1.0 Executive Summary
The purpose of this business plan is to secure $50,000 for the development of a Vietnamese restaurant that will specialize in Bánh Mì sandwiches. Bánh Mì Station LLC (“the Company”) intends to launch full scale operations in the fourth quarter of this year. The Company was founded by Matthew Deutsch. In order to keep cost low, the business will operate in a ghost kitchen capacity. The business will only provide delivery and take away options without any sit-down service.
Operations
The primary revenue driver for Bánh Mì Station will come from the ongoing sale of Bánh Mì sandwiches. These are highly popular and affordable meals that feature grilled meats as well as vegetables and hot peppers. In order to keep a highly streamlined menu the business will charge $10 as a flat rate per sandwich.
To complement these operations, the business will also provide a wide range of popular beverages that are either bottled or canned. There will be no alcohol service available at the ghost kitchen location.
The third section of this business plan will further document operations.
The Financing
As noted above, Bánh Mì Station is currently seeking $50,000 in order to commence operations. The terms of this funding are to be determined during negotiation. The funds will be primarily used for the following:
• Location development in Houston
• Opening inventories
• Working capital
If it is financially reasonable to do so, the Company may acquire additional rounds of capital to establish additional locations in the greater Houston metropolitan area. However, this document assumes that no further capital will be required as the business does not intend to establish an additional location until after the fifth year of operation.
The Future
Management will make ongoing and sustained reinvestment into the Company’s marketing operations so that becomes the preeminent Bánh Mì sandwich location within the greater Houston area. The company may also introduce additional menu items such as Phở, which is also a highly popular Vietnamese soup dish. As noted, the business may establish additional locations, but this is not anticipated to occur for a significant period of time.
Market Overview
Houston has a metropolitan area of eight million people. The median household income of this market is $79,000. The substantial population of this area will ensure profitability for this ghost kitchen.
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
An investment of $50,000 is required to launch operations. The funds will be used as follows:
2.2 Management and Investor Equity
This will be further discussed during negotiation.
2.3 Exit Strategies
Given the strong demand for profitable food service businesses, Bánh Mì Station could easily be sold to a third-party for a significant profit. However, Matthew Deutsch has no intention of diverting this business for a significant period of time. Given the low cost associated with operating in a ghost kitchen capacity, this business will produce substantial profits in the coming years, which can be used to establish additional locations as needed. In the event of a business sale, a formal valuation will be completed prior to marketing the business.
3.0 Operations
As noted in the executive summary, Bánh Mì Station will be actively involved with providing the general public with a wide range of premium Bánh Mì sandwiches. These sandwiches are served in a French baguette that features grilled meats, carrots, cucumber, and jalapeños. It is accompanied by a sauce that complements the underlying protein. To keep operations as streamlined as possible, the business will charge a flat fee of $10 per sandwich. Additions will not be permitted, although customers may request that certain items may be removed due to a potential food allergy.
The Company will operate solely in a ghost kitchen capacity in order to keep cost as low as possible. Customers will be free to come to the location in order to pick up their meal or to receive their fair through a delivery application suite. Bánh Mì Station will enroll among numerous application suites in order to ensure that a number of delivery options are available to patrons throughout the greater Houston metropolitan area.
In time, the Company may introduced additional items such as Phở, which is a highly popular soup that contains a protein, vermicelli, noodles, basil, and a unique broth which is simmered over a 24-hour period. This item could be easily introduced given the space of the ghost kitchen.
The business will provide its patrons with a wide range of nonalcoholic beverages, including sodas, bottled waters, and bottled juices.
4.0 Overview of the Organization
4.1 Registered Name
Bánh Mì Station LLC. The business is registered as a limited liability in the State of Texas.
4.2 Commencement of Operations
Revenue generating operations will commence in the third quarter of this year.
4.3 Mission Statement
To provide affordable Banh Mi sandwiches and Vietnamese fare from the Company’s ghost kitchen location.
4.4 Vision Statement
Bánh Mì Station’s vision is to provide a widely respected Vietnamese restaurant in the greater Houston area.
4.5 Organizational Objectives
• Remain within the letter of the law as it relates to providing food and beverages to general public.
• Implement a wide-ranging pre-launch marketing campaign, so that people are aware of the ghost kitchen from the onset of operations.
• Leverage multiple forms of online marketing in order to create a brand name awareness in the Houston market.
• Enroll among numerous delivery application suites in order to drive substantial revenue.
• Provide staff with a gainful place of employment that is stable.
• Showcase the business to food critics/reviewers throughout the greater Houston area that will write articles about the business.
• Source additional ghost kitchen locations where Bánh Mì Station can conduct operations if additional locations are to be developed.
• Maintain a committed program that position Bánh Mì Station as a community minded business.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the business plan will document the current economic climate, the customer profile, the industry, and the ongoing competition that the business will face moving forward.
At this time, economic climate with the United States is moderate. As a result of changing trade policies, there has been an increase in inflation. However, the US Federal Reserve, as well as major central banks are implementing appropriate policies that will abate inflation will also fostering ongoing economic growth.
It should be noted that the revenues the Bánh Mì Station will be relatively immune from challenging economic climate’s given the affordable pricing point for the Bánh Mì sandwiches that will be offered. By offering a ghost kitchen capacity, the business will be able to have highly controllable operating costs, which will ensure that the business can reach profitability very quickly.
5.2 Industry Analysis
As of this year, there are 700,000 restaurants and food service businesses with the United States. These businesses generate approximately $1.1 trillion per year and employs slightly under 16 million people. The growth rate of this industry is expected remain similar to that of the economy as a whole.
One of the unique trends in this industry, and one that Bánh Mì Station is capitalizing on, is the ghost kitchen concept. This way of providing food was established within the course of the pandemic in order to ensure that people could still receive takeout fare without having to come into contact with another person. Although the major issues with the pandemic have fully subsided, many smaller food service businesses find this business model to be advantageous given a low cost of operating this type of enterprise. The ability to receive orders through online communication has facilitated this sub segment of the overall food service industry.
5.3 Customer Profile
The following demographic profile will be used during the course of marketing operations:
• Household income of $50,000+
• Will spend $10 per visit (per person)
• Lives within 5 miles of the Bánh Mì Station location
5.4 Competitive Analysis
This business plan has been developed solely for sample purposes only. As such, a full competitive analysis was not completed. If this was a business plan specific for a client engagement, then a full analysis of all companies that offer a similar range of cuisine would be conducted. This would include examining their reviews, pricing, and distance from the client’s location.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Bánh Mì Station will have sustainable operations as a result of the following:
• Limited competition among companies that specialize in the sale of Bánh Mì sandwiches.
• The business is operating in a ghost kitchen capacity, which will allow the Company to operate with a great deal of economic stability while providing its fare at a competitive pricing point.
• The revenues of the business are relatively immune from negative changes in the economy given the affordability.
• Additional items, such as Phở, can be seamlessly integrated into the Company’s operations.
• The operations of the business are highly capable, including through a potential franchising program.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued expansion in the Company’s marketing campaigns throughout the greater Houston area.
• Development of additional locations within this market, given it substantial population density and economic activity.
• In integration of new menu items such as Phở that will drive additional revenue.
7.0 Marketing Plan
7.1 Marketing Objectives
• Engage in a wide raging pre-launch marketing campaign in order to increase awareness of the ghost kitchen.
• Use multiple delivery application suites in order to drive delivery orders.
• Engage in public relations so that the business is featured among a number of journals that circulate throughout the greater Houston area.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• First year revenue will reach $378,000.
• Gross profits will reach $280,000.
Year 2
• Revenue will reach $409,000.
• Gross profits will reach $302,000.
Years 3-5
• By the fifth year of operation, aggregate sales will reach $515,000.
• Gross profits will reach $381,000.
7.4 Marketing Strategies
Given that the Company who principally operate in a ghost kitchen capacity, the ongoing marketing will focus heavily on online channels. As has been one of the central themes throughout this document, the use of application suites will be of absolute utmost importance for ensuring that the business is able to generate a substantial amount of revenue from delivery and takeaway orders. During the development period, the business will focus heavily on enrolling in these platforms so that the business can immediately begin to generate revenue from the very first days of operation.
These operations will be complimented with a proprietary website. The platform will feature ecommerce functionality so that orders can be directly rooted through the platform for customer pick up. This website will undergo substantial search engine optimization so that when relevant searches for Vietnamese cuisine in the greater Houston metropolitan area are conducted, the business can be quickly found.
Bánh Mì Station will also maintain an extensive presence on all social media platforms. The Company will frequently post images as well as videos of the location and its operations. As the businesses operating in a ghost kitchen capacity, a number of videos that showcase behind the scenes operations will be created in order to create a substantial amount of interest as to how the business is able to produce its exceptional fare.
The Company will also distribute mailed advertisements within a 5-mile radius of the location in Houston. These mailed advertisements will include discounts on a customer’s order and they will also feature QR codes so that orders can be placed from their mobile devices.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• The business will have a compounded annual growth rate of 8%.
• The Company will acquire $50,000 of investment capital.
9.2 Financial Highlights
• Very low costs as the business operates in a ghost kitchen capacity.
• Substantial contribution margins on sandwich sales and beverages.
• The operations of the Company are highly scalable.
9.3 Sensitivity Analysis
The Company’s revenues are not sensitive to negative changes in economic climate. Bánh Mì sandwiches are relatively low cost, and they are affordable even during an economic recession. As the Company is operating in a ghost kitchen capacity, the business will have very low operating costs which will further ensure profitability of the business at all times.
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
• Limited competition among companies that solely specialize in Bánh Mì sandwiches.
• Additional menu items, such as Phở, can be integrated into the business’ offerings at a relatively low cost.
• The use of the ghost kitchen model will allow the business to thrive in any economic climate.
• The business will use top shelf ingredients, especially related to proteins, in all menu items.
Weaknesses
• General operational complexity as a result of operating of food and beverage business.
• The barriers to entry are very low.
Opportunities
• Expansion of the number of locations operated within Houston or other economically markets in Texas.
• Development of catering operations given at ghost kitchen can accommodate large scale order.
• Continued expansion of the Company’s marketing campaigns with a focus on online channels
Threats
• As a result of changing economic policy, inflation could impact the contribution margins of the business while causing the underlying operating cost to increase.
Appendix B – Critical Risks
Development Risk – Low
The concept behind Bánh Mì Station has been developed. All recipes have also been created. The primary development risk is management ability to secure the capital sought in this document.
Financing Risk – Low/Moderate
The $50,000 of capital needed to establish operations will be principally used for furniture, fixtures, and equipment. As has been one of the central themes of this document, the cost associated with this business are very low. The substantial contribution margins generated from food sales will support the operations of the Company at all times.
Marketing Risk – Low
Given that the business is operating a ghost kitchen capacity, a substantial online driven marketing campaign will be required in order to create brand name awareness. The Company will aggressively use multiple online channels to drive sales, including the use of delivery application suites.
Management Risk – Low
Mr. Deutsch has extensive experience developing food service businesses in a ghost kitchen capacity. He will be able to properly establish the operations of the Company within the greater Houston area. Most importantly, the Founder will be able to expand yearly profitability.
Valuation Risk – Low
The valuation risk is offset by:
• Very low costs as the business will operate in a ghost kitchen capacity.
• Substantial transaction volume from the sale of Banh Mi sandwiches.
• The Company can scale its operations in the coming years through multiple ghost kitchen styled locations.
Exit Risk – Low
There are no long-term plans to sell this business to a third party. Matthew Deutsch intends to establish Bánh Mì Station as a highly regarded Vietnamese restaurant within the greater Houston area. As needed earlier, a qualified business consultant and business broker will be retained to manage the sale of the business to a third-party if it is financially prudent to do so.