ISM UNIVERSITY OF MANAGEMENT AND ECONIMICS

BUSINESS MANAGEMENT AND ANALYTICS BACHELOR STUDIES

III year students
Vytautas Vasiliauskas
Arnoldas Kybartas
2014 05 31



MOBILE RESTAURANT
BUSINESS PLAN






Supervisor
Lecturer Thomas Frank













VILNIUS, 2014

Table of Contents

EXECUTIVE SUMMARY ....................................................................................................... 4
Idea ......................................................................................................................................... 4
Our strategy ............................................................................................................................ 4
Our product and future growth .............................................................................................. 4
ORGANIZATIONAL STRUCTURE ....................................................................................... 5
Legal structure ....................................................................................................................... 5
Ownership Structure .............................................................................................................. 5
Organization Chart ................................................................................................................. 5
MARKETING PLAN ................................................................................................................ 7
Marketing objectives .............................................................................................................. 7
Marketing strategies ................................................................................................................... 7
Target market ......................................................................................................................... 7
Positioning statement ............................................................................................................. 8
Marketing mix ........................................................................................................................ 8
Brand name ........................................................................................................................ 8
Product/Service .................................................................................................................. 8
Pricing ................................................................................................................................ 8
Distribution channels ......................................................................................................... 9
Marketing communications ............................................................................................... 9
Marketing research................................................................................................................... 10
Marketing budget ..................................................................................................................... 10
OPERATIONS PLAN ............................................................................................................. 11
Physical location .................................................................................................................. 11
Day to day activities............................................................................................................. 11
Management Activities .................................................................................................... 11
Sales activities .................................................................................................................. 12
People ................................................................................................................................... 12
Leadership ........................................................................................................................ 12
Employees ........................................................................................................................ 12
External Service providers ............................................................................................... 13
Training programs ............................................................................................................ 13
Facilities ............................................................................................................................... 13
Mobile restaurant ............................................................................................................. 13
Equipment ........................................................................................................................ 14
Quality Control Systems .................................................................................................. 14
Major Suppliers of key resources .................................................................................... 14
Management Control ....................................................................................................... 15
FINANCIAL PLAN................................................................................................................. 16
Summary .............................................................................................................................. 16
Sales revenue forecast .......................................................................................................... 16
Sources of revenue ............................................................................................................... 16
Potential customers estimation ............................................................................................ 18
First year revenue ................................................................................................................. 19
Second year revenue ............................................................................................................ 20
Third year revenue ............................................................................................................... 21
Income statement ................................................................................................................. 22
Cash flow schedule .............................................................................................................. 23
Explanation of the Cash Flow Schedule .............................................................................. 24
Cash inflow ...................................................................................................................... 24
Cash outflows................................................................................................................... 24
Balance sheet ....................................................................................................................... 25
Start up cash requirements ................................................................................................... 26
Costs ................................................................................................................................. 26
Fixed costs ....................................................................................................................... 26
Variable costs ................................................................................................................... 27
Financing strategy ................................................................................................................ 28
1st option .......................................................................................................................... 28
2nd option ........................................................................................................................ 28
GROWTH STRATEGY .......................................................................................................... 29













EXECUTIVE SUMMARY

Idea

Our business plan idea is to create a chain of mobile restaurants. This is a simplified version
of a standard restaurant that most of the people go to eat for breakfast, lunch, and dinner. The
whole concept is very similar to the kebab kiosks that there are plenty in Lithuania, but there
are few major differences that our idea stands out. The first difference is mobility. There are
plenty of various food kiosks but neither of them can move, even though they are on wheels.
The second difference is the food itself, to our knowledge there arent any food kiosks where
you can actually buy a regular lunch instead of fast food.

Our strategy

We are planning to be very flexible and adjust to customer needs, and to fulfil working time
we are planning to cater whole day meals, for example in the morning our menus would
consist of fresh simple cup of coffee, tea or juice and some buns for those people who are in a
hurry. In the mornings our main selling spots could be where plenty of people are waiting for
public transportation, or at the universities campuses. For the lunch our main goal would be
to cater as much people as possible, thats why we would choose business center areas and
universities, that dont have, or have very small canteens for example ISM. For the evening
we could choose places, where people would like to gather, parks and other cozy places.

Our product and future growth

As mentioned above we would be very flexible and would have a competitive advantage
against our rivals, that we would serve fresh and good quality food. The client could choose
main meal, adding to the meal, side dishes, soups, deserts and various snacks and drinks.
Taking about the development of mobile restaurant idea we could see an opportunity to grow
not only in our capital, but also to expand to cities such as Kaunas and Klaipeda, where
gathers a lot of students and are lot of business centers. After a year our optimistic plans are
to expand to other two Baltic capital cities Riga and Tallinn. Looking in the long time period
we are not tending to limit ourselves only by a mobile restaurant, after years of being
attractive to our customers we are willing to bring a group of our brand lovers who would
create a demand for our restaurants chain and we will be forced to create not only mobile
restaurant, but also a normal healthy restaurant chain.



ORGANIZATIONAL STRUCTURE

Legal structure

Our company will be registered as a private limited liability company. In Lithuania it will be
called UAB Mobilus restoranas. According to Lithuanian policies, the start-up capital of a
company must be higher than 10000 Lt in order to register the company as UAB. Also, there
should be no more than 250 shareholders inside the company. Finally, the organization cant
distribute shares outside the company.

We will need to collect several documents in order to be registered as UAB Company. Also,
the bank account with minimum capital must be opened, as well as a bank certificate proving
the availability of the funds should be obtained. Besides that, the owners of the company
should get a confirmed electronic signature from the Centre of Registrar of Certificates. Also
it is important to complete VAT registration, because annual turnover is expected to be more
than 155,000 LT. Finally, the company should obtain the official seal of the company.

Ownership Structure

The owners of the company will be the two general managers, who will run the business.
They will be responsible for hiring new employees. Also, they will manage their documents
and their salaries. GM will supervise all of companys employees. Therefore, the owners
must be management experts. They will be the most important figure for the company, since
they will take responsibility for all activities of the company. The general managers will
make all decisions considering the operations of the business.

Organization Chart

The company will have 10 employees during the first three years of operations. The main
management team will include two general managers. The general managers will constitute
the board of directors. They will make major decisions about the organization. In addition to
that the company will employ part-time marketing company that will help the store to
increase sales, but this will not include in the number of 10 employees. The company will
also employ sales people and chefs for operating the mobile restaurants.






The organization will have a vertical information flow. The information will flow upward and
downward. All decisions will be made by the general managers and will be communicated to
lowest chain part. Employees will be able to communicate their suggestions and thoughts
about the business to the general managers directly. Thus, it is expected that no problems
with communication will appear.

General
Managers
Sales
people
Kitchen
chefs
MARKETING PLAN

Marketing objectives

Our main marketing plan objectives:
Awareness (to make customers aware that new restaurants are available).
Gain popularity between our potential customers and till the end of the first year to
attract 15% of them.
To generate revenue of 4 804 575 Lt in the first year.
In the second year to increase our sales by 60% and the third year sales by 20%
comparing to the second year.
To become a new business people attribute of a healthy lifestyle.
To become a new trend for youths, where they could have a conversation with friends.
To become recognizable and most trusted mobile restaurant brand in the capital city
of Vilnius.
Marketing strategies

Target market

In Vilnius there are about 400 cafs and restaurants, most of them are located in the city
center. For business people, who work in business centers distant from the old town arise a
problem, how to have a time to drive to nice restaurant, to dine and come back to work during
one hour length lunch break and for students restaurants and cafes in old town and city center
is not affordable.
Our main target group would be employees of business centers, who will be having whole
meal lunch. Average income of our primary target group is approximately about 2500 Lt, so
we could do the assumption that they could afford to spend from 17 to 22 Lt for the lunch
every day. Our customer age is about from 20 to 35 years, because these people lifestyle is
similar to west Europeans or Americans, which are mostly open for innovativeness and
search ways to eat healthy and at the moment save their time.
Secondary target group is youth, who is always in a hurry and do not have time to drink cup
of coffee with their friends. This target group could be named as an active students for whom
24 hours is not enough to do everything they have planned. This target group income is not as
high as the first groups, but they still will visit our restaurant because of a new trend and
during their conversation with their friends they could afford to drink a cup of coffee with
some snacks or desserts from our menu.


Positioning statement

Mobile restaurants are going to be the only one restaurant brand in Lithuania, which have
wheels and could be moved in every place, which has a parking lot. It would be the first
restaurant positioned as mobile and flexible, which provide high quality whole meal food in
convenient location only in a several minutes from taking the order. The time spent in the
mobile restaurant would not exceed the time you eat in a fast food restaurant (McDonalds),
but the quality of the food will make you feel healthy and active to do the remaining job after
lunch, and the place we are located will decrease your lunch and journey time minimum by
20 minutes.

Marketing mix


Brand name

Mobile restaurant name would reflect our two main advantages among our rivals. Mobile will
mean that we are quick, movable, live and flexible. Restaurant - that we are qualitative and
ready to serve food, which is fresh, tasty and affordable.

Product/Service

Our business lunch menu would differ from fast food and would not be a junk food, because
we would provide only regular dishes which is usual in normal restaurants, also our service
would be fast comparing to regular restaurants, because you would not need to wait half an
hour for your order. The location of our restaurant is changeable and according to the demand
location is chosen where it is most handy for the most of our customers.

Pricing

We will be affordable for people whose income is little bit less than average in Lithuania
about 2000 Lt and for all the others who want high quality meal in extremely short time. Our
menu is created to be available for customers according to their needs.




Soup of the day + salad + drink (juice, coffee or
tea)
17 LT
Soup of the day + main dish + drink (juice,
coffee or tea)
19 LT
Soup of the day + salad + drink (juice, coffee or
tea) + dessert or snack
20 LT
Soup of the day + main dish + drink (juice,
coffee or tea) + dessert or snack
22 LT
Soup of the day 7 LT
Salad 10 LT
Main dish 13 LT
Dessert 6 LT
Snack (bun or croissant) 4 LT
Juice 4 LT
Coffee or tea 5 LT


Distribution channels

For the first years we are planning to have three restaurants on wheels, whose location could
be changed according to the demand. But most attractive locations for us are the business
centers which are located not in the city center. In these business centers approximately are
working about 25000 people which are a lot promising to create a demand for our restaurants.
After lunch hours we are planning to move into places that are popular among youth it is park
areas or campuses of universities, also during the weekends in the warm period of the year
we will participate in sport events.

Marketing communications

Our first marketing communication would be the leaflets. Leaflets will be distributed among
the business centers employees to create as much awareness as we can, because this is our
main target group. In most of the Lithuanias offices we could see a trend of listening to the
normal or internet radio and broadcasting our advertising through popular radio stations we
will reach our main target group and other potential customers. Also we will use banner
advertising in popular news internet pages, because a lot of people are reading news there
during the work time and another marketing communication would the promotion through
Facebook, where we could announce our menu.




Marketing research

To understand our main target group needs we will do the survey, as a sample we will take
about 1000 people from business center. We think that this sample will be big enough to
represent the needs of whole population of our main target group. We will create a
questionnaires which will help to improve our decision making and help to avoid serious
problems in the future, and people who will participate in our survey we will give a free cup
of coffee or tea.

Marketing budget

We plan that our marketing budget would be about 20000 Lt. To print 100000 leaflets will
cost about 2000 Lt, we hope this would be enough to get awareness between the business
people in the offices. In May we will launch the one month advertising broadcast in the radio
station in which one month cost about 10000 Lt. After three months in September we will
launch the 3 month banner advertising campaign which in total will cost about 7500 Lt.
Nowadays most effective and attracting the most attention of consumers is promotion through
the Facebook, which is for free. In our plans our marketing budget should not exceed the
20000 Lt.
























OPERATIONS PLAN

Physical location

For the first three years we are planning to use our mobile restaurants as headquarter. As the
shelf of the restaurant has enough places for the kitchen, we might use some space for the
tables and computers. The places of headquarters naturally become the place where are our
restaurants located.

Our main targeted regions, as mentioned in the beginning of this business plan, are the places
where the most business centers are located, later we might move to the universities
territories and expand to other cities (Kaunas, Klaipeda, Riga and Tallinn). Business centers
are probably the safest place to keep and locate our mobile restaurants during nights, as there
is plenty of security over there.

Day to day activities

Our mobile restaurants will operate from 07:00 to 23:00, all week long, which means that
each restaurant will have 1.5 shifts.
Our company, for the first two-year is planning to employ 3 chefs, 5 sales people and 2
general managers, in total there will be 10 employees.
Management Activities

For the first year of operation, general managers main daily tasks will involve mainly
directing and coordination the activities of the business and the departments concerned with
sales, organization and distribution. They will have to develop and maintain a comprehensive
understanding of the working procedures.
For the first year of operations, the general managers will prepare and assign specific duties
for the sales people. They will mainly be concerned with serving and attracting as many
customers as possible.
The general manager will also be responsible on signing the contracts with the future
suppliers and partners. He will provide support in managing projects run by the project
manager, including execution in a timely, accurate and consistent manner the allocation of
resources.
The general manager will prepare and review budgets on the regularly base gathering
information for planning of the future expenses, and allocating cash resources where needed.
Moreover, he will summarize and consolidate the budget estimates.
Sales activities

We will have 5 sales people, whom duties will involve working with cash registers, serving
customers, cleaning restaurant place, preparing outside tables and driving mobile restaurants
to the places where those restaurants will be located. They are a very important part of
business, as company performance will very strongly depend on their performance. Even
though we will have 3 mobile restaurants in the first few years we will need 5 sales people
because there will be one and a half shift, so that all the people would get appropriate
working time.

People

Leadership

General Manager (salary range: LTL 3000/ month LTL 4000/ month) Is the person
driving force behind the company; he or she will make things happen, put together resources
to support the company and take the products and services to the market place. The individual
is the leader of the organization, its duties being handling external relations with the
companys suppliers, customers and partners. Also, the individual is in charge of controlling
the team and evaluating the performance of each individual. The General Manager will be the
person who will set goals for each mobile restaurant, and the one that will ensure the goals
are met.

Employees

Sales person (salary range: LTL 1500/ month LTL 2500/ month) Is the person that is
responsible for the operations of the mobile restaurant; he or she will guide work together
with kitchen chefs and will be responsible for serving the clients, for the visual looks of the
restaurants (cleanliness) and responsible that there are enough supplies. Sales person will be
in charge of driving the mobile restaurant to the necessary place and to prepare mobile
restaurant for the working day.
Chef (salary range: LTL 2500/ month LTL 3500/ month) Is the person that is responsible
for everything in the kitchen; he or she will take all the responsibilities of all the food. Duties
of a chef are to ensure the taste, visual looks and healthiness of the food. Chefs will also be
responsible for creating daily menus, cleaning working place and making list of all needed
products.



External Service providers

Contracted Accountant/bookkeeper (expenditures range: LTL 8.000/year LTL 12.000/year)
This company will be in charge of the primary responsibility for our company financial
records, making sure the appropriate taxes are paid. They are also in charge of overseeing the
efficient use of funds related to tasks. Also, they will work closely with the companys clients
in preparation, explanation and verification of any financial paperwork. Another major task
accountants/bookkeepers have is in helping customers go over their budgeting and help them
make plans for future investments.

Training programs

Our company is planning to have only one training program for the first few years. This
training program will be for both, chefs and sales people. Training program will include all
the instructions how to operate the mobile restaurant, as operating this machinery requires
special trainings. Training will also include main instructions of what to do in case of
technical failure and etc. We are planning to have this training a month before our mobile
restaurants will start to operate.

Facilities

Mobile restaurant



We are planning to buy 3 mobile restaurant facilities for the first few year. Mobile restaurant
will consist of truck, restaurant shelf, storage compartment and office shelf. Complete
restaurant costs 660.000 LTL excluding kitchen and other necessary equipment.
Equipment

Main expenditures for our mobile restaurants equipment will go to the kitchen equipment,
which will cost 200.000 LTL for each mobile restaurant. Other equipment expenditures will
consists of cash registers, office equipment and software. The total price for this equipment
will be 50.000 LTL

Quality Control Systems

Sales Person will be responsible for the quality control, because he will receive the products
from our suppliers and in most cases will be the most frequent member who will mostly
communicate with the customers. For sure we trust our supplier VILSIDA, because the brand
name speaks for itself and guarantees the quality, but to be sure our Sales Person, as I have
mentioned before, will supervise every shipment. In the supervision also will be involved our
restaurant Chef who will evaluate the freshness and quality level of the food. Chefs opinion
is most important, because he is preparing the dishes and is the person who is responsible that
our customers will be satisfied by our product. Service quality control also will be the duty of
our Sales Person, because his task would be to initiate conversation with the customers that
they could share opinion about the service. Little surveys among our visitors will help to
improve our service and ensure the sustainability in our activities long time period.

Major Suppliers of key resources

In restaurant businesses one of the main key resources is food, because our menu will consist
of various courses, including drinks, soups snacks and main dishes, we will need strong
supplier partnership, which could provide qualitative food in time. Mobile restaurant is
planning to create partnership with one of the biggest food suppliers in Lithuania named
VILSIDA. UAB VILSIDA was established in 1997 and through the years have created
reliable brand image. Years of experience and cooperation with foreign partners from Russia,
Ukraine, Latvia, Estonia and biggest local retail chain brands such as Maxima, Iki and Rimi
led to a wide range of quality products, various flavors and favorable prices. Collaboration
with such supplier will guarantee the highest quality and lowest prices in the market.








Management Control

At the top of our companys structure will be General Manager who is the driving force of
our mobile restaurants. Regular review meetings will be organized in every beginning of the
week, where all the team members could share their opinion and observations about the
improvement of the procedures in service and product preparation. Direct supervision will be
used to find out about the performance of every employee and if some weaknesses will be
noted, training will be provided to raise employees skills. Sales Persons and Chefs will
provide their reports to General Manager, if anything has changed in the process and why,
also provide suggestions how to fix the problem and share the future plans how to avoid the
arising difficulties. The biggest control force will be reflected in the financial statement,
which must be prepared in every three months. There would be easiest way to check and
measure performance, because number never lies and shows have you reached your set tasks
and plans.





















FINANCIAL PLAN

Summary

In Vilnius there are about 400 cafs and restaurants, most of them are located in the city
center. For business people, who work in business centers distant from the old town arise a
problem, how to have a time to drive to nice restaurant, to dine and come back to work during
one hour length lunch break.

Sales revenue forecast

According to the data collected by tv show Pinig karta(Cash generation) regular business
lunch cost are in the interval from 10 to 26 Litas. Business lunch menu mostly offer a soup of
the day, main dish or salad, also sometimes it includes a juice, coffee or tea, and very rarely it
offers desert or snacks. In cafs where business lunch cost about 10 to 13 Litas you will get a
shoddy food which is not as good quality, but people who get less than average income it is
the solution. Average income in Lithuanias capital Vilnius are approximately about 2500
Litas, people with such income search for higher quality food and are ready to spend from 15
to 25 Litas for lunch.


Sources of revenue

The main idea to sell our dishes is to sell them near business centers. There are 3 business
centers where in each work around 5000 people, this makes a total of around 15000 people
just in 3 business centers. There are around 20 smaller business centers each having around
500 people working in, which makes additional 10000 potential customers. Added these two
numbers together we get around 25000 of potential customers.

The first thing we should do is to decide how many mobile restaurants we need, and where
could we park them in lunchtime. The map shows how business centers are spread. All red
dots mark business center, bigger red dot marks a business center where works more than
2000 people.



As we can see from the map we need at least 3 mobile restaurants. With 3 mobile restaurants
we would be able to reach around 12000 customers, for them it would require not more than
5-minute walk to reach our restaurant.
Each mobile restaurant would have around 4000 potential customers only from business
centers.
Potential customers estimation

We are estimating that in the first year our real expectation could be to attract around 8 percent on average of potential customers. That would
make around 320 customers per day per one mobile restaurant. We are also planning to attract another 100 customers from the street per one
mobile restaurant. That would make around 420 customers per one mobile restaurant per working day.

We are planning that we could launch our first three mobile restaurants no earlier than in the beginning of April, even though the company
would start its activities early in January.


January Februar
y
March April May June July August September October December November
Potential customers 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000
Percent of customers that we
will attract
0% 0% 0% 8% 11% 10% 9% 7% 7% 12% 14% 15%
Customers that we will
attract per day
0 0 0 960 1320 1200 1080 840 840 1440 1680 1800
Additional customers per
day
0 0 0 240 360 330 270 210 210 390 450 480
Total customers per day 0 0 0 1200 1680 1530 1350 1050 1050 1830 2130 2280
Total customers per month 0 0 0 30000 42000 38250 33750 26250 26250 45750 53250 57000




First year revenue

As we will start our activities only in the beginning of April we will have a not full year of revenue, which means that for the first year our
company will have a big loss. For the second year we are planning on break-even strategy.
Customers/Month Price % of
people
January February March April May June July August September October November December Annual Revenue
Soup of the day +
salad + drink (juice,
coffee or tea)
17,00
Lt
10% 0 0 0 3000 4200 3825 3375 2625 2625 4575 5325 5700 35250 599 250,00
Lt
Soup of the day +
main dish + drink
(juice, coffee or tea)
19,00
Lt
30% 0 0 0 9000 12600 11475 10125 7875 7875 13725 15975 17100 105750 2 009 250,00
Lt
Soup of the day +
salad + drink (juice,
coffee or tea) +
dessert or snack
20,00
Lt
5% 0 0 0 1500 2100 1912,5 1687,5 1312,5 1312,5 2287,5 2662,5 2850 17625 352 500,00
Lt
Soup of the day +
main dish + drink
(juice, coffee or tea)
+ dessert or snack
22,00
Lt
8% 0 0 0 2400 3360 3060 2700 2100 2100 3660 4260 4560 28200 620 400,00
Lt
Soup of the day 7,00
Lt
7% 0 0 0 2100 2940 2677,5 2362,5 1837,5 1837,5 3202,5 3727,5 3990 24675 172 725,00
Lt
Salad 10,00
Lt
7% 0 0 0 2100 2940 2677,5 2362,5 1837,5 1837,5 3202,5 3727,5 3990 24675 246 750,00
Lt
Main dish 13,00
Lt
9% 0 0 0 2700 3780 3442,5 3037,5 2362,5 2362,5 4117,5 4792,5 5130 31725 412 425,00
Lt
Dessert 6,00
Lt
4% 0 0 0 1200 1680 1530 1350 1050 1050 1830 2130 2280 14100 84 600,00 Lt
Snack (bun or
croissant)
4,00
Lt
10% 0 0 0 3000 4200 3825 3375 2625 2625 4575 5325 5700 35250 141 000,00
Lt
Juice 4,00
Lt
3% 0 0 0 900 1260 1147,5 1012,5 787,5 787,5 1372,5 1597,5 1710 10575 42 300,00 Lt
Coffee or tea 5,00
Lt
7% 0 0 0 2100 2940 2677,5 2362,5 1837,5 1837,5 3202,5 3727,5 3990 24675 123 375,00
Lt
Total income 4 804 575,00
Lt

Second year revenue

Customers/Month Price % of
people
January February March April May June July August September October November December Annual Revenue
Soup of the day +
salad + drink (juice,
coffee or tea)
17,00
Lt
10%
5700 6000 6300 6350 7000 7200 7200 7100 7000 6500 6200 6000 78550
1 335 350,00
Lt
Soup of the day +
main dish + drink
(juice, coffee or tea)
19,00
Lt
30%
10700 11000 11300 11350 12000 12200 12200 12100 12000 11500 11200 11000 138550
2 632 450,00
Lt
Soup of the day +
salad + drink (juice,
coffee or tea) +
dessert or snack
20,00
Lt
5%
2900 3000 3200 3300 3400 3450 3500 3100 3200 2950 2900 2850 37750
755 000,00
Lt
Soup of the day +
main dish + drink
(juice, coffee or tea)
+ dessert or snack
22,00
Lt
8%
3200 3300 3500 3600 3700 3750 3800 3400 3500 3250 3200 3150 41350
909 700,00
Lt
Soup of the day 7,00
Lt
7%
3150 3250 3450 3550 3650 3700 3750 3350 3450 3200 3150 3100 40750
285 250,00
Lt
Salad 10,00
Lt
7%
3100 3200 3400 3500 3600 3650 3700 3300 3400 3150 3100 3050 40150
401 500,00
Lt
Main dish 13,00
Lt
9%
3800 3900 4100 4200 4300 4350 4400 4000 4100 3850 3800 3750 48550
631 150,00
Lt
Dessert 6,00
Lt
4%
3600 3700 3900 4000 4100 4150 4200 3800 3900 3650 3600 3550 46150
276 900,00
Lt
Snack (bun or
croissant)
4,00
Lt
10%
3700 3800 4000 4100 4200 4250 4300 3900 4000 3750 3700 3650 47350
189 400,00
Lt
Juice 4,00
Lt
3%
2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350
141 400,00
Lt
Coffee or tea 5,00
Lt
7%
2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350
176 750,00
Lt
Total income 7 734 850,00
Lt

From the table above we can see that the first the second year company will increase its revenue by 60% due to the full revenue year and more
customers that will get to know our restaurant.


Third year revenue

Customers/Month Price % of
people
January February March April May June July August September October November December Annual Revenue
Soup of the day +
salad + drink (juice,
coffee or tea)
17,00
Lt
10%
5700 6000 6300 6350 7000 7200 7200 7100 7000 6500 6200 6000 78550
1 335 350,00
Lt
Soup of the day +
main dish + drink
(juice, coffee or tea)
19,00
Lt
30%
10700 11000 11300 11350 12000 12200 12200 12100 12000 11500 11200 11000 138550
2 632 450,00
Lt
Soup of the day +
salad + drink (juice,
coffee or tea) +
dessert or snack
20,00
Lt
5%
2900 3000 3200 3300 3400 3450 3500 3100 3200 2950 2900 2850 37750
755 000,00
Lt
Soup of the day +
main dish + drink
(juice, coffee or tea)
+ dessert or snack
22,00
Lt
8%
3200 3300 3500 3600 3700 3750 3800 3400 3500 3250 3200 3150 41350
909 700,00
Lt
Soup of the day 7,00
Lt
7%
3150 3250 3450 3550 3650 3700 3750 3350 3450 3200 3150 3100 40750
285 250,00
Lt
Salad 10,00
Lt
7%
3100 3200 3400 3500 3600 3650 3700 3300 3400 3150 3100 3050 40150
401 500,00
Lt
Main dish 13,00
Lt
9%
3800 3900 4100 4200 4300 4350 4400 4000 4100 3850 3800 3750 48550
631 150,00
Lt
Dessert 6,00
Lt
4%
3600 3700 3900 4000 4100 4150 4200 3800 3900 3650 3600 3550 46150
276 900,00
Lt
Snack (bun or
croissant)
4,00
Lt
10%
3700 3800 4000 4100 4200 4250 4300 3900 4000 3750 3700 3650 47350
189 400,00
Lt
Juice 4,00
Lt
3%
2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350
141 400,00
Lt
Coffee or tea 5,00
Lt
7%
2700 2800 3000 3100 3200 3250 3300 2900 3000 2750 2700 2650 35350
176 750,00
Lt
Total income 9 281 820,00
Lt

As we can see from the third year sales forecast, we can see that the companys revenue will increase by another 20% comparing to the second
year. The reasons are similar to the second year increased revenues, more and more customers will get to know our services and start
appreciating our good quality and fast serving time food.

Income statement


2015 2016
Sales 4804575 7734850
Cost of Goods Sold 4600586 7458791
Gross Profits 203989 276059
Operating expenses
Marketing budget 20000 16000
Parking spaces rent 50000 43008
Salaries 117000 163000
Training 2000 0
Utilities expense 35200 42000
Depreciation
Kitchen equipment 3500 3500
Vehicles 9000 9000
IT equipments 500 500
Restaurant equipment 2500 2500
Total operating expenses 239700 279508
Operating income before tax -35711 -3449
Income tax (15%)
Net Income -35711 -3449

As we can see from the first year income statement the company will face a very big loss,
which is 35711 Lt, the reasons are due to the not full revenue year and that we will not be
able to attract the customers immediately. For the first year we need high marketing
expenses, also we need to train our new employees how to deal with all the equipment. We
should not forget that we will have to rent spaces for our mobile restaurants from city
municipality or private enterprises which will significantly increase our operating expenses.
For the second year, we can see a much different situation, as our company should more-less
reach a break-even point. The reasons are that our sales will increase significantly which will
also increase revenues. We are also planning to spend less money o marketing, because the
foundation for companys marketing will be built in the first year. For the second year we are
also planning les parking spaces expenses, the reasons are that we will get in touch with the
enterprises and municipality from whom we rent parking spaces and hopefully we will get
some discounts. We will also not have any training expenses as the employees will have right
skills from the second year.
According to approximate calculations, the restaurant will break even in the middle of March
of the third operational year. During this month the total costs and total revenues will be
equal.
Cash flow schedule

Projected Cash Flaw for the year I
January February March April May June July August September October November December
Beginning
cash
balance
3001500 271500 271500 271500 248060,766 244565,838 238900,815 230631,677 218022,347 205413,017 204088,185 207103,545
Cash
Inflow

Loan 2800000
Owners
money
201500
Sales 0 0 0 408900 572460 521347,5 460012,5 357787,5 357787,5 623572,5 725797,5 776910
Total
cash from
oper.
0 0 0 408900 572460 521347,5 460012,5 357787,5 357787,5 623572,5 725797,5 776910
Cash
outflows

Marketing
budget
12000 1000 1000 1000 1000 1000 1000 1000 1000
COGS 391539,23 548154,93 499212,52 440481,64 342596,83 342596,83 597097,33 694982,14 743924,54
Salaries 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333 17333,3333
Rent 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56 5555,56
Training 2000
Utilities
exp.
3911,11 3911,11 3911,11 3911,11 3911,11 3911,11 3911,11 3911,11 3911,11
Equipment 2730000
Total
cash
outflows
2730000 0 0 432339,234 575954,928 527012,523 468281,638 370396,83 370396,83 624897,332 722782,14 771724,545

Ending
cash
balance
271500 271500 271500 248060,766 244565,838 238900,815 230631,677 218022,347 205413,017 204088,185 207103,545 212289
Explanation of the Cash Flow Schedule

Cash inflow

It is expected that the beginning cash balance will be 3001500 Lt. Our Company will take a
loan in order to operate. The number is extremely high, because we will heavily spend money
on purchasing restaurant equipment and marketing activities. Also, the company needs this
cash for buying goods from suppliers.
Cash inflow will consist of money from investments and sales. Revenue will start to occur
only in April, when all our restaurants will start to operate. Thus, cash inflow of the first year
is calculated for 9 months (from April till December).

Cash outflows

Cash outflow will consist of different expenses. Firs expenses will be associated with
purchasing all the equipment we need, after that there will be we months of no expenses as
our company will wait for the arrival of all ordered equipment. Our company will use this
time to find parking places, suppliers of all the goods and partners. In March, registration of
the business costs will appear. In April, the store will pay for the ordered equipment. Many
expenses will start to occur on April. It is expected that we will start our operations in this
months. Thus, the company will start to pay rent and utilities expenses. The company will
start to pay for marketing activities. Also, the company will find employees for operating the
store. Thus, training costs will appear. Finally, the company will start to order food and non-
food goods. Thus, the company wont be empty on December 31. Overall, the store will have
ending cash balance of 212289 Lt at the end of December.










Balance sheet

Mobile restaurant
Balance Sheet
For the year ended December 31, 2015
Assets Liabilities and owner's equity

Current assets Current Liabilities
Cash 212289 Annual repayment of Loan 100000
Inventory Long-term Liabilities
Total current assets 212289 Loan 2800000
Fixed Assets Total Liabilities 2700000
Restaurant equipment 2730000 Owner's equity
Accumulated depreciation 15500 Total owner's equity 226789
Net fixed assets 2714500
Total Assets 2926789 Total Liability and equity 2926789

At the end of December the company will have cash of 212289 Lt (see cash flow, p. 23). The
company will not have any inventory, due to the holiday period. Thus, current assets will
constitute 212289 Lt. The Company will also have fixed assets, such as equipment. It will be
worth of 2714500 Lt after depreciation. Thus, the company will have total assets of 2926789
Lt. The store will have a long term liabilities of 2800000 Lt and current Liabilities of 100000
Lt. Retain earnings will be positive during the first year. They will be 226789 Lt. Total
liabilities and owners equity will be the same as total assets 2926789 Lt.










Start up cash requirements

Overall, the company will need 3001500 Lt for operations, before the business will become profitable. That money will be needed for operations
during 3 years. The largest part of that cash will be needed to purchase all the equipment and keep going until the store will become profitable.
The store will spend 2730000 Lt for buying equipment. 263200 Lt will be spent on all operations that will be done during the first year. These
include marketing expenses, paying parking rent, utilities, and salaries.

Costs

For the first year, the main costs are the restaurant and the equipment purchase. As mentioned above, for the first year we are planning to
purchase and create 3 mobile restaurants, this includes 3 vehicles, which will carry restaurant, kitchen equipment, solar battery system and the
restaurant base. Costs table is missing marketing cost, which we will calculate later in this business plan.

Fixed costs

Qty Price Cost
Truck 3 400000 1200000
Restaurant shelf 3 200000 600000
Solar panels 6 30000 180000
Kitchen equipment 3 200000 600000
Additional equipment and accessories 3 50000 150000
Total cost 2730000




Variable costs


January Februar
y
March April May June July August Septembe
r
October Novembe
r
Decembe
r
Food for meal
production
0 0 0 300000 42000
0
382500 33750
0
26250
0
262500 45750
0
532500 570000
Drinks 0 0 0 60000 84000 76500 67500 52500 52500 91500 106500 114000
Snacks 0 0 0 60000 84000 76500 67500 52500 52500 91500 106500 114000
Cups, napkins, knives,
forks, etc.
0 0 0 30000 42000 38250 33750 26250 26250 45750 53250 57000
Maintenance 0 0 0 12000 16800 15300 13500 10500 10500 18300 21300 22800
Total cost 0 0 0 462000 64680
0
589050 51975
0
40425
0
404250 70455
0
820050 877800

Total cost for the first year 5701500








Financing strategy

Our company will need 3001500 Lt in order to operate before the organization will become
profitable.

1st option

Mobile restaurant will apply to the organization INVEGA that will help to get EU support.
The store has a great social value, as well as good opportunities to prosper. Thus, there is a
possibility to convince the organization, as well as EU, to give a loan. INVEGA Company do
not give their own money, instead they help businesses to take a loan, by giving guaranties to
banks or EU that the business will be able to repay the loan. The company does not need to
apply to the INVEGA, they apply straight to the bank, and INVEGA accept or reject the
business plan. The maximum loan that the INVEGA can guarantee is 5000000 Lt. However,
our needs only 3001500Lt. Thus, the store will take a loan of 2800000 Lt for 28 years.

2nd option

If EU will not give a loan, then, the company will try to apply to the organization Verslo
angelai. We will try to get the maximum amount we need, which is 2800000. In exchange of
money the company will give 30% of its shares to the business angels, and 20% of its annual
profit. However, it is expected that the 1st option will work and the store will get EY support.

The company will get additional 201500 Lt from owners, who are Arnoldas and Vytautas;
each of us will give the same amount and will have the same part of companys shares.
Thus, these options will help to the store to get 3001500 Lt for operations. This money will
be spend on operations during 3 years, until the store will be able to generate profits.









GROWTH STRATEGY

Mobile restaurant idea is viable and has potential to grow through the years if the right
strategy would be chosen. Whole concept of mobile restaurant idea consists from two words
healthy and fast.
Nowadays people are concerned about their lifestyle and want to come back to the old,
healthy lifestyle. The pace of life is getting faster and faster through the years and anyhow
could stop it. The surveys coming from the west shows that fast food and high speed of life
decreases life expectancy by many years and makes people to desire for changes. This creates
a niche for green food restaurants where food is healthy and beneficial for your body and
soul. This new trend has created a demand for new profitable healthy food business, which is
gaining popularity all around the world, including the Lithuania too. The new green
restaurant chain in Lithuania TakeWay is expanding in enormous speed and has enormous
success among other restaurants.
Our future growth strategy is to collaborate with TakeWay, because they are growing very
fast and already has strong basis under their feet. Both restaurants Mobile restaurant and
TakeWay declare themselves as healthy and fast and could create a partnership with big
potential to become strong successful brand not only Lithuania, but also in the region of
Baltic countries, without changing their nature and prime strategies.
The benefit for us would be that we would have a strong back behind us, which would help
us to become more popular among youth, because TakeWay visitors are mostly from 15 to 23
years old, and benefit we bring in the collaboration is that our main customer auditorium is
more solid, because our target market consist of businessmen who are from 20 to 35 years
old. This cooperation will help to capitalize this trend 100 percent and become strongest
players in the market. After fulfilling these objectives we could create a chain of normal
TakeWay and Mobile TakeWay restaurants, which could sell franchise to other countries
such as Latvia and Estonia.
This growth strategy is valid and has big potential, because pizzas and other fast food are the
past and now it is time for new business.