1. Business Plan
Down Home Cooking at
Affordable Prices
Final Project
Naomi Rauscher
Professor Mom
BUS 350 – FALL 2014
Sacramento City College
December 4, 2014

2. Table of Contents
1.0 Executive Summary.......................................................................................................... 3
2.0 Company Description ......................................................................................................4
2.1 Mission Statement...................................................................................................................................4
2.2 Company Goals & Objectives ..............................................................................................................4
3.0 Market Analysis ...............................................................................................................6
3.1 Restaurant Industry Sales ................................................................................................ 7
3.2 Trends by the Numbers ....................................................................................................8
3.3 Potential Personnel .........................................................................................................9
3.4 Restaurant Roles & Job Descriptions ............................................................................. 10
3.5 Target Market .................................................................................................................12
3.6 Service Business Analysis................................................................................................17
3.7 Regulatory Requirements ...............................................................................................22
3.8 Competitive Analysis ......................................................................................................25
3.9 Product Description/Menu ................................................................................................
4.0 Product/Service Line Section......................................................................................... 26
4.1 Current Life Cycle of Service .......................................................................................... 26
4.2 Current Research & Development ................................................................................. 26
4.3 Product/Service Innovation ............................................................................................27
5.0 Marketing & Sales Plan ...................................................................................................27
5.3 Gap Dashboard Summary .............................................................................................. 29
5.3.1 Gap Dashboard Forecast ..................................................................................................................29
5.4 Projected Marketing Strategy ........................................................................................ 30
6.0 Sales Forecast ................................................................................................................ 44
6.1 Marketing Expense Budget ............................................................................................ 46
7.0 Funding & Financial Projections.....................................................................................51
7.1 Projected Estimated Start-up Costs Summary .................................................................53
7.2 Projected Start-up Funding ............................................................................................ 54
7.3 Projected Start-up Balance Sheet ....................................................................................55
7.4 Projected Start-up Costs .................................................................................................55
7.5 Projected Income Statement...........................................................................................57
7.6 Projected Sales Forecast ................................................................................................ 59
7.7 Projected COGS Report ...................................................................................................61
7.8 Projected Break-Even Analysis........................................................................................61
7.9 Projected Profit & Loss Statement ................................................................................. 62
8.0 Projected Cash Flow ...................................................................................................... 64
Appendix ............................................................................................................................ 66
Addendum ...........................................................................................................................73

3. 1.0 EXECUTIVE SUMMARY
For several years, restaurants across the country have increasingly looked to nearby farms,
ranches and fishermen to fill their menus with foods that have some connection to the local
economy. Our intention is to connect our restaurant with the community through food. We will
do that by forging relationships with the best local merchants Sacramento has to offer; such as,
the fish hatchery, and the local produce, beef and dairy farmers. We are a family and community-
oriented business that intend to create a profitable restaurant business while enhancing the lives
of the owner and our employees; and, in part, we will be doing our part by giving back to our
community through our company programs and services.
Ultimately, every day can be a day of new beginnings and celebration. It is always best to
share those occasions with family and friends; doesn't it make sense to experience those days at a
place where you are already considered a friend of the family? Come to Naomi’s Diner – whether
for a casual dinner, a party, a business meeting or just one of those days where you need to get
away; because after all, it will be as if you were coming home for a fresh home cooked meal.

4. 2.0 General Company Description
Naomi’s Diner will provide a unique combination of excellent food at value pricing with a
fun and entertaining atmosphere. We plan to provide the “working-class” diners with friendly
service and affordable farm-fresh, healthy meals; using the best fresh meats, dairy and produce
that Sacramento area farmers have to offer through daily specials, and an assortment of entrees
and side dishes with a southern focus.
The company founder has many years of experience within the food industry, along with
personal knowledge of living paycheck-to-paycheck. While raising her own children in the
Sacramento area; she knows how it feels to want to take her family out for a nice, healthy
restaurant meal, but not able to afford the local restaurant prices.
2.1 Mission Statement
The philosophy at Naomi’s Diner is simple: “Walking through the doors of our restaurant
is not a simple action; once you walk through, your dining experience is immediately catapulted
into a sense of family and togetherness.” By embracing that philosophy, the owners’ knows that
every guest will have been given exceptional service and outstanding food; as well as, a customer
for life. To ensure that this philosophy is a permanent part of culture generated at Naomi’s Diner;
Naomi will have hired the best kitchen staff and restaurant staff that will develop the
synchronicity that will sets our restaurant apart from other restaurants around. In addition, by
having a Chef that knows how to cook real down-home Southern cooking,Naomi knows that she
can have a secure grip on the culinary pulse of the Sacramento; offering real Southern favorites,
all the while insuring that every diner will find that "one dish" that will make their dining
experience worthwhile and keep coming back for more.

5. 2.2 Company Goals and Objectives:
To have a healthy, successful company that is a leader in customer service with a loyal
customer following that continually grows every year.
 In order to keep our overheads low & continually offer our customers healthy economic
meals.
 To keep our restaurant legal by obtaining proper business permits, beer permits and
ServSafe Certification for every employee.
 Stay local and accessible to everyone.
 Maintain employee moral by offering incentives.
 Continually provide a clean, professional and welcoming atmosphere.
 Provide meals at least on day a week; every week, to the indigent people of Sacramento.
Restaurant companies are essentially retailers of prepared foods, and their operating
performance is influenced by many of the same factors that affect traditional retail stores.
Competition between restaurants is intense, since dining options abound. No one company has
the market cornered; virtually every restaurant location must compete against not only other
publicly traded chains, but also a wide array of small, local establishments. Competitors include
Chittlin’s & Thangs, Oak Park BBQ, Perkos, Denny’s, Dad’s Kitchen, Yummy Café and Coco’s;just
to name a few. Of course, it is relatively easy to forgo prepared foods altogether in favor of home
cooking, which is usually a less expensive option. Thus, restaurant meals are discretionary
purchases, and the industry tends to be highly cyclical.
I plan to be strategically located in around Sacramento City College Area to ensure my
target market area is within reach of our restaurant. Naomi’s Diner will quickly become the
premier breakfast, lunch and dinner destination that will serve local residents, professors and
students. Naomi’s Diner will attract 35% new customers a year, with a projected break-even point

6. by the end of the second year; at which point Naomi’s Diner will reach profitability by the
beginning of year three.
3.0 MARKET ANALYSIS
Knowing that the restaurant industry is a difficult one in which to achieve success, the
owner is confident that her ideas and experience will give her a leg up on the competition. She
believes that even in a sluggish economy, her product will be appealing enough to consumers that
they will still want to spend their hard-earned money on a night out at her restaurant.
This industry includes single-location, independent or family-operated restaurants that
are primarily engaged in providing food services to patrons who order and are served while seated
(i.e. waiter and waitress service) and pay after eating. These establishments may sell beer and
wine, along with other non-alcoholic beverages in addition to providing food services to guests.
1Projected Restaurant Growth in U.S. 2014
2Projective perspective of how Naomi’s Diner can grow within
the restaurant industry in relations to other competitors in
similar market throughout the United States through industry
forecast and industry sales in 2014.

7. 3.1 Restaurant Industry Demographic
How Naomi’s Diner will fit into the demographics of Sacramento’s restaurant
industry and what will bring consumers to Naomi’s Diner and the distinguishing
appeal to spend their hard earned dollars as well as to come back .

8. 3.2 TRENDS BY THE NUMBERS
2014 Industry Sales Projection: $683.4Billion
72% - Consumers would consider dining out more often if menu prices were lower during
off-peak times. 58% - Consumers are likely to make a restaurant choice based on it’s environ-
mental sustainability efforts. 64% - Consumers are more likely to visit a restaurant that offers
locally-produced food items. 81% - Consumers say there are more healthy options at restaurants
than there were two years ago. 72% - Consumers are more likely to visit a restaurant that offers
healthful options. 43% - Consumers would use a
touch-screen ordering kiosk if available.
44% - Consumers would use a
smartphone to look up nutrition information
for restaurant food if available. 43% -
Consumers have placed a restaurant takeout or
delivery order online. 47% - Consumers would
use an electronic payment system at the table if available. 87% - Consumers say good service is a
key attribute for choosing a restaurant. 33% - Consumers factor in information from peer-review
websites when choosing a restaurant. 65% - Consumers say ease of parking is a key attribute for
choosing a limited-service restaurant.

9. 3.3 POTENTIALPERSONNEL
Naomi’s Diner was formed by Naomi Rauscher,
with an idea to create a business in the food industry
that’s affordable for the everyday person and a way to
give back to our community. Money would be the biggest
advantage for me to go into a partnership when starting a
new restaurant. Since opening a restaurant involves a lot
of capital, splitting the startup costs with another person
(or group of people) reduces the monetary burden on one
person. Secondly, by including more people it means that
each person’s individual skills and experience can
complement the other’s and benefit the business.
I will open with a team of two manager/owners,
one bookkeeper, and six-eight staff members. Each
member of the management team has specific industry
experience that will apply to his or her assignment. Each
employee will also cross train every position in order to
be an extremely experienced and well-balanced team.
There are no gaps in its structure.
Co-owner/Assistant GM: Naomi Rauscher
Co-owner/Head Chef: Charles Bowen
General Manager: Eric Hudson
Sous Chef: Ulysses Pridgen, Jr
Business Accountant: Marjorie Blum
Bar Manager/Head Server: Volcano Wellner
Head Maintenance: Jesse Barksdale
3 Typical Restaurant Worker

10. 3.4 RestaurantRoles andJobDescriptions
Our management team is keenly focused on talent building and development. New
restaurant openings results in numerouscareer opportunities throughout the city. We strive to
become an award winning company with an "of service" culture, anchored by solid hospitality
and guided by our compass of quality. Our company culture is the character and personality of
our management. It's what will make our organization unique and is the sum of Naomi’s Diner
philosophy, values, traditions, beliefs, interactions, behaviors, and attitudes….
General Manager
Eric Hudson has 20+ as a General Manager;
with his extensive knowledge with the
restaurant industry, he is the perfect person
to head up my Management team.
RESPONSIBILITIES
 Overrides general restaurant
operations
 Oversees P & L statement
 Manages both Front of House (FOH) & Back of
House (BOH)
 Hires and manages staff
 Works with executive Chef on Marketing
Initiative
OTHER REQUIREMENTS
 College degree, typically preferred
 Two or more years of food servicemanagement
experience
 Customer serviceexperience
 Excellent Interpersonal communication skills.
 Knowledge of the management software for
payroll,finances and businessrecording
 May be required to pass a background check
 Understandingof food safety, equipment safety
and sanitation regulations
Assistant General Manager
Owner/Naomi JRauscherwill alsobe the
AssistantGM. With8+ yearsin the Restaurant
Industry,Iwill bringwithme toour
managementteamdifferentstrengthsthenMr.
Hudson.Togetherwe will bringstrengthof
diversitytoourmanagementteam.
RESPONSIBILITIES
 Oversees General Restaurantoperations when
GM is absent
 Assists with P&L statement
 Assists with hiringand managingstaff
 Assists with orderingand keeping inventory
 Often takes on management of bar area
OTHER REQUIREMENTS
 College degree typically preferred
 One or more years of food servicemanagement
experience
 Customer serviceexperience
 Excellent Interpersonal communication skills
 Knowledge of the management software for
payroll,finances and businessrecording
 May be required to pass a background check
 Understandingof food safety & equipment safety
Head Chef/Kitchen Manager
C0-Owner/CharlesBowenhas10+ years
maintainingimpeccablepersonalhygiene as
well ashighworkand safetystandardsinthe
kitchen.He will setandmaintainthe highest
standardsfor the chefsbelow himaswell asthe
foodsour kitchenproducesandsendsoutto
our customer.
RESPONSIBILITIES
 Prepares food in the kitchen
 Coordinates kitchen work
 Monitors and controls food costs and inventory
 Works with GM on Marketing initiatives
 Responsiblefor daily kitchen operations
 Directs and manages linecooks
 Works with Sous Chef to design recipes and create
dishes
Other Requirements
 Culinary degree
 2-4 years’experience workingin a professional
kitchen
 Inventory and data management experience
 Menu development experience
 Knowledge and experience in all roles of the
kitchen
 Team leadership Skills
 Excellent interpersonal communication skills

11. Rauscher11
 Customer serviceexperience
Sous/Pastry Chef
UlyssesPridgen,JrstudiedinSanDiego,CA for
the past 4 years,inadditiontoworkingatBJs
restaurantupholdingtheirvalues.He willbring
whathe has gainedintoourmanagementteam
and strengthenourcore valuesaswell.
RESPONSIBILITIES
 Second to Head Chef/Kitchen Manager
 Runs the Kitchen
 Provides instruction and trainingto cooks and staff
 Responsiblefor preparingdough, baked goods,
baked desserts
 Often works overnight or in early morninghours
 Oversees pantry and prep work in kitchen
 Helps garnishingand artistic elements duringmeal
preparation
 Responsiblefor pantry organization
 Prepares food in the kitchen
 Clean, cuts,stores and otherwise prepares food for
cooking
OTHER REQUIREMENTS
 Culinary degree
 1+ years experience working in a professional
kitchen
 Inventory and data management experience
 Knowledge and experience in all roles of the
kitchen
 Team leadership skills
 Excellent communication skills
 Culinary background with pastry/desserts and
baking
 Ability to work very early morningshifts
 Kitchen and food safety training
 Time management skills
 Ability to followdirection and work on a team
 Physical requirements: standing,reaching,lifting
and bending
 Prepares food in the kitchen
 Clean, cuts,stores and otherwise prepares food for
cooking
Night & Bar Manager
VolcanoWellnerstartedoutinthe restaurant
industryasa server10 years ago. He rose
throughthe ranks overthe yearsand has
proventobe an excellentleaderwith
exceptionalpersonality.He bringstoour
managementstaff strength,integrity,and
excellentcustomerservice skills.HisCharisma
withcustomerswill keepthemcomingback.
RESPONSIBILITIES
 A bar manager is an individual who directs,
controls and plans theactivities of a bar.
 Strong employees areworkers who arehealthy
and happy but also collaborative,creative,
innovative,accountableand decisive.
 The duties and responsibilitiesof a bar manager
in schedulingstrongemployees revolve around
planning,supervisingand allocatingtheday-to-
day operational activities of the bar.
 Work schedulingalso involves empowering
employees through delegation of duties and
trainingto better their experience.
 Empowerment is a significantelement that
contributes towards nurturingstrong
employees.
OTHER REQUIREMENTS
 A bar manager is responsiblefor ensuringthat
the inventory of the bar is well managed.
 As a bar manager, you can achievethis by
allocatingthe inventory management duties to
the storekeeper.
 You also need to allocatethe responsibility of
the trackingall thesales of all types of drinks
includingbeers,cocktails,wines,spirits and
beverages to the bar man.
 This way, you will be ableto monitor the
movement of inventory from the store to the
bar and the sales you make.
 When schedulingthesetasks,you must ensure
that the bar and store have adequate number of
staff duringall shifts.
4 Restaurant Industry Employment

12. Rauscher12
3.5 TARGET MARKET
According to my survey result the 44 percent of my consumers are over the age of 40 years
old; in addition, 20 percent of my consumers would be between the ages of 20 and 30 years old.
After looking at several Web Sites in order to define specific generational titles, I discovered that
ultimately it’s the media in our country that defines what a generation would be call. How stupid
is that? Despite the close, yet varying data, I have depicted my target groups the best to my
ability; these target groups are described below:
ABOVE 40 YEARS OLD - (1974 and Before)
Which Includes: The Greatest Generation. Born between 1901 and 1924, considered the
G.I. Generation; as well as those born between 1925 – 1945, who are considered to be the Silent
Generation. These consumers are today’s octogenarian, they have seen it all when it comes to
advertising, resulting in a particularly perceptive consumer segment. They are more careful about
whom they do business with, and they want to know more about your business before they
choose to patronize it. Having been born during, or lived through, the Great Depression, World
War II and many economic recessions, they're keen on value and in general don't "shop for fun" as
other generations tend to do. They have pensions to rely on that other generations won't have, as
they become senior citizens, so concentrate on communicating the value of your product or
services. A practical bunch, they also tend to be extremely loyal customers.
Seniors like to spend money on their grandchildren. Seventy-five percent of the over-50
crowd is grandparents; they buy 25 percent of all toys sold in America. Today's senior is living
longer than ever before, and they're dealing with fewer acute illnesses and more chronic ones as
their lifespans increase due to science and medicine. They want products to help them stay active,
learn and be independent. There's plenty of room in the marketplace for products and services to
help them achieve this lifestyle.

13. This also includes the Baby Boomer Generation: Consumers born between 1946 and
1964. Which Includes Boomers. Until the boomer generation hit age 50, marketers generally forgot
consumers once they passed that age mark. Today, however, they're awakening to the buying
power of this 76 million-strong group. On average boomers spend $400 billion more per year than
any other generation. They're at many life stages: empty nesters or full nesters, boomer
grandparents, single or married,etc. What they have in common is exceptional drive and the
ability to evaluate advertising and determine its value to them. Between 2005 and 2030, the over-
60 group will grow by 80 percent--as they age, be careful not to label them as "old." This
generation has a Peter Pan complex--play up their youthfulness in marketing.
Generation X: Consumers born between 1965 and 1980 were called the Baby Busters and
those consumers born between 1975 and 1985 are generally referred to as the MTV Generation.
These “generations” all make up my target market, per se. Although, in my opinion Millennial and
the Baby Boomers seem more likely to buy products such as mine because there is a definite
distinction between the differing generational attitudes towards spending money.
Both the Millennials and Boomers are members of generational archetypes which are
externally focused. By contrast, Gen Xers and Maturescome from generational archetypes in
which members tend to be focused on themselves and their immediate families, and less
concerned about reshaping society.
3.5.1 People Quick Facts
Sacramento (city), California
Sacramento California

14. Population, 2013 estimate 479,686 38,332,521
Population, 2012 estimate 475,367 37,999,878
Population, 2010 (April 1) estimates base 466,488 37,253,959
Population, percent change, April 1,
2010 to July 1, 2013 2.8% 2.9%
Population, percent change, April 1,
2010 to July 1, 2012 1.9% 2.0%
Population, 2010 466,488 37,253,956
Persons under 5 years, percent, 2010 7.5% 6.8%
Persons under 18 years, percent, 2010 24.9% 25.0%
Persons 65 years and over, percent, 2010 10.6% 11.4%
Female persons, percent, 2010 51.3% 50.3%
White alone, percent, 2010 (a) 45.0% 57.6%
Black or African American alone,
percent, 2010 (a) 14.6% 6.2%
American Indian and Alaska Native
alone, percent, 2010 (a) 1.1% 1.0%
Asian alone, percent, 2010 (a) 18.3% 13.0%
Native Hawaiian and Other Pacific
Islander alone, percent, 2010 (a) 1.4% 0.4%
Two or More Races, percent, 2010 7.1% 4.9%
Hispanic or Latino, percent, 2010 (b) 26.9% 37.6%
White alone, not Hispanic or Latino,
percent, 2010 34.5% 40.1%
Living in same house 1 year & over,
percent, 2008-2012 77.0% 84.2%
Foreign born persons, percent, 2008-
2012 22.1% 27.1%
Language other than English spoken at
home, pct. age 5+, 2008-2012 36.8% 43.5%
High school graduate or higher,percent
of persons age 25+, 2008-2012 82.1% 81.0%
Bachelor's degree or higher, percent of
persons age 25+, 2008-2012 29.4% 30.5%
Veterans, 2008-2012 28,065 1,952,910
Mean travel time to work (minutes),
workers age 16+, 2008-2012 23.7 27.1
Housing units, 2010 190,911 13,680,081
Homeownership rate, 2008-2012 49.1% 56.0%

15. Housing units in multi-unit structures,
percent, 2008-2012 31.9% 30.9%
Median value of owner-occupied
housing units, 2008-2012 $244,100 $383,900
Households, 2008-2012 176,061 12,466,331
Persons per household, 2008-2012 2.61 2.93
Per capita money income in past 12
months (2012 dollars), 2008-2012 $25,645 $29,551
Median household income, 2008-2012 $50,661 $61,400
Persons below poverty level, percent,
2008-2012 20.2% 15.3%
3.5.2 Business Quick Facts Sacramento California
Total number of firms, 2007 35,990 3,425,510
Black-owned firms, percent, 2007 8.5% 4.0%
American Indian- and Alaska Native-owned
firms, percent, 2007 S 1.3%
Asian-owned firms, percent, 2007 19.0% 14.9%
Native Hawaiian and Other Pacific Islander-
owned firms, percent, 2007 S 0.3%
Hispanic-owned firms, percent, 2007 8.8% 16.5%
Women-owned firms, percent, 2007 31.9% 30.3%
Manufacturers’ shipments, 2007 ($1000) 3,985,478 491,372,092
Merchant wholesaler sales, 2007 ($1000) 8,940,109 598,456,486
Retail sales, 2007 ($1000) 4,307,544 455,032,270
Retail sales per capita, 2007 $9,451 $12,561
Accommodation and food services sales, 2007
($1000) 1,021,402 80,852,787
3.5.3 GeographyQuick Facts Sacramento California
Land area in square miles, 2010 97.92 155,779.22
Persons per square mile, 2010 4,764.2 239.1
FIPS Code 64000 06
3.5.4 MARKET RESEARCH STUDY
I created a survey in February 2014, and ran it until October 2014, through Survey Pie; I
distributed it through various media websites. Market research is a key factor in maintaining a

16. competitive edge over others restaurants in the same business area. Market research provides
important information to identify and analyze the consumers need, market size and competition.
Market research, which includes social and opinion research, is the systematic gathering
and interpretation of information about individuals or organizations using statistical and
analytical methods and techniques of the applied social sciences to gain insight or support
decision making.
5 Affordable Farm-to-ForkRestaurant Survey Summary
3.6 Service Business Analysis

17. September 2014
SACRAMENTO’S ANNUAL JOB GROWTH SLOWED TO THE STATEWIDE
AVERAGE
Between August 2013 and August 2014, preliminary data shows that the number of jobs
on payrolls in the six-county Sacramento Region grew by 1.9 percent, similar to the
statewide average and just above the national average. Although this reflects a gain of
about 17,000 jobs from the previous year, this annual rate of growth is much slower
than what the Region posted in the previous month and in August 2013. All of the
Region’s five largest sectors experienced a dip in annual job growth since last month,
but four of these sectors still posted positive annual job growth in August 2014. Only
one sector, Professional & Business Services, posted a rate greater than the previous
year. The disparity in performance among these sectors still exists with the Professional
& Business Services and Educational & Health Services sectors posting rather strong
annual job growth at 6.1 percent and 4.7 percent, respectively. The administrative and
support services and health care segments contributed significantly to these two
sectors’ annual job gains. Job gains in the Region’s largest sector, Government, were
driven by growth in the state government portion while local and federal government
experienced losses slowing this sector’s annual job growth to 0.6 percent in August
2014. Trade, Transportation, & Utilities’ 0.5 percent annual job growth was primarily
attributed to gains in the retail component. After a brief period of positive annual job
growth, the Leisure & Hospitality sector dipped back into negative territory posting a
rate of -0.7 percent in August 2014. The component that includes restaurants and bars
still showed job gains, but at a much lower level than the previous month and not
enough of a gain to make up for losses in the accommodation and recreational
segments.

18. 3.6.1 Annual Job Growth
MOST OF THE REGION’S LARGEST SECTORS EXPERIENCED ANNUAL
JOB GAINS
California saw 1.9 percent annual job growth in August 2014 with the number of
jobs on payrolls increasing by nearly 293,000. This growth rate, which was 1.5
percentage points below the same point in the previous year, continues
California’s overall downward growth trend. Annual job growth at the national
level was flat at 1.8 percent with a gain of 2.5 million jobs. With 2.9 percent
annual job growth in August 2014, the SF Bay Area saw a very slight uptick since
the previous month and is still one of the strongest regions in the state, but its
rate is 1.3 percentage points lower than one year prior. It is important to note
that some slowing is expected as an economy moves through an expansion
phase. The Stockton market added 2,500 jobs and dropped to 1.2 percent
annual job growth while Solano’s annual job growth increased to 1.6 percent,
adding 2,000 jobs.

19. Sacramento Region Largest Sector Annual Job Growth
SIX OF SACRAMENTO’S MAJOR SECTORS ADDED JOBS IN THE PAST
YEAR
Six of the Sacramento Region’s 11 major sectors added jobs between August 2013
and August 2014. The greatest gains were seen in two of the Region’s largest
sectors, Professional & Business Services and Educational & Health Services
with a combined gain of 13,500 jobs. Manufacturing posted the third-largest
gain, 1,500 jobs, despite losses seen at the statewide level. Construction and
Government added 1,400 jobs each and Trade, Transportation,& Utilities
posted its smallest job gain, 800 jobs, since mid-2011. Two sectors did not add
jobs in this time while the Other Services, Information, and Leisure &
Hospitality sectors lost jobs in the past 12 months with a combined loss of 1,500
jobs. With a net gain of 17,100 jobs, the Region’s total Nonfarm employment
level moved up to 919,900—still at levels seen in the year 2005. This
employment level is 69,300 jobs above the low point in the recent recession

20. (winter of 2011), but 48,000 jobs below the pre-recession peak from the summer
of 2007.
3.6.2 Major Sector Annual Job Gains and Losses
TOTAL REGIONAL EMPLOYMENT ARE AROUND 2005 LEVELS
Similar to the Sacramento Region, the Professional & Business Services and
Educational & Health Services sectors posted the greatest gains statewide. The
state’s Financial Activities, Government, and Manufacturing sectors lost jobs in
the 12 months ending August 2014. All of the SF Bay Area’s sectors, except
Mining & Logging, posted job gains with Educational & Health Services and
Professional & Business Services posting the largest gains. Stockton posted
significant job losses in the Manufacturing sector, a large proportion of the
losses seen statewide in that sector. Professional & Business Services added the
most jobs in Stockton while this sector was the only one that experienced losses
in Solano. Solano saw its largest job gains in the Construction and Educational
& Health Services sectors.

21. 3.6.3 Sacramento Region Total Nonfarm Employment
THE REGION’S UNEMPLOYMENT RATE REMAINS EVEN WITH THE
STATE
Around 89,000 residents in the Sacramento Region were officially considered
unemployed in August 2014, according to preliminary data. This put the
Region’s August 2014 seasonally adjusted annual average unemployment rate at
8.0 percent, the same as the statewide average and 1.5 percentage points below
Sacramento’s August 2013 rate. The unemployment rate continued to improve
at the national level with an annual decline of 1.0 percentage point, dropping to
6.6 percent. The SF Bay Area posted an unemployment rate of 5.8 percent in
August 2014, notably below the national benchmark. The Solano market’s
unemployment rate remained between the statewide and national averages at
7.5 percent while the Stockton market is still seeing a double-digit
unemployment rate at 11.7 percent.

22. Unemployment Rate (Seasonally Adjusted Annual Average)
3.7 POSSIBLE REGULATORY REQUIREMENTS
Business License
Contact your city's business license department to find out about getting a business
license, which essentially grants you the right (after you pay a fee, of course) to operate a
business in that city. When you file your license application, the city planning or zoning

23. department will check to make sure your area is zoned for the purpose you want to use it
for and that there are enough parking spaces to meet the codes.
Fire Department Permit
you may need to get a permit from your fire department if your business uses any
flammable materials or if your premises will be open to the public. In some cities, you
have to get this permit before you open for business. Other areas don't require permits but
simply schedule periodic inspections of your business to see if you meet fire safety
regulations. If you don't, they'll issue a citation.
State Licenses
In many states, people in certain occupations must have licenses or occupational permits.
Often, they have to pass state examinations before they can get these permits and conduct
business.
Sales Tax License
Sales taxes vary by state and are imposed at the retail level. It's important to know the
rules in the states and localities where you operate your business because if you're a
retailer, you must collect state sales tax on each sale you make. Before you open your
doors, be sure to register to collect sales tax by applying for each separate place of
business you have in the state. A license or permit is important because in some states it's
a criminal offense to undertake sales without one.
Health Department Permit
If you plan to sell food, either directly to customers, as in a restaurant or as a wholesaler to
other retailers, you'll need a county health department permit. This costs about $25 and
varies depending on the size of the business and the amount and type of equipment you
have. The health department will want to inspect your facilities before issuing the permit.

24. ServSafe®California Food Handler
The ServSafe Food Handler Program is a complete solution that delivers consistent food safety
training to employees. The program covers five key areas:
 Basic Food Safety
 Personal Hygiene
 Cross-contamination & Allergens
 Time & Temperature
 Cleaning & Sanitation.
Police Regulations/Public Safety Issues
Some city police departments offer business crime prevention programs may also issue
permits for certain activities, i.e., burglar alarm, solicitors, etc. – requirements vary from
city to city.

25. 3.8 COMPETITIVE ANALYSIS
4. O PRODUCT/SERVICE LINE SECTION
Competitor 1 Competitor 2 Competitor 3
Name of Competitor(s) Chittlins N’ Thangs Dad’s Kitchen Yummy Juice Cafe
Location 8201 Freeport Blvd 2968 Freeport Blvd 3005 Freeport Blvd
Sacramento,CA 95832 Sacramento,CA 95818 Sacramento,CA 95818
Products or services offered “Soul” food: Chitterlings,
American Style Comfort
Food
Chinese Food Cuisine
Smothered Pork Chops,Fried Basa,Oxtail, Jambalaya,Red Beans/Rice
Methodsof distribution
(wholesale,retail, sales
representatives,corporate sales)
Restaurantwithin an Inn Store Front Delivery
Image Wholesome Family Friendly Pan Asian & Traditional
Packaging
Entrees served w/ choice of
2 sides and cornbread
Burger Joint Chinese Cuisine
Promotional materials none Online,Television None apparent
Methods of advertising Online,word of mouth Online,Television yelp
Positioning
(Howcustomersperceive productor
service)
Very highly priced compared
to what was served
Dad’s offers something
for everyone
Open late & cheap,But
not quality food
Pricing structure
Very high;$13.00 - $20.00 a
plate
Reasonable
Cheap for college
students.Under $10
Performance
(pastand present)
Servers were promptand
courteous;Meals came out
within a reasonable amount
of time.
Promptand Courteous Very Busy
Market share
(customers’ number,type, and location)
At time of visit on 2, other
tables had customers;
location was deep in the
pocket area where you do
not want to be after dark.
Nice Location,kind of set
back from the street, but
noticeable
College Students
Strengths
(competitor’s advantages in the
marketplace)
None Too many to list Open Late, casual
Weaknesses
If you like to pay high prices
for substandard food,than
this is your type of place
None seem to be
apparent
Doesn’thave the greatest
food
Other comments and notes
Went to restaurantand was
highly disappointed.Will
never recommend or return.
Featured on Diners,
Drive-ins and Dives.
Ilovedadskitchen.com
Featured on Yelp
Yummycaferestaurant.com

26. AN ESSENTIAL PART OF DAILY LIFE. Nine in 10 consumers says they enjoy going to
restaurants. Two in five consumers say restaurants are an essential part of their lifestyle. Seven in
10 consumers say their favorite restaurant foods provide flavors that can’t easily be duplicated at
home. Three-quarters of consumers say going to a restaurant with family and friends is a better
use of their leisure time than cooking and cleaning up.
The Single Location Full-Service Restaurants industry experienced a slowdown due to the
struggling economy but has been growing ever since as consumerspending rebounds. While the
industry is experiencing stronger operating conditions in 2013, operators will still have to contend
with customers who are hesitant to part with their money. As such, operators must monitor and
adjust to consumer changes. If they manage to meet changing guest needs, owners will be well
poised to take advantage of the expected rapid rebound in demand as the economy continues to
return to health.
4.1 CURRENT LIFE CYCLE OF SERVICE
Currently we are working towards saving for the financial startup costs that this endeavor
will need to be successful. Company startup will most likely be around 2020, maybe earlier if
financial investors are located and willing to take this on.
4.2 CURRENT RESEARCH & DEVELOPMENT
Research is currently being done with fresh not organic, Farm-to-Fork representatives;
including dairy, poultry, produce, wineries, etc.
4.3 Product/Service Innovation
Naomi’s Diner attracts prospective customers by offering an exciting and unique dining
experience. High quality food, friendly and professional service, and an entertaining, fun-filled
environment differentiate Naomi’s Diner from its competitors.

27. Our market can be divided as:
Prospects: Anyone who has received a first-timer discount coupon or who has otherwise
provided their contact information (via raffle, website, or mailing list).
Customers: At least one meal enjoyed at Naomi’s Diner. They've added their name to our
mailing list, and anticipate returning to dine with us again.
Premium Customers: They come in several times a year, bring friends and/or extended family,
and plan ahead to attend theme nights. They take part in the Naomi’s Diner Points program and
refer others.
5.0 Marketing & Sales Plan
Marketing Vision
Naomi’s Diner is a place for family togetherness. Organized around a common love of the
traditional Southern-American diner. Naomi’s Diner transcends a typical theme restaurant by
putting real heart into providing the highest customer service and the highest quality and
freshness of its food; so that its unique presentation references to the simpler of times past
CEO's Goals:
 Reduce shift management time to 25% of time, devoting the remainder to marketing
direction and strategy
 Devote at least two hours per day to marketing activities
Marketing Goals:
 Achieve revenue of $1.8 million per year in year three
Strategic Goals:
 Become the top family restaurant in Sacramento by end of year three

28. Tactical Goals:
 Implement Naomi’s Diner Points customer loyalty program
 Implement customer feedback system
 Implement staff incentive system of monthly bonuses
 Create Facebook page to extend website
 Hold 24 theme nights over the next year
5.1 Purpose
Naomi’s Diner seeks to create a comfortable, fun environment that brings folks together;
while letting them share the enjoyment that only eating farm-fresh food with their friends and
family can bring. The marketing exists to create and strengthen bonds across generations, along
with the tradition of Southern-American diner fare and culture as a touchstone.
5.2 Picture
A new customer is often referred to Naomi’s Diner by an existing customer and visits the
website to check it out. There they will find images of the type of restaurant they thinks their
friends and family would enjoy. They will visit with their family and friends, and will be
enchanted and excited by the ambiance, attention to the details of how fresh the quality of the
food served. This inspires them to invite their more people with their children and grandchildren;
and friends of their friends, to the restaurant the next time they are in town.
Throughout these visits, the customers will be treated carefully and respectfully by servers
and staff, who always have smiles on their faces and stop at nothing to make sure the customers
are happy. This includes the cleanliness of the restaurant, the uniformity of their uniforms, and
their behavior with customers.

29. 5.3 Gap Dashboard Summary
As many of the key personal, marketing, strategic, and tactical goals as possible will be
tracked through the use of the Gap Dashboard. Those that are not represented here (such as some
tactical goals) will be tracked based on the schedule for development in the Milestones table. On
a quarterly basis, the key marketing metrics will be entered into the Gap Dashboard to judge
actual results against these goals.
Personal goals relate to limiting the CEO's time spent as general manager and increasing
the time spent on marketing activities. The primary marketing goals are to maximize revenue of
the Naomi’s Diner and reserve cash for the integration of services provided to our local
community with the staff. The strategic goal of becoming Sacramento’s number one family
restaurant will be measured by press mentions as a key indicator, but will be based on the
rankings in the Sacramento News and Review’s annual restaurant review. Tactical goals that can
be measured quantitatively are represented here.
5.3.1 Gap Dashboard Forecast
Year 1 Year 2 Year 3
Personal
Shift management time
852 500 500
Hours of marketing work 470 500 500
Business
Revenue $1,436,332 $1,781,567 $1,849,786
Cash reserved for new community
projects
$186,917 $295,665 $332,661
Strategic

30. PR mentions 171 291 300
Ranking in SN&R’s Annual
Restaurant Review
5 2 1
Tactical
Theme nights held 18 24 24
Naomi’s Diner
Points awarded
520,451 890,783 924,893
5.4 Projected Marketing Strategy
Naomi’s Diner marketing strategy will include the use of targeted print media advertising and
radio ads. It will also capitalize on the existing clients, from its future possible catering endeavors,
to spread the word about the new restaurant. The primary goal of all marketing efforts will be to
communicate the high quality and unique flavor to existing and potential customers.
 Print media advertising: weekly newspapers with expansion to the surrounding areas
and other local papers.
 Flyers: Passed around to the local hospital, neighborhoods and businesses to introduce
the community to Naomi’s Diner and creating an economic incentive to try it.
 Word-of-mouth: The Company must strive to provide a friendly atmosphere and
excellent service. This will be the best advertisement for the business itself.
 Networking: The Company has already begun networking with businesses and suppliers
in the area.
Escalating public interest in the newest communication devises is well documented and has
become an important part of everyday life for virtually every age group and ethnic
background. Modern communication methods such as texting, emails, social websites, blogs, and
a sophisticated Company website must be an integral part of the Company's marketing strategy
for it to become successful and remain successful.

31. Every effort should be made to develop printed and publically available marketing pieces in an
identical and consistent manner.
Company "branding" means advertisements, flyers, business cards, letterhead, forms,
marketing items, and the Company website will all have identical design, color, logo, and
appearance features. By branding the Company at this early stage, the public will immediately
identify and recognize a marketing piece as belonging to the Company once we have
been sufficiently exposed.
Not more than 10% of annual gross sales will be allocated to the marketing budget. Regardless
of what type of marketing campaign is developed; management must make a conscious effort to
research and gather data supporting the campaign, test it, and analyze the direct expenses
associated with the campaign against its potential profit to determine whether the campaign is
cost justified.
Marketing research and data gathering should include the development of a customer contact
information database that can be used for email, text, telephone or mail advertising campaigns.
Future consideration should be given to any discount idea that assists in referral business
through word-of-mouth advertising, in converting first-time customers into repeat customers, or
in developing repeat customers into extremely loyal and constantly purchasing repeat customers.
5.5 Website Strategy
Research indicates that an easy-to-use website significantly increases sales. A
sophisticated website is vital to our marketing strategy for attracting new customers and retaining
existing customers. The website needs to have an appealing appearance, yet simple and clean. It
must encourage sales. Offerings must be arranged in a way that ensures each potential customer
entering the site can easily browse through them and find relevant information,illustrations and

32. descriptions. The capability for online ordering and payment would be ideal, along with curbside
order pickup.
The design of the Company's website will encourage sales if it is quick and easy to use. By
ensuring that the website is intuitive (easy to navigate and simple to use), the Company
will ensure that potential customers who enter the website will end up purchasing their food
order to their specifications. Research indicates that too many websites that are not intuitive lose
customers who migrate through the site, often putting items in their shopping cart, yet leave
without purchasing anything. Therefore, an easy, intuitive website is of upmost importance.
All offerings listed on the website will be set up to be easily updated by management or
staff so that products are always fresh and up-to-date. It must also be easy for potential
customers to browse and search for items and information.
It is anticipated that it may take up to three months for the Company website to become
fully operational since some or all of the site construction, text, illustrations, and testing will be
completed by management rather than by hiring professionals. This is being done save the cost
of professional assistance. However, if management determines the benefits of the most modern
and sophisticated of websites is cost justified, professionals will be hired.
The Naomi’sDiner website willserve the following purposes:
 Educate prospects with an eye towards encouraging them to try out the restaurant
 Inform customers about the upcoming events, menu,and key information about coming
to Naomi’s Diner
Prospects will be encouraged through the fun, colorful, playful atmosphere of the website,
which mirrors that of the actual restaurant. A trivia section of the website will include the same
questions printed on the diner's napkins, and more. A photo gallery will provide a visual tour of
the restaurant to demonstrate its decor and atmosphere as well as actual customers in family
groups enjoying the restaurant and its theme nights.

33. The first-timer discount coupon and code will be prominently displayed on the website's
homepage to encourage prospects to become customers.
Existing customers will be further encouraged to deepen their relationship with Naomi’s
Diner through information on the upcoming theme nights, along with the ability to forward that
information directly from the website to their friends. Sign-up for the Naomi’s Diner Points and
referral programs will be available directly through the website as well.
5.6 Core Strategy
The external marketing message which Naomi’s Diner wants to put across is affordable
fresh farm-to-fork food, non-fast food environment. The internal positioning goal is to promote
fun and comfort for the customers, and presentation by servers and the team.
Results desired include:
 Holding 24 theme nights or events over the next year
 Achieving return visits by 25% of customers within six months of their first visit
 Achieving an average per-person meal revenue of over $20 before tax and tip
 Averaging 75% capacity from 5 pm to 9 pm on Friday and Saturday evenings within two
years
5.7 Core Branding Elements
The core message is "Synchronicity through food” on the personal connection that
customers who come through ourdoors can count on farm freshness that will take them back to
home cooked goodness. The brand identity of the marketing is fun and accessible to all ages. The
images used are more eclectic and diverse than a chain restaurant like McDonald's or Burger
King, but are all consistently from the local merchants.
The core elementsinclude:

34.  Website
 Outdoor signage
 Menus (interesting names and images along with each menu item)
 Napkins (lists of trivia questions with answers at the bottom of the napkin)
 Tabletops (covered with images of farms)
 Wall decor (photos and posters of the Farm-to-fork)
 Server uniforms
 Advertisements (print, online, and radio)
5.7.1 Social Media Plan
A Naomi’s Diner blog will be shared between the managers and servers at the restaurant.
Before and after theme nights, they will write about the events, giving a bit of a review and a taste
of what the evening was all about. Blog posts will also pose trivia questions based on the names of
the food items. This will encourage user comments and answers while publicizing the menu of
Naomi’s Diner.
Naomi’s Diner will establish a Facebook page with links to the blog and shortened
versions of its posts. Customers will be encouraged to become fans of the Facebook page and then
to share the page with their friends.

35. 5.7.2 Marketing Materials
While a printed marketing kit will not generally be used, it can be prepared based on the
same items on the Naomi’s Diner website. The marketing kit will be used as a press kit and when
seeking relationships with membership organizations which can provide referrals, although it will
not be sent or provided to consumers.
The press/marketing kitwillinclude:
 Difference summary - Describing how the farm-to-fork theme plays out in the restaurant
 Ideal customer description - an actual story of a regular customer who brings his children
and grandchildren to Naomi’s Diner
 Copy of menu and prices
 Description of previous year's promotional theme nights, with customer testimonials for
each
 List of upcoming theme nights
 General testimonials
 FAQs - with information on directions, parking, policies and rules, etc.
 Selection of press articles
Testimonials will be requested on a card provided with the checks given to each table. They
will be sifted through once a week by the manager and the top 10 or so will be set aside for
potential inclusion in the marketing kit and website.
The marketing kit will be updated once a quarter. A cover letter will be tailored to
individual prospects or press outlets as needed.
5.7.1 Price Rationale
The pricing for Naomi’s Diner is intended to set the restaurant well above a fast food
establishment ($10-20 for a meal rather than $5-10). The rationale is that coming to Naomi’s Diner

36. is a special event and customers will feel they can splurge (both calorie-wise and dollar-wise) on
starters, drinks, and desserts because a visit to Naomi’s Diner can be an everyday experience.
The pricing is about 10% lower than traditional diners without any specific theme or
unique packaging. Naomi’s Diner has found over the past two years that this pricing is acceptable
to customers, especially when the target customers are in the older age bracket.
Coupons and first-timer deals will be relatively easy to find on the diner's website and in
radio, print, and online ads, as well as local events. A standard first-timer deal will be a free drink
or small starter with the purchase of a meal. Generally, these type of deals will only be available to
first-timers, and all customers will be tracked by name and address when they take advantage of
these deals.
Regular and premium customers will be rewarded with Naomi’s Diner Points when they
register their information. For every $100 they spend at the restaurant, they will receive 20 off
their next meal.
5.8 Lead Generation Plan
Naomi’s Diner will generate leads through the following means:
Advertising:
 Radio advertising - fun and playful ads with first-timer code for discount (distinct codes
for each radio campaign and station)
 Online pay-per-click advertising - text ads for "family restaurant Sacramento" and related
keywords
 Local media print advertising - fun and playful ads with first-timer code for discount
(distinct codes for each print media outlet)
Referrals:
 Customer referrals

37.  Membership organization referrals
Direct mail campaign:
 1,000 suspects in the Sacramento area chosen from a purchased list
 Over a six month period, one postcard offering a first-timer discount will be sent to the
list each month
 Switch to a new 1,000 suspects after six months
Lead generation tracking will be through the POS system at the reception desk of the
restaurant. The database will track customers by name and part of their address and will include
information on the source of each customer. All customers who take advantage of first-timer
discounts or sign up for Naomi’s Diner Points must be registered in the system. The system will
be able to attach dollar values to the different sources of leads so that they can be evaluated
periodically, and the campaigns can be adjusted or ended if they are not yielding satisfactory
results.
Advertising Medium
Contact
Name
Contact
#
Distribution Cost/Ad
Total
CPM
Sacramento Bee Roger W. omitted TBD TBD TBD
Sacramento News & Review Sharon G omitted TBD TBD TBD
98 Rock KRXQ local radio Frank L. omitted TBD TBD TBD
96.9 local radio Tanya O. omitted TBD TBD TBD
Online local pay-per-click John. J omitted TBD TBD TBD
Sacramento City College Access
Local Paper
Zach B. omitted TBD TBD TBD

38. 5.8.1 Referrals
Naomi’s Diner will seek referrals from returning registered customers after each meal is
completed. The individual who is paying the bill, or other adults at the table, will be given
coupons for first-timers marked "courtesy of THEIR NAME". They will be invited to pass these on
to others who might enjoy the restaurant and who can take advantage of the coupon. When a
coupon is used, 50 Naomi’s Diner Points will be awarded to the referring customer (equal to a $5
value).
Professional referrals will be sought through fraternal and community organizations such
as the Lion's Club and the Shriners, through college alumni other associations (Sacramento
University and Los Rios College District), and through local professional organizations (bar
association, Sacramento accountants, Sacramento medical association, etc.) These organizations
have lower and middle-income memberships which fall into the target market for Naomi’s Diner.
Membership first-timer discount offers will be sent to these organizations, which can be
advertised to their members through their newsletters, websites, or mailing lists.
Lead Conversion Plan
Leads will be developed by distributing coupons to targeted groups at events such as
KRXQ-FM's events at the Sacramento Community Center, Community events at both Sacramento
University and Los Rios College, and local professional organizations meetings and events.
We will have a booth at The Sacramento Farm-to-Fork Celebration held in early
September. Several employees in full uniform will be on hand at all times, attracting Celebration
attendees. A small area will be cleared for staff to hand out free bumper stickers and pins. Anyone
providing their name/email address will be entitled to first-timer discount coupons.
We will also hold raffles for free t-shirts throughout the three day event, with entrants
only required to provide their names and contact information.

39. Other leads will be brought in through referrals fromregular customers, and through
interaction with the Naomi’s Diner website.
Prospects, defined by Naomi’s Diner as customers who have received a first-timer
discount, will all be treated as potential regular customers.
Prospects who receive discounts via the website will have provided their email address to
obtain their first-timer discount code. From that point, they will receive all the mailings the
regular customers receive.
Those who enter the drawing at the Sacramento Farm-to-Fork Celebration will also
provide their contact details to be added to the mailing and promotion list.
Prospects attempting to use a discount or coupon will be required to provide their
information (name, email address, mailing address) in order to move forward. Walk-ins or those
who come in without a discount and are trying the restaurant for the first time will be enticed by
their servers to join the mailing list for the following reasons:
 To stay updated about upcoming theme nights
 To receive coupons that they can pass on to others
 To join the Naomi’s Diner Points program
 To be entered into a drawing for a free dinner
The final option may entice those who did not see themselves being regular customers, but
are interested in the excitement of a drawing.
The next step of lead conversion is a mail and email campaign which is directed at those who
are already registered customers. Quarterly postcards will be sent to the mailing list of registered
customers, with information on upcoming theme nights and coupons they can pass on first-
timers. Monthly email newsletters will be sent to all registered customers with valid email
addresses (all customers who register will be required to provide an email address).

40. Once prospects are converted to customers, the goal will be to promote them into regular
customers who return a number of times a year for meals and theme nights.
Service Experience
Customer loyalty is encouraged and rewarded through both financial means (Naomi’s
Diner Points which translate into coupons for $10 off a meal) and qualitative means (ongoing
theme nights held approximately every other week, which provide many different experiences for
customers). All customers are encouraged to provide feedback at every meal on their survey cards
and on the website through comments emailed to the company. All email comments will be
answered appropriately with at least a form letter thanking them for their suggestion. The goal of
these connections with customers is to make customers feel that the Naomi’s Diner is "their"
place.
Loyalty Product/Service Offerings
The Naomi’s Diner theme nights are primarily focused on regular clients. There will be no
additional cost to attend a theme night, although reservations will be taken to encourage
attendees to plan ahead and invite additional family or friends. Accommodations will be made to
seat large groups together at theme nights.
The Naomi’s Diner Points program also directly involves loyal customers in the process of
building the customer base by inviting them to refer customers and earn 50 Naomi’s Diner Points
for each customer they refer.
WOW Process
Naomi’s Diner Diner's WOW process includes the following elements:
 Customers will be asked to name and rate their server on the survey card provided to each
table. This will not be seen by the server directly. Customers will drop it into a box as they

41. leave. These cards are dated so that the experience can also be tied to that night's kitchen
staff.
 Manager will review the survey cards each night and flag any unsatisfactory remarks for
discussion with the server and kitchen staff. They will review how to handle the situation
in the future.
 Three problems with the same server in one month period will call for discussion with the
manager and then a period of supervision to determine how to rectify the situation.
Servers who don't have their heart in it will generally quit rather than being subject to
observation of this type. Servers who are eager to improve will accept feedback, and
managers will be able to spot specific areas they can improve from this observation period.
 Manager personally stops by each table as they are finishing their meals to ask about the
food and experience.
 Written cooking and preparation guidelines for each item on the menu are given to all
kitchen staff and posted in the kitchen at the preparation stations.
 Servers and kitchen staff with consistently excellent results will be rewarded with a
monthly bonus, as well as consideration for promotion from within as positions open.
Marketing Calendar
Daily marketing activities include the following:
 Review staff reviews and customer suggestions fromthe previous day - first thing in the
morning
 Devote one hour to the marketing "theme" of the month activity - 8 to 9 am
 Devote one hour to other marketing activities (newsletter, advertising, direct mail, PR,
professional referrals, etc.) - 12 to 1 pm

42. The monthly marketing theme focus will be broken into four weeks of actionable steps for a
total of 20 hours devoted the marketing theme each month. This breakdown will be done one
week before the beginning of each month.
Monthly
Months Marketing Theme
1 Membership organization referrals
2 Theme night planning
3 Advertisement planning and revision
4 Direct mail campaign
5 Email newsletter
6 Customer referrals
7 Website revisit/revision
8 PR program
9 Social media tools
10 Marketing kit revision
11 Naomi’s Diner Points program
12 Customer feedback program
5.9 Milestones
Advertising Start Date End Date Budget Manager
Implemented
by
Radio spot writing and recording 2/1/2014 2/15/2015 $2,500 CEO Ad Firm
New print ad design 1/15/2014 2/1/2015 $1,000 CEO Designer
Total Advertising Budget $3,500

43. PR Start Date End Date Budget Manager Department
Redesign marketing kit 2/15/2014 2/28/2015 $500 CEO Designer/CEO
Create target press list 3/1/2014 3/15/2015 $0 CEO CEO
Send first round of press releases for
theme nights
3/15/2014 3/31/2015 $0 CEO CEO
Total PR Budget $500
Direct Marketing
Start Date
End Date Budget Manager Department
Direct mail list development and card
design
2/1/2014 2/15/2015 $1,500 CEO CEO/Designer
Design customer postcard mailing
template
3/15/2014 3/31/2015 $250 CEO Designer
Second list development 8/1/2014 8/15/2015 $500 CEO CEO
Total Direct Marketing Budget $2,250
Web Development
Start Date End Date Budget Manager Department
Website redesign 2/1/2014 3/31/2015 $5,000 CEO Designer
Facebook page design 4/1/2014 4/30/2015 $500 CEO Designer
Email newsletter template design 4/1/2014 4/30/2015 $500 CEO Designer
Total Web Development Budget $6,000
Other
Start Date End Date Budget Manager Department
Marketing training, planning &
curriculum writing
5/1/2014 5/15/2015 $100 CEO CEO/Managers
Begin monthly bonus program 6/30/2014 7/31/2015 $100 CEO CEO/Managers

44. Customer feedback system implement
(print cards, create box, train
employees, create database to track)
4/1/2014 4/30/2015 $250 CEO CEO/Managers
Total Other Budget $450
Totals $12,700
5.9.1. Critical Numbers
Critical numbers will be tracked through the CRM system of the marketing. This
system incorporates data from the POS system, which tracks customer sales as well. All of
the key marketing metrics, as well as customer transactions and the source of each
customer, will be entered into this system. Servers will enter transactions as they occur
and the manager will enter the total testimonials and PR mentions on a weekly basis. The
system can generate a custom report of the key marketing metrics upon request.
6.0 Sales Forecast
Sales forecasts are based on the first-timer meals increasing 5% each month due to
the renewed and increased marketing efforts, regular meals increasing 3% per month and
smaller meals increasing 2% per month. First-timer meals are an important contributor to
regular meals, as many of these customers will be converted to regular meals. The top-
line revenue is the same for both types, but there is generally a high discount for first-
timer meals which is accounted for as a direct cost of sales. Smaller meals are also more
costly than regular meals. Growth will begin to slow in the third year as the restaurant
sales reach the maximum for the location's capacity. In this year, management will plan
for the addition of community based services to increase capacity to grow.

45. Year 1 Year 2 Year 3
Unit Sales
First-Timer Meals 23,876 30,786 31,402
Regular Meals 42,576 52,324 54,940

46. Small Meals, Drinks, Desserts 13,412 14,920 15,368
Total Unit Sales 79,864 98,031 101,710
Unit Prices
Year 1 Year 2 Year 3
First-Timer Meals $20.00 $20.00 $20.00
Regular Meals $20.00 $20.00 $20.00
Small Meals, Drinks, Desserts $8.00 $8.00 $8.00
Sales
First-Timer Meals $477,514 $615,722 $628,037
Regular Meals $851,522 $1,046,481 $1,098,805
Small Meals, Drinks, Desserts $107,297 $119,364 $122,945
Total Sales $1,436,332 $1,781,567 $1,849,786
Direct Unit Costs
Year 1 Year 2 Year 3
First-Timer Meals $8.00 $8.00 $8.00
Regular Meals $5.00 $5.00 $5.00
Small Meals, Drinks, Desserts $3.20 $3.20 $3.20
Direct Cost of Sales
First-Timer Meals $191,006 $246,289 $251,215
Regular Meals $212,880 $261,620 $274,701
Small Meals, Drinks, Desserts $42,919 $47,746 $49,178
Subtotal Direct Cost of Sales $446,805 $555,655 $575,094
6.1 Marketing Expense Budget Summary
The marketing expense budget is approximately $43,000 for 2014. This
encompasses external marketing efforts as well as internal activities such as marketing
training. It does not include one-time design and development costs as detailed in the
Milestones chart. Marketing expenses will increase with inflation in 2015 and 2016,
projected at 4%, with the exception of the loyalty program expense which will grow faster

47. along with sales. It also includes increased costs in September for materials associated
with the Sacramento Farm-to-Fork Celebration.
Each of the major areas described under lead generation and conversion will be
funded significantly and consistently to pay for services required. Labor will be provided
by the company's CEO and the cost of that labor is not included in the expense budget, as
it is part of general salaries.

48. Marketing Expense Budget
Year 1 Year 2 Year 3
Advertising $7,500 $7,800 $8,112
Public Relations $4,000 $4,160 $4,326
Web Development $6,000 $6,240 $6,490
Direct Mail $12,000 $12,480 $12,979
Referral Program $3,000 $3,120 $3,245
Marketing Training $3,000 $3,120 $3,245
Loyalty Program $7,440 $13,505 $14,045
------------ ------------ ------------
Total Sales and Marketing
Expenses
$42,940 $50,425 $52,442
Percent of Sales 2.99% 2.83% 2.84%

49. 6.2 Key Marketing Metrics Summary
Referrals, testimonials, and PR mentions are expected to ramp up significantly
once systems are in place (customer referral offers, survey cards with every order, and
press releases for every theme night). The average customer will return every other
month leading to a transaction rate of .5 each month. This is expected to increase slightly
over the next two years, as will the average transaction per customer.
Between the direct mailing and efforts and targeted dispersal of first-timer
coupons, 1,000 prospects should be able to be considered qualified leads each month. As
marketing efforts take hold, lead conversions should increase.
The CEO will review the key marketing metrics report on a monthly basis against
these goals.
Key Marketing Metrics
Year 1 Year 2 Year 3
Revenue $1,436,332 $1,781,567 $1,849,786
Leads 12,000 13,000 15,000
Leads Converted 6.42% 7.00% 8.00%
Avg.
Transactions/Customer
0.50 0.55 0.60
Avg. $/Customer $18 $19 $20
Referrals 1,362 4,266 4,394
PR Mentions 171 291 300
Testimonials 4,844 8,602 8,860
Other 0 0 0

50. 6.3 Marketing Training Game
All staff will go through training in the following areas, in addition to training specific
to their role at the diner as delivery person, server, receptionist, and kitchen staff:
 Core message and positioning
 Marketing kit materials
 Website
 Marketing efforts
 Naomi’s Diner Points program and referral program
Management will hold five, 90 minute marketing training sessions with all new staff
members. Ideally, it will be held for at least two new staff at one time, although it will be
held with one new staff member if there are not two new staff at the time.
Ongoing training will include a marketing refresher day held every other week.
Morning staff will have their own session at the beginning of their shift and evening staff
will have a session at the beginning of their shift. Although not all staff will be present
each time, the scheduling of the marketing refreshers will be varied so that every staff
person is part of a refresher once a month. The refresher will be organized by the
manager and will consist of a one hour meeting featuring the announcement of monthly
bonuses, discussion of suggestions and comments from customers, updates on the
marketing programs and processes, and discussion of suggestions from the staff.

51. 7.0 Funding and Financial
Projections
The plan projects $11,340,000 net worth by 2007 (three years of operation in a high
activity vacation environment). The plan anticipates full staffing, a small management
team, and maximum acceptance by the dining public. The highest sales will be in the
prime summer vacation months, but we believe our unique offering will draw
customers to Naomi’s Diner all year long.
The owners’ intention is to connect the community through food, and we do that by
forging relationships with the best local producers,” For several years restaurants across the
country have increasingly looked to nearby farms, ranches and fishermen to fill their menus with
foods that have some connection to the local economy. We are a family oriented business that
will create a profit that will enhance the lives of the owners and our employees; and, in part, that
will be given back to our community through company programs and services.
Our market targets college students, social security recipients, families, persons earning
minimum wage and those who live paycheck to paycheck that would like to dine our restaurant in
a welcoming atmosphere for affordable prices.
The Farm to Table Concept
"Farm to table" is the concept of purchasing locally grown food directly from the source. The term
comes from the idea that the less time and fewer hands it takes for the food to get from the farm
to the table, the fresher, more environmentally sensitive and community minded it is. This can
include growing your own garden for sustainable consumption at home or for your restaurant.
Benefits
You can greatly impact the economy of your community, health of your patrons and bottom line
of your food cost budget as a result of buying from a local farm as your main food supplier.

52. Support the local economy.
Money stays within your community, which in turn directly supports your business.
Advertise the information about the farm that grows your food. Engage yourcustomers with your
locally-minded concept and inspire your neighbors to support local commerce as well.
Keep inventory longer.
Food that is purchased directly from the farm will naturally last longer on your shelf. It
hasn’t spent time in a processing plant or on a truck for shipment. It came straight from the
ground to you, meaning you just bought yourself more time to think creatively.
Invest in value.
Many local farmers will compete with nationally recognized grocery store chains,but at
times may charge a bit more because the quality of product that is being sold may be greater.
Local produce and meat is more likely to be organic which increases the value of your menu.
Create a local partnership.
Building a business partnership between your business and local farmers, and other restaurants or
business that support local business, can create a marketing network that promotes and sustains
the local economy.
Challenges
Buying meat locally. Buying locally raised and processed meat, fish and poultry can be
challenging. The U.S. Department of Agriculture restricts the number of birds a farmer can
process on site and does not allow any red meat processing for small farm operations. Because of
this, the meat may have been locally and organically raised with an emphasis on humane
standards, but the slaughter and processing of the meat animals are probably (with the exception
of poultry) handled off site.
Finding off-season produce. There will be periods between planting and harvesting when
produce may not be as bountiful. However, many farmers do have greenhouseswhere produce

53. can be grown during colder months. Discuss off-season options with your partnered farmeror
farmers ahead of time to avoid lack luster deliveries.
Setting-up in the city. Maybe there isn’t a farm just down the road from your restaurant. This is
the case for many businesses, but chances are there is a farm within a reasonable enough distance
to your urban area. Visit your local farmer’s market and inquire about locations. Learn about
delivery options for your establishment, or show up early and stock up weekly at the market.
7.1 PROJECTED ESTIMATED START-UP COSTS
Start-up funding requirements come to just shy of $500,000. This presumes we can move
into an established, equipped restaurant space. Expenses and asset purchases will increase
dramatically if we must fully outfit and equip a space for its first use as a restaurant which could
be as much as $700,000.
Funding will be through a combination of owner investment, outside investment, and
long-term loans. A small amount of current borrowing (credit card purchases) complete the
start-up funding.
7.2 Projected Start-up Funding
Start-up Expenses to Fund $178,420
Start-up Assets to Fund $317,000

54. Total Funding Required $495,420
Assets
Non-cash Assets from Start-up $267,000
Cash Requirements from Start-up $50,000
Additional Cash Raised $420
Cash Balance on Starting Date $50,420
Total Assets $317,420
Liabilities and Capital
Liabilities
Current Borrowing $5,420
Long-term Liabilities $40,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $45,420
Capital
Planned Investment
Owner $50,000
Investor $400,000
Additional Investment Requirement $0
Total Planned Investment $450,000
Loss at Start-up (Start-up Expenses) ($178,420)
Total Capital $272,000
Total Capital and Liabilities $317,840
Total Funding $495,840
7.3 Projected Balance Sheet
ASSETS
Non-Current Assets
Property, plant & equipment $525,000

55. Current Assets
Inventories $55,148
Trade Receivables $85,643
Other Receivables $15,846
Cash & Cash Equivalents $68,989
Total Current Assets $249,664
TOTAL ASSETS $750,626
EQUITY AND LIABILITIES
Equity
Capital Accounts $125,000
Current Accounts $100,000
Total Equity $225,000
Non-Current Liabilities
Long-term Borrowings $400,000
Current Liabilities
Trade Payables $48,464
Other Payables $50,843
Current Portion Borrowings $26,319
Total Current Liabilities $125,624
TOTAL EQUITY AND LIABILITIES $750,626
7.4 Projected Start-Up Costs
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $7,666,320 $9,023,259 $10,620,375
Subtotal Cash from Operations $7,666,320 $9,023,259 $10,620,375
Additional Cash Received
Sales Tax, VAT, HST/GST Received $536,642 $631,628 $743,426
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0

56. New Investment Received $0 $0 $0
Subtotal Cash Received $8,202,862 $9,654,887 $11,363,802
Expenditures
Expenditures from Operations
Cash Spending $634,840 $665,742 $743,426
Bill Payments $3,530,306 $4,194,008 $4,996,678
Subtotal Spent on Operations $4,164,346 $4,859,750 $5,695,707
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $536,642 $631,628 $743,426
Principal Repayment of Current Borrowing $5,400 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $6,900 $8,000 $9,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $100,000 $250,000 $500,000
Subtotal Cash Spent $4,813,288 $5,749,378 $6,948,133
Net Cash Flow $3,489,674 $3,905,508 $4,415,668
Cash Balance $3,440,094 $7,345,603 $11,761,271

57. 7.5 Projected Income Statement
Year 1 Year 2 Year 3
Sales $7,666,320 $9,023,259 $10,620,375
Direct Cost of Sales $2,355,984 $2,695,245 $3,113,008
Other Production Expenses $0 $0 $0
Total Cost of Sales $2,355,984 $2,695,245 $3,113,008
Gross Margin $5,310,336 $6,328,013 $7,507,367
Gross Margin % 69.27% 70.13% 70.69%
Expenses
Payroll $634,040 $665,742 $699,029
Sales & Marketing; Other Expenses $92,807 $81,632 $81,632
Depreciation $12,000 $12,000 $12,000
MICROS System, Phones, -Security, Fire,
Computer Upgrades $10,000 $10,000 $10,000
Exterminating $300 $300 $300
Ceramic/Glass/Silver Upkeep $2,400 $2,400 $3,000
Maintenance/Repairs $22,000 $20,000 $22,000
Linen & Dry Cleaning $2,100 $2,400 $2,700
Dish & Cleaning Supplies $4,800 $5,000 $5,250
Office Products Upkeep $2,400 $2,500 $2,600
Paper Products Upkeep $9,600 $10,000 $11,000
Utilities $28,160 $30,160 $32,160
Insurance $8,604 $9,104 $9,604
Rent $49,800 $54,800 $56,800
Employee Healthcare $36,000 $38,000 $40,000
Comps/Donations/Handouts $30,000 $30,000 $30,000
Payroll Taxes $0 $0 $0
Total Operating Expenses $945,011 $974,038 $1,018,075
Profit Before Interest & Taxes $4,365,325 $5,353,975 $6,489,292
EBITDA $4,377,325 $5,365,975 $6,489,292
Interest Expense $3,223 $2,388 $1,691
Taxes Incurred $1,090,525 $1,337,897 $1,621,900
Net Profit $3,271,576 $4,013,690 $4,865,701
Net Profit/Sales 42.67% 44.48% 45.81%

58. 7.5.1 Employee Wages
EMPLOYEE
POSITION HOURLY WAGE
ANNUAL WAGE
AVERAGE LOWEST – HIGHEST
PERCENTILE
AVERAGE LOWEST – HIGHEST
PERCENTILE
Restaurant Managers $26.12 $16.58-$38.61 $50,150 $31,834 - $74,131
Restaurant Cooks $12.56 $11.27-$18.55 $24,115 $21,638 - $35,616
Dishwashers/Bussers $10.25 $9.56-$12.38 $19,680 $18,355 - $23,770
Expediters $9.50 $8.50-$16.50 $18,240 $16,320 - $31,680
Bartenders $11.50 $10.66-$13.50 $22,080 $20,467 - $25,920
Hosts/Hostesses $9.25 $8.55-$11.34 $17,760 $16,416 - $21,773
Servers $9.00 $8.13-$11.55 $17,280 $17,280 - $22,176
7.5.2 Expected Personnel

59. 7.6 Projected Sales Forecast
(Cover Counts and Check Averages w/100-120 seat capacity)
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY AVERAGES
FOOD
Breakfast
Covers 120 120 120 130 150 150 132
C/A $12 $12 $12 $12 $14 $15 $13.00
Lunch
Covers 210 210 210 240 300 300 245
C/A $15 $15 $15 $15 $18 $20 $16.00
Dinner
Covers 260 260 260 300 360 360 300
C/A $20 $20 $20 $25 $30 $30 $24.00
TOTAL $9790 $9790 $9790 $12,660 $18,300 $18,300 $13,105
BEVERAGES
Breakfast 120 120 120 130 150 150 132
Covers $3 $3 $3 $3 $5 $5 $4.00
C/A
Lunch
Covers 210 210 210 240 300 300 245
C/A $5 $5 $5 $5 $8 $8 $6.00
Dinner
Covers 260 260 260 300 360 360 300
C/A $8 $8 $8 $8 $10 $12 $9.00
TOTAL $3,490 $3,490 $3,490 $3,990 $6,750 $7,470 $4,780

60. TOTALS $13,280 $13,280 $13,280 $16,650 $25,050 $25,770 $17,885
Average daily food sales: $13,105
Average daily beverages sales: $4,780
Average daily sales: $17,885
Total weekly food sales: $78,630
Total weekly beverage sales: $28,680
Total weekly sales: $107,310
Annual food sales: $4,088,760
Annual beverages sales: $1,491,360
Annual sales: $5,580,120
Year One Year Two Year Three
Food sales $4,088,760 $4,906,512 $5,282,488
Beverage sales: $1,491,360 $1,790,232 $2,013,936
Total Sales: $5,580,120 $6,696,744 $7,296,424
$4,088,760 $4,906,512 $5,282,488
$1,491,360
$1,790,232
$2,013,936
YEAR ONE YEAR TWO YEAR THREE
Projected Sales Forecast
Food Sales Beverage
Sales

61. 7.7 PROJECTED COST OF GOODS SOLD (COGS) REPORT
PRODUCT
BEGINNING
INVENTORY
PURCHASES
ENDING
INVENTORY
COST OF
GOODS SOLD
SALES
COGS/
SALES
Food $2,800 $8,700 $2,700 $8,800 $29,678 29.65%
Beverages 1,345 750 1,296 799 4,120 19.39%
Beer 895 300 910 285 2,700 10.56%
Wine 3,200 350 2,100 1,450 6,800 21.32%
TOTAL $8,240 $10,100 $7,006 $11,334 $43,298 26.18%
7.8 Projected Break Even Analysis
Jan Feb Mar Apr May June
Monthly Expenses $276,423 $244,555 $255,177 $265,800 $276,423 $287,046
Monthly COGS $104,291 $88,647 $93,862 $99,076 $104,291 $109,505
Required Revenue $380,714 $333,202 $349,039 $364,876 $380,714 $396,551
Monthly Expenses +
COGS
$380,714 $333,202 $349,039 $364,876 $380,714 $396,551

62. 7.9 Projected Profit and Loss Statement
Jan Feb Mar Apr May June Total
CASH RECEIPTS $ $ $ $ $ $ $
Food Sales 312,884 255,996 270,218 284,440 312,884 327,106 1,763,528
Beverage Sales 118,499 96,953 102,340 107,726 118,499 123,885 667,901
Sales Receivables 0 0 0 0 0 0 0
TOTAL REVENUE $431,383 $352,949 $372,558 $392,166 $431,383 $450,991 $2,431,429
CASH DISBURSEMENTS
Food Cost 78,221 66,488 70,399 74,310 78,221 82,132 449,771
Beverage Cost 26,070 22,159 23,463 24,766 26,070 27,373 149,901
TOTAL COST OF SALES $104,291 $88,647 $93,862 $99,076 $104,291 $109,505 $599,671
Payroll
Salaries 43,138 36,668 38,824 40,981 43,138 45,295 248,045
Hourly Wages 64,707 55,001 58,237 61,472 64,707 67,943 372,067
Taxes & Benefits 43,138 36,668 38,824 40,981 43,138 45,295 248,045
Contract Labor 0 0 0 0 0 0 0
TOTAL PAYROLL $150,984 $128,336 $135,886 $143,435 $150,984 $158,533 $868,157
Operating Expenses
Direct Operating Expenses 10,785 9,167 9,706 10,245 10,785 11,324 62,011
Music & Entertaining 2,157 1,833 1,941 2,049 2,157 2,265 12,402
Marketing 21,569 18,334 19,412 20,491 21,569 22,648 124,022
Energy & Utilities 8,628 7,334 7,765 8,196 8,628 9,059 49,609
General & Administrative 14,020 11,917 12,618 13,319 14,020 17,721 80,615
Repairs & Maintenance 4,314 3,667 3,882 4,098 4,314 4,530 24,804
TOTAL OPERATING EXPENSES
$61,472 $52,251 $55,325 $58,398 $61,472 $64,546 $353,464
OTHER EXPENSES
Rent 30,000 30,000 30,000 30,000 30,000 30,000 180,000
Real Estate Taxes 6,667 6,667 6,667 6,667 6,667 6,667 40,002
Lease Expenses 1,200 1,200 1,200 1,200 1,200 1,200 7,200
FF&E Reserve 8,300 8,300 8,300 8,300 8,300 8,300 49,800
Insurance 8,300 8,300 8,300 8,300 8,300 8,300 49,800
TOTAL OTHER EXPENSES $54,467 $54,467 $54,467 $54,467 $54,467 $54,467 $326,802

63. DEPRECIATION 5,200 5,200 5,200 5,200 5,200 5,200 31,200
INTEREST 4,300 4,300 4,300 4,300 4,300 4,300 25,800
TOTAL CASH DISBURSEMENTS
$380,714 $333,202 $349,039 $364,876 $380,714 $396,551 $2,205,095
CASH FLOW FROM OPERATIONS
Cash Receipts $431,383 $352,949 $372,558 $392,166 $431,383 $450,991 $2,431,429
LESS: Cash Disbursements 380,714 333,202 349,039 364,876 380,714 396,551 2,205,095
NET FROM OPERATIONS $50,669 $19,748 $23,519 $27,290 $50,669 $54,440 $226,334
CASH ON HAND
OPENING BALANCE 0 $50,669 $70,417 $93,935 $121,225 $171,894
PLUS: New Loan (debt) 0 0 0 0 0 0
PLUS: New Investment 0 0 0 0 0 0
PLUS: Sale of Fixed Assets 0 0 0 0 0 0
PLUS: Net From Operations $50,669 $19,748 $23,519 $27,290 $50,669 $54,440
TOTAL CASH AVAILABLE $50,669 $70,417 $93,935 $121,225 $171,894 $226,334
LESS: Debt Reduction 5,067 7,042 9,394 12,122 17,189 22,633
LESS: New Fixed Assets 0 0 0 0 0 0
LESS: Accrual: Profit Distributions 0 0 0 0 0 0
TOTAL CASH PAID OUT $5,067 $9,017 $11,746 $14,851 $22,256 $28,073
ENDING CASH POSITION $45,602 $61,400 $82,189 $106,374 $149,638 $198,261

64. 8.0 Projected Cash Flow
Jan Feb Mar Apr May June Total Total
% of Sales
REVENUES
Food Sales 312,884 255,996 270,218 284,440 312,884 327,106 1,763,528 72.53%
Beverage Sales 118,499 96,953 102,340 107,726 118,499 123,885 667,901 27.47%
Other Income 0
TOTAL REVENUE $431,383 $352,949 $372,558 $392,166 $431,383 $450,991 $2,431,429 100.00%
EXPENSES $ $ $ $ $ $ $
Food Cost 78,221 66,488 70,399 74,310 78,221 82,132 449,771 25.00%
Beverage Cost 26,070 22,159 23,463 24,766 26,070 27,373 149,901 22.00%
Total COGS $104,291 $88,647 $93,862 $99,076 $104,291 $109,505 $599,671 24.66%
Payroll
Salaries 43,138 36,668 38,824 40,981 43,138 45,295 248,045 10.00%
Hourly Wages 64,707 55,001 58,237 61,472 64,707 67,943 372,067 15.00%
Taxes & Benefits 43,138 36,668 38,824 40,981 43,138 45,295 248,045 10.00%
Contract Labor 0 0 0 0 0 0 0 0.00%
Total Payroll $150,984 $128,336 $135,886 $143,435 $150,984 $158,533 $868,157 35.00%
Operating Expenses
Direct Operating Expenses 10,785 9,167 9,706 10,245 10,785 11,324 62,011 2.50%
Music & Entertaining 2,157 1,833 1,941 2,049 2,157 2,265 12,402 0.50%
Marketing 21,569 18,334 19,412 20,491 21,569 22,648 124,022 5.00%
Energy & Utilities 8,628 7,334 7,765 8,196 8,628 9,059 49,609 2.00%
General & Administrative 14,020 11,917 12,618 13,319 14,020 17,721 80,615 3.25%
Repairs & Maintenance 4,314 3,667 3,882 4,098 4,314 4,530 24,804 1.00%
TOTAL OPERATING EXPENSES
$61,472 $52,251 $55,325 $58,398 $61,472 $64,546 $353,464 14.25%

65. GROSS OPERATING PROFIT
$114,636 $83,715 $87,486 $91,257 $114,636 $118,407 $610,136
OTHER EXPENSES
Rent 30,000 30,000 30,000 30,000 30,000 30,000 180,000
Real Estate Taxes 6,667 6,667 6,667 6,667 6,667 6,667 40,002
Lease Expenses 1,200 1,200 1,200 1,200 1,200 1,200 7,200
FF&E Reserve 8,300 8,300 8,300 8,300 8,300 8,300 49,800
Insurance 8,300 8,300 8,300 8,300 8,300 8,300 49,800
TOTAL OTHER EXPENSES $54,467 $54,467 $54,467 $54,467 $54,467 $54,467 $326,802
ADJUSTED PROFIT $60,169 $29,248 $33,019 $36,790 $60,169 $63,940 $283,334
DEPRECIATION 5,200 5,200 5,200 5,200 5,200 5,200 31,200
INTEREST 4,300 4,300 4,300 4,300 4,300 4,300 25,800
TOTAL INTEREST AND DEPRECIATION
$9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $57,000
NET PROFIT/LOSS $50,669 $19,748 $23,519 $27,290 $50,669 $54,440 $226,334 9.31%

66. Appendix
Sales Forecast
Month 1
Month
2
Month
3
Month 4 Month 5
Month
6
Month
7
Month
8
Month 9
Month
10
Month
11
Month 12
Unit Sales
First-Timer
Meals
0% 1,500 1,575 1,654 1,736 1,823 1,914 2,010 2,111 2,216 2,327 2,443 2,566
Regular Meals 0% 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 3,800 3,914 4,032 4,153
Small Meals,
Drinks,
Desserts
0% 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243
Total Unit
Sales
5,500 5,685 5,877 6,076 6,282 6,496 6,718 6,949 7,188 7,436 7,694 7,962
Unit Prices Month 1
Month
2
Month 3
Month
4
Month
5
Month
6
Month 7
Month
8
Month
9
Month
10
Month
11
Month 12
First-Timer
Meals
$20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00

67. Regular Meals $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00
Small Meals,
Drinks,
Desserts
$8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00
Sales
First-Timer
Meals
$30,000 $31,500 $33,075 $34,729 $36,465 $38,288 $40,203 $42,213 $44,324 $46,540 $48,867 $51,310
Regular
Meals
$60,000 $61,800 $63,654 $65,564 $67,531 $69,556 $71,643 $73,792 $76,006 $78,286 $80,635 $83,054
Small Meals,
Drinks,
Desserts
$8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561 $9,752 $9,947
Total Sales $98,000 $101,460 $105,052 $108,782 $112,655 $116,678 $120,855 $125,195 $129,703 $134,387 $139,254 $144,311

68. Direct Unit
Costs
Month
1
Month 2
Month
3
Month 4 Month 5
Month
6
Month
7
Month 8 Month 9
Month
10
Month
11
Month
12
First-Timer
Meals
40.00% $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00
Regular
Meals
25.00% $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00
Small Meals,
Drinks,
Desserts
40.00% $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20
Direct Cost
of Sales
First-Timer
Meals
$12,000 $12,600 $13,230 $13,892 $14,586 $15,315 $16,081 $16,885 $17,729 $18,616 $19,547 $20,524
Regular
Meals
$15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 $20,764
Small Meals,
Drinks,
Desserts
$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979
Subtotal
Direct Cost
of Sales
$30,200 $31,314 $32,473 $33,678 $34,932 $36,238 $37,596 $39,009 $40,480 $42,012 $43,606 $45,266

69. Marketing Expense Budget
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month
10
Month 11
Month
12
Advertising $500 $500 $500 $500 $500 $500 $500 $500 $500 $2,000 $500 $500
Public Relations $250 $250 $250 $250 $250 $250 $250 $250 $250 $1,250 $250 $250
Web Development $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Direct Mail $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Referral Program $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Marketing Training $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Loyalty Program $150 $200 $300 $500 $550 $605 $666 $732 $805 $886 $974 $1,072
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Total Sales and
Marketing
Expenses
$2,900 $2,950 $3,050 $3,250 $3,300 $3,355 $3,416 $3,482 $3,555 $6,136 $3,724 $3,822
Percent of Sales 2.96% 2.91% 2.90% 2.99% 2.93% 2.88% 2.83% 2.78% 2.74% 4.57% 2.67% 2.65%

70. Key Marketing Metrics
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Revenue $98,000 $101,460 $105,052 $108,782 $112,655 $116,678 $120,855 $125,195 $129,703 $134,387 $139,254 $144,311
Leads 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Leads Converted 5.00% 5.00% 6.00% 6.00% 6.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Avg.
Transactions/Customer
0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Avg. $/Customer $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18
Referrals 0 0 0 50 55 72 93 121 157 204 265 345
PR Mentions 5 7 10 11 12 13 15 16 18 19 21 24
Testimonials 0 0 0 0 500 550 572 595 619 643 669 696

71. Gap Dashboard
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month
10
Month 11
Month
12
Personal
Shift
management
time
120 96 84 72 60 60 60 60 60 60 60 60
Hours of
marketing
work
30 40 40 40 40 40 40 40 40 40 40 40
Business
Revenue $98,000 $101,460 $105,052 $108,782 $112,655 $116,678 $120,855 $125,195 $129,703 $134,387 $139,254 $144,311
Cash reserved
for new
restaurant
$10,000 $15,073 $15,253 $15,439 $15,633 $15,834 $16,043 $16,260 $16,485 $16,719 $16,963 $17,216
Strategic
PR mentions 5 7 10 11 12 13 15 16 18 19 21 24
Ranking in
Sacramento
Post Annual
Restaurant
Review
5 0 0 0 0 0 0 0 0 0 0 0

72. Tactical
Theme nights
held
0 1 1 1 1 2 2 2 2 2 2 2
Naomi’s Diner
Points awarded
9,800 15,219 21,010 27,196 39,429 46,671 48,342 56,338 58,366 60,474 65,449 72,156

73. ADDENDUM
After having been a long-haul truck driver, which was my “dream” job while
growing up, I decided to come off the road and stay in Sacramento where my
children were. I landed a job with Black Angus Restaurant where I worked for five
years. I started out as a Hostess and was promoted to the Expeditor position after
an unheard of three months. This is where I stayed for the remainder of my time
until the doors closed due to the recession.
I discovered while there that I really enjoyed the restaurant business and
while looking for another job and really not finding much out there I decided I
needed to go back to school. During my first two semesters I realized that just
being a manager in a restaurant wasn’t really what I wanted to do with the rest of
my life and changed my major to Small Business Management. I wanted to own
my own restaurant.
While doing the intense research that I did for this assignment, I was more
and more certain that this is what I wanted for myself. I have made a 5-year plan
which includes saving and further research.