2019 01-06-2028 $1,000 Charton Hip Human Resources
Grand opening materials 15-07-2019 15-07-2019 TBD Guy Keith Marketing
5: The Finance:
Key assumptions & Financial review:
The business assumes that the start-up cost of $200,000 would help in contributing the
working capital. This would be sufficient to cover the start-up requirement and offer a cash
cushions to use for the expansion over the three-year time. The profit and loss would help in
demonstrating the modest rise in revenues over the three-year time period with the adjusted
inflation.
Assumptions:
a. The meal price would range between $12.00-25.00
b. The business would target a revenue of $175,000 in the first year of operations
c. Yearly increase of 15% sales and 5% inflation
d. The business assumes to generate ROC of 8% to 10% in the first year.

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Start Up Costs:
Start-up Expenses
Fixed Costs Particulars Amount ($)
Web Development Expense $1,000
Leased Premises Rent $7,000
License cost $2,200
Accounting and Legal $6,000
Utility deposit (Gas, electric and water) $2,750
Wages and salary for three month $7,000
Solicitor Fees $2,000
Phone & Internet Connection Costs $2,100
Computer Software $550
Raw materials $50,000
Staff training cost $1,200
Marketing and sales cost $6,000
Office equipment $2,000
Transportation cost $1,200
Workers Compensation $5,000
Building & Content Insurance $4,000
Working capital $50,000
Total Fixed Costs $1,50,000
Average Monthly Costs
Rent $583
Interest on loan 8% $667
Postage & Telephone $175
Gasoline and Oil $229
Salaries / Wages $583
Total Average Monthly Costs $2,238
x Number of Months: 12
Total Monthly Costs $26,850
Total Startup Expenses $1,76,850
Start Up Expenses

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Start-up Assets
Sources of funds
Owners Fund $1,00,000
Total Owner Funding $1,00,000
Loans
Bank Loan $1,00,000
Other
Total Loans $1,00,000
Total Start up Funds $2,00,000
Assets
Cash registers systen and POS 4500
Art and Décor $22,500
Utensils and Kitchen wares $25,000
Blenders and Food Processors $18,000
Total Fixed Assets $70,000
Total Start-up Assets $2,70,000

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Balance Sheet forecast:
Assets FY-1 FY-2 FY-3
Current Assets
Cash $1,69,995 $1,82,794 $2,11,624
Accounts receivable $1,75,000 $2,01,250 $2,41,500
Total current assets $3,44,995 $3,84,044 $4,53,124
Fixed (Long-Term) Assets
Cash registers systen and POS 4,500 4,500 4,500
Vehichels $25,000 $25,000 $25,000
Furniture $22,500 $22,500 $22,500
Equipment $18,000 $18,000 $18,000
(Less accumulated depreciation) $7,900 $7,000 $6,280
Total fixed assets $62,100 $58,500 $59,220
Total Assets $4,07,095 $4,42,544 $5,12,344
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable 38,395 51,504 91,134
Accrued Rent $7,000 $7,000 $7,000
Bank Charges Payable $6,000 $7,200 $9,000
Income taxes payable $4,005 $6,006 $9,706
Accrued salaries and wages $28,000 $33,600 $42,000
General Expenses $1,000 $1,200 $1,500
Current portion of long-term debt $1,00,000 $92,000 $84,000
Total current liabilities $1,84,400 $1,98,510 $2,44,341
Long-Term Liabilities
Long-term debt $1,00,000 $92,000 $84,000
Less: Loan Repayment $8,000 $8,000
Total long-term liabilities $1,00,000 $1,00,000 $92,000
Owner's Equity
Owner's investment $1,00,000 $1,10,000 $1,21,000
Net Profits $9,345 $14,014 $22,649
Reserve and Surplus $13,350 $20,020 $32,355
Total owner's equity $1,22,695 $1,44,034 $1,76,004
Total Liabilities and Owner's Equity $4,07,095 $4,42,544 $5,12,344
Balance Sheet

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Profit and loss forecast:
(4) PROFIT AND LOSS FORECAST
Preop
Year 0 1 2 3
Revenue 0 1,75,000 2,01,250 2,41,500
Cost of sales 0 75,000 80,250 86,670
Gross profit 0 1,00,000 1,21,000 1,54,830
Gross Margin 1,65,655 1,87,236 2,18,852
Expenses/overheads
Leased Premises Rent 7,000 7,000 7,000
Wages 28,000 33,600 42,000
Administrative Expenses 1,000 1,200 1,500
Supplies 15,650 18,780 23,475
Marketing Expenses 8,000 9,600 12,000
Rates 6,000 7,200 9,000
Insurance 2,750 3,300 4,125
Other general expenses 4,000 4,800 6,000
Interest 1,250 1,500 1,875
Employee Benefits 8,000 8,000 8,000
Prelim expenses 5,000 6,000 7,500
Total expenses/overheads 86,650 1,00,980 1,22,475
Profit before tax 13,350 20,020 32,355
Tax @ 30% 4,005 6,006 9,706
Profit after tax 9,345 14,014 22,649
Transfer to reserves 13,350 20,020 32,355
ROC 9% 14% 21%

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Expected Cash flow:
(2) CASHFLOW FORECAST
Preop
Year 0 1 2 3
CASH INFLOWS
Cash from Sales 1,75,000 2,01,250 2,41,500
Directors loans 1,00,000 1,00,000 1,00,000 1,00,000
Capital Employed 1,00,000 1,00,000 1,10,000 1,21,000
Other cash inflows
TOTAL CASH INFLOW 2,00,000 3,75,000 4,11,250 4,62,500
CASH OUTFLOWS
Payments for materials 75,000 80,250 86,670
operating expenses ( ) 0
Premises (rent, rates) 0 7,000 7,000 7,000
Wages and salaries 0 28,000 33,600 42,000
General expenses 0 1,000 1,200 1,500
Interest and bank charges payable 0 8,000 8,000 8,000
Lease payments 0 6,000 7,200 9,000
Corporation Tax 4,005 6,006 9,706
Employee Benefits 0 5,000 6,000 7,500
Other preliminary expenses 0 1,000 1,200 1,500
capital expenditure
Plant and other capital expenditure 0 70,000 70,000 70,000
financing repayments
Loan repayments 8,000 8,000
TOTAL CASH OUTFLOWS 0 2,05,005 2,28,456 2,50,877
Cash flow summary
NET CASHFLOW FOR PERIOD 2,00,000 1,69,995 1,82,794 2,11,624
OPENING CASH BALANCE 0 2,00,000 3,69,995 5,52,789
CLOSING CASH BALANCE 2,00,000 3,69,995 5,52,789 7,64,413

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Part B:
Answer to 1:
The relevant parties of the business plan include the customers that requires creation
of awareness among them regarding the availability of the restaurants that serve the
traditional foods for daily patrons. The details of the performance requirements include the
action plans that is related to the needs of business or opportunities for defining the level of
detail system design.
Answer to 2:
The level of skilled labour is the entry level that requires no skill or experience. At
this level the employees would be working as host for preparing and washing vegetables,
preparing hamburgers or washing pots and pans.
The secondary labour skills includes the skilled and technical workers that have
sufficient training in hospitality industry. This includes the professional cook’s
apprenticeship programs, hospitality training and bartending programs.
The third category of jobs includes the requirement of supervisory qualities.
Individuals that are working under this role should have experience in controlling costs,
managing and producing budgets.
Answer to 3:
Two examples of performance management
a. Five-point scale based on defined rating points
b. Performance appraisals and employee development

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Answer to 4:
a. Informative business reports: This report is prepared with the objective of offering
information in a descriptive manner regarding the specific issues and problems.
b. Periodic reports: The periodic reports are vital in management control and it should
be prepared on the monthly basis.
c. Functional reports: The functional reports include accountings, marketing and
financial reports that are prepared on quarterly basis.
d. Performance reports: The management likes to know the performance for every
department of its existing employees. This reports are prepared on the monthly basis
to assess the department regularly.
e. Technical business reports: This includes a detailed way of undergoing the changes
as well as the money required to incorporate technical changes. This is prepared in a
half-yearly basis.
Answer to 5:
Steps to improve the product line are as follows;
a. Gaining the clarity on sales and marketing
b. Understanding how the sales and marketing is converted in units
c. Performing a detailed analysis of product line
Answer to 6:
The examples of performance indicators include;
a. Growth in sales
b. EBITDA

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References:
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Lipset, S.M., 2018. Values, education, and entrepreneurship. In Promise Of Development (pp.
39-75). Routledge.
Lounsbury, M., Cornelissen, J., Granqvist, N. and Grodal, S., 2019. Culture, innovation and
entrepreneurship. Innovation, 21(1), pp.1-12.
Piperopoulos, P.G., 2016. Entrepreneurship, innovation and business clusters. Routledge.
Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.