Anaya Ethnic Food Restaurant: Unique Dining Experience For Customers

Business Overview

Question:

Describe about the Market analysis of Anaya ethnic food restaurant?

Initial statement of investor and financial investor is starting an ethnic food restaurant company diagram. It is a honest disclosed if the Anaya ethnic food restaurant.  The restaurant intended to set business expectation and profitability of the business venture.

Anaya determine an exciting restaurant; merge an efficient environment with outstanding and exciting food. The job of the restaurant is to have greater food variety, well-organized and better facility because the customer fulfilment is primary purpose of the business. Anaya will be the restaurant of all type of customer. Anaya will be the preference for middle age and adult people, couples and singles, juvenile and aged, male and female. It will be a complete family restaurant.

Employee welfare, training of the staff and participation are evenly important for a successful business. Every employee is treated fairly and with the greatest respect. For the success of Anaya Ethnic food restaurant, the employee will feel a part of this success (Archer and D’Ambrosio, 1983).

The restaurant concept combines variety, entertainment, and ambiance and better-quality stuff to generate wisdom of place in order to achieve the ambition of the business plan.  The restaurant offers fair profit for the investors and owner of the restaurant and a rewarding system for better performance of the employees.

 The investor will choose the ethnic food restaurant because it is a unique type of food restaurant (Ardagna and Lusardi, 2009). People always want to try something new kind of entertainment and food is a fundamental necessary thing to fulfil the hunger. In this business, all kind of customer will come. This plan of activity is the formation of a exclusive, and innovative eating environment will make a distinction from other business and also for competition. That’s why the investor or owner chooses this plan of activity.

The market analysis recognized the subsequent input attribute as area of chance to provision for restaurant customers:

Portion section: Nearly 95% of study’s focal point is group endorses having a option of dissimilar size portion. This study is arranged by the table service operator review. The portin selection study is making to offer various size portions. The customer wants more option to choose the taste satisfaction (Bragg, 2013).

Menu variety: ethnic restaurants are growing in Sidney. The explosion of global food books, magazine, and TV cooking show is changing the testing spree of customers. In a matter of fact, dining places provide reorganization as ethnic institutions that numbered nearly 78000 in 1999 and recorded sales of 30.5 billion.

The dining experience: it indicates the interior decoration, lighting, and former option to develop the dining knowledge and it is an important factor in customer choice. Anaya capture this entire factor into consideration to design of this restaurant.

Reasonable price: although the whole restaurant industry has been the increase in 2002/2003, customers are demanding cost for their eating dollar. Anaya’s menu is priced at a moderate level, with no entry in excess of A$20 (Droms and Wright, 2010).

Market Analysis

Anaya ethnic food restaurant is determined to cater to on large customer base. Anaya wishes that all of the employee feels greeting and entertained. For market research Anaya divide the client by segmentation. It contributes to business growth outcrop.

• The business person
• Couples
• The destination customer
• High-end singles
• Tourists

This market segment has deposable income, fashionable and relaxing restaurant choice. These type of people who repeated others restaurant and bars in the neighbourhood (Garrison and Noreen, 1997). They are expected to expend more on understanding they take in as exclusive, comfortable and sophisticated. The customer are also trying something new, food wise.

Market Analysis
		Year 1	Year 2	Year 3
Potential Customers	Growth
Business Person	18%	9,925	10,223	11,348
Couples	32%	17,645	18,527	20,565
Tourists	13%	7,168	7,311	7,896
The Destination Customer	8%	4,411	4,499	4,724
High-end Singles	29%	15,991	16,950	18,815
Total	5.76%	55,140	57,510	63,348

Sidney is the site selected for Anaya ethnic food restaurant business concept. The outlook of Sidney is active and most progressive development area of Australia. It is a developed city so this is an opportunity for the enterprise (Horngren, 1982).

Ethnic restaurant is a unique type of business so; there are fewer competitors in the market. The competitors include Zaika, Evlline, Dinner hub, etc.  The environment of the restaurant is differing from the other restaurant. Menu of the restaurant is specialized and unique. In this restaurant, all type customer is comfortable. Anaya is a complimentary mingling of international cuisine on a single list (Horngren and Bhimani, 2008).  The source of revenue will be alcohol and bar sales. Anaya has all this facilities and also have exotic drinks on the separate menu. The menu pricing is moderate it is another high point of Anaya.

Anaya have foundation outlay on the food industry and sensible practical knowledge with parallel undertaking. The economic model is taken from the business notion to plane for the most terrible but supervise for the best. The first-year sales volume is under average, seat turn is under average, and food cost is above average.  This situation will help to make sure adequate financial planning to contain a practical ramp-up time, and business success, also make sure that the company do not entire venture undercapitalized (Michalos and Poff, 2013). The financial position of the company will help to reach success of the company.

Start up cost are mainly expensed utensils, furniture, reconstructions,  start up labour, painting, rent, business license and legal cost, discussion cost connected with opening for a restaurant. At the beginning of industry A$,97000 will be  paid for business operation. This is a substantial start-up estimate based on market analysis (Osburg and Schmidpeter, 2013). Anaya will pay for the following A$73311 of current assets during start up the company:

Fixture and lighting: A$32250

Bar equipment: A$26183

Sound and televisions: A$8378

Office equipment: A$65000

The owner of the restaurant is executing A$110000 of capital and A$300000 loan guaranty. Anaya obtained an A$130000 grand for re-establishment of building, dependent upon locating in the projected space. Anaya investor is seeking A$200000 of equity venture to fund Anaya’s start up cost fully.

Start-up Requirements
Start-up Expenses
PROJECT MANAGEMENT	$0
Restaurant Consultant (4 months)	$15,911
DESIGN	$0
Architectural Design	$2,195
Structural & Plumbing Design	$1,368
Mechanical & Electrical Design	$2,155
Graphic Design	$1,185
Electrical & Structural Engineering Fees	$2,592
Design Consultants (Kitchen, Interior & Dining)	$9,119
Engineer & Architect Fees	$7,040
CONSTRUCTION	$0
Plumbing	$33,244
HVAC (Air Return, Air Ducts, etc.)	$19,250
Electrical	$7,964
Disposal & Demolition	$4,122
Structural Construction (4 Months General Labour)	$52,099
Facade (Exterior Construction)	$3,092
Plaster (Dry Wall)	$2,061
Mill & Metal Work	$8,244
Interior Finishes (2500 – 3000 sq. ft.)	$14,538
Flooring	$14,622
Fire Alarm System	$3,092
Security & Phone System	$4,615
EQUIPMENT	$0
Liquor Control System – Lease	$0
Stools, Chairs, Tables, Uniforms	$38,025
POS (Point of Sale System) – Lease	$0
Glassware, Flatware, Small ware (Bar & Lounge)	$3,298
Glassware, Flatware, Small ware & Supplies (FOH)	$8,298
Dishwasher, Ice & Glass washer – Lease	$0
Kitchen Equipment Freight Fees	$2,389
FF&E Taxes (Taxes on Purchase)	$7,988
OPERATIONAL	$0
Capitalized Legal Fees (LLC, Investor Agreements)	$7,080
Software: Restaurant/Inventory	$5,500
Software: Cost Control	$6,000
Impact, Tap & Permit Fees	$3,115
Business License & Temp Certificate of Occ.	$1,615
Liquor Licenses	$4,615
Utilities, Disposal, Tax & Insurance	$9,275
Security Deposits (Phone/Elec/Gas/Water)	$6,250
Initial Lease Deposits	$6,250
Bank & Loan Closing Costs	$6,250
Web Site Construction	$5,800
Initial Marketing, Training & PR	$19,550
Research & Development	$3,050
Start-Up Salary (Mngt & Chefs)	$58,050
Recruiting (Staff)	$14,550
Inspections	$750
Initial Cleaning Services	$1,000
Total Start-up Expenses	$427,209
Start-up Assets
Cash Required	$97,099
Start-up Inventory	$27,500
Other Current Assets	$73,311
Long-term Assets	$65,000
Total Assets	$262,910
Total Requirements	$690,119

loss at Start-up (Start-up Expenses)	($427,209)
Total Capital	$12,791
Total Capital and Liabilities	$312,791
Total Funding	$740,000

Cost benefit will be conducted with SWOT analysis of the restaurant. Strength, weaknesses, are the internal factor and threat and opportunity is an external factor. A complete SWOT analysis of business indicates the proper way to success. Anaya ethnic food restaurant focuses on establishing a physically powerful identity in the community by impressive opening. The restaurant focuses on advertising that is help to increase customer consciousness in the nearby area. Anaya will generate an attractive and entertaining atmosphere with unconquerable quality at a brilliant price.  Anaya will be an thrilling and electric restaurant, and that’s why it will be the talk of the town. All this is the strands of the restaurant. The price of the menu are moderate, it is also a high point because Anaya is giving extraordinary food at rational prices for the average restaurant dinner. It will increase the profitability of the business.   The weakness point may decrease the cost-effectiveness of the enterprise. The following are the weaknesses of Anaya ethnic food restaurant: the owners’ throughout understanding of opening and running a restaurant (Ardagna and Lusardi, 2009). International menu is changes every four months it will be the bigger weakness of the business.  It is a multi-ethnic restaurant located in core business community. This is also a threat to the company because there are many types of restaurant are present like zaika, evelline, dinner hub, etc. All these are competitor of Anaya, and it will decrease the customer. The opportunity for business is to increase the value of the company. The main opportunity of Anaya is its location. Sidney is the corporate city in Australia. There are many organisations are existed that’s why many people are travel every day. Anaya’s primary target customers are the business personality and traveller. The biggest percentage of this client section will be looking for a restaurant in which to perform business or family institution, so, they will select Anaya ethnic food restaurant.

Target Customers

For the initial year the break-even analysis indicate that the there will be an average running of fixed cost around $60230 every month which consist of  full utilities, payroll and overall rent and calculation of other several key running cost.Anaya’s monthly break-even point is A$92081 with the direct cost of goods sold at 35% of sales.  First-year break-even point shows Anaya will get a surplus (Droms and Wright, 2010). As Anaya ethnic food restaurant outlet the start-up point of the business and focus on cost control, it will make the cost of goods sold down, reducing the break-even value and increasing gross margin.

Break-even Analysis
Monthly Revenue Break-even	$83,630
Assumptions:
Average Percent Variable Cost	35%
Estimated Monthly Fixed Cost	$54,703

Cost volume – profit analysis look primarily at effects of differing levels of activity on the financial result of the business.  The owner of Anaya knew that how many customers would come in a day and what type of menu they order. They could ensure that stuffing level was exactly accurate and there are no waste occurs in the kitchen.  In reality the discussion of such stuffing and food purchases have to be made on the basis of estimation. The estimation will calculated by the past experience.  This type of analysis is known as cost volume profit. It will increase the profit volume of the business and it also decreases the wastage of the restaurant.

Financial Statement

Anaya ethnic food restaurant model is based on selling concept to “plan for worst , but manage for best”. Anaya have come within reach of the financial plan as follows:

Important assumption

Risk analysis

Sales forecast

Break even analysis

Profit and loss analysis

The most important assumption in this business is income statement which is state gross margin of the business. The start –up phase   and of the business increases in year 2 and move the accepted annual sales forecast.  This conversion shows the retour ant managing through its start up period and raising its effectiveness and customer loyalty.  Last of all the restaurant will expand its customer base and status and rapidly growth will increase in third year.  Month by month assumption for income statement are included in the appendices.

The cash flow is mainly dependent on the assumption for inventory turnover and billing times. Anaya don’t have any credit, so cash flow does not track account receivable. Anaya do not anticipate requiring any supplementary financial support, even the business reach less profitable months. The downturn is integrated in to the revenue discrepancy figures.

Anaya’s proposed balance sheet is become durable. Anaya do not expect difficulty meeting the debt obligation based on accomplishing targets which outline of the plan. On a liner projection, Anaya ethnic food restaurant has appositive net worth beginning in year 3.

Ananias ethnic food restaurant are dedicated to the business and its visibility. The step into this endeavour with assurance and the achievement of the Anaya restaurant’s of particular prior business hard work. No one effort a business predicts failure, some time venture do not fulfil their commitment.

Reference

Archer, S. and D’Ambrosio, C. (1983). The Theory of business finance. New York: Macmillan.

Ardagna, S. and Lusardi, A. (2009). Heterogeneity in the effect of regulation on entrepreneurship and entry size. Cambridge, Mass.: National Bureau of Economic Research.

Bragg, S. (2013). Accounting best practices. Hoboken, N.J.: Wiley.

Droms, W. and Wright, J. (2010). Finance and accounting for nonfinancial managers. New York: Basic Books.

Garrison, R. and Noreen, E. (1997). Managerial accounting. Chicago: Irwin.

Horngren, C. (1982). Cost accounting. Englewood Cliffs, N.J.: Prentice-Hall.

Horngren, C. and Bhimani, A. (2008). Management and cost accounting. Harlow: Financial Times/Prentice Hall.

Michalos, A. and Poff, D. (2013). Citation classics from the Journal of business ethics. Dordrecht: Springer.

Osburg, T. and Schmidpeter, R. (2013). Social innovation. Berlin: Springer.

Pro-forma Cash Flow Statement

Pro Forma Cash Flow
	Year 1	Year 2	Year 3
Cash Received
Cash from Operations
Cash Sales	$1,073,769	$1,211,088	$1,279,204
Subtotal Cash from Operations	$1,073,769	$1,211,088	$1,279,204
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
Subtotal Cash Received	$1,073,769	$1,211,088	$1,279,204
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$399,588	$400,788	$429,828
Bill Payments	$601,114	$724,989	$745,324
Subtotal Spent on Operations	$1,000,702	$1,125,777	$1,175,152
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$47,772	$47,772	$47,772
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$20,000	$10,000
Subtotal Cash Spent	$1,048,474	$1,193,549	$1,232,924
Net Cash Flow	$25,295	$17,539	$46,280
Cash Balance	$172,276	$189,815	$236,095

Pro Forma Balance Sheet
	Year 1	Year 2	Year 3
Assets
Current Assets
Cash	$172,276	$189,815	$236,095
Inventory	$37,839	$39,175	$38,109
Other Current Assets	$73,311	$73,311	$73,311
Total Current Assets	$283,426	$302,300	$347,514
Long-term Assets
Long-term Assets	$65,000	$65,000	$65,000
Accumulated Depreciation	$6,500	$13,000	$19,500
Total Long-term Assets	$58,500	$52,000	$45,500
Total Assets	$341,926	$354,300	$393,014
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	$58,194	$59,713	$61,398
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$58,194	$59,713	$61,398
Long-term Liabilities	$252,228	$204,456	$156,684
Total Liabilities	$310,422	$264,169	$218,082
Paid-in Capital	$440,000	$440,000	$440,000
Retained Earnings	($427,209)	($428,496)	($359,869)
Earnings	$18,712	$78,628	$94,801
Total Capital	$31,504	$90,131	$174,932
Total Liabilities and Capital	$341,926	$354,300	$393,014
Net Worth	$31,504	$90,131	$174,932

Pro Forma Profit and Loss
	Year 1	Year 2	Year 3
Sales	$1,073,769	$1,211,088	$1,279,204
Direct Cost of Sales	$371,416	$398,407	$406,976
Other	$0	$0	$0
Total Cost of Sales	$371,416	$398,407	$406,976
Gross Margin	$702,353	$812,681	$872,228
Gross Margin %	65.41%	67.10%	68.19%
Expenses
Payroll	$399,588	$400,788	$429,828
Marketing/Promotion	$18,656	$22,000	$25,000
Depreciation	$6,500	$6,500	$6,500
Leased Equipment	$12,000	$12,000	$12,000
Accounting/Payroll Processing	$6,600	$6,600	$6,600
Legal Retainer Fees	$2,400	$2,400	$2,400
Business Licenses & Permits	$6,000	$6,000	$6,000
Credit Card Expense	$18,576	$19,983	$21,107
Bank Fees	$1,200	$1,200	$1,200
Music & Entertainment	$3,744	$3,744	$3,744
Training / Employee Retention Programs	$0	$5,008	$6,008
Repairs & Maintenance	$9,000	$9,000	$9,000
Utility Services (Gas/Electric/Water/Sewer)	$24,996	$26,496	$27,821
Telephone/Communication Expense	$1,800	$1,800	$1,800
Insurance: Fire/Theft/Liability/Liquor/Product	$20,400	$21,624	$22,705
Restaurant Occupancy Cost (Lease)	$75,000	$77,250	$79,568
Payroll Taxes (FICA/FUTA/SUTA) & Employee Benefits	$0	$0	$0
Exterminator/Trash Removal	$4,800	$4,800	$4,800
Dishware/Uniforms/Cleaning Supplies/Decor	$11,760	$12,466	$13,089
Printing/Paper/Postage/Subscriptions	$9,156	$9,500	$9,500
Facility (Exterior Cleaning/Grease Trap/Hood/Windows,etc.)	$3,333	$3,640	$3,640
R&D Meals	$2,200	$2,400	$2,400
General Business Comps	$12,400	$22,850	$23,125
Owner Comps	$2,124	$2,124	$2,124
Other Expenses (ComAreaMaint, etc.)	$4,200	$4,200	$4,200
Total Operating Expenses	$656,433	$684,372	$724,158
Profit Before Interest and Taxes	$45,920	$128,309	$148,070
EBITDA	$52,420	$134,809	$154,570
Interest Expense	$19,189	$15,984	$12,640
Taxes Incurred	$8,020	$33,698	$40,629
Net Profit	$18,712	$78,628	$94,801
Net Profit/Sales	1.74%	6.49%	7.41%