FRANCHISE BUSINESS PLAN EVENT ELK RIVER HIGH SCHOOL 900 SCHOOL STREET NORTHWEST ELK RIVER, MINNESOTA, 55330 BEN GRENI and BRANDEN WEBER MARCH 4TH, 2018
Table of Contents
SLAPFISH MAPLE GROVE
I. Executive Summary
PAGE 1
II. Business History, Background, and Objectives
PAGE 4
III. Business Enviroment
PAGE 6
IV. Products
PAGE 8
V. Present Market
PAGE 10
VI. Competition
PAGE 12
VII. Marketing Plan
PAGE 13
VIII. Management and Organization
PAGE 15
IX. Business Resources
PAGE 16
X. Financial Plan and Data
PAGE 22
XI. Conclusion
PAGE 27
XII. Bibliography
PAGE 28
XIII. Appendix
PAGE 29
SLAPFISH
SLAPFISH MAPLE GROVE I. Executive Summary Slapfish Restaurants
Slapfish is a fast-casual restaurant. The chain first opened in 2011. Slapfish offers healthy, modern,
environmentally sustainable seafood entrees. Currently, Slapfish has the majority of its locations on the west coast, where it was founded. There is a demand for healthy, fast, tasty food in the Maple Grove area, so we plan to bring Slapfish to Maple Grove to capitalize on this need Menu Offerings
Slapfish offers a variety of menu options. This menu changes slightly due to variances in sustainable seafood availability. To satisfy a returning customer’s expectations, Slapfish offers staple items that are available yearround including our Lobster Roll, Grilled Shrimp Burrito, and Fish Tacos. These are some of the most popular items at current Slapfish restaurants, in addition to the rotating seafood options.
Location
The location of Slapfish Maple Grove will be one of the keys
to our success. We have selected a location in The Grove Village. This location is just steps away from the large Maple Grove Hospital which employs hundreds of medical professionals. In addition, The Grove Village is at the heart of a sprawling retail zone. Large retailers such as Target and The Home Depot will bring consumers to our area. In addition, the demographic in the statistical area surrounding our selected location is favorable to the operation of our restaurant. The median household income is above average, (around $97,000) within a 3 mile radius. In addition, the average age is relatively low. This is the exact demographic that we will target, making our location ideal.
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1
SLAPFISH MAPLE GROVE Target Market
We will target men and women between the ages of 30 and 45 with a median household income
of above $50,000. This market is looking for healthy food, and has the funds to pay for it. In addition, we will also target millennials because they value healthy food and care for the environment, however the Maple Grove population consists of a limited amount of this demographic. We will also target the daytime population surrounding our location, which includes the large amount of employees of the nearby Maple Grove Hospital. Marketing Strategies
Slapfish will advertise to our target market by utilizing a billboard on Interstate 94, as well as a
coupon mailing when we first open. This will allow us to introduce customers to our restaurant, and bring them in to try our food. We will encourage email capture in our restaurant, building a base of customer email addresses. We will utilize this to offer discounts and announce new menu offerings. In order to market to the daytime population surrounding our location, and we will distribute coupons to employees of local stores and businesses. Our goal with this is to bring these customers into our restaurant during their lunch. Slapfish currently uses social media platforms to promote all of its stores. We will further advance this by introducing our own store-specific social media pages.
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2
SLAPFISH MAPLE GROVE Securing Capital Source
Amount
Venture Capitalist
$90,000 (32%)
Financial Institution
$70,000
Owners
$25,000
Business Growth and ROI By the end of the fifth fiscal year, Slapfish Maple Grove would be valued at $804,300 which would bring the venture capitalist’s stake to $257,376, providing the venture capitalist with a 285.97% return on their investment. In addition, by the fifth fiscal year, Slapfish Maple Grove would generate a yearly net income of $111,314.58, of which the venture capitalist’s share would be $35,620.67.
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3
SLAPFISH MAPLE GROVE II. Business History, Background, and Objectives a. Company Description
Slapfish Restaurant was founded in 2011 as a food truck in Southern California by Chef Andrew
Gruel. Later, Slapfish converted to a fast casual restaurant due to its successes on the road. Slapfish Restaurant is a unique fast casual restaurant that offers menu items ranging from fish tacos to sandwiches. Part of the core of the Slapfish business model is being environmentally supportive, using seafood rated by international watchdog organizations such as Oceana.org, and Orion Seafood b. Short and Long Term Goals Short Term (3-6 Mo)
Mid Term (7-11 Mo)
Long Term (2-3 Yr)
Secure Funding
Begin Management Training
Purchase Additional Franchise Rights
Begin Location Modifications
Open Additional Locations
Secure Franchise Rights Secure Building Lease
Begin Team Member Training Open Slapfish Maple Grove
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4
SLAPFISH MAPLE GROVE c. Major Achievements
From the start, Chef Andrew Gruel’s mission has been to make Seafood sexy again.... From that
he has made Slapfish focus on making real American seafood sustainable, less expensive, and healthier. Over the years Slapfish Restaurants have had many achievements, below is a list of just a few of these achievements.
In May 2011 Andrew Gruel opened
Slapfish as a food truck on the streets of Southern California. By December of that year, and major successes of 3 food trucks, Mr. Gruel opened his first Brick and Morter Restaurant in Huntington Beach, California. By September 2013 Slapfish Restaurant realized that word was sweeping across the globe and began to franchise the brand. They struck a deal with a local franchising firm who planned to grow the brand to 500 locations over the course of the next 10 years. Over the next year Slapfish Restaurant grew from just one corporate location to over 7 locations in Southern California alone. This deal consisted of 6 franchise locations in Orange County, and a second corporate location in Laguna Beach. Slapfish Restaurant continued to expand when in January 2015 they sold another 3 franchise locations to open in the Orange County area.
By February 2015, the first Slapfish Franchise
location in Newport Beach opened and in May, Slapfish Restaurant was named to the 2015 Top 100 Movers and Shakers in the Fast Casual Industry
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5
SLAPFISH MAPLE GROVE d. Challenges
Slapfish Franchise, LLC sold their first franchise in September of 2013, which included a deal to
expand into The United Arab Emirates. This deal unfortunately fell through. Despite this small set back four and a half years ago, Slapfish Franchise, LLC has grown to almost 18 locations and plans to open at least five more within the coming months. e. Past Changes in Management
There have been no major changes in the company’s corporate structure since the forming of
Slapfish Franchise, LLC in 2013.
III. Business Enviroment
Slapfish Restaurant is the first ever Fast-Casual seafood restaurant. With the help of a PESTLE
analysis, the business enviroment for Slapfish Maple Grove can be identified.
P
Political:
Slapfish Restaurants do not have many political factors associated with them.
Slapfish relies solely on sustainable products. Unless organizations, like the FDA, were to approve more intense regulations regarding the Fast-Casual industry, Slapfish products will not change.
E
Economic:
As a Fast-Casual restaurant, economic changes have a large effecton the
profability of Slapfish Restaurants. Slapfish Maple Grove will not have to worry about product scarcity, however if the supply cost for our restaurant do indeed increase, Our prices will have to increase as well. This increase in pricing could result in customers purchasing entrees elsewhere. At the same time if the opposite holds true, profits and sales could increase as well.
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6
SLAPFISH MAPLE GROVE
S
Sociocultural:
These factors include the norm of society and certain fads that stereotype
different segments of the market. In recent years, many US customers have become more health conscientious about what they eat. This is a positive factor for Slapfish Maple Grove. as one of our goals is to provide the Minneapolis - St. Paul suburbs with a heathier seafood option.
T
Technological:
Not as applicable to Slapfish Maple Grove as most other companies. Slapfish
Restaurants are a food-based and service-driven company that relies on face to face interaction with its customers. However, Slapfish Maple Grove will utilize several online marketing resources like Instagram, and Twitter.
L
Legal:
This is an important factor in analyzing the enviroment for Slapfish Maple
Grove. We will be required to follow certain FDA and legal restrictions, as well as health deparments, that might harm the brand and make it more difficult for all products to be available.
E
Ecological:
Slapfish Maple Grove is an enviromental friendly restaurant focused on
providing sustainable products to customers.
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7
SLAPFISH MAPLE GROVE IV. Products and/or Services a. Products
The menu to the right is a typical Slapfish
restaurant menu. The fish options used in the restaurant often rotates as available from suppliers. Both the Seafood and Shellfish, offered by Slapfish Restaurants, is sustainably sourced and will not be offered if this is not the case. There are select staples, such as the lobster fries (shown below), that are always, available in addition to the rotating fresh fish. Slapfish offers a variety of beverages, including a unique brand of craft sodas which are found in few restaurants, and likely new to Minnesota Consumers.
Two of the most popular items on Slapfish’s
current menu are the Fish Taco and the Shrimp/ Lobster Rolls. These dishes, with their coastal flavors and origin, will truly bring the flavors of the ocean to the midwest. During the cold and dreary midwestern winters that Minnesota typically experiences, customers will enjoy the taste of a day at the beach with our menu and atmosphere. This is something that none of our competitors currently offer.
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SLAPFISH MAPLE GROVE b. Planned Additions
At its core, Slapfish Restaurants have been solely a Chef-Driven restaurant. Focusing on providing
only the finest, yet least expensive, Pacific Seafood. By bringing the restaurant and the brand to the Midwest area, Slapfish Maple Grove plans to add some “Minnesota� to our menu. Partnering with Slapfish chefs, we plan to offer selections native to Minnesota, such as walleye and sunfish.
Slapfish Maple Grove also intends to implement Fish-Fry Fridays, a popular tradition in the
Midwest due to the large population of Catholics who celebrate lent and must give up meat. This will include discounted prices on our Midwest seafood options. Slapfish Maple Grove believes these few additions to our already establish products and brand will help ensure a smoother entry into the market we wish to enter.
As far as additions to our Pacific Seafood offerings, Slapfish Restaurants founder Andrew Gruel
is always playing with new recipes for the Slapfish brand. However, at this time there are no planned additions to the menu.
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SLAPFISH MAPLE GROVE V. Present Market a. Present Market Descriptions
The city of Maple Grove consumers are looking for new, healthy options, and we plan to cater
to these consumers. Slapfish Maple Grove will be located in the heart of the booming northwest metro suburb of Maple Grove. Along with the success of Slapfish restaurants in other similar cities. Our selected location will be located near Interstate 94 and Minnesota State Highway 610 in The Grove Village retail center, which already provides a thriving market for several Fast-Casual Restaurants specializing in various industries like chicken, and mexican foods. Slapfish Maple Grove’s primary target market will consist of men and women ages 30-45, with a median household income over $50,000 located within 10 miles of our selected location, 15611 Grove Circle North, Maple Grove, MN 55369. Below, a chart shows geographical information, provided by the retail center. This information shows daytime, and household population as well as the median household income for a 3 mile radius. Statistical Area
1 Mile
2 Miles
3 Miles
Population
2,848
15,990
36,227
Daytime Pop.
4,292
6,443
16,251
Median HH Income
$77,678
89,440
97,039
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SLAPFISH MAPLE GROVE b. Growth Potential
The Minneapolis suburb of Maple Grove continues to grow. With steady population growth of
about 2% since 2011, and a constant growth of people who crave a less expensive, healthier seafood. Slapfish Maple Grove can expect there to be a customer pool for us to continue to draw on. Currently the population, as of 2016, for the city of Maple Grove is 69,576 people . c. Pricing Policy
Based on the products offered by Slapfish Restaurants, Slapfish Maple Grove will follow two
distinct pricing stratagies. The first version in which we will offer three different pricing brackets for our products: Signature, Must Have’s, and Sides. In the second version, Slapfish Maple Grove will follow a promotional pricing stratagy, The lalter will allow for quick growth as well as developed interest for Slapfish in the Midwest. These policies will allow us to fullfill our mission to make seafood sexy again. d. Seasonal Factors
Slapfish restaurants, a majority of which are in the southwestern United States, tend to operate
with patio seating year-round. Slapfish Maple Grove however will only be able to operate this amenity part-time. We will close this area of our restaurant down during the winter month. Besides this, seasonal factors will be virtually non existent for Slapfish Maple Grove. If a particular seafood or shellfish is not available due to these factors, Slapfish Restaurant will simply adapt the menu and our offerings to meet these needs.
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SLAPFISH MAPLE GROVE VI. Competition a. Competitors Type of Restaurant
Example Competiors
Fast-Casual Restaurants
Chipotle Mexican Grill, Raising Canes, Noodles and Company, Leeann Chins
Full Service Seafood Restaurant
Red Lobster, Joe’s Crab Shack, Bonefish, Oceanaire
b. Competitve Advantage
Slapfish Maple Grove has the unique ability to compete in the Fast-Casual industry on two fronts.
In the current fast-casual industry, there is nothing similar to Slapfish Restaurants. While other fast-casual restaurants have been developing a brand for years, Slapfish is just beginning. This allows us to provide cleaner, and healthier meals to our customers, as Slapfish has not fallen to just sustaining a profit.
In comparison to classic seafood restaurants, Slapfish will provide a less expensive, healthier, and
quicker option. Traditional seafood restaurant meals are highly caloric and made of unnatural products. Slapfish meals have been demonstrated to be much healthier, and made with fresher, more natural ingredients. In addition, Slapfish Maple Grove will offer a much faster seafood option, as opposed to a sit down style seafood restaurant. These days, consumers stress the need for convience, something classic seafood restaurants cannot offer, unlike Slapfish. c. Competitve Disadvantages
As the city of Maple Grove has been a growing edge city for years. Brands have formed and cus-
tomers have made more of a connection with other fast-casual restaurants. By entering the market some time after other fast-casual restaurants like Chipotle, and Noodles and Company, Slapfish Maple Grove anticipates there may be some difficulty in promoting our restaurant over others. However, once we have been established, and have grasped some of the Fast-Casual market share, we anticipate that growth for Slapfish Maple Grove will prosper.
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SLAPFISH MAPLE GROVE VII. Marketing Plan a. Target Market
Slapfish Maple Grove’s primary customer will be the average business
man or women whose office is located within the Maple Grove Area. This
PRICE
person will be looking for a healthier, and less expensive alternative to seafood and shellfish for their mid-day meal. Slapfish Maple Grove plans to target this
HEALTH
person within a ten mile radius of our location in The Grove Village.
Our secondary customer will be families of three or more, located
within a ten mile radius of our location. These families will be looking for a
SUSTAINABILITY
healthier, and less expensive meal. They will also be looking for a quick-eat seafood or shellfish dinner. We will also target the staff and guests of the large Maple Grove Hospital that is within walking distance to our restaurant. $60,000 Household Income, Psychographics
Demographics
Both Daytime Population, and Families ple Competiors Interested in healthier, less expensive Seafood and Shellfish alternative
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SLAPFISH MAPLE GROVE b. Existing Marketing Stratagies
Slapfish currently utilizes social media as its primary form of marketing. There is no marketing
royalty, meaning the majority of marketing will be done locally by Slapfish Maple Grove. However, Slapfish does offer an aesthetically pleasing, easy-to-navigate website that clearly highlights Slapfish product offerings. This website will allow customers to have an idea of what we offer in detail (including nutritional facts, and environmental information), in order to introduce customers to Slapfish prior to their visit.
c. Marketing Strategies
Slapfish Maple Grove plans to use several guerilla marketing strategies. This will include
advertisements at local office buildings. We will also use roadside marketing, like billboards. electronic mail communications, text message marketing, and social media marketing will also be implemented in order to create and grow Slapfish Maple Grove’s Market. We will distribute coupons to hospital employees, in order to entice them in to Slapfish during their lunch break. In addition, we will distribute flyers prior to our opening, as well as while we are open, in order to reach families who may not recognize our brand. We will also try to partner with local television shows that have food segments.
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SLAPFISH MAPLE GROVE VIII. Management and Organization a. Strengths and Weaknesses of Management Team
Slapfish Maple Grove’s management will consist of two primary owners, Ben Greni and Branden
Weber. Slapfish Maple Grove will also hire a General Manager and an Inventory Manager. These managers will be required to have a minimum of three years of experience and a prior management-level employment for a fast-casual restaurant. The combination of this management team will pave the way to success for Slapfish Maple Grove. Shown Below is a graphic that illustrates the management team hierarchy that Slapfish Maple Grove will use. One of the potential weaknesses that could result from our management team is the communication with Slapfish Franchise, LLC due to their distance from us. We will alleviate this by communicating frequently and clearly.
Slapfish Franchise, LLC Management Team
PRIMARY OWNER and CEO
PRIMARY OWNER and CFO
GENERAL MANAGER
INVENTORY MANAGER
b. Plan for Management Team
The combined experiences of the management team will enable success for Slapfish Maple
Grove immediately. Each employee will meet the required training which will enable a fun and energetic working environment here at Slapfish Maple Grove.
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SLAPFISH MAPLE GROVE c. Management Succession Plan
As an effort to prepare the company for a transition in leadership, whether foreseen or unforseen.
Slapfish Maple Grove will have a succession plan in place to continue a smooth shift in management. Should one of the franchisees leave the company for any reason, the franchisee, and the managers will assume the duties that were previously performed by the franchisee. The shares owned by the franchisee will also be divided equally among all share holders in order to eliminate a change in voting power.
Should both franchisees leave the company for any reason, the control of the company will
pass to the remaining stakeholders, and the shares owned by the franchisees will be divided up equally among the stakeholders.
If a key member of the management team leaves the company, is terminated, retires, or passes
away, the franchisees and shareholders will evaluate all remaining members of the organization who have the potential to assume a management role. After transferring the role to the new member of the management team, they will be required to attend a training seminar in Huntington Beach, CA to ensure a smooth transition into his or her new role. d. Plan for Additional Management
As previously stated, the first year for Slapfish Maple Grove will have a management team that
consists of two primary of owners and three operation managers. As the business grows, Slapfish Maple Grove will look to hire additional management to help the business operations continues.
IX. Business Resources a. Major Operating Equipment to Purchase
Slapfish Maple Grove will be required to purchase various kitchen equipment required for
operation. Slapfish Maple Grove will also be required to purchase both indoor and patio furniture, as well as various furnishings, Slapfish Franchise LLC. will provide the Maple Grove location with for a fee as part of the franchise agreement. Slapfish Franchise, LLC also requires all franchises to purchase a Laptop Computer, a Business Telephone, and Office Supplies. Slapfish Maple Grove will also have to purchase a point-of-sale (POS) system that will accept all major forms of payment.
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SLAPFISH MAPLE GROVE b. Major Suppliers, Locations, and Payment Terms
After careful consideration and thought based on our target markets, Minnesota’s first Slapfish
Restaurant will be located in Maple Grove, MN. By being located in The Grove Village we will have easy access to the required supplies necessary for a Slapfish Restaurant. We expect to pay approximately $3943.50 in rent per month. The Grove Village will allow for optimal traffic. The eight building retail power house includes both a Target, and a Home Depot store. The Grove Village is also nearby grocery store giant HyVee. However, Slapfish Restaurant will be competing with several other Fast-Casual Restaurants such as Chipotle Mexican Grill. The space also has one of the lowest retail complex crime rates. This will help allow Slapfish Maple Grove to create a family-friendly environment, and hopefully erase all safety concerns for our customers. We plan to source our ingredients from pre-approved nationwide suppliers that meet the Slapfish quality standards. We will also source locally when possible and seasonably appropriate. Being located in the Minneapolis area will offer a plethora of options for sourcing our seafood ingredients within a timeframe that keeps them fresh. We anticipate a Net 30 payment agreement with many of our suppliers. c. Outside Resources Needed
Slapfish Maple Grove will use several outside resources, not provided by Slapfish Franchise,
LLC. Slapfish Maple Grove will mainly use an outside source of capital to begin the business with. We will also use a cloud service, such as Microsoft OneDrive or Google Drive to store information digitally to allow access from any location. Slapfish Maple Grove will also need to use an advertising services local to the area such as Lamar, or Franklin Graphics. Slapfish Maple Grove will also use a local dealer to purchase or lease a company vehicle through, and the owners of Slapfish Maple Grove also plan to use entrepreneurship education resources to help ensure success for the business.
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SLAPFISH MAPLE GROVE d. Quality Control Procedures
Slapfish Maple Grove will assess quality-control for three different areas of our business: Legal,
Operational, and Health.
Legal
Operational
Building Safety Codes will be up-to-date at all times
Health Code Inspector will visit quarterly to maintain a high grade for the Slapfish will remain current business on all papers required by both Slapfish Franchise, Each employee will be LLC and the State of required to complete Minnesota training to ensure smooth operations
Health Slapfish will provide the cleanest, healthiest, and most sustainable Seafood and Shellfish
e. Availability of Skilled Labor
With a consistent population growth for the city of Maple Grove we can expect to always
have skilled labor readily available. At Slapfish Maple Grove our management team will be made up of primarily experienced restaurant employees. We can expect a large demand for these positions as we will offer both benefits and other bonuses. However, a majority of our team members will be made of people who are just entering the workforce for the first time. We expect with each additional year of operations to have a constant flow of skilled employees.
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SLAPFISH MAPLE GROVE f. Training
Slapfish Restaurants requires all managers and owners attend a training seminar at Slapfish
Franchise, LLC headquarters in Huntington Beach, California. Slapfish Restaurants anticipates this will cost approximately $1000 per person for airline, hotel, meal, etc. as disclosed in the Franchise Disclosure Document. Therefore Slapfish Maple Grove will anticipate a budget of $4000 for management to attend this training seminar. Slapfish Maple Grove will also anticipate that they will have additional expenses in team member training, prior to our initial opening. For this reason Slapfish Maple Grove will endure an additional, $1000 in expenses for training. This will result in Slapfish Maple Grove anticipating $5000 as a cost of training and upgrading the skills of labor and admin employees.
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SLAPFISH MAPLE GROVE g. Projected Number of Employees
Slapfish Maple Grove will consist of two primary owners, Ben Greni and Branden Weber. Ben Greni
will oversee the both the financial and inventory ordering for Slapfish Maple Grove. Branden Weber will oversee the operations, marketing, and growth of Slapfish Maple Grove.
Slapfish Maple Grove anticipates the need to hire a part-time inventory manager to ensure we
always have the most fresh ingredients to provide to our customers. Slapfish Maple Grove also feels that we will need a part-time accountant that will handle a majority of the financial information for the business. The inventory manager and accountant will report to Ben Greni.
Slapfish Maple Grove also projects to hire approximately twenty to thirty part-time Kitchen Team
Members, and ten to fifteen part-time Front-of-House (FOH) team members, in addition to a full-time general manager to oversee both the kitchen and FOH staff. The general manager will report to Branden Weber
As Slapfish Maple Grove expands to other locations we will look to add more employees, both
Part-Time and Full-Time, to ensure the success of multiple locations.
The organizational chart, illustrated on the next page, suggests the hierarchy Slapfish Maple
Grove intends to follow..
As Slapfish Maple Grove expands to other locations we will look to add more employees, both
part-time and full-time, to ensure the success of multiple locations.
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SLAPFISH MAPLE GROVE h. Organizational Chart
As referenced to, on the last page, below shows the organizational chart for Slapfish Maple Grove.
In red you will find the full-time positions, and in brown you will find the part-time positons Slapfish Maple Grove intends to be hiring. Due to their roles, as suggested on the previous page, Branden Weber will serve the role of CEO, while Ben Greni will serve the Role of CFO. However, Slapfish Maple Grove is a partnership and the two will have equal decision making capabilities
Slapfish Franchise, LLC Management Team
PRIMARY OWNER and CEO
PRIMARY OWNER and CFO
BRANDEN WEBER
BEN GRENI
INVENTORY MANAGER
GENERAL MANAGER
TBD
TBD
FOH STAFF
TBD
KITCHEN STAFF
TBD
SLAPFISH
ACCOUNTANT
TBD
21
SLAPFISH MAPLE GROVE X. Financial Plan and Data a. Sales and Profit Trends
Slapfish will start off with a soft opening and after the initial two weeks we will have a grand
opening, with the intention of starting off with a steady customer basis. We plan to see steady growth throughout our first fiscal year, particularly during the second and third quarter due to warmer weather. In addition, we anticipate this growth to continue throughout the next three fiscal years, leveling off somewhat during the third fiscal year. As the city of Maple Grove, and the surrounding northwest suburbs of Minneapolis grow, we can expect our sales to reflect the population growth. We expect to be just shy of breaking even at the end of the first and second fiscal years, with the break even point being sometime early on in the third fiscal year. We will remain cash flow positive throughout our operation. Should we encounter unforeseen circumstances and require extra funding, we will either self-finance, or seek an additional loan from a financial institution.
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SLAPFISH MAPLE GROVE b. Sources of Capital
Owners Ben Greni, and Branden Weber want to introduce the people of Minnesota to pacific
seafood in a way that has never been done before. First, the owners will start by suppling $12,500 each, for a total of $25,000 towards the franchise. Second, we will also be requesting a $70,000 investment from US Bancorp at a 9% interest rate, to be paid in full by the third fiscal year. Lastly, we will be asking a venture capitalist for an additional $70,000 investmentment in exchange for 32% of the Maple Grove Location. Based on the stake that the investors will have in this location, their final worth of their share, after five years will be $257,376. This will provide them with an overall expected return of their investment of 185.97%.
The image to the above describes the
sources of capital as percentages in order to visualize where Slapfish will be recieving our investments.
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SLAPFISH MAPLE GROVE c. Two-Year Projected Operating Statement
Within our first fiscal year, Slapfish Maple Grove estimates that each of our quarterly revenues in
the first year will be $99,875.30, $106,437.20, $110,450.00, and $113,475.75 respectively. This will result in an annual revenue of $430,238.25. With our initial investment of $185,000, our net gain for the first fiscal year will be approximetly $1038.37. Statement of Projected Income FY1 Slapfish Maple Grove
Initial Investment
Q1
Q2
Q3
Q4
FY 1
Venture Capitalist
$ 90,000.00
$
-
$
-
$
-
$ 90,000.00
Financial Institution
$ 70,000.00
$
-
$
-
$
-
$ 70,000.00
Owners
$ 25,000.00
$ $
-
$ $
-
$ $
-
$ 25,000.00
Total Initial Investment
$ 185,000.00
$
-
$
-
$
-
$ 185,000.00
$
$ 106,437.20
$ 110,450.00
$
113,475.75
$ 430,238.25
Revenues Revenue
99,875.30
Expenses Payroll
$ 25,000.00
$
25,524.95
$
25,845.98
$
26,088.04
$ 102,458.96
Restaurant Equip and Maintenence
$ 35,500.00
$
500.00
$
500.00
$
500.00
$ 37,000.00
Store Setup, cleaning/maintaining
$ 37,250.00
$
250.00
$
250.00
$
250.00
$ 38,000.00
Training (Add'l payroll prior to Q1)
$
Franchise Fee
$ 50,000.00
-
$ 50,000.00
Royalty and Marketing Fee (%)
$
5,992.52
$
6,386.23
$
6,627.00
$
6,808.55
$
Rent (& Sec. Deposit)
$
13,830.50
$
11,830.50
$
11,830.50
$
11,830.50
$ 49,322.00
POS and Card Processing
$
799.00
$
Food and Scrap
$ 60,000.00
Insurance (Yearly)
$
2,500.00
Utilities/Security
$
Marketing and Grand Opening
5,000.00 -
-
851.50
$
883.60
$
907.81
$ 45,768.00
$
47,493.50
$
48,794.57
1,750.00
$
1,750.00
$
1,750.00
$
1,750.00
$
9,000.00
$
3,000.00
$
3,000.00
$
3,000.00
$ 18,000.00
Administrative/General/Office
$
7,000.00
$
1,000.00
$
1,000.00
$
1,000.00
$ 10,000.00
Total Operating Expenses
$ 253,622.02
$
96,861.18
$
99,180.58
$
100,929.46
$ 545,593.23
Operating Income
$
31,253.28
$
9,576.02
$
11,269.42
$
12,546.29
Loan Payment (Including Interest)
$
(17,151.66) $
(17,151.66) $
(17,151.66) $
Net Income
$
25,814.30
$
2,500.00
$
7,000.00
$
69,645.02
(17,151.66) $ (68,606.64) $
SLAPFISH
3,441.91
$ 202,056.07
1,038.37
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SLAPFISH MAPLE GROVE
Slapfish Maple Grove also projects that by our second fiscal year we will have a gross revenue of
$494,752.50. Due to various marketing tactics that Slapfish Maple Grove will employ, we project that an increase in customers will be the source of this 15% growth in our revenues between our first and second years. The resulting negative balance in fiscal year is a result of no new investment made to the business. The owners of Slapfish Maple Grove will have an extended line of credit with U.S. Bancorp to compensate for the losses in Fiscal Year 2. Statement of Projected Income FY2 Slapfish Maple Grove
Q1
Q2
Q3
FY 2
Q4
Revenues Revenue Fiscal Year Starting Balance Expenses Payroll Restaurant Equip and Maintenence
116,437.50
123,437.50
126,437.50
128,440.00
1,038.37
494,752.50 1,038.37
26,475.00
27,035.00
27,275.00
27,435.20
108,220.20
500.00
500.00
500.00
500.00
2,000.00
250.00
250.00
250.00
250.00
1,000.00
Store Setup, cleaning/maintaining
6,986.25
7,406.25
7,586.25
7,706.40
29,685.15
Royalty and Marketing Fee (%)
11,832.50
11,832.50
11,832.50
11,832.50
47,330.00
931.50
987.50
1,011.50
1,027.52
3,958.02
Credit Card fee
Rent
50,068.13
53,078.13
54,368.13
55,229.20
212,743.58
Food and Scrap Factor
2,500.00 1,750.00
1,750.00
1,750.00
1,750.00
7,000.00
Utilities/Security
3,500.00
3,500.00
3,500.00
3,500.00
10,500.00
Marketing
1,000.00
1,000.00
1,000.00
1,000.00
4,000.00
105,793.38
107,339.38
109,073.38
110,230.82
428,936.95
Insurance (Yearly)
2,500.00
Administrative/General Total Operating Expenses Operating Income
10,644.13
16,098.13
17,364.13
18,209.18
65,815.56
(17,151.66)
(17,151.66)
(17,151.66)
(17,151.66)
(68,606.64)
Loan Payment (Including Interest) (1,752.71) Net Income
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SLAPFISH MAPLE GROVE d. One-Year Projected Cash Flow Statement
For Slapfish Maple Grove, our first fiscal years cash flow is negative, but this will change by our
second year, when we will not have the additional costs we have to incur as a franchisee. This will result in a positive cash flow for that year.
Statement of Cash Flow Slapfish Maple Grove Q1 Operating Cash Flow Payments to Franchisor Revenues From Customers Payments to Employees Payments to Suppliers Financial Cash Flow Repayment and Interest on Loan Investing Cash Flow Purchase of Restaurant Equipment Initial Sources of Capital Venture Capitalist Financial Institution Owners Net Cash Flow
Q2
Q3
Q4
-$56,986.50 $99,875.30 -$30,000.00 -$132,129.50
-$6,986.50 $106,437.20 $25,524.95 -$64,949.99
-$6,986.50 $110,450.00 $25,845.98 -$66,707.60
-$6,986.50 $113,475.75 $26,088.04 -$68,032.88
-$17,151.66
-$17,151.66
-$17,151.66
-$17,151.66
$45,981.63
$91,431.85
$138,824.60
-$35,500.00
$90,000.00 $60,000.00 $25,000.00 $3,107.64
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SLAPFISH MAPLE GROVE XI. Conclusion
Slapfish Maple Grove intends to provide the Minneapolis - St. Paul area with healthier, less expensive,
and sustainable seafood in a Fast-Casual setting. In doing this, we plan to bring a whole new concept for seafood dining that the area has never seen before. We plan to secure financing from a few sources. First Slapfish Maple Grove is asking for $70,000 investment from US Bancorp at a 9% interest rate. Second Owners Ben Greni and Branden Weber will each invest $12,500 of their own money. Lastly, Slapfish Maple Grove will be asking for a $90,000 investment from a venture capitalist in exchange for a 32% stake in the Maple Grove location. At the end of the fifth fiscal year, Slapfish Maple Grove would be valued at $804,300 which would bring the venture capitalist’s stake to $257,376. This would provide the venture capitalist with a 285.97% return on their investment in the event of a sale.
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SLAPFISH MAPLE GROVE XII. Bibliograpy Gagliardi, Nancy. “Consumers Want Healthy Foods--And Will Pay More For Them.” Forbes, Forbes Magazine, 20 Feb. 2015, www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-want-healthyfoods-and-will-pay-more-for-them/#40a69ad375c5. “Health and Wellness the Trillion Dollar Industry in 2017.” Euromonitor International Blog, 28 June 2017, blog. euromonitor.com/2012/11/health-and-wellness-the-trillion-dollar-industry-in-2017-key-researchhighlights.html. Jacobson, Brent, and Ben Krsnak. The Grove Village Retail Center. Hemple Companies, drive.google.com/ drive/u/0/folders/1olgUbyIw-vpR22iQsiJZg54aw8Clx-uC. “QuickFacts - Maple Grove City, MN.” U.S. Census Bureau, U.S. Census Bureau, www.census.gov/quickfacts/ fact/table/maplegrovecityminnesota/PST045216. Slapfish - Franchise Discloser Document. Slapfish Restaurants, drive.google.com/drive/u/0/ folders/1olgUbyIw-vpR22iQsiJZg54aw8Clx-uC. Slapfish Press Packet. Slapfish Franchise LLC., drive.google.com/drive/u/0/folders/1olgUbyIwvpR22iQsiJZg54aw8Clx-uC.
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SLAPFISH MAPLE GROVE XIII. Appendix
Slapfish Maple Grove estimates that our customer base will continue to grow and therefore our
gross revenues will continue to grow as well. Over our first five years we expect our gross revenues to increase by 24.6%. By our third fiscal year we will also have a net gain of $35,748.46. Statement of Projected Income FY1-5 Slapfish Maple Grove
Year
Y1
Y2
Y3
Y4
Y5
Revenue
430,238.25
494,752.50
526,800.30
532,750.25
536,200.25
Total Operating Expenses
(545,593.23)
(428,936.95)
(422,445.20)
(423,228.45)
(424,885.67)
Loan Payment (Including Interest)
(68,606.64)
(68,606.64)
(68,606.64)
Net Income
1,038.37
(1,752.71)
35,748.46
109,521.80
111,314.58
\
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