Team TwoDevin Sauer, Emily Steelman, Kayla Vankirk, Xinyao Wang, Zhouyang Lin, & London Graves

Executive Summary

Many forces are going to play a role in how our franchise will do business.

Each force will play its part and it is our role to plan ahead. Business

plan includes:

Mission and vision statements

Environmental analysis of the area

Products and services

Market analysis of the area

Management team and HR needed

Day-To-Day operating strategies

Projected financial plan

Funds required and used to start

Critical risks

Mission and Vision Statements

Vision Statement

To create memories one bowl at a time

Mission Statement

To provide a warm and inviting place for everyone to gather and

eat as one, with noodles from around the world, right in the

heart of Norman, Ok.

Products and Services

● Noodles & Company offers international and American

noodle dishes, as well as soups, salads, & sandwiches

● Most dishes are vegetarian but also have option of adding

tofu, chicken,shrimp, or beef

● Flat bread desserts-rice krispies treats

● Order at the counter and served at your table

● Follows trends: introduced noodle-less entrees due to low

carb diet trend, added a gluten free fusilli , whole grain

Tuscan fettuccine

● Also offers vegan options

Products and Services

● Key expectations of franchiser:

o Proper training, limited complaints

o Food up to corporations standards

o Follows culture outlined in franchise agreement

o No fryers or microwaves in kitchens

o Dishes are cooked to order

o No tipping is required

Environmental Analysis

Five Forces for the Restaurant Industry, 2014

PESTEL- Political

Tax Policy:

● Sales Tax Rate:8.25%

● Social Security Tax: 6.2%

● Medicare Tax:1.45 .

● Income Taxes: 6%

● Oklahoma Use Tax: 4.5% levy on the purchase price of tangible

personal property, including pre-paid transportation, purchased

outside Oklahoma and stored, used, or otherwise consumed within

the state. (Commission)

Stability of government: Stable

PESTEL- Economic

● Interest Rates: 4.0% according to bankrate.com

● Unemployment Rates: 3.7%

● Median Household Income: $48,248

● General State of Economy: Healthy

PESTEL- Social

Size: 118,197

Age:

● Under 15: 16.6%

● Age 15 to 24: 25.1%

● Age 25 to 44: 25.2%

● Age 45 to 64: 22.1%

● Age 65 and Over: 10.3%

Ethnicity:

● White: 90,583 81.1%

● American Indian and Alaska Native:

4,238 3.8%

● Black: 4,530 4.1%

● Asian: 3,796 3.4%

● Native Hawaiian and Other Pacific

Islander: 179 0.2%

● Two or More Races: 7,239 6.5%

● Other: 1,188 1.1%

● Hispanic or Latino: 5,995 5.4%

(Census)

PESTEL- Technological

Computerized technologies

located at tables, front counter,

and in kitchen.

PESTEL- Environmental

Natural Disasters include:

tornadoes, flooding, and high

winds

PESTEL- Legal

Health and Safety Law: A safe work environment is critical to providing excellent service and

a workplace that values the health of employees.

● We conduct safety inspections of City operations to ensure compliance with

Occupational Safety and Health Administration (OSHA) standards and to identify unsafe

work conditions and practices.

● We provide safety training to prevent employee injuries and property damage. Training

programs include hazard communication, fall protection, confined workspace, traffic

barricading and proper use of personal protective equipment, etc. We also provide

consultative services to assist City operations with safety-related problems. This includes

regulation interpretation, work practice review, accident trend analysis, loss prevention

recommendations, etc.

● We investigate vehicle and equipment accidents to determine cause and responsibility,

and make recommendations for corrective actions.(McLendon)

Location

University Town Center, 1400 24th Ave NW, Norman, OK.

Booming area

High traffic flow

Major super markets

Sufficient parking space

Target Market

● White-Collar workers from different cultural

backgrounds.

● With high educations

● Norman Population: 118,197 (Norman Census

Quick Fact)

● 92% high school graduate

● 43.5% bachelor’s degree

● Roughly 51,415

Competition

● Moderate

● Seven other noodle restaurants

● Major Competitor: Pei Wei

Estimated Market

● Accomodation and food services sales in Norman

2007: $281,624,000

● Average net sales per restaurant per year:

$1,120,097 (FDD)

● 0.4%

● sales of 140,000 bowls of noodles per year.

Management Team and Human Resources

- All 6 of our team members are in management

positions.

- There are 7 job rankings and we will be hiring for

the lowest 2 levels.

- Pay will depend on position and experience

- No experience required for lower levels, because

we will train them the “Noodles” way.

Management Team and Human Resources

Job Rankings

within our

franchise

Management Team and Human Resources

Position Team Member

Area Manager Devin Sauer

Market Training Manager Emily Steelman

General Manager Kayla Vankirk

Assistant Manager Xinyao Wang

Shift Manager Zhouyang Lin

Shift Manager London Graves

Our team members will hold the following positions:

Management Team and Human Resources

Who are we hiring?

● Positions of Team Member and Journey Leader

● Mostly OU Students that will work part time● Part time will reduce our payroll, because we will not have to

provide benefits.

Personnel

● Online hiring page contains all information of

available positions and we will accept applications

through this page.

● The general manager and the assistant manager

will be the management team that is in charge of

all hiring of personnel.

Management Team and Human Resources

Wages and Salaries

Position Wages

Team Members $9/hour

Journey Leaders $10.50/hour

Shift Manager $22,500/ Year

Assistant Manager $36,000/ Year

General Manager $42,000/Year

Market Training Manager $58,000/ Year

Area Manager $71,500/Year

Day-To-Day Operation

Market Promotion:

Stick with Franchisor’s policy

“Grand Opening Marketing Program” 1.25% of net royalty sales on local promotion

advertising media, marketing of coupons, public

relations to create goodwill.

Day-To-Day Operation

Production: “Real Food With Real

Ingredients” (Noodles &

Company)

Products from different

places

General Manager and Shift

Managers handles administrative

issues.

Teams members with accounting

experiences manage

bookkeeping

Key Financial Information

● Sources of information:o 2010 Census data for Cleveland County & Norman

o Noodles&Co’s FY 2014 10K

o Noodles&Co franchisor agreement

o IBISWorld industry averages

● Will have a few months in the first year with negative cash

flows, but will still operate at a profit

Funding Required and Used

Total funding required: $743,667

● Startup Expenses: $82,000

● Startup Asset: $661,167Total Liabilities: $443,667

Total Planned Investment: $300,000

Total Equity and Liabilities: $661,667

Critical Risks

- Supplier cuts or delays food ingredients

- Natural disaster hits Norman, OK

- Construction in the area

- Fluctuations of customers

- Technology Issues

- Competition

- Changes in tax or employment regulations - if

minimum wage increases

- Food Safety law- chance of food poisoning

- Fluctuations in employment

Conclusion

We will locate at University Town Center

We offer international and American flavors

We sell 140,000 bowls per year We have all 6 members in management position

We gather information from all over the place

We are going to win over the market!

Questions about Noodles?

References

Bplans Blog. How Limitied Liability Companies(LLCS) are taxed. 13 December 2007. Website. 23 June 2015. <http://articles.bplans.com/how-limited-liability-companies-

llcs-are-taxed/>.

Commission, Oklahoma Tax. Oklahoma Business Tax Information. 08 08 2014. Web. 16 06 2015. <<http://www.ok.gov/tax/Businesses/Tax_Types/>>.

Federal Census. City of Norman Comprehensive Plan Norman. 2010. Website. <http://www.ci.norman.ok.us/content/demographics>.

MarketLine. Forces Driving Competition in Restaurants Industry in the United States. 08 April 2015. Website. 16 June 2015.

<http://advantage.marketline.com/Product?pid=MLIP1590-0025&view=d0e500>.

McLendon, Brandon. City of Norman-HR Safety. 2015. Web. <http://www.ci.norman.ok.us/hr/hr-safety>.

Noodles & Company. Estimated Initial Investment. n.d. Website. 23 June 2015. <http://www.noodles.com/about/noodlesfranchisepacket.pdf>.

Noodles & Company-Franchise Disclosure Document Exchange. n.d. website. 23 June 2015. <http://fddexchange.com/view-fdd-docs/noodles-company/>.

Noodles & Company-Restaurant Site Criteria. n.d. Website. 23 June 2015. <http://www.noodles.com/about/noodlesfranchisepacket.pdf>.

Pei Wei. Who We Are. n.d. WEbsite. 23 June 2015. <http://www.peiwei.com/info/who-we-are>.

The Henry J. Kaiser Family Foundation. Workers by Occupational Category. 2013. Website. 23 June 2015. <http://kff.org/other/state-indicator/blue-and-white-collar-

workers/>.

United States Census Bureau. 2013. 23 June 2015. <http://quickfacts.census.gov/qfd/states/40/4052500.html>.