Indian Restaurant Business Plan

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INDIAN RESTAURANT BUSINESS PLAN

1.0 Executive Summary

2.1 Company Ownership & Structure2.2 History2.3 Start up Funding2.4 Source of Funds2.5 Company Locations and Facilities

3.1 Service Description3.2 Competitive Landscape

4.1 Target Market: Population, Household Statistics Summary4.2 Target Market: Pusiness Statistics Summary4.3 Target Market: Age & Race Demographics4.4 Target Market: Income & Housing Demographics4.5 Target Market: Education Profile4.6 Target Market: Occupational Analysis of Population4.7 Industry Analysis: Household Food Expenditure Analysis

5.1 Competitive Edge5.2 Positioning5.3 Advertising Strategy5.4 Strategic Alliances5.5 Sales Strategy5.6 Sales Projections5.7 Milestones

6.1 Financials: Pro-forma Income & Expense Statement6.2 Financials: Pro-forma Balance Sheet

1.0 Executive Summary

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Welcome Restaurants USA Inc. a wholly owned subsidiary of Welcome Restaurants Private Limited (Indian Parent Company) is looking to expand its operations by buying a 50% stake in Indian Express Restaurant Inc., a New York corporation that currently owns and operates a full service Indian restaurant in New York City. After the investment of $1,000,000 is completed, Welcome Restaurants USA Inc. will look to expand the existing operations of Indian Express and also look to open up to 2 more restaurants offering a delectable Indian cuisine that blends foods from all parts of the Indian subcontinent. Given the excellent management team and experience of the principals these ventures are sure to be profitable and generate employment and revenues in the communities they serve.

2.1 Company Ownership & Structure

Welcome Restaurants USA Inc. (US subsidiary) is a New York State Corporation and is a wholly owned subsidiary of Welcome Restaurants Private Limited a corporation based in Bangalore, India with interests in hospitality. Welcome Restaurants USA Inc. will be making an investment of $1,000,000 to buy a 50% stake of Indian Express Restaurant Inc., a New York corporation.

2.2 History

Welcome Restaurants Private Limited is the Parent company of Welcome Restaurants USA Inc. Over the years Welcome Restaurants Private Limited has developed an expertise in the hospitality and restaurant business and is now looking to expand overseas. With this strategic focus a United States subsidiary called Welcome Restaurants USA Inc. was established in August of 2007. The purpose of the subsidiary is to grow the Welcome brand internationally by making strategic acquisitions and growing organically by opening new restaurants in the United States.

2.3 Start up Funding

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Welcome Restaurants USA Inc. will begin its expansion into the United States market by making a strategic acquisition and buying a 50% stake in the operations of Indian Express Restaurant Inc. – a New York corporation. The funds will be used by Welcome Restaurants USA Inc. to expand the existing operations of Indian Express Restaurant Inc. and also to start two new restaurants in the New York metro area.

2.4 Source of Funds

Welcome Restaurants USA Inc. will be making the investment of $1,000,000 from its own cash reserves that are derived from the hospitality interests of its parent company Welcome Restaurants Private Limited in Mumbai, India.

2.5 Company Locations and Facilities

Welcome Restaurants USA Inc. will be purchasing a 50% stake in Indian Express Restaurant Inc. located at 147 West, 16th Street between Park and Lexington Avenues, New York, NY 10016.

3.1 Service Description

Welcome Restaurants USA Inc. through its investment in Indian Express Restaurant Inc. will be able to offer its clientele a unique blend of Indian cooking – different from the typical North or South Indian fare dished out by most restaurants. Using the concept of fusion cooking, Welcome will be able to present unique and eclectic assortments of appetizers, entrees and deserts that are rare to find in a typical Indian restaurant.

3.2 Competitive Landscape

With its incredibly diverse population New York City is able to support many restaurants serving up different varieties of foods. The Indian full service restaurant is no different and New York City currently boasts around 200 restaurants that serve some kind of India fare. However of the 200 odd full service Indian restaurants the vast majority of them focus on providing the traditional and dependable delicacies of North Indian cooking; around 20% of the all Indian restaurants offer South India delicacies and very few of them are true competitors to Welcomes Hotels USA Inc. Given the unique blend of foods from the entire sub-continent Welcome Restaurants USA Inc. will be able to offer improved derivatives of classic Indian cooking.

4.1 Target Market: Population, Household Statistics Summary

New York City is widely regarded as the most culturally diverse city in the United States with a population that boasts residents from all over the world. Also New York City has a much higher per capital income and median household income when compared to the average for the country.

4.1 Target Market: Population, Household Statistics Summary (cont'd)

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Population & Household & Business statistics summary for New York, NY

Item New York NY United States

Resident total population estimate 2007 1,620,867 299,398,484

Resident population 2000 1,537,195 281,421,906



% Change in population (1980 to 2007) 13.48% 32.16%

Median Age 37.5 37.6

Civilian labor force 2007 916,053 151,428,000



Change in labor force 1990 - 2007 17.39% 20.33%

Households 772,957 108,954,329

Household Size 1.98 2.6

Median Household Income $55,208 $44,334

Income per Capita $110,292 $34,471

Persons below poverty line 18.06% 12.70%

Male Population 47.73% 48.65%

Female Population 52.27% 51.35%

Married Population 39.34% 58.89%

Single Population 60.66% 41.11%

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4.2 Target Market: Business Statistics Summary

Minority owned businesses are well represented in New York City as we can see with Black, Hispanic and women owned firms running better than the national averages. Having a diverse population is key to the success of Welcome Restaurants USA Inc. since Indian food is most appealing to clients who prefer diversity in their food habits.

Retail sales per capita – another measure of the spending power of local New York City residents is $16,178 a good 57% above the national average retail sales per capita of $10,615. This again bodes well for us in the restaurant business.

Business statistics summary for New York, NY

Item New York, NY United States

Black-owned firms, percent 12.40% 5.2%

Asian-owned firms, percent 14.20% 4.8%

Hispanic-owned firms 16.40% 6.8%

Women-owned firms 31.80% 28.2%

Manufacturers shipments ($1000) $10,950,335 $3,916,136,712

Wholesale trade sales ($1000) $140,669,286 $4,634,755,112

Retail sales ($1000) $25,904,575 $3,056,421,997

Retail sales per capita $16,718 $10,615

Accommodation and foodservices sales ($1000) $10,714,578 $449,498,718

Building permits 8790 1,838,903

Current Unemployment Rate 4.40% 5.50%

Sales Taxes 8.63% 6.00%

4.3 Target Market: Age & Race Demographics

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The Age chart below highlights the fact that New York City has a good share of its population between the ages of 18 and 65 – a good 64% - higher than the national average of 61%. We believe that is an important element of success in the restaurant business since this is the age group that is most likely to have disposable income and eat away from their homes.

The race graph below simply reiterates the earlier mentioned diversity that New York City has come to be known for. With 24% of its population claiming Hispanic origin and 11% and 18% claiming Asian and Black heritage, NYC offers restaurants serving Indian foods like ours an excellent client base.

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4.4 Target Market: Income & Housing Demographics

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The Income distribution of households in New York City shows a substantial amount of households earning between $35k and $100k – what is very important however is to understand that in New York City the composition of households is very different from the rest of the country. For example only 39% of the population in New York City is married versus 52% for the national average. A lot more single people means a lot less cooking at home!

Estimated Households by Income class for New York, NY

Income Category New York, NY United States

Less than 15k 18.12% 13.64%

Between 15k and 25k 8.97% 11.21%

Between 25k and 35k 8.27% 11.46%

Between 35k and 50k 11.73% 15.84%

Between 50k and 75k 14.69% 19.28%

Between 75k and 100k 9.64% 11.53%

Between 100k and 150k 11.74% 10.70%

Between 150k and 250k 8.61% 4.43%

Between 250k and 500k 4.46% 1.31%

Greater than 500k 3.78% 0.61%

When the value of owner occupied housing metrics is compared we can see that New York City is way ahead of the rest of the country with most of its housing stock valued higher than $300k. It has always been expensive to purchase a home in New York City due to the relatively higher values of property and we believe that this strongly points to the economic strength and vitality in the local market place – a very important element for us in the restaurant business.

New York, NY - Owner occupied housing units analysis

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Value New York, NY United States

Less Than $20k 1.76% 3.01%

$20k to $39k 1.64% 4.37%

$40k to $59k 0.68% 5.74%

$60k to $79k 0.33% 7.07%

$80k to $99k 0.56% 8.41%

$100k to $149k 2.42% 19.74%

$150k to $199k 4.79% 14.06%

$200k to $299k 10.50% 16.59%

$300k to $399k 9.86% 8.21%

$400k to $499k 9.27% 4.53%

$500k to $749k 15.85% 4.75%

$ 1mil or more 30.96% 1.86%

4.5 Target Market: Education Profile

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With more 4 year college students and graduates than the national average, New York City easily stands out as having a population of relatively better educated citizens. For restaurants serving ethnic cuisine like Indian foods this is a very important element in the marketplace. We strongly believe that fusion Indian cooking is well received by clients with relatively higher education and economic backgrounds.

New York, NY - Education profile of population

Education New York, NY United States

School Expenditure $7,461 $6,058

Pupil / Teacher Ratio 20 15.9

Students per Librarian 1441 907

Students per Counselor 597 546

2 yr College Graduates 3.45% 8.22%

4 yr College Graduates 25.48% 15.16%

Graduate Degrees 23.06% 7.16%

High School Graduates 77.69% 79.62%

4.6 Target Market: Occupational Analysis of Population

A quick look at the occupations of the New York City residents clearly shows a relatively high proportion of the workforce involved in Management and Professional occupations. Since the office crowd is a very important element of our revenues and brings in almost 40% of our total income, we think that this demographic pattern works very well in our favor.

New York, NY - Occupation analysis of population

Occupation New York, NY United States

Management, Business & Financial Operations 21.44% 13.61%

Professional and Related Occupations 33.76% 20.24%

Service 12.73% 14.75%

Sales & Office 23.54% 26.74%

Farming, Fishing & Forestry 0.03% 0.74%

Construction, Extraction & Maintenance 2.35% 9.48%

Production & Transportation 6.16% 14.44%

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4.7 Industry Analysis: Household Food Expenditure Analysis

In the following table we have analyzed the major trends that affect our industry and that is the amount spent by households. While the larger survey deals with monies spent by a household on every item, we have decided to focus on the part that matters the most to us and that of course the amount of money spent by households nationally on foods away from home.

In 1997 we find that out of the total 104 million households in the nation the average annual expenditure was approximately $33k per household. Of this $2,876 or roughly 8.50% of the total household expenditure was spent on foods consumed at home. Another $1,823 or roughly 5.40% was spent on foods away from home. Also, $ 309 or roughly 0.90% was spent on alcoholic beverages.

When we look at 2007 we find that out of the 118 million households in the nation, the average annual expenditure is $48,398. Of this $ 3,417 or 7.06% of the total expenditure was spent on food consumed at home. Another $2,694 or roughly 5.60% was spent on food away from home. Alcoholic beverages consumption remained roughly the same at 1% or $497 in 2007.

The most important trend that matters to us is of course the expenditure on foods away from home. It is significant to note that while this expense of 5.60% of total expenditure does not mean that all the money is spent on full service restaurants let alone fine Italian dining, it does however show that the consumers preferences nationally towards eating out have not changed significantly between 1996 and 2007.

Clearly, as long as this trend of consumption of food away from home continues, all food purveyors including fast food shops, limited service restaurants and full service restaurants

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like us will do well. It is important to note that the 10 year period covered above does not cover a protracted recession but does include the slowdown of 2001 – 2002 during which the spending habits of the national population did not change towards outside food consumption.

Average Annual Household Food Expenditures: 1997 to 2007

Year

No. of households

(000)Avg. Annual Expenditure

Expenditure: food at home

Expenditure: food away from

home Total Expenditure on foodExpenditure on Alcoholic

beverages

1997 104,212 $33,797 $2,876 $1,823 $4,699 $309

1998 105,576 $34,819 $2,880 $1,921 $4,801 $309

1999 107,182 $35,535 $2,780 $2,030 $4,810 $309

2000 108,465 $36,995 $2,915 $2,116 $5,031 $318

2001 109,367 $38,045 $3,021 $2,137 $5,158 $372

2002 110,339 $39,518 $3,086 $2,235 $5,321 $349

2003 112,108 $40,677 $3,099 $2,276 $5,375 $376

2004 115,356 $40,817 $3,129 $2,211 $5,340 $391

2005 116,282 $43,395 $3,347 $2,434 $5,781 $459

2006 117,356 $46,409 $3,297 $2,634 $5,931 $426

2007 118,843 $48,398 $3,417 $2,694 $6,111 $497

Food away from home as a % of Total Household Expenditure in 1997 5.39%

Food away from home as a % of Total Household Expenditure in 2007 5.57%

5.1 Competitive Edge

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We believe that in today’s competitive full service restaurant business there are three things that are keys to success:

Location and Leases Excellent and diverse menu priced reasonably Ambience and customer service

We believe that at Welcome Restaurants USA we have all three elements down pat! Our choice of locations is the city of New York. A business friendly local government coupled with a highly educated, well heeled population is the perfect venue for fine Indian dining offered by Welcome Restaurants USA and Indian Express Restaurants.

Our diverse menu selection during both lunch and dinner hours has been developed after years of experience in the industry by our chefs. Care has been taken to pick crowd pleasers and house specials that are not easy to find in Indian dining and the fare is priced very reasonably in line with local competitors.

5.2 Positioning

We are positioning ourselves to market to the middle to upper middle class clientele of well heeled working professionals who live and work in New York City. Our typical customer is well educated having a graduate degree, working and/or living in New York city, looking for a tasteful and different Indian dining experience than what is offered by the local deli.

5.3 Advertising Strategy

Welcome Restaurants USA Inc. will advertise using all possible forms of media including print, radio and television.

Our media advertising will be focused on publications serving the Indian community “India Abroad” and “Desi Talk”.

Our online advertising will be focused on websites like Citysearch.com, yelp.com, restaurant.com and seamless web.

Local promotions will also include sponsorship of local charity events and participating in food drives and other local causes.

5.4 Strategic Alliances

We currently have an alliance with Seamless web that allows clients to place their orders via the web. We have been able to mind a steady base of customers from local firms like Credit Suisse, JP Morgan Chase, Metlife and other non-institutional clients as well.

5.5 Sales Strategy

There are two ways to approach sales – one is go with volume and this is the typical modus operandi of the fast food industry; many full service restaurants also use this approach. The other is go with quality service at market rates but focus on building a richer customer dining experience so that we can cultivate a permanent relationship with the customer. We favor the later approach at Welcome Restaurants USA Inc.

5.6 Sales Projections

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We believe that it is very important to be realistic in the projection of sales in the planning process and have decided to look at three possible market scenarios in our sales projections.

Slow market: As the words imply, this would indicate a weak market for the full service restaurant business as was the case after the attack of September 11, 2001 where the full service restaurant business suffered its worse days in recent memory. This experience is also possible during a recession where folks decide to be cautious with their disposable income.

Good market: This would be a regular and normal environment during which healthy business activity can be experienced by us in the full service restaurant business.

Great market: This would suggest an excellent operating environment with the consumer feeling very confident and spending on food away from home a lot more than normal. The dot com era of the late nineties was such an operating environment where full service restaurants did extremely well.

5.6 Sales Projections (cont'd)

Also indicated in our projections are the seasonal adjustments that are normal in our business with January to March being tepid, business picking up in June and July, and of course the best time for us being the holiday months of November and December.

We have also indicated projections for 1, 2 and 3 restaurants. Our first initiative is to the expand the operations of Indian Express Restaurant Inc. Once we have consolidated our investments and operations there we intend to expand this investment into one or two new operations.

Welcome Restaurants USA Inc.

Sales Projections: 2009

SLOW MARKET GOOD MARKET GREAT MARKET

NO. OF RESTAURANTS NO. OF RESTAURANTS NO. OF RESTAURANTS

1 2 3 1 2 3 1 2 3

Jan $75,000 $150,000 $225,000 $93,750 $187,500 $281,250 $107,813 $215,625 $323,438

Feb $90,000 $180,000 $270,000 $112,500 $225,000 $337,500 $129,375 $258,750 $388,125

Mar $105,000 $210,000 $315,000 $131,250 $262,500 $393,750 $150,938 $301,875 $452,813

Q1 $270,000 $540,000 $810,000 $337,500 $675,000 $1,012,500 $388,125 $776,250 $1,164,375

Apr $105,000 $210,000 $315,000 $131,250 $262,500 $393,750 $150,938 $301,875 $452,813

May $120,000 $240,000 $360,000 $150,000 $300,000 $450,000 $172,500 $345,000 $517,500

Jun $150,000 $300,000 $450,000 $187,500 $375,000 $562,500 $215,625 $431,250 $646,875

Q2 $375,000 $750,000 $1,125,000 $468,750 $937,500 $1,406,250 $539,063 $1,078,125 $1,617,188

Jul $135,000 $270,000 $405,000 $168,750 $337,500 $506,250 $194,063 $388,125 $582,188

Aug $105,000 $210,000 $315,000 $131,250 $262,500 $393,750 $150,938 $301,875 $452,813

Sep $135,000 $270,000 $405,000 $168,750 $337,500 $506,250 $194,063 $388,125 $582,188

Q3 $375,000 $750,000 $1,125,000 $468,750 $937,500 $1,406,250 $539,063 $1,078,125 $1,617,188

Oct $135,000 $270,000 $405,000 $168,750 $337,500 $506,250 $194,063 $388,125 $582,188

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Nov $150,000 $300,000 $450,000 $187,500 $375,000 $562,500 $215,625 $431,250 $646,875

Dec $195,000 $390,000 $585,000 $243,750 $487,500 $731,250 $280,313 $560,625 $840,938

Q4 $480,000 $960,000 $1,440,000 $600,000 $1,200,000 $1,800,000 $690,000 $1,380,000 $2,070,000

Tot $1,500,000 $3,000,000 $4,500,000 $1,875,000 $3,750,000 $5,625,000 $2,156,250 $4,312,500 $6,468,750






1 2 3 1 2 3 1 2 3

Jan 78,750 $157,500 $236,250 98,438 $196,875 $295,313 113,203 $226,406 $339,609

Feb 94,500 $189,000 $283,500 118,125 $236,250 $354,375 135,844 $271,688 $407,531

Mar 110,250 $220,500 $330,750 137,813 $275,625 $413,438 158,484 $316,969 $475,453

Q1 283,500 $567,000 $850,500 354,375 $708,750 $1,063,125 407,531 $815,063 $1,222,594

Apr 110,250 $220,500 $330,750 137,813 $275,625 $413,438 158,484 $316,969 $475,453

May 126,000 $252,000 $378,000 157,500 $315,000 $472,500 181,125 $362,250 $543,375

Jun 157,500 $315,000 $472,500 196,875 $393,750 $590,625 226,406 $452,813 $679,219

Q2 393,750 $787,500 $1,181,250 492,188 $984,375 $1,476,563 566,016 $1,132,031 $1,698,047

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Jul 141,750 $283,500 $425,250 177,188 $354,375 $531,563 203,766 $407,531 $611,297

Aug 110,250 $220,500 $330,750 137,813 $275,625 $413,438 158,484 $316,969 $475,453

Sep 141,750 $283,500 $425,250 177,188 $354,375 $531,563 203,766 $407,531 $611,297

Q3 393,750 $787,500 $1,181,250 492,188 $984,375 $1,476,563 566,016 $1,132,031 $1,698,047

Oct 141,750 $283,500 $425,250 177,188 $354,375 $531,563 203,766 $407,531 $611,297

Nov 157,500 $315,000 $472,500 196,875 $393,750 $590,625 226,406 $452,813 $679,219

Dec 204,750 $409,500 $614,250 255,938 $511,875 $767,813 294,328 $588,656 $882,984

Q4 504,000 $1,008,000 $1,512,000 630,000 $1,260,000 $1,890,000 724,500 $1,449,000 $2,173,500

Total 1,575,000 $3,150,000 $4,725,000 1,968,750 $3,937,500 $5,906,250 2,264,063 $4,528,125 $6,792,188






1 2 3 1 2 3 1 2 3

Jan $82,688 $165,375 $248,063 $103,359 $206,719 $310,078 $118,863 $237,727 $356,590

Feb $99,225 $198,450 $297,675 $124,031 $248,063 $372,094 $142,636 $285,272 $427,908

Mar $115,763 $231,525 $347,288 $144,703 $289,406 $434,109 $166,409 $332,817 $499,226

Q1 $297,675 $595,350 $893,025 $372,094 $744,188 $1,116,281 $427,908 $855,816 $1,283,723

Apr $115,763 $231,525 $347,288 $144,703 $289,406 $434,109 $166,409 $332,817 $499,226

May $132,300 $264,600 $396,900 $165,375 $330,750 $496,125 $190,181 $380,363 $570,544

Jun $165,375 $330,750 $496,125 $206,719 $413,438 $620,156 $237,727 $475,453 $713,180

Q2 $413,438 $826,875 $1,240,313 $516,797 $1,033,594 $1,550,391 $594,316 $1,188,633 $1,782,949

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Jul $148,838 $297,675 $446,513 $186,047 $372,094 $558,141 $213,954 $427,908 $641,862

Aug $115,763 $231,525 $347,288 $144,703 $289,406 $434,109 $166,409 $332,817 $499,226

Sep $148,838 $297,675 $446,513 $186,047 $372,094 $558,141 $213,954 $427,908 $641,862

Q3 $413,438 $826,875 $1,240,313 $516,797 $1,033,594 $1,550,391 $594,316 $1,188,633 $1,782,949

Oct $148,838 $297,675 $446,513 $186,047 $372,094 $558,141 $213,954 $427,908 $641,862

Nov $165,375 $330,750 $496,125 $206,719 $413,438 $620,156 $237,727 $475,453 $713,180

Dec $214,988 $429,975 $644,963 $268,734 $537,469 $806,203 $309,045 $618,089 $927,134

Q4 $529,200 $1,058,400 $1,587,600 $661,500 $1,323,000 $1,984,500 $760,725 $1,521,450 $2,282,175

Total 1,653,750 $3,307,500 $4,961,250 2,067,188 $4,134,375 $6,201,563 2,377,266 $4,754,531 $7,131,797

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5.7 Milestones

Presented here are the key milestones in our business plan for Mayflower Restaurants USA Inc. Upon receiving the regulatory okay for Mr. Patel from the USCIS we will begin the process making our investment into Indian Express Restaurants Inc. and also the expansion of the business interests into other restaurants as described earlier.

WELCOME RESTAURANTS USA INC. - PROJECT TIMELINE

Week of 1 2 3 4 5 6 7 8 9

10/6/2008

10/13/2008

10/20/2008

10/27/2008

11/3/2008

11/10/2008

11/17/2008

11/24/2008

12/1/2008

12/8/2008

12/15/2008

12/22/2008

12/29/2008

1/5/2009

1/12/2009

1/19/2009

1/26/2009

2/2/2009

2/9/2009

2/16/2009

2/23/2009

3/2/2009

3/9/2009

3/16/2009

3/23/2009

3/30/2009

4/6/2009

4/13/2009

4/20/2009

4/27/2009

5/4/2009

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1 2 3 4 5 6 7 8 9

No. Name of Project Starting Week Ending Week Responsible Party

1 Filing of L-1 Petition 10/6/2008 10/13/2008 Attorney

2 Processing & Approval of L-1 10/20/2008 12/29/2008USCIS

3 Indian Express Investment 1/5/2009 1/5/2009 Welcome Hotels USA Inc.

4 Expansion of existing business 1/12/2009 5/4/2009 Satish Patel

5 New Site Research 4/6/2009 ongoing Satish Patel

6 Market Research 4/6/2009 ongoing Satish Patel

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6.1 Financials: Pro-forma Income & Expense Statement

As indicated in our earlier discussions, we expect that with the opening of other restaurants the total income for our combined new operations will be substantial more than the current income for the Indian Express Restaurant that will be controlled by Welcome Restaurants USA Inc. Our pro-forma financials have been put together with a very conservative growth with only one of restaurant to give investors and banks a better idea of the profitability in an average environment with a steady growth rate consistent with our peers in the restaurant business. We would like to point out however that we anticipate a significantly better sales picture as indicated in our sales projections.


Proforma Income & Expense Statement

2009 2010 2011

SALES $1,875,000 $1,968,750 $2,067,188

Cost of Goods Sold $656,250 $669,375 $682,172

Gross Profit $1,218,750 $1,299,375 $1,385,016

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Gross Margin % 65.00% 66.00% 67.00%

OPERATING EXPENSES

Accounting & Legal Fees $9,375 $9,656 $9,946

Advertising $18,750 $19,688 $20,672

Auto Expenses $5,438 $5,546 $5,657

Bad Debts $18,750 $18,938 $19,127

Bank charges $5,250 $5,303 $5,356

Credit card processing $37,500 $38,250 $39,015

Catering & Banquet Supplies $4,688 $4,781 $4,877

Cleaning / Janitorial Services $5,625 $5,794 $5,968

Depreciation $34,700 $34,700 $34,700

Charitable Donations $5,000 $5,000 $5,000

Employer Taxes $33,240 $34,902 $36,647

Entertainment $5,625 $5,738 $5,852

Extermination $4,875 $5,021 $5,172

Flowers & Decoration $4,688 $4,828 $4,973

Gifts $14,063 $14,063 $14,063

Gross Wages $349,891 $367,385 $385,754

Insurance $18,750 $19,313 $19,892

Kitchen Utensils $4,688 $4,828 $4,973

Linen & Laundry $5,250 $5,408 $5,570

Miscelleaneous Expenses $5,063 $5,164 $5,267

Musician / Music $5,625 $5,738 $5,852

Paper & Printing Services $6,563 $6,694 $6,828

Rent $210,000 $220,500 $231,525

Office Expenses $4,688 $4,922 $5,168

Office Supplies $10,000 $10,200 $10,404

Subscriptions, Licenses & Fees $4,125 $4,331 $4,548

Security & Computer maintenance $2,813 $2,869 $2,926

Tableware / Cutlery $5,625 $5,794 $5,968

Telephone $3,750 $3,788 $3,825

Training $15,000 $15,750 $16,538

Utilities $4,500 $4,725 $4,961

Web Design $2,813 $2,953 $3,101

TOTAL OPERATING EXPENSES $866,705 $902,566 $940,122

Profit before Interest & Taxes $352,045 $396,809 $444,893

Interest Expenses $14,134 $12,419 $10,563

Provisional Taxes $123,216 $138,883 $155,713

NET INCOME $214,696 $245,507 $278,618

% of Sales 11.45% 12.47% 13.48%

6.2 Financials: Pro-forma Balance Sheet


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Proforma Balance Sheet

A S S E T S

2009 2010 2011

CURRENT ASSETS

Cash $1,011,803 $1,269,594 $1,558,637

Accounts Receivable $4,688 $4,922 $5,168

Inventory $20,000 $20,000 $20,000

TOTAL CURRENT ASSETS $1,036,491 $1,294,516 $1,583,805

FIXED ASSETS

Furniture, Fixtures & Equipment $347,000 $347,000 $347,000

Accumulated Depreciation -$34,700 -$69,400 -$104,100

Security Deposit $35,000 $35,000 $35,000

TOTAL FIXED ASSETS $347,300 $312,600 $277,900

TOTAL ASSETS $1,383,791 $1,607,116 $1,861,705

L I A B I L I T I E S & C A P I T A L

2009 2009 2010

CURRENT LIABILITIES

Accounts Payable $3,750 $3,938 $4,134

Taxes Payable $0 $0 $0

Other Current Liabilities $0 $0 $0

TOTAL CURRENT LIABILITIES $3,750 $3,938 $4,134

LONG TERM LIABILITIES

Long-term loans outstanding $165,345 $142,976 $118,750

TOTAL LONG-TERM LIABILITIES $165,345 $142,976 $118,750

CAPITAL

Common Stock $1,000,000 $1,000,000 $1,000,000

Retained Earnings $214,696 $460,202 $738,821

TOTAL CAPITAL $1,214,696 $1,460,202 $1,738,821

TOTAL LIABILITIES & CAPITAL $1,383,791 $1,607,116 $1,861,705

Documents

Indian Restaurant Business Plan