Financial Plan and Risk Assessment: Healthy Fast Food Restaurant

This document presents a comprehensive financial plan for a healthy fast food restaurant, encompassing various aspects of the business. It begins with an assumption section, outlining the salary structure and staffing requirements, differentiating between full-time and part-time positions. The marketing plan details market research spending, online marketing strategies (Facebook, Instagram, email marketing, and KOL collaborations), and promotional activities with associated budgets. Equipment and utility costs are estimated, along with renting and refurbishment fees. Material costs are calculated based on portion size and estimated daily unit sales, leading to a total material cost projection. The revenue is forecasted and a cash flow analysis, income statement, and balance sheet are provided. Furthermore, the project identifies and analyzes potential risks, categorized into progress, management, marketing, financial, and customer risks. These risks include demanding workloads, human resource compliance issues, damaged assets, natural disasters, brand awareness, cost overruns, and customer-related challenges. The document concludes by providing solutions and mitigation strategies for each identified risk, ensuring the restaurant's financial stability and operational success.

FINANCE PLANNING
1.1. Assumption
 Salary
Job Title Number of
position Part-time Full-time Part-time Full-time
Marketing
Employee 1 1 2 million/month
Accounting
Employee 1 1 7 million/month
Chef 2 2 8 million/month
Kitchen maid 3 (3 per 1 shift) 2 1 2 million/month 4 million/month
Waiter 3 (3 per 1 shift) 3 2 million/month
Security 1 1 5 million/month
Cashier 2 (1 per 1 shift) 2 2 million/month
Total 40,000,000 VND in average per month in first year

 Marketing
Firstly, we would spend an amount of 2,000,000 VND in doing market research in the
first 3 months which helps us understand more about healthy fast food restaurant’s
potentials. We believe that maintaining and reviewing this category for the next 3 months
and the rest of the year can get the most genius feedbacks for our products and services
so that we can improve our brand better. Though we are going to reduce the money spent
in Market research and move that change to other parts. In detail, we will spend
1,000,000 VND in market research for the rest months of the year.
Secondly, when it comes to marketing online channel, we would prefer to use Facebook
and Instagram advertisement tools; Email marketing and especially KOLs collaborations
which cost 26 million VND for the whole channel in the 3 opening months; for the next 3
months, we reduce the budget to 25.5 million VND in total and we decrease to 20.5
million VND in the 6 months coming.
For marketing promotions, we use promotion cost on sales and events on holidays or
weekends such as opening times; mini games; happy hours; happy Wednesdays and E-
wallets promotions. Hence, we planned to put 7 million VND for the first 3 months. In
April, May and June, we only spend 6.5 million VND and for the rest 6 months we are
going to put 13 million VND in marketing promotions.
Table 5-1: Marketing Cost
First three months Next three months
April, May, June
6 months later
Market Research 2 million VND
3 million VND
1 million 1 million
Branding and
Packaging

Social Media/
Online Marketing
26 million 25.5 million 20.5 million
Promotions 7 million 6.5 million 13 million
Total: 107,500,000 VND in first year
Equipment: Base on normal restaurant, survey about our competitors and our own
unique, we make a list of equipment that we have to spend as below and the total amount
of money is 65,296,000 VND in first year.
Utility cost: We estimate the cost of water and electricity is 3 million VND and for Wi-
Fi is 200,000 VND per month. The set-up fee is 200,000 VND
Renting cost: our restaurant located in Nguyen Hong Street with 60m2 and the first floor
only. The market price for renting cost is 12 million VND/month, pay 3 months in
advance.
Refurbishment fee: We plan to fix and redecorate out restaurant after every 6 months
running business and spend 5 million VND for each time refurbishment
Material cost: After doing market research, we decided to choose suppliers who have
farms because they offer the most reasonable prices but still have fresh and high quality
products.
According to “Operation Planning”, we estimated that each 20 portions value 682,000
VND. Therefore; the average cost for each portion is 34,000 VND
Estimate unit sold per day
Elements that affect our unit sold such as: seasonal factors, trending factors, human
factors, etc. and our capacity helps us to estimate unit sold in the first year as the table
below
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
Unit Sold per day 50 80 95 105 115 125 130 145 150 160 175 185 1515
Total 1550 2240 2945 3150 3565 3750 4030 4350 4500 4960 5250 5735 46025

Total cost of material: 1,564,850,000 VND in first year
Revenue: 4,096,225,000 VND in first year
Cash flow:
Based on our assumption we calculate the cash flow table, income statement and balance
sheet.
For more detail, you can see it in Healthy Fast Food Financial Statement.
1 2 3 4 5 6 7 8 9 10 11 12
Cash inflow
Revenue 137950000 199360000 262105000 280350000 317285000 333750000 358670000 387150000 400500000 441440000 467250000 510415000
Total cash inflow 137950000 199360000 262105000 280350000 317285000 333750000 358670000 387150000 400500000 441440000 467250000 510415000
Cash outflow
Renting 315000000 270000000
Utility 5400000 5300000 5300000 5300000 5300000 5300000 5300000 5300000 5300000 5300000 5300000 5300000
Insurance 600000 600000 600000 600000 600000 600000
Wages 40000000 40000000 40000000 40000000 40000000 40000000 40000000 40000000 40000000 40000000 40000000 40000000
Purchase Goods 52700000 76160000 100130000 107100000 121210000 127500000 137020000 147900000 153000000 168640000 178500000 194990000
Refurbishment 9000000 9000000
Advertising 37000000 35000000 35500000
Equipment install 30,315,000
Total cash outflow 444015000 121460000 183030000 152400000 167110000 216800000 452920000 193200000 198900000 213940000 224400000 284790000
Net cashflow -306065000 77900000 79075000 127950000 150175000 116950000 -94250000 193950000 201600000 227500000 242850000 225625000
Opening balance 350000000 43935000 121835000 200910000 328860000 479035000 595985000 501735000 695685000 897285000 1124785000 1367635000
Closing balance 43935000 121835000 200910000 328860000 479035000 595985000 501735000 695685000 897285000 1124785000 1367635000 1593260000
Income Statement
Table 5-2: Income Statement
Revenue 4121145000
Purchases 1,654,650,000
Gross profit 2,466,495,000
Expense
Renting cost 540000000
utility cost 64600000
Insurance 36000000
Salary and bonus 480000000
Refurbishment 18000000
Depreciation 3,031,500
Advertising 107500000

Total expenses 1821531500
Net profit before tax 644,963,500
Balance Sheet
Table 5-3: Balance Sheet
Balance sheet Value
Fixed asset
Equipment
Initial cost 30,315,000
Depreciation 3,031,500
Net 27,283,500
Total Fixed asset 27,283,500
Short-term assets
Cash 1593260000
Account Receivable 45000000
Total short-term assets 1638260000
Short-term Liabilities 0
Rent Deposit 45000000
Total short-term
Liabilities 45000000
Working Capital 1593260000
Net asset 1,620,543,500

POTENTIAL PROBLEMS/RISKS
6.1 Potential risks
 Progress of the process risks
(1) Demanding Workload
From the business planning stage to opening and running a healthy fast food restaurant,
employees may have to work overtime. This sort of workload can be exhausting to both
owners and staff. Some of the 60 percent failure rate can be attributed to not being able to
keep up with the demands of the customers. Opening a restaurant even gets higher
pressure and workload because the owner has to prepare carefully and on time each stage
in order to catch up with not only the timeline of the business plan but also the
expectation of customers. In detail, our menu offers diverse options such as more than 5
sauces for 5 main dishes which needs more workload and time from the staff especially at
opening times. This may lead to not complete cooking or serving on time which results in
losing reputation in the long run.
(2) Time overruns
It can be seen that healthy dishes are getting more attentions and its demand is bigger in
Vietnamese market. We understand that our mission is to give the customers fast food but
still healthy with the appropriate numbers of calories each dish contains; hence it takes
the cook and other staff to measure and prepare longer time to serve. This is such a
problem we might face if it continues in rush hours. If we cannot prioritize the serving
time to run the business fast and successfully, we might upset the customer’s expectations
and fail to do the business plan proposed before.
 Management risks
(3) Human Resource

- Human resource compliance: Many restaurant owners may be letting a lot of
important human resource compliance practices slip through the cracks, either
because they just don’t know about them or don’t have the time to handle them.
Unfortunately, neither ignorance of regulations nor lack of time serves as an adequate
excuse if the interview with employees and hiring practices aren’t compliant, if the
employees terminate someone wrongfully, if their corrective actions aren’t effective,
if their employment verification processes aren’t complete, if their job classifications
aren’t aligned with wage and hour laws—and so on.
- In any unpredicted cases, accidents employees may have when doing project such
as slips and falls or cuts and burns and cooking fires even worse. We put the safety
first by protecting floors which includes deep cleaning and the ongoing maintenance
programs. We also plan to develop a fire protection system that prevents or limits the
spread of any cooking fires. Finally, we will always keep a regularly stocked first-aid
cabinet available in case someone can get hurt.
- The quality of our onboarding process is key to ensuring our employees are pleasant
or not and empowered to do their job. Good onboarding also significantly reduces
costs as employees are trained correctly, which minimizes mistakes that can drain
finances. Get staff up and run smoothly and efficiently or invest the time to develop
standards in our restaurant onboarding process so that our new hires get up to speed
accurately and are pointed in the right direction.
- Moreover one employee can acquire the best talent, but without the proper training,
our employees can’t do their job properly to reach their full potential. There are many
ways to improve training programs, however, it takes time. Once hired, staff need to
be prepared immediately to deal with bad or good customer situations. To make an
immediate impact, focus on the “low hanging fruit” to ensure training programs at
least meet the minimum standards and tools.
- Restaurant owners are much less likely than other business owners to offer benefits
to employees. However, in this super competitive industry, when you offer a strong

benefits package, you can attract and retain the top talent, managers, staff, and chefs
or else you could lose your best employees and time to hire a new better ones.
- Last but not least, a big part of being a business owner is to provide a safe working
environment for all employees. This means that you’d address any harassment
complaints in a thorough and consistent manner. Workplace harassment, especially
sexual harassment, is a big issue in the restaurant industry and you need to take the
proper measures to protect your business and most importantly, your employees.
(4) Damaged and improper asset
The effect of assets on risk caused by damaged and improper equipment intentionally
and unintentionally by the labors has a negative impact on the restaurant in operating
time. If this happens, the result is the stoppage of the production process. Our solution
is providing a periodical checking to the equipment and improving planning to the
damage equipment as well.
(5) Natural disasters or Pandemics
Natural disasters or pandemics can occur at any times and leave a devastating impact
on restaurants. Limit the impact of nature's wrath by identifying emergency
preparation plans before a storm occurs. This should include employee shelters and
meeting spots, emergency contacts and pre-selected vendors who can assist with
recovery efforts. In pandemic times such as Covid-19, we should be operating the
restaurant flexibly. We can move the offline running to 100% online operation so that
we would not be under losing much profits.
 Marketing risks
(6) Brand awareness
The brand awareness is the most popular issue that each business has to tackle with.
Due to the lack of marketing and introducing activities of the restaurant, our healthy
fast food brand may be unfamiliar by the public and cannot reach the targeted sale
volume.
(7) Royalty

When operating a restaurant, a business may have to face up with losing the royalty of
the old customers which is caused by unsatisfactory services to customers or the
newborn of other competitors. Hence, the sales target is not sufficient and the
restaurant cannot run for long.
(8) The unattainable target market
The marketing activity is less active in offering and promoting the products which can
render the restaurant lose charter. Instead, we should evaluate customer satisfaction
regularly so as to maintain the reputation of the restaurant.
 Financial risks
(9) Cost overruns
During the implementing periods of the startup project often arise various problems
may be due to environmental impacts from both inside and outside that affect and
make slow down or delay the progress and timeline of the project. For example, the
problems arising in the registration certificate of quality, finding locations to open ...
Moreover, the number of estimated budget may deficit incurred by some these
problems. For situation, we need suitable methods to make equable and have to
flexible in work.
(10) Lack of capital
It may be happened if the potential investors refuse to invest in our business. We do
not have enough capital to start project.
 Customer risk
(6) The number of customer is too low: healthy food is very important for everyone
especially with the diet people, vegetarian, people in hard training workout course or
people want to eat health food enhance their health. However, it still quite too strange
with almost people, they may be still unbelieved in the benefit of the salad in daily life.

(7) The number of customer is too high in rush hour: our capacity: space, employees,
material, ect may be not enough to serve customers
 Product quality and quantity management.
(8) The quality of the material is not consistent and cannot control: some kind of
vegetables only available in some months in a year, so it is very important to make sure
the consistent of the taste in salad dishes when we serve to customers.
(9) The taste of the salad did not meet the standard of majority customers in market:
the most important factor in food industry is the taste, so we have to test the quality of
each dish before add this in menu to serve customers. After 3 months run business, if
current menu did not suitable, we can change menu to meet customer’s taste. Even our
menu is already good, we still always discover other recipes to update menu to catch up
with customer’s taste trend.
(10) The salad box’s presentation is messy because of the delivery: Our shipper must
very carefully to make sure the presentation of the salad box is still beautiful after
delivery. Our company supply for shipper a big case to contain those box when delivery
to protect our dish under best condition.