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Plan Outline
Italian Restaurant Business Plan
The Pasta House Co.
Strategy and Implementation Summary
Every customer who has eaten at a Pasta House Co. is a potential customer. The better we run this Pasta House location the more business we will do. Customers will know that they can get better quality PHC food at this location. They will know that the service is better, and the people are better. The look of the new location will be fresh and clean. The area needs a fine dining family restaurant. The area needs an big name local operation with a home-grown name like The Pasta House Co.
5.1 Competitive Edge
This is what gives us the competitive edge to insure a profitable home-grown expansion:
- Proven Pasta House Co. concept since 1974
- Proven track record of PHC High Ridge serving the area for over 20 years
- Best home-grown training in the industry
- Senior PHC High Ridge management and crew to open with
- Local marketing in all age ranges
- Known costs with purchase of an turnkey restaurant
- Current staff and management from JD Drew's
- Close and strong support of PHC President and Senior Management
- Strong food and supply vendors with very high quality products
- On-going support from PHC Corporation
5.2 Marketing Strategy
We at The Pasta House Co., including all management, crew personnel, supervisors, vendors, design people, family and friends, and new hires will put forth 100% effort to insure a profitable opening and on-going operations.
A fine tuned advertising campaign and new store opening has been developed by The Pasta House Co. president Kim Tucci. Construction is handled by Joe Fresta who has built and opened over 31 location.
5.3 Sales Strategy
The sales strategy is to sign up as many frequent diner customers as possible at the new location as well as High Ridge. Using the Frequent Diner Program in place a High Ridge for three years, we plan to further cement the loyal customers in the area. We will honor 6,000 club members with points at both locations.
We plan on taking advantage of The Pasta House Co. market saturation in St. Louis. We will build and expand on that customer base by exceeding customers expectations. This will bring back old customers and bring in new customers to the Fenton location.
We plan on up-selling customers with our current suggestive selling program. From the hostess to the waiters and waitress our staff has successfully increased the average check for add-on sales from 5% of the average check three years ago to over 13%. This insures an increase in profit without having to depend on an increase in customer counts or price increases.
5.3.1 Sales Forecast
A sales forecast of 5.0% increase in volume over the current High Ridge location is based on the following:
- Increased visibility and known area of St. Louis. Everyone knows where Fenton is, and few know where High Ridge is located.
- Increased traffic flow with the intersection of Highways 141 and 30, with over double the traffic in the area.
- Increased customers staying in the area to shop. Two major shopping centers compared to a 20 year old strip center.
- Increased retail employee business.
- 26% larger space inside, with 30% more customer seating.
- Outside seating area during the spring through fall seasons increases the seating by 60% over HR.
- Brand new PHC look inside.
- Private rooms available, to cater private parties.
- Closer to the eight hotels in the area.
- Better location closer to St. Louis, where the action is.
Below is a list of the sales volume showing the sales increase in The Pasta House Co. High Ridge from 1984 to 2002:
| 2003 | est £1,633,349 |
| 2002 | £1,575,900 |
| 2001 | £1,555,866 |
| 2000 | £1,521,927 |
| 1999 | £1,354,347 |
| 1998 | £1,232,094 |
| 1997 | £1,160,898 |
| 1996 | £1,140,184 |
| 1995 | £1,167,583 |
| 1994 | £1,094,791 |
| 1993 | £1,061,775 |
| 1992 | £988,664 |
| 1991 | £912,302 |
| 1990 | £840,152 |
| 1989 | £817,058 |
| 1988 | £780,510 |
| 1987 | £714,808 |
| 1986 | £703,269 |
| 1985 | £685,232 |
| 1984 | £651,897 |
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Food and Liquor Sales | £1,638,070 | £1,703,593 | £1,771,737 |
| Merchandise | £5,478 | £5,533 | £5,588 |
| Gift Certificates | £37,700 | £38,831 | £39,996 |
| Total Sales | £1,681,248 | £1,747,957 | £1,817,321 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Sales + Merchandise at 25.7% | £421,053 | £429,474 | £438,064 |
| Other | £0 | £0 | £0 |
| Subtotal Direct Cost of Sales | £421,053 | £429,474 | £438,064 |
5.4 Milestones
I have full confidence in all of the managers, designers, and PHC people who will make this a huge success.
DENNIS BOLDT
- SBA loan and Business Plan
- Bank Account
- Franchise Purchase
- Legal and review of Lease
- Equipment Purchase
- Sign Purchases and install
- Software POS system install
- Corporation set up, Insurance, Deposits, Liquor License
- PHC Design Work with Joe Fresta of The Pasta House Co.
- Oversee entire transformation and operations of the group
VINCE LARATTA
- Crew and manager hiring and training
- New equipment installed
- Food & liquor purchases delivery and stocking
- Crew and manager scheduling
- Maintenance and repairs
- Advertising
JAN BOLDT/CAROLYN FINCH AND COMPANY (team of 6 designers from Tulsa, OK)
- PHC design work walls and floors design with Joe Fresta of PHC
- Shelving and displays in place
- Design of dining room look
- Record keeping of purchases and budget
- Permits, liquor licenses, start up requirements paperwork
Joe Fresta, Vice President of The Pasta House Co.
- PHC design work and construction work
- Oversee display of dining room
- Oversee kitchen equipment purchase and layout
- Advise owner when needed
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Purchase of PHC Franchise | 3/1/2003 | 3/3/2003 | £50,000 | Dennis | Owner |
| Kitchen Equipment Purchase | 1/1/2003 | 1/15/2003 | £16,000 | Dennis & Vince | GM |
| Set up Bank Account | 1/1/2003 | 1/2/2003 | £90,000 | Dennis | Owner |
| Purchase of Smallwares | 1/1/2003 | 1/5/2003 | £3,000 | Vince | Web |
| Signs Purchase | 1/17/2003 | 1/22/2003 | £10,000 | Dennis | Owner |
| Product Displays | 2/25/2003 | 2/28/2003 | £2,000 | PHC Corp Office | Corporate Office |
| Apply Liquor Licence ETC | 1/6/2003 | 1/9/2003 | £400 | Dennis | Owner |
| Corporation Start-up Fees | 1/4/2003 | 1/10/2003 | £1,500 | Dennis | Owner |
| Attorney's Fees Paid | 2/1/2003 | 2/26/2003 | £5,000 | Dennis | Owner |
| Set up Insurance & Deposits | 2/19/2003 | 2/22/2003 | £3,000 | Dennis | Owner |
| First Month Rent Deposit | 3/1/2003 | 3/1/2003 | £9,500 | Dennis | Owner |
| Set up Office/ Computer | 3/10/2003 | 3/14/2003 | £1,300 | Vince | GM |
| Install Kitchen Equipment | 3/2/2003 | 3/7/2003 | £2,000 | Denise | MGT |
| Food & Liquor in Place | 3/9/2003 | 3/13/2003 | £300 | Denise | MGT |
| Food and Liquor Ordered | 3/8/2003 | 3/8/2003 | £7,000 | Denise | MGT |
| Advertizing Opening | 2/20/2003 | 2/20/2003 | £1,000 | Vince | GM |
| Crew Training MGRs at HR | 1/10/2003 | 4/15/2003 | £10,000 | Janet | HIGH RIDGE PHC |
| Pay and Install Software POS System | 3/1/2003 | 3/5/2003 | £6,500 | Dennis | Owner |
| Construction PHC | 3/1/2003 | 3/5/2003 | £23,000 | Joe Fresta | VP PASTA HOUSE |
| Walls and Floors by Finch Inc. | 3/6/2003 | 3/9/2003 | £8,000 | Jan & Carolyn | DESIGN TEAM |
| Opening Night Trial Run | 3/15/2003 | 3/15/2003 | £500 | All | ENTIRE TEAM |
| Totals | £250,000 | ||||