Business plan

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Executive Summary

The purpose of this business plan is to secure open Subway franchise in Southall, London. The owner of the company is willing to invest 200,000 to secure the funding for inventory, and early operations. The franchiser, "Subway." is one of the fastest growing franchises in United Kingdom. The chain will be positioned somewhere between traditional fast food restaurants, and sitdown restaurants. This segment of the market is attuned to the health benefits of their eating habits, are more conscious of their buying habits than the general population, and more importantly, they have higher incomes and are willing to pay more for a better Healthy fast food choice. The prime aim of the business is to focus upon the freshness and customer satisfaction, which creates an exceptional Subway experience. To succeed with our goal, and to encourage a healthy lifestyle, we will sponsor local sporting events, and give 3% of profits to local charities. We will build roots into the community. We will also market our products with local businesses, the famous Shakespearean Festival, to local hotels, and offer catering services through local party supply stores and through close ties to local hotel managers and executives. Our goal will be to build value for our constituents, ourselves, our employees, our customers, and the community.

Details of owner

Name: =========== Position/main responsibilities: Director Experience and knowledge of fast food industry: Expert Key skills brought to the business: Critical Thinking, Persuasion and Effective Communication Business experience and any training undertaken: Five years Experience in the Fast food Industries. Academic/professional qualifications: Master of Business Administration in marketing Most recent salary: 1, 2000.00 per year

Business Overview

Objectives My first objective is to open the Franchise restaurant four months from the day that my site is confirmed by the realtor. My site was confirmed in January,2013, therefore our goal is to

be up and running by June,2013. The P&L and Balance Sheet all begin in June. Start-up costs between will be found in the Start-up Summary Section. The Business will turn a profit by the beginning of our second fiscal year of operations. Repeat customers will constitute 70% of our overall business by the end of year one. We will track customer habits and loyalty through a local marketing research firm, and publish the results of these findings to our employees once a quarter.

Mission Mission is to bring to market the tastiest and healthiest fast food in Southall, at a slight cost premium over other fast food restaurants. The high standards of quality and cleanliness will establish business reputation as the cleanest fast food restaurant in Southall. The community is as important to us as making a profit. This company is founded on the concept that good works and good deeds not only serve the needs of the community, but will also keep the company healthy and committed to the success of its customers.

Keys to Success The most important key to success is our location. It is very important that our location live up to our expectations, and is convenient to as many potential customers as possible. Another key to success lies with the ability to execute plan. If we neglect one or more aspects of our plan, whether that is our numbers, our employees, our cleaning and food standards, or our commitment to customers, we will not succeed and thrive.

Company Information

Company Summary The Subway brand is the largest specialist sandwich provider in the UK & Ireland, with more than 1,500 stores. Worldwide, the SUBWAY brand has more than 38,000 stores in 100

countries. Stores offer customers a delicious range of Subs made right in front of them on freshly baked bread - just the way they want it. The Subway franchisees benefit from operating in a tried and tested system with great training and a solid support structure with aspects such as site selection, leasing, purchasing, marketing and more. The Subway brand's franchise system has widespread appeal. The low investment, simple operation and unparalleled support make it an attractive proposition for entrepreneurs across the world. The company provides the convenience of fast food with rapid response times, affordability, as well as carry-out and home meal replacement options. Start-up Summary

Graphical presentation

Business Strategy Strategy

Our prime strategy is to focus on our customer experience. Our success hinges on whether customers receive what we promise them, and are pleased enough to come back for more.

Our KISS (Keep it Simple & Smart) approach will be successful only if we don't distract ourselves from the core business of making good sub fast, and of treating the customers as if they are special. As with any business model in the new millennium, we must adapt our strategy to the customer and market trends, while maintaining consistency of brand and message. This is a challenge for any business in any industry because the nature of business will always, and has always determined that the best strategy with the most resources behind it will survive. This millennium has proved to be very successful in growing this market, and of supporting it's franchises.

Value Proposition Our value proposition is that we offer high-quality, healthy fast food at a reasonable price. The business facilities are clean and our food is tastier than that of our competitors. The ambiance of our facilities will contribute to customers' desire to eat their meals in a comfortable, healthy environment.

Competitive Edge We have a competitive edge in regards to the overall quality and differentiation of our products, and in the cleanliness and ambiance of our seating area. Our sandwiches are all of the finest quality, and have been refined through taste-tests sponsored by The Sub way Corporate. We will differentiate our food from our competitors in regards to taste, quality of bread and contents, attentiveness to customers, and overall experience. We gain from their conversion of burger eaters to sandwich eaters, but alternately prove that we are more responsive to customers and offer better fare than other franchises. Strategic Alliances The fast-food business is based largely on the impulsive choice of consumers. Many people buy their business lunch, lunch, or family dinners at a fast food restaurant, and those fast food restaurants offer not necessarily the best selection, but the most reliable menu and the fastest order completion time. Customers will try other fast food restaurants, and shop around, but the majority of their fast food purchases are made through one retailer. Our goal is to capture those customers, and to build loyalty to the product through purchase punch cards, consistent daily specials, and a direct mail list.

Marketing Strategy

Marketing

Our Marketing Strategy is to reach the largest amount of tourists residents, and students for the least amount of money. Our strategy will focus on three solid points: To develop customer loyalty To extend the franchise brand locally. Develop local word-of-mouth advertising (buzz). Pricing Strategy Our pricing strategy is different for different customers. Prices to retail customers will be fixed by the chairs, and based on a relative cost of living indicator. Retail prices will be competitive at about 6 for the average meal. This is about 30% above McDonald's and Burger King prices, Customers are simply willing to pay more for healthy, flavorful food served in a clean, comfortable environment. Promotion Strategy The chairs will promote our products on the national level. In order to reach our local customers, and build loyalty, we will offer special mid-day promotions, sponsor local community events, advertise in the local classified paper, and our President will become a leading figure and spokesman in the community. Distribution Strategy We plan to distribute our products direct to customers, without the use of a separate channel of distributors.

Sales Strategy Our sales strategy will be to reach the largest amount of Jackson county residents and tourists with consistent value-added incentives to purchase our products and visit our restaurant. In this industry, and especially as a franchise, our marketing programs are almost indistinguishable from our sales programs. The indistinguishable handles a lot of the national and regional marketing, and we just pay our fee to have it done. Our flexibility will lie in our ability to push the boundaries of freedom the indistinguishable has given us, and to take advantage of opportunities to differentiate ourselves on sales by sale level. Personnel Plan The human resource management is considered to be an important part in every organisation. In context of Subway franchise it is essential for the company to recruit and develop skilled workforce to serve the customers in the best possible way. In the initial

stage the business will employ three time employees working 20 hours per week at 7 pound per hour. it is important for fast food outlet to recruit and develop skilful work force in its initial stage to serve the customers in an efficient manners by operating the business in an efficient manner. The business owned and managed by Sawkat. He is a business graduate from Cardiff Metropolitan University. As part career development he served for a well-known car fast food as Shift manager for the last 5 years. Therefore it can be observed that the owner of the business has the skills and expertise in the area of business. In addition to it is also important for the business to establish a customer friendly environment that when any hands to retain the existing customers and to bring new customer group. Therefore the business has future plan to provide training and development opportunity for the employees. As a result it would develop good organisational skills among the workforce to serve the customers and to attend the organisational objective of the business.

Payroll plan Year 1 Store Manager Year 2 Year 3 Year 4 Year 5

26,000 26,000 26,000 26,000 26,000

Part-time employee 12500 12500 12500 12500 12500 Part-time employee 12500 12500 12500 12500 12500 Part-time employee 12500 12500 12500 12500 12500

Financial Plan The financial part is considered to be an important determinant during the establishment of new franchise business proposal. The projected financial plan will enhance the company to develop and expand its business. At present in UK the fast food industries are in a

competitive position. Therefore it is important for subway to focus upon the estimated financial plan to establish itself in the leading position.

Projected cash flow statement (Appendix A) The projected cash flow statement indicates the overall cash inflow in ABC car rental agency during the next 3 years. It is considered as the inflow of cash in the business. On the other hand the cash spending and bill payments are the projected cash out flows of the business.

Projected, profit and loss account (Appendix B) The prime objective of profit and loss account is to focus upon the overall income and expenditure of the business. In this stage in context of business the profit and loss account demonstrates the income of the company in form of sales revenue.

Projected balance sheet: (Appendix C) The projected balance sheet reflects the overall financial condition and performance of the business. From the balance sheet of business it is observed that the company is reflecting a favourable financial position from the start up of the business.

Year 1 Cash Received

Year 2

Year 3

Cash from Operations Cash Sales Subtotal Cash from Operations

76818 76818

186100 186100

370000 370000

Additional Cash Received Sales Tax New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

76818

186100

370000

Expenditures

Year 1

Year 2

Year 3

Cash flow Statement Projected, profit and loss account (Appendix B)

Year 1 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales 76818 20653 0 20653

Year 2 186100 41300 0 41300

Year 3 370000 82600 0 82600

Gross Margin

56255

144800

287400

Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Total Operating Expenses 63500 10,000 0 30,000 2,550 106050 63500 10,000 0 30,000 2,550 106050 63500 10,000 0 30,000 2,550 106050

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

(49795) (49795)) 0 0

38750 185913 0 0

181350 617326 0 0

Projected balance sheet: (Appendix C)

Assets

Current Assets Cash Other Current Assets Total Current Assets 157705 0 157705 225750 0 225750 355350 0 355350

Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital 0 0 0 22000 Year 1 0 0 0 190000 Year 2 0 0 0 210000 Year 3

Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities 9500 0 0 9500 11000 0 0 11000 16000 0 0 16000

Long-term Liabilities Total Liabilities

0 9500

0 11000

0 16000

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital

200,000 200,000 (20000) (49795) 148205 157705 (35000) 38750 214750 225750

200000 (42000) 181350 339350 355350