August 2011

Table of Contents

1.0 Executive Summary .................................................................................................................... 1

1.1 Mission .......................................................................................................................................... 1
1.2 Keys to Success ........................................................................................................................ 1
1.3 Objectives.................................................................................................................................... 2
2.0 Company Summary ..................................................................................................................... 2
2.1 Company Ownership ............................................................................................................... 2
2.2 Start-up Summary ................................................................................................................... 3
Table: Start-up Funding ............................................................................................................ 3
Table: Start-up.............................................................................................................................. 4
3.0 Products and Services ................................................................................................................ 5
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ............................................................................................................. 5
Table: Market Analysis ............................................................................................................... 6
4.2 Target Market Segment Strategy ...................................................................................... 6
4.3 Service Business Analysis ..................................................................................................... 6
5.0 Strategy and Implementation Summary ............................................................................ 7
5.1 Sales Strategy ........................................................................................................................... 7
5.1.1 Sales Forecast.................................................................................................................... 7
Table: Sales Forecast ............................................................................................................. 8
5.2 Competitive Edge ..................................................................................................................... 9
5.3 Marketing Strategy .................................................................................................................. 9
6.0 Management Summary .............................................................................................................. 9
6.1 Personnel Plan ......................................................................................................................... 10
Table: Personnel ......................................................................................................................... 10
7.0 Financial Plan ............................................................................................................................... 11
7.0 Financial Plan ............................................................................................................................... 11
7.1 Important Assumptions ....................................................................................................... 11
Table: General Assumptions .................................................................................................. 11
7.2 Break-even Analysis .............................................................................................................. 12
7.2 Break-even Analysis .............................................................................................................. 12
Table: Break-even Analysis.................................................................................................... 12
7.3 Projected Profit and Loss ..................................................................................................... 13
7.3 Projected Profit and Loss ..................................................................................................... 13
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Table: Profit and Loss ............................................................................................................... 15

7.4 Projected Cash Flow .............................................................................................................. 15
Table: Cash Flow ........................................................................................................................ 16
7.5 Business Ratios ....................................................................................................................... 18
7.5 Business Ratios ....................................................................................................................... 18
Table: Ratios ................................................................................................................................ 18
7.6 Projected Balance Sheet ...................................................................................................... 19
7.6 Projected Balance Sheet ...................................................................................................... 19
Table: Balance Sheet ................................................................................................................ 19

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1.0 Executive Summary

JUICED is a dessert bar and bakery located in the Business Improvement District (BID) of
Washington DC. We can loosely be described as a quick-service restaurant where customers sit
around a bar and watch their desserts being made. The show, as well as the dessert, is our
main selling point.
JUICED will hold true to its vision of being a new concept with an old fashioned feel in order to
become a favorite spot for DC natives. As the reported national leader in money spent in
restaurants, Washington DC is an optimal location for launching a new restaurant concept.
JUICED also hopes to become a destination for the thousands of tourists, both American and
foreign, who visit DC every year.
We plan to manipulate our location in the Business Improvement District to our utmost
advantage. Both tax incentives and high traffic due to the MCI Center will give us an edge as a
new business. As the BID fills up with new businesses over the next few years JUICED will
receive an added boost of increased traffic. Therefore, we are aggressively planning for a 50%
increase in sales the second year of business.
By creating a new niche in the restaurant industry, JUICED will increase sales by more
than Rs145,000 over three years while maintaining a gross margin of 80%. Through a
philosophy of "nothing but the best" regarding both product and service, JUICED will establish
itself as an exceptional dessert bar in Washington DC. We also will gain a competitive
advantage in take out and catered desserts.
This plan outlines our company concept, philosophy and forecasted financials. JUICED hopes to
find seed money of Rs300,000 to launch our business in June of 2003.
1.1 Mission
JUICED is a hospitality company dedicated to providing high-quality desserts in a comfortable
atmosphere for clients who seek a fun "gourmet" experience outside restaurants. We intend to
make enough profit to generate a fair return for our investors and to finance continued growth
and development in quality products. We also maintain a friendly, fair, and creative work
environment, which respects diversity, new ideas, and hard work.
1.2 Keys to Success

Dedication to the finest quality ingredients and "make it happen no matter what" customer
service.
Ongoing employee education and recognition programs.
Give back to the community.

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7,000,000
6,000,000
5,000,000
Sales

4,000,000

Gross Margin
3,000,000

Net Profit

2,000,000
1,000,000
2012

2013

2014

1.3 Objectives
1.
2.
3.
4.

Attain sales of Rs.5,000,000 in the first year.

Increase second year sales by 10% and third year by 15%.
Start the roof top by the end of the 1st year.
Expand to two shops by the third year of business.

2.0 Company Summary

JUICED is a dessert and juice bar concept based in the Business Improvement District of
Lahore. It emphasizes handmade gourmet desserts in a casual atmosphere. Watching your
dessert be prepared right in front of you is the unique selling point of our business.
2.1 Company Ownership
Jucied is a Partenership seeking seed money between two cousins Furqan Tariq and Shehman
Tariq. Incorporation will be decided at a later date as investors are secured.

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2.2 Start-up Summary

Our start-up costs come to Rs1,600,000 which is mostly kitchen equipment, store furnishings
and construction, and starting inventory expenses associated with opening our first store. The
start-up costs are to be financed by outside investment. The assumptions are shown in Table 1
and Illustration 2.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

R2,500,000
R130,000
R1,660,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

R30,000
R100,000
R0
R100,000
R130,000

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

R0
R0
R0
R0
R0

Capital
Planned Investment
Investor 1
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

Total Capital and Liabilities

Total Funding

R300,000
R0
R1,360,000
R1,660,000
(R1,530,000)
R130,000

R130,000
R1,660,000

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Table: Start-up
Start-up

Requirements

Start-up Expenses
Legal

R20,000

Office Supplies
Beginning Inventory

R50,000
R25,000

Sommelier consulting
Menus, etc
Rent
Design & Construction
Research and Development

R0
R30,000
R75,000
R1,000,000
R0

Furnishings

R200,000

Expensed Equipment
Dishes, silverware, glassware, etc

R125,000
R5,000

Total Start-up Expenses

R1,530,000

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

Total Requirements

R100,000
R30,000
R0
R0
R130,000

R1,660,000

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3.0 Products and Services

JUICED sells gourmet desserts coupled with exceptional customer service in a comforting
atmosphere. Customers can dine-in and watch the chef create their dessert. We also offer
carry-out to prepare our desserts at home or have a special cake for a celebration.
We will also offer special promotions such as After School Cookie Club. Moms will be
encouraged to bring in their children for milk and cookies they help prepare! Or moms can
come in with friends for some relaxing time away during our Tea Time. And to promote JUICED
as a choice for celebrating, we will offer a large table that can be reserved for parties.
4.0 Market Analysis Summary
JUICED focuses on local markets, with a special focus on restaurant and ice cream shop
customers. Lahore provides an excellent climate for our dessert bar as households there spend
more money dining out than anywhere else in the country.
4.1 Market Segmentation
Our market is divided into four different psychographics: Comfort Creatures, Celebrators,
Soccer Moms, and Gourmet Wanna-bes. They represent groups of people sharing similar
behavior patterns and reasons for patronizing JUICED.
Comfort Creatures are mainly white collar workers who are driven by success and prestige yet
miss homemade comfort foods of their childhood. They may stop in on their own or bring
clients in for a gourmet dessert experience.
Celebrators are just that - people celebrating special occasions. Birthday, anniversary,
graduation, valentine's day, etc., families and loved ones will gather at JUICED over sumptuous
desserts and a festive atmosphere.

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Soccer Moms actually encompasses all family members. JUICED is a gathering place where
families are welcome and feel comfortable. "Moms" can come in for after school milk and
cookies with their children and relax while we pamper the little ones. Or they can meet up with
friends for our Tea Time - a little civilized time stolen in the midst of a busy day.
Table: Market Analysis
Market Analysis
2001
Potential Customers

2002

2003

2004

2005

Growth

CAGR

Comfort Creatures

10%

3,000

5,500

6,050

6,655

7,321

24.99%

Celebrators

15%

1,000

5,750

6,613

7,605

8,746

71.97%

Soccer Mom's

20%

500

5,500

6,050

6,655

7,321

95.61%

50.99%

4,500

16,750

18,713

20,915

23,388

50.99%

Total

4.2 Target Market Segment Strategy

We have specifically targeted segments of people with an appreciation for delicious desserts
and a need for comfort and relaxation. JUICED is a haven for the busy & successful who want
to treat themselves to something soothing and a little sinful! It doesn't take a lot of time, yet is
so rewarding. These people will value the high quality product presented without pretension.
Our customers will also appreciate the fun and fast service - whether celebrating a birthday or
stopping in before a concert at the MCI Center.
4.3 Service Business Analysis
Although JUICED is creating a new niche in the food service industry, we do share similarities,
and therefore compete with several kinds of quick-service dessert businesses:

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1. Restaurants: any restaurant offering dessert.

2. Ice Cream Shops: Baskin & Robbins, Ben & Jerry's, etc.
3. Donut and Coffee Shops: any place coffee and pastries are available for carry-out or dine-in
consumption.
4. Supermarket: in-store bakeries as well as frozen specialty desserts offer some competition.
5. Bakeries: free-standing traditional bakeries.
5.0 Strategy and Implementation Summary
Convenience is in the eye of the beholder. By being a convenience store, we will focus mainly
on customers located within a close proximity of The Coffee Break.
Word-of-mouth will be our largest market promoter. Students and business people will find the
convenience and quality of The Coffee Break to be one that others should know about. In order
for initial customers to be found, a distribution of flyers will be an inexpensive way of notifying
those on campus.
With word-of-mouth and concentrating on the concentrated market, we will be able to assist
more customers at a higher level of quality while also conserving efficiency.
5.1 Sales Strategy
1. We need to sell the company as well as the product. Just as Al Nakhal became synonymous
with great coffee drinks, JUICED will come to be known as a gathering place with
spectacular desserts.
2. We have to sell not only an amazing "show" as the desserts are created, but also an above
and beyond service team who are knowledgeable and friendly. People will always feel
welcome and at home at JUICED.
The Yearly Total Sales chart summarizes our ambitious sales forecast.
5.1.1 Sales Forecast
Our Sales Forecast shows modest estimates for the first year of operations beginning in May of
2003. After establishing JUICED as 'the' place for sweets and celebrations, we project
aggressive sales increases for the following years. In the second year of operation we estimate
sales increase of 30% and of 50% in the third year for desserts, POP and carry-out. We are
planning a 10% increase in Weekly Lesson fees each of the two following years while keeping
costs constant.
Our cost of sales is based on an average food cost of 20% for dine in desserts and 15% for
point of purchase items, carry-out and weekly lessons. We project a consistent food cost
percentage of these amounts for the following two years. Keeping food costs low while sales
increase is vital to the profitability of JUICED.

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Table: Sales Forecast

Sales Forecast
FY 2002

FY 2003

FY 2004

Dessert Sales

R267,689

R216,000

R280,800

POP Sales

R115,793

R3,445

R5,167

Carry Out

R99,071

R6,240

R9,360

Englisg Desi

R165,142

R0

R0

Cocktail Juice

R210,871

R0

R0

Cocktail Cake

R52,315

R0

R0

R0

R0

R0

R910,881

R225,685

R295,327

Sales

Cokctail Icecream
Total Sales

Direct Cost of Sales

FY 2002

FY 2003

FY 2004

Dessert Sales

R51,304

R43,200

R56,160

POP Sales

R398

R936

R775

Carry Out

R765

R936

R1,404

Weekly Lessons
Subtotal Direct Cost of Sales

R2,160

R2,160

R2,160

R54,627

R47,232

R60,499

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5.2 Competitive Edge

Our competitive edge is our unique niche in an old market. Although restaurants, cafes,
bakeries, ice cream shops, Juice bars etc have an established position in the marketplace, none
are quite like JUICED. We are offering the customers a completely new experience and far
higher quality product. Nowhere else will they find a professional chef preparing gourmet
desserts right in front of them. The amazing popularity of the Food Network is proof of the
public's new-found interest in being a spectator in the kitchen.
5.3 Marketing Strategy
JUICED' marketing strategy will be education of the consumer and subsequent word-of-mouth.
We will become known as a unique dining experience as well as a superior pastry shop.
Customers will be reached through fliers, newspaper advertisements and special holiday
promotions.
Location will also play a crucial role in marketing and promotion. The business will be located in
high-traffic retail area in Washington, DC known as the BID. Washington DC's Business
Improvement District offers many incentives to businesses operating there. Additionally, there
is the traffic that will come from being located near the MCI Center.
JUICED will target progressive and generally well-educated and affluent consumers who are
interested in trying new products and experiences and are dissatisfied with the limited selection
and lack of personal service found in grocery store bakeries, neighborhood cafes and ice cream
shops and area restaurants.
6.0 Management Summary
JUICED will be slow to hire people in the first few years of operation, but very loyal to those
who are hired. Initially all employees will be part-time as the majority of the work will be done
by the chef-proprietor. As the company grows, new employees will be trained and supervised
by original employees who have been promoted to a leadership position. It is our belief that

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employees who are dedicated to the success of JUICED should be rewarded. They will be
leaders in our future store developments.
6.1 Personnel Plan
Our Personnel Plan begins at ground zero with the founder being the only employee. Wendi
James, the chef and proprietor, will initially serve as the only dessert bar chef, as well as
the store manager and the instructor for the weekly lessons. Being a graduate of Le Cordon
Bleu in Paris, France with experience in three five-star restaurants she is well prepared for the
jobs of chef and instructor. In addition, her degree from the University of Illinois, C-U in
Restaurant Management equally prepares her for the managerial aspects of the business.
JUICED intends to promote from within and reward the best employees with leadership roles.
Our opening employment goal is 4 with a goal to increase to 7 by the end of the first year, 10
the second year and 12 the third year. We realize that this is very aggressive staffing, but
intend to hire culinary professionals who are used to the demands of the restaurant
business. By this hiring philosophy, we will be able to operate with fewer, but more productive
employees and reward them accordingly. From that point we intend to increase the
responsibilities of each employee as opposed to hiring more people. Thereby rewarding those
who have worked hard to establish JUICED as a superior dessert shop. These people will then
be vital in our expansion as we open new stores.
Table: Personnel
Personnel Plan
FY 2002

FY 2003

FY 2004

Chef/Proprietor
Baker
Host
Dessert Bar Assistants
Dishwasher/Busser
Total People

R28,800
R3,920
R4,347
R7,200
R5,796
7

R31,680
R4,312
R4,347
R7,920
R5,760
10

R34,848
R6,720
R4,347
R8,712
R5,760
12

Total Payroll

R50,063

R54,019

R60,387

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7.0 Financial Plan

It is key to our financial success to grow JUICED not just as a dessert bar, but as a company.
We are looking for an investment of Rs300,000 seed money with the hopes of eventually selling
an established chain of dessert bars or establishing our company as a gourmet franchise. This
means we must always be reinvesting in the future of JUICED.
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following
table. The key underlying assumptions are:

We assume a slow-growth economy, without major recession.

We assume of course that there are no unforeseen changes in technology to make products
immediately obsolete.
We assume access to equity capital and financing sufficient to maintain our financial plan as
shown in the tables.

Table: General Assumptions

General Assumptions
FY 2002
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

FY 2003
2

10.00%
10.00%
30.00%
0

FY 2004
3

10.00%
10.00%
30.00%
0

10.00%
10.00%
30.00%
0

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7.2 Break-even Analysis

For our break-even analysis, we assume running costs including our full payroll, rent, and
utilities, and an estimation of other running costs. Payroll alone, at our present run rate, is only
about Rs4,000.
Margins are harder to assume that far in the future.

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

R11,371

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

6%
R10,689

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7.3 Projected Profit and Loss

An important assumption when calculating our P&L is the increase in sales from year to year.
We are basing our assumptions on the financial success of Finale Dessertery in Boston,
Massachusetts. They reported a 50% increase in sales the second year of business followed by
a 30% increase the next year. We feel JUICED can match, if not beat those sales, considering
the National Restaurant Association's analysis of the Bureau of Labor Statistics Consumer
Expenditure Survey states that Washington DC households spend the most at restaurants per
year.
It is also vital that we hold our food cost at 20% and 15% respectively for dine-in desserts and
POP, carry-out and weekly lessons. That will assure our gross margin remains high.

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Table: Profit and Loss

Pro Forma Profit and Loss
FY 2002

FY 2003

FY 2004

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

R910,881
R54,627
R0
R54,627

R225,685
R47,232
R0
R47,232

R295,327
R60,499
R0
R60,499

Gross Margin
Gross Margin %

R856,254
94.00%

R178,453
79.07%

R234,828
79.51%

R50,063
R2,300
R0
R0
R6,000
R2,400
R60,000
R7,509
R0

R54,019
R2,500
R0
R0
R6,000
R2,400
R60,000
R8,103
R0

R60,387
R2,500
R0
R0
R6,000
R2,400
R60,000
R9,058
R0

Total Operating Expenses

R128,272

R133,022

R140,345

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

R727,982
R727,982
R0
R218,394

R45,431
R45,431
R0
R13,629

R94,483
R94,483
R0
R28,345

Net Profit
Net Profit/Sales

R509,587
55.94%

R31,802
14.09%

R66,138
22.39%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

7.4 Projected Cash Flow

Being a quick-service oriented business, our cash flow depends on sales assumptions. It is
critical to keep our food cost low. We also need to be careful to balance slow (non-holiday)

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months with busy months with big holidays such as Christmas, Valentine's Day and Mother's
Day.

Table: Cash Flow

Pro Forma Cash Flow
FY 2002

FY 2003

FY 2004

R910,881
R910,881

R225,685
R225,685

R295,327
R295,327

R0
R0
R0
R0
R0
R0
R0
R910,881

R0
R0
R0
R0
R0
R0
R0
R225,685

R0
R0
R0
R0
R0
R0
R0
R295,327

FY 2002

FY 2003

FY 2004

R50,063
R284,708
R334,771

R54,019
R171,758
R225,777

R60,387
R168,084
R228,471

R0
R0
R0
R0
R0

R0
R0
R0
R0
R0

R0
R0
R0
R0
R0

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
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
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets

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Purchase Long-term Assets

Dividends
Subtotal Cash Spent

R0
R0
R334,771

R0
R0
R225,777

R0
R0
R228,471

Net Cash Flow

Cash Balance

R576,109
R676,109

(R92)
R676,017

R66,856
R742,873

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7.5 Business Ratios

Table: Ratios
Ratio Analysis
FY 2002

FY 2003

FY 2004

Industry Profile

0.00%

-75.22%

30.86%

4.56%

Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

1.15%
0.00%
100.00%
0.00%
100.00%

0.99%
0.00%
100.00%
0.00%
100.00%

1.16%
0.00%
100.00%
0.00%
100.00%

13.08%
33.35%
54.27%
45.73%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

6.49%
0.00%
6.49%
93.51%

1.67%
0.00%
1.67%
98.33%

1.87%
0.00%
1.87%
98.13%

24.73%
27.23%
51.96%
48.04%

100.00%
94.00%
78.24%
1.38%
79.92%

100.00%
79.07%
62.69%
1.04%
20.13%

100.00%
79.51%
55.61%
0.80%
31.99%

100.00%
24.26%
12.12%
0.98%
1.92%

Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

15.42
15.24
6.49%
113.82%
106.44%

59.85
59.26
1.67%
6.77%
6.65%

53.57
52.95
1.87%
12.81%
12.57%

1.37
0.74
59.26%
4.93%
12.10%

Additional Ratios

FY 2002

FY 2003

FY 2004

Net Profit Margin

Return on Equity

55.94%
79.67%

14.09%
4.74%

22.39%
8.97%

n.a
n.a

4.29
7.42
27
1.33

6.46
12.17
73
0.33

7.82
12.17
27
0.39

n.a
n.a
n.a
n.a

0.07
1.00

0.02
1.00

0.02
1.00

n.a
n.a

R639,587
0.00

R671,389
0.00

R737,527
0.00

n.a
n.a

0.75
6%
15.24
1.42
0.00

3.03
2%
59.26
0.34
0.00

2.54
2%
52.95
0.40
0.00

n.a
n.a
n.a
n.a
n.a

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

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7.6 Projected Balance Sheet

The balance sheet is quite solid. We do not project any real trouble meeting our debt
obligations - as long as we can achieve our specific objectives. We realize we've projected
aggressively, but are confident the location we've chosen for JUICED, as well as the dessert bar
concept itself , will be very successful.
At this point we haven't included any assets or depreciation in our calculations. Whether we
purchase new or used kitchen equipment will determine those numbers at a later date.
Table: Balance Sheet
Pro Forma Balance Sheet
FY 2002

FY 2003

FY 2004

R676,109
R7,842
R0
R683,951

R676,017
R6,780
R0
R682,797

R742,873
R8,685
R0
R751,558

R0
R0
R0
R683,951

R0
R0
R0
R682,797

R0
R0
R0
R751,558

FY 2002

FY 2003

FY 2004

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

R44,364
R0
R0
R44,364

R11,408
R0
R0
R11,408

R14,031
R0
R0
R14,031

Long-term Liabilities
Total Liabilities

R0
R44,364

R0
R11,408

R0
R14,031

R1,660,000
(R1,530,000)
R509,587
R639,587
R683,951

R1,660,000
(R1,020,413)
R31,802
R671,389
R682,797

R1,660,000
(R988,611)
R66,138
R737,527
R751,558

R639,587

R671,389

R737,527

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

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

Page 19

Appendix
Table: Sales Forecast
Sales Forecast
Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

R12,000
R200
R300
R300
R300
R300
R0
R13,400

R13,200
R200
R300
R0
R0
R0
R0
R13,700

R14,520
R200
R300
R0
R0
R3,614
R0
R18,634

R15,972
R5,286
R2,500
R9,586
R4,871
R3,929
R0
R42,143

R17,569
R9,214
R5,957
R13,200
R11,629
R4,400
R0
R61,969

R19,326
R6,700
R8,043
R14,300
R17,600
R5,029
R0
R70,998

R24,500
R10,829
R11,529
R19,171
R22,471
R5,657
R0
R94,156

R27,286
R11,993
R13,243
R21,843
R29,386
R5,971
R0
R109,721

R28,629
R14,957
R13,114
R22,314
R31,743
R6,129
R0
R116,886

R31,282
R16,129
R13,086
R22,471
R32,371
R6,443
R0
R121,781

R32,333
R18,371
R16,529
R22,157
R30,643
R5,029
R0
R125,062

R31,072
R21,714
R14,171
R19,800
R29,857
R5,814
R0
R122,429

Sales
Dessert Sales
POP Sales
Carry Out
Englisg Desi
Cocktail Juice
Cocktail Cake
Cokctail Icecream
Total Sales
Direct Cost of Sales

0%
0%
0%
0%
0%
0%
0%

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

R2,400

R2,640

R2,904

R3,194

R3,513

R3,864

R4,250

R4,675

R5,142

R5,656

R6,222

R6,844

POP Sales

R30

R30

R30

R15

R15

R15

R45

R8

R75

R15

R45

R75

Carry Out

R45

R45

R45

R45

R45

R75

R150

R30

R105

R30

R75

R75

R270

R270

R270

R135

R135

R135

R270

R135

R135

R135

R135

R135

R2,745

R2,985

R3,249

R3,389

R3,708

R4,089

R4,715

R4,848

R5,457

R5,836

R6,477

R7,129

Dessert Sales

Weekly Lessons
Subtotal Direct Cost of Sales

Page 1

Appendix
Table: Personnel
Personnel Plan
Chef/Proprietor
Baker
Host
Dessert Bar Assistants
Dishwasher/Busser
Total People
Total Payroll

0%
0%
0%
0%
0%

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

R2,400
R0
R483
R600
R483
4

R2,400
R0
R0
R600
R483
4

R2,400
R0
R0
R600
R483
4

R2,400
R0
R0
R600
R483
4

R2,400
R0
R483
R600
R483
4

R2,400
R560
R483
R600
R483
5

R2,400
R560
R483
R600
R483
5

R2,400
R560
R483
R600
R483
5

R2,400
R560
R483
R600
R483
5

R2,400
R560
R483
R600
R483
7

R2,400
R560
R483
R600
R483
7

R2,400
R560
R483
R600
R483
7

R3,966

R3,483

R3,483

R3,483

R3,966

R4,526

R4,526

R4,526

R4,526

R4,526

R4,526

R4,526

Page 2

Appendix
Table: General Assumptions
General Assumptions
Sep
Plan Month

Oct
2

Nov
3

Dec
4

Jan
5

Feb
6

Mar
7

Apr
8

May
9

Jun
10

Jul
11

Aug
12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Other

Page 3

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

R13,400

R13,700

R18,634

R42,143

R61,969

R70,998

R94,156

R109,721

R116,886

R121,781

R125,062

R122,429

R2,745

R2,985

R3,249

R3,389

R3,708

R4,089

R4,715

R4,848

R5,457

R5,836

R6,477

R7,129

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R2,745

R2,985

R3,249

R3,389

R3,708

R4,089

R4,715

R4,848

R5,457

R5,836

R6,477

R7,129

R10,655

R10,715

R15,385

R38,754

R58,261

R66,909

R89,441

R104,874

R111,429

R115,945

R118,585

R115,300

79.51%

78.21%

82.56%

91.96%

94.02%

94.24%

94.99%

95.58%

95.33%

95.21%

94.82%

94.18%

Payroll

R3,966

R3,483

R3,483

R3,483

R3,966

R4,526

R4,526

R4,526

R4,526

R4,526

R4,526

R4,526

Sales and Marketing and Other Expenses

R1,000

R0

R0

R0

R0

R300

R500

R0

R0

R0

R0

R500

Depreciation

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Leased Equipment

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R500

R500

R500

R500

R500

R500

R500

R500

R500

R500

R500

R500

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %

Expenses

Utilities
Insurance

R200

R200

R200

R200

R200

R200

R200

R200

R200

R200

R200

R200

R5,000

R5,000

R5,000

R5,000

R5,000

R5,000

R5,000

R5,000

R5,000

R5,000

R5,000

R5,000

R595
R0

R522
R0

R522
R0

R522
R0

R595
R0

R679
R0

R679
R0

R679
R0

R679
R0

R679
R0

R679
R0

R679
R0

R11,261

R9,705

R9,705

R9,705

R10,261

R11,205

R11,405

R10,905

R10,905

R10,905

R10,905

R11,405

Profit Before Interest and Taxes

(R606)

R1,010

R5,680

R29,049

R48,001

R55,704

R78,036

R93,969

R100,524

R105,040

R107,680

R103,895

EBITDA

(R606)

R1,010

R5,680

R29,049

R48,001

R55,704

R78,036

R93,969

R100,524

R105,040

R107,680

R103,895

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

(R182)

R303

R1,704

R8,715

R14,400

R16,711

R23,411

R28,191

R30,157

R31,512

R32,304

R31,169

Rent
Payroll Taxes
Other
Total Operating Expenses

Interest Expense
Taxes Incurred

15%

Net Profit

(R424)

R707

R3,976

R20,334

R33,600

R38,993

R54,625

R65,778

R70,367

R73,528

R75,376

R72,727

Net Profit/Sales

-3.17%

5.16%

21.34%

48.25%

54.22%

54.92%

58.02%

59.95%

60.20%

60.38%

60.27%

59.40%

Page 4

Appendix
Table: Cash Flow
Pro Forma Cash Flow
Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Cash Sales

R13,400

R13,700

R18,634

R42,143

R61,969

R70,998

R94,156

R109,721

R116,886

R121,781

R125,062

R122,429

Subtotal Cash from Operations

R13,400

R13,700

R18,634

R42,143

R61,969

R70,998

R94,156

R109,721

R116,886

R121,781

R125,062

R122,429

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

R0
R0

New Other Liabilities (interest-free)

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

New Long-term Liabilities

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Sales of Other Current Assets

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Sales of Long-term Assets

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

New Investment Received

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R13,400

R13,700

R18,634

R42,143

R61,969

R70,998

R94,156

R109,721

R116,886

R121,781

R125,062

R122,429

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

R3,966

R3,483

R3,483

R3,483

R3,966

R4,526

R4,526

R4,526

R4,526

R4,526

R4,526

R4,526

R237

R7,094

R6,572

R8,160

R15,129

R20,785

R23,653

R31,534

R38,764

R42,713

R44,201

R45,866

R4,203

R10,577

R10,055

R11,643

R19,095

R25,311

R28,179

R36,060

R43,290

R47,239

R48,727

R50,392

Sales Tax, VAT, HST/GST Paid Out

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Principal Repayment of Current Borrowing

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Other Liabilities Principal Repayment

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Long-term Liabilities Principal Repayment

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Purchase Other Current Assets

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Purchase Long-term Assets

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

Dividends

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R0

R4,203

R10,577

R10,055

R11,643

R19,095

R25,311

R28,179

R36,060

R43,290

R47,239

R48,727

R50,392

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

Subtotal Cash Received

Expenditures

0.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Subtotal Cash Spent

Net Cash Flow

R9,197

R3,123

R8,579

R30,500

R42,874

R45,687

R65,977

R73,661

R73,596

R74,542

R76,335

R72,037

Cash Balance

R109,197

R112,320

R120,899

R151,400

R194,274

R239,961

R305,938

R379,599

R453,195

R527,737

R604,072

R676,109

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

R100,000
R30,000
R0
R130,000

R109,197
R27,255
R0
R136,452

R112,320
R24,270
R0
R136,590

R120,899
R21,021
R0
R141,920

R151,400
R17,632
R0
R169,032

R194,274
R13,924
R0
R208,198

R239,961
R9,835
R0
R249,796

R305,938
R6,120
R0
R312,058

R379,599
R5,332
R0
R384,931

R453,195
R6,003
R0
R459,198

R527,737
R6,420
R0
R534,157

R604,072
R7,125
R0
R611,197

R676,109
R7,842
R0
R683,951

R0
R0
R0
R130,000

R0
R0
R0
R136,452

R0
R0
R0
R136,590

R0
R0
R0
R141,920

R0
R0
R0
R169,032

R0
R0
R0
R208,198

R0
R0
R0
R249,796

R0
R0
R0
R312,058

R0
R0
R0
R384,931

R0
R0
R0
R459,198

R0
R0
R0
R534,157

R0
R0
R0
R611,197

R0
R0
R0
R683,951

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Starting Balances

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

R0
R0
R0
R0

R6,876
R0
R0
R6,876

R6,308
R0
R0
R6,308

R7,662
R0
R0
R7,662

R14,439
R0
R0
R14,439

R20,005
R0
R0
R20,005

R22,610
R0
R0
R22,610

R30,247
R0
R0
R30,247

R37,342
R0
R0
R37,342

R41,242
R0
R0
R41,242

R42,672
R0
R0
R42,672

R44,336
R0
R0
R44,336

R44,364
R0
R0
R44,364

Long-term Liabilities
Total Liabilities

R0
R0

R0
R6,876

R0
R6,308

R0
R7,662

R0
R14,439

R0
R20,005

R0
R22,610

R0
R30,247

R0
R37,342

R0
R41,242

R0
R42,672

R0
R44,336

R0
R44,364

R1,660,000
(R1,530,000)
R0
R130,000
R130,000

R1,660,000
(R1,530,000)
(R424)
R129,576
R136,452

R1,660,000
(R1,530,000)
R283
R130,283
R136,590

R1,660,000
(R1,530,000)
R4,258
R134,258
R141,920

R1,660,000
(R1,530,000)
R24,593
R154,593
R169,032

R1,660,000
(R1,530,000)
R58,193
R188,193
R208,198

R1,660,000
(R1,530,000)
R97,186
R227,186
R249,796

R1,660,000
(R1,530,000)
R151,811
R281,811
R312,058

R1,660,000
(R1,530,000)
R217,589
R347,589
R384,931

R1,660,000
(R1,530,000)
R287,956
R417,956
R459,198

R1,660,000
(R1,530,000)
R361,484
R491,484
R534,157

R1,660,000
(R1,530,000)
R436,860
R566,860
R611,197

R1,660,000
(R1,530,000)
R509,587
R639,587
R683,951

R130,000

R129,576

R130,283

R134,258

R154,593

R188,193

R227,186

R281,811

R347,589

R417,956

R491,484

R566,860

R639,587

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

Page 6