Pizza Casa

Pizza Casa

Submitted in partial fulfillment of Management 281

By

Clayton Meyer

November 30, 2013

Pizza Casa 2

Purpose of the Business Plan

This business plan will serve as an information source for potential investors. One

purpose of this business plan is to serve as information document for financial officers. Pizza

Casa will discuss, in conjunction with the business plan, the document showing that the company

has land and enough income to make the business successful. The other purpose of this business

plan is to be a roadmap or guideline for operating the business successfully for 3 years.

Business Description

Pizza Casa will provide high quality of service to all customers, and leave

them with a smile. Pizza Casa will make hot and ready pizzas, toward becoming Indiana’s most

preferred pizza restaurant. The company will be a family owned company. Distributors will

deliver food every day in order to assure fresh ingredients. Pizza Casa will be developed in

Avon, Indiana, and will be distinguished from other restaurants.

Pizza Casa will be a dine-in and take-out restaurant. Pizza Casa

will have a pizza, salad, and fruit bar. There will be a waiting room in which there will be TV’s,

along with chairs for people to sit in. Pizza Casa will have a later 1950’s look. Pizza Casa will be

in a brick building that will have red checkered window coverings. Along with this, there will be

50’s style touches, inside of the restaurant. There will be metal tables and chairs, and 50’s style

booths in which people can sit down and eat together. At this old fashioned restaurant, the staff

at Pizza Casa will make a wide variety of pizzas.

The quality of service and ingredients is the key to the longevity

of the business and the satisfaction of all the customers. The pizzas at the pizza place will be

made with the freshest ingredients possible. Every morning, McFarling Foods, Inc. will drop off

boxes of the freshest fruits and vegetables (McFarling.com). These products will be used for the

salad and fruit bar, along with toppings for the pizzas.

Pizza Casa 3

Pizza Casa will make their dough from scratch. The dough will be

made out of the freshest flour, and other ingredients, in order to make their pizzas stand out from

others. Pizza Casa will be a family friendly restaurant which will strive on having every

customer leave satisfied.

Ecowater Systems will be the official water company for Pizza Casa. This ensures

that Pizza Casa will have fresh, clean, water in order to cook and clean (ecowater.com). Good

pizza starts with fresh dough, which is made with purified water. Pizza Casa wants no added

taste to their dough, so the water will be filtered.

Pizza Casa’s kitchen management will play a role in the success of the

company. Servers will be trained on knowing what type of food is being served. The silverware,

along with other utensils, will be washed and well sterilized before being used.

Pizza Casa will seek customer feedback to understand their perception

quality of the food along with how the customers are treated. The company plans on opening

some additional restaurants throughout Indiana in the future. To do this, Pizza Casa will work to

build relations with advertisers in order to help the business grow. Advertising would help Pizza

Casa’s product get recognized by more customers.

Competition

The competitors of Pizza Casa will be Papa Johns, Papa Murphy’s,

Pizza King, and Little Caesars. Papa Johns will be tough competitor for Pizza Casa because they

claim to make pizza with the freshest toppings. However, Pizza Casa will compete with Papa

Johns on price. Pizza Casa will have Thursday night specials on a three topping pizza for $5.99.

Papa Murphy’s makes pizzas for customers to take home.

Papa Murphy’s does not bake their pizzas.

Pizza Casa 4

Pizza King will be another competitor. They will

be a tough competitor because along with serving pizza, they have games for the families to

enjoy. Little Caesar’s will be another competitor because they

serve hot and ready pizzas. Little Caesars will compete with Pizza Casa on cost, but they only

offer a one-topping pizza for $5.00. For an additional $.99 cents, Pizza Casa will have

two additional toppings. Pizza Casa will have hot and ready pizzas with

lower prices and they make dough from scratch. At Pizza Casa, there will 3-topping thick crust

pizzas for $5.99 every Thursday. Along with this, Pizza Casa will have their pizza, fruit, and

salad bar. Pizza Casa will be a well distinguished store based on price and quality.

Marketing the Product

Pizza Casa will have multiple ways of advertising

their product. The first form of advertising will be to set up an ad in Reach Magazine. The cost

of producing a full page ad, which will only be viewed by the west side of the state, will be about

$1,600 (Gorbette, 2013). The ad in the magazine would have the date in which Pizza Casa will

open, name and location of the restaurant, and the telephone number.

Pizza Casa will also make up a Facebook page in

order to let people see what this restaurant has to offer. This will cost 1,200 dollars to advertise

of Facebook per year (ezinearticles.com). Pizza Casa will also have their own website in order

for people to come and see what is offered on the menu, along with the history of Pizza Casa.

The cost will run about $13,000 for the website (executionists.com). The total projected cost of

advertising will cost approximately $15,800 for the first year.

Operating Procedures (Legally and

Daily) Pizza Casa will be run by one individual, Mr. Clayton

Pizza Casa 5

Meyer, who will also be responsible for the company’s profits and debts. Every asset that Pizza

Casa has will be owned by the sole proprietor. The legal operating status for Pizza Casa will be a

sole proprietorship. A sole proprietorship is when an individual is the only entity for tax and

liability purposes (investorwords.com). The owner of Pizza Casa will have a high degree of

flexibility. Pizza Casa will be required to file a Schedule SE with the form 1040 for tax purposes

and a Schedule C for profit and/or loss, along with expense purposes.

Pizza Casa, along with the owner, will have a head

manager and two shift managers. The company will consist of 16 employees. These employees

will all work four hours during different parts of the day. Each shift will consist of five workers.

The first shift of workers will go between 11:00 a.m. until 3:00 p.m. The next shift of workers

will start at 3:00 p.m. and work until 7:00 p.m. The last shift of workers will start at 8:00 p.m.

and work until 12:00 a.m. The head manager will be required to work from

9:00 a.m. until 5:00 p.m. The first shift manager will work from 10:00 a.m. until 7:00 p.m. The

second shift manager will work from 5:00 p.m. until the store closes. The owner of the restaurant

will be working in the business 6 days a week from 6a.m. until 4 p.m. The owner will mostly be

taking care of getting the trucks to deliver the necessary items for the pizza. Along with this, the

owner will talk to customers asking for their opinion on what they thought of the service what

the business can improve on. Pizza Casa will have many employees that have

their own job to take care of in helping out the company. The head manager, along with 2 other

workers, will show up a couple of hours before opening in order to prep the kitchen. Pizza Casa

will have one person who takes care of the cashier area. At Pizza Casa, there will also be two

people in charge of making the pizzas, as well as putting them in the oven. There will also be

two employees waiting for the pizzas and well cooked, cut the pizza up, and put it into a box.

Pizza Casa 6

Another worker will be in charge of restocking the pizza, fruit, and salad bar materials. Along

with this, that person will also be in charge of keeping the drinking station stocked and clean. If

the business is running slow, the manager may let a couple of the employees go home, while the

others stay. Personnel

Pizza Casa will have the owner arrive there around 6:00

a.m. every day in order to pick up the products from McFarling Foods, Inc. The owner will put

the ingredients into their respective places inside the restaurant. After the owner gets done with

this part of the day, the first shift manager will show up at 9:00 a.m. in order to help prep the

kitchen. While the owner is getting the pizza dough ready, the shift manager will be in charge of

setting up the ingredients in order to be ready when the business opens. When it reaches 10:30

a.m., the other 3 employees will be ready to start work. These employees will make the final

preparations before the business opens its doors.

During the business hours, the owner will check the cash register a

couple of times in a day to assure adequate change is available. While the owner is doing this,

the other employees will take his place. When the owner answers the phone, or goes into his

office to take care of something, the employees will take care of the job that the owner was

previously doing. The owner, during the day, will help the employees in any way possible for the

company to be successful. The owner will work Monday, Wednesday, and Friday, and will go

home around 3:30 p.m. during these days.

When the owner goes home for the day, the second shift manager will be

in charge of managing the restaurant. The manager will be required to check the cashier area a

couple of times per night, along with helping out the other employees with making pizzas. When

the restaurant closes its doors, one of the employees will be asked to go home. The shift

Pizza Casa 7

manager, along with 2 other employees will be in charge of cleaning up the restaurant.

When it comes to the payroll, the employees will earn $7.00 per hour plus

tips, while the managers earn $20.00 per hour. For the employees, this will cost Pizza Casa

$1,680 per month and $84,680 per year. When it comes to the managers, Pizza Casa will be

charged $1,260 per month and $64,260 per year.

When the owner of Pizza Casa is not at work, he will be in charge

of calling the representatives of McFarling Foods, Inc. to make some shipping appointments for

the upcoming week. Along with this, the owner will work on the finances to see how well the

company is doing.

Management

Pizza Casa will have one general manager, as well as two shift managers

who will be in charge of this old-fashioned restaurant. The general manager at Pizza Casa will be

in control of the daily operations of the business. He will make sure that the operations are

running smoothly. He will also make sure that the vendors and suppliers are rewarded. The

general manager will also screen, interview, hire, and train the managers and other supervisors

that report to him. The general manager of Pizza Casa is required to implement the policies and

procedures within the business. Pizza

Casa will also have two shift managers who will help out the company. The shift managers will

both be responsible for the staff members. The shift managers will make sure that the workers

are getting along and are working together as a team. Another requirement for the shift managers

will be they will keep equipment inventories, ordering supplies for the workplace, and monitor

employee activities. Along with those requirements, they will also be expected to deal with

customer complaints.

Pizza Casa 8

Types of Insurance Required for the Business

Pizza Casa will have a couple of insurance plans that employees can apply for.

Employees who work full time can pay for the PPO plan. This is a plan that requires a $300

deductible, which is when the insurance pays 60% while the employee pays 40% after paying the

deductible. The other plan that Pizza Casa will offer will be the HRA plan. The HRA plan will

also only be used for full time employees. This plan requires that there be a $3,000 deductible

every year. This is a co-insurance plan, which means after the $3,000 deductible is completed,

and then the insurance would pay for 80% of it while the employee pays the other 20% (Meyer,

2013).

Pizza Casa will pay for workers’ compensation, which will cost $500.00 per month. This

will cover employees who get injured while on the job. Along with this, there will be short and

long- term disability insurance. Both the long and short term liability insurance will cost $500

each (Meyer, 2013). These types of insurance will help people that are disabled while on the job.

Another type of insurance that Pizza Casa will have is general liability insurance.

Pizza Casa will have the $2 million coverage. Pizza Casa will be required to pay 80 dollars per

month for this liability. This insurance will cover people that get injured and or property that is

damaged at the place of the business. This would also include people who may get injured during

the general operation of the workplace (Meyer, 2013).

Pizza Casa will also have professional liability insurance. Pizza Casa will have $2

million coverage under this liability. Pizza Casa will be required to pay 80 dollars for

professional liability insurance per month. Professional liability protects the company from

damages that may happen with work that is performed by an employee (Meyer, 2013). The total

cost of insurance for Pizza Casa will be $13,160 for the first month, then $1,160 per month for

Pizza Casa 9

the rest of the year. Financing

Pizza Casa will buy furniture, along with other tools such

as freezers, refrigerators, and ovens. Pizza Casa will have two Kenmore Elite 27’double wall

ovens which cost $2562.74 for each one (www.sears.com). Pizza Casa will also have one

Wareforce UL30 Low Temperature Under-counter dishwasher inside the restaurant. This

dishwasher will cost about $3,079.00. Pizza Casa will also have three refrigerator/freezer combo

will cost approximately $5,319.43 for each one. Pizza Casa will also have a stainless steel

kitchen sink which will cost $334.18 (webstaurantstore.com). Pizza Casa will also have 24 steel

chairs which will cost $8.99 each, for a total of $215.76 dollars, along with 12 steel tables with a

total cost of $1,021.08 (target.com). Pizza Casa will also have two bathrooms made up of a

toilet, sinks, and mirrors. The toilets will cost a total of $278.00, mirrors will cost a total of

$40.00, and the sinks will cost a total of $78.00(homedepot.com). Pizza Casa will have two racks

to put the clean dishes on which will cost $177.99 for one with a total cost of $355.98

(foodservicewarehouse.com). Pizza Casa will take out a $360,000 loan with a 4.5% tax rate per

month which will end up costing Pizza Casa $1,620 per month.

12

Month Projection The first month expense will

be approximately $120,098.27 with an estimated revenue of $38,564 which will put Pizza Casa

at a negative of $-81,554.27. The second month expense will be approximately $36,456 with

revenue of $38,786 which puts Pizza Casa at $-79,204.27 overall. For the third month, the

estimated expense will be $36,486 while the revenue is projected to be $39,348 which will make

the overall number is projected to be $-76,342.27 For the fourth month, the projected expense

will cost about $36,768 while the revenue will be approximately $39,784 with an estimated cost

Pizza Casa 10

of $-73,326.27. For the fifth month, the approximate total cost of expenses will be $37,012 with

a total projected revenue of $40,142 with the overall projected number at $-70196.27. In the

sixth month, the approximate expense cost will be $37,368 with estimated revenue of $40764

which will set the overall estimated negative to $66,800.27. For the seventh month, the total

projected expenses will be $37,598 with a total estimated revenue of $41,244 with an

approximate overall number of $-63,154.27. For the eighth month, the approximate total cost of

expenses will be $37,678 with the projected total revenue of $42,688, which will have the

estimated overall total set at $58,144.27. For the ninth month, the projected total expenses will

be $37,986 with estimated revenue of $43,124, with the projected debt being at $-53,006.27. For

the tenth month, the approximate amount of expenses will be $38,246 with estimated revenue of

$43,698 which will put the projected debt at $-47,554.27. For the eleventh month, the projected

cost of expenses will be $38,456 with total approximate revenue of $44,246, which will put the

projected debt at $-41,764.27. For the twelfth month, the projected expenses will cost

approximately $38,986 with the estimated revenue of $44,678, which will put the projected debt

at $-36,072.27. 3 Year

Projection For the first year the total estimated

expense will be $533,138.27 with projected revenue of $497,066 which will put the estimated

debt to $-36,072.27. For the second year, the total projected expense will cost approximately

$467,678 with approximate revenue of $548,256 which will give Pizza Casa estimated profit of

$44,505.73. For the third year, the total approximate cost of expenses will be $486,789 with total

projected revenue of $578,246, which will allow Pizza Casa to have a projected profit of

$135,962.73.

Pizza Casa 11

Appendix A Equipment, Supply, and Insurance Summary List

Pizza Casa 12

Equipment and Supplies Dining/Restroom Insurance/Payroll

Kitchen Supplies: $24,496.95 Chairs: $215.76 Loan: 22,500 per month

Racks: $355.98 Tables: $1,021.08 Website: $15,800

Food Supplies: $20,500.00 Toilets: $278.00 Insurance: $13,160 for 1st

month, $1,160 per month

Miscellaneous: $17,092.50 Mirrors: $40.00 Payroll: Month- $2,940

Sinks: $78.00

Sub-Total: $62,445.43 Sub- Total- $1,632.84 Sub-Total- $33,520

Total: $97,598.27

Pizza Casa 13

Appendix B1 Year Plan

Pizza Casa 14

Revenue Expenses Balance

1 38,564 120,098.27 -81,534.27

2 38,786 36,456 -79,204.27

3 39,348 36,486 -76,342.27

4 39,784 36,768 -73,326.27

5 40,142 37,012 -70,196.27

6 40,764 37,368 -66,800.27

7 41,244 37,598 -63,154.27

8 42,688 37,678 -58,144.27

9 43,124 37,986 -53,006.27

10 43,698 38,246 -47,554.27

11 44,246 38,456 -41,764.27

12 44,678 38,986 -36,072.27

Pizza Casa 15

Appendix C3 Year Financial Summary

Year 1 2 3

Pizza Casa 16

Revenue $ 497,066 548,256 578,246

Expenses $ 533,138.27 467,678 486,789

Balance $ -36,072.27 44,505.73 135,962.73

Pizza Casa 17

Bank Loan

I. General InformationName of applicant:

Name of business: Pizza Casa

Address of business:

(include zip code)

County

Contact person:

Telephone number: Fax number: (include area code) (include area code)E-mail Address:

Business bank of account:

Branch Address:

Account Number:

Bank Officer & Tel. #:

II. Ownership & ManagementStructure of business (Check One)

� Corporation � Professional Corporation � Sole Proprietorship

� Sub Chapter S Corporation � Partnership � Other ____________________Ownership of applicant company (List all owners & stockholders with 20% or more of total ownership):

Name Percentage Owned

1.

2.

3.

Key Management:Name Titles/Duties Yrs. with Co. Annual Comp.

Salary / BonusesLife Ins.Amount

1.

2.

3.

Pizza Casa 18

III. COMPANY HISTORY/PROFILE

Month/day/year business was established: / / Tax ID or EIN #:

Line of Business: NAICS #:

Annual sales of business:

Employment: (please list full time equivalent employees including owners)

Number of current full time equivalent employees:

Full time equivalent jobs to be created (next two years):

Are the proposed business owners and/or guarantors citizens or legal residents of the United States?

Yes No

IV. MARKET

Three Largest Customers: (Not applicable for retail businesses.)

1. (Name/Contact Person) (Net Sales)

(Address/Phone Number)

2.

3.

Five Largest Suppliers:

1. (Name/Contact Person) (Credit Amount)

(Address/Phone Number)

2.

3.

4.

5.

Pizza Casa 19

Major Competitors:

1. (Name) 3.

(Address)

2. 4.

V. Existing Business Loans Payable

Creditor/Acct. Number

Original Amount

Loan Datemonth/year

Term Monthly Payment

InterestRate

Outstanding Balance

Collateral

1. /

2. /

3. /

VI. DESCRIPTION OF PROPOSED FINANCING

LOAN REQUEST (Please Itemize):

Real Estate Acquisition: $

Building Renovations:

Leasehold Improvements:

Machinery & Equipment:

Inventory:

Working Capital:

Other (describe):

Total Project Costs:

Owners Equity:

Total Loan Request: $500,000

(Total Loan Request =Total Project Costs minus Owners Equity)

Name of Business: Signature/Title:

Pizza Casa 20

Date: Signature/Title:

Pizza Casa 21

References

ecowater.com/

Gorbette (2013) per phone conversation, at 4:35 on October 25, 2013 in Indianapolis

http://www.cbaclenders.com/applications.html

http://www.executionists.com/blog/website-design/cost-to-build-websites-2013/

http://www.foodservicewarehouse.com/focus-foodservice/fk244874gn/p1463329.aspx

http://www.homedepot.com/p/Glacier-Bay-Aragon-Self-Rimming-Bathroom-Sink-in-White-13-0012-4WHD/100005263#.Uo14bXQo40c

http://www.homedepot.com/s/bathroom+mirrors?NCNI-5

http://www.homedepot.com/s/bathroom+toilets?NCNI-

http://www.webstaurantstore.com/regency-16-gauge-drop-in-stainless-steel-sink-with-faucet-2-compartment-14-x-16-x-10-bowls/600DI21410.html

investorwords.com/4626/sole_proprietorship.html

mcfarling.com/

Meyer, T (2013) per phone conversation, at 1:15 on October 22, 2013 in Indianapolis

Murphy, Victoria. (2012). Price of Advertising on Facebook: Different Prices on Different Methods. October 21, 2013, http://ezinearticles.com/?Price-of-Advertising-on-Facebook:-Different-Prices-on-Different-Methods&id=7046354

sears.com/kenmore-elite-27inch-double-wall-oven/p-02248173000P?prdNo=2&blockNo=2&blockType=G2&s_tnt=48792:0:0&executed=true&PDP_REDIRECT=false

target.com/s?searchTerm=steel+table&category=0%7CAll%7Cmatchallpartial%7Call+categories&lnk=snav_sbox_steel+table http://www.target.com/p/folding-chair- steel/-/A- 14777779#prodSlot=medium_1_1&term=steel+chairs

webstaurantstore.com/true-t-49dt-2-section-dual-temp-reach-in-refrigerator-freezer-combo/890T49DT.html

Pizza Casa 22

webstaurantstore.com/wareforce-ul30-low-temperature-undercounter-dishwasher-chemical-sanitizing/495WFUL30%20%20%20115.html