1.0 Executive Summary
The purpose of this business plan is to secure $125,000, via a business loan, for the development of a breakfast restaurant based in Middletown Township, New Jersey. Matt’s Breakfast Spot LLC (“the Company”) was founded this year by Matthew Deutsch. The restaurant will launch its operations in the third quarter once the buildout is completed.
Operations
The primary focus of the Company’s revenue generating operations is to provide a wide range of breakfast and brunch options for its patrons within the Middletown Township and Monmouth County market area. A significant focus of these operations will be to provide exceptional egg-based entrées which will be complimented by serving premium pancakes, waffles, crêpes, and other common breakfast items. The business will generate substantial contribution margins from these operations.
The business will also provide an exceptional range of coffee and tea beverages, including specialty drinks such as cappuccinos, espressos, flat whites, and signature beverages.
The third section of this breakfast restaurant business plan will further discuss the operations of Matt’s Breakfast Spot.
The Financing
As noted above, the business is currently seeking a $125,000 business loan in order to complete the build out of Matt’s Breakfast Spot as well as acquiring the necessary furniture, fixtures, and equipment. Matthew Deutsch will contribute $25,000 towards venture. He has additional capital available to further the growth objectives of the business should it be required.
It is not anticipated that any additional capital will be required during the first five years of operation. In the event that Management wishes to develop a second location in the greater Monmouth County area, he may seek additional financing either as a business loan or in tandem with a private investor.
The Future
One of the main avenues of growth for Matt’s Breakfast Spot will come from the ongoing expansion of its catering operations. The business will have the ability to provide large scale trays featuring all entrées offered by the restaurant. The Company will also continually expand its delivery and takeaway operations as this will be a significant revenue driver that will also increase the brand-name visibility of this breakfast restaurant.
Market Overview
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The $125,000 of debt capital and $25,000 of equity capital will be used as follows:
2.2 Management and Investor Equity
Matthew Deutsch is the 100% owner of Matt’s Breakfast Spot LLC.
2.3 Exit Strategies
Breakfast restaurants carry a moderate price to earnings valuation given that they have relatively straightforward operations as well as significant contribution margins from the sale of breakfast fare. Although Mr. Deutsch has no long-term plans to sell the business, in the event that it is required to do so then a qualified business broker will be hired to manage the transaction. An attorney in CPA will also be retained to ensure a seamless with transition to a third-party restauranteur.
3.0 Operations
Matt’s Breakfast Spot will operate between the hours of 7 AM to 2 PM each day. The Company will take a unique approach to its operations in that almost all inventory inputs will be sourced from farms that are based in Monmouth County as well as the State of New Jersey. As this state has a number of family-owned farms, Management sees a significant opportunity to acquire premium and fresh ingredients at a reasonable price. This will be highly valued by the Company’s patrons.
As it relates to coffee and tea operations, the business will source these products from a number of global purveyors spanning a number of continents. This will be one of the major drivers to the location.
Beyond sit down service, Matt’s Breakfast Spot will provide delivery and take away options through a number of common application suites. This aspect of operations is highly important as it will significantly increase brand-name awareness well also driving substantial secondary revenues. Over the past ten years, the use of delivery applications for food service businesses has exploded in popularity. The Company will be able to effectively capitalize on this trend.
The business will also provide a wide range of catering services. As noted in the executive summary, the business will have the ability to provide large scale trays of the Company’s signature breakfast items. The Company will conduct direct outreach with businesses and event planners in the market in order to further this aspect of operations.
4.0 Overview of the Organization
4.1 Registered Name
Matt’s Breakfast Spot LLC. The business is registered as a limited liability company in the State of New Jersey.
4.2 Commencement of Operations
Matt’s Breakfast Spot will commence operations in the third quarter of this year.
4.3 Mission Statement
To provide exceptional breakfast and brunch fare and an affordable price to the Monmouth County public.
4.4 Vision Statement
To become recognized as a local breakfast restaurant and community institution within Middletown Township.
4.5 Organizational Objectives
• Coordinate inventory sourcing efforts with organic farms throughout Monmouth County and the State of New Jersey.
• Implemented number of pre-launch marketing campaigns that will create significant awareness of the location prior to the grand opening.
• Use multiple online platforms in order to conduct delivery and take away operations.
• Adhere to all proper standards regarding the safe handling and preparation of food.
• Provide a stable place an employment for this breakfast restaurant’s staff.
• Potentially developed additional locations within Central New Jersey, which would not occur until after the fifth year of operations.
• Established ongoing relationships with event planners that will call on the business to provide breakfast fare for events.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the breakfast restaurant business plan will focus on the current economic climate, the industry, the customer profile, and competitive issues.
At this time, the economic climate of the United States is moderate. There has been significant volatility introduced to the market as a result of evolving trade policies, as well as changes to national fiscal policy. In turn, this is causing inflation to expand at a higher rate than what was originally anticipated. The Federal Reserve as well as the United States Treasury is taking appropriate measures to ensure that inflation remains relatively low.
It should be noted that the Middletown Township area as well as the greater Monmouth County market is a very population dense area that receives a substantial amount of tourist traffic. The Company will be able to capitalize on this highly economically stable market as it establishes its operations.
5.2 Industry Analysis
There are 700,000 companies that own and operate one or more food service-based locations. Each year, these businesses generate $1.2 trillion revenue while providing jobs for over 16 million people.
Restaurants and food service businesses are one of the country’s oldest in industries. The ongoing growth of this business will remain similar to that the economy as a whole in regards to increasing rates of inflation as well as natural population growth.
5.3 Customer Profile
Management will use the following demographic profile during its marketing operations:
• Annual household income of $55,000 to $100,000
• Will spend $15 per visit (per person)
• Lives within 10 miles of the Matt’s Breakfast Spot location
5.4 Competitive Analysis
Management has sourced a highly visible location within Middletown Township that will be used to conduct the businesses operations. There is no other breakfast restaurants located within a two-mile radius of the planned location. As such, the ongoing competitive threats faced by Matt’s Breakfast Spot are relatively low. However, the business will face competition among breakfast restaurants that are outside of the target market radius that offer take away and delivery options.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Matt’s Breakfast Spot will have sustainable operations as a result of the following:
• The farm to table approach specific for breakfast and brunch will find an immense audience within Middletown Township.
• A highly experienced owner, Matthew Deutsch, that has owned and operated several restaurants in the past.
• The business will generate substantial contribution margins from the sale of its premium coffee and tea beverages, which will be sourced from global purveyors.
• The Company will engage in catering which will drive substantial revenues as well as increasing brand invisibility.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued expansion in the Company’s direct outreach campaigns with event planners that will have the business provide breakfast at large scale events.
• Continue to expand the Company’s marketing operations to foster repeat patronage.
• Potential development of a second location within Monmouth County or a different market of Central New Jersey.
7.0 Marketing Plan
7.1 Marketing Objectives
• Engage a number of marketing strategies that will create significant brand name awareness throughout the entirety of Monmouth County.
• Leverage numerous online marketing strategies so that the business can be quickly found when breakfast restaurants are searched within the target market.
• Maintain strong relationships with community organizations within Middletown Township in Monmouth County.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• Matt’s Breakfast Spot will launch its operations in Middletown Township.
• Revenue will reach $473,000.
Year 2
• The Company will expand the scope of its regional marketing.
• Revenue will reach $535,000.
Years 3-5
• By Year 5, total revenue will reach $712,000.
• At this time, Management may develop additional locations.
7.4 Marketing Strategies
The Company will use a number of marketing strategies that will drive significant brand name awareness in the coming years that will highlight the exceptional cuisine offered by Matt’s Breakfast Spot.
Management has already coordinated with a commercial real estate brokers to find an appropriate location within Middletown Township. This location is going to be based on a highly traffic road that will be seen by thousands of people on a daily basis. There will be appropriate exterior signage that showcases the premium breakfast fare offered.
The Company will also maintain an expansive online presence through risk for proprietary website as well as all social media platforms. It should be noted that the Company’s website will be e-commerce enabled to that take away and delivery orders can be placed. This will be conducted in tandem with popular application delivery suites such as Uber Eats and DoorDash.
The Company will focus heavily on the fact that it sources this inventory is from organic farms throughout the State of New Jersey. As highlighted earlier, this farm-to-table model is extremely popular as many people have become far more conscious of where their food is produced. Management will engage in co-marketing opportunities with its farming partners to further increase visibility.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• Matt’s Breakfast Spot will acquire $125,000 in debt capital to establish operations.
• The Company will have a compounded annual growth rate of 11%.
• Matthew Deutsch will contribute $25,000 towards the development of the business.
9.2 Financial Highlights
• On beverage sales, the company will recognize contribution margins of 85%.
• On brunch and breakfast entrées, the business will achieve 70% contribution margins.
9.3 Sensitivity Analysis
In the event of an extremely severe economic recession, the demand for food consumed outside of the home may decline. As noted throughout this document, Middletown Township as well as Monmouth County are highly wealthy areas that have a significant population density. This will ensure that the business is able to remain economically stable all servicing all underlying financial obligations.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• The business is offering its farm to table breakfast fare at an affordable price for the Middletown Township community.
• A highly experienced owner, Matthew Deutsch, who will be able to bring the operations of this business to profitability.
• The Company will support its coffee from global sources, which will drive substantial early morning patronage.
Weaknesses
• General operational complexities given that this is a food service business that operates within a highly defined timeframe each day.
• Ongoing competition from similar breakfast restaurants located within the greater target market area.
Opportunities
• Potential development of additional Matt’s Breakfast Spot locations in Central New Jersey.
• Expansion of the Company’s catering operations as this will produce substantial profits for the business.
• Natural growth as a result of the increasing population.
Threats
• Disruptions in the food supply chain could cause the operating cost of the business to increase.
• A potential competitor could establish a similar restaurant within the target market radius.
Appendix B – Critical Risks
Development Risk – Low
Matthew Deutsch has already sourced the potential location that will be used at the house, Matt’s Breakfast Spot’s operations. The buildout will commence as soon as the capital sought in this document has been secured.
Financing Risk – Low
The $125,000 a debt capital will be principally used for the build out of the location, as well as furniture, fixtures, and equipment. The substantial contribution margins generated from the sale of breakfast/brunch fare and beverages will reduce the Company’s financing risks.
Marketing Risk – Low
The business will continue to use the marketing strategies outlined earlier in this document with a focus on promoting its farm to table operations. The Company will engage in a number of community outreach initiatives in order to increase brand visibility.
Management Risk – Low
Matthew Deutsch is an experienced restaurant owner that has operated several cafés and breakfast focused venues over the past twenty years. He will be able to develop Matt’s Breakfast Spot as a premium restaurant within the Monmouth County market.
Valuation Risk – Low
The valuation risk is offset by:
• The Company is operating in an economically viable market area.
• Significant gross profits from the sale of breakfast and brunch entrees.
• Use of Uber Eats and DoorDash will broaden the Company’s target market radius.
• Catering operations will produce highly predictable profits.
Exit Risk – Low
Matthew Deutsch has no long-term plans to sell Matt’s Breakfast Spot to a third-party. In this event, the proper steps will be taken to ensure a fair market valuation for the business while also sourcing a suitable buyer.